A company today has the opportunity to compete in a global market. There are many factors to consider when a company decides to market its product in another country. It must research the country targeted for sales to determine if there is a demand for the product. It must decide on the modifications needed in the product to match the new market, and it must develop a plan to market and distribute the product in this new business environment. See if you can crack the international market for bicycles!
Your consulting firm has received the letter above from Pedal Power to engage your team in determining if and how their company should sell its bicycles abroad. Your team of experts must use its research and critical thinking skills to evaluate whether Pedal Power should market their bicycles in any one of the countries named in the letter. The expert team will create a plan specifying how Pedal Power should modify and market their bicycles in a presentation to the Board of Directors of Pedal Power.
Assign four experts for each for the following countries: China, South Africa, Mexico, Brazil, Israel, Mali, Saudi Arabia, Germany, Russia or Japan. Classes may elect to do only level one of the export plan or do both levels depending on the time you are willing to spend and the sophistication level of the students.
Each group will find as much information as it can on the listed topics. Not all the information will be found on each country. In the process of research, a team may want to include other factors that are not specified, but are important enough to affect the outcome of the business plan.
Step 1: Country Research
In order to decide what bike would be best to sell in your country and how to market it, you must find out the following factors about the country assigned to you and fill out the following Country Background Market Worksheet:
Step 2: Modifying the product
Once you have researched the target export country, you need to narrow your focus so you can select your particular "Market Niche" within the country.
Developing an Operations Plan
Step 3 - Establish a Sales Plan for 3 years:
Step 4 - Develop a Marketing Plan
With your "Market Niche" in mind create a promotional brochure or website. Connect the 'Sale's pitch' of the brochure or website to the needs of your target buyers.
Step 5 - Select a Distribution Plan
Select one of the following distribution models and write a rational for your choice based on country research and product marketing needs.
Each team presents its finding about the target country using posters, charts, and technology. The team demonstrates the relationship between this research and its product selection. Then the team uses this information to argue for its Marketing and Distribution. Students will listen to all the presentations and fill in the two rubric charts(Operations Rubric, Country Rubric). After all the presentations are completed discuss the merits and drawbacks of each plan.
This lesson is designed on two levels. If your time is limited and your goal is to have a practical mission for students to learn about countries addressed in the tenth grade standards, learn research skills, and use critical thinking skills by matching a product to a country; do level one only. Classes with a bit more time that want to incorporate more economic and business objectives may also choose to go on to the second level.
Before beginning the unit, students should be familiar with the following economic terms for level 2.
Glossary of Economic Terms
Balance of Payments --- an accounting of trade/financial records, which takes into account the money a nation owes or is owed at the conclusion of a set time period.
Balance of Trade -- an accounting of the differences between a nation's imports and exports.
Comparative Advantage -- the ability of a nation or company to produce a certain good or service cheaper than another.
Foreign Exchange Rate -- the rate at which one nation's money can be exchanged for another's.
Free Trade -- the international trade policy, where trade among nations is not restricted by protective tariff or other governmental restrictions.
Import Quota -- the limit of a foreign-produced good that may be imported into another country.
Protective Tariff -- the tax or custom duty placed on an import to restrict their sale to protect a nation's domestic industry.
Revenue Tariff -- the tax or custom duty place on imports to raise money.
Trade Barrier -- a limitation place by one nation against another to restrain the exchange of goods.
The class will develop a rubric based on the following criteria:
Last revised 3/31/06