UNIT 2

WEEK N° 05

INTERNATIONAL
BUSINESS PLAN

Elizabeth De La Cruz
 ~J I
J

Units Achievement

2. FORMULATION OF • At the end of the unit, in work teams students

BUSINESS PLAN, MARKET present the study of international market as
STUDY - PLAN OF part of the business, using the criteria of
MARKETING research and business intelligence relevant.

• RESEARCH ABOUT INTERNATIONAL MARKETS.

WEEK 5 Main exporters and world importers of the
selected product and elaboration of the
matrix of target market selection

2
 ACHIEVEMENT OF THE SESSION

At the end of the session, the student elaborate the matrix of target

market selection through tecniques of strategy planning, showing

order and analytical skills.

TIME SUBJECT VERB CONDITION CRITERIA

UNIVERSIDAD PRIVADA
DEL NORTE
 SCHEDULE

1. Introduction
2. Main exporters and world importers of the selected
product
3. Elaboration of the matrix of target market selection
World's Biggest Exporting Countries?

• https://www.youtube.com/watch?v=UDW5_WJ4eRo
 Interest

I How can you

determine how
attractive a market is?

UNIVERSIDAD PRIVADA
DEL NORTE
 Discovery

Main exporters and world importers

 Discovery J

~J I
1. Importers
Discovery
Discovery
Discovery

\
 Discovery

China

With the second largest economy in the World, China is the leader in exports. China exported nearly
$2.50 trillion worth of goods in 2017, nearly 1 trillion more than the second placed country on the list,
the United States.

China’s major exported goods are electronics and other

machinery
Out of the top 10 busiest container ports in the world,
seven are located in China. *Shanghai
Discovery

China
Discovery

China

How did he start earning $ 20 a month to be the richest man

in China?

He was a very bad student in college.

He was rejected 10 times from Harvard.

They rejected your application for 30 different jobs.

Discovery

China
 Discovery

USA

The United States is the world’s largest economy and the world’s second largest exporter of goods. The
top 5 destinations for exports from the United States are: Canada, Mexico, China, Japan and the United
Kingdom.

Most Exported Products:

Capital goods (transistors, aircraft,
motor vehicle parts, computers,
telecommunications equipment)
Organic chemicals, Automobiles,
Medicines
Most Imported Products:
Industrial supplies, Automobiles,
clothing, medicines, furniture, toys,
Computers, telecommunications
equipment
Ports in the United States with the
highest volume of goods exported
and imported are California, New
York, New Jersey.
Discovery
 Discovery

Germany

Germany is the 3rd largest exporter worldwide, in addition to being the largest economy in Europe and
the world’s 4th largest economy. The top 5 trading partners with Germany in 2017 were: United States,
France, China, Netherlands and the United Kingdom.

Most Exported Products:

Motor vehicles
Machinery
Chemicals
Most Imported Products:
Machinery
Data processing equipment
Vehicles
Busiest Ports:
Hamburg (machinery and
equipment, chemicals)
Bremerhaven (automobiles)
Discovery

Germany
Discovery

Japan

Japan is the 4th largest exporter in the world and the world’s third largest economy. It also has the
world’s third largest automobile manufacturing industry and the largest electronics goods industry. The
countries to which Japan exported the most goods to in 2017 are: the United States, China, South Korea,
Taiwan and Thailand.
Discovery
 Discovery

South Korea

South Korea is the 5th largest exporter of goods in the world. Its economy is the 11th largest in the
world and the 4th largest in Asia. Major economic sectors include shipbuilding, automobile
manufacturing and electronics. South Korea’s top trading partners in terms of exports in 2017 were:
China, the United States, Vietnam, Japan and Taiwan.

