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International Marketing Plan Michael Morales Multinational Market Strategy Professor Ugnoaja April 15, 2018

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2 Product and Company Background

Technology is encompassing everything in our personal and professional lives. We are seeing technology aiding in the healthcare field through means of telemedicine, safer procedures, and better accuracy in test results. International corporations can conduct business in real time with minimal lag time. Families can live different parts of the world and still communicate with each other. It leaves the question of how these technologies are maintained when something goes amiss. The Czech Republic (Czechia) currently offers a digital virtual assistant (Nina) in their customer service offerings. Nuance, the parent company, states Nina, the Nuance Intelligent Virtual Assistant, designed to deliver an intuitive, automated experience for all your digital channels by engaging your customers in natural conversations using voice or text. ("Intelligent automated virtual assistant technology", 2017) This service is beneficial to those who are technologically inclined. The service offers an opportunity for the customer to speak with a live person if it cannot help them. For those who do not have that inclination, a human based service is the preferred method of obtaining help when needed. This is where All Digital Things, LLP will be introduced. At its core, the company would be responsible for providing technical support for those in Czechia regardless of the product. Specialists in each device, program, and operating system would be available with extended service hours. Escalations of problematic requests would be sent to subject matter experts who are per diem. Pricing would correlate to the device and nature of the issue. This service will be purely human based with minimal use of frustrating selections to route the issue.

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3 International Market

Czechia is in Central Europe between Germany, Poland, Slovakia, and Austria. The total land area is 78,867 sq km with a population of 10,674,723, which was estimated in July 2017. ("The World Factbook: CZECHIA", 2018) Czechia is a parliamentary democracy. Its supreme law is the Constitution of the Czech Republic together with the Charter of Fundamental Rights and Freedoms. (Kábelová, 2010) Governmental breakdown is like that within the US. It is notable the Czechia boasts one of the highest GDP growth rates and lowest unemployment rates in the EU. The GDP was estimated in 2017 as $372.6 billion. ("The World Factbook: CZECHIA", 2018) Country SWOT With the advancement of technology, the need for digital support to end users also increases. The Czech Republic (Czechia) is no different. The information technology (IT) industry in Czechia is a best prospect industry sector for this country. According to exports.com, Czechia is an open economy and there are no major limitations on selling U.S. services in the country. ("Czech Republic - Market OverviewCzech Republic - Market Overview", 2017) Remote assistance is common in many locations allowing end – users to seek assistance from wherever their computer or device is located. Proper licensure and educational requirements are required to operate within the region as is registration with the proper department. It appears Czechia is open to the ideology of new services being offered within the region. Rules and regulations when it comes to marketing products and services vary depending on the product or service being offered. Direct marketing in the form of cell phone text messaging, emails, interactive consumer websites, online display ads, flyers, catalog distribution,

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promotional letters, and outdoor advertising are common methods of advertising with direct mailings being the most popular. ("Czech Republic - Direct MarketingCzech Republic - Direct Marketing", 2017) The service being provided is not age, gender, or socio-economic dependent thus having less restriction of how or when it is marketed. The age of consent does play a factor in how the service is used as there is a charge for using it. As mentioned earlier, proper licensure and educational requirements need to be met. There are no import restrictions on products entering the region. Tariffs and duties are required to be paid on products entering the region. According to export.gov, The Czech Government, the business community and public at large are very aware of the dangers facing modern society. (Taylor, 2017) Cyber security is a massive threat to any technological society. This security risk caused an amendment to the cyber security law in the fall of 2016. Czechia complies with all aspects of the EU Cyber Security Strategy and treats all threats accordingly. A SWOT analysis is in the Appendix. Brand The biggest competitors for All Digital Things, LLP would be virtual digital assistants as well as freelancers. Many freelancers do not have a logo associated with their brand but rather offer many skills that potential customers find beneficial to them. Nina, the virtual digital assistant, has a logo associated with its parent company. Their logo is not eye catching however it is associated with the brand. When it comes to marketing campaigns, freelancers tend to rely on word of mouth and other digital media platforms to bring brand awareness. The original logo

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for All Digital Things, LLP is as follows.

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This logo is apt to change and thus far is

not as appealing as it could be. Nuance, the makers of Nina virtual digital assistant, uses digital media platforms as well as digital media videos to bring their awareness to their product. An ad for this particular product can be found at: https://www.youtube.com/watch?time_continue=3&v=VKJtMe0jZSA. Granted this ad is best used in digital media platforms, it can easily be used in media platforms such as television and radio. The marketing campaign of the competitor (Nina) is a useful tool to educate the customer as to what is being offered. It appears to be straight forward and gives the potential customer the information they need prior to using the service. As for the freelancer, unless they have a portfolio or reviews from customers, they would have a difficult time trying to sell their services. Incorporating both aspects of marketing from competitors, there is a high likelihood of customization for All Digital Things, LLP. Customer reviews play a role in that they give potential customers a base of what is offered and how satisfied previous customers have been with the service. Digital media ads can be tailored to the specific product being sold and specific markets. Price is another factor in which customers look at when deciding on products and services. A search of freelancers shows that the median price per hour is $10. Virtual digital assistants base their price on customer size and product type. Nuance does not have a list of prices however the option is given to contact the company to discuss such options. The use of digital virtual assistants is paid for by the corporation using the service. All Digital Things, LLP

