International And Global

Marketing
International/global marketing research

Suhard Amit
MBA RMIT ( Aus )
Dip Business Management ( Aus )
Dip in Marketing
The Consumer Today
Learning Objectives:

Information for the major global marketing

decisions
Assessment of Market potential in a country
International Buyer Behavior Research
Primary data and secondary data
Data collection methods
Strengths and weaknesses of contact methods
Sales forecasting
Scenario planning
 Information for the major global marketing
decisions
Global Marketing Decision phase
01. Deciding whether to
Internationalize
Assessment of global market
opportunities for the firms
products
Competitiveness of the firm
compared to local and
international competitors
Domestic Vs International
market opportunities
Commitment of the
management to
internationalize
03. Deciding how to enter
foreign markets
Nature of the product
( Complexity )
Size of the markets /
segments
Behavior of potential
intermediaries
Behavior of local competition
Transport cost
Government requirements
04. Designing the global
marketing programme
Buyer behavior
Competitive practice
Available distribution
channels
Media and promotional
channels
02. Deciding which
markets to enter
Ranking of world markets
according to the market
potential of countries
Local competition
Political risk
Trade barriers
Cultural / psychic distance to
potential market
05. Implementing and
controlling the global
marketing programme
Negotiation styles in different
cultures
Sales by product line / Sales
force / Customer type
Contribution Margin
Marketing expenses
Assessment of Market potential in a country
Type of information and sources
Research Suppliers

Internal External

Full Service Limited Service

Syndicated Customized Field Coding and Data

Services Services Services Data Entry Analysis
Services Services

International Buyer Behavior

Research
International Product Research
International Distribution
Research
International Promotion Research
International Pricing Research
Research is a key tool in Global & International Marketing

Marketing Research
insights
Market, Target
Groups,
Channels &
Competitors
Implementation
Plan
Strategic
Marketing Plan
Input Development
External Product
Strategy
Audit Tracking &
Findings Score card
Analysis Opportuni
ties Marketing Investment
Internal Key
Tracking
Findings Gap Strategy Price strategy
Audit Analysis Developmen Resource
findings
t managemen
t
Sales Data
Marketing
Industry Corporate Appraisal Promotion and
Research
Data Place Strategy
SWOT Analysis
insights Likelihood / Impact Analysis
Gap Analysis

Marketing research is a must before entering a new market

Definition: International Marketing
Research

International marketing
research is the systematic
design, collection,
recording, analysis,
interpretation, and
reporting of information
pertinent to a particular
marketing decision facing
a company operating
internationally.
Key Terminologies' in definition

Collection of data
Analysis of data
Interpreting information
Reporting of information
Management decision making
Group Discussion

Why is International marketing research important to an organization ?

Why Research ?

The Purpose of International Marketing Research

To gain more insights / understanding to customer / Segments /

Needs

To guide your communication with current and potential customers.

To reduce the risk of product-business failure

Uncover Market opportunities and threats

Forecast future trends

Uncovers and identifies potential problems for strategic planning

Measures Marketing Initiatives and used as a productivity analysis

tool

To Develop Strategic Marketing plans specific to a country

Characteristics of a good marketing research

Should be Descriptive :
Marketing research gives full description about the consumers.
Example ; describes their age, sex, education, income, Trade channel,
profile etc

Should Evaluate company / Marketing Performance :

Marketing research helps to evaluate the company's performance Vs
Competitor and the
industry, Evaluates Performance of the marketing Mix.

Should Explain the details & Justified

Marketing research gives explanations (answers) for all the marketing
problems. For
example, it answers in detail, why are the sales falling, why are the
retailers giving
negative reaction, etc. It gives all the causes or reasons for the
problem. It also tells how
to solve the problem.

