Preparation and partial execution of export marketing plan

PREPARATION AND PARTIAL EXECUTION OF EXPORT MARKETING PLAN

DATTATRAYA PRAKASH DANGE MBA (UNI)

ROLL NO. B515

A

PROJECT REPORT

ON

PREPARATION AND PARTIAL EXECUTION OF

EXPORT MARKETING PLAN

FOR RATHI TRANSPOWER PVT. LTD.

SUBMITTED TO UNIVERSITY OF PUNE IN PARTIAL FULFILLMENT OF

TWO YEARS FULL TIME COURSE MASTER IN BUSSINESS ADMINISTRATION (M.B.A.)

SUBMITTED BY DATTATRAYA P. DANGE

ROLL NO. - B515 (BATCH 2006-07)

BANSILAL RAMNATH AGARWAL CHARITABLE TRUST S

VISHWAKARMA INSTITUTE OF MANAGEMENT S. No. 2/3, Kondhawa Budruk, Pune- 411048

Ph: 020-26932900/26932800 Fax: 020-26932800

PREPARATION AND EXECUTION OF PARTIAL EXPORT MARKETING PLAN

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ACKOWLEDGEMENT

I am profoundly grateful to Mr. Rajendra Kshirsagar of Rathi Transpower Pvt.

Ltd. Pune, for so kindly giving me this opportunity of doing my summer internship in

their esteemed organisation. I intensely appreciate his keen and constant interest in my

learning experience, which could not have been more fruitful.

I am also thankful towards all the members of the organisation, who showed their

warmth and co-operation, thereby assisting me to know the entire activity associated with

Export marketing.

I would like to express my immense gratitude towards my guide Dr. Mrs.

Vandana Gote who helped me at every point of time to develop an insight to think in a

more broader and practical sense.

I am also indebted by our director Dr. Sharad Joshi and rest of the faculty, who

laid the foundation of management aspects in me.

Last but not least I thank my friends and colleagues without whom this endeavor

would not have been possible.


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INDEX

1. EXECUTIVE SUMMARY 4 2. COMPANY PROFILE 5 3. OBJECTIVES AND SCOPE 9 4. EXPORT MARKETING PLAN 13 5. DATA ANALYSIS 27 6. WEBSITE 43 7. MARKET INTELLIGENCE 53 8. FINDINGS 57 9. LIMITATIONS 58 10. CONCLUSION 59 11. RECCOMANDATIONS 60 12. BIBILOGRAPHY 62 13. ABBREVATIONS 64


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INDEX OF TABLES

TABLE NO. NAME PAGE NO.

2.1 GROUP STATISTICS 5 5.1 DEVELOPMENT OF INDICATORS EU

ECONOMY (EU 15) 2003-06- YEARLY CHANGES

28

5.2 COMPANY AUDIT 31 5.3 MARKET AUDIT 35 5.4 COUPLING COMPATIBLE AND EQUIVALENT

COUPLING CHART 37

5.5 JAW COUPLING HUBS PRICE ANALYSIS 38 5.6 PRICE LIST OF N-EUPEX (FLENDER /

RATHI) 39

5.7 TECHNICAL COMPARISON BETWEEN RATHI

AND FENNER GEAR COUPLING

40

6.1 CONTENT GOAL MATRIX 45 6.2 EVALUATION CONTENTS 48 6.3 EVALUATION NAVIGATION 49 6.4 EVALUATION COMMUNICATION 50 6.5 EVALUATION USER FRIENDLINESS 50


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1. EXECUTIVE SUMMARY

This summer internship project report contains a brief overview of the

observations and activities performed at Rathi Transpower Pvt. Ltd., Pune.

The main objectives of summer internship were among others to understand the

entire gamut of operations required to be done for foreign market entry, development of

global customer base, retention and increment of export market.

The main aim of the summer project was to prepare Export Marketing Plan

(EMP) with marketing perspective. After the preparation, execution of EMP was started

with special focus provided on website improvement. Market intelligence was carried out

simultaneously to avail data about market in Europe.


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2. COMPANY PROFILE

2.1 INTRODUCTION:

The rathi family s industrial roots can be traced back to 1941, when before India s

independence, the famiy set up a textile mill in emerging industrial town of pune, 180

km. south of Bombay port.

In 1947, the group diversified into engineering products, when Rathi Engineering

Works was established. Focus on exports was always priority, and soon the company got

the Export Excellence Award from the Indian government. The inherent quality

emphasis and continuous improvement throughout the company has gained Rathi

transpower the coveted international mark of quality management system ISO 9001 in

1993, one of the first small scale company to achieve this milestone.

Total factory complex area 30,800 sqm

Rathi transpower plant Area 2,900 sqm

City corporate office 1000 sqm

Number of employees 480

Table 2.1 Group statistics

Rathi Transpower Pvt. Ltd. has been a market leader in mechanical transmission

products and engineering solutions for rotating equipments for 35 years and is part of

Rathi group of industries (Pune).

The manufacturing unit is situated at Alandi, 25 km from Pune city and 180 km

from south Mumbai seaport, employing 300 people.

Manufacturing facilities include:

CNC turning and milling.

Gear hobbing and shaper.

Dynamic balancing.

Hydraulic broaching machine.

In-house phosphating plant.


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Manufacturing covers comprehensive range of elastomeric, metallic couplings

with or without lubrication. Company s policy is continual development using the latest

technology combined with company s commitment to product excellence enables it to

maintain its position at the fore front in the market. With the help of 22 distributors and

200 dealers, company is able to offer assured solutions to meet customer application

requirement precisely with virtually no limit in torque or speed.

Rathi transpower boasts of an impressive range of inspection and testing facilities,

to ensure that their customer gets highest quality standards product. Their investment in

research and development equipment enables company to continuously upgrade their

products to ensure that the customers get the best products.

Company engineers are eager to help customers by customizing products

according to their specific need by designing the best suitable coupling with the help of

CAD software. Proven service excellence on various applications enables company to

assist in impartial selection of correct type of coupling design from standard or specially

designed one.

2.2MISSION STATEMENT:

We stand committed to continual improvement in Customer Satisfaction by

Timely Delivery of Defect Free Goods with Prompt Service at Minimum cost.

2.3LIST OF SIGNIFICANT CUSTOMERS (EXPORT):

Pay Kel New Zealand

BPD Australia

BIS Australia

Furrow engineering. U.K.

Bibby transmission. U. K.

Emerson power transmission U. S. A.

Paulies Maska Canada

Wenet Pumpen Germany

Apart from these customers company does export products in following countries


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U.S.A., Canada, Brazil, Denmark, Sweden, Norway, Finland, U.K., Belgium,

France, Netherlands, Germany, Italy, Spain, Czech republic, Ireland, Egypt, Kenya,

Kuwait, Saudi Arabia, South Africa, South Korea, Thailand, Bangladesh, Nepal, Sri

Lanka, Syria, U.A.E., Qatar, Oman, Turkey, Australia, Fiji, New Zealand, Papua New

Guinea, Singapore, Taiwan, Malaysia, Hong Kong, Indonesia, China.

2.4 LOGO:

Fig. 2.1 LOGO

2.5 ORGANISATION CHART (EXPORT):

The inherent quality emphasis and continuous improvement throughout the company has gained Rathi transpower the coveted international mark of quality management system ISO 9001 in 1993.


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Fig. 2.2 EXPORT DEPARTMENT

2.6 LOCATION:

The manufacturing unit is situated at Alandi, 25 km from Pune city and 180 km

from south Mumbai seaport, employing 300 people.

Corporate office is situated at Deccan College Road, Yerwada and 4 km from

Pune railway station.

Overseas branch is situated at Sidney, Australia

2.7 PRODUCT RANGE:

Almost all type of coupling is offered by company, which includes standard as

well as couplings requiring custom treatment. This ability certainly provides company the

cutting edge over competitors. The NICHE of high performance coupling market has

already been explored by company when high performance couplings were developed

EXECUTIVE DIRECTER

HEAD OF EXPORT DEPARTMENT

TRAINEE MANAGER

INBOUND ASSISTANT

OUTBOUND ASSISTANT

MARKETING ENGINEER


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by company. Emerson Power Transmission USA , a fortune 500 company, has honored

company by choosing it as their manufacturing base to make their own coupling brand

KOP Flex . Compared to domestic competitors, performance of product & Brand Image

is superior in Domestic Market.

2.7.1 TRANSMISSION ELEMENTS:

Products of Rathi are technically called as Transmission Elements hence the

name Rathi Transpower . Transmission elements transmit power from driving unit such

as I. C. engine to driven unit like pump.

