Business Management Assignment: International Marketing Plan for FiveAI
Task: Yourbusiness management assignment task is to draft an international marketing plan for a UK start-up
This report focuses on the company's background, and it also highlights brief insights into the local marketing operations of the organization. It also brings out the market entry modes that are important for expanding into the new market.
The secondary sources are going to be evaluated to get the information to complete this report. The report will evaluate the different marketing strategies that needed to be focused for expanding the business to the global platform. However, with the help of 4 p’s Model the adaptation and standardisation in the new market is being evaluated.
The business management assignmentfocuses on the chosen Organisation FiveAI. It is a software company that provides software solution platforms for better solutions in urban mobility to enhance public transport in the complex urban environment(Five.ai, 2021). The Organisation focuses on the creation of enhanced software platforms for autonomous vehicles and machine learning approaches. However, it helps to develop artificial intelligence for self-driving software in autonomous vehicles.
This report will focus on brief insights into the current local and global marketing operations of the Organisation. It will give a brief analysis on expanding the business to China. The marketing entry strategies are being analysed to expand the business to another global market(Katsikeas et al., 2019).
It also highlighted the international marketing strategies that needed to be focused on by the organisation to bring out the better levels of the nation for adopting new strategies into the new market. However, while ending the report, a recommendation and conclusion are also drawn, which will give adequate information about the International marketing strategies?
A brief discussion of the operations of the organisation
FIVEAI is now trying to build software that will enhance self-driving mobility in Europe. The organisation is trying to trigger positive changes in autonomous vehicles by introducing self-driving systems.
It is done through Artificial Intelligence and computer vision and the company is also implementing robotics in the software of autonomous vehicles(Ma et al., 2020).
The company is not trying to focus on large scale simulations because it will help the Organisation find the bugs and test systems. However, it will enhance the transportation systems in the local business where they operate and also it will help to earn profit and help them to emergeinto the automobile industry(Shen et al., 2017).
The Organisation had implemented the Artificial Intelligence and machine learning to remove the need for a highly detailed prior 3D mapping of the environment in the navigation of the autonomous vehicle(Batth et al., 2018).
The company is also trying to assemble the onboard sensors in cameras to enable autonomous vehicles to safely and efficiently navigate the complex environments with simpler maps (Huang and Rust, 2021).
Proposed international market
FIVEAI can focus on the strategies of market segmentation because it will help the organizational executives to segment their consumers and they can marketed their services by using the positioning and targeting strategies for the new market(Katsikeas et al., 2019).
The organisation focused on the mentioned strategies for selecting their market to operate their business(Paiola and Gebauer, 2020).
The organisational authorities have to focus on the size of the market. The market size helps the Organisation to discuss the better business strategies needed to be implemented to the business operations(Cantoni et al., 2019). The size of the market helps to understand the worth of operating the business in the market.
For example, China has the biggest market worldwide, and they are willing to use different technological approaches so the chosen Organisation can easily explore their business in the markets of China(Iyer et al., 2019).
FIVEAI has to understand the market's expected growth, and they have to research the market to know the expected growth of the business in the proposed market(Tien et al., 2019).
China has a wider consumer base that can help the chosen Organisation grow its business accurately by offering software solutions, and automated technologies can easily attract different consumers.
FIVEAI have to focus on the competitive position of their Organisation in the markets of China. It is also seen that the markets of China have a high competition rate(Tien et al., 2019).
It also focused on the multiple target market approaches that can help the firm understand the market that help them to get a better competitive position.
The organisation has to focus on the cost of accessing the market. The cost is needed to be understood by the organisational authority is because it will help them apply their tactics with the market access abilities.
The cost for entering into this market is low that can be helpful for the organisation to improve and expand their business.
Market entry modes
The organisation has to focus on the better market entry modes that are important to be focused on for taking entry into the new markets to expand the business(Cantoni et al., 2019).
The organisational authorities of FIVEAI are trying to focus on the better be used for exporting their services to another overseas market. Direct exporting is the fastest mode of entry into international business(Schellenberg et al., 2018).
The period exporting also allows the Organisation to export the services to the markets of China to focus on the sales force to reach out to the customers(Cantoni et al., 2019).
The exporting method helps establish the individual presence in the overseas market because this market entry method helps supply the services when importer of the overseas market.
The market entry method is important because it helps to get foreign representatives in the market worldwide (Huang and Rust, 2017).
This exporting strategy is also important for testing the services in international markets before focusing on investments in the overseas market. It is the most important marketing in three methods that help to protect the patents and trademarks, and different intangible assets while expanding the business into the new market.
Although the Organisation can use the direct exporting method, the direct exporting method also comes up with different barriers mentioned below.
- It is an expensive strategy that includes a higher cost.
- The Organisation can face different problems to offer their services in the market because direct exporting does not offer better features for selling services..
A joint venture is one of the most important and preferred modes of entry into the international market(Sestu and Majocchi, 2020). The Organisation can expand its business into the markets by forming joint ventures with the local businesses in China.
It is the most important market entry method because it allows the Organisation to collaborate with other companies trying to expand their business worldwide(Ahi et al., 2017).
The business entities in joint ventures share all the investments profits and losses at the pre-determined proportion.
The Organisation can easily use the market entry method because it comes up with different benefits that are mentioned below:
- Both partners in joint ventures can leverage their expertise to grow and expand their business into the chosen market.
- The political risks are lower in the joint ventures because of the presence of the local partner healthy new Organisation to get the knowledge about the local market and policies in the business environment(Kalogiannidis et al., 2020).
- It is also important because it helps to enable the transfer of Technology and helps to get the knowledge of the markets worldwide between department forms.
The features of joint ventures also come up with some barriers that are mentioned below:
- The joint venture methods face different cultural classes that need to be considered by the organisational authority are of the chosen Organisation to overcome the barriers of cultural classes in the new market.
