MKT 631 Project

International Marketing
Project on Walton
Motorbike in Germany
Submitted By
Syed Mahabub Islam
Kamrul Hasan Shaon
MKT 631
Submitted to
Gloria Wadsworth
May 4, 2017
Running head: International Marketing of Walton
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Acknowledgements
We acknowledge our heartfelt gratitude to everyone who have helped us with our research
work. Especially, we would like to thank our course instructor, Gloria Wadsworth for accepting
our topic and giving us her complete guidance, vital encouragement, support, assistance, time,
and patience. We feel to thank our friends and family for constant reminders and much needed
motivation. To us, this task set was a challenging one, but we managed to overcome all the
hurdles with each others help and suggestions. It was truly a wonderful experience to work with
each other and we hope to appreciate these good memories. Finally, we would like to thank all
the writers, professors, journalists, and others whose findings, writings, and works have helped
us the compilation of this term paper.
Abstract
Our topic of discussion in this report is export in Germany of Walton motorbikes. Therefore,
country comparison to target market is focused on the research paper. In addition, exporting
motorbikes into Germany and Hofstedes five dimensions for the social factors are described in
details followed by SWOT comparison. Also, the recommendation and ethical consideration is
given.
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TABLE OF CONTENTS Page Number
Part 1 Introduction (Offering Description and Desired Positioning) 04
Part 2 - Research Methodology 04
Part 3 - Situational Analysis(Company Match): 05
Company Analysis 05
Nature of Demand 08
Product Category Stage of Product Life Cycle 10
Competitor Analysis 10
Part 4 Marketing Mix, Strategy and Techniques (Pricing, Distribution, Promotion) 12
Part 5- Entry Strategy 15
Part 6- Marketing 4 Ps 16
Part 7 Ethical Consideration 20
Part 8 Recommendation (Implementation and Control) 20
Part 9- Conclusion 21
Part 10- Bibliography 22
Appendix 1(Graphs) 26
Appendix 2 (Hofstede) 29
Appendix 3 (SWOT) 32
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Introduction: (Part- 1)
Walton is a one of the few leading companies in Bangladesh, focusing on the area of
electronics. It has been creating and delivering products of excellent quality that has enable
people to enjoy more entertainment and comfort. In this spirit, Walton has been encouraging its
employees to ensure quality products and service. Most of the all kinds of products in Walton
Company are able to create customer with other reputed companies in the world. Walton Motor
Bike is one of them. Walton Motor Bike is a big name in the local motorcycle industry of our
country and it is comprehensively and successfully with other existing bike company in the
world. Many surveys suggested that more than one thousand Walton motorbikes sold in all over
the country. We can export it in any countries in the world because of its good quality. Germany
is very much reputed for making good transportation for customers. We can compete with their
country because of the quality for Walton motorbike. In German, the number of the user of motor
bike is very noticeable. The customers in this country demands about the quality of products.
They give the priority of this. In that case, Walton Motor bike will get the priority to them.
Research Methodology: (PART- 2)
Secondary data are the major resource of our report. Our report is mainly descriptive, so we
are using secondary data for referencing. There were other ways to collect information and it
helped to have clear idea about our topic. There were several medium from which we collected
information. Such as:
Journals
Webpages
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Company Website
Company annual report
Newspaper
We have mainly used information from websites, journals, newspaper etc. for our report. We
have used proper citations and paraphrasing for all the sources we have used.
Situational Analysis: (Part- 3)
Walton is one of the popular organizations of Bangladesh. Walton had entered into electronics
business in year 1994 with manufacturing of electric powered and electronic items. Slowly but
surely Walton expanded its procedure in various other electronics field products such as
television sets, refrigerators, mobiles, motorcycle, air conditioner, generator, home product,
electric appliance and so forth and that provide the foundation for practically every aspect of
modern life.
Walton is picking up rural demands and low production cost than the international competitors.
Walton is located in the capital city of Bangladesh. This will help to it transport the goods easily
to its desired location. The price, quality and availability will make the existing and prospective
customers to choose Walton over the competitors. Local reputation will play an essential role in
the international market place is promoted well.
Market Analysis (Country/Offering Match)
Comparison of Political/Legal Environments and Pricing
Bangladesh is a parliamentary democracy largely influenced by the British Parliamentary
system. Whereas, Germanys political system is Federal Republic which is a form of government
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with a federal state which has a constitution and self-governing subunits. According to Toytown
Germany (2009), an English Language Website Community for Germany importing motor cycle
in the country would less expensive compared to the motorcycles made in Germany. Looking at
the above information our company decided to export only the parts to Germany. This is because
it would cost less as rate of tax will be much lower. WALTON will be able to charge lower price
for the motorcycles in the German market.
Some of the factors that are considered for the political and legal environments
