CONTENTS

Introduction

1. Company background

Mission

Vision

Products

2. Opportunity for going international

Financial capability

Resources
 3. Evaluation process

http://www.marketingteacher.com/image/content/international_marketing_research.gif

1. Country identification:
The decision to enter into international market requires certain steps that
needs to be followed. Firstly, identification of the country. Secondly, preliminary screening and
then In-depth screening and later, final selection.
Before exporting a product into international market we need to look into the similarities and
differences, between the markets, and make the final selection. In order to export lifestyle fish
products it is necessary to select the most profitable market for these products. Therefore,
MIFCO must consider the current opportunities, threats and trends in the market before selecting
a country to target the product. At the first stage three countries were identified.

2. Preliminary screening:

Countries and details

Index Weighing

Index weighing

Index weighing
Total weighing

Total weighing

Total weighing
Factor Rating

Screening
Thailand

China
India

Factors
Exchange rate 5.4 2.33 3.08528 16.66 66.5 88.056144 475.5 6.69 8.85858051 36.126
GDP real annual
rate 5.3 2.80 16.8573 89.34 7.1 42.745334 226.55 6.71 40.397351 35.563
GDP per Capita
PPP 8.4 13987 42.2351 354.8 5730 17.302292 145.34 13400 40.4626023 112560
Unemployment
rate 3.8 1.00 10.0503 38.19 4.9 49.246231 187.14 4.05 40.7035176 15.39
Monthly wage 5.7 373.58 0.59606 3.398 272 0.4339878 2.4737 62029 98.9699492 353565.3
ease of doing
business 6.5 16.00 6.95652 45.22 130 56.521739 367.39 84 36.5217391 546
Population 9 67.22 2.49345 22.44 1254 46.516511 418.65 1374.6 50.9900366 12371.58
-
inflation rate 8 -1.19 -23.288 186.3 5.00 97.847358 782.78 1.30 25.4403131 10.4
Consumer Price
Index 6.5 106.33 31.4279 204.3 131 38.719593 251.68 101.00 29.8525109 656.5
Food Inflation
% 8.2 1.11 13.3413 109.4 5.91 71.033654 582.48 1.30 15.625 10.66
Competitiveness
Index 7.9 4.65 33.4292 264.1 4.31 30.984903 244.78 4.95 35.5859094 39.105
Consumer
Spending 8.5 33522.4 10.6645 90.65 16055 5.1076021 43.415 264758 84.2278742 2250443
Sales tax rate 4.3 7.00 18.1818 78.18 14.5 37.662338 161.95 17 44.1558442 73.1
Interest rate 8 7.00 39.2157 313.7 6.5 36.414566 291.32 4.35 24.3697479 34.8
Total 1444 4181.4 2730398
Ranking 3 2 1

3. In-depth screening:

Country and Concentration

India
India lies on the Indian plate, a northern portion of the Indo-Australian Plate. The Indian
subcontinent is surrounded by three different water bodies and is easily recognizable on the
world map. India is the seventh largest country in the world in terms of area which makes it an
obvious place to have vast geographical features. There are numerous rivers and backwaters in
Maharashtra, Goa, Kerela and Karnataka. These region are divided into two parts- the Malabar
Coast and the Konkan.
India is surrounded by water from three sides- Arabian Area in the west, Bay of Bengal in the
east and Indian Ocean in the south
The current population in India is 1254.02 million. India population is equivalent to 17.84% of
the total population. http://www.worldometers.info/world-population/india-population/
India ranks number 2 in the list of countries by population. New Delhi is the Indias capital
territory, is a massive metropolitan area in the countrys north.
The SRS survey reveals that 71% population in India is non-vegetarian while 28.85% is
vegetarian. (kaushik, 2016)

China

China is geographically located in Southeast Asia along the coastline of the Pacific Ocean. China
consist of 9.6 million square kilometers and 18000 kilometers of coastline. The current
population in China is 1374.62 million. China is considered to have worlds largest population.
People tend to divide china into 4 regions. That is, North, South, Northwest and the Qinghai
areas. Residents of each region have different life styles and customs because of geographical
differences.

China has many rivers and lakes. According to Travel China Guide Website it says, more than
50000 rivers in China has drainage areas that exceed 100 square km; more than 1500 exceed
1000 square km.

Culture and Beliefs

In order to analyse the culture of India and China Hofstedes model have been used. In this
model we will mainly be focusing on four dimensions. That is, Power Distance, Individualism,
Masculinity and Uncertainty Avoidance.

https://geert-hofstede.com/india.html

1. Power Distance:
India scores 77 and China scores 80 for this dimension. Which means that china has high
level of inequality with regard to power and wealth within the society. Also, it indicates
that there is a lot of power distance between subordinates and superiors. Even though, it
is considered to be accepted and normal in China. Apart from China India is famous for
Caste System which indicates the power within the society.
If china is open to international market, we need to respect who rank higher than us, and
show that we understand and appreciate China so that we could make a positive
impression upon Chinese market.
http://www.marketmechina.com/geert-hofstede-tells-us-chinese-business-culture/
2. Invidualism vs Collectivism:
India scores 48 for this dimension, and china scores 20. According to the graph, India is
considered to be more individualistic than China. An individualistic society will mostly
 look after themselves and their immediate family only. Many research findings confirm
that the Chinese are collective subjects, with the characteristics of group orientation.
For instance, Chinese-majority society has been found with the characteristics of
collectivism (Hofstede, 1984). (WONG, February 2001) In market me china website
Geert Hofstede mentioned that A low score here shows that China is a Collectivist
society. The people in China tend to think in terms of We, and place the need of others
ahead of their own. (Hofstede, 2014)
3. Masculinity Versus femininity
China scores 66 and India scores 56 in this dimensions. Which indicates that China is
more a Masculine society than India. Therefore, it can be said that, they value
competitiveness and ambition. China is said to be a society where success is defined by
achievement.

