Vard Haman

8/13/2019 Vard Haman

1/21

PREFACE

The project assigned to me was "market s tudy of Vardhman for

internationalization". A CASE STUDY FOR MYANMAR.

I thus got an opportunity of working with VARDHMAN threads Ltd. the

manufacturers of threads, acrylic fibres, arn ! steel.

The work has been carried oer a span of # months. The scope of the

work undertaken by me includes the collection of secondary data form

arious means ! analysing it.

I, thus got an opportunity to understand arious factors for

internationalisat ion, law pertaining to i t and the procedure for

establishing new markets.

$


2/21

ACKNOWLEDGMENT

% report, when prepared with true spirit goes a long way in enriching

many peoples knowledge and also it seres as an ital ingredient in the

learning process of the indiiduals inoled in preparing it.

I am deeply greatful to Mr. Gurjeet Arneja &'.(. marketing) for

proiding me the opportunity to study the research which proided me

with aailable insight.

I would like to e*tent my heartiest thanks to Mr. Vipu Anan! &%sstt.

+*ecutie (arketing) my +*ternal guide for proiding me with aluable

idea, iews ! suggestions, in preparing the report.

I am thankful to rof. -.V. amanan, rof. /ubroto 'anguly ! all the

faculty of /risim for proiding me their suggestions ! guidance in each

step.

0


3/21

"ACKGROUND OF THE PRO#ECT

V%12(%3 T2+%1/ LT1. has since increased its production

capacity is planning to look forward for the new markets. In the initial

step they are looking at the neighbouring countries such as (yanmar,

/rilanka, 4angladesh ! 3epal.

%s the 'ot. is in the process of upraising smallscale industries which

will force 3' sector to come up with growth. Vardhman felt a strong

need to e*pand their market.

5hen I discussed the project with (r. Vipul %nand &+*ternal guide). It

was decided to hae a oerall scan of the country. egarding both (acro

! micro ariables. /o it was mainly the analysis of secondary data to look

whether it is worth going for e*port in (yanmar.

6


4/21

RAT$ONALE OF THE RESEARCH

(arketing esearch is concerned with the authentic and objecties

collection, analysis ! ealuation of information about specific aspects of

marketing problems in order to help management make effectie

decisions. (arketing esearch is not an end in itself, it is a means to an

end and the important is decision making.

The main ationale behind the study undertaken was to proide the

company information about the macro ! micro ariables of the country.

egarding economic, social, geographic ! political information ! to hae

a full scan of the country to proide aluable information whether it is

worth going for e*port in (yanmar.

SCOPE OF THE STUDY

#


5/21

REV$EW OF L$TERATURE

The initial step was to understand the process of how to go about the

project itself . The aim was to unders tand better ision, miss ion objecties

! culture of the organisation so as to ensure that the work done is in

consonance with the oerall goal of the company. In this regard arious

+mbassy, councils, Institutions, 1irectories, magazines, books, websites

searched. There were 7

EM"ASS$ES

Indian +mbassy in (yanmar

8#898#: (erchant /t. ;yauktadu yangon

h. 00

+mbassy of (yanmar

698?@A 3yaya (arg. 3. 1elhi.

h. >


6/21

MAGA%$NES

/+- 3ewsletter 0< th 1ec. $===.

"OOKS

'lobal marketing strategies published by B%I-C D4LI/2I3'

2CD/+ second addition.

'arment +*port ublished by rentice hall of India t. Ltd., $==:

+dition.