Should Predict with a low margin of error :

Marketing research also gives predictions. Predictions mean to forecast
or estimate about
the future

Must aid in decision making : Marketing research helps the

marketing manager to
Characteristics of a good marketing research ( Cont )

Purpose of research is clearly defined

Insights based Within the scope of the defined parameters

and should not be completely outside the box
recommending a Cement manufacture to launch paints

Research procedures described in sufficient detail to

permit repeat - Sample Design, Data collection method,
Analysis methods

Procedural research should be carefully planned to yield

results that are objective. Example, Random sampling - The
right hand rule, Sample design

Researcher should report with complete frankness, flaws

in procedural design and estimate their effect upon findings

Conclusions drawn should be confined to those justified by

the data of the research.
The Market Research Process
2
Set specific
objectives
1
3

Define the Develop the

international International
research Research Plan
problem and
agree on the
research
objectives

7
Collect, 4
Analyze, and Define
Interpret Information
Data Sources

6 5

Decide on Design Data

the Collection
Sampling Instrument
Plan
Step 01 Define the international research
problem and agree on the research
objectives
Tasks Involved
Any situation
Discussio Intervie Secondary Qualitativ requiring further
ns with ws With Data e investigation is a
Decision Experts Analysis Research
Makers problem

What decisions will

be made on the basis
of this study?
Broader Context of the
problem What is the most
(least) desirable
outcome of the
Problem
research? Why?
Definition

Management Decision Problem identification

Problem should be SMART

Marketing Research
Problem
Step 02 Set specific research objectives

What information am Iseeking to gather? Why do I need it?

What is the end game regarding what Im trying to learn?

Who (exactly) can I get this information from? How can I

contact them? How many people do I need to contact, and do I have an
exhaustive list? Am I interested in any particular subgroups?

Has anyone else done a similar project in the past? If so,

what did they find out and how could what they did help with my current
project?

What kind of data and results do I want my questions

to produce? Am I interested in public opinion, actual behaviors,
satisfaction levels, employee feedback/workplace surveys, etc.? How will I go
about collecting and analyzing the data?

How will my results be reported? What will the report format

look like, and who will receive the results? What kind of summary data do I
need, and how can I design questions with response options that will provide
me with actionable data?
Step 03 Develop international research plan
Marketing Research
Pick the appropriate Data

research design
based on the
problem and budget Primary Data Secondary Data
available

Ensure the sample

size selected projects
accurate information Qualitative Data Quantitative Data

One research
methodology may
not provide an
accurate explanation Descriptive Causal

Seek sampling
expertise before
Observation Experiment
implementing a Survey Data
al and other al
research exercise data
Step 04 Define information sources

Primary Data Information collected specifically for the

investigation at hand.
Used when an organization needs specific
Previously
informationpublished information. i.e Internet
Secondary Data statistics / Census reports / Industry studies /
Macro analysis
An extensive array of research methods used with the
intention of observing consumer interactions with
products and services in their natural surroundings. The
main advantage to conducting observational research in
business is that the consumer are often unaware they
Observation are being monitored allowing the researcher to make an
al Research objective analysis.

Data Collection techniques

Observing customers during purchase in a

supermarket
Observing customers through a security camera
Ethnographic research Staying in a house for a week
DCC Direct Consumer Connects - Used mainly for
senior
level managers to meet consumers / households
Group Discussion

What are the draw backs of primary data ?

What are the draw backs of secondary data ?
 Secondary Data Constraints

Conceptual Equivalence
Concepts have different meanings in
different cultural environments

Functional Equivalence
Products themselves may be used for
different purposes in different country
environments
19
Secondary Data Constraints, continued

Availability, Reliability, and Validity

Accuracy of secondary data can be questionable:
Published statistics may be unreliable

Sources of reliable data:

- World Bank
- United Nations Development Program
- Organization of Economic Cooperation and
Development (OECD)
- Euromonitor

20
Step 04 Define information sources
Quantitative research are research that is undertaken using a
structured research approach with a sample of a population to
produce quantifiable insights in to behaviour, motivations and
attitudes. Wilson (2006)

