The role of international marketing has been evaluated in the report to develop an effective marketing campaign for the company. A brief overview and background of the company also have been analysed in the report Current marketing plan that is used by Neos has been analysed in the report to evaluate the effectiveness of their marketing plan. Emerging markets on the global level have been analysed to suggest the potential market for the company to perform business expansion. An effective marketing plan has been developed in the report to improve the marketing approach of the company. Segmentation, targeting, and Positioning strategy have been developed for the organization to make business expansion successful in the suggested market.
EXECUTIVE SUMMARY.. 2
COMPANY BACKGROUND.. 4
CURRENT MARKETING STRATEGY OF COMPANY.. 5
MARKET SELECTION.. 6
MODE OF ENTERING NEW MARKET. 8
MARKETING MIX.. 10
Marketing can be explained as a set of actions that are performed by the business organization to promote their products and services in the target market. The main objective of the marketing process is to make the customers aware of all the features of products and services that are offered by the company (Sheth, 2020). Marketing is the most important function that is used by the business organization to increase their sales and generate more profit from a specific market. This report is about Neos, which is a smart home technology company that helps customers to look out for the security of their houses from their smartphones.
This report will be providing a brief overview of a start-up company and their business idea. Current marketing processes and strategies that are used by the organization also will be analysed in the report. According to the business idea of the organization, a potential market will be identified for further business operations of the company. Different modes for entering a new market will be analysed in the report to suggest a better option to enter a new market with minimum risk. Strategy for selecting, targeting, and positioning the organization in the target market will be suggested in the report. Different marketing strategies that can be used by the organization to promote their products and services in the selected market will be explained in the report. Different marketing strategies that can be used by the organization to promote their products and services in the selected market will be explained in the report.
Neos Company was founded by Matt Poll in the year 2016. A range of security devices is offered to the customers. Major offerings that are provided by the company are related to the smart technologies that can be used as security devices for the house. Security devices like an indoor security camera, leak detectors, smart smoke alarm, and motion sensors (Morgan, Feng, and Whitler, 2018). These are major security devices that are sold by the company to the customers. Customers can buy these security devices separately as per their need or they also can prefer the complete security package that is offered by the company in which the entire setup is developed by the organization. In this package, proper insurance is also provided by the company with help of a leading partner. The main idea of this business is to provide satisfaction to the client from the security perspective. Customers also can access the security devices from their smartphone. This is a completely new idea that is helping the organization to grow in the current market.
Along with this company, also offer insurance support from the leading partners. This is how the company is providing services to customers on a unique idea. The strategic objective of the organization is to offer high-level satisfaction and peace of mind to the customers by providing them products and services related to home security and insurance.
CURRENT MARKETING STRATEGY OF COMPANY
Marketing is one of the most important aspects of a business organization. In the case of start-ups, this is more important to use an effective marketing strategy to make the target audience aware of the products and services that are offered by them. As a start-up, this is difficult for the organization to spent financial capital on the marketing process (Samiee and Chirapanda, 2019). This is not possible for the organization to use a larger size market campaign to improve their reach to the target audience. The marketing program of Neos is based on search engine optimization technique and content marketing. Both techniques are highly used by the organization to promote their business on a global level. In the search engine, optimization technique the organization is focusing on increasing reach to the customers. In the content marketing process, different articles and blogs are used by the company to attract a large number of customers to purchase their products and services.
Currently, the marketing process that is used by Neos Company is based on the communication partnership. Apart from the traditional marketing process, the organization is more focused on communication partnership. In this process, different third party organizations are hired by the company to perform marketing on behalf of them. In the current market scenario, this approach is considered the most effective approach to increase the reach of the company to a larger number of customers (Paul and Mas, 2020). In this marketing approach, people’s relation, social media marketing, content marketing are majorly used by the organization to promote the products and services of the company. PR marketing also can be considered as a people’s relations program. This marketing approach is the most effective approach to improve the market image of the organization in the target market. In this process, proper customer analysis is performed by the company to gather information and data about the target audience. Information collected in the research process is processed and analysed by the organization to develop an effective strategy to perform marketing of the organization. With this approach, the most effective marketing strategy can be used by the organization to develop a larger customer base.
The other process that is used by the business organization is content marketing. Content marketing is considered a strategic marketing approach that can be used by the organization to meet the marketing goals of the company. In the content marketing process, the major focus of the organization is on the creation and distribution of valuable, relevant, and consistent content to attractant retain the target audience (Gomes, Sousa, and Vendrell-Herrero, 2020). In this process, content is created by the organization for the target customers to make them aware of the technology and services that are offered by the organization. This is how different marketing processes are used by the NEOS to promote their products and services in the market.
