MKT7045 Global Marketing Management Assignment Sample

Introduction

The current report will be based on evaluating the macro environment situation of the US, in accordance with the location of Gusto Inc, a software-based company situated within the domain of San Francisco, US. India has been chosen as the country of expansion. The report will be stating PEST analysis of India along with a brief market plan for the expansion of Gusto.

Findings and analysis

Part 1: Analysis of the overseas market

Selection of overseas market

For the expansion of Gusto Inc, the market of India has been selected. The recent behind the selection of the Indian market for brand expansion highlights lucrative growth of the software industry in the recent times. For example, the software industry of India is valued at $6.74 billion as per the reports of October 2022 (Anand, 2022). The market is also expected to grow at $12 million by the end of 2027 (Anand, 2022). A compound annual growth rate of 11.30% is estimated for the software sector in India, which is also projected to ensure a market volume of USD 14.42 billion by the end of 2028 (Statista, 2023).

Figure 1: Software sector revenue by segment in India (Source: Statista, 2023)

The segment-wise revenue generation within the Indian software sector has been highlighting extended growth of application development as well as system infrastructure software and enterprise software (Statista, 2023). This aspect has been indicating the opportunities to obtain profound growth from the perspective of Gusto Inc. Due to this reason, the Indian market has been selected as the expansion choice for the organisation.

Proposed product

The proposed product for Gusto Inc while entering in the Indian market reflects their existing cloud-based payroll solutions, human resource management software for businesses and others. However, Gusto would also look forward to provide extended payroll solutions, which is completely web-based under the shape of an online platform (Gusto, 2023). The nature of the product denotes its extended preference within the corporate environment where several companies can pay attention to utilise the products and services of Gusto as an integral part of technically managing respective HRM operations and others.

PEST analysis

Factors	Analysis	Impact
Political factors	● Unstable political environment ● Government focus to the software industry ● Positive relationship with neighbouring nations (JSTOR, 2021) ● High corruption	Moderate
Economic factors	● Decreasing growth rate of GDP indicating 8.5% in 2021 and 5.4% in 2022 (Trading Economics, 2022) ● 34.94% corporate tax rate as of 2022 (Trading Economics, 2022) ● Decrease in rate of inflation as of October, 2022 depicting 6.77% (Trading Economics, 2022) ● Fastest nature of growing	Positive
Social factors	● 1.4 billion population as of 2022 (Worldometer, 2023) ● High base of consumers ● Literacy rate is 77.7% (Hindustan Times, 2020)	Moderate
Technological factors	● Technologically advanced country ● $44.6 billion reflects technological investment of the nation (Business Standard, 2021)	Positive

Table 1: PEST analysis of the Indian software industry Political factors

Figure 2: India political stability index (Source: The Global Economy, 2023)

The political environment of India has not obtained adequate stability as the latest value of India in the political stability index is standing at -0.62 (The Global Economy, 2023). This declining political stability may create problematic concerns for Gusto to operate in the Indian market. Apart from that, the existence of high corruption is also noted in the Indian market due to which Gusto might face obstacles in terms of flexibly and transparently operating their business in India.

However, adequate focus of the Indian government can be highlighted towards the improvement of IT and software sector throughout the country. In this regard, the Digital India program has been taken as a national policy on software products (GOV, 2019). This evidence highlights the focus of the Indian government to signify the software market. This aspect may create opportunities for Gusto while expanding in the Indian market.

Economic factors

The GDP growth rate of India has come down to 5.4% during 2022 from 8.5% in the previous year (Trading Economics, 2022). Apart from that, around 25.17% corporate tax rate is applicable in the Indian market as per the reports of 2022 (Trading Economics, 2022). This declining GDP and substantial amount of corporate tax rate reflects negative implications of the economic downfall, which may also hamper the operations of Gusto in India.

