INTERNATIONAL MARKETING

Rashmi Ramachandra Roll No. 87

Official Name: United Kingdom of Great Britain and Northern Ireland Subdivisions : England, Scotland, Wales and Northern Ireland Population : 62,698,362 (est. July 2011)

INTRODUCTION

Capital : London (metropolitan pop. about 8.615 million). Most-populated city: London Area : 243,610 sq. km. (94,058 sq. mi.) Terrain : 30% arable, 50% meadow and pasture, 12% waste or urban, 7% forested, 1% inland water. Land use: 25% arable, 46% meadows and pastures, 10% forests and woodland, 19% other. Climate: Generally mild and temperate; weather is subject to frequent changes but not often to temperature extremes. Major religions: Christian 71.6%, Muslim 2.7%, Hindu 1%, other 1.6%, unspecified or none 23.1%. Major languages: English, Welsh, Irish Gaelic, Scottish Gaelic.

INTRODUCTION contd
Major Ethnic groups Literacy Education Life expectancy : White 92.1% Black 2%, Indian 1.8%, Pakistani 1.3%, mixed 1.2%, other 1.6%. : 99%. : Mandatory from ages 5 - 16. : Males 77.95 years; Females 82.25 years; Work force : Services 80.4%; Industry 18.2%; Agriculture 1.4%. GDP : $2.247 trillion Annual Growth Rate: 1.25% Major Goods Exports: Manufactured goods , fuels, chemicals, food , beverages

History
55 B.C. : Invaded by Rome and subsequent incorporation to Roman
Empire 5-6th Century: Invasion by Angles, Saxons, and Jutes 1066 A.D. : Norman conquest ensures safety of Britain from further conquests and development of Britain as a political, administrative, cultural, and economic center 1536 : Political and administrative union of Wales 1588 : Defeat of Spanish Armada establishes England as a Sea Power 1707 : Union of England and Scotland completed Great Britain 1801 : Union of Great Britain and Ireland to form United Kingdom. in remote parts of the world. The height of colonial expansion was during the reign of Queen Victoria (1837-1901). Queen Victorias reign witnessed the spread of technology ,commerce ,language and government spread throughout

Between 14th Century and 19th Century British Empire established colonies

CULTURE
Recorded history /Culture of the United Kingdom is from the Roman Invasion of Britain. The four countries forming United Kingdom England ,Scotland , Wales and Northern Ireland have known to be inhabited in the Neolithic, Mesolithic , Bronze Age and Iron Age The Stone Henge and Avebury in England are remains from the prehistoric ages.

Culture contd..
Literature : Encompasses the literary traditions of England and Scotland including native literature written in Celtic Language, Anglo-Saxon literature and recent English literary works of Shakespeare, Milton, Alexander Pope,Charles Dickens ,Oscar Wilde and other literary stalwarts. Theatre : Vibrant tradition of theatre since 1707, West End is the oldest theatre built in the 17th Century. Royal Shakespeare theatre built in 1932

Culture Contd
Music: Long history of music includes Traditional folk music, ballads, Western Classical Music, British pop and rock, Christmas Carols first sung in 1426, Nursery Rhymes recorded in English plays in Mid 16th Century. One of the main countries in development of Rock Music. London is a major centre for world classical music and houses the The Royal Philharmonic Orchestra and the Royal Opera house one of the worlds oldest opera houses. Top pop groups include The Beatles, The Rolling Stones, Led Zeppelin and many others.

Culture Contd
Cinema: Large impact on modern Cinema,
greatest actors, directors and motion pictures of all time including, Sir Alfred Hitchcock, Charlie Chaplin, David Lean, Vivien Leigh, Audrey Hepburn, John Gielgud, Sean Connery, Odeon Cinema in London hosts numerous European and World Film Premiers Media and Broadcasting: BBC is the largest broadcaster in the world. BBC and Channel 4 are state owned but operate independently.

Education
Separate education system in each country of UK Has Comprehensive Schools and Public Schools Public schools like Eton , Harrow & Rugby are prominent schools founded hundreds of years ago. Has highest ranked universities in the world like University of Oxford and University of Cambridge, Imperial College ,London London School of Economics and London Business School are considered as worlds best institutions for research and business management respectively.

Science and Technology

Pioneer of the Industrial /Scientific Revolution England and Scotland have been prominent in world scientific and technological development. Royal Society serves as the national academy of sciences and the oldest learned society existing since 1660. Pioneers of Science and technology include Sir Isaac Newton, Michel Faraday, Charles Darwin, James Joule and many others.