Flexible couplings smoothens the fluctuations from driving unit to driven unit. At

the same time it allows slight misalignment in alignment, simultaneously absorbing

shocks and vibrations. The flexible component in coupling performs these functions due

to inherent elasticity and ability to resist shear.

When the flexible element used is rubber or polymer it is called as Elastomer

Coupling. In Metallic Coupling flexible element is metal.

2.7.2 PRODUCTS CHART:

ELASTOMER COUPLINGS

SHEAR TYPE COUPLINGS

TYRE FLEX COUPLING

TYRE COUPLING

COMPRESSION TYPE

JAW FLEX COUPLING

B FLEX COUPLING

CONE FLEX COUPLING

HY FLEX COUPLING

METALLIC COUPLINGS

DISC O FLEX COUPLING

D FLEX COUPLING

GEAR FLEX COUPLING

GRID FLEX COUPLING

TRANSMISSION PRODUCTS


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PULLY

KEY BAR

BUSHES

SHIMS

POLY GEAR

CARDON SHAFTS

Company has the honor of providing 100 % coupling coverage for Indian

industry. In case of global market, company provides equivalent couplings of all major

international players.

2.8 COMPETITORS:

Company has already established itself as a market leader in domestic market.

There are no major competitors in domestic market.

Globally, company sees following companies as its competitors.

FENNER

FENNER

DAVID BROWN

RENOLD

WELMAN BIBBY

FLEXIBOX

COUPLING & DRIVES

KTR

DODGE

With regards to quality, Rathi couplings are at par with its GLOBAL Competitors,

leading pumps OEM s around the world approved company as their main source for

Couplings.


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3. OBJECTIVES AND SCOPE OF PROJECT

3.1 TITLE OF PROJECT:

Preparation and partial execution of Export Marketing Plan

3.2 OBJECTIVES:

Primary objective:

To prepare Export Marketing Plan.

Secondary objectives:

To improve company website.

To do market intelligence.

3.3 SCOPE OF THE PROJECT:

Rathi transpower Pvt. Ltd. has been market leader in flexible coupling industry

for decades. Currently they have considerable amount of exports, they are intend to

increase amount of exports still further. For this endeavour Rathi is taking help of a

Dutch management consultancy CBI (Center for Promotion of Imports) . According to

their consultation they have decided to prepare Export Marketing Plan.

Entire export activity is complex, without planning it can result in unfavourable

consequences. EMP will segment export activity in small segments, planning for each

segment at a time is relatively easy.

EMP will replace all the individual oriented activities and make them system

oriented. Loss of one or more individuals will not affect the business as all the activities

are predefined and planned for. In case of expansion of business each new employee is

clear in his mind about all the export activities that are carried out. Each new business

unit or cell will have a basic framework or structure on which exports activities are

carried out.

Export marketing plan is made for entire export activities. Scope of EMP extends

from domestic offices to overseas office. The company is more interested in increasing


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customer base across the Europe. EMP will be very useful for all European Union

market.

EMP is prepared by the middle level managers. Top level management are

expected to give valuable inputs for the preparation of EMP. Final form of EMP must be

approved by the top level management. Once prepared EMP must be followed and

executed by middle level of management. Lower level managers are usually involved

only with partial execution of EMP.

Although EMP is often prepared by the export department executives, directives

of EMP are binding to each department and every person. All the activity of exporting

revolves around the quality of product. As the quality is everybody s responsibility,

exports are dependant on each employee s efforts.


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4. EXPORT MARKETING PLAN

Every business works on an explicit or implicit business plan , which comprises

both the corporate and the competitive strategies of the firm. To implement the above two

strategies, there are functional areas, which have their own strategies or plans.

The marketing plan usually follows the marketing strategy. Marketing strategy

can be defined in simple terms as segmentation, target market selection and positioning.

The export marketing plan is more comprehensive in the sense that it does not

restricts itself about formulating strategy. It starts with micro environment analysis then it

proceeds to macro environment analysis. After analysis of all the factors, description of

all the strategy follows. All the strategies are then converted into action plan. At the end,

forecast and budget are prepared.

The export marketing plan acts as a code book for export department personnel.

It chalks out the activities to be done with allocation of resources like time and money for

each activity. Detection of deviation and making necessary corrections also becomes

easy.

4.1 PREPARATION OF EXPORT MARKETING PLAN

The Export Marketing Plan is one of the advanced techniques that can be used

as an effective tool for overseas marketing. However, only those few companies which

are efficient enough to be aware of recent trends in management are able to employ it.

Export Marketing Plan abbreviated as EMP is a comprehensive guide for

prospective exporters in developing countries. EMP specifies the following

Export Objectives

Market Entry Strategy

Management Plan

Financial Plan

Action Plan.

Your plans on exporting will be written down in an Export Marketing Plan

(EMP), your instructions for the use of (human and other) resources and their general


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tasks in your Management Plan, specifying them in a short-term Action Plan, and the use

of financial resources in a Financial Plan.

Fig. 4.1 CONSTITUENTS OF EMP

This systematic planning, step by step, of all activities for exporting gradually

zoom in on the customers and/or end-consumers and on marketing activities to reach

them. One has to put planning - or more precisely: its objectives - on paper, so as to

inform and instruct all interested parties. Ideally such a planning follows a certain

hierarchy: every next step goes more into specific details than the previous one. Time-

wise, this system looks like a funnel.


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Fig.


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4.2 PLANNING FUNNEL

4.2 PURPOSE, FUNCTION AND FORM OF AN EXPORT MARKETING PLAN

FIG. 4.3 EMP (OPERATIONAL PART)

4.2.1 The purpose of the Export Marketing Plan (EMP) is:

To bring all relevant marketing instruments together in a productive mix ;

Give direction to all your planned activities for optimal effect. That direction is

outlined in the objectives;

Estimate when the activities should take place. This timing will clarify the logical

sequence. The same applies to the very moment results can be expected. That

facilitates good management and sound decision-making;

Estimate how much the activities are going to cost, in order to make the money

available whenever necessary;

Estimate the feasibility, deducting all costs from the profit to establish if the

results justify those costs.

4.2.2 The function of the plan is:


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To inform all people involved about the objectives of the export operation;

To reach consensus with the key members of the company;

To give them specific instructions as to what their contributions to the export

activities will be;

To provide a certain justification for the money that will be spent in the export

process. This justification is meant to convince the directors and owners of the

company.

4.2.3 The form of the plan is:

The Export Marketing Plan should be in written form (although some advanced Western

exporters incorporate export planning in their computer-driven corporate planning). Parts

of the EMP can - selectively - be distributed within company.

Elements of Export marketing plan

Introduction & mission

The introduction should include a short historic track record, the critical success

factors which have brought the company to its present status and performance

(company s reason of existence) and a brief statement on what company is, what

company does (business concept), why company does it (motivation), when and where

company does it (market and planning horizon), and how company does it (your overall

strategy).

The Mission statement is like a company charter, which should summarise your

company goals, your company added value, and your target market(s).

Current Market Position

It is description of current market position, which is the starting point for future

international market expansion, by using marketing mix.

Product

Elaboration on present product assortment; what products does company sell, what is

their market position, and what competitive alternatives are available in the market?


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Place

What is the current market coverage, which distribution channels does company use, and

how does that relate to the competition?

Price

What is the pricing policy, to what extent does company apply different pricing from the

competition, and how does company apply pricing flexibility in order to promote sales

(e.g. discounts, quantity offers, contractual tenders etc.)

Promotion

Describe the promotional tools that company employees i.e. promotional mix

(advertising, trade fair participation, Direct Marketing, e-Marketing etc.).

Market and Industry Trends

Describe the past, present and future developments that take place, are envisioned

to take place, or have taken place in current and potential future markets, including

particular segments: Try to identify workable market segments, and relate these to

consumer behaviour, procurement practices, differences in the distribution system,

regulations, fashion, economic, political and technological developments, innovation, and

of course competitor activity. Company should try to identify the most promising market

(segment), providing concrete business opportunities. One can make use of the market

surveys that are available in the market information database.

Export Audit

Company Audit

The company audit, a self assessment of a company's Strengths and Weaknesses,

shows strong resemblance to the so-called supplier quality assessments as performed by

buyers. A key characteristic of the company audit is that the elements covered are all

controllable by the company management. At this stage, the Strengths and Weaknesses of

the company must be described, related to the expansion strategy. 5-M method can be

used: Men, Means (resources), Methods (management), Machines, Measurables

(marketing impact, customer and employee satisfaction, qualitative certifications) and

audit the company according to the 5Ms.


