lecture 1-introduction & nature

8/6/2019 Lecture 1-Introduction & Nature

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Neha KotechaNeha Kotecha


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1. Introduction to International Marketing, Nature ofInternational Marketing

2. International Marketing Environment Cultural

Political

Legal

Consumer Behavior

3. Entry Strategies for entering InternationalMarkets

4. International Marketing Research

5. Major Decisions in International Marketing


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5. Major Decisions in International Marketing

Product Strategies Pricing Strategies

Place (Distribution) Strategies

Promotion Strategies

6. Export Management Export Procedures

Pre-Shipment Documentation

Terms of Payment


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` Define international marketing

` Levels of International Marketing

` Firm-specific drivers

that direct firms toward international markets.` International Marketing Challenges

` EPRG Concept

` Process of Internationalization


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I. Identifying needs and wants of customers ininternational markets

II. Taking marketing mix decisions related to

product, price, distribution and communicationIII. Penetrating into international markets using

various modes of entry

IV. Taking decision in view of dynamic international

marketing environment.


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Domestic Company

Export Marketing Company

International MarketingCompany

Global Marketing Company


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DomesticMarketing

ExportMarketing

InternationalMarketing

GlobalMarketing

Leastinternational

commitment

Domesticfocus

Limitedinternational

commitment

Involvesdirect orindirect export

Ethnocentric

Substantialinternational

commitment

Focus onindividualcountries orregions

Polycentric orRegiocentric

Extensiveinternational

commitment

Focus onsegments,rather thancountries or

regions

Geocentric


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` Domestic strategies, techniques, and personnel areperceived as superior

` Export marketing considered as extension of domesticmarketing.

` International markets regarded as

outlets for surplus domestic production

` Goods manufactured in home base

` International marketing plans

developed in-house by international division


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` Focuses on importance and uniqueness ofeach international market

` May establish businesses in each target country

` Decentralized, minimal coordination withheadquarters

` Marketing strategies = specific to each country

` Result: duplicated functions


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` Firm treats a region as a uniform marketsegment and adapts a similar marketingstrategy within the region.

` World regions that share economic, political, and/or cultural traits

areperceived as distinct markets

` Regional offices coordinate marketing activities


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` world is perceived as a total market

` Integrated marketing strategies aimed at market segments,

rather than geographic locations` Provides standardized product or service

throughout the world


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` Push Factors Constraints in the home market pushing the firm to seek

overseas markets

` Pull factors The appeal of markets abroad


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` Saturation in the home market

` Extend the product life cycle

` Level out seasonal fluctuations in demand

` Reduce dependence on home market` Intense competition in home market

` Economic problems in home market

` Make use of excess capacity

` Excessive regulation in the home market

` Spread risks


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` Exploit a business opportunity

` Growth potential in overseas market

` Overseas market currently under supplied

` Low degree of competition abroad` Exploitation of a new market segment

` Benefit from economies of scale-reduction in unitcosts


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` Growth prospects

` Elimination of a constraint imposed by recessionor saturation at home

` Economies of scale to reduce unit costs` Use of spare capacity

` Development of new markets

` Spreading of risks


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` Social differences culture, religion, language,literacy. Role of women, tastes

` Economic differences-living standards, taxation,inflation, exchange rates.

` Trade Barriers` Political Differences- degree of political stability` Legal differences-safety, product standards,

environmental issues, advertising` Increased transport, distribution and

communication costs


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` Remoteness from customers

` Transport costs

` Economic differences

` Business relationships and practices` Need for local expertise

` Use of different currencies

` Exchange rates-transaction costs associated with

currency exchange` Risks associated with currency movements


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` Decline in trade barriers

` Removal of restrictions on foreign investments

` Technological Change particularly developments

in communication, information and transportationtechnologies


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` 1961: Ranbaxy Laboratories Limited was registered inIndia

` 1962: Began manufacturing formulations

` 1975: Formulated its export strategy

` 1977: Ranbaxy had its first international joint venture inLagos (Nigeria)

` 1988: Ranbaxys Toansa plant got US Food and DrugAuthority (FDA) approval

` 1990: Ranbaxy was granted a patent for Doxycyline inthe US.


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` Ranbaxy repositioned itself in 1992 to gear up forinternationalization

` Brought a change in the exports mindset.

` Focused and rapid expansion into foreign countries.