Political Stability
Under the leadership of President Joachim Gauck and the Prime Minister Angela Merkel,
Germany is the most politically sound country among the other European Union Nations.
Considering the political stability of Germany, other financial institution such as WTO, IMF, EU
has maintained a very good relationship with Germany. This has lead us to believe that it would
not be very risky to set up our business operations in Germany. The country has a very lower
corruption rate and this makes it very easy for Walton to enter the country with less complication
and very little chance of facing loss. Whereas in comparison Bangladesh is suffering from
political instability for the past 7 years.
Tax Regulation
Walton must consider tax regulation of Germany very seriously, as the company is going to
export its product from non-European union states and could be subject to high tax regulations.
The import turnover tax rate (including value-added tax) is 19 percent and have to be paid to the
customs authority. For our product import tax rate will be lower as we import our parts from
Japan and to Germany. Thus, importing of raw materials from Japan will not be needed when we
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establish our firm in Germany as most of the raw materials to construct our product will already
be available in Germany.
Trade Regulations
Before entering the German market, we will have to carry out an extensive research on the
dos and don'ts of trading with Germany. It can be difficult to comprehend some of the
regulations so it is very important to do a thorough read of the rules they have set up before
going into trade with the German economy.
Regulatory Environment
Germany is the most attractive FDI destination among other European union nations. Hence,
producing Walton motorcycles in Germany is a very good idea. Moreover, Germany offers a very
low tax rate which very attractive for the foreign companies. The German government has
reformed the tax system entirely to make the country attractive place for FDI and other
multinational companies coming to Germany. Another good reason behind entering Germany is
Lower corporate tax rate, is one of the major attractions for Walton to do foreign investment.
Stable wage rate and Higher productivity rate of Germany makes it an attractive investment
location. Labor cost increases remains the lowest in Europe in recent years, with a small annual
increase rate of 1.6 percent. Germany also have a very flexible working practices such as fixed-
term contracts, shift systems, and 24/7 operating permits etc. makes a suitable investment
location for Walton to produce its motorcycles.
Economic Environment
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Germany has a Social Market economy. In terms of nominal Gross Domestic Profit (GDP)
Germany has the 4th largest Economy the world and the 5th largest according to Purchasing
Power Parity (PPP). Despite the fact that Germany was a latecomer in Europe's Industrial
Revolution during the 19th century but the Germans quickly caught up and by 1910 became one
of the world's leaders in industrial development.
The favorable Economic environmental factors of Germany for Walton are summarized in the
Appendix 1.
Social and Cultural Environment is explained by the Hofstedes 5 dimension is given in
Appendix 2.
Nature of demand
Motorbikes can be segmented using demographic segmentation. Bikes are brought by people
of certain age group, gender and income group as well. For Walton, the basic targeted customers
will be middle to low income young people. Germany has about 3 giants in the motorcycle
industry and Walton will not be directly competing with these rather try to compete with the
other exported bikes in the country and try to create a niche market of its own.
The German people in terms of their purchase are very strict about the quality and perfection.
They do not compliment a product unless they are completely satisfied using it. Catering the
German customers mean the product need to be at the best of quality. Even if they find the
slightest of fault in a product it can be very difficult for Walton to gain that confidence back in
the customers but if they find the product they can prove be very loyal customers. As the
Germans look for perfection in their purchase the time spent in decision making tends to be long
and even more for a product like motorbikes which is brought for a long-term use.
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Moving on to the factors that might affect the purchase decision in the German market.
Definitely the most important will be the attributes the bike will offer along with the reliability.
Because the German peoples top most priority is perfection and personal relationship doesnt
matter to them much. After reliability comes price, after sales support and convenience. Walton
as always will try to provide the best quality bikes for the German people and try to fulfill each
and every need of the customers and become a popular brand among the German market.
Size and extent of demand
According to reports German bike industry has performed outstandingly in 2015 and the
performance is expected to continue in 2016 as well. Industry association Zweirad Industry
Verband shows that in 2015 approximately 4.35 million units have been sold which shows a
staggering 6.6% increase in sales than the previous year 2014. Sales of bikes, parts and
components bring approximately 5 billion euros each year.
The possible reasons for success are considered to be the weather conditions that remains
favorable for cycling and bike riding throughout the year and also it has been seen that the
customers are finding trendy status symbol in bicycles and bike riding. Germans import has
gradual upward shift in the last 4 years which can be seen in the graph below. German import
consists of approximately 9 percent of vehicles.