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One has to take into consideration that in the international markets an increasing

emphasis on quality management requires companies to emphasize process performance

(methods) and has to strive towards continuous performance improvement (measurables).

A company audit should take these issues into consideration!

Market Audit

The market audit is an external analysis of the Opportunities and Threats in the

market. A key characteristic of the market audit is that the aspects covered are market

conditions which are uncontrollable by the company management. At this stage,

opportunities and threats of your current and target export markets must be desribed. One

can make use of the STEEP methodology: Identify opportunities and threats related to

Socio-cultural factors, Technological factors (barriers), Economic factors, Environmental

factors and Political factors related to trade.

SWOT conclusions

In the ideal situation, the findings of the Strengths, Weaknesses,

Opportunities and Threats (SWOT) analysis as carried out as part of the

export audit, will provide numerous opportunities that match with identified

company strengths. However, in reality, the findings will often show several

threats in the market that correspond to weaknesses in the company. The

main challenge here lies in addressing the weaknesses and transforming them

into strengths, while optimising the impact of once strengths to tap identified

market opportunities. One has to remember that a threat is considered a threat

because the company is unable to deal with it. It has an associated weakness.

If the weakness is transformed into strength, the threat will disappear (and

may even become an opportunity).

The identified opportunities and threats should be considered as

drivers for company adaptation and improvement. It is important to realize

that the market conditions can not be changed, and for that matter they

enforce the direction the company should take towards market entry.

Remember that the strengths and weaknesses are controllable whereas the

opportunities and threats are given market conditions.

Competitor Analysis


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Now that company has conducted company s own SWOT analysis, it

should try to identify the main competitors in the target markets. What are

their strengths and weaknesses and their expected strategic moves in relation

to the opportunities and threats.

Remember that the opportunities and threats are not only drivers for

your company performance but will also direct the other players in the

market.

Market Assumptions

Describe the underlying assumptions that may impact on the plan.

Relate these assumptions to for example the economy (slow or fast economic

growth), distribution pattern, product (life cycle) development, technological

and regulatory developments, stability or dynamism in company s target

markets, company s financial situation (e.g. cash flow). The more realistic

assumptions are, the more accurate plan and budgeting can be. If the

assumptions change substantially, the plan (and budget) needs to be adapted.

Export Objectives

Based on the outcome of the audit, one should be able to formulate

sound objectives. These objectives should provide the building blocks for

your company s targets. Therefore they should be SMART: Specific,

Measurable, Achievable, Realistic and Time-bound.

Specific: the product(s) and market(s) should be specified;

Measurable: the objectives should be quantitative, expressed in

terms of sales value, sales growth, market share, number of customers

etc.

Achievable: the objectives should be based on company s

strengths and its critical success factors (the internal potential) and

market opportunities (external potential);


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Realistic: do not chop of more than you can chew and that

needed investments will remain in relation with the expected yield;

Time-bound: use a planning horizon to reach goals and limit the

earn-back period.

It is preferable to formulate short term, medium term and long term

objectives.

Market Entry Strategy

Strategy Summary

In the strategy, one has to develop a sense of direction for company.

Based on the conclusions of the export audit and competitor analysis, it will

be possible to develop the strategy to meet the objectives. It is essential to

determine the market (segments), choose the most suitable distribution

channel and select the right trade partner. The appropriate positioning should

offer the competitive edge company needs vis-à-vis the competition, to

outperform them based on customer value.

Markets & Segments

When selecting target markets, company will have to determine market

(segment) to focus and reason behind it. In this respect, consider market size

and in particular market growth, specific segments, particular niches,

developments in customer needs and customer satisfaction, physical and

cultural proximity, and alertness of competitors.

Positioning Strategy

Based on a clear understanding of the customer needs in defined target

markets, company will have to clarify how business offering meets the

perceived customer needs. The resulting product/market mix should include

what company sells, at what price, where company sells and how company

sells it. How does company s product/market mix compared to the


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competitors marketing mix? To what extent and in which areas does

company differentiate from the competition.

Product/market mix should make it clear for customers whether

company is aiming; for the top end of the market, at medium level, or at the

lower end. The positioning based on a blending of perceived and physical

added value, impacts on the choice of distribution channel, product quality

and warranty, business communication and pricing.

Branding Strategy

When it is decided to operate in a foreign market under own brand

name, company will have to realise that substantial investments will be

required. Therefore, it is only advisable to do such if it will lead to higher

revenues, create binding and stimulate repeat purchases, and company s own

brand and company image is appreciated by the trade.

Therefore, alternatives to branding should be considered: most

outsourcing companies in Europe operate under their own brand name or

private label of their downstream buyers, or demand production according to

specifications, with or without licensing agreement.

Product Strategy

How can the product range be developed in accordance with the

customer needs and prevailing market conditions (competition and rules and

regulations) in the target market(s). Can your existing product assortment be

used or does it need adaptation?

Features/benefits analysis

Do products offer features (physical property of the product) or

benefits (usage added value) that add value to the customer? Are there

elements of intrinsic product which are not appreciated by customers? One

has to remember always that product safety, recyclability and user-

friendliness are dominant success factors in the European Union due to

legislation.


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Unique selling proposition of your products

Do products offer unique properties that are an incentive to customers

to buy it? One should try to name at least one USP per marketing P (product,

place, promotion, price) since this will help to formulate sales message.

Product development

It will be discovered that only in exceptional cases product will be

directly acceptable to the market. Therefore product development capability,

in relation to market demands is of crucial importance. Moreover, at a higher

level, not only product development but more so process management

capability is a key issue for success. When company s process reaches

European conformity (including research and development processes), that

will attract customers who will assist in production according to required

specifications. In this respect, consider the importance of compliance and

assurance with management systems (e.g. ISO 9001:2000 for quality

management).

Product packaging

In most cases packaging is one of the product features that needs

market adaptation. Packaging includes all aspects of the package that holds

product and must be practical, convenient and promotional. Issues of

engineering, design, graphics, distribution and marketing enter into

packaging solutions for exports. In the EU three new packaging issues have

emerged: environmental concerns, safety concerns, and what we call

packaging as product . In most cases it is advised to include the trade

partner in the packaging adaptation decisions.

In determining your product portfolio for export, you have to consider

the following critical success factors:

Product life cycle stage

Does product fit in the current life cycle stage in the market?

Product profitability

Does margin justify market entry efforts?

Product seasonality


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Pricing Strategy

In many cases, company will not be able to dictate its own prices.

Information from the market research should give the insight into the

prevailing retail and wholesale prices, appropriate margins and competitor

prices. Some considerations that have to be made when determining a pricing

strategy: Cost, demand, competition, image, segment. Also, one need to

consider what countermeasures competitors may take. Will they strike back?

Will they be forced to defend themselves aggressively? Are they in such a

secure position that they can take long term actions to undermine your

position?

One may choose out of four basic pricing strategies:

Cost-plus pricing:- In cost-plus pricing, one looks at the cost of what

one sells. That is, productions costs and add on the profit need to be made.

Cost plus means Cost plus profit. This strategy is used mostly in opportunity

marketing. The focus is more on selling instead of sustainable long term

marketing.

Competitive pricing:- With competitive pricing is established, own

market price by benchmarking with competitors prices and differentiating

through marketing mix incentives. The result should be a better price

performance ratio than the competitor average.

Penetration pricing:- One can adopt penetration pricing by applying

low margins or even apply marginal costing (in case present sales cover the

contribution to overheads and one still has spare capacity to utilise) and sell

at the lowest price of all the competitors. The focus is on entry and high

volume. A negative aspect is that one will also receive a low quality image

(price fighter) which may hinder upward marketing later on.

(Perceived) Value pricing:- One can adopt value pricing in case there

is no competition (yet) or when the product is perceived as unique or


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superior. The volume may be small, the margins are high, which offers one

the opportunity to lower the price at a later stage and increase volume.

Distribution Strategy:- A proper Place produces profits!

The first decision to make is whether to go direct or indirect to the new

market. Indirect means, that the complete export activities are taken care of

by an exporter or agent or that the complete import activities are taken care

of by an importer or agent.

When you decide to enter the market directly, you should realise that

you should take care of in-market stocks, in-market promotion, in-market

distribution and in-market sales. In such case, it may be very difficult to keep

the investments in relation to the expected yield!

