I have included the project description and instructions for completing the project as well as examples of the matrix tables and
I have included the project description and instructions for completing the project as well as examples of the matrix tables and entire project. I would like to focus this project on a product in the cosmetics industry(mascara, lipstick, eyeshadow, etc.).
PROJECT DESCRIPTION
The project is intended to give you first-hand experience in objectively selecting an attractive country market and developing an export plan for your chosen product. Assume that you are a US based (production in the US) company looking to export your product profitably to a foreign country.
Part I – Country Screening [4-6 single spaced pages] {15%}
1). Choose a specific product item from a product category/group (examples below) to focus your efforts! (If you work a company that produces in the US, you can use its product)
Cameras Machine Tools
Construction Material Medical Equipment
Cell Phones Mountain Bikes
Cosmetics & Toiletries Running Shoes
Diapers Snack Foods
Electronics
Exercise Equipment Surfboards
Clothing Tractors/Farm Equipment
Jeans Telephone Equipment
Lingerie Wine Coolers
*****NO BEER, LIQUIDS, COMMODITIES, or SERVICES please******
2) Select countries to screen: You can screen countries in two ways – all countries from one geographical region or about two countries from each region. A range of 6-10 countries should be screened.
Western Europe Middle East and Africa
Asia/Australia/New Zealand Russia, Eastern Europe
Latin America North & Central America, Caribbean
3) Determine indicators to use*: Select indicators that are indicative of a country’s attractiveness for your product (i.e., key success factors). Richer information can be garnered from ‘growth/trend’ or averaging multi-year data as opposed to one single data year. You will need to be selective in your choice of indicators (approx. 8-10 indicators should be adequate). Be sure to include both macro (country specific) and micro (product specific) variables, equally split. Do not forget that the indicators are intended to provide the basis for selecting the country to export. Select indicators to evaluate the attractiveness of a country (macro indicators) i.e. inflation rate, currency trend, growth rates, as well as indicators of market potential for the specific product (micro indicators). Do not forget that these should include indicators relating to factors which constitute: barriers to entry, e.g., tariffs, expropriation risks, product regulation, exchange controls; as well as infrastructure requirements, e.g., media, banks, distribution channels, which affect the feasibility and profitability of exploiting market potential. The specific indicators will depend on the product you have selected. Hint: think of indicators related to specific product market e.g., product usage data, product sales, sales of competing or substitute products. For example, climate-average low temperature would be a key success factor if selling fur coats, or if selling mass-market items (e.g., pencil) use population growth rates.
*DO NOT USE absolute “ GNP/GDP”, “POPULATION”, “IMPORT/EXPORT” data! However, growth/trend rates of all 3 can be used! |
4) Collect your data: You should then collect data on the indicators to evaluate potential marketing opportunities throughout the world. Data on these indicators can be obtained from sources such as the http://data.un.org; http://fita.org; http://www.alibaba.com; Business International, International Marketing Data and Statistics, Euromonitor, Africa Guide, Asia Yearbook, Demographic Yearbook, Europa Yearbook, Encyclopedia of the Third World, European Marketing Data and Statistics, Handbook of International Data on Women, Predicasts, among others.
5) Write up screening report! (4-6 pages single space) evaluating these opportunities. Three pages will be your matrix tables (see examples in ‘syllabus’ toolbox!)
The following format/subheadings (in bold) MUST be used (be brief);
i. Introduction (why product, country screening method, where manufactured
in US, country chosen, etc.)
ii. Indicators; For each numbered indicator, identify the indicator’s name &
type (e.g., macro or micro), year of data, explanation/description, how measured (units), why chosen, interpretive direction (e.g., higher is better) and source (full citation).
iii. Raw data matrix (country by indicators) 1 page
iii. Scored data matrix (country by indicators) [indicate scales for scores and
weights] 1 page
v. Decision matrix (country by indicator [ ∑wt. x score]). 1 page
Based on this analysis, select a country to focus your efforts (show decision matrix).
,
Katie Griggs February 15, 2015 Project Part 1: Global Screening and Country Selection Dr. Okoroafo MKTG6400-901
I. Introduction The product, Pampers disposable diapers, was chosen because demand for diapers
should remain steady for many years to come. Although some Eastern cultures are attempting to potty train from birth, most cultures wait to begin training until children are anywhere from a year and a half to four years old. According to newlddscenter.com, a typical baby will go through approximately 2,750 diapers per year.
