...IMPACT OF TARGET IN INDIA Prepared for Richard Thomas, CEO Target, Minneapolis, Minnesota Prepared by Bhumi Gandhi Senior Research Consultant Target, Chicago, Illinois November 22, 2013 EXECUTIVE SUMMARY Target Corporation has decided to expand their business to India. The study was authorized by the CEO of Target when all other crew of the company approved for expansion business to India. The CEO of Target Corporation requested an evidence to show the positive impact of expansion. Our conclusion that Target will have positive impact in India is based on scholarly articles, cultural books and research. In order to achieve success in India, the company will have to consider these aspects of the culture: * Social customs: Target needs to adapt various cultural, religion and taste preferences. * Family life: Big quantities will be sold much faster as the basic building block of Hindu society is the joint or extended family. * Religion and Folk belief: Religion has a huge impact on the daily life of almost everyone in India. Business have to holidays on holy festivals of India. * Economic Institutions: Employees must get paid a monthly salary. Target has to compete with “Kirana” stores that sell groceries and food to consumers at a low price. On the basis of these findings, it is recommended that Target needs to offer products not only at a lower price but with good customer service. Target Corporation has to avoid selling beef...
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...------------------------------------------------- LBO Financing in India Group 2 | ------------------------------------------------- LBO Financing in India Debasish Mishra G13073 Manvendra Mahto G13081 Ranjit Rawat G13095 Vikram Bhatt G13116 Debasish Mishra G13073 Manvendra Mahto G13081 Ranjit Rawat G13095 Vikram Bhatt G13116 A leveraged buyout (LBO) is when a company or single asset (e.g., a real estate property) is purchased with a combination of equity and significant amounts of borrowed money, structured in such a way that the target's cash flows or assets are used as the collateral (or "leverage") to secure and repay the money borrowed to purchase the target-company/asset. Since the debt (be it senior or mezzanine) has a lower cost of capital (until bankruptcy risk reaches a level threatening to the lender[s]) than the equity, the returns on the equity increase as the amount of borrowed money does until the perfect capital structure is reached. As a result, the debt effectively serves as a lever to increase returns-on-investment (ROI). The purpose of a LBO is to allow an acquirer to make large acquisitions without having to commit a significant amount of capital. A typically transaction involves the setup of an acquisition vehicle that is jointly funded by a financial investor and management of the target company. Often the assets of the target company are used as collateral for the debt. Typically...
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...2014145 Gaurav Nolakha 2014146 Ghanishtha Agrawal 2014147 The slugfest between Germany's Big Three automakers in India has a new winner. After leading the Indian luxury car market for four straight years BMW has dropped to the third position. The new leader is Audi India, followed by Mercedes, which has also moved one place up. Both Audi and Mercedes have been working feverishly to gain better market share in the country. To this end both Audi and Mercedes opened several new dealerships across the country. Mercedes currently has the largest reach as far as service centers and dealerships are concerned. For Audi, its SUV line up has been a strong point as well. Things, however, could easily change for BMW in the coming months due to introduction of new vehicles. BMW recently launched the 2013 7 Series luxury sedan facelift in the country. Furthermore, it has new vehicle launches planned. A report, by TOI, dated 26th August 2014, stated that consumers from smaller towns like Ludhiana, Coimbatore, Surat and Pune are driving online search for luxury cars in India with BMW and Mercedes-Benz emerging as the favourites at the top of the list, tech giant Google said today. According to Google’s trends, conducted between January and August 25, German car makers BMW and Mercedes-Benz were the most searched luxury car brands in India, followed by Tata’s Jaguar and Audi. Smaller cities and towns are now very much part of the mainstream markets with most number...
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...areas in India are considered poor; however, “On the map of poverty in India, the poorest areas are in parts of Rajasthan, Madhya Pradesh, Uttar Pradesh, Bihar, Jharkhand, Odisha, Chhattisgarh and West Bengal”. As a company, we will try to centralized our mainly distribution to the poorest areas. According to The times of India (2012), “Just over half of rural India uses electricity as its main source of lighting, an increase of 12% over 2001” it also shows that “43% of rural households still use kerosene to light their houses”. However, in India there are still “11 lakh (1,100,000) households in India with no source of lighting whatsoever”. Impact statement: Our target market will be mainly poor population in India, which can be verified...
