Country Notebook

The Country NotebookA Guide for Developing a Marketing Plan

The Country Notebook Outline I. Cultural Analysis II. Economic Analysis III. Market Audit and Competitive Market Analysis IV. Preliminary Marketing Plan

III. Market Audit and Competitive Market Analysis

Guideline I. Introduction

The introduction is a brief statement about the purpose of the marketing program. It includes a description of the product, the marketing segment(s) targeted, customer needs and how this marketing program will satisfy those needs. II. The product Describe the product(s); its strongest features and major weakness; the stage in the product life cycle in the home country and in the target country. A. Evaluate the product as an innovation as it is perceived by the intended market

In this analysis of the product you plan to introduce to the target market, you are evaluating how the market perceives your product as an innovation. This analysis will help define the perceived strengths and/or weakness of your product in the target market which then provides you with the basis on which to build an effective market plan. For example, the market may not perceive any relative advantage of your product over the one presently consumed. This may be a signal to redesign the product, alert you to the need to inform the market about the products advantages, etc. or, the market may perceive that your product offer a major relative advantage over current products. In this case, your marketing can focus on this

market perceived strength. If the product is not perceived as being compatible with current practices, how can your marketing effort make it more compatible? The same for complexity, trialability, and observability. 1. Relative advantage Focus on evaluating the product within the culture. Is there an advantage of using your product over other products used to provide the same product benefit? 2. Compatibility Is the product compatible with cultural beliefs, the way other products fulfill the same benefit as local products? 3. Complexity Would the product require special skills to be used properly? 4. Trialability Can the product be tried (purchased) with minimum riskeconomic, social, etc? 5. Observability Are the uses and benefits of the product obvious to a potential customer, or must the consumer be educated to appreciate the products benefits? B. Major problems and resistances to product acceptance based on the preceding evaluation Based on the preceding evaluation of the product, list the strengths and weaknesses for each of the five characteristics of an innovation as perceived by the market. III. The market In this section of your report you are to describe the total market. The question you want to answer is, What is the market in which you intend to launch a successful marketing program like? It is in this uncontrollable environment that your marketing plan will have to be launched. By conducting this audit of the market you will have a better understanding of market conditions. What are the strengths on which you can build? What constraints exist for which you must compensate?

What market features are available for you to utilize in successful marketing program? Who is your competition and what are their strengths and weakness? A. Describe the market(s) in which the product is to be sold [insert text here]

1. Geographical region(s) [insert text here]

2. Forms of transportation and communication available in that (those) region(s) [insert text here]

3. Consumer buying habits Included in this section are product use patterns, product feature preferences, and shopping habits. Product use patterns would describe how the product is used. Do use patterns differ for certain market segments as well as differ from other country market segments?For example, in the U.S., the breakfast drink TANG is consumed mainly at breakfast as a substitute for a breakfast juice drink. In some Latin American countries, TANG is consumed in social settings as a refreshment and rarely at breakfast. Preference for specific product features may vary from market to market. For example, in poorer countries single item packaging or small quantities may be preferred over multiple item packaging or larger quantities. In many countries, razor blades are sold in single packages, whereas in the U.S., most razor blades are sold in packages of five or more. Products that require little or no maintance may be preferred over products that must be maintained on a regular basis. Shopping habits may also vary from market to market. For example, a product sold in a variety store may be sold only in pharmacies in some countries. Simple magnifying reading glasses can be purchased in a variety of stores in the U.S., but can only be sold by prescription in the U.K. In some countries males rather than females 3

customarily do the buying. When a product is purchased may varying depending upon its use patterns. For example, in Mexico a large percentage of soft drinks are bought in small corner stores, in single bottles already chilled and taken home to be consumed immediately with a meal. In the U.S., most soft drinks consumed with meals are bought in supermarkets in multiple packages, chilled at home, and consumed over several days. a. Product-use patterns [insert text here] b. Product feature preferences [insert text here] c. Shopping habits [insert text here]

4. Distribution of the product Are nontraditional distribution methods necessary to successfully penetrate the market? a. Typical retail outlets [insert text here] b. Product sales by other middlemen [insert text here]

5. Advertising and promotion Based on the characteristics of the product and the availability of advertising media, identify the media necessary to reach target market(s). In some countries cinema advertising or traveling exhibitions are important media. Is this the case in your country?

a. Advertising media usually used to reach your target market(s)

[insert text here] b. Sales promotions customarily used (sampling, coupons, etc.) [insert text here]

6. Pricing strategy [insert text here] a. Customary markups [insert text here] b. Types of discounts available [insert text here] B. Compare and contrast your product and the competitions product(s)

Who are the major competitors in the market? How will consumers perceive your product relative to the competition? 1. Competitors product(s) In this section, include the competitive product brand names, product features, and packaging. In other words, a complete description of competitive products. a. Brand name [insert text here] b. Features [insert text here] c. Package [insert text here]

2. Competitors prices [insert text here]

3. Competitors promotion and advertising methods [insert text here]

4. Competitors distribution channels [insert text here] C. Market size

Your challenge in this section is to determine, as best as you can, the market size today and the potential market five or so years in the future. 1. Estimated industry sales for the planning year [insert text here]

2. Estimated sales for your company for the planning year [insert text here] D. Government participation in the marketplace [insert text here]

1. Agencies that can help you [insert text here]

2. Regulations you must follow

[insert text here] IV. Executive summary Based on your analysis of the market, briefly summarize (one-page maximum) the major problems and opportunities requiring attention in your marketing mix, and place the summary at the front of the report. Sources of information [insert text here] VI. Appendixes [insert text here]

V.