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INTERNATIONAL MARKETING

PRIMERA ENTREGA
TRABAJO ESCRITO

JUAN CARLOS LONDOO

CATALINA FRANCO
MARA CAMILA LEAL
NATALIA GAVRIA
NICOLAS POTES

OCTUBRE 6 DE 2015

PRIMERA ENTREGA -TRABAJO ESCRITO


Introduction
Nowadays companies have bigger challenges to confront, is no enough to be successful in your
country or region, companies want to push themselves forward and become global companies.
But internationalizing a company is not as easy as it seems, first of all it requires a long process
and marketing research, because what may works on the country of origin may not work in other
countries.
With this project we pretend to employ the knowledge acquired in class and compare it to the
process that one real company, Laboratorio Recamier Ltda, located in Colombia, have been
applying. After that, we want to find a new market for the company to go to, doing the respective
process and investigation.
Finally, we pretend to show that internationalizing can be viable for every type of company, but
they must choose cautiously the market for the specific product they want to offer.

Justification
This project let us, students, to apply the theories and information learnt in class. Even more, is a
source of experience, because it allows us to go inside a company and verify that knowledge. Is
also and opportunity to prove how far can we make it into finding new markets and prove our
capacity in marketing.
Is a new point of view, as this time we will be the ones in charge of the product and not the final
costumer, the experience of changing roles gives new ideas and help to develop strategies;
besides as costumers it gives a deeper sight in the process of finding foreign products on our
national markets.
For the company is an advantage, they will get the help of young minds that could find solutions
on an easy way since they are fresh on the job. Being on the sight of outsiders that pretend to

follow the process, they can get suggestions or the identification of a few problems that they
were blind to. Finally they will get the study of a new market, which, if they want, can explore in
the near future to expend their brand.
Objectives
General objectives:
Apply the information lean in class.
Comprehend the strategies and theories suggested in class when internationalizing a product.
Gather knowledge that can be use in our professional lives in the future.
Specific objectives:
Identify which way of internationalizing suit Recaimer ltda the best.
Make a success plan of internationalizing the product.
Identify which approaches can be the key for the company.
Find key points that help to identify the characteristics of the country and markets that we
should go to.
Present a work that can be useful for the company.
Identify the sceneries that can be and advantage and disadvantage.

Theoretical framework
Market research: The process of assessing the viability of a new product or service through
techniques such as surveys, product testing and focus groups.
Markets: A medium that allows buyers and sellers of a specific good or service to interact in
order to facilitate an exchange.
Culture: The behaviors and beliefs characteristic of a particular social, ethnic, or age group.
Is important in marketing because it can affect the perception of a product depending of
their culture and the marketing used.
Internationalize: The designing of a product in such a way that it will meet the needs of users
in many countries or can be easily adapted to do so.

Databases: A collection of information that is organized so that it can easily be accessed,


managed, and updated.
Uppsala model: the Scandinavian stages models of entry suggest a sequential pattern of entry
into successive foreign markets, coupled with a progressive deepening of commitment to

each market. It has 4 stages:


Stage 1: no regular export activities (sporadic export).
Stage 2: Export via independent representatives (export modes).
Stage 3: Establishment of a foreign sales subsidiary.
Stage 4: Foreign production/manufacturing units.
Dunnings eclectic approach: states that the propensity of a firm to engage itself in
international production increases if the following three conditions are being satisfied: 1)

ownership advantages, 2) locational advantages, and 3) internationalization advantages.


Transaction cost approach: Regards the transaction as the basic unit of analysis and holds
that understanding of transaction cost economizing is central to the study of organizations
through assessing how their governance structures serve to economize on these transaction

costs.
Born global: a business organization that, from inception, seeks to derive significant
competitive advantage from the use of resources and the sale of outputs in multiple

countries.
The network model: The relationships of a firm in a domestic network can be used as
bridges to other networks in other countries.

Organizational context
Recamier started their activities since 1947, since them they have been offering beauty products to
the Colombian population. For achieving their goals, Recamier uses all they work force and
technological resources on creating and imagining new products of high quality for men, women
and kids.
Because their main products are for beauty and personal care, Recamier have implement products
that are alluring to senses and bring new experiences to their users, using textures, fragrances,
colors, etc.

Recamier, understands that improving as a company is important to continue on the market, because
of this they begun to export their products to more than 16 countries all over the world.
The beauty and personal care market is always changing and new technologies come out every day,
Recamier, put all their effort in being updated in these technologies trying to offer a more efficient
service, making their product more secure and higher quality, all this while trying to preserve the
nature and protect and reduce the impact cause by them on the environment.