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...seriously in the Indian market. Part of the BRIC (Brazil, Russia, India and China), everyone is according to say that India will become the 5th country in term of luxury consumers, and this before 2025. The demand of Indians people regarding luxury products and services increased during the last two year from 120 to 150%. According Altagamma, an association of Italian luxury companies, over 500 international brands listed, only 150 would be introduced into India -‐ against 350 in China today. We can observe a strong dominance for products such as watch and jewelry, they represents actually 47%. In comparison with brands of ready-‐to-‐wear, they are representing only 14% of the luxury business. The potential region India conventional long name Republic of India is a state located in South Asia. It is the seventh-‐largest country...
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...Louis Vuitton in India Executive Summary Louis Vuitton Moët Hennessy, the world’s leading luxury brand, made the decision to formally enter India in 1999. India was a familiar market for Louis Vuitton as the company had filled custom orders from maharajahs since the late 19th century. However, the Indian market was unlike any in which the company was currently operating. The changing socio-economic conditions of the developing nation opened up opportunities for the brand but also posed unique challenges such as changing customer profiles and concepts of luxury. In the West, luxury goods are often sold through company-owned stores in a luxury retail cluster spread over several blocks, usually in a city’s downtown core. In cities that did not have luxury retail clusters, Louis Vuitton operated in luxury malls. Previous attempts to develop premium retail space in India had not been successful. Nevertheless, several real-estate entrepreneurs had plans to open an estimated 300 luxury malls in India by 2010. In India, Louis Vuitton’s first two stores were introduced in luxury malls in New Delhi and Mumbai targeting customers who had shopped abroad and were familiar with the brand. The company was now looking to increase its reach and teamed up with other global brands to develop luxury malls in five Indian metros. Does a high-end brand have a market in a low income country? According to the National Council of Applied Economic Research, in 2001-02 there were 20,000 families...
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...Table of Contents * EXECUTIVE SUMMARY………………………………………………………………………1 * OBJECTIVES……………………………………………………………………………………….1 * TARGET MARKET……………………………………………………………………………….1 * CULTURE……………………………………………………………………………………….1 * PRODUCT…………………………………………………………………………………………..3 * CORE………………………………………………………………………………3 * ACTUAL………………………………………………………………………….3 * AUGMENTED………………………………………………………………….4 * PROMOTION……………………………………………………………………………………...5 * DISTRIBUTION…………………………………………………………………………………….7 * PRICE………………………………………………………………………………………………….8 * CONCLUSION………………………………………………………………………………………8 * BIBLIOGRAPHY……………………………………………………………………………………9 BRAUN EXECUTIVE SUMMARY: The report contains a breif analysis of various section of ‘Braun’, which is one of the effective product of Procter and Gamble. Our objectives are clearly stated and appaently a target market is selected. In our case the chosen country is India, complete research of the target market is done under 4p’s. * Under target market, culture and target demographics are spoken in detail. * Likewise in Product section, key aspects of the trimmer are vastly explained. * Promotion topic explains various advertising methods which are going to be implemented in India. * Under price we have discussed about the adaptable price for the Indian economy. * Furthermore in distribution, important states where the branches have to opened are identified. Moreover tarrifs and other...
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...Experiences Consumers ~ Firm Co Creation of Value The Future of Competition 5 © C.K. Prahalad BOP: A Contested Ideological Market? Public Sector, AID, Multilaterals Universal Solutions CSOs Social Justice Personal Philanthropy Agendas New Business Opportunities Private Sector: Large Firms, including MNCs ? © C.K. Prahalad 6 What You See is not What it is……….. Source: FT, April 20, 2004 © C.K. Prahalad 7 Source: Mr. Subrato Bhowmik © C.K. Prahalad 8 The Cell Phone Industry: 1. Great growth Story in BOP markets around the world Sub Saharan Africa, S. Africa China, India Thailand, Philippines, Indonesia Latin America 2.5 billion connected around the world 2. The industry has Cracked the BOP Code 3. India is one of the fastest growing Markets: 7 million/month 4. Cost of service: Lowest in the world 5. Market Cap of 4 firms in India: $ 75 billion + 6. Cell phone is...