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Product life cycle
Motorcycle usually have a product life cycle that starts from introduction and stays in the
growth stage. There is no maturity or decline in this industry. As people are becoming more rich
they are spending more on their transportation. Even though there are hundreds of automobile
companies around the world this business will never reach a decline stage unless people come
out with some special alternative vehicle. For product like bikes cars usually customers have a
great deal of knowledge. Customers go through a huge amount of research before buying such
product which has a long term use potential.
Competitor Analysis
BMW Horex MZ Sommer
Price High Medium Medium Medium
Pricing strategy Expensive Competitor Competitor Competitor

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Convenience High High High High
Reach High High Low Low
Market share High High Low Low
Promotional Tools Facebook, Facebook, Facebook, Facebook,
website, leaflets www.horex.com, leaflets, leaflets, etc. leaflets, etc.
etc. etc.
In Germany, the competition is the higher in automobile sectors because of customers
demand. Here; most of the customers want a quality product whatever the price is.
Here, BMW motor bike is leading the market and they reach near most of the customer. The
price of this companys product is most expensive and the percentage of the market share in
Germany is attractive and market share is the highest compared to the competitor. They use
different sort of technique to sell their product. For example, Facebook, website is the common
tools to promote the product.
Horex, it is the second higher company who has the large portion of market share in Germany
after BMW. It is also very expensive and demandable product in this country. It has a higher
convenience to customer because of their service system. They also use different type of
promotional strategy as like website, Facebook etc.
MZ and Sommer are got their market position after the two company and they are the competitor
to Walton. They are also convenience to all kind of customers. They use a variety of promotional
tools as like as other competitors in Germany.

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SWOT analysis is given in Appendix 3
Marketing Strategy (Part 4)
Target Market Identification
Target Market means choosing the customers you want serve and satisfying the demand of those
customers more effectively efficiently than those of competitors.
To identify how many customers segments they could serve in Germany they first divided the
market (Market Segmentation) and they followed these strategies
Mass Marketing- they served the whole market with one product and with one marketing mix.
Local Marketing- after doing geographic segmentation, they served the different states with
different marketing mixes.
Differentiated Marketing- Walton after perusing Market segmentation they also served the
different segment with different marketing mix.
To identify which segment/ target group of customer offer the most potential and give them with
the highest revenue the following factors were considered
Competition in the market- Walton saw that the German market were highly competitive. And
the competitors were providing premium quality product and charging higher price. Therefore,
Walton targeted all the people at the mid income and low income level.
Company own Resources- they also accessed whether Walton was sufficient and capable enough
to serve in the German market, which the company had enough resources, technology, financial
capability to serve the German market.

