International Marketing Plan

Morgan Downing

Sara Lee

Joanna Manoleras

Vince Speroni
Executive summary

In a world that is constantly on the go, those without 24/7 access to light are vulnerable to

falling behind. Not only this, but with light comes the opportunity to expand skills, intelligence,

and many other things. This is exactly what our solar-powered transportable lightbulb offers to

the people of Tanzania. Employing a positioning strategy based on price and simplicity allows

our target market to not only desire our product, but they can afford it as well. By entering the

market below market price, our company can establish a solid base of consumers who will help

advertise the product through word of mouth. In addition to this, we will be able to gain the trust

of our target market which will make for a smooth transition as we begin to raise prices to bring

profit out of the negative. The upward trend of GDP in the country shows signs of a growing

economy which will facilitate the sale of our low-price, high-value product.
Table of Contents

Current Marketing Situation

Current Product Situation

Company Situation

Market Situation

Consumer Situation

Macro-Environment Situation

SWOT

WOWparts

Original Defense

Objectives

Marketing Strategy with Action Programs

Identification of Possible Markets

Targeting Strategy

Marketing Research

Product Strategy

Positioning Strategy

Customer Service Strategy

Price Strategy

Distribution Strategy

Promotion Strategy

Projected Profit and Loss Statement

Controls

Conclusion

Appendix

References
Current Marketing Situation

Current Product Situation

With solar energy being the most affordable, accessible, and widespread than ever before,

the focus on a solar-powered lightbulb allows for continued growth as more and more people

will begin using solar-powered products. The solar lighting system market was valued at USD

4.35 billion in 2018 and is projected to grow to $13.48 billion by 2026. This industry is growing

at a CAGR of 15.29 from 2019-2026 (Solar Lighting System Market by offering). Markets for

solar energy are maturing rapidly due to solar electricity now being economically competitive

with traditional energy sources. According to Appendix A, the Solar Lighting Systems Market in

RoW (which includes South America, Africa, and the Middle East) has been and is projected to

grow at an increasing rate annually (2017 - 2024). WOWparts’ solar lightbulb is a standard-sized

light bulb that combines a lithium battery, photovoltaic panels, and multiple LED lights to create

an environmentally friendly, rechargeable light. It is designed with a sturdy, waterproof plastic

that can withstand the elements if needed, and boasts 3-5 hours of light after being charged. This

bulb can be used both inside the home and outdoors to provide bright light for a multitude of

tasks without requiring the use of electricity. Major drivers of the market are the increasing use

of renewable energy for lighting, decreasing cost of LEDs, and growing demand from

developing and emerging countries. These drivers help support our choice of introducing a

solar-powered light bulb into Tanzania as they are developing and have a major focus on solar

power.

Company Situation

The company that produces our product is WOWparts, a division of Neoteric Solution,

Inc. WOWparts was founded in 2006 with the goal of becoming the premier destination for
online electronic accessories. WOWparts is currently selling the TSV solar-powered Lightbulb

through Walmart and they have been selling on the Walmart Marketplace since 2016. They are a

private corporation, and one of their competitors is Original Defense.

The company is in the Computers and Electronics Manufacturing industry with 30

employees and an employment growth rate of 15.4% since Q4 of 2018. They are headquartered

in Fremont, CA and under the NAICS Code 3343; 33. Their current annual revenue is

$5,980,000 with a 0.01 variance of revenue growth. Since their founding in 2006, they have had

an annual revenue growth of $373,750 (Kona Equity - WOWparts). Their revenue growth

fluctuates yearly with decreases around the start of a new year. There was a huge growth

between 2020 Q4 with a revenue of $5.328 million and 2021 Q1 with a revenue of $5.98 million

and since then revenue growth seems to be stagnant. The current revenue per employee is

$199,333. See appendix B.

