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International marketing

Executive summary

Atlantic Boat Co. has been in the market for about 13 years now. It needs to expand its services and products in to the international market. It is promising that in future it will excel in the international market by using the opportunity of increased tourism technology in all islands. Being the first time for it to venture in the international market it is important fro it to start with Singapore due to capture its vast economic growth. It is a small company and it can take chances by exploring the opportunities of a fast developing country like Singapore. It will take with it its high customer relationship strategies together with the best management strategies to capture the increasing economic growth of Singapore.

Atlantic Boat Co. intends to supply its customers in Singapore with the most recent high-tech boats. The plan is to market the company’s products and services using the recent make of the boat known as ‘Sydney Yacht’. To be successful in the market, the report entails an intensive research on the kind of market strategies to use in Singapore. There is a clear description on how the company will survive due to the increasing economic growth of Singapore. In addition, Reynolds’s’ major aim is to continuously offer its customers with the best and innovative luxurious boat products.

Table of Contents

Executive summary. 2

Introduction. 4

Industry and company profile. 5

The product 5

Country profile. 6

Business environment 7

Economical considerations. 7

Social and cultural considerations. 8

Political considerations. 8

Legal consideration. 9

Technological issues. 9

Market Analysis. 10

Product 10

Place and distribution. 10

Price. 11

Promotion. 11

Target market and segmentation. 11

Positioning and competition. 12

Competitive advantage. 12

Why should the company distribute. 12

Available entry modes. 12

Export-based entry. 13

Overseas sales office. 13

Manufacturing-based entry. 13

Relationship-based entry. 13

Recommendations. 14

References. 15

Bibliography. 16

Appendix. 18

List of Figures

Figure 1              increase in exports

Figure 2              increase in profits

Introduction

International marketing entails a company’s ability to make known of its products world wide (Keegan, 2008, pp.45-67). Like all other companies, Atlantic Boat Co. is bound to face very many challenges as it tries to venture in to the international market. With such upcoming challenges, the company is supposed to have intensive knowledge of the marketing strategies that can be recognized internationally and within a local boundary (Keegan, 2008, pp.45-67). With this in mind, it will be able to sale its products to a diverse number of customers in Singapore. The identification of the business environment is important when one is planning to set up a company in another country. This will definitely reveal the availability of labor, raw materials, technology, customers and more so, the economic status. To add to this, the study of the business environment is able to reveal the laws of that particular area. It is important to know the labor laws and generally the trade laws as the company will need to export and import some goods in and out of Singapore.

Atlantic Boat Co. has been in the boat industry since 1995. It was started by a family by merging two companies; Duffy and Duffy Custom and Flye Point Corporation. Though Atlantic Boat Co. has been in the industry for only 13 years the two individual companies have been in it since 1970. Atlantic Boat Co. has built a name for itself by selling the best Down east built boats. More so, it produces the best yachts and hulls for both commercial and luxurious purposes. They are characterized by being able to withstand any weather as they are very strong. The company bases its commitment on building boats that its customers want and need. More so, it offers repair and after sale services. To diversify its services, it purchases old and used boats and turns them in to usable boats that can be re-purchased. Safety also comes first in building boats and Atlantic Boat Co. ensures that its boats have the best emergency products like first aid kits and safety materials like floating suits and emergency boats (Atlantic Boat, 2007).

Industry and company profile

Atlantic Boat Co. has increased its up capital in the past four years from $5 billion in 2004 to $16 billion in 2007. It imports some of its raw materials from Canada, South Africa, Japan and South Korea. In addition it also exports some of its products to Canada, South Africa, Japan and South Korea. The increase in profits for the past four years will enable it to set up a branch in Singapore to reduce the expenses of exporting while in the USA

 (Figure 1)                                                                          (Figure 2)

The product

The Sydney Yacht is meant to capture new customers in Singapore. It has unique features; it has a fiber glass floor and is fully furnished. It is built to serve all purposes like fishing, tourism, surfing, swimming and basking. It has a very strong engine of 320HP and can travel up to a speed of 32 Knots. As safety is kept first in our company, there are emergency swimming kits, first aid kits and a radio call that can be used when waves are very unstable. This product is unique as research reveals that there are no such multi purpose boats being built in Singapore. This means that we will have offered the tourism companies a differentiated product within the market thus selling a more than the competitors the company is bound to get in the country. The company needs to be more innovative as it is evident that its competitors will sooner or later produce the same kind of boat within the market. Thus it is the duty of the company to ensure continuous flow of unique boats like Sydney Yacht to keep our customers and attract more internationally (Atlantic Boat, 2007).