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Sales Potential of the Segment- they werethe people of mid and low income level and they also
found that the target customers had the potential or disposable income to buy their product and
Walton could generate enough money to support their activities in Germany.
Market Segmentation
Market segmentation is one of the most important marketing strategy for any company.
Market Segmentation means dividing the market into different homogenous group and
developing different marketing mixes for different consumer group. Walton has divided its
market based on different factors such as Demographic factors, geographic factors,
Psychographic factors.
Geographic Segmentation
It means dividing the market based on different cities, region, states etc. Walton has used
geographic segmentation for dividing the market of Germany. They have divided the market
according to the different states in Germany and having their showroom in the following states.
Bavaria.
Baden-Wurttemberg.
Herse.
Berlin.
Hamburg.
Saarland.
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Bremen
Demographic Segmentation
It means dividing the according to age, income, race, religion, gender, family size etc. Walton
have also used demographic segmentation for segmentation of their market in Germany and they
have considered the Income level and Family size. They have targeted the mass group of people,
but they are mainly focused on the Mid- income and Low income people. And also the family
size, they also targeted the families with few members (small sized families).
Psychographic Segmentation
It means dividing the market according to the value, consumer buying pattern, lifestyle,
attitude, usage rate, user status etc. Walton have considered the lifestyle and the buying pattern of
the German people. Because the price of the Walton motorcycle is comparatively lower than the
other local competitors.
Market Positioning
In positing their product in Germany Walton had used different positing strategy, so that their
product occupies a distinctive place in the consumer mindset. Walton were trying to create
competitive advantage to create a better position in the consumer mind. The following strategies
were used by Walton to achieve Competitive advantage in Germany
Price Walton has a used their pricing as a tool to achieve competitive advantage in Germany.
As the motorcycle market were highly competitive in Germany and Walton decided to charge
lower price to their target market. The price was charged lower because their main target
customer was mid or low level income people and their purchasing power was not so high.
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Better Quality Product- Walton also decided to provide higher quality product and better
designed motorcycle compared to the price paid for the motorcycle. The main reason behind
ensuring high quality is to achieve Consumer Satisfaction and this satisfaction will brand loyalty
and will help Walton to achieve competitive advantage over rival.
After Sales services- Walton also decided to provide better after sales services to their customers.
They established service centers with their showrooms, so that whenever the customer had
problems with the motorcycle they can go to the service center and repair their motorcycle.
Walton also provide one-year free service to the customers. This makes the customer feel that the
company thinks about them and tries to solve the problem. This could enhance Walton to achieve
competitive advantage.
Entry Strategy
When a firm decides to enter into an international market, there are various ways through
which the firm can enter the foreign market. It can be Exporting, Licensing, Franchising, Counter
Purchase, Buyback, Foreign Direct Investment and so on. Choosing an entry strategy faces major
three issues (a) Marketing- which country to enter, which segment, potential of the market and so
on, these issues were already were considered by Walton while they choose their target.
(b)Sourcing- whether to obtain or make or buy (C) Investment and control.
These are the following strategies used by Walton when they decided to enter Germany
Direct Exporting-Walton has decided directly export their product to Germany using overseas
intermediaries. They are going to sell and deliver their product to their client. Doing this Walton
will have direct control over their export. There will be no middlemen involve which will allow
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Walton to set lower price for the motorcycle and get higher return on investment. Walton will
also have direct interaction with their client.
Joint Venture- Walton also have been thinking about to form a joint venture with a local
company. Because going into a joint venture will bring more benefits to Walton. As Walton will
have access to local market information, financial ability will be improved, the consumers will
treat Walton as insiders. But before forming the venture Walton should do a proper market
research and find out which organization would be appropriate for the venture, financial history
of the institution, reputation of the firm in German market etc.
Foreign Direct Investment- Walton has also thought of FDI in Germany. But cost of investing is
so high and the return on the investment is much lower. However, going FDI is very risky as
some uncontrollable factor involved such as Exchange rate fluction, inflation in the host country,
rules and regulation of the government and so on.
Marketing Mix, Strategies and Tactics (Part 6)
Place
Walton venture in Germany will be the first time for the company stepping in the European
market and Walton will be doing it with their bikes. Even though intensive research has been
done before deciding to start venture in Germany but the risk of failure will remain even after
research as seen from many other popular companies in the international market. For that the
best strategy for Walton to enter the German market will be through indirect approach. There are
many advantages of indirect exporting even though disadvantages remain. The very important
advantage that Walton will be looking forward to is the how Walton will be able to enter the new
German market at a very low cost and relatively easy way. The whole process is relatively
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simple. There are intermediaries like Export management companies, export trading companies
and export agents who will take products and simple get them to the end users and in return they
will take a separate fee. Even though indirect export may seem to be the best way to step in the
international market there are some problems for Walton in this journey of indirect export. When
product is sold though indirect export using intermediaries will not have any contact with the end
users or customers and they will not be able to get any idea of the consumers preference or the
likes and dislikes of product. Also in the long run Walton will face problems as the company will
not have enough knowledge of the market or the consumers in Germany and fall behind to
compete with the other competitors in the automobile industry.
There are definite solution to the problems as well. Walton might use some managers from
Bangladesh to stay their collecting data and research the market thoroughly. Slowly by slowly if
