In this marketing plan, you will hear about TJC Alternatives plans to sell ethanol to India, and how they expect to do this over the course of many years. They plan to start by conferring with companies in India, and hoping to sell within the first two years. Also, TJC plans to increase their beginning revenue by 60%. TJC plans to meet the needs of India's growing industrial economy with profitable, efficient, and reliable ethanol. The company will set their pricing competitively, but also so the companies will feel comfortable purchasing it. The other large competition to TJC is Brazil, who does not actively ship to India, unless needed, and other competition includes India itself. However, TJC will be selling more affordable ethanol than India can produce. The company will need to be flexible and organized while working with a different country, who have different customs. They will need to follow India's business etiquette, and follow the traditions and expectations of India's business market. The timeline for this project is projected well and TJC will plan to meet all the goals in the upcoming years.
Part II-Company Goals
TJC Alternatives has been looking to expand global operations of ethanol sales. Due to exponential growth of ethanol production TJC Alternatives is seeking to expanding operations outside of North America. TJC Alternatives' goals and objectives will be reflected on the research done by our team. From days of research we have come to the conclusion of selling ethanol to India.
TJC Alternatives' short term goals include: allocating a new energy sources to fuel their transportation sector and broaden the overall economy of India. TJC plans on forming a bond with the companies that supply India with fuel. To form these bonds, TJC will send over executives to confer about buying ethanol for their fuel needs. In order to move the company ahead these short-term goals will be accomplished within six months to increase profitability.
TJC Alternatives' intermediate goals that need to be completed within the first two years include: start shipping ethanol to 3-5 different companies in India. TJC Alternatives would also like to maintain a consistent cash flow; the company would like to increase profitability by 10%. By increasing profitability TJC will form a reliant customer base.
TJC Alternatives' long term goals are: to get connected to all of the major companies in India. We would also like to increase our beginning revenue by 60% by the end of the 6th year. TJC would also like to beat their competitor's profit outcome by 6%.
Part III-Customer's Needs
India is now starting to industrialize their economy and need petrol fuels to help fuel their economy. The companies will need TJC to supply with ethanol to pro-long their oil and gas from the local petroleum industry. The ethanol product that India's economy demands will need to be profitable, efficient, and reliable.
Part IV-Pricing Strategy
Product pricing can help your company achieve profitability, support product positioning, and complement your marketing mix. The following discussion outlines some of the details of the proposed marketing mix for TJC Alternatives products.
As discussed earlier in this plan, TJC Alternatives product, ethanol, will be priced with the competition in mind. The business is not concerned with setting high prices to signal luxury or prestige, nor is it attempting to achieve the goals of offsetting low prices by selling high quantities ethanol. Instead value pricing is practiced so that companies buying our product feel comfortable purchasing it. The pricing strategy also makes TJC Alternatives will be priced competitively, offering a good value against it competition.
Currently India can make its own ethanol, the problem is they do not have a large enough supply of sugarcane to meet the grown demands of their economy. Secondly, our competitors, Brazil, cut back their production, giving TJC Alternatives an advantage of coming into the Indian market at approximately $.11 per liter of ethanol. That is also the current price charged to the companies for buying local Indian ethanol. At an R48 (which produces the E ratings at the pump) value rated ethanol mixture on the approximately 8,800 crore liters that data shows India utilizing would create a large profit margin for TJC Alternatives.
TJC Alternatives is a U.S. ethanol based company that wants to expand globally. By selling TJC Alternatives ethanol product direct to the gas companies takes out the middle man which would allow us to offer the companies directly a more economical product.
$0.18 $0.16 $0.14 $0.12 $0.10 $0.08 $0.06 $0.04 $0.02
Price of Ethanol per liter
2018 2019 2020 2021
TJC Alternatives has limited competition for ethanol sales to India. The highest competition TJC has is Brazil, who does not actively ship to India. Brazil ships to India when India requests petroleum. Another competitor is India itself, but in the last years India's production decreased by 8%, and the production of sugar cane decreased greatly.
Part VI-Marketing Mix
TJC Alternatives will follow the following marketing mix:
Corn ethanol is produced by means of ethanol fermentation and distillation. Corn ethanol is mainly used as an oxygenate in gasoline to produce a low-level blend, usually 10% mixture. To a lesser extent, it is used as fuel for E85 flex-fuel vehicles.
List price for the ethanol will be $.11 per liter. No discounts at this time for bulk or quantity, but TJC Alternatives may be willing to change that in the future. Chennai Port, is the second largest container port of India, behind the Nhava Sheva Port. It is an artificial and all-weather port, it is dedicated facility for oil led to the development of oil refinery and fairly close to the capital city of New Delhi. This would help keep the cost of transporting the product down by getting our product right to the refineries and large transportation areas. This would be the ideal place to introduce the ethanol.
