Task back to top In this assessment, you will continue to use the country and focus organisation you worked on in Assessment 1. Here you will develop the next steps in their international marketing...

Market Entry Strategy
Marketing
Market Entry Strategy
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Contents
Introduction    3
Part 1    3
Objectives    3
Realistic market entry options for Billabong in India    4
Preferred option    6
Part 2    7
Segmentation, Marketing, and Positioning Strategies    7
Market Segmentation    7
Targeting    9
Positioning    11
Summary    12
Conclusion    12
References    14
Introduction
Aim
Compared to other countries, the Indian economy is growing rapidly and is showing flexibility during the global financial crisis. Today, the Indian market with a population of around 1 billion has become the centre of opportunity for foreign investors, who can see large-scale development and expansion opportunities clearly. Identifying the increasing demands is looking to major industries to market their services and products in India.
Billabong is an Australian sporting goods company. Billabong has experienced continues growth from last few years, which can also be attributed to innovation as well as to excellent customer service, now Billabong is becoming a most valued retailer for top-line sports equipments and surf wear.
Billabong is looking for its business expansion in Indian market. Therefore it is necessary for Billabong to learn about Indian market before entering and market entry options to market its products and services in Indian market. It is necessary to identify potential market segments (target markets) in India and consider how they might be serviced by Billabong. The strategic approach used to segment the market is also essential.
This report includes the realistic market entry options for Billabong in Indian market and reasons for adopting or discarding each one is also discussed in this report. Segmentation, target marketing, and positioning strategies for Billabong to set-up its business in Indian market is also discussed in this report.
Part 1
Market Entry Strategies
While the Indian consumers are eager to own international sports brands, India's huge population base has become an ideal market for international companies. For entering in the Indian market, Billabong must identify the targeted market and find a good partner to understand the local market furthermore there is a need to fully understand the procedural issues (Asda Chintakananda, 2011). Billabong investors should also explore several market options in India, including establishing subsidiary relationships and joint ventures with Indian companies. There are three different market entry strategies which Billabong will apply and they are direct exporting of sporting goods, licensing, and strategic alliance.
Direct Exporting
Direct exporting means selling directly into chosen market using company’s own resources. For exporting directly into the Indian market, Billabong must first select its resources. Once they establish a sales plan, they go to agents and distributors to further represent the market (Bridgman, 2013). Agents and distributors work together with Billabong to represent the company's interests. They became Billabong’s spokesperson, so agents and dealers chose the same way Billabong hired prominent employees. For direct export, Billabong should consider coming close to the Indian market at the regional level. Billabong will set up a sales office in Mumbai, New Delhi, Bangalore, Hyderabad, Ahmedabad, Chennai, Kolkata provides valuable local information furthermore advice and maintains good relations with local economic and business leaders. Many agents are mostly required to easily serve the country's geographic markets (Pao‐Lien Chen, 2017). Despite several benefits there are few cons of applying this strategy because the cost of doing direct export is extremely high. It involves a large initial expenditure or outlay before the profit begins to flow in. Direct exports involve a number of risks associated with credit, collections, financing, and refusal of goods.
Licensing
Licensing is a sophisticated arrangement where organizations transfer the rights to use product and service to some other firm. Licenses can be used for marketing or production. This is a specifically useful strategy if licensed buyers have a larger market share in the Indian market, the Billabong portal. Licenses can be used for marketing or production (Asda Chintakananda, 2011). Ability to understand different markets as well as strategies for the specific areas and income groups (target segment); Production of products based on targeted groups for initial acceptance; Integrate relevant areas in core business models through access to relevant networks; Close to market stability; Compulsory licensing and approval; proper understanding to import process. Proper documenting and understanding of the Indian importing process will ensure that the products are easily accessible to the Indian market. Despite this strategy provides several benefits for entry in a new market there are some major drawbacks of this strategy will have only a low control level and licensee may become a competitor, moreover licence period is generally limited (James R. Markusen, 2009)
Strategic alliance
Strategic alliance in the management field is a treaty between two or more companies that cooperate on specific business activities (Dimov, 2009). For strategic alliances Billabong must include the sharing of expertise and knowledge between the employees and must focus on the reduction of several risks and expenses in areas for example relationships with the suppliers moreover for the development of new technologies and products. Entering the Indian market is one of the most important plans for Billabong. A large number of new sporting goods are expected in the next five it will enter India in the year and intensify competition in the country's $30 billion sporting goods market. It is expected that by 2020, sales in India will not only lag behind China and the United States as well. Strategic alliances need Billabong to share profits and its resources, and mostly require companies to share some delicate information (Chintakananda, 2011). Sharing information about company’s data can be challenging if the trade secrets are involved. Agreements may be enforced to protect the trade secrets, but these agreements may only be in accordance with the parties' willingness to comply with the agreement or the court's...