Egyptian Margic Cream Marketing Plan for Exporting to Thailand

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  • Topic: Thailand, Bangkok, Thai people
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  • Published : April 18, 2012
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MKTG 1061 – GLOBAL MARKETING

EGYPTIAN MARGIC CREAM
MARKETING PLAN FOR EXPORTING TO THAILAND

Executive Summary

The purpose of this report is to present a marketing plan for Egyptian Magic Cream Limited Liability Company about the opportunities in Thailand for their product; the Egyptian Magic Cream (EMC). It is an all purpose skin care product that made by 100% natural ingredients. EMC Company is a successful U.S based company that manufactures and wholesales their product to organic retailers and pharmacy across U.S and Canada. As the product brings no harm or side effect for human body, the company has actually made a promise to its customer to give full refund if there is any dissatisfaction on EMC. The product has proven to people that it is not creams that would only moisture and nourishes skin but it can also heal sickness such as eczema and psoriasis. Based on the economy research, tax incurred in importing products to Thailand will be rated by the CIF. By importing rules, tax regulations are concerned in Thailand. For the purpose of this report the tariff schedule has been significantly simplified. There are 3 general categories for importing primary such as raw materials Intermediate, semiprocessed products and finished products. However, Thailand and U.S have free trade agreement which lead to the easy way to access to Thai market easily. The kingdom of Thailand is a constitutional monarchy typed government under a parliamentary democratic system. Head of the Thai royal is the current King Bhumibol Adulyadej. Thai government system is modeled similar to the politics of England. However, due to the popularity of the former Thailand Prime Minister Thaksin Shinawatra, there are two major groups of political supporters in the country, which resulted in the political instability occurring in the late 2009. Thailand’s political issues have been affecting the economy and thus, importing indirectly. Thai government laws have concerned conditions for Thai employees who Thai employees need to have maximum working hour, holidays, sick leave, minimum wages and severance pay. The product that import to Thailand needs to be guarantee by Food and Drug Administration. One of the culture element that has to emphasized is the symbol of beauty in Thailand is the whiteness. Thais believe the paler you are, the higher the status. This shows that Thais concern about their skin colour and EMC is in demand as it can help to brighten the skin. Based on the research in segmentation, we have identified both primary and secondary target market. EMC primary target market would be young and working female adults within the age group of 25 to 45. The secondary target market would be Thai male who 2

are concern about their self-image as they are easier to be influence by their friends and family. Also, EMC is using global consumer culture positioning strategy (GCCP) in order to position the brand as a symbol of a given global consumer culture. There are no direct competitors for EMC in the Thailand market. However, there are a few indirect competitors such as Loreal, Olay, Neutrogena, Nivea, Watson, Pond, Utena and Lanopearl. EMC manage to position themselves as the 100% natural ingredient cream in the market and being exclusive too by only distributing to Watson Pharmacy in Thailand. In order to enter into Thailand market, the company has decided to direct export EMC from USA to Thailand. Meanwhile, establish contractual transaction with Watson Thailand. The company has decided to enter into the market on 2011. In short term plan, EMC should make some changes its product label. All the wording on the package should be convert to Thai language and metric measurement from ounces to millimeters. Furthermore, the recommended retail price of EMC in Thailand will be Thai Baht $1875. We also assumed that if the US currency appreciates 20%, the recommended retail price of EMC for Watson will be Thai Baht $2180.50. As for the...
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