Sales directly to the gas companies will allow the cost to remain lower. India does not have enough sugarcane to meet the demand of the growing economy, so TJC Alternatives would send in their leaders to meet the industry leaders to talk about our product and how we can work together to relive this pressure. Media will be involved as ethanol becomes available at the pump to also help cut costs at the pump to the consumers.
People involved in the initial startup, besides government entities, would be the oil and gas industry leaders in India and the locally owned gas stations.
Part VII-Economic, Social, Legal, and Technological Trends
India's biggest problem right now is their sugar cane production has declined by 8% causing their ethanol production to decline. This has led to them having to buy more ethanol
from companies like TJC. This is an ample opportunity for TJC to make a profit from shipping ethanol to India.
Part VIII-Human Resources Requirements
TJC Alternatives communicates with the oil and gas companies and retailers about its products in a variety of ways. Information about TJC Alternatives —the company as well as its products—is available via the Internet, direct mailings, and in person. TJC Alternatives' efforts also seek to differentiate its products from those of its competitors.
The company relies on personal contact with other companies to establish the products in their stores. This contact, whether in-person or by phone, helps convey the TJC Alternatives message, demonstrate the products' qualities, and build relationships. TJC Alternatives sales representatives visit each company within India and help with training on the features of the products as well. As distribution expands, TJC Alternatives will adjust strategies to meet greater demand by increasing sales staff to make sure it stores are visited more frequently.
Sales promotions and public relations currently make up the bulk of TJC Alternatives' promotional strategy. TJC Alternatives staff works with the industry leaders to offer short-term sales and long-term commitments.
Because we are dealing with different cultures and traditions some nontraditional marketing methods that require little cash and a lot of creativity also lend themselves perfectly to TJC Alternatives. Because TJC Alternatives will have to be flexible and organized the business can easily implement ideas such as dinner with the company leader's family. A lot of businesses are likely to be family-run and owned, and there will be a preference for employing other family members where possible. Business etiquette in India also includes:
“When first meeting someone, it is common to be introduced to them by a third party. Indian culture places a great deal of importance on personal relationships, and many business relationships will be built upon a personal foundation. Therefore, being introduced by a mutual acquaintance will stand you in good stead.
As a result of British colonial influence, handshakes are the standard greeting in a business environment. Be aware, however, that in a lot of situations it is not normal for men and women to shake hands with each other due to religious influence, so keep your eyes open to try and see what is expected by the people you are meeting with.
If meeting with a group of people, be sure to greet each person individually rather than addressing them as a group. Due to the influence of hierarchical Indian social structure, the oldest or most senior person present should be greeted first, followed by the next most senior, and so on.
The work day in India typically starts at 10am, though in major cities it can be considerably earlier, so if in doubt schedule meetings no earlier than mid-morning. It is considered good manners in India to be slightly late, so make sure you factor this into your schedule. However, you should also be aware that Indian businesspeople who are used to dealing with westerners may expect you to be punctual.
It is common to exchange business cards on first meetings, and small gifts such as sweets would also be well received. Avoid touching, other than the initial handshake, as this is considered rude.
Normal business dress for both men and women is western in derivation, and it is common to see suits and ties on men, and pant-suits or long skirts on women. If you are not used to the heat of a tropical country, make sure you try to dress smartly yet in a way that you will be comfortable.
When talking to Indian people, make sure to be aware of your body language, as much significance will be attached to it. Avoid “aggressive” postures, such as folded arms or hands on hips, and also avoid putting your feet up on furniture or pointing them at another person, as, like the left hand, the feet are considered unclean. Be aware that sustained eye contact is not necessarily usual, especially when speaking to someone of a lower or higher status.
When negotiating agreements, expect there to be many rounds of back and forth. In India business decisions are rarely made quickly or lightly, so it is important not to get frustrated by any delays you experience.” (Kwintessential, 2016)
Part IX-Marketing Timeline
TJC will send executives to India to discuss with all of the major petroleum companies. The executives are aloud 6 months to convince the companies to buy TJC's ethanol product.
TJC would like to be shipping to 3-5 of the major companies in India to keep a consistent cash flow. When we start selling ethanol to the petrol companies of India we will charge them $0.10 per liter. After we have created a strong bond between TJC and the companies TJC will start pushing to make 10% more profit. This will tell TJC who their reliable customers are. These will all be completed within the first two years.
At the beginning of the third year TJC will start to become connected with all of the major ethanol companies in India. By the sixth year TJC's goal is to increase revenue by 60%, and beat their competitors profit by 6%.
...(download the rest of the essay above)