the company starts to earn profit Walton can set an office in Germany to start their business in
full flow. In the long run Walton can set up branches and start exporting directly to customers if
the response of the market is good and demand rises. This will help Walton in two ways firstly
Walton will have the control of pricing in their hand and will not have to share the profit margin
with other intermediaries. Walton can also understand about the demand and preference of
customers which will help them to customize motorbikes accordingly. As direct exporting
requires a lot of time, resource and power it will not be a good idea for Walton to jump into
international market with direct exporting hence indirect exporting will be the best strategy to
begin with.
The best intermediary for Walton will be an export management company. These companies
have great knowledge about a product and foreign market. Because of their vast knowledge, they
are able to cater the manufacturers very well and help sell the products. They usually have strong
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networks and connections with the foreign distributors and this makes the job ever easier. An
EMC through their established networks can help Walton an immediate access to German market
which would otherwise be a very costly and lengthy procedure.
For Walton the EMC selected is the Frederick Export. This EMC has been doing really great
with their existing branded products and have a strong link and connection all around the globe.
The company have been able to increase the growth of brands by 20% in international market
which is really great for a company and can help Walton in the international market as well.
Product
Walton has about seven motorcycles launched in Bangladesh and all of these are doing pretty
good in Bangladesh. In Bangladesh Walton has positioned its bikes using two strategies being
benefits and attributes. In Bangladesh Walton is considered to be a fuel-efficient bike that
requires lesser maintenance and looks very stylish. Previously Walton has used the same
positioning strategy for products exported in other countries. So, it will definitely be a good idea
to do the same in Germany. The branding approach that Walton can use will be a family branding
approach. But Walton has a very good reputation and brand name therefore incorporating a
family branding will not be a problem for Walton.
Price
Walton motorbikes will be priced using demand and value based pricing. This will be the best
pricing strategy for a company like Walton. Walton will be introducing bikes in German market
which already has giant automobile industries of their own. So for a new entrant it will be a good
idea to set a price that reflects customer demand. If a high price is set customers may not want to
even look for bikes from a new foreign company. In the demand based pricing strategy the best
strategy to use will be penetration pricing. The prices will be set low which will help to attract
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customers and increase the market share for Walton. Even though Walton will be in loss during
the start of its venture once Walton bikes become popular among the German market profit
making is imminent. As Walton has invested in others electronic products and are exporting
goods in different countries it will help to cover up the losses Walton will incur during its first
few years.
Promotion
Walton will start its promotional journey with a push strategy. The 1st Walton bikes will be
launched through a trade show. This will have two benefits. Firstly, getting the people to let
know that a new company is in town presenting with some stylish motorbikes and also give the
company some idea about how people are reacting to the new bikes introduced in the market.
Walton rather than promoting through advertisement will look forward to using social media
marketing to gain its popularity in the market. As we know now is the time of social media
marketing and it is expected that from now on investment in social media marketing will only
increase. As per statistics about 50.7% respondents visit Facebook several times a day.34.7% in
Instagram and 18.5% in YouTube. So, using a mixture of these social media platforms Walton
can help to promote products successfully and at a minimum cost. Apart from social media
marketing print ads can be used along with posters and billboards. The content and copy will be
created keeping the German customers in mind but will also be for immigrants living in the
country.
Walton bikes as mentioned earlier is famous for its attribute like speed, style and low
maintenance cost and Walton has been using this as their USP in the home country. Walton will
also use this ups to promote the bikes in the foreign market as well but the medium used will be
different in different countries and the whole promotion and branding will be done under the
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umbrella brand Walton which makes more sense to use than individual branding.
Ethical Consideration (Part 7)
Integrity and loyalty is one of the highest praised traits in German business ethics is the
ability to have personal integrity and to be loyal to the associates. Secondly, the clich is true that
Germans love their work and that being employed and working hard are core principles in the
self-confidence of a German person. Thirdly, it is common in German businesses to be promoted
after a certain amount of years to a certain position. And last but not the least is Germans are
very punctual.
In order to enshrine ethical values in a company, culture changing measures are necessary.
Ideally, a company gains knowledge on existing integrity-relevant cultural assumptions and uses
them as a basis to establish the measures to be taken. Written guidelines, statements and
principles are developed and implemented company-wide. It is important to sensitise and train
the management and employees from areas crucial to the companys integrity from the
beginning.
Recommendation and Conclusion (Part 8)
We are willing to launch the showroom on 13th August 2017 on the day of The International
Motor Show Germany. This show held annually, with passenger vehicles and motorcycles which
are displayed in odd-numbered years in Frankfurt. We are looking forward to launch on this day
because we want to connect with the culture Germany. It is very important to connect our brand
with the countries own culture so that people of Germany consider Walton as their own brand.
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This will increase the brand awareness.
Implementing
The market entry program contains all the execution of taking activities to promote Walton
motorbikes and control the activities. The steps are recorded beneath for proper execution and
control of exercises: Firstly establishing standard and then measure the performance against
establish standards followed by correction.
Conclusion (Part 9)
In order to overcome risk, we need to make frameworks that are cost effective, and supplies
the customers with motorbikes according to their demand and make revenue. With better hazard
administration arranges, an organization tends to manage a danger better i.e. contingency plan B
is put in motion if plan A doesnt work. Walton will focus on communication and provide
feedback continuously to operate successfully in Germany.

