Company Name: Heng Yuan Xiang Hyx

Executive Summary

Our company Heng Yuan Xiang (HYX) founded in 1927, is China’s largest textile producer and one of the largest textile companies in the world. With good reputation and brand recognition, HYX is growing globally. In Canada, more and more new Chinese immigrants are coming with the influence of stable immigration policies, and positive economic forecast. As a result, the demanding of good quality wool clothes such as jumpers, sweater, jacket, coats and cardigans is growing. Based on the necessary research on the industry and market, we are offering international marketing plan for entering into Canadian market via both physical presence and e-marketing. Compared with Tommy Hilfiger, Zara, America Eagle, Polo who are our main competitors, we provide high quality with thermal future and fashionable designing wool products. We are particularly proud of our core competences. Firstly, the quality of our products is very outstanding. We use organic wool to pursue warmness and fashion to our customers.

Secondly, the price is reasonable. We optimize our supply chain to seek for the best price for our consumers. Thirdly, we provide a very distinguishing customer service to obtain and maintain customer loyalty, including call center, online communication, our own App, executive membership service. To achieve our goal as one of the most recognizable clothing brand in Canada, the specific marketing plan is presented here. Description of product or serviceHeng Yuan Xiang (HYX) is a well-known trademark, including knitting, apparel, home textiles, and embroidery floss for the integrated enterprise. It has the alliance of more than 100 factories in China has more than 600 distributions, distributors, and over 5,000 sales outlets in 2007, the annual sales reached 5 billion Yuan (RMB). The Group is the largest company in China, or even The wool products of HYX is famous for high quality. It is natural, soft, safe, and renewable. The competition from cheaper synthetic fibers, often fossil-fuel-based, which cannot possible meet the ecofriendly costumers’ demands. As one of the most effective natural forms of all-weather protection fabric, especially for cold weather, wool clothing is popular all over the world.

Giving the long winter in most areas of Canada, the wool products’ benefits would match the needs perfectly. Wool products can provide numerous benefits, which make it a more comfortable, durable, and fashionable choice:

• Wool retains an ideal balance of moisture (regardless of how much or little water is exposed). In fact, wool can soak up to as much as 30% of its weight in moisture without feeling wet.
• Wool creates a naturally anti-microbial environment to prevent mold, mildew, and other undesirable things from ever destroying an otherwise luxurious fabric.
• Wool products are dust-mites unfriendly. According to Woolrevolution. com, Dust mites are the major cause of allergy and asthma suffering.
• Wool fibre is durable and flexible. Wool clothing can be bent back and forth up to 20,000 times before it will eventually snap. To compare, the same cotton fibre can only be bent about 3,000 times before the same happens.
• From the view of environment, wool is an entirely sustainable resource that requires no harm to animal or plant life. During the production, the use of any refinement or treatment chemicals is less than other fabric if anything.

To obtain success in Canadian market, it is advised that our products to be mortified. T design and the size of our products will adapt to the new markets to seek satisfaction. First, we are going to add comparative advantage to this products by using some classic prints and patterns such as argyle, chevron, herringbone, hounds tooth, scales, liberty, and we are looking for new stripes design works which is trending now. We are also seeking for some florals options for female customers who potentially domain 2/3 of wool products market. Second, the size of our products will be optimized, as the average size in Canadian market is larger than Asian market.

For instance, we will put size 4 as the standard size in Canadian market and ask it to be the size for demonstration. The number of stock will be 1/3 size 4 and 2/3 of the size 2,6 and larger than 6. The logistics scales will also keep the same segments. The labelling of our products should follow the regulation carefully without creating any confession. Third, we are going to provide better customer service. More staff will be recruited in the call centre located in Vancouver; they will also work on the online chatting. There will be an IT team to update and keep our shopping App working smoothly so that customers can track their order easily.

Rationale for Selection of country and market

We are using Licensing market entry strategy for expanding our company’s clothing in Canada.

