Summarize your findings from previous assignments about the company doing business in Israel?4000 words
Determine the marketing mix specific to your selected global product or service and explain your choice of marketing mix. Prepare a marketing plan that addresses product modification, pricing, promotional programs, distribution channels, and e-business in your chosen country. Include market indicators and trends for your product or service.
Prepare a financial overview for your global venture. Include a chart that represents the general budget for your global venture. Explain how your company deals with foreign exchange risk for your global operation.
The response addresses the queries posted in 4785 words with references.
//The business boundary for a Company is not only the domestic market; but the foreign market is also available for the business. The firm wants to make a joint venture in the Israel. It will face many business risks. As per the instructions, we will discuss about it considering the previous study. //
Findings of Previous Study
As we know that every business unit faces some risks related to the operational activities. The company wants to start its business with Israel. It manufactures the irrigation system and Israel is also an agriculture based country. So, there is a large potential market for the trade. The marketing condition of Israel will also support the company's business. That is why decision regarding joint venture is appropriate. But the Israeli Economy is a 'Socialist Economy'. So, the Government takes decision regarding resources allocation. Hence, the company will face more political risks in its business. There is a little possibility that some political local union of Israel can protest against the company.
The corporation also will face intense competition in the Israeli market because there are many players related with the same business. The company should manufacture low cost product to sustain in the Israeli market because its buying power is not too much. Taxation policy of both the companies is different. Company will have to pay double taxation, once in the Israel and second time in the US. So, it should earn sufficient profit on the product. Company will have to burn up less money on the marketing, because the "word of mouth" plays a significant role in sales. Still, the firm will have to give sufficient margin to the dealers and distributors.
//Prior to framing the marketing plan for the company for its business in Israel, it is better to understand the concept of marketing plan and the elements included in a marketing plan for the company to expand its business dealings in the new market of Israel.//
Marketing plan is the base of entire marketing process of a business organization. It is kind of written document which is prepared by the company to expand its business in the new market and want to do new product development. In a marketing plan, all the actions which are essential to be taken by the company for the achievement of its marketing objectives are included (Peter & Donnelly, 2002). The marketing plan can be made either for a product or for a service. The given marketing plan is also made for the product of the manufacturing company. The company is based in the United States and wants to increase its product line in the Israel market as it is receiving order from the farmers of that particular country. The marketing plan is specifically made for long term by the company. The marketing plan involves the development of a logical process to establish market goals and plans to achieve and evaluate the target market segment.
In a marketing plan, several elements are included which are important from the business point of view of the company and which match with the requirements of the company. For the given manufacturing company the marketing plan is to be made for the market expansion. In this plan the company wants to implement the best component of its marketing mix in order to have the positive response form the customers (farmers) of the newer market. In addition to this, the company also required to include modifications in the product according to the new market pricing strategy according to the financial conditions of the new market, promotional strategies to have higher degree of sales in the new market, selection of appropriate distribution channel and implementing e-business in the country i.e. Israel. In addition to this, the given marketing plan is also including the marketing indicators and trends for the promotion of the sale of the new product.
//After having a good understanding of the concept of the marketing plan and the elements included by the manufacturing company in its marketing plan, in the next part of the discussion we are including a short description of the business and product of the manufacturing company.//
The manufacturing company for which the given marketing plan is prepared is a US based company. The business of the company is mainly related with agricultural field. The company mainly manufactures the plastic fittings (PVC) to be used in the irrigation systems. Earlier the company was doing its business for the customers of its native country which is the United States. But in the beginning of the year 2009, the company decided to expand its business in the new country named Israel as it received the demand of its products from the farmers of Israel. The company wants to establish its business in this new market with the implication of an effective marketing plan so that it can have favorable business growth in Israel. For this purpose the company wants to include all the essential elements in its marketing plan, which is essential for it to according to the requirements of the new business environment.
//After having the knowledge of the background of the business of manufacturing company, in the next section of the discussion, the marketing mix related to the product of the company is described.//
Marketing mix is an aggregation of the different tools related to particular product or service of the company. In the marketing mix, four specific things are included from the product point of view. The four main elements of the marketing mix related to a product are product mix, price mix, promotion mix and place mix. All these elements are essential for a company, which wants to introduce its product in the new market or produce entirely new product (Peter & Donnelly, 2002).
For the given product of the plastic fittings, the company will also determine all the four elements of the marketing mix according to the customers of the Israel market. The description of the four elements of the marketing mix is explained in this section.
Product Mix: The product mix is the most important part of the entire marketing mix of the manufacturing company. This is because the company is mainly a manufacturing company and deals in product manufacturing. The new customers of the company are the farmers of Israel. In Israel the landscape is different from the United States. For the suitability of the product in the new market of Israel, the company would require to make some specific changes in its product mix. The agricultural activities of Israel are highly industrialized and computer based. For this purpose the products going to be introduced in Israel should have very effective features. It should have a good brand name and product quality. The material used in the product should be with good.
Price Mix: The price mix is the main factor of the marketing mix which is essentially considered by all the marketing companies. For the given manufacturing company also the price factor is important. As in Israel, the farmers have no problem with the availability of the water (Agricultural Development in Israel, 1998). They have various sources of water. For this purpose the company can price its products high for the Israelites farmers as they want highly advanced equipments. The company also deals in some monopolistic products which are essential for the farmers of Israel for which they are ready to pay any price. Thus, the company can price its products as high as it want.
The response addresses the queries posted in 4785 words with references.