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would offer its services upon purchase of a product. The customer has the choice of accepting or declining the service at time of purchase. If at any point the customer needs the service, they can obtain it regardless of their choice upon purchase. As stated before, pricing is dependent on the nature of the issue and product type. Technology is constantly growing as is the need for customer service for products. Digital virtual assistants have been a commonality among many companies and is not unique to and one industry or market. These types of services are licensed to the business and used worldwide. Freelancers have also been a commonality in all markets and regions. They are usually local individuals within a specified distance of the requestor. Basing this new service on current offerings and technologies, it has an added value. Freelancers are per diem. Once the issue is resolved, they move onto the next issue. Digital virtual assistants are integrated into the company’s website or call center. All Digital Things, LLP would be based out of Czechia and encompass the surrounding areas. There would be no need for customers to wonder where their issues are being resolved. Target Market and Market Segmentation All Digital Things, LLP is a human – based virtual assistance service offered to end users of digital equipment. Offering this service in Czechia is a beneficial addition to those purchasing these products. Currently, there is a virtual assistant being offered that is based on AI technology and is most useful to those technologically inclined. The total median age of the population is 41.7, 40.4 for men, and 43 for women. ("Czech Republic Population 2018", 2018) As the population ages, the difficulty of troubleshooting digital devices increases. This service will then become vital to these individuals. They will have access to live help while being able to

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troubleshoot the issue they are experiencing. The logo for All Digital Things, LLP is as follows:

The main differences within the logo are the coloring of text and overall design. Many people associate blue with screens and digital content. The semi – circular objects on the top and bottom of the logo represent the company encompassing everything digital and electronic. The company slogan is also within the logo as well as a digital graphic. Pricing of a product or service is an essential part of the marketing process. The GDP was estimated in 2017 to be $372.6 billion with a growth rate of 3.5% in Czechia. ("The World Factbook: CZECHIA", 2018) This data shows that people are willing to pay for services and products so long as there is value in it. All Digital Things, LLP will base their pricing at $39.99. The price may increase depending on the nature of the issue and if it is escalated to an SME not to exceed $60.00. For those who purchase this service upon obtaining a qualifying product, the service will be offered at a reduced charge as a promotion. This service will be marketed mostly to older people who are not as technically inclined but will be open to all customers. It is more than likely that the older population is on a fixed income. With that in mind, it is critical to keep prices low. There is a budget matrix located in the Appendix. Placement of this service will mainly be offered in stores where digital products will be purchased. It will be offered as an add-on upon purchase and as a standalone purchase. If the service is not purchased along with a digital device, the customer will be given information on where they can receive support when needed. They will have the ability to access a website and will have access to phone support. There may be a need to install an application to allow customer support to remotely access the device. The application will be free for the customer and

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will have the option of removing it upon completion of the service request. Having a promotional strategy in place is another essential part of marketing a service. According to Export.gov, “Czech consumers have an above-average affinity for mailings, making them an extremely attractive target group for direct marketing campaigns after print advertising.” ("Czech Republic - Direct MarketingCzech Republic - Direct Marketing", 2017) Internet retailing is also gaining momentum. Media marketing is a beneficial option for this service. With Internet use increasing and the populations watching more television, they will have knowledge of this service. Social media would not be as effective due to restrictions placed on such platforms. Print would be the most effective. Much of the population tends to read printed items to gain knowledge. Having information for this service printed gives the customer a way to file the contact details for future use as needed. Pricing and Budgeting Considering all aspects of a marketing campaign, a budget proves to be a useful tool. The four main costs associated with a marketing budget are paid advertising, marketing collateral, production costs, and technology costs. (Kearns, 2017) Each of these categories, in some aspect, will have a bearing on the overall budget. As Czechians tend to prefer mailings, the budget will tend to be higher in certain regards. According to the Wall Street Journal, consumer services spend about 15% of their overall budget on marketing campaigns. (Moorman, 2017) Initially, about 20% should be allocated to marketing as the company would be entering the market. If we take things one step further the cost allocated to marketing would be $206.77 billion. This number comes from a statistical representation of US companies in 2017 marketing to customers in the US. ("U.S. advertising spending 2015-2021", 2017) As mentioned earlier, the base pricing for this service is $39.99 and ma increase