Data Collection techniques

Face to face field surveys

Online
Telephone
Quantitative Combination of above

research Research types

OMNIBUS surveys Syndicated studies such as retail audit

Placement test Respondents are given a product to use at home and

evaluate through questioner
CLT Central location test Tea testing

Simulated test markets Staged advertising and purchase situation

Retail & Consumer panels A permanent representative sample used by an

agency
Media agencies use a 400 sample base to track viewership

Opinion Poles Political campaigns voting ( Understand the mood of market

Step 04 Define information sources

Qualitative Research involves finding out what people think,

and how they feel It involves feelings and impressions, rather
than numbers (Marketing, American Marketing Association )

Data Collection techniques

Recruitment criteria
Mini Focus 4-6 Max respondents
Pre defined Recruitment
Focus groups 8-10 max respondents criteria
Qualitativ Depth interview one on one Recruitment Questioner
Observational Behavioural based (RQ)
e research DIG Depth Interview followed by a Group Discussion guide (DG)
Moderator conducts the
group
Projective techniques

Complete the sentence exercise I think Mac Donald food is ......

Word association First word that comes to your head when you hear
Rolex
Brand personality ( Brand CV ) Write a CV for a brand in
consideration
Brand mapping Mapping products Vs competitors
Photo Sorts Show famous personalities and classify brands they use
Step 04 Define information sources
Descriptive research methods are pretty much as they
sound they describe situations. They do not make
accurate predictions, and they do not determine cause
Descriptive research and effect. It can only describe the "who, what, when,
where and how" of a situation, not what caused it.

Observational research
surveys

Causal research, as the name specifies, tries to

determine the cause underlying a given behavior. It
finds the cause and effect relationship between
variables.
Causal research
For example, a marketer may want to determine the
cause of dip in sales. He would test the sales against
various parameters like selling price, competition,
geography etc.

This type of research can take two forms:

Experimental The research performs structured

experiments to vary one variable and find the effect on
the behavior/end result
Group Discussion

What are the draw backs of quantitative research ?

What are the draw backs of qualitative research ?
Step 05 Design Data Collection Instrument

Measure
phenomena specific
to each culture.
Measure the same
phenomenon in
different cultures.

Constraints: Translation; Instrument Reliability;

Reluctance to answer certain questions
 Step 06 Decide on sampling plan

Mothers Children Retail

Involves planning, execution,
Frequency Quarterly Quarterly Monthly supervision & checking for errors
Selection Random Panel Panel
HCMC 201 21 118
MR must be planned & executed
well so as to complete within
Central 88 14 33
resource & time limits
Hanoi 85 16 34
Mekong 82 13 41 Progress to be closely monitored
to avoid time & cost overrun
Nha Trang 44 8 28

Dong Nai 66 11 25 Extensive back checks & spot

checks will improve the quality
East 44 7 15 of MR output
Far East 54 13 14
Dalat 37 7 12
Total 700 110 320
 Step 07 Collect, Analyze, and Interpret Data
Market reach by an agency is critical in order for a elaborate study to be
conducted

City based Head office

Regional Coverage facilitated by regional field offices
Regional supervision capacity
Appropriate and adequate accompanied checks &
Back checks
Head office managed quality control
Regional data collection and logistics points
Language capabilities
Field force experience
Technology Tabs / Mobiles / laptops
Demarcation of areas and local market knowledge
Break 15 Min
 International Product Research

Concept development
and testing studies
Brand name
generation and testing
Product testing
Competitive product
studies
Packaging design
studies
Test marketing
Concept development & testing

Concept Development

Concept Testing Volume Analysis

Product Testing Bases Analysis

CLT Test Sales Potential
Focus Groups Operations planning
Product Testing - Steps in the Process

Protocept - A protocept is
the product developed in the
laboratory to meet the
promises of the product
concept. Not technically
feasible

Prototype A Prototype is
The Outcome of a Protocept,
Generally Optimized Through
Pilot Plant Trials. Prototype is
technically feasible

Final Product Tested and

approved for launch
Concept Development Testing
Research Objectives
The Key Objectives of the research are;

1. To determine the overall acceptance of the product vis--

vis its key competitor benchmark products

2. To measure the performance of the product on the core

functional product quality properties vis--vis its key
competitors.