Figure 3: Inflation rate of India (Source: Trading Economics, 2023)

Along with this, several positive directions can also be highlighted within the Indian economy concerning the decrease in the inflation rate, which was standing at 6.77% in 2022 (Trading Economics, 2023). Moreover, the software market of India has obtained a fastest nature of growth. The sector is projected to obtain a market value of USD 14.42 billion in the upcoming future (Statista, 2023). These aspects denote positive business growth opportunities for Gusto in the Indian market.

Social factors

An intense consumer base can be observed within the Indian market with comparatively high population growth. As an example, India included around 1.4 billion population as per the reports of 2022 (World meter, 2023). This evidence highlights positive opportunities for Gusto to ensure adequate consumer attraction in order to obtain increasing profitability and financial feasibility. Apart from that, around 77.7% literacy rate is maintained across India (Hindustan Times, 2020). This statistic denotes the educated population in the country. Increasing literacy rate has been highlighting proper opportunities of ensuring software business growth from the perspective of Gusto in India.

Technological factors

India has been recognized as a technologically advanced country. Extended preference of advanced technologies like artificial intelligence, machine learning, big data analytics and others are highly observed across the Indian software industry. Along with this, lucrative technology investment has also been insured in India which is expected to add a greater value to the software as well as IT industry. For example, around $44.6 billion investment has been ensured in the Indian market towards technological advancement and innovation (Business Standard, 2021). These factual evidences highlight the positive impact for Gusto Inc while entering and operating within the Indian market.

Part 2: Market entry plan

Target customers

Target customers are an important part of a marketing plan. As per Nastasoiu and Vandenbosch (2019), proper analysis of the target customers helps in covering the market area properly and it helps in reaching the right audience. In this scenario, Gusto will be targeting different organisations within India as the company deals with handling payroll, tracking hours of employees, managing employees’ bonus, direct deposit, deduction, tax filing, and many others.

Competitor analysis

Competitors within the market help in developing products and services within an organisation. Grant (2021) pointed out that a high number of competitors within the market helps in developing competitive edge within a company and creates an urge to operate properly.

Concerning Gusto, one of the main competitors that are likely to be faced by the company depicts IBM within India. IBM provides various IT services and products to the customers and helps in managing employees and customers’ needs for the future (IBM, 2022). Apart from that, other competitors such as Capgemini, Larsen & Toubro (L&T) and others are also likely to be the competitors of Gusto within India.

Market research

While considering the Indian software market, the industry is expected to reach up to USD 8.4 million by the end of 2023 (Statista, 2023). The enterprise software is considered as the largest segment within the Indian IT sector, which is also expected to ensure a market volume of USD 3.49 billion by the end of this year (Statista, 2023).

On the other hand, the software-as-a-service market of India was standing at a value of USD 3.5 billion as per the reports of 2020 (Expert Market Research, 2023). The sector is also expected to ensure a compound annual growth rate of 27% during the forecast period between 2023 to 2028 (Expert Market Research, 2023). This extended statistics and facts have been highlighting the existing status of the Indian software market which is likely to be considered by Gusto while entering in India.

Desirability of the market

The market desirability has been highlighting a profound focus on enterprise software as well as application development software in India. As highlighted before, the enterprise software market of India has obtained increasing growth. This aspect denotes extended desirability of the products featured by Gusto in India.

Risk management

Risk Type	Risk Probability	Risk Rating	Severity	Owner	Mitigation Strategy
Product Development Risk	Medium	6	High	CTO/Management Team	Using the right research and development procedures that can ensure product quality (Melzer, 2023).
Technical Issues Risk	High	8	High	CTO/Technical Team	It would be necessary to carry out regular software upgrades and maintenance to avoid problems (Wan and Qi, 2023)
Integration Risk	Medium	5	Medium	Project Team/Management Team	Ensuring proper system compatibility with current systems to prevent mistakes (Ismael and Saleh, 2022)
Customer Adoption Risk	High	7	High	Sales/Marketing Team	Adoption of various strategies that work in marketing and sales (Chopra et al. 2022)
Data Security Risk	High	9	High	CTO/Management Team	Data security training for employees and routine security audits of the entire IT infrastructure (Dash and Ansari, 2022)
Scalability Risk	Medium	4	Medium	CTO/Management Team	It would be necessary to carry out proper preparation and testing for software scalability (Avritzer et al. 2022)

Strategy of market entry

Selecting a proper strategy helps in expanding to a new market effectively. According to Barlow et al. (2019), selection of a proper market into strategy helps in considering different areas while expanding and creates less impact on the original business.

