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International Marketing Plan for Anta Sportswear Limited

Tinashe Mambo (b6043481)

Marketing in Global Context 44-602583-D

Introduction

Many Companies internationalize with the goal of increasing their profits and expanding

their market. Internationalizing however has a variety of risks that many firms need to counter

for their product to perform well in the global market (Liu,Wang, Johri, Zhou, and Fan, 2014).

Mostly, the customers in one country may not embrace a product the same way customers from

other countries embrace the same product. Big firms often have offices in many different

countries, however even with the amplification of the internet, smaller business may also extend

their businesses globally. Any firm that internationalizes effectively needs to plan and position

its products accurately in the global market.

The selected country for Anta Sportswear limited to internationalize is Indonesia.

Indonesia may be the perfect country because of the minimal risks of internationalization. The

country has high GDP growth rate, with infrastructural boom expected over the coming years

and also the reduced import tariffs between China and Indonesia (Yu, 2014). Furthermore, China

may be able to access Indonesia through roads, railway and also airway. For Anta Sportswear

limited to internationalize effectively into Indonesia then there has to be well implemented

marketing strategies into Indonesia.

This report aims at explaining the SMART international marketing strategies for Anta

Sportswear limited into Indonesia. Furthermore is to evaluate the best entry mode for Anta

sportswear limited that may give it a competitive advantage over its competitors like Adidas,

Nike and Puma. Moreover, the report dives deep to analyze the best customers to target and the

best market segments. The aim also aims at evaluating the required branding for Anta
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sportswear limited in Indonesia and also understand the culture of Indonesia. The report further

aims at justifying the best marketing mix decisions for the Indonesian market.

SMART Marketing Strategies for Anta Sportswear in Indonesia

SMART international marketing strategy enables firms to set the right objectives for

survival, growth, profitability and branding. For Anta sportswear limited to expand its business

to Indonesia it should ensure that its marketing strategy is specific. Specific marketing goals

outline marketing goals in particular. Specificity emphasizes on the revenue that a firm is aimed

at achieving and how it should popularize its brand (Grewal, Roggeveen, and Nordfält, 2016).

Anta sportswear limited may make goals of increasing their gross profit margin from 49.4% to

60% once they internationalize. The Company may also set the goal of increasing its cash

position from RMB 9.41 billion to double the amount. With the GDP of Indonesia at 1.016

trillion, then Anta sportswear limited may increase the sale of its sportswear by up to 25%. Also,

Anta sportswear limited may also set strategies to increase its customer base against its

competitors Puma, Adidas and Nike.

Anta sportswear limited may also set measurable marketing goals. Anta sportswear

limited may be able to achieve measurable marketing strategies by ensuring that the set

marketing goals can be measured. Measurability comes in whereby the firm has to estimate the

total number of sportswear that it may have to sell every day to Increase its profit margins

(Järvinen, and Karjaluoto, 2015). Also, Anta sportswear limited may need to outline the number

of outlets it may require to open so that it may achieve high profits. Furthermore, Anta

sportswear limited may be required to estimate the number of customers that should visit Anta

sportswear limited shops .Such measures may enable the firm to measure the profit it may gain.
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For effectiveness in international marketing, Anta sportswear limited may ensure that its

marketing strategy is attainable. A firm should set challenging but attainable goals. Attainability

may refer to the possibility of the firm accomplishing the goal (Camilleri, 2018). A firm like

Anta sportswear limited may be required to set a baseline for tracking the data collected in other

firms. This will enable the firm make attainable goals basing from another firm’s performance.

Attainability may also refer to the connection between the goals set and the current market

conditions. Attainable marketing strategies will ensure that Anta sportswear limited can improve

its business performance globally. Attainable marketing strategies are adjustable in line with the

firm’s goals and also can be achieved within the stipulated time. Internationalizing into Indonesia

which is a country with a high GDP growth rate may enable Anta sportswear limited realize its

goal of increasing profit margins to up to 60%.

A realistic marketing strategy may be in line with the prevailing economic condition.

Internationalizing into Indonesia would mean that the prerequisites for businesses are well set. A

firm may not expand its business in a country that encounters political wars and economic

external shocks from time to time (Thomas, 2018). With infrastructural boom and positive

customer preference in Indonesia for sportswear commodity, it would be realistic for the firm to

open outlets in the country because the country may be expecting a boom. Anta sportswear

limited may also make strategic moves of promoting its products in the country because of

increased demand from consumers which may lead to increased production and profitability.

Anta sportswear limited may also enforce timely marketing strategies. Every successful

firm has to be time cautious and should also be specific on the time that it may take to achieve its

goals. Goals may not be achieved if there is no time limit. It is crucial for firms to set time limits

whenever they are working on short term and long term goals. For Anta sportswear limited,
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marketing and selling its product in Indonesia is a long term goal which may also be achieved by

setting short term goals and achieving them during the long duration. Time is a resource that ever

firm has and the success of a firm may be determined by how they utilize their time.