Most Exported Products:

Semiconductors
Petrochemicals
Automobile/Auto parts

Most Imported Products:

Crude oil/Petroleum products
Semiconductors
Natural Gas

Busiest Ports:
Busan (top exports: integrated
circuits, cars)
 Discovery

South Korea
 Discovery

France

France is the 6th largest exporter and the world’s 7th largest economy. The biggest industries in France
are: energy, manufacturing and transport. The top export destinations for products made in France are:
Germany, Belgium, Italy, Spain and the United States.
 Discovery
I
France
 Discovery

Netherlands

The Netherlands is the 7th largest exporter in the world and the countries overall economy is the 17th
biggest in the world. The leading destinations for Dutch exports are: Germany, Belgium, the United
Kingdom, France and Italy.

Most Exported Products

Machinery and transport
equipment
Chemicals
Mineral fuels
Most imported products
Machinery and transport
equipment
Chemicals
Fuels
Busiest ports
Rotterdam (top imports: coal,
iron ore)
Amsterdam (top imports:
cocoa, iron ore, oil products)
Discovery
 Discovery

Italy

It has the 3rd largest economy in the Eurozone in addition to being the 8th largest economy in the world.
The top export destination for Italian goods are Germany, Belgium, Italy, Spain and the United States.

Most Exported Products

Engineering products
Textiles and clothing
Production machinery

Most imported products

Engineering products
Chemicals
Transport equipment
Energy products
Minerals and nonferrous
Metals

Busiest ports
Port of Gioia Tauro (top
imports: crude oil)
Port of Genoa (top
imports: steel products)
 Discovery

Italy
 Discovery

United Kingdom

The United Kingdom is the 9th largest exporter in the world and the 6th largest economy
worldwide. The United Kingdom’s top trading partners are: the United States, Germany,
Netherlands, France and the Republic of Ireland.

Most Exported Products

Manufactured goods
Fuels
Chemicals
Food

Most imported products

Manufactured goods
Machinery
Fuels
Foodstuffs

Busiest ports
Felixstowe (number 1 port for
imports in the UK)
Southampton (number 1 export
port in UK))
 Discovery

United Kingdom
 Discovery

Canada

Canada is the 10th largest exporter in the world and it is also boasts the has the 10th largest
economy in the world. Top destinations for Canadian exports are, United States, China,
United Kingdom, Japan and Mexico.

Most Exported Products

Motor vehicles and parts
Industrial machinery
Aircraft
Telecommunications equipment
Chemicals

Most imported products

Machinery and equipment
Motor vehicles and parts
Crude Oil

Busiest ports
Vancouver (top imports: Steel
commodities)
 Discovery

Canada
Experience
 Discovery

Research about International Markets

I New
parameters

Broader RESEARCH ABOUT

definition of INTERNATIONAL New
environments
competence
MARKETS

Increase in
#involved
UNIVERSIDAD PRIVADA
DEL NORTE
 Dicover

I
 Discovery

Secondary research

I International organizations

• Statistical Yearbook, international trade of

products and offers information on the exports
and imports of each country.
• United Nations Conference on Trade and
Development (http:// www.uctad.org),
international issues around developing nations
• United Nations Center on Transnational
Corporations (http://www.intracen.org).
• World Atlas, (http://www.worldbank.org),
provides useful general data on population,
growth trends and GDP figures.
• World Trade Organization (http:/www.wto.org)
and the Organization for Economic Cooperation
and Development (OCDE)
(http://www.oecd.org)
UNIVERSIDAD PRIVADA
DEL NORTE
 Discovery

Trade Statistics by Product

 Discovery

Secondary research

Electronic Information Services

I •

•
Global Business Opportunities & National Trade Data Bank (NTDB) United States Department
of Commerce.
Country Commercial Guides reports the political, economic and commercial environment of
the other countries.
• Global Trade Directory offers detailed information on products, services and industries offered
by local, regional, national and global companies.Los informes
• Foreign Reports on Economic Policy and Trade Practices provide comparative analyzes of the
economic policies and trade practices of countries with which the United States has significant
economic and trade relationships
'" 1,
.•
 Discovery

https://www.revistalideres.ec/lideres/bigcola-bebida-peru-asia-empresas.html I
 Discovery