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REFERENCES: (Part- 10)
1.Toytown Germany, 2009, Importing a mortorcyle to Germany. [Online article] Avaiable from:
http://www.toytowngermany.com/wiki/Importing_a_motorcycle_to_Germany [Accessed: 20th
July 2016]
2.Webber, D. (2013), Germany United as Europe's Stable Core,[Online] Available from:
http://knowledge.insead.edu/world/europe/germany-united-as-europes-stable-core-2594
[Accessed: 20th July 2016]
3.export.gov, last updated:2014, Chapter-5 Trade Regulations, Customs and Standards. [Online]
Available from:
http://export.gov/Germany/MarketResearchonGermany/CountryCommercialGuide/TradeRegulat
ionsandStandards/index.asp
[Accessed: 21st July 2016]
4.Trading Economics, Last updated: 2014, Germany GDP Growth Rate, [Online]Available from:
http://www.tradingeconomics.com/germany/gdp-growth
[Accessed: 23rd July 2016]
5.Clearly Cultural, last updated: 2014, Power Distance Index, [Online] Available from:
http://www.clearlycultural.com/geert-hofstede-cultural-dimensions/power-distance-index/
[Accessed: 23rd July 2016]

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6.Hofstede: MasculityVsFeminity, updated:2001, Cultures Consequences, 2nd ed. p 297.
[Online] Available from: http://www.andrews.edu/~tidwell/bsad560/HofstedeMasculinity.html
7.CearlyCultural, last updated: 2014, Masculinity, [Online] Available from:
http://www.clearlycultural.com/geert-hofstede-cultural-dimensions/masculinity/
8.Clearly Cultural, Last updated: 2014, Individualism, [Online] Available from:
http://www.clearlycultural.com/geert-hofstede-cultural-dimensions/individualism/
9.Clearly Cultural, Last updated:2014, Uncertainty Avoidance [Online] Available from:
http://www.clearlycultural.com/geert-hofstede-cultural-dimensions/uncertainty-avoidance-index/
10.All graphs collected from Trading Economics and links are provided below:
Interest Rate: http://www.tradingeconomics.com/germany/interest-rate
Inflation Rate: http://www.statista.com/statistics/262957/inflation-rate-in-germany-changes-of-
the-cpi-compared-to-the-same-month-last-year/
Unemployment Rate: http://www.tradingeconomics.com/germany/unemployment-rate

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11 German trade & invest (2013) Fdi data, viewed [Accessed: 24th July 2016]
<http://www.gtai.de/GTAI/Navigation/EN/Invest/Business-location-germany/FDI/fdi-
data,did=214136.html>
12 German Trade & Invest, Incentive Packages, [Accessed: 24th July 2016]
<http://www.gtai.de/GTAI/Navigation/EN/Invest/Investment-guide/Incentive-
programs/incentives-at-a-glance.html>
13 Germany Foreign Direct Investment Index, [Accessed: 24th July 2016]
<http://www.indexmundi.com/facts/germany/foreign-direct-investment>
14 Capozz C. ( 2008 ). The Business Product Life Cycle of a Vehicle in Marketing.
retrieved from: http://smallbusiness.chron.com/business-product-life-cycle-vehicle-marketing-
21158.html
15 Sen. S. (July 2013 ). Walton Ranger : New 100cc Bike of Walton Motorcycle.
retrieved from: http://www.bikebd.com/walton-ranger-new-100cc-bike-of-walton-motorcycle/
16 Motorcycle valley. (n.a.). Walton motorcycles
retrieved from: http://www.motorcyclevalley.com/brand/walton/
17 S. V. Willem (March 2016). German Bike Market Shows Growth in All Segments.
retrieved from: http://www.bike-eu.com/sales-trends/nieuws/2016/3/german-bike-market-shows-
growth-in-all-segments-10125866
18 Statista. (2016). The statistical portal.
retrieved from: http://www.statista.com/statistics/429496/frequency-of-social-media-usage-in-
germany-by-social-media-site/
19 Export.Gov (June 2016). Indirect exporting.

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retrieved from: https://www.export.gov/article?id=Indirect-exporting
20 Rustein D. (June 2013). Export opportunities on your doorstep, lets talk Germany.
retrieved from: http://www.businesswest.co.uk/blog/2013/06/04/export-opportunities-on-your-
doorstep-let-s-talk-germany
21 Z.A. Kim. (Janunary 2015 ). German Culture: Facts, Customs and Traditions.
retrieved from:
http://www.livescience.com/44007-german-culture.html
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Appendix 1
Gross Domestic Product (GDP) Growth:
The Gross Domestic Product (GDP) rate of Germany increased by 1.3 percent in the third quarter
of 2016 over the previous quarter. The average GDP growth rate of Germany from the year 1992
to 2016 is 1.33 percent. Germany had the highest GDP of 6 percent in the year 2011 and the
lowest in the year 2009 of -7.90.[Trading Economics, 2016]
Germany's main output is heavily relied on its exports. The improvement in labor laws, low
interest rates, better working conditions and work conditions, better relationship amongst
member countries has led to an increase in Germany's GDP in 2016. The diagram showing the
growth of GDP over the period of time.

