In this report, I made some research to determine whether to market air conditions in Canada or India. I did all the research online. The reason why I chose these two countries is both of them are developing countries. In this case, people can market this industry easier and get more profits. In this report, I find that Canada is the better country to improve the market overseas according to the data and information I collected. The objective of this research is finding which country is the best one that can conduct air-conditioning industry.
The brand which I chose to market to the foreign countries is Aux. This brand is famous for its air-conditions. Aux was created since 1986. It is a big industry because it involves electricity, medicine, estate and financial investment, etc.
Nowadays, Aux is widely spread in many continents, including European. The reason why I chose this brand is its creative abilities. Aux makes management innovation, technology innovation and product innovation as key points to ensure the healthy growth of enterprises.
Aux managers are focusing on creating the new technologies. They want to fit locals’ tastes to make their products more satisfying. In this report, I will use two business methods to evaluate the results. The one is foreign market entry modes and PEST analysis. Market entry modes are the methods that always utilized by companies because they want to enter the international market, involving exporting, licensing, joint venture, foreign direct investment and the internet. If companies want to check the four sectors of international market, such as politics, economics, PEST analysis is often used.
Aux is a brand which is created by China and the headquarter of this company is also built in China.
This company struggle many years in China and eventually expand its market overseas. Aux set up many manufactures is countries that have cheap manufactural fees. In addition, Aux also employee people who learn advanced technologies from all over the countries. They want to know people’s tastes by asking people from all over the country. To find useful information, I searched online and found some helpful data in proper websites. All of the data about economics was downloaded from the internet and I think these data will provide enough and convincing information about different markets. Therefore, the data I researched can determine better market for Aux air conditions. What is more, interviews from others is necessary in my research because their points of views can better reflect their true opinions. From their words, I can find some new ideas when recognizing which country can be the most suitable one. This can greatly help me to decide the best result.
In recent years, Canada stated a lot of strict principles about import products, including taxes. The improvement of the economy in Canada is positive. The consumption level is improving day by day. Also, as we now, in Canada, people live there with great happiness. The technologies are developing quickly in Canada. So far, China is one of the most significant members in the world because China has grown at a rapid speed. China products benefit people from all over the world. When people traveling to foreign countries, products made in China can be widely seen. The Canadian economic system pushes local residents to happy life. Canada is one of the most advanced trade countries in the world. The making department and science department is on the top over the whole world. The most outstanding industry is service department. Canada depends on exports from other countries, especially China and the United States. The transportation systems in Canada is very advanced.
India is a country that has outstanding characteristics. The population is only after China. It is the second biggest country in the world. The labor fee is cheaper in India than in Canada. However, India is not a wealthy country. A lot of people are facing the possibility of losing their jobs. Also, the technologies are advanced. In India, the market for health products has great potential for growth. According to Euromonitor International data, most women in India still use washable cotton cloth every month, but the sanitary napkin market is expected to double from 2018 to 2023. Proctor Gamble has taken a leading position in the Indian health products market by virtue of the Whisper brand. The company made millions of Indian women switch to disposable sanitary napkins through television advertisements and school publicity. According to data from the intermediary company Motilal Oswal, India is one of P&G’s fastest-growing markets, with about 20% of Indian women using disposable sanitary napkins, compared with 11% eight years ago. In recent years, more and more disposable diapers and sanitary napkins are directly contacted by scavengers, which brings health risks.
Proctor Gamble is one of the biggest companies in the world. In recent years, India is becoming a big market. The consuming level is developing also. The development of economy in India provides Proctor Gamble a stable investment environment. India is stable comparing to the past years. The consumption ability in India is high. In these days, India is becoming to the 11th biggest consuming market. Some people predict that India will become to the 5th biggest consuming market in 2030. In the recent 20 years, India is focusing on advanced techniques. This provides Proctor Gamble a stable investment environment. However, when Proctor Gamble expanded its market overseas, this company chose to set up the company in Canada because Canada is a stable country no matter in the past or now. The wind farm in Tyler Bluff, Texas, and the on-site biomass cogeneration facility in Albany, Georgia, have made the most important contribution to P&G’s production with renewable energy.
Tyler Bluff wind farm can offset 100% of the electricity demand of p&g’s fabric care and home care plants in the United States and Canada (producing brands such as tide, Downy, Cascade and Mr. Clean). However, the biomass cogeneration facility can meet 100% steam requirements in the production of Bounty and Charmin products in Albany Plant. In addition to these large-scale projects, the company also focuses on certification of wind energy, solar energy, geothermal energy, hydro energy and renewable energy, and actively promotes emission reduction targets in various businesses through various renewable energy projects. The picture reflects the increase of economy in India from 2004 to 2014.
Media is one of the biggest competitors of Aux because this brand is also famous for its air conditions. However, this brand focus less on innovation and the quality of its products. Successful marketing strategies always have three features. Firstly, successful marketing models are expected to provide unique business value. Secondly, marketing strategies are not easy to be mimic. Thirdly, companies have to be honest from every aspects. Unsuccessful strategies are always lack of its own features. They are always in high risks.
The most common feature of both Canada and India is that they are relying on the exports of other countries. The common disadvantage of both two countries has to be pushed by other countries. According to the weather conditions in local, I can determine that Canada need air conditions more than Japan does. Also, I made this decision both by researching and listening others’ suggestions. My friend is a university student who studies in the United States for four years. She told me that Canadians like turning the heat on from the early winter. Also, they like using air conditioning in all the summer. People who live in Canada has great demand of heat and cool air conditions. Although the summer in India is very hot, the economy level is not as high as Canada. In addition, the consumption level is not as high as Canada.
The PEST analysis for both Canada and India can evaluate the whole market of countries. However, there are some limitations when I was finding the data. In this case, there are some information I might not find by searching on the internet. What can I do is I can combine the information I prepared and some suggestions to make the decision. Some similar strategies are both utilized in Aux company and its competitors. They always focus on expanding their markets to foreign countries. For example, Media is similar with Aux. Both of them are concentrating on finding methods to make their products fit local people’s tastes. Once people are in favor of the products, people are willing to buy their products. This can help companies to earn more money.
According to my research, I think Canada is the most proper place to sell the air conditioning. As I mentioned below, Canada depends on the United States a lot. Times Square is the place where advanced brands gathered. Aux showed its brand in Times Square. Aux represents other Chinese brands. It reflects the ability of Aux. In this case, the trade cooperation between China and the United States is supported by local governments. What is more, air conditioning are necessary for every family in Canada. It is a great opportunity to open the market for Aux. If Aux wants to behave well in America, the stuff of Aux need to be creative. In this case, they can improve the quality of their products and also enhance the appearance of their products.