Bonanza Group of FINAL
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Transcript of Bonanza Group of FINAL
LAUNCHING OF BONANZA IN RUSSIA
Project of International Marketing
Group members
Ch. Javed Iqbal Aish
Abdul Basit
Salman Ali
Umair Ahmed Shahid
Usama Tariq
Bonanza Group of Industries Pvt. Ltd
Established in 1976 Primarily, Bonanza deals in men’s
collection February 2011 Bonanza launched its first
designer series for women High quality, High price House of Bonanza outlet to pick up
readymade garments Absolutely world class
DESIGNING OF 4 P’S OF MARKETING FOR INTERNATIONAL
MUSICAL CONCERT
Project of International Marketing
Group members
Ch. Javed Iqbal Aish
Muhammad Rashid Khan
Yasir Fawad
Usama Tariq
Bonanza in Russian market
The main focus of our project is on the “Winter Wears” of Bonanza.
We are targeting the Russian market
INTERNATIONAL MARKETING ENVIRONMENT
Economic system GDP (2010): $1.477 trillion. Per capita (2011): $16,840 Growth rate (2011): 4%.
Economic Exposure Natural Resources(Petroleum, natural gas,
timber, furs) Agriculture Resources(Grain, sugar beets,
sunflower seeds, meat, Dairy products) Industries(coal, oil, gas, chemicals, metals)
INTERNATIONAL TRADE ENVIRONMENT
The U.S. and Russia concluded a bilateral WTO accession agreement in late 2006
Barriers with respect to imports Non-tariff barriers are frequently used to
restrict foreign access to the marketTrade
Exports: $376.7 billion
(Netherlands 12.3%, Italy 8.6%, Germany 8.4%)
Imports: $191.8 billion
(Germany 13.9%, China 9.7%, Ukraine 7%)
Social and Cultural Environment
Ethnic groups: Russian 79.8% Tatar 3.8%
Religion: Russian Orthodox Islam Judaism Other.
Language: Russian (official); 140 other languages and dialects.
Cont.
Work force: Services--58.1%, Industry--31.9%, Agriculture--10%.
The Russian Family Dependent upon all its members Most families live in small apartments Most families are small, often with only one
child Most women work outside of the house in
addition to bearing sole responsibility
The Political, Legal, and Regulatory Environments of Global Marketing
POLITICAL SYSTEM The political system established in1993 It has a stable political environment
Commercial Law Russia has a body of conflicting,
overlapping and rapidly changing Negotiations and contracts from
commercial transactions are complex
APPROACHING GLOBAL MARKETS
Market Research Purchasing power of Russia's various consumer
segments has increased Promotion and advertising of international
brands has increased Competition between local brands and
international brands is increased. Currently, some 37 percent of spending takes
place at small, multipurpose grocery stores Moscow considered having relatively high
business development potential than other areas
Segmentation, Targeting and Positioning
Our focus is on segmentation based on consumption habits, rather than on traditional
Three most promising groups for entering the market:
1. Spontaneous2. Ambitious 3. Innovators
Our target market(Innovators)
The share of these consumers in Russia as a whole in 2010 was only 15 percent, but relatively large in Moscow, constituting 18 percent
Higher purchasing power than average Under 30 years old business people and white-collar employees They live in major cities They prefer to spend their free time involved
in sports activities and "active" leisure
Import Regulations - Russia
Customs duties and charges: Duties to most goods, Ranging from 5 % to 20% of goods'
customs value For customs valuation it follows GATT/WTO principles Duties are paid in Russian roubles (RUB) or hard currency, Shippers Export Declaration (SED) Imports are subject to a customs 0.15% of the value of
goods. Excise taxes, at rates ranging from 20% to over 570%, are
applied to some goods, such as alcohol Most imports are subject to a value-added tax (VAT) of
18% Russia allows temporary entry of goods for a period up to
two years
Certification
Certification and standards organizations in Russia include:
Federal Agency for Technical Regulation and Metrology (commonly referred to as Gosstandart): (in Russian, some information in English)
Russian Research Institute of Classification, Terminology, and Information on Standardization and Quality of Gosstandart ("VNIIKI") (enquiry point for Russian standards) (in Russian, some information in English)
Russian Research Institute for Standardization of Gosstandart ("VNIIS") (provider of certification services) (in Russian)
Russian Centre for Testing and Certification ("Rostest") (provider of certification services) (in Russian)
THE INTERNATIONAL MARKETING MIX
Product Type“Winter Wears of Bonanza”.
Brand“Bonanza”,
International products and Brands winter wears prêt collections
PlacesEastern &Western EuropeAfricaNorth &South America
Cont.
Packaging: Paper Box imprinted by Bonanza’s logo., different sizes and weights
Labeling: tags on plastic bags and paper boxes also.
Product Warranties: In Russian Market the warranty of garments is for six months
Pricing objectives and strategies: skimming pricing Strategy to provide the high quality to our customers.
Environmental influences on pricing decisions: normally cold during the year which helps us to sell our product easily.
Marketing channels and physical distribution
Distribution channels structure: e strategic alliance with the distributors already working there. T
agreement with the Wall Mart, K-Mart and Seven Eleven retail
Supply chains: supply of our product will be low
Marketing communications decisions
Advertising and public relations: TV ads Magazines Newspapers Internet Billboards Fashion Shows
Sales promotion: Discounts to distributors on their sales above the certain level. Buy one get one free or can be a 25-35% off on the purchase. coupon option for the customers.
Special forms of marketing communications:Email about new offerings and such information will be given
directly to the end users.