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Inflation Rate
As per the Consumer Price Index (CPI) the inflation rate of Germany has decreased to 0.15
percent at the end of second quarter of 2016. This could be very beneficial for Walton because it
will be easy for Walton to set up its operation in Germany. Prices of raw materials will be much
lower compared to them being imported from Bangladesh and to assemble into Walton
motorcycles. The given figure shows the fall in the inflation rate in Germany over the given
period of time.
Interest Rate
Germany has always has maintained a lower interest rate for its economy. Lower interest means
people will borrow more and the spending pattern of the people will improve. Banks lending
rate has decreased to 2.59 from 2.6. This could be good for Walton if they need money at foreign
they can borrow at much cheaper rate. They no longer need not to bring the money from their
home country.
The diagram shows how the interest rate has decreased over the period of time in Germany
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Unemp
loyment Rate
At present, Germany has the lowest Unemployment Rate of 4.9 percent compared to neighboring
countries. This means Germany has a good and skilled labor force, we'll need to provide higher
wages and salaries, better job benefits and incentives compared to other companies to overcome
lack of labor force. But here we can minimize the cost training the worker. The diagram showing
unemployment rate.
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Appendix 2
Social and Cultural Environment
Here the social and the cultural environment of Germany is explained by the Hofstede's 5
dimensions. The 5 dimensions include Power distance, Masculinity Vs. Femininity,
Individualism Vs. Collectivism, Uncertainty Avoidance and Long-term Vs. Short-term
Orientation.
Power distance
Germany scores 35 amongst 66 countries in the cultural scale of Hofstede's analysis with 104
being the highest figure. They have a comparatively low power distance in their Economy.
[Clearly cultural, 2014] As Bangladesh has a higher power distance, when we take Walton to
Germany, we have to keep in mind that all the employees will not follow the decision made by
the management. They may disagree and may question certain decisions being made from the
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higher authority. At that point, we may involve the employee in the decision making and come at
a mutual decision. Which are in the best interest of the company.
Masculinity Vs. Femininity:
Germany has a masculine culture with a 66 on the scale of Hofstede. Masculine traits include
assertiveness, materialism, self-centeredness, power, strength, and individual achievements.
Thus, we can say that men in Germany play a vital role in decision making and would be more
open to buying automobiles due to its masculine culture and leading to higher sales for our
Walton.
Individualism Vs. Collectivism:
People in Germany are in the middle, they do not mind group work but they believe that an
individual is entitled to their own opinion. German's are very family oriented but till their
immediate family. Even though they are individualistic children stay with their parents even after
they have turned 18 and joint families are not unnatural in Germany.
Uncertainty Avoidance:
Germany tends to have a reasonable high uncertainty avoidance compared to neighboring
countries. Germans people try to avoid any unpredictable situation by planning very carefully. In
Germany there is society that relies on rules, laws and regulations. Germany wants to reduce its
risks to the minimum and proceed with changes step by step.
Walton need to have and follow a strict code of conduct to ensure credibility among consumers
and workers. We need to provide guarantee/warranty on our products to increase credibility and
provide return policies so that consumers will be drawn towards our company.
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Long-term Vs. Short-term Orientation:
Germans have been found to be short-term oriented because they respect their traditional value
and they tend to follow their own opinion. They also tend to have low power distance. They tend
follow the rules and regulations and do not like any changes in their lifestyle.
Technological Factors
In the world automobile industry Germany is one of the leading manufacturer and supplier of
automobile. Germany is known for its innovation and strong manufacturing. Looking at the
technological sector of the Germany it would very beneficial for us to invest and set up assembly
plant in Germany. Because the market has all the updated technology, all equipment and parts are
easily available which gives us the opportunity to develop and make better quality and
customized motorcycles for the German clients. Our biggest competitors will be industries like
BMW, AUDI etc. But, our companys main objective will be to provide customers with good
quality automobiles at the lowest price possible.
SWOT ANALYSIS:
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Strengths
Wider product range: The demand of Walton Motorbike is increasing around the world so
after satisfying the local people demand the company is now exporting there product in world
market.
Asian First Ultra-Modern Techno: Walton has already created a good image in worldwide
because of its safety rules and regulation and good environment it the work place. Walton is a
modern factory. And, all the safety rules and regulations are maintained here. It is investing in
workers training, safety and social welfares, Prinz said (German)
Quality products at low price: The present competing environment Walton provides quality
products at low price. In this occasion Walton attracts public more than any other companies. No
other company can give product with this feature at the same price like Walton.
Comprehensive knowledge of the total market and client: They are aware of the market situation
and the client demand so they are being able to spread their business.
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Using advance high technology: Todays world is so advanced in the technology area and Walton
use high advanced technology to compete with them. This opportunity the Bangladeshi is
updating people. Because of long term experience, customers reliability and loyalty they are
being able to satisfy the customers.
Weaknesses
Lack of skills men power: The staffs worked in this company are not so skilled as like the top
companies does. For this reasons some people do not choose their bike to use.
Proper monitoring problem facing in marketing activities: The lacking of manpower at marketing
sector is the reason to fail monitoring the market position properly.
Shortage of accessories: The accessories used in new bike are not easily available in the local
market so consumer face problem when they wants to repair their bike.
Customer service: There are few customer service centers available in whole country and outside
the country thats why they do not have the power to access among the people in time.
Opportunities
Achievement of sales growth through introduction of new products: Walton gives new products
to customers simultaneously. They are introducing amazing bike with extreme features.
Increase of sales in major cities: They are targeting some major cites in Germany to sell their
product where most people are fashion oriented and like bikes.
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Employment opportunities: Most of the people of Bangladesh lives below the poverty line and
this industry need large number of people to run the company that is how the poor people are
being able to overcome their poverty.
New Market: As they are entering a new market where they have already created a good
reputation. So its a good opportunity to introduce their bikes in that market.
Threats
Political unrest hamper sales: There is a huge possibility in GERMANY to have a great
market but the government unfortunately do not supporting the related companies to broad the
business area. The government also do not helping the company to import the parts of the bike.
Entry of more competitors in the market: They are so many famous companies in the market and
some are coming in the German Market. So its a great challenge for Walton to establish market
in that market.
Change of customers demand: The technology is updating rapidly in todays world. Especially
the high ambitious of our young generation is increasing about technological things.
Future possibilities: As the public demand is changing day by day, they will always prefer their
own product, so its a threat for Walton company.