4. Uncertainty Avoidance
Uncertainty Avoidance is the degree of members of the society feel threatened with risk
and uncertainty. Countries with low uncertainty avoidance tends to be more flexible
informal rather than bureaucratic. When comparing China and India, China tends to be
more flexible to uncertain risk than India as china scores 30 and India scores 40, as china
scores lower than India.
Choice

According to the preliminary screening and Hofstedes model we could say that China is the best
market to internationalize ready to fry products produced by MIFCO. Because China is the
largest population in the world which consist of 1374.62 million people and therefore consumer
spending is tend to be higher. Consumer spending in China is 264758 and India is 16055. Also,
Chinese market is more flexible to uncertainty and risk based on Hofstedes model.

Consumption

China
In past three decades Chinese consumption patterns have changed dramatically as incomes have
risen and new products and concepts have entered the China market (Nelson, 2011) Chinas fast
growing product categories include snack foods, convenience foods and toys etc. The young
generation of China spends less time in cooking. Therefore, there is an increasing demand for
ready to fry / microwave meals. Nowadays, many local companies in China are researching to
make Chinese food more convenient. (Nelson, 2011)

India

Indias faster economic growth over 1990s has raised expenditure and has considerably impacted
food consumption patterns. The expenditure on food items had decline from 49.9% to 35.4%
between 1991 and 2004. But the expenditure on non- food items showed a faster increase from
50.1% to 64.6% in the same year. (Sethia)

Commitment

China

According to WTO , Chinas average applied MFN tariff rate was 9.4% in 2013, which
increasingly went down from 15.3% in 2001. Tariff was higher in agricultural products at 14.8%
than non-agricultural products 8.6% corporate income tax was lowered to 25% from 30% for
foreign invested businesses as well as local businesses.

India

According to World Banks website, Indias agricultural tariffs average between 30-40 %, anti-
dumping measures have liberally used to protect trade. Average non-agricultural have fallen
below 15% in 2005.

http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/EXTSARRE
GTOPINTECOTRA/0,,contentMDK:20592520~menuPK:579454~pagePK:34004173~piPK:340
03707~theSitePK:579448,00.html
http://www.commisceo-global.com/country-guides/china-guide

Communication

China

Chinese is a family of closely related but commonly unintelligible languages. Manadarin is the
most common as well as the official dialect in China. English language levels are very patchy but
few fluent English speakers do exist. Chinese non-verbal communication speaks loud.
Frowning while someone is speaking is said to be a sign of disagreement. Also, it is considered
to be disrespectful to stare into another persons eyes. In crowded place Chinese people avoid
eye contact to give themselves privacy. Handshakes are the most common form of greetings
with foreigners. Also, many Chinese will look towards the ground while greeting people.

Broadcast media: all broadcast media are owned by a government agency or a communist party
of China. Foreign made TV programs must be approved by the government before broadcasting.
There is no privately owns TV or radio station in China.

India

The official language of India is Hindi and is spoken about 45% of the population. English
language is considered as the authoritative legislative and judicial language in India. Also it is
widely used in finance and higher education. The famous Head tilt in India means yes, I
understand which is often seeing as one of the most popular body language used in India.

Broadcast media: the Indian Media and entertainment industry has been largely driven by
increasing digitization and high internet usage. With regard to India Brand Equity Foundations
website it says that in 2014, the television industry in India resulting the major share of its
revenue from advertising (32.6%) and remaining is from subscription (67%)

http://www.ibef.org/industry/media-entertainment-india.aspx

http://hong-kong-economy-research.hktdc.com/business-news/article/Small-Business-
Resources/Trade-Regulations-of-China/sbr/en/1/1X000000/1X006MY8.htm

Economy

Economy

GDP GDP GDP Intere Inflati Joble Curren Curren Populati exchan
YoY QoQ st rate on rate ss t cy on ge rate
rate Accou
nt

Chin 1086 6.70 1.80 4.35 1.30% 4.05 2.7 6.69 1374.62
a 6 % % % %

Japa 4123 0.80 0.20 - -0.40% 3.00 2.9 100.6 126.82

n % % 0.10 %
%

Indi 2074 7.10 1.40 6.50 5.05% 4.90 -1.25 66.5 1254.02
a % % % %

Currency

Considering the economic indicators, although the overall population of China (1350 billion) is
Higher than India (1250billion) the population is growing rapidly all over the India where china
has on child policy as their government has been set. As for in long term India will be more in
number population. Although, India has a good population the inflation rate is (3.75%) higher
than china, means India has low rate of buying. The rate of unemployment is almost equal in
both the countries. Which will effect on the buying rate because they will not get income. As for
the GDP china has 10866 which is 100% more than the GDP of India. This means we have more
opportunity in china than india.

Currency

GNP

Inflation

Risk mitigation

4. Barriers to internationalization

5. Market entry strategies

Direct export

6. Final selection

Segmentation

Targeting

Positioning

7. Marketing plan
 Price

Place

Product

Promotion

Conclusion