When formulating a distribution strategy, one must ask himself:

What am I selling?

Who are my prospects?

Where are they?

How can I reach them?

How does the distribution channel work?

What does it imply to sell through this channel (trade margins)

How many channels should I use?

When one manages to follow the product flow upstream, from the

front-line (profile of the end consumer) to importer, one will be able to select

the right market entry mode. This mode may include: Exporter, agent,

importer/wholesaler, manufacturer (co-maker / subcontracting), OEM

(original equipment manufacturer), retailer, mail order company, independent

sales representives, Internet sales, or joint marketing agreements as supplier

to a large marketing company.

Promotional Strategy:- Promotion boosts purchases!

Defined narrowly, promotion means ways of creating awareness or inducing

people to buy.


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The promotional mix is a range of techniques, whereby one initiates,

increase and maintain awareness of what one offers to his customers, in the

most cost-effective way. As part of the mix one can use the following

ingredients: Direct Marketing, advertising, trade shows, personal visits, web

advertising, in-store and distribution channel promotion, free publicity,

catalogues and brochures (CD ROMS).

The AIDAS formula helps to remember the 5 key factors that a good

promotional mix must realize:

Get Attention;

Capture Interest;

Create Desire; that

Leads to Action; and

Customer Satisfaction

Management responsibilities

Indicate the management requirements to manage the export fitness

and market entry efforts. Who will be responsible, how will the operations be

guided, which systems will be in place and how will the workload be

divided? Also, how will the export marketing activities, and the resulting

claim on the company's capacities and resources, be balanced (or controlled)

in relation to the domestic marketing efforts? The export venture should by

no means jeopardize the company's position in the domestic market. Consider

critical control points and contingency plans in order to manage the risks of

the international adventure.

Action plan

Develop an action plan for export start-up (or expansion), which is

based on the export audit and competitor analysis (actions needed in order to

become competitive and to tap the opportunities), which supports the

objectives and strategies and that provides detailed actions showing timing


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and costs. Consider a spreadsheet, detailing when key activities start and

finish, and how they dovetail into each other.

Budgets and forecasts

The last, but certainly not least important aspect of the export

marketing plan is of course the financial plan. One should include a section

on financials, demonstrating the effect marketing activities will have on

revenues and profitability. First an export sales forecast should be made up,

covering a period from 1 to 3 years. Based on this forecast, an export revenue

projection should be made, followed by a budget of export expenses. This

will result in the profit and loss projection

of the export venture.


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5. DATA ANALYSIS

As a part of EMP it was necessary to do data analysis. It involved doing the

macro analysis at first. In this part general market conditions of Europe were analysed.

SWOT analysis followed afterwards. In SWOT analysis company audit according to the

given criterions was done to know the Strengths and Weaknesses of the company.

Market audit was done to know the Threats and Opportunities present in the European

market .Lastly competitor analysis was done to asses the ability of Rathi to face the

competition.

It is worth noting that entire work of analysis was done according to the criterions

suggested by CBI, Dutch consultancy. Conventional management concepts were not

used.

5.1 SOURCES OF DATA

Primary data:- Rathi has been assessing itself for years, it has one of the most extensive

database about company. Each department keeps its own database.

Secondary data:- From the past, Rathi has been collecting market intelligence

religiously. It possesses comprehensive intelligence about European market.

CBI website was another source of secondary data. It provided all the directives

for preparing EMP. The articles about European market access requirement, marketing

through website, market conditions across Europe and collecting data from European

market through internet were posted on website.

Some European websites were also used.

5.2 MARKET AND INDUSTRY TRENDS:-

Before doing investment in any kind of market one must have confidence that

there is fair chance of market prospering. To establish such a confidence, economic

indicators can be used as deciding factors.

5.2.1 Industrial Confidence:-

General economic condition influences both consumer and industrial demand as a

consequences influences demand for engineering products. The table given below

displays some main indicators & forecast for the industry as a whole. The indicators


WEBSITE 29

show cautious recovery & positive trend in investment & industrial trend. This is a good

market signal for exporters from developing countries.

Main Indicators 2003 2004 2005 2006( F )

Private Consumption 1.2 1.6 1.6 2

Government Consumption 1.5 1.8 1.1 1.2

Investment -0.5 2.7 2.6 3.3

Investment in Machine Equipment

-1.1 3.1 2.8 3

Investment in Construction -0.4 2.3 1.8 1.6

Industrial Production 0 3.1 1.3 2.2

Source: Eurofer (July 2005)

TABLE 5.1 DEVELOPMENT OF INDICATORS EU ECONOMY (EU 15) 2003-06-

YEARLY CHANGES (%)

5.2.2 Economic outlook European Union.

The economic growth in Western Europe in 2005 is predicted to recover slowly,

growing at 2% on average. France & Germany are predicted to grow more slowly than in

2004. In 2006, growth is expected to be somewhat higher. Most members are forecast to

grow faster than they will in 2005. The economies in accessed countries Poland (5.7%),

the Czech Republic ( 3.8%) have grown above the EU -15 average. In 2005 they are

predicted to grow about the same rate. This is again a positive sign for DC Exporters.

5.2.3 New EU Members & Opportunities for Exporters from Developing Countries.

Mechanical Engineering Production in Poland is larger than any other new

member. Second is Czech Republic & third is Hungary. Numerous small businesses from


WEBSITE 30

these countries are serving as workbenches for western European clients. The sector

focuses on standard machines for

Textile and Food processing

Machines for Metal Production,

Mountings & fittings,

Pumps

Tools & conveyors.

Most of the companies have low productivity. They need to invest in

modernisation. Some companies look for foreign partners or investors. These countries

are showing increasing demand for machinery, tools, component and parts.

These countries have major advantage in labour cost compared to EU 15. This

made them an interesting area for EU 15 companies, especially to have manufactured or

processes outsourced. However their advantage is labour cost is disappearing fast and

their salaries increase almost per month. Industry expects that within 3-5 years. EU 10

will be normal competitors for EU 15 member states since the major share of their cost

advantage will have disappeared within that period.

This development offers opportunities for Exporters from developing countries. In

order to remain competitive, companies within EU 10 will have to rely on developing

country supplier. Therefore Czech & Polish manufacturers are exploring the possible

ways to cut costs & outsource some production processes to lower wage countries.

Many investments are planned in the new EU countries. There are plans for

building factories. All this offers goods opportunities for Exporters of engineering

Products from India to focus their attention on Czech Republic, Poland & Hungary.

5.2.4 Trends:-

Slow Changing Trade Patterns:- Use of internet in sourcing the product is

getting accepted slowly despite the fact that personal contact in dealing remains very

important. Engineering Products with relative low technical complexity such as

couplings, V belts and ball bearings are selected via internet auctions. This brings DC


WEBSITE 31

exporters closer to EU market at relatively at a very low cost. He needs to display his

product on website.

Transformation accession Countries:-

The transformation of Central and Eastern European states into market oriented

economies is beneficial to EU mechanical engineering. A division of labour has arisen

which enables EU firms to utilize a cheap labour supply to improve price competitiveness

in international market. So many west European countries have transferred parts of their

production to Poland, the Czech Republic, Hungary, Slovakia, Slovenia and Romania

The production of standard products & parts are being transferred to these countries.

Here again the exporters from DC countries have cost advantage over accession

countries.

Drives & Transmission Group: This product group is by far largest to be imported by

EU countries (Euro 50.7 Billion) with positive growth in demand. Germany is the largest

importer then come France, UK, Belgium.

Developing Countries such as China (2% share), Turkey (1 % share) & Brazil (1

% share) are exporting to EU Countries in this category.

5.3 Export audit

5.3.1 Company audit:

SWOT analysis of our organization was done. At the same time the Export Audit

Documents was received wherein CBI has given their detail analysis about Rathi

Transpower Pvt Ltd.

Both analyses were combined together to present SWOT Analysis of Rathi

Transpower Pvt. Ltd.

Audit

Category

Strength Weakness Action Plan


WEBSITE 32

Men

Have Loyal workforce ,

Skilled manpower

Work is routine

oriented. Ageing

workforce

Good Account

Managers.

Means

Sound cash Flow &

have good bank

relations

Methods

Every Dept in the

organization has his own

set of objectives to

follow. Performance of

each Dept is monitored

& reviewed every three

Month in Management

Review meeting.

No professional

market

information

system.

ISO 9001-2000 Quality

System is followed

R & D activities are

strong & have ability to

New product lines. Have

launched high Speed

Performance Coupling

in association with

Bibby Transmission

UK.