Currently, they do not offer international shipping from their website itself, but they do

sell their products in other countries through online shopping websites. Some of the countries

that currently sell their products are Haiti, Aruba, Nigeria, Togo, India, Luxembourg, and many

more. Major websites that supply WOWparts internationally are Desertcart.com and Ubuy.com.

Ubuy.com is offered in Mena, Africa, Asia, Europe, North America, Oceania, and South

America. Desertcart.com is offered in Saudi Arabia, United Arab Emirates, Oman, Kuwait, and

Bahrain. The ability of WOWparts to sell their product internationally through the internet will

be a great advantage to initiating the sale of our product in Tanzania.

Market Situation

Although Tanzania is one of the world’s poorest economies, there has been data in recent

years to suggest that their economy is trending upwards and business opportunities are
increasing. They have low rates of inflation, a promising tourist industry, and an increasing

growth rate. Relevant socio-economic data related to our product are electricity statistics,

starvation rates, and the percentage of the population that has access to technological forms of

media.

All of these factors play crucial roles in our ability to market and distribute our product.

Only 21.2% of the population uses electricity as their main source of lighting, and since the use

of solar energy is rare in the country, this implies that the majority of people use candles or

torches (Proportion of households with electricity as the main source of energy for lighting), so

there seems to be a great opportunity to break into the market with a truly useful solar lightbulb.

The basics of human nature suggest that people who are starving are not going to worry about

complimentary things such as better lighting. So, the fact that 25% of the population is starving

(Tanzania Hunger Statistics 2001-2022) is going to be a major concern for us.

These statistics provide us with a deeper insight into what most of our barriers to entry

are going to be. Mainly; lack of solar awareness, starvation, and difficulty reaching our target

market both physically and virtually. The majority of lightbulbs can only be bought in large

towns because the country possesses difficult terrain to navigate and there is a lack of

sophisticated distribution tactics. While Tanzania does present an opportunity to break into the

market with a product that is capable of solving the limited electricity problem within the

country, several hurdles need to be overcome to do so.

Consumer Situation

There are a lot of factors affecting consumer behavior in Tanzania. In both urban and

rural areas, citizens are concerned about their health, water supply, education, and the

infrastructure of the roads. This focus on satisfying basic physiological needs is directly reflected
in their lifestyles and purchasing behavior. In rural communities, 51% of citizens own a radio,

but only 26.3% of citizens have a television in the house. While 68.1% of rural citizens own

mobile phones, only 13.3% have internet access. In terms of their home, 29.6% of people in rural

Tanzania describe their personal living conditions as “fairly bad,” and 56.2% of the people in

these communities need to get their electricity from somewhere other than Tanzania Electric

Supply Limited or TANESCO. For 50.6% of rural consumers, this means using solar energy.

This shows a large need for a solar-powered product like the WOWparts light bulb, and based on

consumer thoughts on trade, they are open to a foreign supplier. Fifty-three percent of rural

citizens strongly believe Tanzania needs to open its borders to imports to increase development

through trade. Additionally, 66.4% of those people believe the government should allow foreign

corporations to sell low-cost goods in local retail stores (Tanzania Round 8 summary of results).

These factors all combine to create a target market for WOWparts that consists of

low-income males, aged 18-35, in rural Tanzania. In rural households, 91.6% of people reported

that the responsibility of decision-making falls on a male relative within the house. This provides

WOWparts with an opportunity to market a low-cost, energy-saving product to the head of the

house via radio ads in rural communities.

Macro-Environment Situation

Tanzania boasts high levels of tourism as natural parks account for almost 30% of land

which makes it a popular safari destination. There is an abundance of wildlife which is another

factor that encourages tourism in the area. Tanzanians take advantage of their vast country as

64% of the population lives in rural areas. The country itself is flush with natural resources

ranging from natural gas reserves, an assortment of precious gemstones, and a coastline spanning

roughly 884 mi (Tanzania: Country Data and statistic). This has been a major contributor to the
rising GDP of the country which has been on the rise for the past 10 years and shows no

indication of slowing down any time soon.