There are different strategies available for market entry including exporting, piggybacking, licensing, joint ventures, franchising, outsourcing, and many others. Among all these strategies, franchising will be the best choice for Gusto to expand within the market of India. In the opinion of Alon et al. (2020), franchising is the process where an individual or a group pays the original company for gaining the right to manage the company’s branches on its behalf. It is also effective for a company to earn a proper revenue margin while adopting an indirect approach of management.

Market positioning

Figure 2: Market positioning (Source: Iyer et al. 2019)

From the positioning map above, it can be stated that Gusto will be positioned as a product having high quality and low prices (Iyer et al. 2019).

Part 3: Rationale for entry into the overseas market

Production process

To maintain consistency, quality, and sustainability across all of Gusto’s products and services, the standardisation of its services is crucial. Gusto can increase efficiency, cut costs, and boost customer happiness by standardising its offerings (Buswell et al. 2022). A set of standard operating procedures (SOPs) must be developed for each service Gusto offers to standardise its offerings.

These SOPs will describe the procedures needed to provide the service, along with the software tools utilised, the data inputs needed, and the customer support procedures. Creating uniform training programmes for all staff as part of standardisation would provide them with the tools they need to consistently provide high-quality services (Gupta and Gupta, 2022).

Improving the customer experience is one of the main reasons for standardising Gusto’s services. Gusto may ensure that every client receives the same high-quality services, irrespective of their location, size, or sector, by standardising its offerings. By maintaining consistency, businesses may increase customer satisfaction and loyalty, which will ultimately boost sales and recognition in the market (French et al. 2022).

Gusto’s operational effectiveness may also be raised by standardisation. Gusto may increase productivity and cut costs by lowering the time and effort needed to offer services by developing uniform and repeatable procedures. Gusto may be able to grow its operations more successfully through standardisation if it can swiftly onboard prospective customers and guide new staff members utilising its SOPs and existing training programmes (DeSouza et al. 2022).

Strategic positioning

Gusto can develop a loyal customer base by positioning itself as a business that cares about the long-term achievement of its customers. Gusto also provides variable pricing choices and the ability to customise software features to provide solutions that are specifically tailored to each customer’s needs (Garefalakis, 2022).

Gusto could receive local assistance and build its brand in the Indian market by collaborating with regional human resources professionals and organisations. Moreover, Gusto can stand out in a market where a lot of companies are worried about data privacy and security by emphasising its dedication to data protection and compliance (Wollert and Behrendt, 2022). Gusto may position itself as India’s top supplier of HR and payroll software by putting these tactics into practice.

Discussion of the market

According to already conducted market research, the Indian software industry is predicted to reach USD 8.4 million towards the end of 2023 (Statista, 2023). By the end of this year, the enterprise software segment, which makes up most of the Indian IT industry, is expected to have a market capitalization of USD 3.49 billion (Statista, 2023). Additionally, according to Expert Market Research (2023), the software-as-a-service market in India had a value of USD 3.5 billion in 2020 and is projected to expand at a CAGR of 27% from 2023 to 2028.

The Indian software market is now in an unsettled position, as shown by these data and facts, which point to a favourable setting for Gusto’s entry. Enterprise software provides a tremendous opportunity for Gusto as it is the largest subsegment within the Indian IT industry. Additionally, Gusto’s SaaS-based ERP software has a perfect market because of the rising need for cloud-based software solutions in India (Kumar Pandey, 2023).

Gusto also has an excellent opportunity to succeed in the Indian market thanks to the growing adoption of technology by Indian companies, notably in the HR and payroll sectors. Gusto’s comprehensive HR and payroll software package may assist Indian businesses in streamlining their HR procedures and increasing productivity in step with the rising need for technological solutions (Basu et al. 2022).