3. The core functional product quality properties being, taste,

texture, appearance, aroma and colour
Target Respondent
Two segments to be covered, namely,
Segment I: Children
Segment II: Mothers
Segment I : Children
Males and females 50 : 50, age 8 to 15 years
Socio Economic Classification (SEC)- B, C and D - 20:30: 50
Current Users of CCC and Competitors 50:50, consuming brand at least 3-4 times a
week

Segment I : Mothers
Housewives / working women
Age 30 to 45 years
Socio Economic Classification (SEC)- B, C and D - 20:30: 50
Current Users of CCC and Competitors 50:50, giving brand to children at least 3-4
times a week

Geography : Urban Centre (Colombo MC and Suburbs) and Semi Urban

Research Design
Quantitative in the form of a Central Location Test (CLT). In a CLT, the
Module target respondents are pre-recruited and bought to a central location
where they will taste the products and give feedback accordingly.

Sequential Monadic approach where same respondent will test

3
Approach
Products one after the other, and the order of the products will
be
rotated to eliminate the biasness
03 Products namely
Products to be CHOCO CHIP ( Clients product )
tested Key Competitor benchmark 01
Key Competitor benchmark 02

To be tested unbranded
Product Format
Competitor Brand 1 has branding on top, Therefore serve it
upside down so respondents dont see any branding
Competitor brand 2 has no branding, therefore serve as
whole biscuit
Data Collection
methodology Face to face interview via structured questioner
Analysis CCC vs. Competitor

CCC Comp

Brand A out performs

Brand A and Brand B Brand B out performs Brand A-
Brand B Positive
Product on par Negative Significance
Significance
Competitor product analysis

3.2 ML Liter total for Exterior

200000

180000

High-Tier (24%) 5L Jotashield Extreme

160000 5L MK S pecial
0.80ML 18L AD / WR
5L Jotashield 5L NanoShield
140000 Flex
5L Weatherguard
15L Jotashield
5L Antiheat Hitex
120000
5L MK Semigloss
5L Hitex

100000
Price / Liter
Mid-Tier (44%) 18L Inspire Ext
1.4ML 18L Boss Shellshine
80000
18L 4 Season Satin
60000 18L Spec Ext
18L Jotatough
18L 4 Season
18L Expo Ext 18L Super Matex
40000
18L MX

Low-tier (32%) 20000

1.0ML
0
AN 4 Oranges Jotun Toa Nipon

Exterior Category

Data Source : Marketing Department Internal Data / Project Sales Price List / Competitor Price List
 Competitor Analysis

Akzonobel Jotun Nippon

Low Med High Low Low High

Med High Med

Portfolio offer

Company Reputation

Brand Name

Quality Perception

Pricing

Relationships

Service Delivery

Professional Staff

Dear Profitability / Margins

Easy Ordering / Delivery

Unethical Business Practice

Packaging studies

Dulux Professional WS Matt Dulux WS Matt

20L 5L

41
Test Marketing

Test Marketing is the Stage Where the Product and Marketing Program are
Introduced into More Realistic Market Settings.

Promotions
Promotions Product
Product

Packaging
Packaging Positioning
Positioning
Elements that
May be Test
Branding
Branding Marketed by a Advertising
Advertising
Company

Pricing
Pricing Distribution
Distribution
Test Marketing

Standard
Standard Controlled
Test Controlled
Test Market
Market Test
Test Market
Market
Full
Fullmarketing
marketingcampaign
campaign AAfew
fewstores
storesthat
thathave
have
in
in a small numberof
a small number of agreed to carry new
agreed to carry new
representative cities.
representative cities. products
productsfor
foraafee.
fee.