Pampers are produced in two diaper plants in Pennsylvania and Missouri. The countries screened include Italy, Spain, Germany, Netherlands, France, and the
United Kingdom. Two of the most important factors of the screening are the number of births in each country and baby product sales growth. As the number of babies available for diapers increases, so does the opportunity for sales. Other factors considered include inflation rates, population growth rates, contraceptive use, and fertility rates. The data used were found using searches on various sites provided on the syllabus, such as FITA, World Bank Data, UN Data, and Google.
The country selected after conducting the screening is Germany.
II.
.
Indicators Annual Diaper Sales; Micro
a. Year of Data: 2014 b. Explanation: Total diapers (nappies) sold in each country for one year ending June
29, 2014. c. How Measured: Million Euros d. Why Chosen: To illustrate current market sales e. Interpretive Direction: The higher, the better. Current sales show that there is an
existing market. Although competitive, it shows a need for the product. f. Source: All information from: "Statistics about 'baby, Product, Sales, Value' I
Statista Search." Statista. Web. 12 Feb. 2015. <http://www.statista.com/search!?q=baby product sales value>.
. Number of Major Advertising Agencies, Micro a. Year of Data: 2015 b. Explanation: Total number of major advertising agencies located in each country c. How Measured: Units d. Why Chosen: To examine marketing options available e. Interpretive Direction: The higher, the better. If more advertising agencies are
available within the country, there are more opportunities to promote the product. f. Source: All information from: Global Trade Portal. (n.d.). Retrieved from The
Federation of International Trade Associations website on February 12, 2015: fita.org
3. Fertility Rate, Mirco
qqqqqqqqqqq
a. Year of Data: 2011 b. Explanation: Average number of births per woman c. How Measured: Units d. Why Chosen: Allows for a detailed look at how many children each woman will
give birth to e. Interpretive Direction: The higher, the better. The higher the number of births per
woman, the more babies available to wear diapers. f. Source: Detailed database search. (n.d.). Retrieved from UN Data on February 12,
2015:http://data.un.org/Data.aspx?d=SOWC&f=inlD%3a127
. Contraceptive Use, Micro a. Year of Data: 2011 b. Explanation: Women utilizing birth control methods c. How Measured: Percentage
d. Why Chosen: To show how many women use common birth control methods e. Interpretive Direction: The lower, the better. If women are not utilizing birth
control, they are more likely to become pregnant. Prevalent contraceptive use should negatively impact the number of babies born.
f. Source: Detailed database search. (n.d.). Retrieved from UN Data on February 12, 2015:http://data.un.org/DocumentData.aspx?id=356
, Annual a.
b.
C.
d.
e.
f.
Number of Births, Micro Year of Data: 2011 Explanation: Total number of births in a country per year How Measured: Units Why Chosen: To examine the number of newborn babies in each country per year Interpretive Direction: The higher, the better. As more babies are born, more diapers are needed. Source: Detailed database search. (n.d.). Retrieved from UN Data on February 12, 2015:http://data.un.org/DocumentData.aspx?id–316
. Annual a.
b.
C.
d.
e°
f.
Sanitary Articles Imported, Micro Year of Data: 2013 Explanation: Total pounds of sanitary items imported into each country each year How Measured: Kilograms Why Chosen: To determine the quantity of imports each country already relies on for this product segment Interpretive Direction: The higher, the better. As each country relies on imports of sanitary supplies, it confirms a need for the product segment. Source: Detailed database search. (n.d.). Retrieved from UN Data on February 12, 2015: http://data.un.org/Data.aspx?q=diapers&d=ComTrade&f–11 Code%3 a49%3bcmdC ode%3a481840
° Baby Product Sales Growth, Micro a. Year of Data: 2014 b. Explanation: Sales growth or decline of baby products
c. How Measured: Percentage d. Why Chosen: To indicate the direction of the baby product market per country e. Interpretive Direction: The higher, the better. As product sales increase, it shows a
need for this product category f. Source: "Baby Products Sales Growth in Europe 2014 1 Statistic." Statista. 29 June
2014. Web. 12 Feb. 2015. <http://www.statista.com/statistics/332541/sales-growth- baby-products-europe/>.
. Taxes a.
b.
