SPRING CLEAN PRODUCTS
MARKET RESEARCH
1
About the Researcher
The researcher has undertaken massive market research in the Asian countries for the last ten years. He has been able to gain vital exposure on how to critically analyze these markets before venturing. The following research report was compiled for Spring Clean Products that wants to open a detergent manufacturing plant in Asia.
The following are the countries I have keenly analysed as potential hosts for the manufacturing site of Spring Clean Products. These are China and Singapore.
Fundamental information on China
China is among the worlds top leading exporters of a wide array of commodities . it therefore receives significant amounts of foreign investment.
It has a per capita per person of $9844. This is relatively high given the high population in the country.
It is a member of WTO (World Trade Organization) hence the country enjoys enormous benefits due to access to foreign markets. However, its relations with other trading partners is a matter of concern given the high surplus trade and piracy levels.
China has devalued its currency which result in goods being extremely cheap for foreign buyers therefore encouraging export.
The country enjoys a stable political environment.
China and India have a combined population of 2.3 billion people, about 37 percent of world's total. A 100 dollar increase in the per capita income of these two countries would translate into about 230 billion dollars in additional demand for commodities.
3
Fundamental information on India
Located in South Asia.
Has a population of 1.2 billion people and is the fourth largest economy in the world.
It has a sizeable middle class. The country has a GDP per capita income of US dollars 4000.
India receives high foreign direct investments and its now home to globally recognized companies especially I n the pharmaceutical and steel sector.
The country is the largest democracy in the world and has enjoyed political stability
India in its sixty five years of independence, it has witnessed a landmark agricultural revolution which has changed the nation from a high dependant on grain import to an agricultural powerhouse across the globe becoming a net food exporter. Moreover, life expectancy has doubled since independence, the literacy levels have multiplied way much above times four and health facilities have improved significantly.
4
Factor ChinaIndia1. Availability of raw materialsThe country is heavily endowed with sodium chloride, phosphate and chlorine. Cheaper than IndiaIndia has reliable sources of sodium chloride, phosphate and chlorine which are key essential in manufacture of detergents.2. Availability of skilled workers and managersThe country enjoys highly skilled labor which is relatively cheap due to the high populationIndia has highly skilled labor though slightly expensive compared to that of China3. Potential size of the market including neighboring countries
Chi.
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SPRING CLEAN PRODUCTSMARKET RESEARCH 1Abou.docx
1. SPRING CLEAN PRODUCTS
MARKET RESEARCH
1
About the Researcher
The researcher has undertaken massive market research in the
Asian countries for the last ten years. He has been able to gain
vital exposure on how to critically analyze these markets before
venturing. The following research report was compiled for
Spring Clean Products that wants to open a detergent
manufacturing plant in Asia.
The following are the countries I have keenly analysed as
potential hosts for the manufacturing site of Spring Clean
Products. These are China and Singapore.
Fundamental information on China
China is among the worlds top leading exporters of a wide array
of commodities . it therefore receives significant amounts of
foreign investment.
It has a per capita per person of $9844. This is relatively high
2. given the high population in the country.
It is a member of WTO (World Trade Organization) hence the
country enjoys enormous benefits due to access to foreign
markets. However, its relations with other trading partners is a
matter of concern given the high surplus trade and piracy levels.
China has devalued its currency which result in goods being
extremely cheap for foreign buyers therefore encouraging
export.
The country enjoys a stable political environment.
China and India have a combined population of 2.3 billion
people, about 37 percent of world's total. A 100 dollar increase
in the per capita income of these two countries would translate
into about 230 billion dollars in additional demand for
commodities.
3
Fundamental information on India
Located in South Asia.
Has a population of 1.2 billion people and is the fourth largest
economy in the world.
It has a sizeable middle class. The country has a GDP per capita
income of US dollars 4000.
India receives high foreign direct investments and its now home
to globally recognized companies especially I n the
pharmaceutical and steel sector.
The country is the largest democracy in the world and has
enjoyed political stability
3. India in its sixty five years of independence, it has witnessed a
landmark agricultural revolution which has changed the nation
from a high dependant on grain import to an agricultural
powerhouse across the globe becoming a net food exporter.
Moreover, life expectancy has doubled since independence, the
literacy levels have multiplied way much above times four and
health facilities have improved significantly.
4
Factor ChinaIndia1. Availability of raw materialsThe country is
heavily endowed with sodium chloride, phosphate and chlorine.
Cheaper than IndiaIndia has reliable sources of sodium chloride,
phosphate and chlorine which are key essential in manufacture
of detergents.2. Availability of skilled workers and
managersThe country enjoys highly skilled labor which is
relatively cheap due to the high populationIndia has highly
skilled labor though slightly expensive compared to that of
China3. Potential size of the market including neighboring
countries
China has both a big international and local markets. This is
because of its export policy and high population for the local
marketThe country has a large internal market as well as an
export market.4. Trade investment policiesThe country is a
member of World Trade organizations and complies with most
of the WTO policies.Abides with the international policies spelt
out by WTO for efficient trade.