Simulated
Simulated
Test
Test Market
Market
Test
Testin
inaasimulated
simulated
shopping environment
shopping environment
to
toaasample
sampleofof
consumers.
consumers.
Group Discussion

What would be the recommended research methodology for a

competitor analysis ?
 International Buyer Behavior Research

Brand preferences
Brand attitudes
Brands awareness studies
Purchase behavior studies
Consumer segmentation studies

45
Brand preference & awareness studies
Perceptual Mapping Brand attitude studies

A touch of class / a car to be proud to own

Lincoln Porsche
Cadillac
Mercedes BMW

Chrysler Fun to
Conservativ Buick Pontiac
e looking / drive /
Oldsmobile
appeals to sporty look
older / appeals
Ford Chevrolet
people to younger
Dodge Nissan people
Toyota

Plymouth
VW

Practical / affordable / good gas mileage

 Purchase behaviors
TOTAL
Derived Importance
Image & Functional

Trustworthy brand
Leaves smooth surfaces
It is very elastic
Minimize wall cracking

Brand Performance (Top 2 Boxes) in %

Best suit to brick layering
19%

High durability
Premium brand
Is quick in setting
Best suit to slab
Is imperviable in the sun
Durable in all weather conditions
Best suit to foundation
Uses high quality materials
No burned issues happens on wall
Recommendation

Is used in many important national construction works

Is recommended by consumers
Is recommended by contractors
17%

Is a long established brand

Products are always available
Is consistent in every single pack
Able to use in different items of work with only one product type
Has the most stable price in the market
High-tech production line
Has attractive promotion
Is a pioneer brand in society and community development
Others
1%

Is friendly to environment
Manufactured by a Joint Venture Corporation

Ref: Q102
Methods for Market Segmentation
Group Discussion

In your Groups select an Automobile organization of your choice.

Define the key market segments you presume who are buying the
company products, Who is the target market you think is most
effective ?
 International Distribution Research

Import/export analyses
Channel performance and
coverage
Plant/warehouse location studies

51
 Plant to Market Analysis
Source : TPM Volume sold YTD
Shipping Stations
Cat Lai
Can Tho 03% Volume Dispatched Dak Lak / Dak Nong
YTD 2.4%
An Giang 09% 49%
Khanh Hoa
Dong Nai 03%
3.9%

Binh Doung 01%

Binh Phuoc Ninh
Binh Chanh 01%
Tay Ninh 0.7% Lam Dong 6.5% Thuan

3.3% 1.1%
Hong Chong Dong Nai
Binh Duong
Volume Dispatched 5.4% Binh Thuan
1.9%
YTD 2.2%
23%
2%
Vung Tau
Dong Long An 4.1%
2.0%
Thap
East Region
An Giang
1.5% Tien Giang 3.7% HCMC HCMC
4.6% 32.2% Mekong North
2.4% Ben Tre 1.1%
Vinh long
Mekong South
Kien
Giang Tra vinh 1.4%
Ca Mau 4.8%
Can Tho 3.5%
Thi Vai
7.7%
Volume Dispatched
Soc Trang 2.3% YTD
Bac Lieu 1.2%
28%
52
Holcim Vietnam Sep.2006 Suhard
Distribution mapping
Year 2010
77% of Total bag volume consumed by House builders in Srilanka

Cement Suppliers Total Market (3.0 Mil. tons)

Transactional Agents 100 Distributors

2% 10% 62% 9% 7% 10%

Bag flow
Wholesellers
5% 10% 80%
5%
6500 Retailers
30% 5%
65%

Buyer Nat/For
Home builders 46% Small contractor 31% 9% Small CPM 14%
Segment contractor

End Customer House Builder House Builder Large Investor House Builder
Small investor Small investor Government Small Investor
Example Numeric distribution
50%

45% *Numeric Distribution: Percentage of handlers for a particular brand within the total
universe
40%

35%
32%
32%
30% 29%
29% 29% 29%

25% 24%
22% 24%
23%
20% 20%
21% 21%
20% 18% 18% 20%
19%

15%16% 17%

14% 14%
13%
10% 12%

5%

0%
Aug'13 Sep'13 Oct'13 Nov'13 Dec'13 Jan'14

Brand A Brand B Brand C Brand D

Example Weighted Distribution analysis
50%
47%
45%
45%
*Weighted Distribution: Percentage of total category sales among
the handlers of a particular brand
40%

