This document provides information about Lifetrons Switzerland and their DrumBass III Bluetooth speaker. It includes an introduction to the company and product, specifications and features of the speaker. It also discusses the growing consumer electronics market, a SWOT analysis, and a commercial offer with a request for quotation from a Singapore retailer. Cultural differences in negotiation with Singaporeans are outlined. Charts with comparison tables and calculations using different incoterms are included in the appendix.

1. 2014-2015
Msc International Business | Linh Lai

2. 1
Contents
Overview....................................................................................................................2
Company introduction ............................................................................................2
Product introduction ...............................................................................................2
International context and future prospect ..................................................................3
The growth of consumer electronics market ..........................................................3
SWOT analysis .......................................................................................................4
Commercial offer.......................................................................................................5
Request for quotation..............................................................................................5
Letter of Reply........................................................................................................6
Intercultural aspect of negotiation ..........................................................................7
Buyer’s profile:....................................................................................................7
Cultural differences to be noted: .........................................................................7
Negotiation Strategy:...........................................................................................7
Appendix....................................................................................................................8
CAP Table...............................................................................................................8
Objections and answer to objection........................................................................9
Incoterm Calculation: ...........................................................................................10

3. 2
Overview
I. Company introduction
Founded in 2005, Lifetrons Switzerland prides itself on providing innovative products with high
quality to customers all over the world. Despite its short lifespan, Lifetrons Switzerland has proven to
be one of the best brands for unique electronic essentials and accessories for travellers in the move
and achieved an impressive collection of product award from prominent entities such as iF Product
Design Award and Red Dot Design Award. Our vision is to become globally recognized brand of
excellence and the foremost supplier for innovative high quality lifestyle products. With customers at
the center of our service, Lifetrons Switzerland has been devoting our R&D resources to provide the
ultimate solution for refined travellers all over the world. Our wide range of compact electronics with
Swiss promise of quality design, reliability and innovation has reached millions customers through
our distribution of onboard selling in 120 different airlines and in selected duty-free shops worldwide.
II. Product introduction
The main product we are introducing is the DrumBass III Bluetooth Speaker. This is one of our
signature products that received Red Dot Design Award in 2013.
Specifications:
 Dimensions: ϕ43mm x 55mm
 Output: 3W
 Weight: 86g
 Rechargeable via standard USB output
 Mini USB input for charging (3.5 hours)
and 3.5
 Music playback time: up to 10 hours
 Wireless range: 10m
 International warranty
Features:

4. 3
 Swiss-designed with an elegant black metallic finish
 Built-in Bluetooth wireless technology works up to 10 meters away
 Enjoy up to 10 hours of audio playback time
 Improved DrumBass technology delivers stunningly powerful sound
 Dual Color LED: The LED indicates charging or playback status
What’s Inside
 DrumBass III BT Bluetooth Speaker
 Audio and charging cable
 Exclusive magnetic storage case
 User guide
Compatibility
 Any portable audio device with Bluetooth capability
 Any device with a 3.5mm input for audio playback
 Any USB port for charging
International context and future prospect
I. The growth of consumer electronics market
The consumer electronics market is one of the fastest growing markets globally. As technology keeps
changing at accelerating pace, many customers strive to keep up with the latest gadgets and models.
The graph below shows the intention to buy electronics devices in the next 12 months through a
survey conducted by euromonitor. As indicated in the graph, tablets and smartphones are among the
top buying list in both emerging and developed markets. The increase in use of tablet and smartphone
will potentially raise the global sales of complements goods such as electronic accessories and
computer peripherals.

5. 4
In Singapore, it is estimated that consumer electronics spending will increase 6-7%, reaching 4.2
USD. With computer hardware sales increased from 2.04 billion USD 2013 to 2.12 billion 2014, AV
sales increased from 811 million USD to 986 million USD and handset sales from 1.06 billion USD
to 1.09 billion USD according to businessmonitor, Singaporean market is expected to be heating up
with competition, in which a player can only succeed if it has valuable products to satisfy the strict,
premium-oriented local customers.
II. SWOT analysis
Strength
Follow Swiss standard of product
quality
Innovative product with great design
International Awards
Global Presence
Good after sale service
Weakness
Price of product (higher than average)
Young company
Distribution limited to onboard selling
and few duty free shops
Opportunity
High demand from the market
Postitive image of Swiss product
Increased passengers movement in
airports
Strategic location of Changi
International Airport
Trade agreement between EU and
Singapore
Threats
Intense competition
Strong local consumer electronics
industry
Cost of exportation