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depending on other factors. Freelancers tend to charge between $7 and $15 depending on the exact service they are providing. Using a virtual digital assistant that is not human based is charged as a license for use with the software. The total cost varies on the company and how many licenses are used. Promotional pricing is used when the customer decides to pay for the service upon obtaining a digital product. The current pricing for the service may not cover the current budget. This service is being introduced into Czechia. Though it will be a partnership, there will still be a need for financing. Initially, costs will exceed profits. As the service grows, the budget will stabilize. The current budget is not fiscally responsible as there will be high expenditures. Once the service has been in operation for a period, the budget will break even and generate a higher rate of return. Noted above is pricing for freelancers, virtual digital assistant and this service. This service is moderately priced. The cost for this service is above freelancers and slightly below digital virtual assistants. The impact of each entity is high when comparing each service. Though this service is human based, and prices are variable, it gives customers a way to access aid without the frustration of going through hoops to speak to a live person. Conclusions The overall impact of this service on the company will, in time, be positive. Initially, there will be a negative impact in the operations due to the introduction of this service. All Digital Things, LLP will be a partnership. There will need to be an investment in a physical location and equipment to get the business up and running. It is wise to include an entity who is familiar with the business aspect in Czechia and can aid with the initial entrance into the country. The service being offered will be a competition to both freelancers and virtual digital assistants. The main impact is that of pricing for the above-mentioned entities. When it comes to impacts on

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net income, given an adequate amount of time, it will prove to be positive. Using service-based metrics, we can locate areas of strengths and weaknesses and improve our quality of service based on that. Customer satisfaction plays a key role in the success of the company. The higher the percentage of satisfied customers, the greater the return on investment. Mentioned earlier are the marketing techniques most efficient in Czechia, Direct mailing is the marketing technique most preferred by the Czechs. The population is aging, thus using digital marketing is not as effective. This service will also be promoted in places of business that deal with digital products. With this is mind, a substantial amount will need to be invested in this form of marketing. Technology is constantly growing, and populations are aging. Pursuing this marketing opportunity would be beneficial in the long run. The younger generation has grown up using technology and can quickly and efficiently troubleshoot many issues. Those who did not grow up with such technology have trouble grasping the concepts and an even harder time troubleshooting it. This service will prove to be useful to the Czechs of any age. Customer Service Reps have the training to rectify any issue that arises and can quickly resolve it. If the issue requires a more technical approach, the issue will then be escalated to an SME who is able to resolve the issue. Expansion of services provided is an option. Currently, digital devices are the only products that customers can receive help with from All Digital Things, LLP. Many freelancers offer a magnitude of services to potential customers. Data warehousing, commercial technical support, and IT services are entities in which demand will steadily growing. According to CEDEFOD, around 22% of job opportunities will be for professionals (high level occupations in science, engineering healthcare, business and teaching). ("Czech Republic: Skills forecasts up to 2025", 2016) This indicates that there will be a need for service providers to maintain computer

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systems and provide options form companies to store data remotely. There is no such thing as a sure thing when it comes to success of new entities. All Digital Things, LLP would have a head start on expanding into the IT sector due to the high-level training of its staff. There would be other factors to consider when it comes to location and space and would be addressed if expansion were to occur. Advertisement Design The following page contains the advertisement design. It is in PDF format. By double clicking the image, the document will open in Adobe Acrobat and both pages will be visible.

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13 Appendix

SWOT Analysis

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Marketing Budget Below is a rough marketing budget and is apt to change over time. By double clicking on the image below, the budget will open in Microsoft Excel.

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15 References

Czech Republic. (2018, January 24). Retrieved March 13, 2018, from https://www.state.gov/r/pa/ei/bgn/3237.htm Czech Republic - Direct MarketingCzech Republic - Direct Marketing. (2017, June 21). Retrieved March 13, 2018, from https://www.export.gov/article?id=Czech-RepublicDirect-Marketing Czech Republic - Direct MarketingCzech Republic - Direct Marketing. (2017, June 21). Retrieved March 31, 2018, from https://www.export.gov/article?id=Czech-RepublicDirect-Marketing Czech Republic - Market OverviewCzech Republic - Market Overview. (2017, June 21). Retrieved March 13, 2018, from https://www.export.gov/article? series=a0pt0000000PAtdAAG&type=Country_Commercial__kav Czech Republic Population 2018. (2018, February 13). Retrieved March 27, 2018, from http://worldpopulationreview.com/countries/czech-republic-population/ Czech Republic: Skills forecasts up to 2025. (2016, October 31). Retrieved April 10, 2018, from http://www.cedefop.europa.eu/en/publications-and-resources/country-reports/czechrepublic-skills-forecasts-2025 Intelligent automated virtual assistant technology. (2017). Retrieved March 13, 2018, from https://www.nuance.com/omni-channel-customer-engagement/digital/virtualassistant/nina.html Kábelová, A. (2010, January 25). Czech Republic Political System. Retrieved March 13, 2018, from http://www.czech.cz/en/88070-czech-republic-political-system Kearns, S. (2017, October 17). How to Create a Marketing Budget. Retrieved March 31, 2018,

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from https://quickbooks.intuit.com/r/budgeting/create-marketing-budget/ Moorman, C. (2017, January 24). Marketing Budgets Vary by Industry. Retrieved March 31, 2018, from http://deloitte.wsj.com/cmo/2017/01/24/who-has-the-biggest-marketingbudgets/ Taylor, L. ...