Business expansion is considered the most effective way to improve the profitability and growth of the organization. For the internationalization of business operations, this is most important for the organization to identify a potential emerging market. For the process of business expansion, it is most important for the organization to perform proper research to collect information about the market that re available for the business expansion. Proper research can help the company to select a specific market to perform business expansion.
According to the products and services that are offered by the company, India is one of the best options for a company to perform business expansion. India is considered among the fastest-growing economy on the global level (Amankwah-Amoah, Boso and Debrah, 2018). There are too many opportunities for the organization in the urban market of India. Metropolitan and large-size cities can be targeted by the company for the business. This is one of the most effective business solutions. In the process of business expansion, an organization can target middle class and upper-middle-class people.
This is most important for the organization to analyse cultural values in the country to keep the business expansion plan successful. For a better cultural analyse 6-D model can be considered. In the analysis six different culture drivers. The cultural drivers that are considered in the analysis processes are- Power Distance, Individualism, Masculinity, Uncertainty avoidance, Long Term Orientation, and Indulgence.
Figure 1Hofstede Cultural Model
(Source: COUNTRY COMPARISON, 2021)
These drivers can be considered by the organization to get a better overview of culture in the target market.
Power Distance- In this dimension score obtained by India is very high. The score obtained by India is 77 and it indicates an appreciation for hierarchy and top to down structure in society and organization. According to the score of the country, it can be said that in Indian culture dependency on power holder is very high.
Individualism- In this dimension, the score obtained by India is 48 and it reflects that there is both types of culture can be observed in the country (Li, Liu, and Bustinza, 2019). There is a larger social framework is followed in an organization and all people are expected to work according to the social structure in the country. Another mentality is based on the majority of people who follows Hinduism. These type of people are reflecting the individual dimension. They can take their decisions on their own.
Masculinity- The score obtained in this dimension for India is 56. This score reflects masculinity in the culture of a country. Masculinity can be defined in terms of visual display of success and power. Bran label and advertisement of the organization goes with the success of the organization. The major focus in the country is on success and achievement.
Uncertainty Avoidance- In this dimension score obtained is 40 and it shows a medium preference to avoid uncertainty. Imperfection is also accepted in the country. This is not compulsory to run operations or functions with perfection.
Long Term Orientation- This dimension about developing a link with own past while facing challenges. The score obtained is 5, and this score reflects that this is not possible to set the preference in countries like India. India has great tolerance for religious views.
Indulgence- In this dimension score of India is 26 and it reflects that, in India, there is a culture of restraint. This type of countries tends towards pessimism and cynicism. People do not focus on leisure time and they control the gratification of desires.
MODE OF ENTERING NEW MARKET
As per the recommendation, Neos Company can perform business expansion in India. According to the market condition of India, there is a large number of business opportunities to increase their profitability and customer base. This is difficult for an organization to enter a new market with a new segment (Gnizy, 2019). To make the business expansion successful, this is important for the organization to use effective strategy to enter the market place. Major options that organization have are- Direct exploiting, Licensing, Franchising, partnering, Joint Venture, and Acquisition. These approaches or strategies are considered as most effective strategies to enter a new market with better impact. Among these market-entering strategies, the organization can prefer, joint venture, and partnering. These are the best approaches for the organization to enter a new market by creating a better impact on the local market.
A partnership is considered as an agreement between two or more people for business operation and shares all profit and liabilities. In almost all partnerships, profits and liabilities are shared by the company. It can be considered an effective approach to enter the new market. It can offer more stability to the organization in the target market. With this approach, this is easy to establish and start-up a business at the new location, and larger capital is available in this approach. This market approach can be used by the company to enter India.
A joint venture is considered an approach that is used by the organization to pool its resources for purpose of accomplishing a particular task. In this approach, Neos Company can develop a joint venture with a local company to acquire the local market on an initial basis. In this strategy, an organization can take larger risk and share costs with another partner in the joint venture (Poulis, 2020). This is also easier for the organization to develop human resources to run business operations efficiently. With this business strategy organization also have the opportunity to access large resources like technology and finance.
From the above options, the organization can use the joint venture approach to enter the specific market. In this process, Neos can develop a joint venture business with the local insurance company to provide a complete product package to the customers.
