YIP TSZ CHUNG (SID: 1155000976)
21st December, 2010
Table of Content
Executive Summary Current Market Analysis - Macroenvironment Current Market Analysis - Customer Market Description Product Review Competitive Review Channels and Logistics Review Marketing Objectives Marketing Strategies - Product Marketing Strategies - Price Marketing Strategies - Place Marketing Strategies - Promotion Execution Plan Budgets Controls Appendix - References
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Executive Summary MUJI, a Japanese retail company which sells a wide variety of household and consumer goods, is distinguished by its concept of simplicity and emphasis on environmental friendly stance. India has a fast-growing economy and more foreign companies are investing there. India has a potential yet growing market of young generation from middle-to-high-income households, with increasing penetration rates of internet and social media. This marketing plan is focused in market development in India with existing MUJI products. It seeks to introduce MUJI as a new and unique brand in India, generate sales and let India take up an important part in the MUJI’s Asian market. The plan is on one-year basis. It has to be reviews periodically as the market in India is volatile and fast-changing. It is expected that MUJI will generate net sales of US$13.3 million and profit of US$0.86 million in the first year (excluding the planning period) in this new and potential market. Current Market Analysis – Macroenvironment PESTLE analysis Political. India is not very politically stable but currently at an acceptable level. It has adapted restriction on Foreign Direct Investment (FDI). Foreign single-brand retailers cannot wholly own their companies and FDI is not allowed for multi-brand retails in India. The corporate tax rate for foreign companies in India is 41.2%, which is similar to that in Japan (40.69%) but higher than that in other growing economies like China (25%). Economic. India is a fast-growing economy, ranked 11th in terms of nominal GDP with US$1.367 trillion (International Monetary Fund, 2009) The GDP growth rate is steadily high and is 8.9% in 2010 Q2 (Economic Times, 2010). The exchange rate between Indian Rupee and US Dollar is rather stable. The wage rate is very low, compared to other economies. Social. The population growth rate is 1.376% (Central Intelligence Agency, 2010). The young generation accounts for a large proportion of India’s population. India is unequal in income distribution yet the “the middle class is a growing consumer market”. (Deutsche Bank
Research, 2010) Middle-to-high-income households form a large and potential market. Technological. Mobile and internet usage are getting more popular in India. The number of mobile users is more than 500 million with teledensity rate of 97% in urban areas. (The Times of India, 2009) India has over 80 million internet users, which is 15 times more than that ten years ago, with 6.9% penetration rate and over 13 million Facebook users with 1.1% penetration rate. (Internet World Stats, 2010). Legal. India has a well-established and independent judiciary system with high quality and trustful legal profession practitioners. Besides, the FDI restriction on single-brand and multi-brand retails may be released in coming years. This will attract more foreign retailers to enter the market, thus the competition will become more intensive in future. Environmental. The rapid growing population and economic development cause certain significant environmental issues in India, such as resource depletion, pollution, water sanitation and global warming. The Indian are highly concerned with these issues. Current Market Analysis – Consumer India is a large and potential market with increasing consumption and living standard. India has the second largest population with 1.19 billion people (Indiastat, 2010) in the...