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us the compilation of this term paper.

TABLE OF CONTENTS Page Number

Part 1 Introduction (Offering Description and Desired Positioning) 04

Part 2 - Research Methodology 04

Part 3 - Situational Analysis(Company Match): 05

Product Category Stage of Product Life Cycle 10

Part 4 Marketing Mix, Strategy and Techniques (Pricing, Distribution, Promotion) 12

Part 5- Entry Strategy 15

Part 7 Ethical Consideration 20

Part 8 Recommendation (Implementation and Control) 20

Part 10- Bibliography 22

Research Methodology: (PART- 2)

information. Such as:

Company annual report

Situational Analysis: (Part- 3)

the international market place is promoted well.

Market Analysis (Country/Offering Match)

Comparison of Political/Legal Environments and Pricing

Bangladesh is a parliamentary democracy largely influenced by the British Parliamentary

for the motorcycles in the German market.

political instability for the past 7 years.

going into trade with the German economy.

location for Walton to produce its motorcycles.

of the world's leaders in industrial development.

Social and Cultural Environment is explained by the Hofstedes 5 dimension is given in

Size and extent of demand

performance is expected to continue in 2016 as well. Industry association Zweirad Industry

components bring approximately 5 billion euros each year.

consists of approximately 9 percent of vehicles.

Product life cycle

product which has a long term use potential.

BMW Horex MZ Sommer

Price High Medium Medium Medium

Pricing strategy Expensive Competitor Competitor Competitor

Convenience High High High High

Reach High High Low Low

Market share High High Low Low

Promotional Tools Facebook, Facebook, Facebook, Facebook,

website, leaflets www.horex.com, leaflets, leaflets, etc. leaflets, etc.

In Germany, the competition is the higher in automobile sectors because of customers

tools to promote the product.

promotional strategy as like website, Facebook etc.

tools as like as other competitors in Germany.

SWOT analysis is given in Appendix 3

Marketing Strategy (Part 4)

Target Market Identification

customers more effectively efficiently than those of competitors.

market (Market Segmentation) and they followed these strategies

different marketing mixes.

different segment with different marketing mix.

the highest revenue the following factors were considered

capability to serve the German market.

Walton could generate enough money to support their activities in Germany.

market based on different factors such as Demographic factors, geographic factors,

other local competitors.

were used by Walton to achieve Competitive advantage in Germany

and will help Walton to achieve competitive advantage over rival.

(b)Sourcing- whether to obtain or make or buy (C) Investment and control.

also have direct interaction with their client.

of the institution, reputation of the firm in German market etc.