Segmentation- For the implementation of the marketing plan, this is important to target a particular audience to make the campaign successful. In the segmentation process. Demographic and geographic segmentation can be used to implement the marketing plan of the company. For the demographic segmentation, the organization can focus on small size family. The age group can be considered for 25 to 50 year (Asseraf and Shoham, 2019). For the marketing plan, medium and upper-medium economic class people can be targeted for the marketing process. In the geographic segmentation, a marketing plan can be designed for the people who live in metropolitan and large cities.
Targeting- In the targeting plan, an organization can target the families which have family members from 3 to 5. In the targeting process, economically medium upper-class people can be targeted for the marketing process.
Positioning- For the positioning of the company product company can consider two aspects. In positioning organization can consider cost and value for the positioning of products in the target market. As compared to the other organization, the position of Neos will be according to the diagram below.
As per the above map, Neos can provide effective quality products to the customers at an effective low cost. This can help the organization to gain higher profit.
Marketing mix can be explained as a strategy to improve the marketing process of the organization. The marketing mix is based on all the processes that are used by the business organization to develop value product and services to the customers. For Neos, 4 p’s of the marketing mix can be used to improve the marketing process of the company.
The product of the organization is the main element to perform marketing in the target market. This is important for the organization to develop high-quality product to meet the needs of customers effectively. As compared to a competitor, products with better features and built quality can help the organization to attract more customers. It also can help to improve the marketing campaign of the company.
Price is the second most considered element in the purchasing process. Customer is willing to get a better quality product at effective low cost. If the organization is providing products to the customer with effective quality and low cost then customers can be influenced by their products.
For the promotion process, organization have to use better marketing approaches to improve their visibility in the target market. For the marketing process, Neos can use a combination of the traditional and digital marketing process to attract a larger number of potential customers. In this process, Neos can continue with its current marketing approach to get a better result in the target market.
In this process, the organization can improve their tangible and intangible factors to develop a positive impact on the customers (Gnizy, 2019). For example, the PR process can be improved to improve the brand image of the company in the target market. Tangible factors like Organization building, machinery and promotional goods can be improved to develop a positive impact on customers.
Different methods and approaches can be used by the organization to improve the effectiveness of marketing strategy. Information regarding customer requirement and market scenario can be used by the organization to improve the effectiveness of the marketing process. Organizational knowledge and marketing resources can be developed to improve the impact on the target audience. For this, the company can develop an effective cloud-based information system to increase the marketing processes of the company. Regular market and customer-based research can be used by the organization to get better result with the market campaign.
This report was concluding the importance of the marketing process for a new start-up organization. The role of international marketing has been analysed for the performance of the organization in the market place (Gnizy, 2019). According to the current scenario, a potential market for business expansion has been suggested in the study. Different modes of market entry also have been analysed in the report. A proper STP plan has been developed in the report to make the business expansion successful for Neos Company. Element of marketing mix also has been analysed in the study to improve marketing plan of the company.
Books and Journals
Amankwah-Amoah, J., Boso, N. and Debrah, Y.A., 2018. Africa rising in an emerging world: an international marketing perspective. International Marketing Review.
Asseraf, Y. and Shoham, A., 2019. Crafting strategy for international marketing: outside-in or inside-out?. International Marketing Review.
Gnizy, I., 2019. The role of inter-firm dispersion of international marketing capabilities in marketing strategy and business outcomes. Journal of Business Research. 105. pp.214-226.
Gomes, E., Sousa, C.M. and Vendrell-Herrero, F., 2020. International marketing agility: conceptualization and research agenda. International Marketing Review.
Li, R., Liu, Y. and Bustinza, O.F., 2019. FDI, service intensity, and international marketing agility. International Marketing Review.
Morgan, N.A., Feng, H. and Whitler, K.A., 2018. Marketing capabilities in international marketing. Journal of International Marketing. 26(1). pp.61-95.
Paul, J. and Mas, E., 2020. Toward a 7-P framework for international marketing. Journal of Strategic Marketing. 28(8). pp.681-701.
Poulis, K., 2020. Punctuated epistemology in international marketing strategy: A Whiteheadian remedy. Marketing Theory. 20(3). pp.363-384.
Samiee, S. and Chirapanda, S., 2019. International marketing strategy in emerging-market exporting firms. Journal of International Marketing. 27(1). pp.20-37.
Sheth, J.N., 2020. Borderless media: Rethinking international marketing. Journal of International Marketing. 28(1). pp.3-12.
COUNTRY COMPARISON, 2021. [Online]. Available Through< https://www.hofstede-insights.com/country-comparison/india/>.