There are a lot of Chinese families live in Canada. As a result, the demand of wool clothes such as jumpers and cardigans. So, by expanding our company in Canada Chinese immigrants will able to complete their choices as well as we will earn up to large extent. Besides this there are a lot of things that make Canada an appropriate market to enter as a wool clothing retailer, those are following:

• Firstly, Canada has huge rate of economy which helps in the company growth. I studied that Canada has the 10th(nominal) or 15th-largest(PPP) economy in the world (measured in US dollars at market exchange rates), is one of the world's wealthiest nations, and is a member of the Organization for Economic Co-operation and Development (OECD) and Group of Seven (G7).
• Secondly, there are different weather conditions in Canada which makes the people to wear different kinds of clothing because sometimes the weather is so extreme at that time people has to wear warm stuff. As we have shawls which complete their needs at extreme weather. So, in simple words customers in Canada are willing to accept our product.
• Besides this Canada is a multicultural country as like India which is also a benefit for our product or service.
• Moreover, there are very loss tariff rates in Canada which also increase the earning of our company.
• Last but not the least as we are doing a modification of online in our service.

So, this modification gives us a benefit as people in Canada has very hectic schedule so they can do online shopping to save their time as well as increase our profit up to large extent. So above all the benefits make us realize that Canada is a best market target to enter for expanding our clothing business in Canada. Market entry strategyAs our company’s goal is to increase the market share as well as my company does not require large profits from international trade.

So, keeping this objective in mind licensing is a suitable market entry strategy for our company to enter in the target market.

Licensing: -Licensing is an exchange related market passage technique. It includes an organization (known as the licensor) conceding consent to an organization in another nation to utilize its protected innovation for a characterized day and age. The licensed innovation can incorporate protected assembling forms, trademarked items, copyrights and specialized help. As an end-result of this authorization, the licensor requests an expense from the organization it has allowed consent to (the licensee) and occasional sovereignty instalments.

Advantages and disadvantages: -Licensing is an exceptionally appealing technique for entering an objective market if an organization has significant protected innovation. It includes insignificant beginning expenses and furnishes organizations with customary salary from abroad.

Advantages:-

• It empowers an organization to enter a market that has limitations on remote organizations.
• The licensor organization profits by the licensee organization's neighbourhood advertise learning.
• The licensing is not tied up in foreign operations.
• The licensor company has the option to expand into the market further by investing in the licensee company at a later date.

The licensor company can move into several markets at one time.

Disadvantages:

• Entry into the objective market is constrained.
• The terms of the permit must be observed over the lifetime of the assention, and requirement may wind up noticeably important.
• The licensee organization may utilize the protected innovation gave to end up plainly a contender organization.
• Intensive research and arranging is required to recognize the best licensee and build up a gainful permitting assention.

Conditions required for Licensing:-

• Punctuality is highly regarded. Give importance to each other’s time. Canadians value your time just as much they value theirs. Avoid being late.
• Refrain from eating while walking in public. It is inappropriate as viewed by the Canadians. Stop by a restaurant, or a park, or anywhere you can finish your food while seated.
• Avoid being too familiar or being too touchy. Canadians are more reserved and polite, and really takes etiquette seriously. Observing personal space is highly important.
• Smoking has been banned in most public areas in Canada, so avoid smoking in public areas.
• Importation of firearms, endangered animals, explosives, is strictly prohibited.
• Unusual things in Canada
• Milk by the Bag – Who would drink milk in bags? Yes, you are right! Canadians do! Milk by the bags have been a practice in Canada ever since 1960s. Drinking milk in bags is actually popular in cities like Ontario, Quebec, and Maritimes.
• Abundance of Maple syrup. Canada is known to have abundance in maple trees and maple syrup. In fact, Quebec – one of the cities in Canada, is the largest producer of maple syrup in North America. Quebec is providing 75% of the world’s maple syrup.
• Canadians love ketchup flavored chips. They have been patronizing ketchup flavored chips for decades already.
• Canadians followed some aspects of British spelling. For instance, Canadians use the word “zed” to describe the last letter of the alphabet. They keep the “U” in words like honour, and colour.