1. Evaluar bajo la luz de las teoras de internacionalizacin de empresas, como ha sido el


proceso de internacionalizacin de la empresa seleccionada.
The strategy that the company has used to internationalize their products is, first they went to
countries and in U.S in the states in which Spanish is spoken; and after that strategy they look put
for a direct distribution on the countries that represent the widest volume of the market or with
exclusive strategic allies.
On the Middle East the use an intermediary, who is in charge of making the contacts, being a source
of information, and manage the contacts on the Middle East. Because this intermediary is the one
managing the people, he or she gets a commission or developing and managing the contacts.
The strategy used by the company resembles the Uppsala model, because they go step by step,
trying to find an affordable and effective way of entering the market.
2. Investigar cuales fueron los factores que llevaron a la empresa seleccionada a
internacionalizarse.
One of the most important factors that contribute for the internationalizing process of the company
was the creation of brand value, they wanted their brand to be more global and offer a better quality.
They wanted to become global and develop a more competitive product, not only nationally but also
internationally. If the brand goes to other countries it gives the brand move value.

At the beginning becoming global to give more value to the brand was the only goal, but nowadays
the also want to have a bigger market, that way they can bring the product to more and more
continents making their brand more recognizable internationally.
3. Anlisis de la industria en que se encuentra esta empresa.
The industry in which the company is located is beauty and personal care, more of their products are
directed to personal care being shampoo, deodorants, sub block and tanning products, they have
other lines such a professional beauty products for saloons.
This sector is very dynamic because beauty standards vary a lot depending on the country and
continent; being in this industry may be difficult because they must find products that are average so
they do not need to modify them a lot to bring them into the new market.
4. Anlisis a profundidad del Pas destino seleccionado (Ambiente de negocios, economa,
industria, tecnologa, medios y comunicaciones).
Business environment:
In Canada we have a very good business environment and lots of opportunity, business environment
is enhanced by its appealing tax regime, whilst labor market flexibility and high female employment
rates also add to its attractions. Canada has some high profile strengths, weakness, and opportunities
and threats.
Strengths: solid regulatory environment safeguards businesses and a high ranking for tax
environment.
Weaknesses: Public debt levels are quite elevated and a low R&D intensity.
Opportunities; USA economy benefits Canada economy prospects and government infrastructure
plans can drive a growth in construction.

Threats: slowdown in global commodity demand could hurt resources sector and change to foreign
workers quotas could make labor market more rigid

In addition, we can mention that Canada ranked in the top 20 at 16th out of 189 countries in the
World Banks Ease of Doing, and is one of the easiest countries for starting a business with
governments support and regulation, Canada is number 14th in Global Competitiveness Index. They
have an great advantage globally in Health and primary education and Labor market efficiency and
is the 10th country with less corruption being this a boom for global investment.

Canada has big advances access to the information and communications technology (ICT) sphere in
Canada is well developed, supported by a highly skilled population that is ready to embrace new
technology. Mobile telephony has advanced considerably, with 4G services readily on offer to
consumers in a competitive environment.

Economy:
Canada has a very solid Economy being one of the richest countries in the world having a
concentration in pattern of production, and high living standards. Since World War II, the
impressive growth of the manufacturing, mining, and service sectors has transformed
the nation from a largely rural economy into one primarily industrial and urban, Their
principal Trading Partner its the US which consumes three-fourths of Canadian
merchandise exports each year, its abundant natural resources, highly skilled labor
force, and modern capital plant give a solid economy to the country and improves
every year., Canada enjoyed solid economic growth.

Despite the recent drop in oil prices Canada has achieved a marginal growth, petroleum
sector is rapidly expanding, because Alberta's oil sands significantly boosted Canada's

proven oil reserves. Canada now ranks third in the world in proved oil reserves behind
Saudi Arabia and Venezuela.
Canadas main exportations are motor vehicles and parts, industrial machinery,
aircraft, telecommunications equipment; chemicals, plastics, fertilizers; wood pulp,
timber, crude petroleum, natural gas, electricity, aluminum
Their Canadian dollar is one of the most solid exchange having 1.099 (2014 est.) for us
dollar.
GDP (purchasing power parity):$1.592 trillion (2014 est.)
GDP - real growth rate: 2.5% (2014 est.)
GDP - per capita (PPP): $44,800 (2014 est.)
Inflation Rate: 1.9% (2014 est.)
Industry:
Canadas main industries are diversificated in transportation equipment, chemicals, processed
and unprocessed minerals, food products, wood and paper products, fish products,
petroleum, natural gas with an industrial production growth rate of 2%, and with a
19.21 labor force divided in

agriculture: 2%, manufacturing: 13%, construction: 6%

services: 76% other: 3% (2006 est.).


