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Essay Subject: Analyzes prospect of introducing software utility tool into city-state's market. Competition, price, promotion, economics. Chart.... More...

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Paper Abstract: Analyzes prospect of introducing software utility tool into city-state's market. Competition, price, promotion, economics. Chart. Paper Introduction: Introduction Innovations in transportation and communications during the twentieth century have resulted in the ability of goods and services to move among nations with greater ease than at any other time in history. International business is no longer the exclusive realm of the large multinational corporation; small businesses are creating marketing niches for themselves in particular product or service areas. When considering international marketing, companies must take into account their own internal structure, the role of the governments of the countries considered, and the way in which the company would operate in the foreign nation (whether directly, as part of a joint venture, or through some licensing effort). Political situations must be considered, and the labor situation in the foreign country (as well a Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. Wash, DC: U.S. The majorChinese daily is Lian He Zao Bao. Depending on the type of product, importer markups rangefrom 2 -4 percent, while retail markups are often more than 1 percent.Industrial goods are brought in by stocking distributors, who add at least2 percent before sale to end users, or by agents, whose commissionsgenerally run approximately seven to ten percent. This productenables users to effectively manage their financial transactions from theirpersonal computer, but is sophisticated enough for small businesses to usesuccessfully. The Target Market Singapore is a small, prosperous city-state which is also one of theworld's busiest ports. The nameshould be retained since many of the decision makers will already befamiliar with Quicken through conversations with colleagues overseas, andthe packaging of Quicken itself should also be retained. Thesteady strong performance of the Singapore dollar, which keeps the price ofimports low, has been Singapore's main tool for controlling inflation.This trend should work to the benefit of those companies seeking to importgoods to Singapore. The direct marketing industry in Singapore began about 1 years agoand now includes direct mail, telemarketing and television sales. The presence of Intuit on the Web also indicates tothe international market that Intuit is a significant presence in thecyberspace community and that the company is committed to a high level ofcustomer service (since it can be accessed through the Web). Despite Singapore's recent exceptional economic expansion, inflationhas remained low. Internationalbusiness is no longer the exclusive realm of the large multinationalcorporation; small businesses are creating marketing niches for themselvesin particular product or service areas. It should beremembered that this analysis does not take into account the lucrativeupgrade market since Intuit has a strong record of providing improvement totheir products on a regular basis (Carey 54). This,in combination with Internet marketing, should help the company quicklyestablish a profitable and long-term presence in the Singapore market. In addition to trade, Singapore has establisheditself as an important manufacturing base, specializing in higher value-added production, as well as a financial center for the region as a whole(Country Commercial Guide 6). USFCS Singapore offers a widerange of business programs and has an excellent record of success inintroducing American firms to the market. The goal of the printmedia advertising will be to promote retail sales while the goal of directmarketing will be to complete sales through that channel. Typical products sold through directmarketing in Singapore include consumer goods such as gifts, stationery,fitness equipment, household appliances, bags and accessories. Singapore's distribution and sales channels are simple and direct.Most consumer goods are imported by stocking distributors who resell toretailers. Price The price for Quicken should remain steady throughout the world sincethe product is available over the World Wide Web (through Intuit's homepage at www.intuit.com) and since customers in one part of the world wouldbe quick to take advantage of discounts offered in other parts of theworld. These markups will varywidely, depending on the product and the contractual relationship inquestion (Country Commercial Guide 1 ). The first year's unit sales are estimated at 5 , ; second year salesare estimated at 1 , , third through fifth year sales at 75, (totalling 375, at the end of five years). The majorEnglish-language daily newspapers are the Straits Times and the BusinessTimes. Directmarketing through television began two years ago but is growing very fast;a product such as Quicken, which can be visually demonstrated, is ideal fortelevision direct marketing. These areprimary selling factors which can be as influential as price in some cases(Country Commercial Guide 18). The company hasalready demonstrated that it is able to dominate the markets where itcompetes, even against strong competition from Peachtree and evenMicrosoft, and it has an international presence already through itsparticipation on the World Wide Web and other international marketing. The Web givesinternational access to anyone, and also reduces promotional costs withinSingapore. Most American companies that use US& Foreign Commercial Service (USFCS) business programs in Singapore findseveral interested agents or distributors. English is the official language ofSingapore (although Mandarin, Malay and Tamil are also spoken), andsoftware adaptations for the currency adaptations are minor. Of this market,Intuit should be able to capture a dominant share (6 to 7 percent) basedon its performance elsewhere in the world ("Checkfree" 2 ). In the Singapore environment, wheretelecommunications is rapidly advancing, it may not be feasible for Quickento expect to have modem access immediately available to all of itspotential users, but access should be available within a short period whereit does not currently exist. Its population of 3 million has seen livingstandards increase steadily in recent years; this increase has beenoverseen and guided by the government's very successful export-driveneconomic strategy. In addition to a physical presence in Singapore, Intuit also marketsQuicken over the World Wide Web, which should also continue. For the purposes of this analysis, upgrades are notincluded, and the following chart is in thousands of dollars. This type of distribution keeps distribution costs to a minimumsince software can be sent directly to the customer without additionalpersonnel required. All of these media should be used tobuild support for Quicken in Singapore. goods