While this paints a picture of great opportunity for the country, there are other areas

where the nation falls behind. Compared with the developed countries of the world, Tanzania is

severely lacking in the human rights sector. For instance, aligning yourself with the LGBT

community is punishable by life imprisonment, school-age girls still struggle with equal access

to education, and people with disabilities such as albinism are either killed or suffer through

forced amputations (World Report 2020: Rights Trends in Tanzania). According to an economic

study that rates countries based on their macroeconomic, financial, and political variables to

determine a level of risk, Tanzania was given a C level or a high-risk rating (Tanzania, United

Republic of). The country has recognized this issue and is currently working on updating its

energy and transportation infrastructure to support and encourage a stronger economy.

When looking at the people as a society, they have a strong power distance culture. In

addition to this, they are aligned with a strong collectivist culture which can be seen through the

different tribes, languages, and cultures that coexist within the country. The country displays a

feminine culture in which there is an emphasis on working to live. Unfortunately, this is evident

based on the extremely high poverty rate within the country. This most likely is a contributing

factor to the low importance placed on indulgence within the country.

SWOT

WOWparts

Strengths Weaknesses

● WOWparts has a large market share ● A small number of employees currently

in their industry. work for the company.

 ● Per employees generated revenue is ● Do not currently sell internationally

greater than the industry average. through their direct website.

● Revenue growth is faster than the ● Because they are a private corporation,

industry average. shares are not offered to the public, and

● Lower cost of the lightbulb compared they are not listed on the stock

to competitors. exchange.

● Strong focus on customer relations ● With only being physically located on

and delivering top quality for their the west coast of The U.S., they are

customers. restricting the number of business

opportunities and awareness they have.

Opportunity Threats

● Expand to international shipping to ● With solar power being the

allow for an increase in sales and fastest-growing energy source,

awareness. WOWparts may struggle to keep up

● Increase brand awareness and image with the growth due to their small

through the use of social media and company size.

internet marketing to reach a greater ● Competing companies of WOWparts

audience. are more developed and have greater

● With solar power being the access to resources which could

fastest-growing energy source, influence the amount of customer flow

WOWparts can create additional and sales throughout the company.

products that use solar power which ● More companies may emerge into the
 could lead to increased sales. industry to capitalize on the growth of

solar energy.

Original Defense

Strengths Weaknesses

● Offers up to 6 hours of light, which is ● At $34.95 for one lightbulb, they are

more than some competitors. more expensive than competitors.

● The lightbulb is portable which means

it can be used outside of the

household.

● The company offers 24/7 customer

service.

Opportunities Threats

● The website has very little information ● More companies may emerge into the

so there is a lot of room for growth. industry to capitalize on the growth of

● The website only accepts US dollars, solar energy.

they could move to other currencies.

Objectives

Marketing Objectives

1. Increase product awareness and demand by 50% by December 31, 2024, through the use

of advertising, sales promotion, and digital advertising.

 2. Increase the number of employees in our company by 35% by December 31, 2024,

through intentional interviewing processes and positive word of mouth.

3. Decrease the sales cycle length by 25% by December 31, 2024, to help increase the

amount of reach our company and product receive.

Financial Objectives

1. Our company is aware that we will need to take out at least $40,000 in loans to begin

marketing our product. Due to the nature of the country and the lack of technology, we

will need to invest in traditional marketing types, such as billboards and magazine ads.

We expect to see an initial loss on the balance sheet of $20,044, mostly due to the low

starting sales price and heavy marketing investment of about $40,000. As our sales price

and overall awareness rise, we expect our profits to go up, with the breakeven point being

reached after the first year.