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...Case Context via “5Cs” framework Company: Cottle-Taylor is an established company started in 1815. By 2009 they had a strong product portfolio of over 200 oral care, personal, care, and home care products. In 2009 nearly 50% of the company’s revenue came from emerging markets. Cottle-Taylor conducts its India operations through a subsidiary called Cottle India. The India operations are focused on oral care, which includes toothpaste, tooth powder and dental floss. Focus area for this case is the toothbrush market. Cottle is the market leader (46% market share) in toothbrush market in India. It is perceived as a trusted & quality brand because of its association with IDA (Indian Dental Association). Cottle India is adequately supported by the parent company and follows a decentralized approach for India market strategy. For new markets Cottle’s general approach is to enter market with basic models and competitive prices, and gradually shift the focus to high-margin products. In India Cottle’s most successful toothbrush brand is Complete (accounted for 67% of Cottle’s total unit sales in 2009), which is also the lowest-priced toothbrush for adults. Competitor: Hinda-Daltan & SarIndia are two distant competitors with 21% and 11% market share respectively. The remaining share of toothbrush market is composed of low-quality, low-priced products imported from China and Vietnam. Cottle has a competitive advantage in toothbrush industry due to its manufacturing excellence...
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...---------------------------------------------------------------------------------------------- 3 2. General Environment analysis of the Mobile Industry in India --------------------------------6 3. Business model of Xiaomi with India market analysis--------------------------------------------9 4. Comparison between Samsung and Xiaomi -------------------------------------------------------11 5. Recommendation---------------------------------------------------------------------------------------13 6. Conclusion ------------------------------------------------------------------------------------------------15 7. Reference ------------------------------------------------------------------------------------------------ 15 1. Introduction 1.1 Background information of Xiaomi Xiaomi, a leading smartphone brand in China, has been trying to enter India’s mobile market in this year. India is a developing country which has a potential market for smartphones. There will be a detailed explanation and analysis of how Xiaomi enters India’s mobile market. We will also evaluate its strategy and provide some opinions or recommendations. We will describe the business model of Xiaomi and the original strategy that Xiaomi used in mainland China first. Then talk about the mobile market of India and the general environment of India. Point out some problems that Xiaomi is facing and try to provide some recommendations to solve its obstacles. Beijing Xiaomi Technology...
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...Louis Vuitton in India Executive Summary Louis Vuitton Moët Hennessy, the world’s leading luxury brand, made the decision to formally enter India in 1999. India was a familiar market for Louis Vuitton as the company had filled custom orders from maharajahs since the late 19th century. However, the Indian market was unlike any in which the company was currently operating. The changing socio-economic conditions of the developing nation opened up opportunities for the brand but also posed unique challenges such as changing customer profiles and concepts of luxury. In the West, luxury goods are often sold through company-owned stores in a luxury retail cluster spread over several blocks, usually in a city’s downtown core. In cities that did not have luxury retail clusters, Louis Vuitton operated in luxury malls. Previous attempts to develop premium retail space in India had not been successful. Nevertheless, several real-estate entrepreneurs had plans to open an estimated 300 luxury malls in India by 2010. In India, Louis Vuitton’s first two stores were introduced in luxury malls in New Delhi and Mumbai targeting customers who had shopped abroad and were familiar with the brand. The company was now looking to increase its reach and teamed up with other global brands to develop luxury malls in five Indian metros. Does a high-end brand have a market in a low income country? According to the National Council of Applied Economic Research, in 2001-02 there were 20,000 families...
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...this report it would be clear as to how café coffee day should capitalize on their strengths and exploit the opportunities that lay. The general idea for the first year of extension is to build awareness and create the thrill and the excitement towards Café Coffee Day in North India; this is done with a long term view towards the venture as the first year would focus on building brand loyalty and image for the company to be able to reap the rewards from the second year onwards. The target market of the company is the age group of 15-29, consequently the medium and channels selected to market the products are those that appeal to them and is often within their reach. The other strategies, including the price, services, marketing message, and positioning is also created around the likings of this particular age group. The report would provide the details of the extension and other areas that require the attention via the action plan. And to further examine the details of the extension, the budgeting section would enlist the finances required to support the venture, and state the expected income sufficient for breaking even in the first year. From the report it is discovered that each outlet should target a minimum of 100 customers per day. And failure to do so would result in the Area Manager to be of assistance to the particular branch and help find ways in which the performances could improve. The control and review section specifies the details of the emergency planning; and...