 Country profile

Singapore is an island that is near Malaysia too and it is one among the four true city states world wide. Since 1819, Singapore has been used as trading centre by businessmen. In addition the people of Singapore have experienced an increase in their living standard since it attained its independence. It has also experienced vast growth in its use in technology, industrialization and foreign direct investments. It is also among the five richest countries in the world. It is a democratic and cosmopolitan nation which makes it easier to put up a company. As it is a member of the United Nations, it follows the goals of maintaining peace and giving everyone an equal opportunity to develop economically, socially and politically. Since the company is interested in capturing tourism, then Singapore has been known to be the best stop for tourists every year. For example in 2006, its number of tourists totaled to about 9.7 million. The practice of free trade with the United States gives the company a bigger opportunity to have subsidized materials for constructing boats within the country (Uniquely Singapore, 2008).

Business environment

Economical considerations

Singapore has experienced a constant growth in the Gross National Product (GNP). It is one of the four tigers in terms of the economic growth in Asia. Its economy is highly market based whereby it relies on exporting manufactured goods. More so, it has developed its fields in biomedicine, mechanical and chemical engineering, petrol refineries and electronic machines. It has a very busy port compared to other ports world wide. It has a strong foundation of foreign trade as it is the fourth trading centre in the world. Its economy is also characterized by having the highest number of multi-national organization in the world. The government is very keen in ensuring that its economy is stable as when there was a recession globally on technological goods its GNP decreased by 2.2%. The government quickly formed a commission that suggested on new policies to be implemented and since then the GNP increased by 8.8% in 2006. The city state is also characterized by high labor availability as it allows employment of people from nay part of the world in blue-collar jobs (Uniquely Singapore, 2008).

Social and cultural considerations

Culture can be defined as a way of life or the people’s beliefs in commanding their everyday life. Culture determines the lifestyle of a particular group of people or members of one society. Thus culture will definitely affect the marketing strategies of firms as it will command on the type of product a company is supposed to sell. Moreover, culture commands the taste and preference of the people (Starkey, 2001, section 1&4).

As mentioned previously, Singapore is a cosmopolitan city state allowing all kinds of people to live in it. The native people are from ethnic Malay. There are a number of Chinese, Indians and Arabs though. The city state allows for any one to freely practice their culture creating a business environment that can capture all kinds of people without relying on one particular culture (Uniquely Singapore, 2008).

Political considerations

For any business to grow within an economy there needs to be political stability within a country (George, pp. 1027–1055). The country is highly democratic as it allows its citizens to elect the leaders of their choice. It uses some of the Western values in setting the political entity by having a parliament. The government plays a major role in ensuring that political rivals do not go to the extent of violence by imposing the law against freedom of speech. It argues that people’s words need to be controlled to prevent them from enticing people to fight. Political stability will definitely be an adequate environment for the company to set up its business as it has a potential of growing by preventing civil wars that are a major set back in the economy as they destroy firms. The company can withstand the law against freedom of speech because it will not influence the political entity of the country.

Legal consideration

Most of its laws follow the British system since it was its colony but it does have some disadvantages like refuting some liberal values. It does not allow the freedom of speech as it tries to protect people from fighting against each other due the many races it has within its boundaries. The punishments are quite severe as one can be canned or given a huge fine to pay due breaking of the law. The country practices capital punishment for intense crimes like murder and drug trafficking. More so, it does not allow the jury to make legal decisions. Though the laws seem very difficult, it is evident that to fall in the trap of committing such crimes like drug trafficking is very difficult regarding the type of business the company is carrying out. The labor laws follow the international laws but for people who come from other countries need to have a working permit for them to pay taxes effectively. A company can be sued due to employing people who do not have the valid identity cards of the country. It is the company’s duty to ensure that its employees pay full taxes. Since the company has managed the labor laws of America, it is very possible for it to survive within the labor laws context of Singapore (Uniquely Singapore, 2008).