Marketing Strategy

Segmentation Strategy

For this marketing plan, our company will be targeting two individual markets; a primary

market and a secondary market. When choosing both the primary and secondary target market

we took into account many influencing factors such as age, lifestyle of local consumers, ability

to purchase, budget, consumer spending habits, and their buying process. For the primary target

market, we decided to focus on working-class, male individuals between the ages of 18-28, in

rural areas. According to data.worldbank.org, 64% of Tanzania's total population lives in rural

areas and individuals in these areas most likely have less access to electricity. In addition, we

decided to focus on males because 85% of males ages 15+ are employed, but children ages 16

and below cannot participate in more than three hours of labor a day. Individuals ages 18 and up
are allowed to work in more intense work situations and would be more likely to use the

solar-powered light bulb during evening work/traveling hours.

The secondary target market we decided to focus on is women, ages 25-34, who have at

least one kid and spend the majority of their time tending to the house. In Tanzania, the mean age

for childbearing is 28.6 (Kamer) and women have on average about 6.1 children. Roles are

strictly defined in Tanzania as either masculine or feminine, and women tend to keep the house,

watch the children, and other feminine roles. These women will be more likely to be doing

housework or tending to the family at all hours of the day and would benefit from the

solar-powered light bulb.

Targeting Strategy

Since we are targeting very specific markets, each being opposites of the other, we

thought it would be best to use a differentiated target strategy because it will allow us to tailor

the messages to each target market. For our primary target market, working-class, male

individuals between the ages 18-28, located in rural areas, we plan to focus on deploying content

and marketing material that focuses on the benefits of having access to light for more hours in

the day. We will implement the use of statistics and testimonials to show that individuals can be

more productive when exposed to greater amounts of light. We will also focus on the ease of

storage and simplicity of the product. If we can show that this product is portable, allows you to

be more productive, and is easy to use, it will in turn motivate individuals to make the purchase.

For our secondary market, women, ages 25-34, who have at least one kid and spend the

majority of their time tending to the house, we will use the differentiated target strategy and

emphasize safety. While women are doing work around the house, they may spend a lot of their

time outside cleaning, cooking, and or doing laundry. If it is dark out, it may prevent a woman
from going out at night and getting things done. We can then in turn promote that with the

lightbulb women will be able to be more aware of their surroundings while also being just as

productive.

To analyze whether our targeting strategies are successful and increasing sales, we will be

analyzing short-term and long-term revenues. In the beginning, the focus will be on short-term

revenue growth. In the ideal situation, if our targeting strategy is effective, our revenues will

increase, and units sold will increase, allowing us to continue selling this product in Tanzania.

We will analyze the revenue statistics every 2-3 months to ensure that what we are doing is

working and if it is not, we can go in and adjust our strategies.

Market Research Strategy

Our market research began with a look at the current state and forecasts of the power

industry. According to a 2022 Power Report, thermal power has historically been the dominant

source of energy in Tanzania. While they have low gas rates of USD0.099-0.102/kWh, these

prices are still too high for low-income residents (BMI Research: Tanzania Power Report). In

general, the country is at the bottom of the global energy pillar in both availability and equity

(Environmental sustainability: Country performance and product claims). With 50.4% of the

population living off an average of USD$1.90 a day, electricity is widely unattainable, creating a

need for alternative energy sources (Society - Tanzania). When looking at popular online retailers

like Impala, Zudua, and Sokoni, there are either no solar options for sale or only outdoor solar

lights, leaving consumers with few options within Tanzania.

Product Strategy

Creating a product strategy starts with identifying the vision and goals of the product

being sold. People in rural Tanzania have little access to enough electricity to suit their needs.
There are not enough alternatives being sold, and our company recognizes that and wants to

provide a solution. WOWparts will provide consumers with a solar lightbulb that will light their

homes for hours with one charge, for only $7.50. These factors cater directly to an underserved

market.

