Internationalisation of Nicolites e-cigarette in India - Free Essay Example

Introduction There are a number of factors that compel businesses to trade and market their products internationally. For instance, international marketing enables businesses to (1) increase their customer base and market share, (2) minimise their reliance on any single market and (3) avail benefits of becoming multinational brand (Buckley and Ghauri, 2004). Over the last decade and a half, international marketing has become substantial (Hill, 2012); to the extent that consumers barely notice the fact that a majority of the products they consume routinely are either sourced from international markets or contain components that are sourced from international markets. Successful international marketing requires a diligent strategic planning process involving the assessment of the business environment and suitability of the target market. A conductive business environment of the target market and the presence of a lucrative market gap render a target market as suitable (Tallman, 2007). Following this assessment, a brand intending to internationalise needs to plan and execute the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organisational objectives (Sak and Shaw, 2004 p. 3). This essay relates to the internationalisation of Nicolites, the company that produces Nicolites electronic cigarettes in the UK to the Indian market. This essay evaluates the suitability of India as a selected target market for the expansion of Nicolites. It also evaluates a suitable entry method for Nicolites in India and suggests marketing strategies for the product as well. Market Opportunity Despite being widely considered as hazardous to health, smoking of cigarettes prevails at large across the globe. Therefore, any measures that can reduce the consumption of cigarettes, including providing an alternative for smoking are widely seen as a positive development. Provision of an alternative for smoking tobacco based cigarettes is the core marketing concept behind Nicolites e-cigarette. Nicolites e-cigarette was first introduced in 2007 in UK (Nicolites, 2015). Nicolites e-cigarette does not have any tobacco whatsoever, and hence it is free of more than 4000 known toxic chemicals and substances present in a regular cigarette (Nicolites, 2015). Nicolites e-cigarette is an innovative product that offers smokers a right alternative for regular cigarette through a true simulation of smoking experience which is cleaner, safer and healthier. Despite having a glowing red tip depicting a real flame, Nicolites e-cigarette does not require any flame or fire to burn. Moreover, i t does not cause any unpleasant smoke and odor, or gather smoky residue on walls, clothes, skin and hair of the users (Nicolites, 2015). Justification and Evaluation of the Target Market According to the Datamonitor Market Insights report titled Tobacco in India (2011), the overall tobacco industry in India was estimated to be worth approximately INR 58,730 crores (or $10 bn), in 2009. During the period 2004-2009, tobacco industry in India grew at an average of 8.5 percent; whilst during 2009-2014, it grew at an average of 6.5 percent (Tobacco Free Kids, 2015). The overall tobacco market in India is dominated by smokeless tobacco sales which constitutes 75 percent of the market (Tobacco Free Kids, 2015). Out of the remaining 25 percent tobacco market, 20 percent tobacco consumption comprises of smoking bidi, which is a hand-rolled, small, thin cigarette (Tobacco Free Kids, 2015). Thus manufactured cigarettes form only 5 percent of the market. Despite cigarettes being not one of the most popular tobacco products in India, Indians consumed 96 billion cigarettes in the year 2014, making the country the 6 largest cigarette consuming nation in the world and an important target for international tobacco companies (Tobacco Free Kids, 2015). A large, growing product market of cigarettes in India signals a lucrative product market for alternate products such as Nicolites e-cigarette. Thus it is established that India has a huge potential for alternative products to cigarettes such as Nicolites e-cigarette. After establishing the existence a lucrative market for Nicolites e-cigarettes in India, it is also important to assess whether the overall business environment of India is conductive for international brands. In terms of political environment, the Indian market has become liberal following the reforms in 1991 (Nuruzzaman, 2011). However, the capital market in India remains vulnerable to political changes (Nuruzzaman, 2011). In terms of economy, India has been growing steadily over the last decade. Last year, the Indian economy underwent a 7.5 percent growth (Ayres, 2015). According to the World Bank estimates, Indian economy has become the worl ds third largest economy in purchasing power parity terms (Ayres, 2015). The country has an escalating middle class which