and services. An average selling price of$35 is anticipated. At the same time, the fact that Singaporeis already a hub for international business increases the likelihood thatconsumers are already familiar with the Quicken product or the Intuitcompany name. Individuals whoconstitute the primary target market for Quicken are likely to have accessto more than one computer, which increases the likelihood that they willpurchase more than one product. Manufacturing and financial/business services continue to be the mostimportant sectors of the Singapore economy, making up 26.9 percent and 29.5percent of GDP respectively. Financial Statements and Budgets With a total population of three million, the estimated market for aproduct such as Quicken in Singapore is deemed to be 5 , units (anoptimistic projection which reflects the access of individuals to personaland laptop computers and the likelihood that individuals will have accessto more than one microcomputer on which to run Quicken). Product The product proposed for the Singapore market is a personal computersoftware utility for financial management, namely, Quicken. The first quarter of 1995 sawinflation drop back to 2.5 percent (Country Commercial Guide 7). When considering internationalmarketing, companies must take into account their own internal structure,the role of the governments of the countries considered, and the way inwhich the company would operate in the foreign nation (whether directly, aspart of a joint venture, or through some licensing effort). Singapore represents a particularly attractive market because it is anemerging market with a strong financial infrastructure and a populationwhich is already familiar with computer products. There are approximately 2 creativeconsultants in Singapore, each employing 1 -2 employees, who provideadvice, market research, mailing lists, printing and mailing services.Five companies provide telemarketing services and five others are involvedin direct marketing through television. Given the rapidly expanding economicinfrastructure, a product such as Quicken should be able to expect strongperformance in this market. In 1994, inflation rose slightly, from 2.4 percent in1993 to 3.1 percent, partly as a result of the 3 percent Goods and ServicesTax (GST) introduced in April 1994. "Easy Money." PC Magazine (May 6, 1997): 2 1-2 6. Intuit should be able to find partners readily available to market aproduct which already has a strong track record elsewhere in the world.Singapore should not require significant changes to the software to besuccessful, and it can be marketed through traditional retail channels aswell as through direct marketing targeting business professionals. The availabilityof the product on CD-ROM makes it an attractive direct mail candidate, andthat technique has been used successfully elsewhere. Competition to Quicken comes from Microsoft in the form of MicrosoftMoney and Microsoft Profit, but there is no reason to expect that Quickencannot gain access to the market in Singapore much as it has elsewhere.Quicken has a considerable market share and should not encounter manydifficulties in entering and dominating the Singapore market. Politicalsituations must be considered, and the labor situation in the foreigncountry (as well as in the domestic country) must also be taken intoaccount. Summary/Recommendations It is recommended that Intuit enter the Singapore market in order tosell its Quicken personal finance software package. In addition,few adaptations will be required to the product in order to make itappropriate for the Singapore market. Dept. The port isthe world's second busiest in terms of cargo tonnage and is key to itsgrowing prosperity and continued economic health. Per capita GDP reached US $16,7 in 1994 and qualityof life in Singapore has reached developed country standards. Items thatcost less than US$5 are popular and prices rarely exceed US$2 per item,a qualification which Quicken (priced at $6 retail for the deluxe version)should meet. Works CitedCarey, Theresa W. In this way,Quicken can take advantage of the promotion in which it has already engagedand the brand image it has already built (Yakal 2 1). Distribution Many American exporters use agents or distributors to serve theSingapore market and other markets in the rest of Southeast Asia. |Income Statement |FY1 |FY2 |FY3 |FY4 |FY5 ||Revenues |175 |35 |2625 |2625 |2625 ||COGS |-1138 |-2275 |-17 6 |-17 6 |-17 6 ||Gross Profit |612 |1225 |919 |919 |919 | At the end of the five year period, Quicken should dominate the marketand also have given Intuit a strong return on its investment. Because of its port,Singapore acts both as the trading and distribution hub for the expandingeconomies of Southeast Asia, as well as the major point linking the regionto the rest of the world. These growth sectors are good indicatorsthat computer software utilities which can increase the productivity ofbusiness in these sectors should have strong potential for success inSingapore (Country Commercial Guide 8). Introduction Innovations in transportation and communications during the twentiethcentury have resulted in the ability of goods and services to move amongnations with greater ease than at any other time in history. The construction sector, which has benefittedfrom a sharp rise in private sector demand, registered the fastest sectoralgrowth (15.7 percent) for 1994. Findingprospective partners is relatively easy since Singapore firms areaggressive when it comes to representing new products and usually respondenthusiastically to new opportunities. "QuickBooks Pro Integrates Time-Billing and Cost Estimates." PC Magazine (June 11, 1996): 54."Checkfree Eyes Quickbooks for Payment System." American Banker (October 14, 1996): 2 .Country Commercial Guide: Singapore. Some goods are imported directly for sale in the importer's ownretail outlets. This research examines the prospect of introducing a computersoftware utility tool into the Singapore market. of State, 1996.Yakal, Kathy. The leading business magazine is Singapore Business. Promotion Promotion of Quicken within Singapore will depend on advertising inprint media targeting professional individuals (who are likely to haveaccess to a personal computer) and direct marketing. There are many specialized trade magazines in Singapore and many tradefairs that can be used to promote U.S. There are numerous computercompanies, including IBM and Tandem and some local companies, that providesoftware to aid in direct marketing. Although Quicken can be integrated with a modem to enabledial-up access to financial institutions and on-line services, it can alsobe used as a standalone product. In addition, although Quicken will be sold through retailers, whotraditionally bargain in the Singapore market, large retailers of the sortwho would handle the Quicken product do not typically engage in bargaining,so this type of discounting should not be an issue (Country CommercialGuide 12). 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