C.
d.
e.
f.
on Imports, Micro Year of Data: 2015 Explanation: Taxes imposed on imports for each country How Measured: Percentage Why Chosen: To determine additional charges passed along to the customer at purchase point Interpretive Direction: The lower, the better. As the tax declines, the lower the impact on total purchase cost to the consumer. Source: All information from: Global Trade Portal. (n.d.). Retrieved from The Federation of International Trade Associations website on February 12, 2015: fita.org
. Inflation Rate, Macro a. Year of Data: 2015 b. Explanation: To measure changes in prices due to inflation c. How Measured: Percentage
d. Why Chosen: To measure increases or decreases in prices e. Interpretive Direction: The lower, the better. Lower inflation rates indicate that
prices will not fluctuate much in the market. f. Source: All information from: Global Trade Portal. (n.d.). Retrieved from The
Federation of International Trade Associations website on February 12, 2015: fita.org
10. Unemployment Rate, Macro a. Year of Data: 2015 b. Explanation: Percentage of people who are without jobs c. How Measured: Percentage d. Why Chosen: To indicate ratio of the country's people without jobs e. Interpretive Direction: The lower, the better. This will impact funds available to
consumers to purchase diapers. f. Source: All information from: Global Trade Portal. (n.d.). Retrieved from The
Federation of International Trade Associations website on February 12, 2015: fita.org
11. Political Stability and Absence of Violence / Terrorism, Macro a. Year of Data: 2015 b. Explanation: Measure perceptions of the likelihood of political instability and/or
politically motivated violence, including terrorism. c. How Measured: Scale of-2.5 to 2.5
d. Why Chosen: This is an important factor for a US based company to consider when entering foreign markets, as companies want to avoid becoming a target.
e. Interpretive Direction: The higher, the better. Countries with higher scores are more stable and are less likely to see violence.
f. Source: All information from: Detailed database search. (n.d.). Retrieved from The World Bank on February 12, 2015: info.worldbank.org/governance/wgi/index.aspx#reports
12. Tax Rate, Macro a. Year of Data: 2015 b. Explanation: Measure of the taxes imposed on everyday products in each country c. How Measured: Percentage d. Why Chosen: The tax rate impacts the final purchase price to consumers. e. Interpretive Direction: The lower, the better. As the tax rate decreases, the cost to
the consumer will be lower. f. Source: All information from: Global Trade Portal. (n.d.). Retrieved from The
Federation of International Trade Associations website on February 12, 2015: fita.org
13. Purchasing Power Parity Gross National Income Ranking, Macro a. Year of Data: 2013 b. Explanation: Gross national income rankings using the purchasing power parity
method c. How Measured: Rankings d. Why Chosen: To show gross national income rankings which indicate income level
rankings for each country e. Interpretive Direction: The lower, the better. The lower ranking countries have the
highest gross national income. f. Source: Detailed database search. (n.d.). Retrieved from The World Bank on
February 12, 2015: http://databank.worldbank.org/data/download/GNIPC.pdf
14. Corruption Perception Index, Macro a. Year of Data: 2014 b. Explanation: Measure of corruption level of public sectors c. How Measured: Scale of 0-100 d. Why Chosen: Examines the corruption level in the part of the economy controlled
by government e. Interpretive Direction: The higher, the better. Lower scores indicate more
corruption; higher scores indicate less corruption. f. Source: "How Corrupt Is Your Country?" 2014 Corruption Perceptions Index. Web.
12 Feb. 2015. <http://www.transparency.org/cpi2014/results>.
15. Debt as a Percentage of Gross Domestic Product, Macro a. Year of Data: 2013 b. Explanation: Ratio between a country's government debt and its gross domestic
product c. How Measured: Percentage
d. Why Chosen: To examine each country's ability to pay back debts e. Interpretive Direction: The lower, the better. Countries with a low percentage are
able to produce and sell good and services well enough to pay back debts. f. Source: "World Economic Outlook Database April 2013." International Monetary
Fund. Web. 15 Feb. 2015.