Product positioning

Benefit of the firm from expansion

Currently, Gusto seems to be operating only within the markets of the US that provided the company with a little market exposure; however, expanding within India will provide the company to gain the chance of globalisation and gain a large base of customers. Most importantly, a large base of consumers within India will provide the chances of gaining a high profit margin that in turn will be beneficial to the company, as it will provide chances of sustainability. It will also help in creating a loyal base of customers within the market. Overall, the expansion will be beneficial in gaining high exposure market revenue and customer base.

Part 4: Theories and Analysis in respect of International Marketing

Marketing mix

Theory of marketing mix generally deals with 4Ps. This includes price, product, place, and promotion. Selecting proper strategy in relation to marketing mix helps in expanding within a market without any barriers and assists in the area of sustainability.

Product

Gusto will provide a full range of services including payroll, time and attendance, workers’ compensation, hiring and onboarding, integrations, human resources, and talent management. The business will set itself apart by offering intuitive software that is simple to use and customise (Zhang and Le Duigou, 2022). In order to guarantee that clients are happy with the goods, the firm will also provide 24/7 customer assistance.

Price

For its products, Gusto would charge competitive rates in the Indian market. Depending on the demands and size of the customer’s corporation, the firm will provide variable price alternatives. Gusto will also give discounts for multi-product orders and yearly subscriptions (Columbus, 2022).

Promotion

Through a variety of platforms, including digital marketing, social media, and trade exhibitions, Gusto will advertise its services in India. To raise brand recognition and legitimacy, the business will also collaborate with thought leaders and influential figures in the sector (Corsaro, 2022). Additionally, the business will offer learning materials like blog entries and documents to aid prospective customers in comprehending the worth of Gusto’s services.

Gusto will also use social media marketing strategy to gain exposure within the markets of India. A total of 398.0 million users were found to be using social media services in India, and thus, providing advertisements within social media platforms such as Facebook, Instagram and others will be effective for Gusto (Kemp, 2023).

Place

Gusto will make its services available online, using a platform that is accessible from any location in India. To offer clients support and help locally, the business will also collaborate with regional groups and HR specialists (Davidson, 2022). Additionally, the business will offer webinars and online training materials to help clients learn how to use Gusto’s services.

Resource-based analysis theory

In consideration to the Resource Based view theory, resources of Gusto will be intangible and will be valuable, rare, imitable, and organised further providing high competitive advantages by developing sustainability within the market (Dubey et al. 2019).

Figure 2: VRIO analysis (Source: Dubey et al. 2019)

Conclusion

From this report, it can be concluded that Gusto will be expanding within the markets of India as economic condition and political condition within the market is stable. Most importantly, a large population will help in increasing the customer base and the company will be targeting different organisations within the country. Franchising strategy has been selected for expansion and the company will be adapting the strategy of marketing mix in the form of low pricing strategy, product adaptation strategy, and social media promotion strategy and so on. Products and services of the company will be positioned as high quality and low pricing products.

Reference list

Alon, I., Apriliyanti, I.D. and Parodi, M.C.H., (2020). A systematic review of international franchising. Multinational Business Review, 29(1), pp.43-69.

Amenta, L. and Qu, L., (2020). Experimenting with circularity when designing contemporary regions: Adaptation strategies for more resilient and regenerative metropolitan areas of Amsterdam and Naples developed in university studio settings. Sustainability, 12(11), p.4549.

Anand, V., (2022). Microsoft India says developers are the ‘builders of our era’ driving innovation and growth. CNBC TV 18. [Online]. Available at: https://www.cnbctv18.com/technology/microsoft-india-software-developer-initiatives-industry-growth-12-billion-dollars-by-2027-15341301.htm [Accessed 9 April 2023]

Avritzer, A., Britto, R., Trubiani, C., Camilli, M., Janes, A., Russo, B., … and Chalawadi, R. K. (2022). Scalability testing automation using multivariate characterization and detection of software performance antipatterns. Journal of Systems and Software, 193, 111446.