Technological issues

Singapore is one of the developed countries that have specialized in exporting manufactured goods. It uses the current technology in all its industries. It will be easy to purchase materials for construction of boats like metal, wood and other things. It is known for its high technology in electronics thus advantageous for the company. More so, it has a well established transport and communication system thus easy for the mother company and the sub branch in Singapore to communicate effectively.  The fact that it is abundant in technology, it means that the company will have cheaper production costs thus being able to produce more to meet the demands not only in Singapore and America but world wide (Uniquely Singapore, 2008).

Market Analysis

Product

There is no business if a company does not identify the product or service it needs to carry out (Saavedra, pp. 295-305). Like all other companies, Atlantic Boat Co. has identified its products. It has produced the best and strong forms of boats and yachts. Alongside producing boats it performs other services like after sales service, repairing boats, re-purchasing boats and constructing boats that customers wish to have. The Sydney Yacht is meant to capture the high tech oriented people of Singapore. Because they are used to the usual makes of boats and yachts, they need something different and that it ‘The Sydney Yacht’ (Saavedra, pp. 295-305).

Place and distribution

The offices of the Atlantic Boat Co. needs to be set in the mainland Singapore as it is one of the 63 islands in Singapore. The island is very busy and it is the most visited by tourists. More so, most citizens visit it frequently if they need to purchase some things. For this reason, the company will be in a position to capture very many customers before it establishes it self in other islands (Saavedra, pp. 295-305). Mainland Singapore will be the central distributing place to other islands.

Price

The suggested price of the Sydney Yacht will be between S$200 and S$ 300. This will depend on the size of the boat. If a company needs a larger size, then it means that it has to be more expensive. The marketing price will be cheaper that is around S$180. This will be carried out for about one month to attract customers.

Promotion

For a company to be successful it needs to ensure that its customers have knowledge of the products it is selling to them (Gibb, pp. 281-293). Since Singapore is well established in transport and communication, the company will first advertise its sale of product in Singapore in its website. More so, send the marketing representatives to ensure that the company is well advertised by setting advertisements on billboards, television and radio stations. In addition, it will be evident to advertise them in hotels and restaurants as they keep many tourists and some would like to own their own boats for their customers.

Target market and segmentation

It is important for a company to know its customers so as to reach then easily (Lavigna, pp. 46-48). Tourists, hotels, restaurants and individuals who own beach houses are the target of the company. The market is very much available.

 Positioning and competition

Atlantic Boat Co. will be stationed in the mainland Singapore Island as it is the one that has the most people. Form there, it will open sub-branches in the other 62 islands. This will enable it to sell and offer services to its diversely distributed customers around Singapore (Uniquely Singapore, 2008).

Competitive advantage

Atlantic Boat Co. has a competitive advantage to other boat companies in Singapore as it will be the only one offering luxurious boats. Most of the boat companies are directed to producing boats for local and business use only. The company will venture the Singapore boat industry from another direction.

Why should the company distribute

Atlantic Boat Co. has many reasons for it to venture in to the market of Singapore. As discussed, it will be able to have a competitive advantage as it will be the only boat company that will be offering luxurious boats in Singapore. More so, there is available labor and machinery for the production of boats in the area. More so, it is very easy to market products in Singapore as it has the best and stable transport and communication system.

Available entry modes

Atlantic Boat Co. has a variety of entry modes to choose from in its goal to venture in the market of Singapore. It needs t choose the only one possible whereby it will reduce its production costs and increase its profit margin (Carmazzi, 2005).

Export-based entry

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This strategy will not be applicable with the company as it will be more expensive to export boats from America to Singapore. More so, the products can easily be damaged due to transportation. It is much better to set up a construction firm in Singapore (Carmazzi, 2005).

