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1. Introduction to International Marketing, Nature of


International Marketing
2. International Marketing Environment
2 Cultural
2 Political
2 Legal
2 Consumer Behavior
3. Entry Strategies for entering International
Markets
4. International Marketing Research
5. Major Decisions in International Marketing
5. Major Decisions in International Marketing
2 Product Strategies
2 Pricing Strategies
2 Place (Distribution) Strategies
2 Promotion Strategies
6. Export Management
2 Export Procedures
2 Pre-Shipment Documentation
2 Terms of Payment
O Define international marketing
O Levels of International Marketing
O Firm-specific drivers
2 Õ ÕÕ
Õ  Õ Õ  Õ
.
O International Marketing Challenges
O EPRG Concept
O Process of Internationalization
I. Identifying needs and wants of customers in
international markets
II. Taking marketing mix decisions related to
product, price, distribution and communication
III. Penetrating into international markets using
various modes of entry
IV. Taking decision in view of dynamic international
marketing environment.
Domestic Company

Export Marketing Company

International Marketing
Company

Global Marketing Company


Domestic Export International Global
Marketing Marketing Marketing Marketing

‡ Least ‡ Limited ‡ Substantial ‡ Extensive


international international international international
commitment commitment commitment commitment
‡ Domestic ‡ Involves ‡ Focus on ‡ Focus on
focus direct or individual segments,
indirect export countries or rather than
regions countries or
‡ Ethnocentric
regions
‡ Polycentric or
Regiocentric ‡ Geocentric
O Domestic strategies, techniques, and personnel M 
 M  

O Export marketing considered as extension of domestic


marketing.
O International markets regarded as
2
 
  
 
  

O Goods manufactured in home base
O International marketing plans
2 

  M 
M 

O Focuses on importance and uniqueness
2 of M  M 
M M 
O May establish businesses M M  
 
O    
, minimal coordination with
headquarters
O Marketing strategies = R  

O Result:
2 duplicated functions
O Firm treats a region as a uniform market
segment and adapts a similar marketing
strategy within the region.
O World regions that share
2 economic, political, and/or cultural traits
2 are  RR  R
O j  
  
2 coordinate marketing activities
O world is perceived as a 
  
O Integrated marketing strategies
2  R R,
2 rather than geographic locations
O Provides   product or service
2 throughout the world
  


 
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u  
  j"   