16. Population Growth Rate, Macro a. Year of Data: 2014 b. Explanation: Measure of a country's population growth or decline c. How Measured: Percentage d. Why Chosen: As a country's population grows, there are more people who could
participate in the production of babies. e. Interpretive Direction: The higher, the better. As population grows, so do the
number babies who need diapers. f. Source: All information from: The Worm Fact Book. (n.d.). Retrieved from the
CIA on February 15, 2015: https://www.cia.gov/library/publications/the-world- factbook/fields/2002.html
RAW DATA MATRIX
Micro Indicators
1 Annual Diaper Sales (million Euros) The htgher, the better
372
4 Contraceptive Use as Percentage The lower, the better
5 AnnualNumber of Births The htgher, the better
6 Annual Samtary Articles Imported (in kg) The htgher, the better
7 Baby Product Sales Growth The htgher, the better
8 Taxes on Imports The lower, the better
Macro Indicators
9 Inflation Rate The lower, the better
10 Unemployement Rate The lower, the better
11 Political Stability & Absence of Violence/Terrorism The htgher, the better
12 Tax Rate The !ower, the better
13 PPP GNI Ranking The lower, the better
14 Corruption Perception Index Score The htgher, the better
15 Debt as Percentage of GDP The lower, the better
16 Population Growth Rate The higher, the better
68,904,888
0.51
84,144,954
0.01
224,685,949
0.93
68,276,273
1 12
187,441,368 218,185,775
3 Fertility Rate (# ofbtrths per woman) The htgher, the better
1.4
62.7%
561,944
2 Number of Major Advertising Agenmes The higher, the better
1.5
65.7%
485,252
579
1.4
66.2%
677,947
170
1.8
69.0%
179,448 802,224 790,204
-6.0% -4.3% 6.0% 4.4% -4.4% -1.6%
406 Italy Spain Germany Netherlands France
705
76.4%
United Kingdom
580
1.9
84 0%
4 2%
0.1%
12.6%
4.2%
0.0%
24.6%
4 2%
0.9%
5.3%
4.17%
0.5%
7.3%
4 0%
41
43
126 9%
0.30%
4 0%
45
60
84.1%
081%
7.0%
25
79
81.9%
-0 18%
6 0%
24
83
71.7%
0.42%
4 2%
0.7%
10 0%
0.42
10.0%
37
69
90.2%
0.45%
4.2%
1.6%
6.3%
0.48
5.0%
38
78
90.3%
0 54%
SCORED DATA MATRIX
Micro Indicators
1 Annual Diaper Sales (milhon Euros)
2 Number of Major Advemsmg Agencies
3 Feiÿ2dlty Rate (# ofbmhs per woman)
4 Contraceptlve Use as Percentage
5 Annual Number of Births
6 Annual Samtaly Articles Imported (In kg)
Weight 015
007
010
008
025
012
018
005
100
015
009
02211 Political Stability & Absence of Voflence/Terronsm
40
2.4
27
30
40
20
37
22
22
17
30
50
07
08
4.0
40
10
35
38
50
50
30
20
45
45
14
05
30
28
05
12
40
32
27
38
50
12 Tax Rate
13 PPP GNI Ranking
14 Corruption Perception Index Score
15 Debt as Percentage of GDP
16 Population Growth Rate
TOTAL MACRO
007
024
008
005
010
100
40
22
23
12
20
4.0
20
32
37
50
15
45
48
42
02
20
47
50
50
30
7 Baby Product Sales Growth
8 Taxes on Imports
TOTAL MICRO
Macro Indicators 9 Inflation Rate
I 0 Unemployement Rate
27
05
10
40
30
14
05
30
Italic Spain Germany Netherlands France 50
2O
40
20
50
3.8
17
3.0
2.2
3.0
18
0.5
35
40
35
32
United Kingdom 40
2.3
35
10
45
47
25
30
08
44
25
30
34
47
35
37
DECISION MATRIX
Micro Indicators 1 Annual Diaper Sales (million Euros)
2 Number of Major Advertising Agencies
3 Fertility Rate (# of births per woman)
4 Contraceptive Use as Percentage
5 Annual Number of Births
6 Annual Sanitary Articles Imported (in kg)
Italy 0.405
0.035
0.1
0.32
0.75
0.168
0.09
0.15
2.018
0.6
0.216
0.594
0.28
0.528
0.184
0.06
0.2
2.662
4.68
11 Political Stability & Absence of Violence/Terrorism
12 Tax Rate
13 PPP GNI Ranking
14 Corruption Perception Index Score
15 Debt as Percentage of GDP
16 Population Growth Rate
TOTAL MACRO TOTAL COUNTRY
0.75
0.063
0.176
0.28
0.48
0.256
0.06
0.5
2.565
5.061
0.6
0.28
0.1
0.28
0.95
0.6
0.9
0.15
3.86
0.3
0.405
0.99
0.105
1.08
0.384
0.06
0.02
3.344
7.204
0.21
0.035
0.3
0.224
0 125
0.144
0.72
0.16
1.918
0.405
0.342
1.1
0.14
1.128
0.4
0.06
0.3
3.875
5.793
0.45
0.28
0.2
0.296
0.55
0.264
0.306
0.15
2.496
7 Baby Product Sales Growth
8 Taxes on Imports
TOTAL MICRO
Macro Indicators 9 Inflation Rate
10 Unemployement Rate
Spain Germany Netherlands France 0.75
0.14
0.4
0.16
1.25
0.456
0.306
0.15
3.612
0.33
0.27
0.396
0.035
0.84
0.32
0.06
0.32
2.571
6.183
United Kingdom 0.6
0.161
0.35
0.08
1.125
0.564
0.45
0.15
3.48
0.12
0.396
0.55
0.21
0.816
0.376
0.06
0.37
2.898
6.378
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