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...this report it would be clear as to how café coffee day should capitalize on their strengths and exploit the opportunities that lay. The general idea for the first year of extension is to build awareness and create the thrill and the excitement towards Café Coffee Day in North India; this is done with a long term view towards the venture as the first year would focus on building brand loyalty and image for the company to be able to reap the rewards from the second year onwards. The target market of the company is the age group of 15-29, consequently the medium and channels selected to market the products are those that appeal to them and is often within their reach. The other strategies, including the price, services, marketing message, and positioning is also created around the likings of this particular age group. The report would provide the details of the extension and other areas that require the attention via the action plan. And to further examine the details of the extension, the budgeting section would enlist the finances required to support the venture, and state the expected income sufficient for breaking even in the first year. From the report it is discovered that each outlet should target a minimum of 100 customers per day. And failure to do so would result in the Area Manager to be of assistance to the particular branch and help find ways in which the performances could improve. The control and review section specifies the details of the emergency planning; and...
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...International Business Plan Starbucks India Proposal by Vrushali Paunikar 1 Table of Contents I. EXECUTIVE SUMMARY……………………………………………………...…………….p.3 II. INTRODUCTION……………………………………………………………….……………p.4 III. ANALYSIS OF THE INTERNATIONAL BUSINESS SITUATION……………………...p.6 IV. PLANNED OPERATION OF THE PROPOSED BUSINESS/PRODUCT/SERVICE….. p.11 V. PLANNED FINANCING……………………………………………………………….…..p.16 VI. BIBLIOGRAPHY………………………………………………………………………..…p.17 VII. APPENDIX………………………………………………………………….………….…p.18 2 I. Executive Summary In 1991, the Indian economy experienced a rebirth after the liberalization policies of the new prime minister. Thirteen years later, India has become one of the most exciting economies in the world with a huge increase in foreign investment and consumers who are willing to “spend, spend, spend!” Due to massive outsourcing on the part of foreign companies especially from the United States, educated Indians are now presented with exciting career opportunities, excellent pay, and the confidence to spend more money. Time magazine reports that these new consumers command $10.5 billion in cash to burn. There couldn’t be a more opportune time for the Starbucks Coffee Company to open its shops in the exotic land of India. The following is a proposal to open two new locations of Starbucks in India: one in Mumbai, a highly populated cosmopolitan business city, and the other in the nation’s capital, New Delhi. These locations were strategically picked to ensure success...
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...Business Plan Of LE-CHATEAU IN INDIA Submitted to MOHAWK COLLEGE HAMILTON In partial fulfillment of the requirements for the award of Diploma in INTERNATIONAL BUSINESS MANAGEMENT Under the guidance of Professor. Alyce Lyne Amritpal Kaur 000309497 Amritpal Kaur 000313218 David Nmoye 000304076 Chukwuma Nwachukwu 000309201 Karanveer Singh Khaira 000318652 Department of International Business Management Mohawk College, Hamilton Table of Contents Executive Summary: 3 Corporate Profile: 4 Nature of Business 4 Product Offering 4 Organizational Chart 6 Human Resources Management 6 External Resources: 8 Company strength 8 Company weakness 8 Target Market & PESTE Analysis 9 Target Market Segmentation: 9 PESTE Analysis: 10 Opportunities 11 Threats: 11 Market Entry Method: 12 Market Strategy: 13 Global Supply Chain 16 Warehousing & Inventory: 17 Legal System 18 Company contracts 18 Free Trade Agreement 19 Risk Management: 21 Internal Risks 21 External Risks 22 SWOT Analysis 23 Summary: 24 Conclusion: 25 References: 26 Executive Summary: Le Château Inc. is one of Canada’s oldest specialty retailers and manufacturer of contemporary fashion apparel, accessories and footwear’s all at valued pricing...
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