Group Project: INTERNATIONAL MARKETING PLAN
Research Methodology
Secondary research was used to obtain data for this marketing plan. Journals, YouTube, websites, social media platforms like Facebook, Twitter, and LinkedIn were utilized to provide the required platform for marketing. Additionally, monkey surveys were carried out to obtain necessary information about the target market, products and services to be offered. The questions formulated in the surveys were simple and precise. The national bureau of statistics in the U.S. also provided required data about the needs of the target market.
Situational Analysis
Covid-19 pandemic has led to the closure of numerous businesses. Those left have had to change how they operate especially seeking out new markets and customers. As an organization providing home entertainment, it is estimated that customers will have risen due to the continued lockdown from the pandemic. The home entertainment platform is simple and efficient to use, is affordable, and provides a fantastic experience. Also, there is numerous content available.
Market Analysis
The main products of the company are mainly streaming services that are offered in three basic packages. There is the basic package costing $10, the standard costs $15 and the premium goes for $25. Regardless of the package, all the charges are monthly. However, the higher the package, the more streaming programs a customer acquires. Currently, the market share for the company is 55% of the US streaming subscribers. In the last three years, the number of subscribers grew from 200,000, 350,000 to 550,000, and projected to grow to 700,000, 1000,000 to 1.5 million subscribers. The growth of the company has been steady as people have invested in in-home internet. As a result of the covid-19 pandemic, prospects of the company involve a fast increase in subscribers aided by technological breakthroughs like home fiber internet.
Business Environment Analysis
The company enjoys technological advantages for instance due to the 4K streaming services. This allows customers to receive premium high definition pictures (HD) without any interruptions. Social-cultural factors have helped the organization increase its customers. In this case, both the young and old people have opted for online streaming services especially following the pandemic. Additionally, there is an increased demand for the content leading to the company achieving a competitive edge.
Political/Legal/Institutional Environments
In the US, many companies enjoy political freedom and those offering on-demand streaming services are no exception. There is an increase in internet usage and the government invested in such companies. Despite an increase in online streaming services, the government has not increased the tax rate for such organizations. Political freedom also means that there are increased opportunities for investing and penetrating other markets. Therefore, the organization can make more profits through such advantages.
Regulatory Environment
The regulatory environment for the company is challenging due to the difficulty in obtaining licenses to stream. However, acquiring these licenses is beneficial since it leads to achieving set goals and objectives to reach new markets. The target market is increasing hence the need for structures that ensure the sale of company products and services. Currently, the company earns an annual revenue of $1 million and expected to increase over the next few years.
Economic Environment
Due to the epidemic, the global economy has slightly decreased but the demand for online streaming services has increased. However, as economic activity is expected to begin rising, the rate of new memberships is also expected to rise. Customers may however subscribe to cheaper services to save more money. Additionally, the rise in unemployment cases means a few new memberships. On this note, low economic activity may adversely affect the organization.
Social and Cultural Environment
As an organization offering streaming licenses, it must cater to the concerns for global audiences by offering quality products and services. Since it is a global audience, this means that there are different societies with dissimilar expectations. In this case, the licenses offered need to ensure that customers for the product have a wide range of content to choose from and in their required native language as well.
Demographic Environment
Before the covid-19 pandemic, the target for the licensing company was organizations offering online streaming services. Currently, the organization offers online streaming services for both heavy and light users. According to (), more than 59% of people stream movies and this has transitioned from only millennials to baby boomers as well due to staying at home. In the next three years, the company anticipates a 5% market share increase as more customers subscribe to online streaming services.
Technological Environment
Technological factors heavily impact the growth of companies especially due to reaching more customers. A company reaches a bigger audience by having attractive packaging designs that appeal to potential clients. In this case, the licensing company offers discounts on online streaming licenses. Additionally, the company can offer cheap subscription offers to their clients and ensure that they increase their revenue.
Natural Environment
Online streaming sites may have their speeds disrupted by heavy rainfall as well as destroying their equipment. This leads to more expenses since repairs have to be done on the damaged apparatus. On this note, it is imperative to choose locations for setting up the equipment. This requires combined efforts between the government, community, and relevant company to monitor the areas set up with the necessary equipment.
Physical Environment
Infrastructure plays a vital role in the delivery of required online streaming services. In this case, physical features determine whether internet equipment will be set up. For example, hilly areas cannot have a secure connection hence difficult to provide the service. In terms of licenses, surveys are done in such areas often lead to cancellation or revocation.
Competitor Analysis
Competitive forces affecting the company involve being offered cheaper offers on licenses and line streaming services. Additionally, there is severe competition from traditional broadcasters who still retail DVDs since they do not require licenses as they sell on-demand. As a company part of the media and entertainment industry, the threat of new entrants is constant. Additionally, technological advancements have also led to the entry of new entrants who offer reliable and affordable services. Such companies influence bargaining power as clients opt for inexpensive offers.
My competitor’s future goals involve selling more products cheaper. The current strategy is selling their products on demand but they have no assumptions. In comparison with the major competitors, the strengths of the company are selling reliable services and affordable as well. Weaknesses include an outdated library, expensive licensing services, and limited regional selections.
The company’s management plan to capitalize on the weaknesses of my competitors includes selling services at an affordable price to new target markets and offering more content for all ages. The longevity of the licenses can be increased from 1 year to 2 years while still offered at the same price. The company differentiates its products by offering the biggest platform for content and in terms of licensing; prices are cheaper as clients subscribe to longer licenses for instance 5 years. My company will monitor the situation online especially considering the lockdown from the covid-19 pandemic.
References
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