6. 5
Commercial offer
I. Request for quotation
Sprint-Cass
49 Jalan Pemimpin #06-01/07
APS Industrial Building
Singapore 577203
Lifetrons Switzerland AG
Schultrasse 3, 9115 Dicken
Switzerland
Subject: Request for price quotation for DrumBass III BT Bluetooth Speaker
Singapore, January 10th
, 2015
To Whom It May Concern,
As a major electronics retail store in Changi Aiport with 7 outlets in Transit Areas and Public Areas,
we are currently looking for new valuable brands to add to our wide selection of electronics devices.
Sprint-Cass prides itself on providing a wide array of electronic consumables ranging from Cameras,
Computers, IT Peripherals, Games, Software to Lifestyle Electronics and Digital Imaging as well as
working with impressive line of international brands such as MobileGear, McGear among other
prominent brands.
We have been particularly interested in your product: DrumBass III BT Bluetooth Speaker and would
like to offer it to our customer. We are considering the volume of 3000 pieces at the beginning and if
the product is welcomed in Singapore, we can double the order to 6000 pieces. We need the product
to arrive on April 20th
, 2015 as the last day in order to prepare for our Summer season sale. If this line
of product is working well, we can consider adding more products from Lifetrons Switzerland to our
outlets.
We are looking forward to receiving your best price quotation.
Sincerely
Andy Lau
Head of Purchasing

7. 6
II. Letter of Reply
Lifetrons Switzerland AG
Schulstrasse 3. 9115 Dicken
Switzerland
Sprint-Cass
49 Jalan Pemimpin #06-01/07
APS Industrial Building
Singapore 577203
Subject: Quotation for DrumBass III BT Bluetooth Speaker
Dicken, January 15th
, 2015
Dear Mr. Andy Lau,
We are writing to respond to your letter dated January 10th
, in which you requested for our quotation
of 3000 pieces of DrumBass III BT Bluetooth Speaker. First of all, thank you for your interest in our
company and our product in particular.
We are glad to enclose the detailed information about our product below and we are open for further
discussion about price and product at your convenience.
 3000 DrumBass III BT Bluetooth Speakers
 Individual box packaging
 98 pieces per export carton
 Price condition: CIP Singapore
 Delivery date: March 17th
, 2015
 Payment conditions: 50% draft payment upon order placement, 50% upon delivery
Pro-forma Invoice:
Unit price Total Price
DrumBass III BT 74 USD 222,000 USD
Contractual terms:
Total amount due: 222,000 USD
Incoterm: CIP Singapore
Packaging: individual box packaging
Transportation conditions: Air transport
Final destination: Singapore
Payment terms: 50% draft payment upon order placement, 50% upon delivery
Insurance: Covered up to CIP
Transfer of property: Goods will deem to belong to Sprint-Cass when full payment is received
Applicable Law: If disputes arise, the law of Singapore will be applied to resolve conflicts
We are looking forward to discussing prospect of your order in the near future
Sincerely,
Lynn Amstrong
Commercial Director

8. 7
III. Intercultural aspect of negotiation
1. Buyer’s profile:
Established in 1983, Sprint-Cass is the biggest electronics retail store in Changi International Airport
and currently operates 5 outlets in Transit Areas and 2 other stores in Public Areas. Its location in
Changi International Airport (approximately 5 million passengers per month) has given Sprint-Cass
strategic exposure to attract customers and increase sales. Their customers are most often travelers
who are waiting for their flights. They particularly look for light, compact and sleek devices with
reliable quality.
2. Cultural differences to be noted:
Singapore is a multiracial country; one should be cultural sensitive over this matter and avoid talking
about religion, race or politics. At the first meeting, one should make sure to use the person’s title and
family name followed by his personal name, if the has a Chinese name. If he has English name, he
can be addressed in Western manner. Business cards should be exchanged and treated respectfully.
Ideally, one should give and receive by both hands and place it in front on the table. Small,
meaningful business gift is greatly appreciated. Gifts are normally wrapped, presented and received
by both hands and opened when the giver partner leaves.
Singaporean tend to get right down to business in meeting, they are fast-paced and make decision
quickly. Thus, it is advisable to get straight to the point with Singaporean and be direct when dealing
with issues of money.
Tardiness is considered disrespect for Singaporean, one should make sure to be on time or inform the
delay beforehand.
In Singapore, a trusting business relationship takes several years to form but once established, this
relationship can last for very long time. Therefore, one should always be mindful of their promises
and act up to their word.
3. Negotiation Strategy:
Our main objective in this negotiation is to widen our product distribution and increase our presence
in Singapore. In order to achieve that, we are looking for lifelong and solid relationship with Sprint-
Cass. In order to pursuit our win-win strategy, we are willing to sacrifice up to 8% of our margin. We
can offer additional discount if Sprint-Cass agrees to buy some other products from Lifetrons or
increase the sale volume. Price can be further decreased if buyer agrees to take charged of
transportation and insurance.
If Sprint-Cass agrees to prolong the relationship and order higher volume (at least double), price can
be negotiated and decreased up to additional 6%.