Positioning Strategy

When choosing a positioning strategy for our product we had to put ourselves in the

shoes of our target markets. Based on our extensive research on Tanzania, we decided to position

the product based on price and simplicity. For the price, our product will be priced lower than

competitors at $7.50 per lightbulb. This allows us to cater to our working-class consumers while

also staying competitive in the market. When it comes to simplicity, by this we mean how easy

our product is to transport and use. The solar lightbulb we are marketing is lightweight, has a

removable hanging strap, and can be transported easily. All the user will need to do is hang the

light bulb in the sun throughout the day, and when it comes time for use, they can unhook the

strap and maneuver the light bulb. With our targets constantly either working, traveling, or

tending to the house and children, we need to focus on the simplicity of the product, which will

be a major selling point in these markets. Refer to Appendix C for a visual.

Customer Service Strategy

Customer service is crucial to developing customer loyalty and trust in a company. On

our website, there will be a dedicated section for tools to assist the consumer. This section will

include how-to videos and guides for using the product, a list of FAQs, and a comment box for

receiving specific questions and consumer feedback. The company will prioritize open

communication by creating a customer service team dedicated to responding to questions,

comments, and concerns within 24 hours. In the future, a live, 24/7 chat box may be
implemented if necessary. For those without consistent internet access, there will be a detailed

user manual included with the product that lists FAQs, step-by-step instructions for usage, and a

phone number to call with any questions. Our goal is to create and nourish a customer-centric

culture within the company.

Price Strategy

Initially, our company will employ a penetration pricing strategy. We will set prices low

compared to competitors at $7.50 when entering the market to establish a customer base and

increase brand loyalty. The penetration strategy will temporarily provide negative profit as the

product will be purchased at $7.99 per unit. Once sales have increased by 30% after entering the

market, we will gradually begin to increase prices by 6.25% a week to employ a cost-plus

strategy and raise profit. This will allow for profit maximization as the price of the product will

be equivalent to the amount it takes to manufacture and distribute plus a markup for profit. After

4 weeks the final sales price will be brought to $9.99 which yields a 22% profit on all sales.

Distribution Strategy

The distribution strategies employed will be a mix of eCommerce and retail. Products

will be available online for the 8.44 million people in the country who have access to the internet

(The distribution network in Tanzania) and use online shopping regularly. There will be no cost

associated with the creation of the website which makes it a cheap and effective distribution

channel. For those who do not have access to the internet, or prefer to purchase products in

person, there will also be a retail option available. Products will be distributed to local retail

stores in Tanzania at places such as the Kenyan-based supermarket Nakumatt, Kifanya Market

Center, Mitaa Ya Sido, and many others. Once the brand has established itself within the country,

it can begin to move into the smaller locally run markets that are extremely popular in Tanzania.
Promotion Strategies

The promotional strategies the company will be using include advertising, sales

promotion, and digital marketing. Print advertising is currently the leading advertising method in

the country and therefore we will be using predominantly print to remain consistent with other

businesses; however, digital advertising is expected to increase in the country within the next few

years. (Advertising - Tanzania) By entering the market with both print and digital advertising, we

can cover each category. Working with Tanzania-based advertising agency Alliance Media, we

will be able to cover print-based advertising. They offer many different billboard options

including regular, digital, and giant outdoor advertising as well, each ranging in price depending

on size and location. We plan to purchase only one giant outdoor billboard as they are very

expensive but also very effective. For the first 6 months, this billboard will cost $8,406 at $1,401

per month. In addition to this, we will purchase 6 regular-sized billboards. Two billboards each

will be placed in the largest city in the country, Dar es Salaam, the second largest city Mwanza,

and the capital city of Dodoma. Each billboard costs roughly $467 per month and will be posted

for the first 6 months once the product is launched. The combined total for all 6 billboards for 6

months comes to $16,812. (Products). For other print advertising, we will take out ads in local

newspapers Mwananchi, The Citizen, and Daily news, through the use of Tanzanian company

Advertising Dar (Tanzania - Country Commercial Guide). Once a week for the first 6 months,

our company will post a full-page color advertisement in the magazines. The strategy will be

re-evaluated after this point. Each advertisement will cost $175, bringing the total cost for these

advertisements to $12,600 (Pricing).