will continue to drive its economy and demand. Socially, India has a very diverse population in ethnic, religion, culture and socio-economic terms (Nuruzzaman, 2011). These factors can either be advantageous or disadvantageous for an international brand depending upon how it deals with them. Technologically, the urban centers in India are advancing with most of the urban middle class Indians having access to internet and media technologies through which branding and marketing communication activities can be pursued (Nuruzzaman, 2011). The economic and technological factors of India indicate towards a favorable business environment for Nicolites e-cigarettes. As for the political factors, any adversities posed by the political environment can be easily negated by choosing a right market entry strategy by Nicolites e-cigarette. The social factors of India are unlik ely to be impactful upon Nicolites as the company will most likely target a small niche market in India. Market Entry Selecting an appropriate international marketing entry strategy is a critical important decision within the process of internationalisation as it can be vital for the sustainable competitive advantage of the company (Buckley and Ghauri, 2004). There are many ways in which a brand can enter a foreign market. These can categorized as (1) direct production direct entry, acquisition, and joint-ventures (2) indirect production licensing, franchising, technical agreements, service contracts, etc. or (3) exports indirect, direct agent/distributor, direct branch/subsidiary, etc. (Rugman, 2009). The suitability of one of the above market entry modes for Nicolites depends upon the combination of several internal and external factors (Koch, 2001). For instance, Nicolites is a relatively young, medium size company with around one hundred employees (Nicolites, 2015). The company currently operates only across UK and does not have any international operations. The limited size of the comp any and subsequently its resources coupled with its inexperience in internationalisation makes it very unlikely for Nicolites to adopt a direct production as a market entry method. Direct production methods are the most capital and resource intensive methods of market entry requiring highest levels of commitment from the internationalising firm (Ireland, et al. 2011). Moreover, although Nicolites is the largest UKs e-cigarette brand (Evening Standard, 2013); it currently does not have the global brand equity and popularity of a multinational company. Therefore, Nicolites is less likely to be able to attract investors to operate franchises in India or secure favorable license agreements for indirect production. Resultantly, the internal factors of the company oblige it to pursue internationalisation through exports. Exporting local products to a foreign market is perhaps the most simplest and common methods of entry in international markets. Exporting involves sending goods from the home country to another for distribution, sales and services (Ireland, et al. 2008). Since the amount of goods exported can vary, exporting enables internationalising firms to move into an international market in a controlled manner that is, without risking high capital or making intensive commitments initially. This gradual process of market entry provides internationalising firms with the opportunity to explore the prospects of the target market and gain knowledge and experience before making large investments (McDonald and Burton, 2002). It is noteworthy that exporting strategy is vulnerable to exporting tariffs and can often face supply chain/logistics challenges in getting their goods to the international markets and eventually to the end-consumers (Ireland, et al. 2008). Additionally, exporting firms may also face difficulties in managing and dealing with local distributors (Ireland, et al. 2008). In case of NIcolites, exporting is the seemingly the most appropriate m arket entry method, as this method will negate any major risks of failure by allowing the company to gain experience in many facets of international business and particularly learn about the Indian market. This method will incur the least amount of initial costs for internationalisation. Considering that Nicolites products are value added finished goods, Nicolites will find it most suitable to continue to use its existing production facilities and supply chain to manufacture e-cigarettes and export it to international destinations. In order to overcome the challenges related to distribution and sales activities, Nicolites can hire its own local managers to avert the disadvantages of underperforming agents in a foreign market. As for the concerns regarding export tariffs, this is less likely to affect the business strategy of Nicolites in India as currently the Indian government has levied heavy taxes on all tobacco products (Narayan, 2015) which make tobacco free Nicolites e-cigaret