9. 8
Appendix
I. CAP Table
Characteristic Advantages Proves
Security
 Swiss design
 In-house R&D
 Close relationship
with
manufacturers
 Secured
products
according to
Swiss standard
 Safety priority
 Close control
and monitoring
 ISO 9001 for
quality
 International
warranty
Pride
 High quality
 Refined,
distinctive design
 Fashionable
 Elegant black
metallic finish
with magnetic
cover
 Bring out styles
and personality
 Powerful Bass
 Red Dot Design
Award 2013
Novelty
 New design and
concept
 Attract refined
travellers
 Cord to connect 2
speakers
 Improved
DrumBass
technology
Comfort
 Small, Compact
 Portable
 Ease of use
 Reliability
 Use for different
activities
 Save packing
space
 Weight 86g
 10 hours of audio
playback
 Bluetooth
compatible and
USB chargeable
Money  Affordable
 Everyone can
buy
 Average price is
$95 per item
 Free 2 years
warranty
Sympathy
 Style that
interrelated to
innovation
 Uniqueness
 Perception of
Swiss-design
 Stimulate need
to be in style and
be different from
customers
 Customer class
 Design award
 Exhibition in Red
Dot Award
Museum Singapore
Environment
 Environmental-
friendly
 Produced with
low carbon
footprint
 Sustainable
material
 Paper box instead
of plastic
 Small size, use less
paper containers

10. 9
II. Objections and answer to objection
Objections Answer to objections
This product is so expensive
I agree that this product is at a higher price
than other speakers but it is not expensive
compared to the quality and benefits it
brings to customers. We have to
emphasize that this is Swiss standard and
the design is so sleek that would make
customers want to pay for a little more
money.
There is nothing special about this product
Our product is very differentiated from
other speakers. It has great sound quality,
long lasting battery, portable which is
suitable for a lot of activities like outing,
camping, etc
This is Swiss design but assemble in China,
the quality cannot be very good
We keep very long relationship with our
manufacturer in China, which really helps
us monitor the quality of the products.
Even though it is assembled in China, the
manufacturers still have to follow our
protocol and standards, which still makes
our product a Swiss standard.
The device is easily ruined
Our speaker is protected in a sturdy
magnetic box and then a cloth packaging
outside, it will not break easily if you drop
it. Furthermore, we have international
warranty which can be reached easily
through our regional office
There are a lot of competitions
Yes, it cannot be denied. However, there
are few portable speaker that has our
design, quality and is wrapped in a
magnetic box
The cord is so short and how can customers
replace the cords once they are ruined
You can easily find similar cord in the
market in variable price range. Though the
cord is short, I think most people will use it
to connect to other speakers as nowadays,
most devices have Bluetooth and it is the
main feature of this speaker
I cannot finalize the order today, I need to
have a closer look at it
Is there anything I can do to help you with
your decision? You know that we are
offering you a very innovative product and
a very good price. If there is anything
unclear to you, we can find a solution
together.

11. 10
III. Incoterm Calculation:
We choose to deliver 3000 pieces of DrumBass III BT Bluetooth by air transport from Shanghai to
Singapore. Following is our calculation concerning Incoterm
Total of pieces: 3000; 98 pieces/packing box
Unit Price: $67/ EXW from Shanghai = 85.09 SGD
Weight: 100g/ pcs (including box)
Dimension: 55mm x 43mm x 43mm/ pcs
Size of packaging: 0.5 x 0.5 x 0.4, 10kg/box; 31 boxes
Data Unit per box Total
Real Weight 10kg 10 x 31= 310kg
Volume 0.5 x 0.5 x 0.4 = 0.1m3
0.5 x 0.5 x 0.4 x 31= 3.1 m3
Virtual Weight 3.1/6 x 1000 = 517kg
Chargeable Weight 517kg
Tariff (air transportation: Shanghai- Singapore) (DHL)
21-44kg = 4.54 SGD/kg
45-70kg = 4.08 SGD/kg
71-99kg = 3.92 SGD/kg
100-299kg = 3.84 SGD/kg
300-499kg = 3.6 SGD/kg
500-999kg = 3.48 SGD/kg
1000kg + = 3.36 SGD/kg
Calculation of threshold:
(1000 x 3.36)/3.48 = 966 >517 so we will use the tariff of 3.48 SGD/kg
So, transportation cost = 517 kg x 3.48= 1799 SGD (1416.5 USD)
Incoterm Table:
1 US dollar =1.27 SGD
Logistical conditions:
Delivery time: 2-5 working days
Insurance: 0.25% on 1.2 CIP by air
Inland transportation from factory to airport: $50
Insurance coefficient= 1-(0.25% x 1.2)= 0.997
Incoterm Total price (3000 pieces) Unit price USD Unit price SGD
EXW 67x3000 = 201,000 67 85.09
FCA 201000 + 50= 201,050 67.02 85.11
CPT 201,050+ 1,416.5 =202,466.5 67.49 85.71
CIP 202,466.5/0.997 = 203,075.73 67.69 85.97