WE"S$TES

www. (yanmars.net

www.yangonglabe.com

www.myanmol.com

www.yangon.anglicon.org

www.myanmornet.com

www6.wlwonline.de

www.europages.com

www0.kompass.com

www.e*pobase.com

www.wssn.net

www.asiansource.com

www.asiaone.com

REASON FOR $NTERNAT$ONAL$%AT$ON

&E'PORT(

>
http://www.yangonglabe.com/http://www.myanmol.com/http://www.yangon.anglicon.org/http://www.myanmornet.com/http://www.yangonglabe.com/http://www.myanmol.com/http://www.yangon.anglicon.org/http://www.myanmornet.com/


7/21

Vardhman is haing 0 plants for sewing threads one in 2osiarpur with a

capacity of 8?? tonnes9month ! other at 4addi with a capacity of 6?

tonnes9month. 2osirpur plant is running at $??E production ! 4addi

plant with the production of :8@


8/21

office in India ! are coordinating with the garment with in India as well

as its neighbouring countries.

Thus Vardhman plans to look the Indian subcontinent as a signal platform

market will proide an opportunity to hae a deeper relationship with

customer besides the e*panded market.


9/21

COUNTRY SCAN

opulation7

This population of (yanmar, spread oer states and seen diisions, is

estimated at #< million. (yanmar is inhabited by $68 ethnic nationalities.

The 4amols, caruprising about >= per cent of the population from the

largest group. %bout 0.> million populations in cultiation.

Land area7@ (yanmar is spread oer a totla aea of >:>, 8:: /F. km.

5hich is about the size of the Dnited ;ingdom combined. It lies in /outh

+ast %sia, with parts of India ! 4angladesh to the west -hina to the

3orth ! Laos and Thal iland to the +ast its southern borders are the seaG

the 4ay of 4engal to the /outh 5est and the %ndaman /ea to the

/outheast and $8E o fthe total land is under cultiation.

Ci)ate* (yanmar enjoys a tropical climate with three distinct seasons.

The wet season lasts from mid@(ay to mid@Cctober, the dry cool season

from mid@Cctober to mid@Aebruary, and the warm season from mid@

Aebruary to mid@(ay.

Te)perature+*

KAY$NSTATE

2ot season7 %erage temperature is oer


10/21

SHAN STATE

-old season &1ec, Ban)7 %erage temperature is below ># A &$


11/21

-old season7 %erage temperature is >0.>A &$:-).

Tran+p,rt

4y %ir

4y /ea

4y Cerland

ail /erice

C,))uni-ati,n Seri-e+

ostal serices

3ews paper ! management

adio ! Teleision.

"/ Air*(yanmar is sered internationally by7 %ir -hina, %ir, (andalay,

%ll 3ippon %irways &%3%) 4hutan %irlines, 4iman, Indian %irlines,

(yanmar %irways International &(%I), akistan International, oyal

4runei, /ilk %ir and Thai %irways International &T'). angon has direct

air@links with 4angkok, 4hutan, 4runei, /ingapore, 2ong ;ong -alcuta,

-hiang (ai, 1haka, jakrata, ;arachi, kuala Lumpur, ;unming, London,

Csaka and /ingapore. (yanmar %irways International &(%I), Thai

%irways International &T'), /ilk %ir, 4iman, I%, Indian %irlines, oyal.

"/ Sea* -ruise /hips call at angon ort with Visa on %rrial being

granted on prior arrangement.

$$


12/21

$0


13/21

$NTERNAT$ONAL MARKET$NG AN OVERV$EW

5hile practicing international marketing, a company goes beyond

e*porting ! becomes much more directly inoled in the local working

enironment within a country of market. The International marketes is

likely to hae its own sales subsidies and participate in deeloping entire

marketing strategies for foreign markets.

Important challenge for the international marketing phase of a firm

because the need to unders tand the different enironment the company

needs to operate in understanding different cultural, economic, ! political

enironments becomes wassory for success.

International marketing is defined as "the performance of marketing

actiities across two a mole countries.

In broad terms international marketing is a subset of international

business .

International 4usiness is a creatie social process of commercial and

economic actiities that cross national frontiers. It concerns the

international moements of goods and serices, capital, employees, and

technology, importing@e*porting, cross border transactions in intellectual

proper ty &patents , trade makes, know how, copy right materials etc. ) ia

licensing and franchising, inestments in physical and financial assets in

foreign countries, contract manufacture or assembly of goods abroad for

local sale or for e*port to other nations, buying and selling in foreign

countries, the establishments of foreign warehousing and distribution

system and the import to one foreign country for subseFuent local sales.