Technology and communications:
The country has an advance technology industry having a reputation of creating new
patents of new and improved technology. Canada is recognized as an technological leader in
telecomunications,ingeneering, informatics , spaceships engineers, urban transportation, medical
disposals and advanced softwares , and their energetic systems is hydroelectric and nuclear being a
more clean source.
In communication 29.5 Million of the habitants have mobile cellphones with excellent
service provided by modern technology and counts with 2 public TV broadcasting
networks each with a large number of network affiliates allowing TV , and internet an

easy marketing way because the 92% of the population (32.4 Millions) have access to
the internet by the different gadgets.

5. Anlisis del consumidor del pas seleccionado (Tendencias, Ingresos, Poblacin)


Canadas Consumers:
Population: Canadas population is about 35,099,836 , and has very diversified ethnic groups
Canadian 32.2%, English 19.8%, French 15.5%, Scottish 14.4%, Irish 13.8%, German
9.8%, Italian 4.5%, Chinese 4.5%, North American Indian 4.2%, other 50.9%, being
English and French the more speaked languages.
Peoples income: Familiar average income per capita is 29 365 USD year, no less there is a
big difference between the reaches and the poorest the 20% more richer wins 5 times more than the
average, but 75% of the economic active population is actually working having low unemployed
rates. And the minimum annual wage $ 21,850.00 Canadians dollar being 24.013 US
dollars.
Tendencys: Canadians consumers are increasingly looking for healthy and locally made products
making the precedence of the product a fact for buying and a hard tendency for buying local to
improve local economy and industries., We see the impact of technology increasing every year, and
a tendency for looking information before buying any product on the internet. So their consumption
is very informed making them a hard costumer. according to a new study from the Business
Development Bank of Canada that identifies five trends shaping consumer behavior:
The buy-local movement: Consumers are shopping close to home, looking for locally made goods
and aware that buying Canadian-made may be a better ethical and environmental choice.
Rising health awareness: The aging population is becoming more aware of healthy choices in food,
cosmetics and ergonomically designed products. Half of Canadians consider the health impact of a
product when making purchasing decisions and one-third are willing to pay a premium for healthy
products.
Frugality: Canadian incomes are stagnant and debt is high, meaning consumers are cautious about
spending. As the baby boomers retire, an increasing portion of the population will be living on fixed
incomes.

The desire for customized goods: Consumers are looking to get exactly what they want and new
technology makes it possible for them to buy it.
The impact of the Internet: An increasing amount of research about products is done online, even
when consumers dont buy online. At the same time, online shopping is growing and online reviews
are critical.
6. Analizar como el entorno sociocultural podra afectar el xito o el fracaso del producto
escogido en el mercado seleccionado.
As we say in the consumers tendency, Canadians try to buy local products ti improve their own
economy , and the price no being a very important fact thanks to their economic capacity our
product has to be differenced by quality so that people buy it. An important fact is that this country
has variety from temperate in south to subarctic and arctic in north and the mayor part
of the land has the four seasons son the product is being bought in 2 of the seasons
autumn and summer. And in the part of the pacific coasts that in general have a warm
and sunny weather. Another important point is that Canadians importers dont like to
make business with inexperience companies but our chose company has a big
experience but not to that country.
7. Analizar como el entorno poltico y econmico podra afectar el xito o el fracaso del
producto escogido en el mercado seleccionado.
Economically talking there is a big risk because of the competition which the three main companies
has 60.8% of the market, and one of them is local so people will trend to buy their product. There is
a fact that labor force its not cheap in these countries and like the idea is export no making a
production line there, the costs of intermediaries to get to the client are spensive. Is necessary to
participate in a commercial fair or exposition to get to connect or make business associates to have a
good development in the country. Politically, Canada is a country that wants to help countries in
develops way so politically theres no risk and we count with a TLC with the country that makes it a
good target.
8. Anlisis de competidores globales ms importantes en la industria.

