Marketing to a Developing Country Essay Example | Topics and Well Written Essays - 1500 words

Marketing to a Developing Country - Essay Example It is estimated by the International Monetary Fund (IMF) that in 2013 the country will exhibit a growth of about 7.8% in its Gross Domestic Product. The growth rate of the country is significantly slowing down in the last 13 years because of the new believe of the policy makers. The policy makers in China now believe to have to sustained growth other than simply having a volatile high growth rate (Gordin, 2011). The country has adopted a new economic model that primarily intends to expand the sectors like consumption, service and innovation. Toys played by the children are luxury goods in nature. It is empirically true that the growing yield of per Capita income level will increase the purchasing power of the big strength of the Chinese population. The country had a strong socialistic economy, over the last few years the nation has adopted liberalization in free market principles. The state attempts to increase its consumption activities from 35% of its GDP to 50% from 2010 to 2015 ( Buyusainfo, 2013).Thus precisely if a business owner intends to spread business internationally for the first time then the growing market of China can be a good starting point. China is a labor surplus economy so it would be easier for the business firm to expand its business with cheap waged laborers. Furthermore the country is expanding over its level of domestic consumption. The Chinese toy market is wide and competitive, thus first starting a business in China will make the firm more competitive. 2. Determine aspects of your business’ product that you may have to change in order to accommodate the selected foreign country’s needs (packaging, advertising, etc.). China is a country which is known all over the world for its rapid technological development. Chinese Toy’s and electronic goods are well known in the market for electronic gadgets. Thus a newly entering business of toys in the Chinese market should strategically plan its packaging, advertising and p romotion in the market. When it comes to packaging the company must make ecological friendly packages for the toys. The product packaging must be attractive and colorful that it becomes catchy in the eyes of young children. The bright outlook of the packages must attract the children. The company in order to promote the sales of the toys must keep the provision of product trials. Children being able to play with the toys once would surely desire to buy them. The company should try to efficiently allocate its resources to spend a considerable amount on advertisements. Attractive advertisements in television would promote the sales of the toys. The company should adopt the policy of penetrating pricing. The price of the toys at the beginning must be lower than the prices set by the potential rivals in the market. Once the company achieves brand loyalty and trust from the consumers of China they can profitably increase the prices of the toys. Toys are luxury goods and people do intend to pay a lot for them (Som, 2013). 3. Create a plan that identifies emerging markets that you would like for your business to enter into overtime. The business that newly desires to international trade should always try to emerge its fame in the growing economies of the world. This is because in the growing economies per Capita income levels of the buyers increases rapidly. Indeed, if the purchasing power of commoners increases then it would become more likely for them to turn