Has professional &

organized marketing

team

Production

Production CNC


WEBSITE 33

Methods are

labour intensive

machines are

being

installed in

phased

manner.

Method

Low Degree of

computerised

manufacturing

Measurable

Sustained the sales

growth over last 5 years.

Performance of all the

department are

monitored on regular

basis.

Many new customers

have been developed in

last 3 years in the

domestic & export front.

Have successfully

developed new product

e.g. High Performance

Coupling to cater niche

market.

ISO 9001-2000 Quality

System is followed

Product

Manufacture almost all

types of Coupling under

one roof.

Delivery of casting

has few problems

Good workmanship. No CE for

Machine

Directive.

Process to

find out

information


WEBSITE 34

about

couplings

inclusion in

CE.

Made many

improvements on

existing designs. Have

new company for

tooling

Need to learn

more about

harmonized EN

standard for EU

Have ATEX marking.

Good Measuring

equipment available

with well maintained

tool room.

Pricing

Pricing is competitive. CBI wants to

check price

competitiveness

Have not made any price

increase since FY 2001

in the Market..

Have price structure of

all our major

competitors.

Terms of payment are

L/C for new customers.

For regular distributor,

we offer 90 days credit.

As per CBI , it is

risky

Opening a

L/C for small

order value is

costly.

Sales Quality of Brochure is Presentation of Comments


WEBSITE 35

Promotion good. company website

to be improved.

from CBI

awaited

Logistic

Information

Can offer on CIF base

port basis using their

expertise in shipping

cost effectively in India.

No Finished

products are kept

in stock.

Can be kept

once we

know Market

requirement

over the

period of

time.

Can offer CIF with min

order value of Euro

3000/-

Using only

fumigated wood.

Should use pine

wood.

Communic

ation

Quote is given in 48

hours for Std items. For

Non Std Items inquiry is

acknowledged & offer is

given in 4 days of time.

All the orders received

are acknowledged Same

day & planned date of

dispatch from our works

is informed in 6 working

days to the customer.

After shipment is

effected, we update

customer about shipping

details & Expected date

of arrival at destination


WEBSITE 36

port.

Export

Knowledge

And

Market

Orientation

Have long experience

with many different

countries.

Market entry

strategy , export

plan, budget

For export need to

be formulated.

Attending

CBI seminal

Expro 55

To go ahead

in this

regards.

Are informed about

price structure of

competitors.

Do not read proper

magazines

CBI will send

list of

available

magazines.

Manageme

nt

Management is effective

& motivated.

Need to build

export cell.

Have stable workforce

R & D

capability

Regularly developing

new products

Can further

improve this dept.

Market

Possibilitie

s.

Are very prosperous Need to have a

well built &

structured

Strategy.

Attending

CBI seminal

Expro 55

To go ahead

in this

regards.

TABLE 5.2 COMPANY AUDIT

5.3.2 Market audit:

Audit

Category

Opportunities Threats Action Plan

Governmen Neutral


WEBSITE 37

t &

Internation

al

Regulations

Macro

economic

Trend

Shifting to India as

source can be well

capitalized.

Rathi will face

competition from

Chinese

companies in this

field

To check

actual

situation &

take Action

accordingly

Czech Republic , Poland

& Hungary are good

markets in

This regards

Branch

perspective

Automation is growing.

This will enhance

couplings demand for

Technologi

cal

Developme

nts

Neutral

Competitio

n in

national

&

Internation

al Market

In a position to compete

Chinese Prices.

Demand

Trend

Positive.

Others Can work as Possible

versatile partner for EU

Not able to get the

message across.

Plan to work

out structured


WEBSITE 38

traders Strategy with

the help of

CBI

to enter in

West Europe

Market

Transport

Longer Lead times

Will consult

CBI on this

matter

TABLE 5.3 MARKET AUDIT

5.3.3 Competitor analysis:

This is the detail chart which gives brief picture of Rathi Couplings & its competitors.

Please see

COUPLI

NG

RAT

HI

FENN

ER

FLE

ND

ER

DAVID

BROW

N

RENO

LD

REXNO

RD

WELM

AN

BIBBY

FLEX

IBOX

COUPLIN

G &

DRIVES

KTR DODG

E

JAW

FLEX

L,SW,

RRS,

HRC,

L

NE

UPE

X

----- SPIDER

FLEX

----- ----- ----- ----- KTR

ROTEX

-----

RFC

A &

B

RSC70

6449

----- ----- ----- ----- 14 A1-H

etc

-----

TYRE

T / TO

FENA

FLEX

F40

-----

----- TYREF

LEX

TY40

OMEGA

E

----- ----- ----- ----- PARAF

LEX

PX40

RST

SPAC

ER

SM

SPACE

R

-----

----- RSS

SPACE

R

ES

SPACE

R

----- ----- ----- ----- PS

SPACE

R

PIN &

BUSH

RC,R

B

CONEF

LEX

PINFLE

X,DISC

FLEX

BIBBY

EFLEX

PF

1/3,P36

C/3P

E FLEX

METALL

IC DISC

LM /

EM

TRC

ARP

EX

THOMA

S

TURBO

FLEX

META

STRE

AM

LMC

ARS

,AR

D , DJ

TSKS ,

LS


WEBSITE 39

H

TORSION

ALLY

SOFT

HYFL

EX

HOLSE

T/REN

OLD

HY

RB

GRID

GRID

FLEX

FALK

GRID

LIGN

LGF

T

T

COUPL

ING

RATHI LOVEJ

OY - F

POOLE

DAVID

BROW

N

RENOL

D

KOP-

FLEX

WELM

AN

BIBBY

JAURE FALK FLEND

ER

SIER-

BATH

(AJAX)

GEAR

FLEX

GEARF

LEX

SIER-

BATH

MAX

BORE

LINKM

ASTER

GEARF

LEX

FLEXA

LIGN,

FD

AGMA,

FDT

TYPE

HA

G - 20

ZAPEX

COUPLI

NG

LFG

SERIES

- F

TYPE

GF 8

HAS

TYPE-

HM

GFD/GF

DW

SERIES

- 1000

TABLE 5.4 COUPLING COMPATIBLE AND EQUIVALENT COUPLING

CHART

Rathi makes almost all types coupling with few exceptions. Against each type of

coupling category, various global competitors with whom we have to compete with, are

mentioned.

As mentioned earlier efforts are being made to find out details of our competitors in

German Market. This information will give their market share in German Market.

Comparison of Rathi Couplings with its Competitors with regards to Price/ Quality.

With regards to quality, Rathi couplings are at par with its GLOBAL Competitors.

Rathi have been approved by leading pumps OEMs around the world as their main

source for Couplings.

Technical comparison of Rathi couplings to its equivalent Competitors size was also

done.

Sr.

NO.

Hub

List

Price

(A)

Rathi


WEBSITE 40

Lovej

oy

Marti

n

Mask

a

EPT

Lovej

oy

Martin Maska

EPT Rathi

Price To

Distribut

or

1 35 3.25 3.10

3.25

3.25

0.98 0.93 0.98 0.98 0.58

2 50 3.25 2.90

3.25

3.25

0.98 0.87 0.98 0.98 0.58

3 70 5.05 4.80

5.05

5.05

1.52 1.44 1.52 1.52 0.90

4 75 5.80 5.80

5.80

5.80

1.74 1.74 1.74 1.74 1.04

5 90 8.90 8.90

8.90

8.90

2.67 2.67 2.67 2.67 1.60

6 95 13.70

13.60

13.70

13.70

4.11 4.08 4.11 4.11 2.45

7 99 17.30

17.20

17.30

17.30

5.19 5.16 5.19 5.19 3.06

8 100 25.60

25.50

25.60

25.60

7.68 7.65 7.68 7.68 4.80

9 110 35.00

35.00

35.00

35.00

10.50

10.50

10.50

10.50

6.20

10 150 44.80

44.80

44.80

44.80

13.44

13.44

13.44

13.44

7.92

11 190 70.00

82.00

70.00

70.00

21.00

24.60

21.00

21.00

12.35

12 225 85.00

96.00

85.00

85.00

25.50

28.80

25.50

25.50

15.00

Prices in US $

TABLE 5.5 JAW COUPLING HUBS PRICE ANALYSIS

Note: Price Reference

1. Lovejoy: Master Distributor List Efft. 01/01/2005

2. Martin: Current Price List

3. Maska: Product Catalog-22

4. EPT: OEM Price List W.E.F. 15/11/2004

SIZE FLENDE

R PART

1

FLENDE

R PART

4

PRICE

SEK

NET

PRICE

IN EURO

RATHI TO

DISTRIBUT

OR( )