4. Factor ChinaIndia5. Stability of local currencyThe country has a
devalued local current that makes the goods very cheap for
international markets therefore facilitating trade.The Indian
rupee was among the best performance in the world market6.
Cost of transportDespite China’s vastness, it has a good road,
air and rail network that facilitates efficient trade. The cost of
transportation is relatively lower than that of India It is a big
country with notable investments in road, air and railway
transport. It however lags behind China.7. Government
regulation and restrictionsThe country has favorable laws and
regulations on FDI.India has a favorable set of laws and
regulation on FDI.8. Competition from localsThere is presence
of many competitors but presence of a large market to
satisfyThere is presence of many competitors but presence of a
large market to satisfy
The Indian rupee was at one time at par with the American
dollar during the time of India's independence in 1947.
However, the rupee depreciated by more than 65 times against
the dollar for the last 66 years. Moreover, it touched its historic
record low of below 65 against the dollar as a result of
continued dollar demand from importers and has also witnessed
high volatility in the last two years.
Before 1950, in China there was only 21, 800 km of railway
lines. By the year 2010, the railway line network had extended
to more than 90, 000 km making railway transport the most
preferred means of transport.
5. 6
Recommendations
Despite the favorable business environments in both countries, I
recommend that Spring Clean Products set up a plant in China.
This is due to the cheap raw materials, relatively cheaper labor
costs and a better road and railway network compared to that of
India.
The country also enjoys well defined systems and export routes
hence marketing to other countries such as Taiwan, Singapore
and Malaysia
Trade barriers in China are minimal cumulating to about 20% of
the trade value. Transport cost contribute 42% while non
transport cost contribute 58% of the trade barriers. Taxes that
touch on transport account for 30% while the labor costs add up
to 35%. The artificial trade barriers that are brought about by
the government are very negligible to be considered as trade
barriers.
Due to the size of the market i.e. 1.3 billion people, China
produces up to 5 million tones of detergent every year.
7
6. Unit 3 Individual Project 1
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American Intercontinental University
MACROBUTTON DoFieldClick Type your Paper Title
Project Type: MKTG340 Unit 3 Individual Project
MACROBUTTON DoFieldClick Date of Submission
Abstract
This is a single paragraph, no indentation is required. The next
page will be an abstract; “a brief, comprehensive summary of
the contents of the article; it allows the readers to survey the
contents of an article quickly” (Publication Manual, 2010). The
length of this abstract should be 35-50 words (2-3 sentences).
NOTE: the abstract must be on page 2 and the body of the paper
will begin on page 3.
MACROBUTTON DoFieldClick Type your Paper Title
Introduction
Remember to always indent the first line of a paragraph (use the
tab key). The introduction should be short (2-3 sentences). The
margins, font size, spacing, and font type (italics or plain) are
set in APA format. While you may change the names of the
headings and subheadings, do not change the font.
Part 1: Overview of Company
Introduce the concept and be sure to indent the first line of the
paragraph. Using one of the companies you began developing in
the Unit 2 Individual Project, create a story you wish to shop to
a media outlet. Provide a brief overview of the company.
Describe the media outlet being pitched. Include information on
its target audience. (The media outlet must be real) Part 1 of
the Individual Project should be 1 page in length. Be sure to
cite your resources.
Part 1: Media Outlet and Target Audience
7. Introduce the concept and cite the resources DO NOT use the
exact words… be sure to indent the first line of the paragraph.
Part 2: An Attention-Grabbing Opening
Introduce the concept and be sure to indent the first line of the
paragraph. Part 2 of the Individual Project should be 2 1/2
pages in length.
Part 2: The Hook
Introduce the concept and be sure to indent the first line of the
paragraph.
Part 2: Background Information Supporting The Pitch
Introduce the concept and be sure to indent the first line of the
paragraph.
Part 2: Support Materials
Introduce the concept and be sure to indent the first line of the
paragraph.
Part 2: The Action Step
Introduce the concept and be sure to indent the first line of the
paragraph.
Part 3: Describe your Follow-up Plan
8. Introduce the concept and be sure to indent the first line of the
paragraph.
Part 3: Discuss the Special Considerations for Pitching a
Blogger.
Introduce the concept and cite the resources DO NOT use the
exact words… be sure to indent the first line of the paragraph.
This section of the paper must contain research - which means
that a citation must be included in the section (Last name, year).
The punctuation goes after the citation not at the end of the
sentence. If no author is stated: (Short Title of Article, year).
The punctuation goes after the citation not at the end of the
sentence. Part 3 of the Individual Project should be 1 1/2
pages in length. Be sure to cite your resources.
Conclusion
Add some concluding remarks-can be a sentence or two.
References
NOTE: The reference list starts on a new page after your
conclusion.