Bonanza Group of FINAL

LAUNCHING OF BONANZA IN RUSSIA

Project of International Marketing

Group members

Ch. Javed Iqbal Aish

Abdul Basit

Salman Ali

Umair Ahmed Shahid

Usama Tariq

Bonanza Group of Industries Pvt. Ltd

Established in 1976 Primarily, Bonanza deals in men’s

collection February 2011 Bonanza launched its first

designer series for women High quality, High price House of Bonanza outlet to pick up

readymade garments Absolutely world class

DESIGNING OF 4 P’S OF MARKETING FOR INTERNATIONAL

MUSICAL CONCERT

Project of International Marketing

Group members

Ch. Javed Iqbal Aish

Muhammad Rashid Khan

Yasir Fawad

Usama Tariq

Bonanza in Russian market

The main focus of our project is on the “Winter Wears” of Bonanza.

We are targeting the Russian market

INTERNATIONAL MARKETING ENVIRONMENT

Economic system GDP (2010): $1.477 trillion. Per capita (2011): $16,840 Growth rate (2011): 4%.

Economic Exposure Natural Resources(Petroleum, natural gas,

timber, furs) Agriculture Resources(Grain, sugar beets,

sunflower seeds, meat, Dairy products) Industries(coal, oil, gas, chemicals, metals)

INTERNATIONAL TRADE ENVIRONMENT

The U.S. and Russia concluded a bilateral WTO accession agreement in late 2006

Barriers with respect to imports Non-tariff barriers are frequently used to

restrict foreign access to the marketTrade

Exports: $376.7 billion

(Netherlands 12.3%, Italy 8.6%, Germany 8.4%)

Imports: $191.8 billion

(Germany 13.9%, China 9.7%, Ukraine 7%)

Social and Cultural Environment

Ethnic groups: Russian 79.8% Tatar 3.8%

Religion: Russian Orthodox Islam Judaism Other.

Language: Russian (official); 140 other languages and dialects.

Cont.

Work force: Services--58.1%, Industry--31.9%, Agriculture--10%.

The Russian Family Dependent upon all its members Most families live in small apartments Most families are small, often with only one

child Most women work outside of the house in

addition to bearing sole responsibility

The Political, Legal, and Regulatory Environments of Global Marketing

POLITICAL SYSTEM The political system established in1993 It has a stable political environment

Commercial Law Russia has a body of conflicting,

overlapping and rapidly changing Negotiations and contracts from

commercial transactions are complex

APPROACHING GLOBAL MARKETS

Market Research Purchasing power of Russia's various consumer

segments has increased Promotion and advertising of international

brands has increased Competition between local brands and

international brands is increased. Currently, some 37 percent of spending takes

place at small, multipurpose grocery stores Moscow considered having relatively high

business development potential than other areas

Segmentation, Targeting and Positioning

Our focus is on segmentation based on consumption habits, rather than on traditional

Three most promising groups for entering the market:

1. Spontaneous2. Ambitious 3. Innovators

Our target market(Innovators)

The share of these consumers in Russia as a whole in 2010 was only 15 percent, but relatively large in Moscow, constituting 18 percent

Higher purchasing power than average Under 30 years old business people and white-collar employees They live in major cities They prefer to spend their free time involved

in sports activities and "active" leisure

Import Regulations - Russia

Customs duties and charges: Duties to most goods, Ranging from 5 % to 20% of goods'

customs value For customs valuation it follows GATT/WTO principles Duties are paid in Russian roubles (RUB) or hard currency, Shippers Export Declaration (SED)  Imports are subject to a customs 0.15% of the value of

goods. Excise taxes, at rates ranging from 20% to over 570%, are

applied to some goods, such as alcohol Most imports are subject to a value-added tax (VAT) of

18% Russia allows temporary entry of goods for a period up to

two years

Certification

Certification and standards organizations in Russia include:

Federal Agency for Technical Regulation and Metrology (commonly referred to as Gosstandart): (in Russian, some information in English)

Russian Research Institute of Classification, Terminology, and Information on Standardization and Quality of Gosstandart ("VNIIKI") (enquiry point for Russian standards) (in Russian, some information in English)

Russian Research Institute for Standardization of Gosstandart ("VNIIS") (provider of certification services) (in Russian)

Russian Centre for Testing and Certification ("Rostest") (provider of certification services) (in Russian)

THE INTERNATIONAL MARKETING MIX

Product Type“Winter Wears of Bonanza”.

Brand“Bonanza”,

International products and Brands winter wears prêt collections

PlacesEastern &Western EuropeAfricaNorth &South America

Cont.

Packaging: Paper Box imprinted by Bonanza’s logo., different sizes and weights

Labeling: tags on plastic bags and paper boxes also.

Product Warranties: In Russian Market the warranty of garments is for six months

Pricing objectives and strategies: skimming pricing Strategy to provide the high quality to our customers.

Environmental influences on pricing decisions: normally cold during the year which helps us to sell our product easily.

Marketing channels and physical distribution 

Distribution channels structure: e strategic alliance with the distributors already working there. T

agreement with the Wall Mart, K-Mart and Seven Eleven retail

Supply chains: supply of our product will be low

Marketing communications decisions

Advertising and public relations: TV ads Magazines Newspapers Internet Billboards Fashion Shows 

Sales promotion: Discounts to distributors on their sales above the certain level. Buy one get one free or can be a 25-35% off on the purchase. coupon option for the customers.

Special forms of marketing communications:Email about new offerings and such information will be given

directly to the end users.