Strengths: These are internal factors that provide a company with a competitive advantage. Strengths might be a reputation for quality, a patented process, a brand name or the ability to charge a low price for a good or service. So, our strengths are:

• Organizations with a vital objective of expanding piece of the pie ought to consider authorizing on the off chance that they have an exclusive item that can be produced effortlessly at an outside area.
• Licensing gives a chance to quickly build the deals volume of an item. Be that as it may, this expansion does not bring about substantial benefits since returns are constrained to a rate of every item unit sold.
• Organizations that desire to venture into at least one markets with insignificant hazard and duty will find that permitting may be the best market section system. The abroad licensee is in charge of all dangers and costs required with generation, conveyance and showcasing. Be that as it may, the permitting understanding must be observed and upheld if fundamental and it won't be workable for the organization to pull back from the market quickly.
• Licensing won't be appropriate if the organization can't adapt to the hazard that its licensed innovation will be lost or that it may build levels of rivalry later on. While using licensing strategy we have to also go through SWOT analysis of our company.

Weaknesses: These are internal factors that make a company less likely to succeed in a market. Weaknesses can include lack of access to resources, a poor distribution network, a negative reputation or lack of patent protection. so my weaknesses are: -

• We have a well-known product as our clothing is famous in all over china.
• Secondly, we have wide variety of stuff to offer to the customers.

Opportunities: These are external opportunities for growth and enhanced profits in the external environment. They can include a new customer need, the removal of trade barriers or the arrival of new technology in a market. so opportunities are: -

• As my company does not do business in overseas so we have no any idea or experience regarding foreign business.
• Language problems may be occurred.

Threats: These are external events or factors in the market environment that pose a threat to the company. They can include a change in customer preferences, new trade regulations and changing economic conditions. So, the risks which I have to face: -

• There are very less tariff rates in Canada.
• Different weather
• Besides this economy rate gives us a lot of opportunities to enter in the target market.

Risk Management:-

Legal/political/cultural impact:

• The Company may have the risk of business losses from theft of intellectual property. That is the only threat which we have to deal.
• The Company must have the capacity to stay in the exchanging relationship for a set timeframe. Sometimes the relation does not work out.

So that may create a barrier while doing licensing. Rationale for pricing and promotional mechanismsSuccessful organizations have broad information of their clients and their rivals. Market research is the way toward social occasion data which will make you more mindful of how the general population you would like to pitch to will respond to your present or potential items and administrations. Regardless of whether you know about it or not, as an entrepreneur you direct market research constantly. When you converse with clients about your business or look at the costs of your rivals you are directing market research. Formalizing the procedure can create an abundance of data about your items and administrations, your clients and the commercial centre you work in. The level of multifaceted nature utilized as a part of your market research effort is dependent upon you, as market research can cover a wide range of exercises. You can attempt basic exercises that should be possible all alone, for example, making a short consumer loyalty poll or concentrate statistic information for your zone, or embrace complex ones that require help from an expert market research firm. Despite the extent of your market research spending plan, the time you have accessible or your level of involvement, some type of market research is conceivable and it can help you to enhance your business choices. The objective of doing marketing research is to furnish yourself with the data you have to settle on educated business choices about start-up, development, development and the 4 P's:

Product — Improve your item or administration in light of discoveries about what your clients truly need and need. Concentrate on things like capacity, appearance and client administration or guarantees.

Price — Set a cost in view of well-known net revenues, contenders' costs, financing choices or the value a client will pay.

Placement — Decide where to set up and how to disperse an item. Look at the attributes of various areas and the estimation of purposes of offer (retail, discount, on the web).

Promotion — Figure out how to best achieve specific market portions (teenagers, families, understudies, experts, and so on. ) in regions of publicizing and exposure, web-based social networking, and marking. Some portion of being set up with market research is maintaining a strategic distance from unsavoury amazements. Instinct and experience can be useful on occasion, yet research and actualities frequently portray your market. By directing exploration all the time, you can stay aware of the flow of the economy and demography. You can likewise change in accordance with new directions and innovative leaps forward.