$6


14/21

%ll the basic tools and concepts of domestic market are releant to

international business. Infact, international markets are the e*tension of

domestic markets. 4usiness can be conceied as an integral part of two

process i.e. technical and social. In regard to technical process domest ic

and international market are identical. The technical process includes

non@human faction i.e. product, price, cost, brand etc.

In social process, human elements are inoled i.e. the behaiour patterns

of consumer and gien characteristics of a society, such as customs,attitudes, alues, etc., and it is obious that these social process differs

from country to country and different from domestic markets.

The basic purpose of the business actiities can be defined as to create

customers and to satisfy their needs and wants through e*change process

and through professional skills or techniFue and retain them on long term

basis for mutual benefi t at profit . The emergence of global economy and

global trade market has transformed the world into a integrated world

economy.

2oweer, international business today is ery comple* and competitie in

nature.

"AS$S OF $NTERNAT$ONAL "US$NESS

5e are liing in multinational, multilingual, multicultural, multi@religious

world. olitical and social systems are different. Laws and regulatory

system and currencies differ from country, technology and liing standard

are different, the economic standard and trading pattern differ.

T0e a1,e pr,1e)+ 2e per-eie in internati,na 1u+ine++ are*

$#


15/21

1eals may hae to finalised in foreign language under foreign laws and

regulation and customs.

In business information needed may be difficult to obtain.

1ue to ariation in e*change rates, it is difficult to do business without

risk.

1ifferent and communication systems are normally comple* and rigid in

foreign market than domestic market.

isk leels are always higher due to political situations, commercial and

financial regulations and its fluctuation and aderse moements.

(anagers operating in foreign countries need different mind set and

professional skil ls than in home markets.

THE PROCESS OF $NTERNAT$ONAL$SAT$ON

The company who is operating in domestic markets may isit e*hibition

and fairs or participate in the international fairs held in foreign or in

domestic market where it may arise due to non@aailability of reFuired

Fuality of product and price differentials between local and foreign

supplies. Initially, the company may work through an intermediary i.e.

state bodies or big corporate companies engaged in international business.

5ith the increased knowledge and e*perience, the company may acFuired

detailed knowledge of business and then it may start doing its own

business direct ly with the buyer9sel ler. It may set@up its own branches ,

subsidiaries, its own !1, and establishes production unit in foreign

countries and undertake promotional actiities and adertisement. Then

$8


16/21

the company may enter into foreign market through licensing to produce

its brands, or franchising or local manufactures.

The ne*t stage the company may undertake is joint enture with foreign

company and establishes its presence in foreign land. It then starts

operating like it operates in domestic markets @ all contingent factors of

business operat ions i.e. own employees, premises , warehouse, deliery

ehicles etc. It acFuire local skills, cheap labour technical knowhow,

reduced production costs, obtain grants from local 'ot. and ta*facilities.

$>


17/21

MARKET ENTRY STRATEG$ES

+*porting to a foreign market is a strategy many companies follow for at

least some of their markets. /ince many countries do not offer a large

enough opportunity to justify local production, e*porting allows a

company to centrally manufacture its products for seeral markets and,

therefore, obtain economies of scale.

$n!ire-t E3p,rtin4

/eeral types of middlemen located in the domestic market are ready to

assist a manufacturer in contacting foreign markets or buyers.

Dire-t E3p,rtin4

% -ompany in engaged in direct e*porting when a company e*ports

through intermediaries located in the foreign markets. Dnder direct

e*porting, an e*porter deal with a large number of foreign contacts,

poss ibly one or more for each country the company plans to enter.