Barlow, M.A., Verhaal, J.C. and Angus, R.W., (2019). Optimal distinctiveness, strategic categorization, and product market entry on the Google Play app platform. Strategic Management Journal, 40(8), pp.1219-1242.

Business Standard, (2021). 2021 record year for Indian tech investments, Bengaluru in world’s top 5, Business Standard. Available at: https://www.business-standard.com/article/companies/2021-record-year-for-indian-tech-investments-bengaluru-in-world-s-top-5-122011301306_1.html#:~:text=Overall%2C%20Indian%20tech%20VC%20investment,investments%20at%20USD%20675%20billion [Accessed on 25 March 2023]

Buswell, R., Xu, J., De Becker, D., Dobrzanski, J., Provis, J., Kolawole, J. T., and Kinnell, P. (2022). Geometric quality assurance for 3D concrete printing and hybrid construction manufacturing using a standardised test part for benchmarking capability. Cement and Concrete Research, 156, 106773.

Chopra, R., Sawant, L., Kodi, D., and Terkar, R. (2022). Utilization of ERP systems in manufacturing industry for productivity improvement. Materials today: proceedings, 62, 1238-1245.

Columbus, L. (2022). ERP and Quality. Quality, 61(8), 20-20.

Corsaro, D. (2022). Explaining the Sales Transformation through an institutional lens. Journal of Business Research, 142, 1106-1124.

Dash, B., and Ansari, M. F. (2022). An Effective Cybersecurity Awareness Training Model: First Defense of an Organizational Security Strategy. Int. Res. J. Eng. Technol.(IRJET), 9.

Davidson, A. B. (2022). Distribution Center ERP Utilization.

DeSouza, N. M., van Der Lugt, A., Deroose, C. M., Alberich-Bayarri, A., Bidaut, L., Fournier, L., … and European Organisation for Research and Treatment of Cancer. (2022). Standardised lesion segmentation for imaging biomarker quantitation: a consensus recommendation from ESR and EORTC. Insights into Imaging, 13(1), 159.

Dubey, R., Gunasekaran, A., Childe, S.J., Blome, C. and Papadopoulos, T., (2019). Big data and predictive analytics and manufacturing performance: integrating institutional theory, resource‐based view and big data culture. British Journal of Management, 30(2), pp.341-361.

Expert Market Research, (2023). India Software as a Service (SaaS) Market: By Deployment: Public Cloud, Private Cloud, Hybrid; By Application: Customer Relationship Management (CRM), Others; By Organisation Size; By End Use Sector; Historical Market and Forecast (2018-2028); Market Dynamics; Competitive Landscape; Industry Events and Developments. [Online]. Available at: https://www.expertmarketresearch.com/reports/india-software-as-a-service-saas-market [Accessed 9 April 2023]

French, L., Livermore, L., Haston, E., Drinkwater, R., Arsénio, P., Figueira, R., … and Smith, V. (2022). MS3. 5: Digitisation Standard Operating Procedures.

Garefalakis, A. (2022). Visualizing operational effects of ERP systems through graphical representations: current trends and perspectives. Annals of Operations Research.

GOV, (2019). National Policy on Software Products (2019). [Online]. Available at: https://www.meity.gov.in/writereaddata/files/national_policy_on_software_products-2019.pdf [Accessed 9 April 2023]

Grant, R.M., (2021). Contemporary strategy analysis. John Wiley & Sons.

Gupta, P., and Gupta, N. (2022). Improving organisational performance through TQM in an Indian manufacturing industry: an empirical study. International Journal of Productivity and Quality Management, 37(1), 1-19.

Gusto, (2023). Get award-winning payroll, HR, and more for one clear price. [Online]. Available at: https://gusto.com/ [Accessed 9 April 2023]

Hindustan Times, (2020). International Literacy Day 2020: Kerala most literate state in India, check rank-wise list, Hindustan Times. Available at: https://www.hindustantimes.com/education/international-literacy-day-2020-kerala-most-literate-state-in-india-check-rank-wise-list/story-IodNVGgy5hc7PjEXUBKnIO.html#:~:text=International%20Literacy%20Day%202020%3A%20The,recorded%20the%20lowest%20literacy%20rate [Accessed on 25 March 2023]

IBM, (2022). Home, IBM. Available at: https://www.ibm.com/in-en [Accessed on 25 March 2023]

Ismael, M. M., and Saleh, I. A. (2022). Software Maintenance Potential Prediction Based on Machine Learning. International Research Journal of Innovations in Engineering and Technology, 6(10), 56.