- The joint venture has a lengthy and complicated legal process for overcomingdisputes into the new markets that can also cause a problem for the Organisation to take entry in the markets.
Segmentation, targeting and positioning strategies
The segmentation strategies are important to target the different consumer bases in the new market. The chosen organisation has to focus on the mention factors for segmenting their consumer base efficiently(Blackburne and Buckley, 2019).
The demographics are the most significant form of segmentation that divides the customers by the structure of certain population traits of age, gender, income and social class.
The demographic factors allow the organisation to combine the age and income information to target the potential peoples to allocate their Software Solutions to the consumers.
The Geographic factor helps the FiveAI focus on their international marketing strategies by understanding consumers' preferences in different places.
The different preferences of the consumers can be divided through the Geographic elements for a wide range of consumers by knowing their preferences according to their Geographic segmentation.
The elements of psychographics segmentation allowed the organisation to know about the hobbies and interests of the consumers.
It is important to be focused on because it will help the organisation to understand consumers' interests. The social status and the values of the consumers also allow the organisation to target the high-end industries of China to offer their services
FiveAI has to focus on behavioural segmentation because it will allow the organisation to understand the patterns of the consumers.
Their services and the segmentation also help the organisation to provide best quality software solutions at the best prices. It is important to be focused on to attract more consumers towards the business into the new market.
FiveAI focus on the mentioned strategies that are important to evaluate the better targeting Strategies for targeting their consumers in the market(Camilleri, 2018).
- The organisation can create a new value proposition that will help them focus on new prospects' approaches.
- The updated value proposition can allow the organisation to speak directly to the needs of the potential consumers in the new market(Camilleri, 2018).
- The chosen organisation can also focus on the creation of new business cases for providing the value selling tools that help them identify the new segmentation in the new markets.
- The company can use this strategy for delivering its services, and it also allows the organisation to quantify the business case for the new target segment in the new markets(Tong et al., 2020).
The specific positioning strategies are helpful to position their services in the new market.
Positioning based on service use
Associating the services with the particular user is one of the most important ways to efficiently position the chosen organisation's brand. FiveAI can easily associate the services with particular usages of software solutions for the consumers important to their services in the new market.
Positioning based on the prices
The Chosen organisation was happy to focus on their lower Logistics and distribution cost that allowed them to drop the prices of their services. Offering better quality products at lower prices allows the organisation to get competitive advantages over the new markets(Camilleri, 2018). Competitive pricing is one of the most important factors for positioning the services. A pricing positioning strategy can allow the organisation to offer the cheapest services to the new markets to better the new market.
Five AI organizations follow a set of standardization towards their production of the software and AI parts. It needs to adapt itself to make changes in the service and products it provides to enter the Chinese market(Paul and Mas, 2020).
Hence this table will provide information about the standardization and adaptation of Five AI based on the 4P principle of business.
Five AI has a specific standard for its self-driven software application and AI platforms around the world. It provides the same quality of software and Ai parts without much change in production. For example, the quality of the face detectors provided by the Five AI has not been developed for a long time due to rigid standard policies(Paul and Mas, 2020).
The quality standards of software and AI platforms provided by Five AI are not found in almost any organization in the Chinese market. Therefore Five AI can attract a large number of customers and organizations for proving its AI products. Hence the products of Five AI can help to enter the Chinese market.
Price standards of the AI platforms and the self-driven software provided by Five AI is cheap products and reasonable prices. Five AI obtain minimum profit from its sales every year as it primarily focuses on fulfilling the customers' technological needs. Any other organization cannot match the technological performances provided by it as per the price.
The AI products and software platforms provided by other organizations in the Chinese market are very expensive and difficult for small scale organizations to invest in. Five AI can attract many customers or small scale organizations due to the prices they provide its products to the people.
The supply chain system in Five AI is well established, which helps it promote its product to a larger customer group within a very short period. It conducts product promotion campaigns in different parts of the country, which allows reaching many customers. The advertisement of Five AI is designed to attract more customers around the country.
The promotional strategies used by the AI organizations in China are not as effective as Five AI.
The advertising patterns of the Chinese organizations follow the same pattern, which is less attractive for the customers. Therefore Five AI can enter the Chinese market due to its innovative and creative promotional strategies.
Five AI primarily focuses on selling AI products to the places where people will use the AI system regularly. For example, Five AI focuses on education, health, defence and many more sectors to sell its products. However, this attracts more customers as the demand in the market increases.
The Chinese organizations also provide services to the places where people demand AI services. However, some parts of people could not afford it, so this Five AI claims to provide the same service at a lower cost. Therefore Five AI can enter the Chinese market to provide AI service to the areas that lack this service and attract more customers to set up a successful business.
• It can be recommended that FiveAI can expand their business through the joint ventures method, it will help the organisation get the financial backup and also it help the organisation to bring innovative ideas.
• It can allow the organisation to overcome the legal issues in the new market by discussing with the partners.
• The joint ventures method also allows the organisation to provide their Investments, profits, and losses efficiently, increasing the organization’s compatibility that helps them align their corporate goals within the market needs of the new market.
• The organisation can also use the market segmentation strategies that are important to focus on because they will help them segment the market.
• Segmentation strategies also allowed the organisation to segment the consumers in an accurate way for delivering the services.
From the above discussion, it can be concluded that FiveAI is expanding its business and trying to entry into the new markets for delivering its software service solutions to the wider consumer base.
Organisation has to focus on every marketing mode that will help them segment and target the desired consumer base according to their preferences to help them get a stable position in the new market.
The company can use the proposed marketing strategies that will help them position their product regarding the marketing activities of the new markets to get better competitive advantages over their rivals in the current competitive market.
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