te an attractive alternative for smokers. Segmentation Targeting customer segments in marketing strategy enables firms to decide ways for acquiring competitive advantage (Proctor, 2000). A market segment is a fraction of the whole target market that has one or more unique attributes that provide it a distinction and sets them apart from other consumer segments (Proctor, 2000 p.24) . Customer segments can be identified through demographic variables such as sex, age groups, family life cycle, literacy, earning, religion, ethnicity, etc.; and geographic variable which divides customer segments according to their localities (Proctor 2000). In India, Nicolites should target upper-middle and upper class consumers specifically from young adults and adult age groups who are open to new technologies and brands from various professional classifications living in upscale urban centers of major metropolises. Marketing Mix After identifying the targeted consumer segments, a firm should then determine a suitable targeting strategy (Kotler, 2000). By applying the marketing mix model in the Indian context, Nicolites can adapt its marketing strategy for Indian consumers. Internationalising firms have a choice of targeting their customers through either a standarised strategy in which standarised products are sold all over the world or through adaptation in which products are localised to meet the preferences of each target market. In the current context, it is suggested to apply a mix of both these targeting strategies. Product Nicolites has a trusted reputation as a brand and offers a high level of choice to its consumers in terms of strength and flavour of its products (Evening Standard, 2013). Moreover, Nicolites uses most advance cartomiser technology for e-cigarettes unlike most other brands which use 3 piece models that are associated with poor quality and leak (Evening Standard, 2013). Therefore, it is suggested that Nicolites should export the same high quality products in India to target its affluent consumers; although the company can bring in some variation in the strength and flavour of its e-cigarettes according to local preferences. Price From the four basic pricing strategies that is (1) premium pricing, (2) penetration pricing, (3) economy pricing, and (4) price skimming (Kotler, 2000) the current pricing strategy of Nicolites can be termed as premium. In India, the company should pursue the same pricing strategy to target its affluent consumers. Place In the UK, Nicolites works in conjuncture with a number of high street retail firms such as Tesco, Superdrug, WH Smiths, Co-op, Sainsbury, etc. as well as local newsagents and online (Evening Standard, 2013). Partnering with the National Federation of Retail Newsagents (NFRN), Nicolites has been filling the shelves of local corner shops across the country in pursuit of penetration and consolidation (Ansoff, 1965) growth strategy. In India, Nicolites can similarly distribute its products through high street retailers in upscale posh area of urban centers. Promotion Nicolites pursues a push strategy (Kotler, 2000) in UK in which it tries to make its e-cigarettes available in as many high street and corner shops as possible to penetrate the market. However, in India, it should focus on creating a niche market of affluent consumers out of the 5% consumers of manufactured cigarettes through a pull strategy (Kotler, 2000). In this way, it will be able to establish a superior international brand image in the minds of its consumers and increase its attractiveness among them. Conclusion This essay concludes that in order to expand the consumer base of the company and negate its reliance on a single market, Nicolites e-cigarette should internationalise its brand and enter the lucrative Indian market which is the 6th largest consumer of cigarettes in the world through exports. India has good market prospects for alternative cigarette products and a conductive environment for international businesses. By using a mix of standardised and localised marketing strategies, Nicolites should target the upper-middle and affluent class consumers of the country to pursue its international ambitions. References Ansoff, H. (1965), Corporate Strategy. New York: McGraw-Hill Ayres, A (2015). Economic Growth and Indias Global Rise. Forbes. Available from https://www.forbes.com/sites/alyssaayres/2015/08/17/economic-growth-and-indias-global-rise/ Buckley, P. and Ghauri, P. (2004) Globalization, Economic Geography and International Business, Journal of International Business Studies 35(2), 1-18. Datamonitor Market Insights, (20011).Tobacco in India An insight into the Indian tobacco market. Datamonitor Report Published: Feb 11 | Code: DMCM4789 Evening Standard (2013). Nicolites officially becomes the largest UK brand of electronic cigarette. Available from https://www.standard.co.uk/lifestyle/nicolites-officially-becomes-the-largest-uk-brand-of-electronic-cigarette-8463753.html Hill, C. (2012) International Business. New York: McGraw Hill Education. Ireland, R. Hoskisson, R. and Hitt, M. (2008). Understanding Business Strategy: Concepts and Cases. Mason: Cengage Learning. Ire land, R. Hoskisson, R. and Hitt, M. (2011). Understanding Business Strategy: Concepts Plus. Mason: Cengage Learning. Koch, A. J. (2001). Factors influencing market and entry mode selection: Developing the MEMS model. Marketing Intelligence Planning. 