Primary research

I It is necessary for the researcher to choose an appropriate investigation technique to

gather the necessary information. Sensitivity to different international environments
and cultures will guide the researcher in their decision to use:
• Interviews
• Focus groups
• Observation
• Surveys
• Experimentation as techniques
data collection
 Discovery

Primary research

I
• Focus groups

https://www.youtube.com/watch?v=3TwgVQIZPsw
Market Failures

• https://www.youtube.com/watch?v=rJixtB0GluQ
Attractiveness of a Market Segment

• Size of the segment (number of customers, units or $ sales)

• Growth rate of the segment (a very important variable)
• Profit margins of the segment to the sales organisation
• Ongoing purchasing power of the segment
• Attainable market share given promotional budget,
fragmentation of the market and competitors’ promotional
expenditures
• Required market share to break even.
Capability of the organisation

• Competitive capability of the organisation against the marketing

mix (product/service, place, price and promotion)
• Access to distribution channels
• Capital and human resource investment required to serve the
segment
• Brand association of the organisation in the eyes of the segment
• Current market share/likely future market share.
Scoring the Directional Policy Matrix

1- Weight the relative importance of each factor of attractiveness

and capability in terms of its contribution to the goal of the
marketing strategy out of 1.

2- Allocate the respective weight of a total score of 48 points to

each factor. e.g. if the weighting for a factor was 0.2 then the total
points available for that factor is 0.2X48=10 (rounded up)
Scoring the Directional Policy Matrix

3- Score each segment relative to the other segments in how

much each segment meets the criteria of the factor. e.g. For the
attractiveness factor ‘Size of segment’, in the example Table 1,
score the largest segment 10 and the smallest segment 1.

4- Plot the resultant score in excel and create a bubble chart

graph where the size of the bubble represents the size of the
segment for greater visual clarity when it comes to interpreting
the analysis.
Interpreting the Directional Policy Matrix
The tactics for each sector descriptor are:

1.Leader – Focus your resources on segments in this sector.

2.Growth leader – Grow by focusing just enough resources here.
3.Cash Generator – Milk segments in this sector for expansion
elsewhere.
4.Phased withdrawal – Move cash to segments with greater potential.
5.Custodial – Do not commit any more resources to segments in this
sector.
6.Try harder –Determine if there are ways in which you can build your
capability for segments in this sector for low levels of cash.
7.Double or quit – Invest in your capability or get out of segments in this
sector.
8.Divest – Liquidate or move assets used in segments in this sector as
fast as you can.
 Discovery

Primary research

External investigation services

VNU http://www.vnu.com
Taylor Nelson Sofres plc http://www.tns-global.com
IMS Health Inc. http://imshealth.com
The Kantar Group http://www.kantargroup.com
GfK Group http://www.gfk.com
Ipsos Group SA http://www.ipsos.com
Information Resources Inc. http://www.infores.com
Synovate http://www.synovate.com
NOP World http://www.nopworld.com
Westat Inc. http://www.westat.com
Marketing: Segmentation

• https://www.youtube.com/watch?v=0srjdRDh99Y
 Experience

Team work

Choose 3 countries that are most convenient for you to market your product and
perform a Target Market Selection Matrix to determine the best market.

Coef Criterion Australia Canada Japan

4 economic growth of the country 6 24 4 16 5 20
2 purchasing power per capita 3 6 5 10 4 8
3 volume of imports 3 9 4 12 1 3
3 import growth 4 12 1 3 4 12
1 exports from spain 1 1 2 2 0 0
2 customs barriers 3 6 3 6 2 4
2 no duty barriers 3 6 3 6 2 4
0 business risks 0 0 0 0 0 0
1 ease of business 4 4 2 2 1 1
2 transparency and corruption 2 4 3 6 4 8
Total 72 63 56