PRICE

SEK

NET

PRICE

IN EURO

RATHI

TO

DISTRIB

UTOR(


WEBSITE 41

)

B 68 227 12 5 146 8 3

B 80 275 14 6 156 8 4

B 95 345 18 7 200 11 5

B 110 459 24 12 405 21 8

B 125 644 34 16 549 29 11

B 140 871 46 21 710 37 14

B 160 1165 61 28 949 50 19

B 180 1525 80 36 1146 60 24

B 200 1922 101 46 1525 80 31

B 225 2377 125 54 1724 91 36

B 250 2898 153 66 2169 114 44

TABLE 5.6.1 PRICE LIST OF N-EUPEX (FLENDER / RATHI)

SIZE FLENDER

COMPLETE

COUPLING

PRICE SEK NET PRICE IN

EURO

RATHI TO

DISTRIBUTOR( )

B 68 373 20 8

B 80 431 23 10

B 95 545 29 12

B 110 864 45 19

B 125 1193 63 27

B 140 1581 83 35

B 160 2114 111 47

B 180 2671 141 60

B 200 3447 181 77


WEBSITE 42

B 225 4101 216 89

B 250 5067 267 110

TABLE 5.6.2 PRICE LIST OF N-EUPEX (FLENDER / RATHI)

KW/

100

rpm

SIZE TORQUE

Nm

Max

rpm

PILOT

BORE

MAX

BORE WT MI

5.2 LFG

100 497 7600 10 35 4.2 0.0075

10.5 LFG

101 1002 6300 16 50 11 0.035

11.5 NGC1 1100 6700 20 50 10 0.12

26.1 LFG

103 2492 5000 16 60 15 0.05

28.5 NGC2 2720 6100 30 60 15 0.2

47 LFG

103 4486 4000 30 75 25 0.12

51.5 NGC3 4920 5200 40 75 26 0.5

89 LFG

104 8495 3350 35 90 39 0.238

96.5 NGC4 9220 4500 50 90 40 1

136 LFG

105 12982 2800 40 110 57 0.488

150 NGC5 14320 3950 60 110 62 2.16

209 LFG

106 19950 2500 45 125 85 0.75

230 NGC6 21960 3500 70 125 85 3.7

366 LFG

107 34936 2100 50 140 103 1.313

390 NGC7 37250 3250 90 140 120 5.3


WEBSITE 43

470

LFG

108 44864 1900 50 160 138 2.125

515 NGC8 49180 3000 100 160 180 9

585 LFG

109 55841 1700 70 180 210 3.75

644 NGC9 61500 2600 120 200 215 12.5

856 LFG

110 81709 1400 70 220 277 7.625

930 NGC10 88800 2300 140 220 295 30.8

1146 LFG

111 109391 1250 110 260 550 14.5

1265 NGC11 120800 2100 150 260 560 57.4

1532 LFG

112 146236 1120 120 300 710 22

1600 NGC12 152800 1900 170 300 725 89.5

2084 LFG

113 198927 1000 140 330 980 34.5

2880 NGC13 275000 1550 190 320

2980 LFG

114 284455 900 150 370 1320 72.75

3620 LFG

115 345545 800 200 410 1700 88.25

3980 NGC14 380000 1400 210 340

4765 NGC15 455000 1350 230 360

6250 LFG

116 596591 710 200 455 2550 172

6800 NGC16 650000 1150 260 450

8375 NGC17 800000 1050 300 490

8890 LFG

117 848591 630 225 520 3620 309


WEBSITE 44

10730 NGC18 1025000 950 320 540

11770

LFG

118 1123500 560 250 610 4860 491

12700 NGC19 1200000 825 400 600

15521 LFG

119 1481550 500 250 710 6380 753

TABLE 5.7 TECHNICAL COMPARISONS BETWEEN RATHI AND FENNER

GEAR COUPLING


WEBSITE 45

6. WEBSITE OPTIMISATION

6.1 QUALITY WEBSITE: A MUST: - A quality website for a DC company is a must

these days. A study done by the German researcher GfK

shows that most important

target groups use the internet heavily. The study has shown that 76 percent of purchasing

decision makers in Germany rely primarily on Internet as a research tool in their

purchasing process, 29 percent do research exclusively online.

In Europe e-commerce has not only become a way of doing business but a part of

routine. Whole the European corporate world has adopted internet as a primary source of

information. It became apparent that website will be main promotional tool. It will be

visited by existing customers. Interested customers may be directed towards it through

search engines. Prospective customers may be referred to it by brochures. Needless to

say, improvement in website was the first ever step in the execution of EMP.

First it was necessary to evaluate the existing website to find the flaws in it.

Experts from CBI were asked to give advice. After their comments, a decision was

reached to improve the website drastically.

6.2 PROMOTIONAL PLAN:-

In the promotion plan, the organisation describes what they would like to achieve

with the website and in what way this should be done. These results into an action plan,

for which goes: the more detailed, the better it is. A good promotion plan shows in very

small detail how the determined goals and target groups are to be reached. The process of

promoting website is a dynamic process and consists of four steps. Figure 6.1 displays the

process and its dynamic character. After the completion of the process, its evaluation will

show in what way changes or improvements are necessary.


WEBSITE 46

Figure 6.1:- Promotion policy website

It is important to formulate which way to go with website. One has to determine

the goal of your website. Without detailed and clear goals, a website can t be used

efficiently and effectively. Very often a website presents the organisation structure itself

instead of presenting information in accordance with the needs of your clients.

Companies which start a website first have to define their goals. But also for companies

that have had a website for some time, it is a useful exercise to redefine their website

goals annually. Internet markets change continually and rapidly. One must do this;

otherwise one may be developing something very unique, it could turn out to be useless,

since customers do not need it.

6.3 CONTENT GOAL MATRIX

A valuable instrument to develop the content goals in more detail is the content goal

matrix. An example in table 6.1 will demonstrate the power of this instrument. Assume

you are a DC exporter and you are focusing on Germany. Then four columns of the

content goal matrix can be filled out.


WEBSITE 47

Table 6.1:- Content goal matrix

Target groups (first column)

In the first column of the matrix one should fill out the most important target groups you

would like to target with your website. E.g. do you target consumers or businesses? Do

you focus on distributors, importers, agents or traders? Or both? And which EU-countries

are most important for you? It is also possible that several target groups are relevant. As a

consequence, several goals can be determined per target group as well. In this case,

formulate well-separated goals per separate target group. In this example the two main

target groups are:

1) New importers in Germany (most important)

2) Existing importers in Germany

Action goal (second column)

Here you can fill out the actions you would like to achieve with the website. For example,

you want the new importer in Germany to ask you for a sample by filling out a form on

your website. Another action goal could be that the new importer from Germany makes a

phone call to your sales department.

Attitude goal (third column)

In order to make him actually undertake the action you have defined, the new importer

should be convinced that you are a reliable supplier of a quality product. In other words:

your website should form his attitude! After (and only after!) you have created this

attitude, the action you have defined, can be undertaken. In this case, the new importer


WEBSITE 48

must have an attitude that you are a reliable company and that you are selling quality

products.

Information goal (fourth column)

In order to form the attitude of the new importer, your website should contain certain

elements. In this example, the importer should have knowledge of your product, the

production methods and certification standards and also of your export experiences and

current clients (track record). All these things together will create the right attitude that is

needed to make him undertake the desired action as you have defined with your website.

The second target group for your website could be the existing importers in Germany.

Although they are not highest in your priority list, they are still important. Your action

goal could be to also sell them other products or to have them send you a request for

proposal.

Then they need to know which other products you could supply (information).

They must still be convinced that you are also a reliable supplier for those products

(attitude).

This exercise with the content goal matrix is very important. This is your

framework, your direction for the website. Everything you create, change or maintain on

your website must be done in order to achieve these website goals. It is also useful to help

you make choices, certainly when you also set your priorities.

Priority

When formulating both the marketing- and content goals for your website, it is very wise

to prioritise them. The same goes for the different target groups that you may have:

decide on the most important ones. For example: you have set a goal that you would like

to offer after-sales services through extensive product manuals. But a far more important

goal is to gain new clients through the website. Your priority target group in this case

would be the potential client, which has consequences for the content of the website and

its promotion. Setting priorities enables you to make an efficient and effective promotion

policy and to carry it out.