35%

30%

25%
22%
20% 20%
20% 18%
16% 16%
15%

10%

5%

0%
Brand A Brand B Brand C Brand D

Dec'13 Jan'14
Example SAH Analysis
100%
Share Among Handlers (SAH%): Percentage of volume sales
among the handlers of a particular brand
90%

80%
80%
75%
70%
70%
65%

60%

50%
45%
40%
40%

30%
30%
25%

20%

10%

0%
Brand A Brand B Brand C Brand D

Dec'13 Jan'14
 International Promotion Research

Studies of premiums,
coupons, and deals
Advertising effectiveness
research
Local media research
Studies pertaining to
personal selling activities
Sales Force Compensation
Territory mapping

57
Packaging and Visual Studies

Tracking eye movement Promotional material, Commercials planning

I tracker

Where does your

consumer first look ?

How long do they look at

your messages ?

Where do they spend

most time on poster ?
I tracker
I tracker
I tracker
Sales force Planning..
SC Central
1. Limited No of Projects in
SC
2. Appoint 02 Distributors
3. No Projects staff
AN Distributor Dak Lak / Dak Nong placement
4. Project team to only work
Sales Supervisors on Key projects in SC
Khanh Hoa above 20,000m2
Technical Staff 5. Sell in conducted by
Tay Ninh Dong Nai Lam Dong Retail
Binh Phuoc Ninh Thuan 6. Tinting done at
Distributor
Binh Duong
Binh Thuan
1. Adopt transition model through 05
Agents
Vung Tau 2. Implement Direct sales model
HCMC
3. Deliver to site
Long An 4. Tinting at Binh Duong plant
HCMC / Ex
Dong 5. Assign 60% of sell in target as sell out
An Giang
Thap Tien Giang
targets for project sales staff - March
Ben Tre
Vinh long
Kien Can
Ca Tho Tra vinh
Mau Giang
1. Move to Distributor Model in Q1
Soc Trang
Bac Lieu
2. Appoint 05 distributors to serve MK market
3. Inform key customers in MK change in Distribution channel ( March )
4. Agreement signing with Distributors for Projects target 2013 March
MK 5. Assign 60% of sell in target as sell out targets for project sales staff - March
6. Sell in Target agreed together with Retail team - March
7. Distributor pricing agreed, finalized and communicated - March 2013
8. 01 Project sales staff to cover all Distributor markets in MK for 20,000m2 up
projects
Group Discussion

What are the key parameters that needs to be analyzed when

conducting a productivity analysis of the Sales department ?
 International Pricing Research

Studies projecting demand

Currency and counter trade studies
Studies of inflation rates and pricing
Studies of negotiation tactics

65
BASES ...Model estimating demand
What consumers actually
Estimate
Estimate
For
For a
a combination
combination of
of concept
concept data,
data,
will do
product
product data, and marketing plan
data, and marketing plan

BASES is a Etc.
comprehensive,
validated sales
estimating system
Trade Investments
which integrates
consumer response data Promotions
with manufacturers
marketing plans to
assess the volumetric Distribution
potential of concepts
and products prior to
introduction Awareness

Adjust
Adjust for
for Overstatement
Overstatement
Trial
Trial and
and Repeat
Repeat Models
Models

What consumers say

they will do Consumer
Consumer Response
Response Data
Data
66
Market Overview

Land area - 238,537 sq km

Population - 25.7m (2015, IMF)

Gold, cocoa, petroleum and individual

remittances are major sources of foreign
exchange.