Market research can help us: Understand our clients and their inclinations (4 P's)

• Language barriers: -The language barrier is basically as our HYX company works in china. Translating you're marketing and operational materials into the nearby dialect may appear to be straightforward, yet in the event that the maxims that describe your idea or promoting methodology aren't effectively communicated in the host dialect, you could wind up stuck in an unfortunate situation. So, for staple clothing this would be the barrier.
• Marketing Barriers: - Numerous Canadian organizations have been disillusioned to find that their triumphant advertising approaches crash and burn in different societies. So, that thinking may be the barrier for staple clothing.
• Access to Raw Materials and Human Resources: - In the event that our organization requires exceptionally prepared PC experts, you ought to ensure that sufficiently gifted work is accessible in the market you plan to enter. What's more, we'll need to ensure we'll have prepared access to all the basic materials, gear, and supplies our business should support effective operations.
• Government Barriers: - A few governments are not open to outside speculation or to specific sorts of dispersion connections. Before we make business duties in any remote nation, look at its history of confiscation, government confinements, levies and impediments on cash repatriation.

Rationale for Logistics Mechanisms

The shipping method of our company Heng Yuan Xiang (HYX) will use ocean. There are couple reasons as follow:· It is international shipping; the distance is very far.

• Profile our clients (area, age, sex, wage level, and so on. )
• Create more viable showcasing efforts
• Find the best business area Identify chances to develop and increment benefits
• Recognize changes sought after · Offer new items or administrations for the new request
• Find new markets inside and outside of Canada Recognize and plan for industry and monetary movements
• Shift stock, cost and staff levels as requiredMonitor the opposition in your market · Identify contenders
• Get data on how our rivals work
• Learn how clients contrast us and our rivals Mitigate hazard in our business choices
• Use data, not only instinct, to drive our business choices

In this case, FOB will be considered as the best term, according to FITT (2012), FOB means seller clears the goods for export and delivers them when they are onboard the vessel at the named port of shipment, and buyer assumes all risks/cost for goods from this moment forward. So, through FOB, the parent company of HYX in China and the subsidiary one in Canada will share the balanced risk and both take responsible. In terms of the outside resources, HYX will focus on leather. As the China’s largest textile producer and one of the largest textile companies in the world, wool product is always the main business to HYX, but according to so many new Chinese immigrants are coming to Canada, our company would like to create some new products which have good quality about wool, such as jumpers, sweater, jacket, coats and cardigans. In this case, we will build partnership with Warkov-Safeer Leather Ltd. , which its head office is located in Winnipeg, and its product line includes leathers, threads, needles, dyes, heels, heel lifts, soles, insoles, cements, rubber sheets, tools, machinery, hardware, etc. ("Warkov-Safeer Leather Ltd. ", 2018). We will make deal with Warkov-Safeer Leather Ltd. , we will buy 10 tones leather in the short term, and in the long term, the order amount for leather will be based on the market demand. The head office for HXY in Canada will be located in Vancouver, and we will open the four physical stores in the outlets of four Canada’s cities which are Vancouver, Calgary, Saskatchewan, and Winnipeg. We will use the warehouse to store the wool and the leather, in this case the warehouse function can be seen as a place for processing deliveries, rather than for storage, and the truck will be the transportation mode for HYX to deliver each city.

There are couple competitors in the market, such as Tommy Hilfiger, Zara, America Eagle, Polo. Compared with them, we provide higher quality with thermal future and fashionable designing wool products; our price is more reasonable which is lower than the market average price, and we provide distinguishing customer service, such as call center, online communication, our own App, and executive membership service. All of them are be determined as the methods used to gain market share and competitive advantage in this market. Conclusion and Action PlanIn conclusion, we firmly believe that Canada is the best country for Heng Yuan Xiang (HYX) to do the business.

According to the research, there are couple reasons as follow:

• The maximum unit load can be at least 200,000 tones or even more on the high sea.
• Bulk handling is excellent.
• Bulk goods that are not time sensitive for delivery. All the wool material will be shipped from Shanghai Yangshan Deep Water Port, which is biggest deep-water port in the world, to Port of Vancouver.