WEBSITE 49

6.4 WEBSITE OPTIMIZATION:-

Marketing website implies that it should be in a good condition first. Both its technical

aspects and contents should meet certain requirements if one wants to have a maximum

result from your and marketing efforts. This topic describes a model that can be used to

assess your website on its usability. It is based on checklists of experts like Ben Vroom

and Jacob Nielsen.

The following main elements are discussed:

I Contents

II Navigation

III Communication

IV User friendliness

These four elements are subdivided into subjects, which can all be judged

individually by evaluating the thesis that is given. The checklist can be used to set up a

framework for a new website or to optimise existing website, both with regard to contents

and the website promotion.

Contents You can judge the quality of the website contents by means of two elements:

1) Effective and efficient goals

2) correct presentation of information and organization

These elements can be judged by testing in what way the website matches the

thesis. Try to look through the eyes of your target group and evaluate the thesis with for

example Insufficient (I), Sufficient (S) or Good (G). Once you have finished the

checklist, you will have a better idea of which elements of your website are good or could

be improved. The theses can be found in table.


WEBSITE 50

TABLE 6.2:- EVALUATION CONTENTS

Navigation

You can evaluate the navigation of your site by means of the following criteria:

1. Clear layout

2. Workable user interface

3. Clear hyper links

4. Effective homepage

5. Clear page layout

6. Word and PDF files

7. Other points of attention


WEBSITE 51

TABLE 6.3:- EVALUATION NAVIGATION

Communication

The quality of information through the internet can be determined by means of the

following criteria

1) Accessibility of presentation of the information

2) Accessible style and understandable texts


WEBSITE 52

TABLE 6.4:- EVALUATION COMMUNICATION.

User friendliness

User friendliness can be shown by means of the following factors (table 2.4):

1) Fast loading time

2) Platform and browser independent

3) Scrupulous registration

TABLE 6.5:- EVALUATION USER FRIENDLINESS

After going through the checklist you can determine a list of possible refining

points per criterion. You will find that a number of criteria are linked. You can

execute this test on your website yourself; you can have it done by a representative of

your target group, or by an internet expert. He or she will behave like your target

group and execute a test surfing session. This way you can see with your own eyes


WEBSITE 53

how your target group browses through your site. This will show useful refining

points.

Homepage:-

You will never get a second chance for a first impression

The homepage is one of the most important pages of your website. It is your

company's face to the world. Increasingly, potential customers will look at your

company's online presence before doing business with you - regardless of whether

they plan to close the actual sale online. Its main goal is to persuade the (EU) buyer to

visit the other pages of your website. In practice, the EU buyer that visits your

homepage will decide in 8 seconds whether he or she will explore your website or not.

You should give the target group the sort of information that will convince him to

explore your website in more detail.

Recommendations

1 Persuade visitors to continue:- In eight seconds your visitor decides to leave or to

continue on your page. Include elements that convince him to continue, such as track

record, proof of quality (certification), production methods and USP.

2 Tagline:- A website's tagline must explain what the company does and what makes

it unique among competitors. If you have been in business for 70 years and have

served 2,000 clients, then no one can take that away from you. It makes you different.

Locality can make you different if you are the only company in your region selling

what you sell. Being a specialist can make you different.

3 Group all your company information:- Good company information is especially

important if the site hopes to support recruiting, investor relations, or PR, but it can

also serve to increase a new or lesser-known company's credibility. An "About Us"

section is the best way to link users to more in-depth information than can be

presented on the homepage.

4 Emphasize your most important content elements:- Don't just describe what lies

beneath the homepage. Show some of your best (or most recent) content!

5 Don't over emphasize critical content:- You might think that important homepage

items require elaborate illustrations, boxes, and colours. However, users often dismiss

graphics as ads, and focus on the parts of the homepage that look more likely to be

useful.


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6 Use meaningful graphics:- Images are powerful communicators when they show

items of interest to users, but will backfire if they seem irrelevant. For example, it's

almost always more effective to show photos of real people actually connected to the

topic rather than show pictures of models.


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7. MARKET INTELLIGENCE

Market intelligence is continuous process in which form carries out

investigation to find out the information about the market, environment, competitors

etc. It is an ongoing process. Market, environment, competitors are always changing

hence market intelligence is an ongoing process. It is not carried out to find out

specific information. General information which may or may not have any immediate

use is found out. If not of any specific immediate use, it still is useful in understanding

the macro environment. Market intelligence gathered earlier can be useful for the

solution of current problem. Similarly information gathered right now can have some

unanticipated future problem.

CBI suggested a company to have a cutting edge should have most

comprehensive information. Hence intelligence activity was given a boost in the span

of project.

7.1 CERTIFICATIONS

European market has market access requirements. These are

Consumer health and safety market access requirements During recent

years consumer health and safety has become an important issue in

international trade. Public authorities, European consumers and also industries

themselves are extremely sensitive to any negative impact a product may have

during or after its use.

Environmental market access requirements Because of growing

industrialisation in the world, the need for natural resources has grown

enormously, while the production of waste and emissions to the environment

has increased at the same time. Environmental problems such as the

greenhouse effect, depletion of the ozone layer, extinction of species, pollution

of air and surface water have been recognised as serious environmental

problems since a few decades. As a result of the growing need to preserve the

environment, countries worldwide have committed themselves to the concept

of sustainable development . Sustainable development is a process of change

in which exploitation of resources, the direction of investments, the orientation

of technological development, and institutional change are all in harmony and


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enhance both current and future potential to meet human needs and

aspirations. In other words: sustainable development is the development that

meets the needs of the present, without compromising the ability of future

generations to meet their own needs.

Social market access requirements Social issues are important market access

requirements in international trade. Social issues concern both general

labour conditions, such as minimum wage and maximum working hours as

well as health and safety of the employees. European trading partners more

and more request a minimum of social requirements from their suppliers in

developing countries. This is done through social or ethical trading

requirements, suppliers declarations, social responsibility and social

accountability schemes. Exporters to the European Union are not obliged to

comply with legislation on labour conditions in the countries of the European

Union. Companies in developing countries only have to comply with

legislation in their home country. However, the requirements demanded by

the private sector are an important issue when looking at accessing European

markets.

Quality market access requirements The word quality is used in many

situations, in different meanings, because it has several definitions. Quality, or

total quality, means the complete appliance to requirements and wishes of all

parties involved with the product, i.e. final consumers, legislators and other

market parties. Therefore, quality aspects are valid at a business-to-business

level, when buyers are the consumers and it is crucial when the products are

sold to the final consumers, i.e. business-to-consumer. Looking at the

intensive competition and the ever-increasing legislative requirements as well

as non-legislative market requirements, companies have to adapt, adopt and

improve constantly in order to stay competitive. This is directly or indirectly

connected to the quality of the products and/or services provided.

To fulfill these requirements different certifications are required. Intelligence

was carried out to find out to the directives, requirements, procedures and certification

bodies needed to acquire these certifications. Theses certifications are


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CE Mark:- The CE Mark is a conformity marking consisting of the letters

CE. The CE Marking applies to products regulated by certain European

health, safety and environmental protection legislation. The CE Marking is

obligatory for products it applies to: the manufacturer affixes the marking in

order to be allowed to sell his product in the European market.CE is an

abbreviation for Conformité Européenne, French for European Conformity.

The CE Mark indicates that the product it is affixed to conforms to all relevant

essential requirements and other applicable provisions that have been imposed

upon it by means of European directives, and that the product has been subject

to the appropriate conformity assessment procedure(s). The essential

requirements refer, among other things, to safety, public health and consumer

protection.

ISO 14000:- The ISO 14000 family is primarily concerned with

"environmental management". This means what the organization does to:

Minimize harmful effects on the environment caused by its activities,

and to

Achieve continual improvement of its environmental performance.

OHS:- Market Access Requirements from the private sector in the EU very

often include requirements to safeguard a certain minimum for occupational

health and safety (OHS). Especially for suppliers in developing countries,

where labour conditions are not always looked after, European buyers will

focus on OHS. When accessing EU markets, the issue of OHS certainly needs

attention.

OHSAS 18001:- OHSAS 18001 was created via the concerted effort from a

number of the worlds leading national standards bodies, certification bodies,

and specialist consultancies. It stands for organizational health and safety

standards.


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SA8000:- European Union requirements to safeguard the social accountability

(SA). Developing countries are not as strict about social accountability, but to

access EU market SA is essential.