Indonesia being the perfect market for Anta sportswear limited would mean that the firm

may need to work into ensuring that they increase their market share. Furthermore, the firm

should set marketing strategies that are compatible with the new market in Indonesia. This

should be first through analyzing the market structure of Indonesia and realizing the culture and

needs of the people. Implementation of a SMART marketing strategy for Anta sportswear

limited may be the first step into encountering its massive success

Entry Modes for Anta Sportswear into Indonesia

High population in Indonesia may not imply that all business operate efficiently rather it

depends on consumers taste preference and demands. With an increased demand for sportswear

due to changes in lifestyle of those living in urban setting many sportswear firms have found

their way into Indonesia. However, not all sportswear that has outlets there are profitable. In

Indonesia, Adidas remains to be the leading sportswear Company (Siegmann, Merk, and

Knorringa, 2017). The Company has sold its products in the country for a decade; it has been

able to sustain its business by offering quality products and services. The firm has also been able

to acquire a higher market share through providing affordable products for its consumers. In

Indonesia, the market is attracted by production of sporty and cool products that suit the taste of

the consumers. A study shows that in Indonesia, the sportswear market is dominated by the

domestic market due its low prices on products. Anta sportswear limited may therefore need to

adjust its prices according to the Indonesian market. Reebok and Adidas however have
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dominated the Indonesian sportswear market (Ranjan, 2016). The Indonesian domestic firm

called Eagle sportswear however also competes equally with the international firms. As Anta

sportswear limited expand sits business into Indonesia it has to consider, the correct entry mode

to gain a competitive advantage over the existing firms.

Anta sportswear limited may use exporting as an entry mode into Indonesia. Exporting

into Indonesia from China may be easier since the tariffs for Chinese products in Indonesia are

low. During exportation, the firm may face marketing costs, transportation costs and tax tariffs.

Exportation involves the firm selling its products to distributors who later sell the products to the

people (Wei, Zheng, Liu,and Lu, 2014). During exportation, there may be sales representatives

or import distributors. The advantage of exportation as an entry mode is that a firm has better

protection of its trademark, patent and goodwill. Furthermore, the firm may be able to get

accurate feedback from target market. On the other hand, there may be demerits of exportation,

first is that there may be many requirements needed during the process, and second is that there

may be high costs of transportation and marketing. While exportation may be a direct entry into

Indonesia, Anta sportswear limited may use online sales as an entry mode for Indonesia. An

online sale is when a firm markets its products online but still has possession of the product

(Tolstoy, Jonsson, and Sharma, 2016). Online sales may enable a firm to have a direct contact

with customers unlike indirect entry modes. The advantage of online sales is that it is relatively

cheap incurring only the cost of marketing and websites.

Anta sportswear limited may also use licensing to sell its products in Indonesia.

Licensing will involve Anta sportswear to sell its trademark, patent rights and production

techniques to a firm like Eagles sportswear limited in Indonesia. Eagle sportswear limited may in

turn pay a fee for the services from the licensor (Wang, Wang, and Liang, 2016). Licensing may
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be beneficial because Anta sportswear limited may be able to get more return on investment

since it only invests very little amount in the business. However, in relation to other entry modes

it may provide the least income. Also, in case of an incompetent partner, then the firm’s

trademark may be tarnished.

The firm may also implement the use of joint venture to enter the Indonesia sportswear

market. Joint venture includes businesses mixing their resources to sell products and services.

Joint ventures may mostly include a foreign Company joining with a local Company for business

operations ( Hennart, and Slangen, 2015). A firm may choose a joint venture because the local

partner may give them access to distribution channels. Anta sportswear limited may join with

Eagles sportswear which is a local sportswear Company in Indonesia. The major objective of a

firm as it initiates a joint venture is to share technology, for market entry and also to experience

joint product development. The major challenges of such a venture is that there may be conflicts

due to asymmetric new investments, cultural clashes, lack of support from the other firm and

difficulty in splitting the pie.

From the analysis, the best entry mode for Anta sportswear limited into Indonesia is

direct exportation. Exportation of its products may be favorable because products from China to

Indonesia are charged a lower tariff compared to products from other countries. This will reduce

the cost of operations for the firm. Also, in Indonesia, sportswear firms that operate efficiently

and profitably do so because of the affordability of their products. Anta sportswear may thus be

able to charge less money if its cost of operation is low. Exportation may come hand in hand

with online advertising and promotion. The cost of advertising online is low and hence reduces

marketing costs. Also, Indonesia and China are accessible through airway; railway and road

hence ease in transportation.