j 
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O Push Factors
2 Constraints in the home market pushing the firm to seek
overseas markets
O Pull factors
2 The appeal of markets abroad
O Saturation in the home market
O Extend the product life cycle
O Level out seasonal fluctuations in demand
O Reduce dependence on home market
O Intense competition in home market
O Economic problems in home market
O Make use of excess capacity
O Excessive regulation in the home market
O Spread risks
O Exploit a business opportunity
O Growth potential in overseas market
O Overseas market currently under supplied
O Low degree of competition abroad
O Exploitation of a new market segment
O Benefit from economies of scale-reduction in unit
costs
O Growth prospects
O Elimination of a constraint imposed by recession
or saturation at home
O Economies of scale to reduce unit costs
O Use of spare capacity
O Development of new markets
O Spreading of risks
O Social differences ± culture, religion, language,
literacy. Role of women, tastes
O Economic differences-living standards, taxation,
inflation, exchange rates.
O Trade Barriers
O Political Differences- degree of political stability
O Legal differences-safety, product standards,
environmental issues, advertising
O Increased transport, distribution and
communication costs
O Remoteness from customers
O Transport costs
O Economic differences
O Business relationships and practices
O Need for local expertise
O Use of different currencies
O Exchange rates-transaction costs associated with
currency exchange
O Risks associated with currency movements
O Decline in trade barriers
O Removal of restrictions on foreign investments
O Technological Change ± particularly developments
in communication, information and transportation
technologies
O 1961: Ranbaxy Laboratories Limited was registered in
India
O 1962: Began manufacturing formulations
O 1975: Formulated its export strategy
O 1977: Ranbaxy had its first international joint venture in
Lagos (Nigeria)
O 1988: Ranbaxy¶s Toansa plant got US Food and Drug
Authority (FDA) approval
O 1990: Ranbaxy was granted a patent for Doxycyline in
the US.
O Ranbaxy repositioned itself in 1992 to gear up for
internationalization
O Brought a change in the exports mindset.
O Focused and rapid expansion into foreign countries.
O Focused on research to leverage in the era of worldwide
intellectual property rights
O Serious about its image as an µinternational µ player and
fought hard against the stigma attached to Indian firms
O 1992: Entered into an agreement with Eli Lilly & Co for
strategic alliance in India, to market select the latter¶s
products
O 1993: Joint venture was set up in China and was called
Ranbaxy (Guangzhou China ) Limited
O 1994: Established its Regional Headquarters in London
(UK) and Raleigh (USA)
O 1995: Acquired Ohm Laboratories & state of the art new
manufacturing site at Ranbaxy¶s US subsidiary started
functioning.
O 1999: Bayer AG, Germany and Ranbaxy signed an
agreement for an International Strategic Alliance,
2 Bayer obtained exclusive development and worldwide marketing
rights to oral once daily formulation of Ciprofloxacin, developed by
Ranbaxy.
2 Ranbaxy¶s strategy was to market its products globally through
this alliance.
O 2000: Ranbaxy acquired Bayer¶s Generics business in
Germany
O 2000: Forayed into Brazil, achieved global sales of US $
2.5 million
O 2001: Set up of a new manufacturing facility with an
investment of US $ 10 million in Vietnam (Green Field
Venture)
O 2001: Ranbaxy USA crossed sales of US $ 100 million
becoming the fastest growing company in the US
O 2003: Ranbaxy and GSK accelerated entered into a global
alliance for drug discovery and development
O 2004: Ranbaxy began operations in France as a generic
company after acquiring a wholly owned subsidiary RPG
(Aventis)
O 2005: Ranbaxy¶s anti-malarial molecule successfully
completed POC Phase II studies, launched in Canada.
O 2005: Ranbaxy¶s joint venture with Nippon Chemiphar in
Japan (Nihon Pharmaceutical Industry Limited) launched
Vogseal for diabeties, the first product of the joint venture.
O 2005: Acquired the generic product portfolio from EFARMES
of Spain ( 18 drugs for sale in Spain)
O µAggressive overseas acquisition¶ strategy for expansion
O 2006: Ranbaxy¶s US arm bought patents, trademarks
and automated manufacturing equipment from Senetek
O 2006: Ranbaxy¶s Italian subsidiary acquired the
unbranded generic business of Allen, a division of
GlaxoSmithKline, to complement its own pipeline for the
Italian market
O 2006: Terapia acquisition created Romania¶s largest
generics firm
O Ranbaxy has manufacturing operations in more
than a dozen countries
O Products are available in over 125 countries.
O Expanding international portfolio of alliances, joint
ventures and representative offices across the
globe
2 USA, Japan, China, Mexico, Canada, Brazil and South
Africa.
2 Presence in 22 of the 25 European Union countries ,
including Germany, France, Italy, UK and Spain.
O 1984: Company was set up by Dr. Anji Reddy in India
O 1986: Dr. Reddy¶s entered international markets with
exports of Methyldopa
O 1987: It obtained its first USFDA approval
O 1990: Exported Norfloxacin and Ciprofloxacin to Europe
and the Far East
O 1991: Commenced formulation exports to Russia
O 1995: DRL established a joint venture in Russia
O 1999: Acquired 45 percent stake in American Remedies
Limited.
O 2000: Reddy US Therapeutics , a wholly owned
subsidiary, was established in Atlantia, USA, to conduct
drug discovery
O With its merger with Cheminor Drugs Limited (CDL) and
with its acquisition of American Remedies Limited (ARL),
the company became India¶s third largest
pharmaceutical company
O Commenced operation in China by establishing Joint
Venture
O 2002 DRL conducted its first overseas acquisition- BMS
Laboratories Limited and Meridian Healthcare in UK
Nordisk
O Geographic mix: domestic operations (36%) and international
operations (64%)
2 North America largest market (41 percent of international sales of the
company)
2 Europe (22 percent),
2 Russia and (CIS) countries (18 %)
2 Others (19 percent)
O Product mix: APIs accounted for (38 %)
O Therapeutic mix: 75 percent of branded formulation sales
derive from gastrointestinal, cardiovascular, anti-infectives,
pain management and nutrients segment.
O US generic market: currently marketing over 20 products.
O Agreement with Merck (Strategic Alliance): Distribute
and sell generic versions of Proscar and Zocor in
India, become an authorized generics manufacture for
a multinational.
O Bioignal Ltd Australia(Strategic Alliance): Develop
mass manufacturing processes for furanone,
O Acquisition: DRL acquired Roche¶s Active
Pharmaceutical Ingredients (API) business, mexico
O Symbolic, New Zealand (Strategic Alliance) :
Marketing its nutritional and immune boosters in India.
O Lupin Pharma Inc, plans to launch over 75 products in
the US in the coming three years.

O Has about 28 products in the US market.

O Growth rate of 25-30% per year from the US in the next


three to four years is anticipated.

O Plans to launch include oral contraceptives, ophthalmic


and asthma drugs, which have limited competition.

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