Iyer, P., Davari, A., Zolfagharian, M. and Paswan, A., (2019). Market orientation, positioning strategy and brand performance. Industrial Marketing Management, 81, pp.16-29.

JSTOR, (2021). The Political Situation in India, JSTOR. Available at: https://www.jstor.org/stable/3015064 [Accessed on 25 March 2023]

Kemp, S., (2023). DIGITAL 2023: INDIA, Datareportal. Available at: https://datareportal.com/reports/digital-2023-india#:~:text=The%20number%20of%20social%20media,on%20data%20to%20learn%20why [Accessed on 25 March 2023]

Kumar Pandey, R. (2023). Challenges and opportunities of ERP implementation in Indian SMEs: A case study of Jharkhand. Materials Today: Proceedings.

Melzer, M. (2023). Make A Quality Part On Time Every Time With ERP Software. Quality, 62(3), 15-15.

Nastasoiu, A. and Vandenbosch, M., (2019). Competing with loyalty: How to design successful customer loyalty reward programs. Business Horizons, 62(2), pp.207-214.

Statista, (2023). Software – India. [Online]. Available at: https://www.statista.com/outlook/tmo/software/india#revenue [Accessed 9 April 2023]

The Global Economy, (2023). India: Political stability. [Online]. Available at: https://www.theglobaleconomy.com/India/wb_political_stability/#:~:text=Political%20stability%20index%20(%2D2.5%20weak%3B%202.5%20strong)&text=For%20that%20indicator%2C%20we%20provide,from%202021%20is%20%2D0.62%20points. [Accessed 9 April 2023]

Trading Economics, (2022). India Corporate Tax Rate, Trading Economics. Available at: https://tradingeconomics.com/india/corporate-tax-rate [Accessed on 25 March 2023]

Trading Economics, (2022). India GDP Annual Growth Rate, Trading Economics. Available at: https://tradingeconomics.com/india/gdp-growth-annual [Accessed on 25 March 2023]

Trading Economics, (2023). India Inflation Rate, Trading Economics. Available at: https://tradingeconomics.com/india/inflation-cpi#:~:text=India%20Inflation%20Rate%20Quickens%20to,market%20expectations%20of%205.80%20percent [Accessed on 25 March 2023]

Wan, J., and Qi, Y. (2023, March). Improvement of ERP Cost Accounting System with Big Data. In Smart Computing and Communication: 7th International Conference, SmartCom 2022, New York City, NY, USA, November 18–20, 2022, Proceedings (pp. 120-130). Cham: Springer Nature Switzerland.

Wollert, T., and Behrendt, F. (2022). Automation of the Manufacturing Process Mapping in the Context of VSM by Utilization of ERP Data.

Worldometer, (2023). India Population, Worldometer. Available at: https://www.worldometers.info/world-population/india-population/ [Accessed on 25 March 2023]

Zhang, S., and Le Duigou, J. (2022, September). Implementing Vocal Natural Language Interface to Enterprise Resource Planning System. In Advances on Mechanics, Design Engineering and Manufacturing IV: Proceedings of the International Joint Conference on Mechanics, Design Engineering and Advanced Manufacturing, JCM 2022, June 1-3, 2022, Ischia, Italy (pp. 399-409). Cham: Springer International Publishing.

Know more about UniqueSubmission’s other writing services:

Assignment Writing Help

Essay Writing Help

Dissertation Writing Help

Case Studies Writing Help

MYOB Perdisco Assignment Help

Presentation Assignment Help

Proofreading & Editing Help

MKT7045 Global Marketing Management Assignment Sample