Projected Profit and Loss Statement

 In regards to how our finances intertwine with our marketing plan, we have developed a

long-term strategy that does not see significant profits until well after our first six months. Due to

the difficulty of entering the market and spreading awareness about our brand, we are expecting

to see financial losses during this period. We plan to ask for a $40,000 loan to satisfy our initial

marketing plan.

An in-depth cost breakout of marketing specifics can be seen in the figure above. Given that our

company wants to build a good brand image, we are going to launch our initial sale price at

$7.50, with progressive increases throughout the first price until we reach a consistent sales price

of $9.99. We expect our week one sales to be 50 units, with a 6% growth week-by-week. Under

these circumstances, assuming our growth continues at that solid 6% rate, we will be selling just

over 400 units per week. After the first six months, we expect our total unit costs to be $61,188,

and our total revenue to be $78,962. After calculating all the figures for the first six months

related to unit costs and advertising (as seen above in the figure) we are expecting an initial loss

of ($20,044). Given the lack of technology within the country, we believe that it is most

cost-efficient to purchase advertisements on billboards and in magazines. While a loss is not

ideal, it is an investment that our company has deemed necessary due to the initial marketing

obstacles that take place in Tanzania. We are confident that we will break even after the first full

year of operations. Once our product gains more awareness and begins to spread through word of
mouth, we will be able to allocate fewer resources to marketing and find ways to better our

business operations which will have a great impact on the profitability of our organization.

Controls

The controls our company will be using to motor progress and ensure we are meeting our

goals include, but are not limited to target market sales, budgeting and analyzing spending, and

customer feedback. Because we will be entering into a new market, we do not have a baseline to

go off of for current solar-powered light bulb sales in Tanzania. To ensure we are making

forward progress, we will analyze our target market sales. Not only will this guide us in the

numerical value but also will provide us insight into whether our marketing strategies are

successful. If we are creating marketing strategies specific to our primary target market, we

should expect them to be one of the higher consumers of this product overall. If we find that our

techniques are not evoking a response from these target markets we can either shift our

marketing strategies or even change our target market. Maybe we will find out that our product is

favored by a different demographic, and with this newfound information, we can move our

efforts to a more profitable path.

It is very important to focus on budgeting when implementing a marketing plan and even

more so in our situation. Since we are introducing a new product into the Tanzania market, we

have to take the extra steps in finding out which allocations of our budget will work best. If we

can monitor our spending and stick to what we have laid out initially, our company should be

able to maximize revenue while minimizing our costs, especially unforeseen costs.

Lastly, we will focus on analyzing customer feedback both directly and indirectly.

Directly we can analyze our progress through customer reviews and surveys. Customers will

have the option to leave a review or individually reach out to our company with their thoughts.
Indirectly we can analyze customer feedback through sales. This correlates to the previous

control strategy, but with sales, we can analyze trends. We can make educated inferences that if

sales are low, our customers either are not interested in purchasing the product and/or they are

not aware that this product is for sale. In both situations, customers are providing our company

with feedback that will help us reach our short and long-term goals.

Conclusion

Overall, we are confident that WOWparts’ solar powered light bulb is a desirable product

that meets the underserved needs of many consumers in rural Tanzania. While the start may not

be profitable, we expect to find success by the end of our first year, and look forward to building

a trustworthy brand that could possibly expand to other Sub-Saharan African countries many

years from now. This project provided our team with the chance to explore the details of a region

many American people are unfamiliar with, and challenged us to grow as researchers and as

marketers. If we were to do this project again, we think it would be important to put more

resources into researching the details of sourcing products and learning about companies. As

marketing students, we were already very familiar with the idea of segmenting, positioning, and

purchasing ads. What we did not know much about was researching unfamiliar products and

small companies with less public information.

 Appendix

Appendix A

Appendix B

Appendix C
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https://www.bbb.org/us/ca/fremont/profile/computer-parts/wowpartscom-1116-312881/deta

ils.