19:5 351-361 Kotler, P (2000) Marketing Management. New Jersey: Prentice Hall McDonald, F. and Burton, F. (2002) International Business. London: Cengage Learning. Narayan, A (2015). Indian Tobacco Giant Tries Short Cigarettes as Taxes Hit Demand. Bloomberg. Available from https://www.bloomberg.com/news/articles/2015-04-15/india-tobacco-giant-tries-short-cigarettes-as-taxes-hit-demand Nuruzzaman, A. (2011). Indian Futures Market: An Analysis. Research Scholar, Department Business Administration, Aligarh Muslim University, Aligarh, Uttar Pradesh 7(2) Dec., 2011 Proctor, T (2000), Strategic Marketing: An Introduction, London: Routledge Rugman, A (2009). The Oxford Handbook of International Business. New York: Oxford Un iversity Press. Sak, O and Shaw, J., (2004). Process of International Marketing. International marketing: analysis and strategy (4th ed.) London: Routledge. Tallman, S. (2007). A New Generation in International Strategic Management. Massachusetts: Edward Elgar. Tobacco Free Kids (2015). The Global Cigarette Industry. Available from https://global.tobaccofreekids.org/files/pdfs/en/Global_Cigarette_Industry_pdf.pdf

Animal Testing Should Not Be Banned - 1508 Words

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A tragic hero is obviously a heroRead MoreWhat Do the Representations of Cleopatra in Film and on Television (as Shown on the Dvd Video ‘Cleopatra’) Tell Us About How Her Reputation Changed over Time? Discuss with Reference to Two or Three Representations.1195 Words   |  5 PagesMarlowe’s Doctor Faustus. Discuss how the passage contributes to the portrayal of Faustus as a tragic hero, paying particular attention to Marlowe’s use of language. What is a tragic hero? A tragic hero is usually the main protagonist whose best trait is generally his weakest leading to an internal struggle which leads to his tragic demise. This stimulates the audience into feelings of pity, empathy and compassion towards him despite his actions. In the passage from Doctor Faustus we can seeRead MoreDoctor Faustus : The Relationship Of Mephastophilis And Faustus1597 Words   |  7 PagesDoctor Faustus: The Relationship of Mephastophilis and Faustus In Christopher Marlowe’s Doctor Faustus, the tragic protagonist Faustus finds himself tired of his previous pursuits in logic, medicine, law and religion. He falls upon the decision to explore a new and taboo area of knowledge: the black arts. Once he settles on this idea, he begins a relentless endeavor to quench his thirst for higher knowledge, wealth and success through learning supernatural powers. Alas, his admirable ambition andRead MoreThe Differences Between Beowulf And Faustus1757 Words   |  8 PagesThere are two stories which one can analyze and put into comparison, that being the stories of the mighty Beowulf and that of the arrogant Doctor Faustus. In Beowulf a story is told from the view of a warrior becoming a hero and displaying amazing feats. While in Christopher Marlowe â€Å"Doctor Faustus†, he is recognized as an ambitious self- centered individual with an eager sensation to learn more knowledge of the Arts. He decided to takes his learning a step further and ultimately becomes his mainRead MorePsychological Anxieties in English Literature Essay1965 Words   |  8 Pagestheir Hero’s psychological turmoil in their work are true representation of the spirit of their age. The tragic study of Doctor Faustus and Paul morel’s disintegration as a modern man lay in their psychological struggles within the soul and body but dealing of the subject was powerfully influenced by the prevailing circumstances of its age. The Age of Christopher Marlowe Marlowe’s Doctor Faustus as an individual was an absorption of the spirit of Renaissance, the conception which portrays â€Å"the struggleRead MoreWilliam Shakespeare s Doctor Faustus And Tamburlaine2059 Words   |  9 PagesMarlowe’s Doctor Faustus and Tamburlaine were both written in the late fifteen hundreds, in the midst of a paradigm shift between medieval and renaissance thinking. The period of uncertainty that provides the context to the two texts ensures that both plays have a mixture of medieval morality play conventions and modern renaissance features. Both Marlowe’s central protagonists are Renaissance heroes, one in Christian setting and one in Muslim setting. The instability of the time is reflected in Marlowe’sRead More Comparing Christopher Marlow’s Doctor Faustus and William Shakespeare’s Macbeth2460 Words   |  10 PagesKnowledge and Power in Christopher Marlow’s Doctor Faustus and William Shakespeare’s Mac beth Plays written during the Renaissance often show how an individual is shaped by that person’s deepest ambitions, such as the desire to know, to rule, or to love, and how these aspirations can lead people down dramatic paths.   Christopher Marlow’s Doctor Faustus and William Shakespeare’s Macbeth both involve noble protagonists who are portrayed as true subjects -   tragic heroes; their selfhood is defined by their