Overseas sales office

An overseas sales office will be set by the company before it moves its office to Singapore. This is so because the company needs to be known before it is set up so that when it is set up, customers can come to purchase boats immediately (Carmazzi, 2005).

Manufacturing-based entry

Since the company plans to set a construction firm in Singapore, it is important if it uses the manufacturing-based entry. This is so because there is availability of raw materials at a very cheap price; technology is current thus making the production costs to be very low (Carmazzi, 2005).

Relationship-based entry

For a company to succeed, it is important for it to build good relationship with other manufacturing companies and its customers. It is a duty to attract customers but very difficult to maintain them. The company has seen the need to form contracts with some hotels and restaurants in either fully purchasing or renting boats. This will enable it to expand how it offers its services and products. More so, there will be need to merge with some boat companies in order to expand (Carmazzi, 2005).

Recommendations

Atlantic Boat Co. is a well known American boat company that produces the best boats for its clients. It is customer oriented as it is based on producing boats that fulfill the needs and wants of its customers. The only way to have the best customer relationship is by having the best management strategies. This is so making sure that its employees are well trained thus competent enough. More so, it ensures that its employees are paid well. The motivation of employees is the secret to ensuring that customers get the best services. In addition, it is entitled to carry out intensive research before it ventures in another market (Goodman, chapter 4&9).

References

Atlantic Boat, 2007: the profile of the Atlantic Boat Co., retrieved from http://www.atlanticboat.com, on 16th January 2009.

Carmazzi A., 2005. The Directive Communication Leadership Field Manual- Singapore- Veritas Publishing.

George J.M., 2000. Emotions and leadership- The role of emotional intelligence- Human Relations.vol.53 pp. 1027–1055?.

Gibb S., 2003: Line Manager Involvement in Learning and Development; small beer or big deal? Employee Relations: Vol. 25, No.3, pp. 281-293.

Goodman, Fandt, Michlitsh, Lewis, 2007. Management, Challenges for Tomorrow’s Leaders: Thomson South-Western. Chapter 4 &9.

Lavigna, B., 2005: Winning the War for Talent; Government Finance Review: pp. 46-48.

Saavedra R., 2005. The contagious leader: Impact of the leader’s mood on the mood of group members, group affective tone, and group processes-Journal of Applied Psychology. vol., 90(2): pp. 295-305.

Keegan, W. J. and Green, M. C., 2008. Non-cultural and cultural factors in marketing: Global Marketing 5/e International Edition, by Pearson Prentice Hall. Pp. 45-67.

Starkey, R. and Welford, R., 2001. The Earthscan Reader in Business and Sustainable Development, Earthscan. Section 1 and 4.

Uniquely Singapore, 2008. The history of Singapore, retrieved from, http://www.visitsingapore.com, on 13th January 2009.

Bibliography

George J.M., 2000. Emotions and leadership- The role of emotional intelligence- Human Relations.vol.53 pp. 1027–1055?.

Gibb S., 2003: Line Manager Involvement in Learning and Development; small beer or big deal? Employee Relations: Vol. 25, No.3, pp. 281-293.

Goodman, Fandt, Michlitsh, Lewis, 2007. Management, Challenges for Tomorrow’s Leaders: Thomson South-Western. Chapter 4 &9.

Lavigna, B., 2005: Winning the War for Talent; Government Finance Review: pp. 46-48.

Keegan, W. J. and Green, M. C., 2008. Non-cultural and cultural factors in marketing: Global Marketing 5/e International Edition, by Pearson Prentice Hall. Pp. 45-67.

Starkey, R. and Welford, R., 2001. The Earthscan Reader in Business and Sustainable Development, Earthscan. Section 1 and 4.

Saavedra R., 2005. The contagious leader: Impact of the leader’s mood on the mood of group members, group affective tone, and group processes-Journal of Applied Psychology. vol., 90(2): pp. 295-305.

Appendix

 A copy of one of the ancient boats, sources; Atlantic Boat, 2007

http://www.atlanticboat.com

The port of Singapore

Sources; Uniquely Singapore, 2008 http://www.visitsingapore.com

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