Business Management Expanding Product Overseas Essay

Business Management Expanding Product Overseas - Essay Example The gradual elimination of barriers to the flow of goods, services, and investment, coupled with strong protection of intellectual property rights. Also, "The United States is the largest source of FDI in Mexico, accounting for 65% of total FDI in 2003" (Villarreal, 2005). In spite of the fact that Mexico's GDP in 2004 was $677 billion, the country has a stable political situation and high rates of economic growth. Economic trends and analysis (Villarreal, 2005) show that Mexico proposes great opportunities for the company and can be valued as potential market for this type of equipment. Marketing mix (4 Ps) will be based on the following objectives for the company in Mexico: to initiate co-operative marketing with medical centers and hospitals in the big cities around the country. Product: It combines an insulin pump with a glucose monitor and facilitates data interchange between the two. The use of the integrated system is expected to make it more convenient for people to manage their diabetes. The device does not require a battery, With no wires across the skin, there is no deterioration of the skin surface or other areas inside the skin and no danger of track infection. Place: The products will be delivered by trucks because this is the most economizing way for the company to deliver the goods. There are no transit points needed. The shipping will be 4 times a month. The products will be packed in the USA including an instruction on the Spanish language. Outside resources and customs brokers will be unnecessary as the company covers all the areas of delivery. Th e company will be one of the largest medical equipment companies in Mexico, and its approach of mainly independent distributors would continue to serve it well against other large rivals. Promotion: Advertising messages will be designed to communicate with potential consumers in different regions. Also, it will involve both on-line and offline advertising. The core of promotion will be personal selling and direct marketing. Applied to the device for diabetics, direct marketing refers to consumers being able to order products from their home. Direct marketing will involve a number of different methods which can be used in order to reach, communicate, interest and encourage consumers to buy (Fill, 1999). The main difference from competitors' products is that 'device' is easy to use; it has a smaller size and lower cost while keeping all the basic characteristics of similar products. The basic advantage of this product is absence of seasonality in purchases, which allows the company to calculate revenue growth and the degree of market penetration. In the USA, the company uses similar strategies to reach the target market and increase sales. In the USA, direct mail involves the posting of promotional literature, designed to sell a product or service direct to a potential customer's home and hospitals. In Mexico, direct mail (mainly to hospitals and medical centers) will help the company to reach a widely dispersed target market. A Pricing