Agriculture continues to be a significant

driver of the domestic economy,
accounting for 23 percent of GDP and
employing 35% of the work force

With the 2007 confirmed discovery of

commercially viable offshore oil reserves
in Ghana (Jubilee Field) and production
which begun in December 2010, there
has been increased international interest
in the Ghanaian market

Source : Export.gov official site of the U.S. Government / Bank of Ghana / World Bank
Reports
 Population - Ghana

+12%

10%
12%
13%
13.5%

30 28.3
25.7
25 23.1
20.4
20

15

10

0 2/24/17 2/24/17
2/24/17
2002-2005 2006-2010
2/24/17 2011-2015 2016-2020
2/24/17

12% Average population growth since 2002, however decline in growth rate seen over the past 15 year

Source : Export.gov official site of the U.S. Government / Bank of Ghana / World Bank
Reports
Population - Ghana

65 above 4.1

55-64 4.8
Age Distribution

25.7 Mil Male

49%
25-54 33.8 Female

15-24 18.7

00-14 38.6

0 5 10 15 20 25 30 35 40 45

Only 8.9% population living above 55

years indicating low life expectancy in
Ghana ( 61 Years ) Equally distributed Male and female
population
Mainly due to unhealthy social
practices among Ghanians. (Every 8
out of 100 people are obese )

Source : Export.gov official site of the U.S. Government / Bank of Ghana / World Bank
Reports
GDP growth

Ghana economy faced major

challenges in the form of a sharp The economy is expected to recover,
16 currency depreciation, rising inflation registering a growth of around 6%,
14 and interest rates. bolstered by an increase in oil and gas
14 production, private sector investment,
improved public infrastructure and the
12 countrys political stability.

10 9

8 7 8
7
7 7
6 6
6
5
4
4

- 2/24/17 2/24/17
2010 2011 2012 20132/24/172014 2/24/17
2015 2016 2017 2018 2019 2020
2/24/17
GDP Growth rate Moving average (GDP Growth rate)

Source : Export.gov official site of the U.S. Government / Bank of Ghana / World Bank
Reports
Inflation rate projected at 17.5% for the next 3 years

Inflation in Ghana is largely driven by

housing, gas, water and electricity
that increased by 36%

Food inflation, in the past 2 years

rose from 0.1%t to 6.6%, which has
been attributed to a rise in input
costs such as transport, following the
3% rise in petroleum products

The price drivers for food driven by

coffee, tea and cocoa, mineral water,
soft drinks, fruits and vegetables
among others

2022 Target 7.5%

Source : Export.gov official site of the U.S. Government / Bank of Ghana / World Bank
Reports
 Total Market Beverage estimated at 16.5 Billion USD

Total Market tea worked out at

18.2 Million USD based on Avg
Soy Beverages; 1% Milk; 2%
price of 71 GHc
Alcoholic Drinks; 15%
Water Sachets/Bottles; 30%
11% tea market projected to
Fruit Juices; 10% total market of beverages
Coffee; 2%
Note Need further
Tea; 11% Carbonated Drinks; 13% information on other beverage
category volumes and average
Powdered Instant Drinks (i.e. Nescafe, Milo, Cowbell, Chocolate Drinks); 15%
prices for a more accurate
market projection

Source : Unilevers Press Conference 2015 / Internal Market visit data

Group Discussion

Select a country of your choice and discuss ways to

understand the demand for Ice creams in the country..
 Sales Forecasting
A company can forecast its sales either by forecasting the
market sales (called market forecasting) and then determining
what share of this will accrue to the company or by
forecasting the companys sales directly
 Sales Forecasting
Sales Force Composite Estimates
Personal observations and expectations of the
local sales force
Jury of Expert Opinion
Opinions of different experts about future
demand
The Delphi Method
Experts to estimate market performance;
findings are aggregated, and experts are
queried again, in light of aggregate responses

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Sales Forecasting, continued
Time Series and Econometric Models
Use data of past performance to predict future
market demand
Analogy Methods
Estimation method that relies on
developments and findings in markets
- With similar levels of economic development, or
- Where the product is in the same market
development stage, or
- In markets which share similar cultural
characteristics

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Example of trend
forecasting
 Scenario Planning
Scenario planning allows us to
consider a range of alternative
futures, each of which is dramatically
different from the other and from the
current operating environment
Development of scenarios A and B
over time