The paper “ Promotions Campaign for a Zingo - Product to Be Launched in a Foreign Market" is a cogent example of a case study on marketing. Today, with the rapid globalization process the Free Trade is increasing and some of the economies, which were closed in the past decade have opened up for foreign goods as well as foreign direct investments. These developments in the world market are producing extremely attractive business opportunities in terms of new and emerging markets in countries such as India, China, Brazil, and Russia.
With rapidly growing GDP figures and increasing disposable incomes, countries such as India is now among the top priorities in international expansion plans of companies seeking to launch their products into foreign markets. This marketing plan covers the planned launch of Zingo Instant Noodles manufactured by NutriFoods Company Ltd, (NFCL) in the Indian market. The company is the market leader in the pasta and spaghetti categories and Zingo is currently number two in the UK and a host of other European markets, closely behind the market leader Blue Dragon 3 Minute Noodles.
The product retails at £ 0.35 per pack in the UK. The current UK sales are 7 million packets per month while the international sales are over 17 million packets per month, with over 8 million packs being sold in Vietnam with local production operations. Host Country Environmental AnalysisIndia today is one of the most attractive markets with its vast population accounting for over one-sixth of the human race. Having practiced closed economic policies until the late 1980,s the country embraced open economic policies in the 1990s and has steadily gained prominence in the global market place with its large market size as well as production capacities (Hill 2003).
Following an Environmental scan uses PEST analysis to profile the host country market conditions which will allow identifying the opportunities and threats as well as the compatible organizational strengths which will allow exploiting such opportunities. It will also allow the company to identify internal weaknesses that need to be strengthened to counter threats from the environment as well as optimize the opportunities. 2.1Political FactorsAlthough Indian society traditionally took a nationalistic stance towards foreign imports and foreign investments, the trends have reversed today.
The open economic policies and relaxed FDI policies have encouraged import of goods as well as establishing foreign businesses in the form of joint ventures. However, bureaucratic red tape still surrounds the import-export regulations, foreign exchange policies as well as customs procedures. One of the key business risks lies in political instability. Nutri Foods has born these factors in mind when deciding on the mode of entry to the market and has selected a joint venture partnership option with one of the major consumer food product distributor – Partel Group Ltd. 2.2Economic FactorsAlthough India’ s population of over 1 billion people offers a vast market, an estimated 73% of these people live in rural areas and within close parity to the poverty line which makes this market a high price-sensitive market (Doing Business in India 2006).
However “ there is a growing middle class, with numbers varying between 150 million and 400 million, depending upon how "middle class" is defined” (Shelton 2002). With over 8.5% growth rate sustained across the past couple of years, the Indian economy is booming and the impact is favorable on the improving living standards of the people.
Small pack sizes are common in the Indian market to meet low levels of disposable spending power.