ECONOMICAL
UK is the 6th largest national economy in the world measured by nominal GDP. GDP 2010: $2.247 trillion. Annual growth rate (IMF, 2010): +1.25%. Unemployment rate: 7.7% Budget Deficit: 11% of GDP Natural resources: Coal, oil, natural gas, tin, limestone, iron ore, salt, clay, chalk, gypsum, lead, silica. In terms of output Agriculture accounts for 0.8% of GDP; Industry 15.9% of GDP Services 83.3% of GDP Ease of doing business ranking 2011: 6th US A & UK share the world largest FDI partnership USA to UK :$421 billion (2008) UK to USA :$454 billion (2008)

ECONOMICAL contd
TRADE Exports of goods and services--$664.3 billion. Major goods exports--manufactured goods, fuels, chemicals, food, beverages, tobacco.

Major export markets--U.S., European Union.

Imports of goods and services--$740.8 billion. Major goods imports--manufactured goods, machinery, fuels, foodstuffs. Major import suppliers--U.S., European Union, and China.

EXPORT PARTNERS
Top UK Export Partners
Sr. NO. 1 2 3 4 5 Country of Destination UNITED STATES GERMANY FRANCE NETHERLANDS IRISH REPUBLIC 2009 (m) 33531 24760 17871 17379 15295 2008 (m) 34964 28454 18746 19367 18586 % Change -4.1 -13 -4.7 -10.3 -17.7

IMPORT PARTNERS
Top UK import partners
Rank 1 2 3 4 5 Country of Dispatch 2009 (m) 2008 (m) 44460 28877 21968 25327 23191 % Change -12 -1.5 4 -16.3 -12.8

GERMANY 39131 UNITED STATES CHINA 28451 22840

NETHERLA 21201 NDS FRANCE 20226

POLITICAL
Type : Constitutional monarchy. Constitution: Unwritten; partly statutes, partly common law and practice. Branches: Executive--Monarch (head of state), Prime Minister (head of government), Cabinet. Legislative--bicameral Parliament: House of Commons, House of Lords; Scottish Parliament, Welsh Assembly, and Northern Ireland Assembly. Political parties: Conservative, Labour, Liberal Democrats, UK Independence Party, British National Party and other regional parties in Scotland , Wales and Northern Ireland.

POLITICAL contd

Foreign relations : Relations with all members of Commonwealth of Nations United States is closest ally Has good relations with Europe An influential role in the Commonwealth, United Nations Founding member of G7,G8,G20,NATO,OECD,WTO etc. Military the third-largest defence budget in the world One of the 5 recognized nuclear powers in the world Royal Navy is the only navy to build supercarriers after US.

GEERT HOFSTEDE INDEX- INDIA-UK

100

90
80 70 60 50 40 30 35 77

89

66 56

61
40 India 35 25 UK

48

20
10 0

PDI

IDV

MAS

UAI

LTO

Geert Hofstede Index- India U.K.

Power Distance Index: At a PDI of 35 UK has a society that believes that inequalities amongst people should be minimized. Individualism: At a score of 89 UK has one of the highest Individualistic scores which can be compared to other countries like USA , Australia and other developed countries. The British are highly individualistic and private people Masculinity: At a score of 66 Britain is a highly masculine society ,highly success oriented and driven. UAI: At a score of 35, the British are risk takers and flexible to changing environment. LTO: At 25 the UK is a short term oriented society which has a great respect for history and tradition as well as a focus on quick results in the future. Planning horizons tend to be short and business particularly is very focused on short term quarterly goals and quick results

Business in UK
Best Buy UK Joint Venture of Best buy US Electronics retailer and Mobile Co. Carphone warehouse UK. Best buy has 51% stake in Carphone Warehouse Established in April2010 Original Target of 200 stores, opened only 11 stores Estimated losses in fiscal year 2011 $318 mill Brand retreat from UK by end of year 2011 but will have financial interest in Wireless World which has 142 stores.

Best Buy cont..

Strategy for launch Acquisition Big box stores for electronic outlets Strong emphasis on US-style customer service Low prices. Reasons for failure: Acquisition during economic decline Choice of large outlets not working Change in UK customer habits, preferring to buy electronics through online.

Business in UK
Nestle-Kit Kat
KitKat invented in 1935 by a York-based chocolate maker named Rowntree 1970s, Rowntree sells the rights to sell Kit Kats in the U.S. to Hershey Inc 1989, Nestle buys Rowntree with plans to aggressively expand KitKat internationally. Nestle's U.K. chocolate business peaked in 1999, with the launch of KitKat Chunky. By 2003 novelty of Kit Kat Chunky and Kit Kat cubes fell sharply . Faces stiff competition from Cadbury. Brand extension in 2003 for KIT KAT using new flavours By 2004 candy business stabilizes because of the introduction of new flavours.

Nestle- KIT KAT Contd..

Stability is shortlived. Other major brands like Mars,Twix, Snickers show increase in sales. 100 years of Brand investment ripped. New strategy to revive Kit Kat Call centres set up to obtain customer feed back Customers dislike of new flavours (will try once) but will not repeat Prefer the classic Kit Kat Axed new flavours Devised new marketing campaign with triple the budget as of 2005 Brought back sloganHave a Break, Have a Kit Kat Increase in sales of traditional Kit Kat up by 12 %