Factors That Lead to Efficient Export Managing and Marketing Planning - Research Proposal Example

Research Proposal "An investigation into key success factors that lead to efficient export managing and marketing planning" The case: "Exportingof Artisan Sheep Cheese from FYROM to US market- APPRAISAL AND OUTLOOKS". EXECUTIVE MBA -COHORT 13A (2nd year) ACADEMIC YEAR 2006-2007 Submitted by Predrag Cvetkovic Contents pages Abstract.................................................................................................................3 Introduction..........................................................................................................4 Objectives..............................................................................................................5 Literature review..................................................................................................6 Methodology.........................................................................................................8 Expected Outcomes..............................................................................................................9 References..........................................................................................................11 Title: The aim and objective of this study is to determine whether the exporting of Macedonian cheese would prove to be beneficial for the firms producing cheese and also for the over all dairy sector Abstract: This work is an attempt to research possibilities and find key success factors for expanding export in FYROM's Dairy industry. Therefore with analyzing the current situation in Dairy and founding and applying further hypotheses we can have a business proposal concerning profit on a long term track. The over riding aim of this case study is to evaluate and judge whether there would exist a 'triple win situation' where the producers, the farmers and the states own agro-dairy farming is given a boost by a deeper penetration of products into the U.S market. Description in promotion and internalization" of Sheep artisan cheese as a "Niche original product" is based on less import limitations of USFDA in such Diary products. Also, an environmental analysis of the Importer of Artisan cheeses on US Diary market (competitors) will be explored through available official data base from State resources, National Chambers and Foundations as ought to relevant publications. Therefore this "Paper" would try with theoretical conclusion to find out the most acceptable marketing strategy as a part of export management to increase import of FYROM's Artisan Cheese to the USA. Introduction The current market status of the firm would be checked and a thorough screening shall be done for any potential that there exists for the firm to penetrate deeper into the U.S economy because this is the strategic goal of the countries consortium. This goal was also supported by the U.S because it was in their long term interest that the farming sector be given a boost and also some NGO's came forward to support the cause but these NGO's were heavily funded by the USAID. Although the first shipment (2004) was very figurative it was a sign that still a small country as FYROM is, can be able to develop export on a very specific, but for the country, agro-industrial important segment. Also, aware of the experience of our neighbors, (Greece and Bulgaria) it was an argument for an opportunity to have and outcome in export for the traditional part of agribusiness of the country. The "case" will include a presentation of a theory how a consortium can go "international" if it apply a good marketing plan and export managing strategy. After the presentation of US Sheep cheese market (condition and circumstances), we will introduce the profile of the Consortium (each member separately).We will research their possibilities as a consortium in sheep cheese production, according to the special US safety food standards. Therefore with marketing plan and strategy as a key factor (achieving internalization and Branding) it will increase demand for the Macedonian sheep cheese in long term perspective. (PUT A POINT ON A DEMAND AS A MAIN OBJECTIVE) A diagram such as the one shown above would have to be made in order to truly understand what the demand structure of the macedonian cheese is in the united states and obviously to construct such a diagram many things would have to be taken into consideration and these things are discussed later on. The previous information collected on the export of cheese to the U.S market would be extremely beneficial because it would point out mistakes and also it would play a critical role while conducting a SWOT analysis of the export of Macedonian cheese into the US market and this SWOT analysis would be conducted keeping the competitors country in mind.. Finally, proposed strategies that Consortium should follow as "key factors" are given in order to become resistible on US market, and are also essential for further export. Objectives, further researches will be based on the following: Following the Case there will be consideration on the following research objectives: Confirmation of relevant demand in FYROM's Artisan sheep cheese with consistent supply. While analyzing the market for the cheese in USA the supply should also be kept in mind because it would be very unwise to not consider the capacity to supply while determining the demand. However, deciding and finding a foreign market with the demand to enter depend on motives (proactive and reactive) for starting the export. They are attempt in: - Triggers to initiate the export - Competitiveness - Analyzing market potential. - Evaluating company sales potential - Market expansion strategies: Incremental versus simultaneous entry - Barrier and risks (potential and obvious) Implementation and developing of export marketing (based on demand on the US market) plan as an essential factor to succeed with Implementing and coordinating the "international marketing" through: - Pin Pointing of Potential Market. - Product decisions - Pricing decisions and market conditions of conducting business - Distribution decisions (international retailing) -International (cross-cultural) sales negotiations - Communication decisions (promotion strategies) - International business ethics -Development of the global marketing plan including budgeting - hiring people that would deliver - have a strong HR department Literature review: Export development has been highly regarded by both public and corporate policy-makers, due mainly to the substantial macroeconomic and microeconomic benefits derived from external trade. From a macroeconomic perspective, exporting can enable national economies to enrich their foreign exchange reserves, provide employment, create backward and forward linkages, and, ultimately, lead to a higher standard of living (Czinkota, Rivoli and Ronkainen 1992). In microeconomic terms, exporting can give individual firms a competitive advantage, improve their financial position, increase capacity utilization, and raise technological standards (Terpstra and Sarathy 1994). These theories have been very useful in foreign trade