Li-en+in4 5ran-0i+in4

L$CENS$NG AS AN ENTRY STRATEGY

Dnder licensing, a company assigns the right to a patent &which protects a

product, technology, or process) or a trademark &which protects a product

name) to another company for a fee or royalty. Dsing licensing as a

method of market entry, a company can gain market presence without an

eFuity inestment. The foreign company. Cr license, gains the right to

commercially e*ploit the patent or trademark either on an e*clusie right

to a certain geographic region) or unrestricted basis.

$:


18/21

Fran-0i+in4

Aranchising is a special form of licensing in which the franhisor makes a

total marketing program aailable, including the brand name, logo,

products , and method of operat ion. Dsually, the franchise agreement is

more comprehensie than a regular licensing agreement inasmuch as the

total operation of the franchisee is prescribed.

L,-a )anu5a-turin4

L,-a )anu5a-turin4 a+ an entr/ +trate4/

% common and widely practiced form of entry is the local production of a

companyHs products. (any companies find it to their adantage to

manufacture locally instead of supplying the particular market with

products produced elsewhere. 3umerous factors such as local costs,

market size, tariffs, laws, and political considerations may affect a choice

to manufacture locally. The actual type of local production depends on

the arrangement madeG it may be contract manufacturing, assembly, or

fully integrated production. /ince local production represents a greater

commitment to a market than other entry strategies, i t deseres

considerable attention before a final decision is made.

#,int Venture+

-ompanies entering foreign markets not only hae to decide on the most

suitable entry strategy, they also need to arrange ownership either as a

wholly owned subsidiary or as a joint enture. Dnder a joint enture &BV)

arrangement, the foreign company inites an outside partner to share

stock ownership in the new unit. The particular participation of the

$


19/21

partners may ary with some companies accepting ei ther a minori ty or

majority position.

Strate4/ Aian-e+

% more recent phenomenon is the deelopment of a range of strategic

alliances. %lliances are different from traditional joint entures in which

tow partners contribute a fi*ed amount of resources and the enture

deelops on its own. In an alliance, two entire firms pool theirr resources

directly in collaborations that goes beyond the limits of a joint enture.

%lthough a new entity may be formed, it is not a reFuirement. /ometimes,

the alliance is supported by some eFuity acFuisition of one or both of the

partners . 3 an al liance , partners bring a part icular skil l of resource ,

usually one this is complementary, and by joining forces both are

e*pected to profit from the otherHs e*perience. Typically, alliances

inole either distribution access, technology transfers, or production

technology, with each partner contributing a different element to the

enture.

"/ Oeran!* Cerland entry with a 4order ass is permitted at the

following 4order -heck oints7 ;yukoke, 3amkhan and (use on the

(yanmar@unnan &-hina) borderG and Techileik, (yawaddy and

;awthaung on the (yanmar@Thai border.

Rai Seri-e*angon@(andalay is the main rail link with four e*press

trains running daily between angon and (andalay. Aurnisked coaches

-herry and 4agan. There is alos a rail serice from angon to 4agan

which operate on alternate days.

C,))uni-ati,n +eri-e+

$=


20/21

ostal serices

3ewspaper ! magazines

adio ! Teleision

P,+ta Seri-e+* The angon -entral ost Cffice, located at 6=, %ung

kyaw /tree, is open from =76? am to #76? pm., (onday through Ariday.

Ne2+paper 6 )a4a7ine+*

Ne2+paper Pu1i+0e! in En4i+0

(yanmar %l Lie

;yemon

The new light of (yanmar

The adanabon &ublished in (andalay)

Eenin4 Ne2+paper &L,-a(

-ity 3ews in (yanmid. &.).

Ma4a7ine+ in En4i+0

'olden (yanmar

(yanmar -hronical

(yanmar erspectie

F,rei4n Ne2+paper+

International 2erdd tribure

0?


21/21

/ingapore strairs Times.

Ra!i, 6 Teei+i,n* adio (yanmar broadcasts +nglish on the following

schedule7

Vard Haman

Documents

Transcript of Vard Haman