7.2 SEARCH ENGINES

Marketing a website through search engines is called Search Engine

Marketing (SEM). A search engine is a large database that searches many web pages

on the World Wide Web. When people enter keywords into a search engine, the

search engine finds pages based on meta tags, site contents and page ranking. A good

example of a search engine is Google.com, which is used the most worldwide. Search

engines are among the primary instruments that are used to find websites. Research

shows that more than 50 percent of the visit of a website comes from search engines.

That is why a website with good search engine listings may see a serious increase in

traffic. Unfortunately, many websites appear poorly in search engines or may not be

listed at all. This is usually caused by the fact that most owners of websites do not

consider how search engines work. Reaching a good search engine ranking is a

challenge. Submitting your website to search engines is only part of it. It is important

as well to ensure that your web pages are accessible to search engines. It is a process

that requires time and continuous attention, as search engines change their strategy as

well.

In project it was required to find out all about search engines. Top ten search

engines in targeted countries. Search engine submission process. Technicalities like

meta tags, key words etc. and their importance.

7.3 DATABASE:- To contact the customer it is essential to know information,

therefore preparation of database of all the European manufacturers was initiated.

First priority was given to Germany rest of the countries will be followed.

All the important industrial trade associations were found out. As their span

reaches specific type of manufacturer and that to in major number, they will be

targeted in next step.

Similarly information of trade directories was found out. Promotion through

trade directories is more easier than promoting for each manufacturer separately.


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8. FINDINGS

Market in France and Germany will grow more slowly.

Economies in Czech Republic, Poland & Hungary will grow at a faster rate.

Western European countries will continue to shift part of their production base

to Poland, Czech Republic & Hungary to remain price competitive

Labour cost advantage of Poland, Czech Republic & Hungary will not remain

in next 3 to 5 years & they will be normal competitors to EU 15 members.

This will offer opportunities for DC exporters who have cost advantage over

EU 10 members.

Sourcing through Internet / email will become more acceptable in future for

products such as couplings.

Rathi will have to face stiff competition from Chinese suppliers of couplings

in EU 10 member s countries.

EU 10 country member will look for partners from developing countries to

enhance their production base.

Rathi Couplings will be acceptable to in EU member countries as they have

been accepted in the developed countries.

Rathi will require min 1 to 2 years to get along with EU market.

Largest importer of engineering component in European Union is Germany,

followed by Italy then France.


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9. LIMITATIONS

Although preparation of export marketing plan was done before time,

execution was not justified time wise. Some of the elements of plan

require long time span, it was impossible for me to complete each possible

element.

Some of the elements were demanding knowledge and skills beyond my

current capabilities, these elements were not executed by me. Such as

forecasting international demand requires quite a bit of experience, same

with the budgeting which need more veteran financial skills.

EMP was prepared by me taking guidance from my corporate guide. It

must be admitted that however meniscus there is still a chance of personal

bias. Data distortion due to individual perception or personal point of view

may be present which can result in inability of presenting exact situation.

SWOT conclusion, if found out may have suffered above mentioned

drawback therefore we suggested executives from all the departments

should review the SWOT analysis and formulate conclusion.


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10. CONCLUSION

Most of the Export marketing plan was prepared.

E-marketing was chosen as the chief promotional tool.

Evaluation of existing website was done and decision to improve the website

was taken. Conceptual prototype of new website was developed.

All the necessary information about search engines was collected.

Information about various certifications as well as their implementation

procedure was gained.

Market intelligence about European trade directories was done.

Market intelligence about European trade associations was done.

Database of German manufacturers was prepared.

Database formulation of other European manufacturers was started.


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11. RECOMMANDATIONS

Financial budgeting and forecasting requires financial skills and familiarity

with the company. A permanent financial executive of the company should be

delegated the right and responsibility of preparing budget and forecast.

SWOT analysis should be done by the executives from all the departments, so

that each department can make its own contribution. SWOT conclusion

formed by this process will present situation in more exact and useful manner.

First of all, it is necessary to set up an overseas office in the Europe. Till now,

all the major orders are received through distributor. As his interests will be

prioritised than the company s interests, it becomes quite essential to bypass

this channel of order procedure.

In Europe agents are legally well protected. Once employed, they become

semi-permanent entity in order procedure. For each successive order they get

commission, if they are involved only in initial order. Removal of agent is

very hard since law is on their side. This cuts back the profit, increasing the

price at the same time. Only solution that can be employed is to appoint

experienced marketing executive who is familiar with European way of doing

business.

Each company will have different person other than purchase manger who acts

as an influencer or some time decider of the order. After getting database of

European companies, next step is to prepare the database of personnel who are

not only responsible but also influencer/ decider for the new order procedure.

Establishing and maintaining good relation with such personnel will be easy if

earlier mentioned marketing executive is appointed.

Profit gained from the export department demand raise in manpower of export

cell. Additional staff will be handy in case of increment of overseas orders.

To establish and maintain customer base Rathi should provide Customer

Service level of highest Standard.

Market segmentations to be targeted are pump manufacturers, drive and

transmission manufacturers and lifting/handeling equipment manufacturers.

First of all Customers in Germany should be targeted as it is the largest

customer of engineering components. Rathi can then spread its customer base

in France as it has more convenient marketing channels available.


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Website is the initial element of export promotional activity. All the other

elements of promotion will precede website improvement. New website must

be made functional as early as possible.

Website will represent company. Quality of website will be perceived as the

quality of company at the first glance. Professional personnel should be

employed to improve the website so that quality of website will not be

compromised.

Website should provide maximum information with minimum efforts. At the

same time, each piece of information must be highlighted in a professional

way.

Based on information of certifications, procedure of acquiring certification

must be started quickly and must not be prolonged one. All certifications must

be acquired in the sequence as per their importance e. g. CE at first, then

ISO14000, then OHSAS and so on.

Advertisings of company must be published in trade magazines across the

Europe. Quality Brochures, Catalogues on CD, Price List and Product manuals

must be utilised. Supply of Free Samples for testing & approval will also help

in branding Rathi.

Anticipation of trade fairs will make it easier to get good stalls in these fairs.

Prior knowledge of trade fairs will act as competitive advantage over other

non-European supplier. An information extraction process of trade fairs must

be done.


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12. BIBILOGRAPHY

WEBSITES:

General

www.cbi.nl

www.google.com

www.kellysearch.com

Associations

www.hoppenstedt-verbaende.de

www.letrombinoscope.com

www.verband.info

www.hollandexports.com

www.euromonitor.com/businesslibraries

www.timebank.gr/www.infote.gr

www.dufa-index.de

www.gewusst-wo.de

www.behoerdenverzeichnis-bw.de

Fuid handeling associations

http://www.pumps.org

http://www.europump.org

www.bpma.org.uk

www.cpmass.com

www.sspma.org

www.asso-afpr.org

www.indianpumps.org

www.the-pda.com

www.sapma.net

www.swpa.org

www.pumps.asn.au

Certifications

www.cemarking.net

http://www.cbi.nl

http://www.google.com

http://www.kellysearch.com

http://www.hoppenstedt-verbaende.de

http://www.letrombinoscope.com

http://www.verband.info

http://www.hollandexports.com

http://www.euromonitor.com/businesslibraries

http://www.timebank.gr/www.infote.gr

http://www.dufa-index.de

http://www.gewusst-wo.de

http://www.behoerdenverzeichnis-bw.de

http://www.pumps.org

http://www.europump.org

http://www.bpma.org.uk

http://www.cpmass.com

http://www.sspma.org

http://www.asso-afpr.org

http://www.indianpumps.org

http://www.the-pda.com

http://www.sapma.net

http://www.swpa.org

http://www.pumps.asn.au

http://www.cemarking.net


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www.cenorm.be

www.export-help.cec.eu.int

www.ohsas-18001-occupational-health-and-safty.com

www.sa-intl.org

Search engine information

www.searchenginewatch.com

www.whitelines.nl

www.scrubtheweb.com

www.websiteoptimization.com

http://www.cenorm.be

http://www.export-help.cec.eu.int

http://www.ohsas-18001-occupational-health-and-safty.com

http://www.sa-intl.org

http://www.searchenginewatch.com

http://www.whitelines.nl

http://www.scrubtheweb.com

http://www.websiteoptimization.com


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13. ABBREVATIONS

EMP: - Export Marketing Plan Rathi: - Rathi Transpower Pvt. Ltd. CBI: - Center for promotion of import (Dutch management consultancy) DC: - Developing country EU: - European Union L/C: - Letter of Credit

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Preparation and partial execution of export marketing plan

Business

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