Entry and marketing strategies for India : a case study of a Thai natural cosmetics manufacturer | |
| Author | Halder, Tanuj Kumar |
| Call Number | AIT RSPR no. SM-00-45 |
| Subject(s) | Thailand--Commerce--India Cosmetics industry--Thailand |
| Note | A research study submitted in patiial fulfillment of the requirements for the degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-00-45 |
| Abstract | O.P. Natural Products co. Ltd, a company of SSUP group, is a successful company in Thailand. The company conducts business with marketing and selling of natural cosmetics through company owned retail channels under the brand name of Oriental Princess. The company has operations mainly in Thailand and is in the process of covering all parts of the domestic market with company owned retail channels. Though the company has business interactions with other countries, all of them are of indirect and passive types. China and India are the two developing countries in Asia, who have many opportunities for consumer goods manufacturing companies. Now, Oriental Princess is present in China in the form of a Joint Venture in Shanghai and is in the process of penetrating the Chinese market. So, a requirement for a research study to evaluate factors pertaining to Indian market and Oriental Princess has evolved to help the company in deciding how it will go forward in terms of entry and marketing in Indian market. The evaluation of market factors proved to be changing from neutral to mildly attractive and this trend is also prevalent for the Industry enviromnent and thus has given a lot of relevance to the efforts put to this study. On evaluating all the factors, entry mode, time and place has been determined in conjunction with marketing strategy for Oriental Princess. The company will have to adopt an entry stt·ategy, which will be a combination of two conventional modes - wholly owned and Joint venture. The wholly owned mode will be for some company owned comers at existing supermarkets in Bangalore and Bombay, then expansion could be undertaken to other cities later. The Joint venture mode will consist of putting company products to related consumer goods producers like greeting card shops etc. and other green consumer goods manufacturers who has a dream to be accepted globally, to enhance brand recognition and identity. This mode will also consist of agreement of supply contracts to selective beauty shops (beauty parlors) and hotels (who has beauty saloons), to attract the interest of a particular class of consumers. The company will have to advertise in Indian beauty magazines and in English language newspapers in the respective target cities. The total market will have to be segmented, need and behavior of each target groups will have to be evaluated in light of size and growth rate of that segment. Direct mailing could be a good idea and alliance with jewelry shops, expensive and medium priced car dealers, health clubs, green lobbies are to be developed to create a constellation, where all will achieve and create value for it's consumers to become successful and promote a win-win condition. Oriental Princess, initially, don't need to establish manufacturing plant in India. It needs to taste the market at a lower cost and develop close ties with the stakeholders in and outside the industry to get a feeling of the market. This approach will help Oriental Princess to be actively present in the Indian market while minimizing risks of entering in a passive way as like an exporter. Thus the entry strategy and marketing strategy, developed to give Oriental Princess an edge over it's competitors in terms of making it a first mover and present in the market with minimum possible cost actively, to determine its' future in a shorter period of time. There are a series of changes to woo foreign investors towards India and this may not last for long as many investors are taking this opportunity to tap the potential of a market which is bigger than the whole Europe in terms of number of consumers. Recent visit of US president Mr. Bill Clinton to India could certainly be translated as US interest towards market potential in Indian, which will in tum will bring a lot of competitors for Oriental Princess if it prefers to adopt 'wait and see' principle. The company is growing at a very aggressive rate in Thailand and to augment this growth rate, the company needs to expand geographically soon and maybe it may have to diversify it's business in future by acquiring suppliers business and become supplier of natural extracts to many industries in future. |
| Year | 2000 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-00-45 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Johri, Lalit M.; |
| Examination Committee(s) | Tocquer, Gerard;Sunanta Siengthai; |
| Scholarship Donor(s) | His Majesty The King of Thailand; |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2000 |