` Focused on research to leverage in the era of worldwideintellectual property rights


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` Serious about its image as an international player andfought hard against the stigma attached to Indian firms

` 1992: Entered into an agreement with Eli Lilly & Co forstrategic alliance in India, to market select the latters

products` 1993: Joint venture was set up in China and was called

Ranbaxy (Guangzhou China ) Limited

` 1994: Established its Regional Headquarters in London

(UK) and Raleigh (USA)


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` 1995: Acquired Ohm Laboratories & state of the art newmanufacturing site at Ranbaxys US subsidiary startedfunctioning.

` 1999: Bayer AG, Germany and Ranbaxy signed an

agreement for an International Strategic Alliance, Bayer obtained exclusive development and worldwide marketing

rights to oral once daily formulation of Ciprofloxacin, developed byRanbaxy.

Ranbaxys strategy was to market its products globally through

this alliance.


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` 2000: Ranbaxy acquired Bayers Generics business inGermany

` 2000: Forayed into Brazil, achieved global sales of US $2.5 million

` 2001: Set up of a new manufacturing facility with aninvestment of US $ 10 million in Vietnam (Green FieldVenture)

` 2001: Ranbaxy USA crossed sales of US $ 100 million

becoming the fastest growing company in the US


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` 2003: Ranbaxy and GSK accelerated entered into a globalalliance for drug discovery and development

` 2004: Ranbaxy began operations in France as a genericcompany after acquiring a wholly owned subsidiary RPG(Aventis)

` 2005: Ranbaxys anti-malarial molecule successfullycompleted POC Phase II studies, launched in Canada.

` 2005: Ranbaxys joint venture with Nippon Chemiphar inJapan (Nihon Pharmaceutical Industry Limited) launchedVogseal for diabeties, the first product of the joint venture.

` 2005: Acquired the generic product portfolio from EFARMESof Spain ( 18 drugs for sale in Spain)


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` Aggressive overseas acquisition strategy for expansion

` 2006: Ranbaxys US arm bought patents, trademarksand automated manufacturing equipment from Senetek

` 2006: Ranbaxys Italian subsidiary acquired theunbranded generic business of Allen, a division ofGlaxoSmithKline, to complement its own pipeline for theItalian market

` 2006: Terapia acquisition created Romanias largest

generics firm


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` Ranbaxy has manufacturing operations in morethan a dozen countries

` Products are available in over 125 countries.

` Expanding international portfolio of alliances, jointventures and representative offices across theglobe USA, Japan, China, Mexico, Canada, Brazil and SouthAfrica.

Presence in 22 of the 25 European Union countries ,including Germany, France, Italy, UK and Spain.


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` 1984: Company was set up by Dr. Anji Reddy in India

` 1986: Dr. Reddys entered international markets withexports of Methyldopa

` 1987: It obtained its first USFDA approval

` 1990: Exported Norfloxacin and Ciprofloxacin to Europeand the Far East

` 1991: Commenced formulation exports to Russia

` 1995: DRL established a joint venture in Russia

` 1999: Acquired 45 percent stake in American RemediesLimited.


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` 2000: Reddy US Therapeutics , a wholly ownedsubsidiary, was established in Atlantia, USA, to conductdrug discovery

` With its merger with Cheminor Drugs Limited (CDL) and

with its acquisition of American Remedies Limited (ARL),the company became Indias third largestpharmaceutical company

` Commenced operation in China by establishing JointVenture

` 2002 DRL conducted its first overseas acquisition- BMSLaboratories Limited and Meridian Healthcare in UKNordisk


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` Geographic mix: domestic operations (36%) and internationaloperations (64%) North America largest market (41 percent of international sales of the

company) Europe (22 percent),

Russia and (CIS) countries (18 %) Others (19 percent)

` Product mix: APIs accounted for (38 %)

` Therapeutic mix: 75 percent of branded formulation salesderive from gastrointestinal, cardiovascular, anti-infectives,

pain management and nutrients segment.` US generic market: currently marketing over 20 products.


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` Agreement with Merck (Strategic Alliance): Distributeand sell generic versions of Proscar and Zocor inIndia, become an authorized generics manufacture fora multinational.

` Bioignal Ltd Australia(Strategic Alliance): Developmass manufacturing processes for furanone,

` Acquisition: DRL acquired Roches ActivePharmaceutical Ingredients (API) business, mexico

` Symbolic, New Zealand (Strategic Alliance) :

Marketing its nutritional and immune boosters in India.


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lecture 1-introduction & nature

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