Shooting an Elephant - 840 Words

DISCUSS ORWELLS USE OF PERSUASIVE TOOLS SUCH AS, SYMBOLISM, METAPHORS AND IRONY IN THIS ESSAY AND EXPLAIN HOW HE USES EACH OF THESE TO CONVEY HIS ARGUMENT OR MESSAGE In the extract, Shooting An Elephant Orwell conveys his message through the use of various persuasive tools. He wants the reader to identify when somebody assumes power. This technique is used to show that the powerful are also a captive to the will of people they control. Everyone involved in the situation becomes affected. In this instance, imperialism has a negative affect on them all. The various persuasive tools identified are, symbolism, metaphors and irony throughout the extract. Through the use of symbols, Orwell conveys his message powerfully. The elephant†¦show more content†¦During the killing of the elephant, Orwell only cared not to be seen as a fool by his people, who he sees as judges: I often wondered whether any of the others grasped that I had done it solely to avoid looking a fool. Ironically, the British actually control the British officer instead of being the other way around. Even though, Orwell initially didnt want to hurt the elephant, the killing event actually makes him feel important. He lost his freedomShow MoreRelated Shooting an Elephant1601 Words   |  7 PagesOrwell spent the next twenty years as a writer; the essay â€Å"Shooting an Elephant,† set in the Burma of the 1920s and written in 1936, is one of his most famous works. In the early twentieth century, Burma was still a colony of Britain but anti-imperialism protests and social movements developed very fast, causing â€Å"great tension between Burmese, Indian s and English, between civilians and police† (Meyers 56). Orwell’s essay â€Å"Shooting an Elephant† is based on this historical tension. In this essay, OrwellRead MoreAnalysis Of Shooting An Elephant813 Words   |  4 Pagespleased and wishes to keep his reputation high. In the short story, â€Å"Shooting an Elephant†, George Orwell, who writes from his own experiences, describes the life of the narrator, a policeman in a foreign country, Burma. The narrator feels forced to shoot a wild elephant that has destroyed parts of a village. He does not want to shoot the elephant, but because the Burmese around him seem determined and excited to see the elephant die, the narrator feels compelled to do what the natives request toRead More Shooting an Elephant Essay1373 Words   |  6 Pagesessay, Shooting an Elephant, George Orwell illustrates his experiences as a British police officer, and reflects it to the nature of imperialism. He hates his job as a police officer in Moulmein because an â€Å"anti-European feeling was very bitter† due to British Empire’s dictatorship in Burma. Therefore, Orwell, a white man is being treated disrespectfully by the Burmese which allows him to hate his job and British Empire, the root of everything. However, the incident of shooting of an elephant givesRead MoreEssay on Shooting an Elephant486 Words   |  2 Pages â€Å"Shooting an Elephant† nbsp;nbsp;nbsp;nbsp;nbsp;I was not comfortable with many aspects of this story. The prejudice throughout the book was unimaginable, I find I am uncomfortable with any kind of bigotry. Reading of the Burmese people and their disrespect toward someone who was there to â€Å"protect and serve†, was difficult. I suppose I am naà ¯ve, I try to hold on to the belief that people of God are inherently good. I know there are bad apples in all walks of life, bad people areRead MoreShooting An Elephant By George Orwell1670 Words   |  7 Pageseventually caused me to comply. In â€Å"Shooting an Elephant,† by George Orwell, Orwell faced a similar dilemma. â€Å"Shooting an Elephant† is an essay that depicts Orwell’s conflictions about shooting a rampaging elephant while he served as an Imperial policeman in Burma during British colonial rule. In his essay, Orwell describes the difficult decision of whether or not to shoot the elephant and why he made his decision. Although he did not initially want to shoot the elephant, the social pressure of being surroundedRead MoreShooting an Elephant by George Orwell 884 Words   |  4 Pageshuddled in the corner in a state of shock with blood marks on his head and back. However, as I inspected the parakeets back closer, I saw that in fact the blood was flesh from the base of the wing which was missing. Similarly, like Orwell in Shooting an Elephant, I did not know what to do