The most important competitors in this industry for Recamier, at an international level are Unilever,
Johnson & Johnson, Schwarzkopf and LOreal. All of them have been a long time on the industry
and understand the cultural differences that exist.
Unilever and Jonson & Jonson, focus more on the body care, with really strong lines such as
Johnsons, clean and clear, Listerine, band aid, and Lubriderm for Johnson & Johnson; and ponds,
dove, axe and rexona for Unilever. Schwarzkopf and LOreal focus more on hair care products,
leaving a space for sun care products, that Recamier can take an advantage of.
9. Definir las caractersticas generales del producto
a. Descripcin
Suntan-TANGA. Protection for low resistant skin to the sun. Light texture and quick
absorption with a system of UVA and UVB filters that protects the skin from the damage
caused by the sun. Enriched with betaglucan, Vitamin E and Bisabolol, Water resistant.
Comes in several presentations, gel, spray, oil, lotion, cream.
b. Partida arancelaria
The tariff heading is 3304990000
c. Empaque (Primario, Secundario y Terciario).
The primary packaging is the bottle which the liquid or gel comes in; this product does not
have a secondary packaging in the case of our company, Recamier, because the product only
comes with the primary packaging it doesnt have an additional box the packaging. And the
tertiary packaging is a box in which the product is transported.
d. Exigencias sanitarias (si son del caso)
The sanitary requirements of Recamier are given by COLIPA (Cosmetics Europe the
personal care association),since they are certified by this association. But also the sanitary
requirements are given by each market or each country to which the company will export
the product.
10. Explicar cules fueron los criterios para seleccionar tres posibles mercados y de estos tres
como se lleg al mercado escogido

Market Selection Matrix


Country 1
CHILE

ECONOMIC FACTORS

Country 2
PTS

CANADA

Country 3
PTS

PORTUGAL

PTS

INFLATION %
Currency and EXCHANGE RATE
(USD)
GDP PPP in USD
GDP Real Growth Rate
TOTAL
POPULATION
POPULATION SIZE
TOTAL
TRADE BARRIERS
Average TARIFF FOR Colombia
TRADE AGREEMENTS WITH
COLOMBIA
TOTAL
COLOMBIAN EXPORTS US$
PRODUCT EXPORTS PER
YEAR (2013)
TOTAL
COMPETITORS
MARKET SHARE OF THE
THREE MAIN COMPETITORS
TOTAL
MARKET
TOTAL IMPORTS OF THE
PRODUCT (2013)
% INCREASE IN IMPORTS 12 vs
13
TOTAL
CUMULATIVE TOTAL
COUNTRY RANKING

4.4%

1.9 %

-0.2 %

568

1.099

0.7489

23,000
1.8%

1
2
5

44,800
2.5%

3
3
10

27,000
0.9%

2
1
9

35,099,836

10,825,309

17,508,260

4
11,964

3
2000

3
46.4%

3
0

2
60.8%

1
1

66.8%

3
3

165,727

1,235,424

231,711

12.31%

9.7%

10.42%

6
21

PTS

3
23
PT
S

3
20

11. Definir cul es el precio del producto en Colombia y cul sera el precio en el mercado al
cual se va a exportar.
The Colombian price for the suncare is 25,000 pesos. But they reduce the cost of the product to
export it, meaning that the process of operation is the same as the cost plus a small margen. It

PTS

depends of the tax, the commercial structure of each country, the cost of the transportation and
depending of the competition. In Canada the price for this product is 13 Canadian Dollars. The
conversation of pesos to Canadian dollars the difference is very small.

12. Definir qu tipo de transporte se va a usar y justificar el por qu la eleccin de ese tipo de
transporte.
The type of transportation that will be used is shipping, because this type of products has a high
volume of weight so its better to transport it by this method, in terms of costs. It is very important to
plan well the transport to cover the market on a regular basis, and that way it will arrive on time.
Conclusions
After finishing this research we concluded that it is very important doing a market research before
making plans of internationalization, based on that, Canada is a good market for Recamier to export
Suncare products. The markets dynamic is excellent, and it does not have many competitors, but the
ones that the company already knows.
Bibliography
http://www.investopedia.com/terms/m/market-research.asp
http://www.recamier.com/proteccion-solar/tanga-bronceadores
https://www.cosmeticseurope.eu/publications-cosmetics-europe-association/guidelines.html
https://www.cia.gov/library/publications/the-world-factbook/geos/ca.html
http://www.cbc.ca/news/business/5-canadian-consumer-trends-to-shape-the-future-of-retail1.2129072

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