comparison and can also be used in the study of export of Macedonian cheese to the United states of America. In light of these benefits, and to better understand the phenomenon of export trade, a platform of scholarly contributions has been constructed. Pioneers in this field were economists, who proposed several theories on the engagement of nations in foreign trade. The most commonly cited international trade theories are those of absolute advantage (Smith 1776), comparative advantage (Ricardo 1817), factor endowment (Olin 1933; Heckscher 1950), demand similarity (tinder 1961), and product life cycle (Vernon 1966; Wells 1968). Although these theories are useful for the analysis of broad issues pertaining to international trade, their value is limited insofar as they can only partially explain the export behavior of individual business units (Wells 1968; Bilkey 1978; Cannon 1980). Because of the limited scope of economic theories, many researchers adopted a more microscopic approach. Their studies produced a number of models that conceptualized the process by which individual firms initiated, developed and sustained their involvement in exporting (Hear and Ortiz-Buonafina 1995). These models focused not only on the economic rationale of the export development process, as do international trade theories, but instead concentrated on firm-specific aspects of behavior related to trade (Albaum, Strandskov, Duerr, and Dowd 1994). However, despite considerable research, no comprehensive or widely accepted theory has yet emerged that explains the firm's export expansion behavior, due to its multidimensional, complex and dynamic nature (Dichtl, Leibold, Koglmayr, and Muller 1984). It is necessary, therefore, to develop beyond the present phase of identification and conceptualization to the advanced levels of assimilation and integration (Albaum and Peterson 1984; Andersen 1993). Specifically, there is a need to take the following courses of action: to consolidate extant empirical knowledge on export development models, which is currently characterized by fragmented, uncoordinated and spasmodic efforts to synthesize a general theory;(1) to study the structural, methodological and conceptual aspects of this research, and identify gaps that restrain its development; to evaluate the theoretical and practical usefulness of current research to various interested parties; and, finally, to establish whether the existing models adequately explain the firm's export expansion behavior. In response to this, an attempt is made here to provide an integrative review of the current empirical models that have been proposed over time for the purpose of explaining the export development process. However when company make a decision to enter globally, specific research should be based on originate demand of the chosen country (region). Thus, to find out the best mode of entry is a big issue for any company. Objective researches by demand can be precedent in decreeing of Companies importing policy regarding in convenience of their products ( especially in order to become familiar with customer requirements and competition).With this "in mind" the company will consider its product and service innovation in connection with further product development (Bradely, 1991). After good preparation based on "demand resurch" and solved requirements for standardized product, needful part for good perspective of export manage is an outstanding Marketing Plan. Such Marketing plan for export should be in accordance of definition and action in managerial goals of the company's vision (Kotler, 1972).This action and plan is often to be concerned with identifying that with lower costs in creation of value and "different product" with offering of premium design, quality and service (Hill, 2001). Marketing plan is an outline of a company and its strategy to market its goods. With this "actions" marketing is taking an influence on the customers to buy in accordance of company's offer (Ames, 1970). It includes concept, advertising, sale, pricing, promotion, and distribution. The core vision and vision of the company's goals is further communication based in marketing strategy (Buzzel, 1963). According to (Bush and Grant, 1994) effective marketing plan should contain the following elements: -Vision of the company - mission statement of the company -Specification of the Market environment, including market trends, competitors, barriers and future trends - products should be very clearly defined or in economic terms very narrowly defined so that there is a brand image and people can differentiate it from other products. - The Strategy should be defined in accordance to the 4P's of marketing i.e. product, price, place and promotion, the way these are used and the way the product is launched is detrimental in its success. -The implementation of the 4P's shall be done in accordance with the action plan that has been decided upon and this should lead to a future where there is certainty and even then proper procedures should be followed. - Measurement and evaluation will show the results of utilization and efficiency of exploring the marketing strategy Methodology: The research method used in this paper would judge the effectiveness of the penetration of the Macedonian cheese into the US market.. With previous exploration of the Sector profile concerning the Consortium members, the core of further methodology will be done trough SWOT analysis of the Macedonian Sheep cheese. In order to find out an essential condition for the Market opportunity (to maximize) or a threat (to minimize), the SWOT analyze should be the "key succes requirement factor" in the target market for the Macedonian Artisan sheep cheese. The method will be adequate since US Sheep cheese markets have been explored, and it will address the study by itself where SWOT analysis will be crucial for tracking trends and further market strategy and development. Therefore in a very clear way SWOT analysis must give a solution and conclusion for the product in accordance with constantly changing environment. The US cheese market (in general and Artisan cheese market as separate) will be explored in accordance to valid resource. Following a SWOT analysis the reader should have an objective opinion and evaluation of internal strengths and weakness of the Macedonian sheep cheese based on business needs. Therefore we will have a clear addressing to the subject (Macedonian Sheep Cheese) with "linking the material and the subject" which will be explored in the study. Expected outcomes: In order to find out important steps for FYROM's Dairy companies according to further applied export strategy we are expected to find out the "right course" which will affect not only the Diary sector but also, on the whole, Macedonian economy which are desired tasks, both, for the Government and involved Foreign NGO's. This study identifies the key factors influencing the marketing performance of export ventures in the US. It considers a comprehensive set of potential determinants of export marketing performance and the unit of analysis is the individual product-market export venture. 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