in the situation but I had to find a solution (pg.230). I did not have a clue how to treat an injured bird or if I should figure out first what and how the incident happened. The parakeet was bleeding heavily andRead MoreShooting an Elephant Literary Analysis895 Words   |  4 Pagesstory â€Å"Shooting an Elephant,† demonstrates the total dangers of the unlimited authority a state has and the astounding presentment of â€Å"future dystopia†. In the story, Orwell finds himself to be in an intricate situation that involves an elephant. Not only does the fate of the elephant’s life lie in Orwell’s hands, he has an audience of people behind him cheering him on, making his decision much more difficult to make. Due to the vast crowd surrounding his thoughts, Orwell kills the elephant in theRead MoreThe Feminine Mystique And Shooting An Elephant898 Words   |  4 PagesBoth The Feminine Mystique and â€Å"Shooting an Elephant† discuss the confrontation between the self and society. In The Feminine Mystique, Betty Friedan addresses â€Å"The Problem That Has No Name† referring to the widespread unhappiness of the housewife due to their obligation to uphold their ideal image rather than pursuing their dreams; in â€Å"Shooting an Elephant†, George Orwell comments on the societal expectations of imperialism and its effects on people who have the duty to uphold the law. In both ofRead More George Orwells Shooting an Elephant Essay783 Words   |  4 PagesGeorge Orwells Shooting an Elephant In Shooting an Elephant, George Orwell finds himself in a difficult situation involving an elephant. The fate of the elephant lies in his hands. Only he can make the final decision. In the end, due to Orwells decision, the elephant lay dying in a pool of blood. Orwell wins the sympathy of readers by expressing the pressure he feels as an Anglo-Indian in Burma, struggling with his morals, and showing a sense of compassion for the dying animal. Read MoreShooting an Elephant by George Orwell Essay585 Words   |  3 PagesShooting an Elephant by George Orwell In his essay Shooting an Elephant, George Orwell explains how the controlling authorities in a hostile country are not controlling the countrys population but are in fact a mere tool of the populous. Orwells experience with the elephant provided the insight for his essay, and gives a clear example of the control the natives have over the authorities. The authorities in Lower Burma were there to police the state that their government controlled, but

Why Our Children Will Not Have Cell Phones free essay sample

Some people agree that students should bring electronics to school other don’t. In the article â€Å"Hang It Up† by Jesse Scaccia, the author disagrees. She believes cell phones are a â€Å"status symbols†, students bring their cell phones to look cool, they want other kids to look at them and think they are so cool. A student that wants to succeed and be efficient in school shouldn’t use their cellphone in any class. I agree with the author, I believe that students have a bad habit of using their cell phones in class they can’t even control themselves.Many parents think that buying their kids a smartphone they are going to be better at school or get a better grade. Some parents buy their childrens cell phones in case theres an emergency or simply because they think the kid it’s going to behave better in school and some other parents buy it because they think their kid is doing great at school and they feel like surprising them. We will write a custom essay sample on Why Our Children Will Not Have Cell Phones or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Truth is a lot of these kids manipulate their parents so that they could buy them the latest phone. Electronics make a student fail if they are using it in class. â€Å"One reason students fail is that of the distraction in the classroom, especially the cell phone.† I can see where she’s coming from, a lot of students start to use the phone when the teacher is not looking and some of them don’t even care if the teacher is looking. I am going to agree and I am also going to say that I am one of those students, I use my phone in class but it’s never because I don’t want to learn or because I find the class boring. I think I’m just used to be always checking my phone.I believe that these kids have a bad habit. Nowadays you see parents buying their kids iPads or tablets to their young kids so that they could stay quiet, â€Å" There are legitimate causes that parents should be taking on. But they are wrong on this cell phone issue. In this case, they are part of the problem. I can see where she’s coming from but I also believe some parents are too overprotective. There’s been a lot of shootings in different schools in the U.S and I think that parents would like to know if their child is okay. That’s the only way that they can communicate. â€Å"Parents think cell phones as a connection to their children in an emergency.†