Target Market for Sportswear in Indonesia

As Anta sportswear limited expands its business into Indonesia, it should target people in

their twenty and thirty years of age. These are people that have middle income and are actively

involved in nation building. Middle aged people in Indonesia are also concerned about their

health and form urban health and fitness trends which lead to many people registering for gym

classes especially in the city of Jakarta. In Indonesia, people that work in offices complains about

the long hours they spend at work (Schlegelmilch, 2016). The young people are a target group

for sportswear since they aim at staying healthy and living longer. Anta sportswear limited may

also target the young people by manufacturing cool and trendy images. Furthermore to satisfy

their customers’ needs, Anta sportswear limited may also work into producing products that are

in line with its customers personalities. Also, in Indonesia sporting activities such as

bodybuilding, yoga and aerobics are also gaining popularity in the cities and therefore, there is

need to sell products in the cities. Anta sportswear limited may also target the internet as an

avenue for selling its products since people have embraced online shopping. Online marketing

may be a good target because there are many people in one platform who are able to view the

product and make orders. The market segmentation for Anta sportswear would therefore be

middle income earning people of ages ranging from twenty to thirty.

Branding of Anta Sportswear Limited

Indonesia is a country with a variety of sportswear Companies, Anta sportswear limited

may therefore be obligated into creating a unique brand. Branding a Company would mean that

the product becomes a household product to the customers and that they remain loyal to it

(Govers, and Go, 2016). Anta sportswear limited should continuously produce quality product.
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Customers love quality products and will always go back for more products. A study shows that

customers do not prioritize quantity rather they prefer quality. Also, Anta sportswear limited

should undertake aggressive advertising of its products in Indonesia. Advertisements aid in

making the product known to those who do not know it. Furthermore, advertising communicates

to customers on the merits of purchasing the product. Offering customer service also enhances

customer loyalty. Customers not only purchase products but also the firm as a whole. When

customers are treated with respect they may always purchase the same brand.

Furthermore, Anta sportswear limited may take part in corporate social responsibility and

in the production of green products. Corporate social responsibility convinces your customers

that you care about the rest of the stakeholders including customers, neighbors’ suppliers and

investors. Customers will always want to associate with a firm that has interest on the rest of the

people and hence enhance customer loyalty. The firm should practice the production of green

products. Green products are those that do not deteriorate the environment. Many customers are

environmental conscious and would not want a foreign firm degrading their environs.

Marketing Mix

In relation to reaching the target customers who are composed of middle aged people

with middle incomes, Anta sportswear limited may at achieving a variety of marketing strategies.

First, the firm should work to ensure that it products quality products that are of different variety.

Also, the product should be well designed to meet the needs of its customers (Huang, and

Sarigöllü, 2014). Also, the product manufactured should enhance a sustainable environment for

its stakeholders (Charter, 2017). The price of the product should be affordable and realistic. Also,

the firm should work into ensuring that it does not sell its products on credit terms. Moreover,
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the firm should make firm strategies on location. The location of sales is vital since it will later

reflect in the number of items sold. The firm should ensure that it locates its outlets where there

are minimal logistics. The location should also be such that it targets consumers. Promotion may

also be a marketing strategy of reaching customers. Promoting Products may include personal

selling whereby the firm may employ sales people to personally sell to individuals. Also, the

firm may conduct advertisements on the internet, on billboards and even through sales promotion

(Zhou, Kim, Zhang, Liu, Jin, Jin, and Liu, 2017).

In relation to achieving the required branding of the business, the firm may be involved in

promotion. Aggressive promotions may be highly recommendable as they ensure that the firm’s

products are made known to the people. For Anta sportswear limited to be a recognized brand it

should increase promotions in platforms with high populations such as the internet on various

websites. Also, strategic locations of major outlets of the product are necessary. Anta sportswear

limited may be located in places with gyms and where the population is aged between twenty

and thirty. Location should be strategic while ensuring that transport costs is reduced and clients

can easily access the outlets (Verhetsel, Kessels, Goos, Zijlstra, Blomme, and Cant, 2015). To

improve on the branding of the product, the firm should produce quality products. The firm

should also provide calculated services to its customers to enhance loyalty.

Conclusion

This report explains Anta sportswear limited a s a firm that expands its business

operations into Indonesia. The report estimates a set of SMART of objectives that Anta

sportswear may take to ensure that it improves its scale of operations. The marketing objectives

that the firm should implement should be specific, measurable, attainable, realistic and timely.
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While following SMART objectives, the firm may draw a clear line on what goals it may

achieve and after what period of time. The report further studies the various entry modes that

Anta sportswear may use to expand into Indonesia. The various entry modes discussed include

licensing, joint venture and exportation. The preferred entry mode is exportation because of the

reduced tariffs between China and Indonesia. The report further explains about the esteemed

target market in Indonesia which comprises of a population aged between twenty and thirty with

middle incomes. Furthermore, the report estimates the various strategies that the firm may take to

ensure that they uphold a brand. The report concluded that the firm should undertake advertising

and promotion to make its products known. The report further concludes that the firm should

adopt marketing mix strategies such as undertaking promotions, affordable pricing of the product

and ensuring that it locates its outlets strategically for its target customers.
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