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0 Introduction Reckitt Benckiser India Ltd (RBIL) is a fully owned subsidiary of Reckitt Benckiser Public Limited Company (PLC). It is the worlds No.1 Company in household cleaning. Reckitt Benckiser PLC came into being with the merger of Reckitt & Colman PLC with Benckiser NV in 1999. The company has operations in 60 countries, sales in 180 countries and has had net revenues in excess of $5.5 billion. Reckitt Benckiser India Ltd (RBIL) manufactures and markets a wide range of products in Personal care, Pest control, Shoe care, Antiseptics, Surface care, Fabric care and other categories. Among its many wellknown brands are Dettol, Mortein, Harpic, Cherry Blossom, Lizol, Disprin, Robin powder, Colin, and more. Most of these brands are either top 1 or top 2 in their respective categories in India. Dettol, the brand synonymous with antiseptics, it is the most trusted brand that had been voted in India. In September 2008, the marketing team of Dettol was reviewing the brands performance in its 75th year of existence to formulate a threeyear plan. The brand started its journey in 1933 as an antiseptic liquid, but over the years, it has been extended to a number of product categories like toilet soaps, liquid hand wash, liquid body wash, shaving cream and plaster strips. Consumers see Dettol as an expert, as something which is effective and versatile and guarantees protection from germs. It has been likened to a bodyguard who protects them from the unclean and unhygienic outside world. Recently, our company has modified an existing product which is Dettol Healthy Hand Hygiene Gel into a new type of hygiene gel. This new product has added on few new features and functions which can protect the consumers from unhygienic environment with a long-lasting time which is about 12 hours. Besides that, it kills 99.9% of bacteria and viruses and it provides a few odours such as lemon, lavender, rose, and more. The new odours concept differs from the traditional odour concept in order to provide consumers a better understanding of the importance of cleanliness and hygiene purpose and also allow them to select their preferred odour. This new product is introduced and brought into Africa area which is South Africa market. The Republic of South Africa is a country located at the southern tip of Africa, with a 2,798 kilometres (1,739 miles) coastline on the Atlantic and Indian Oceans. The country is divided into nine provinces and 367 magisterial districts. The
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government is represented by National Departments, Provincial Departments, and Local Government at the district level. Environmental issues are the responsibility of the government at each of these levels. For example, the government has launched many campaigns to create and strengthen the health awareness among the citizen. This is one of the reasons why we move into South Africa. Besides, South Africa's population is approximately 49,320,000 in the 2010 census, with roughly 50% living in urban areas, and 50% in rural areas. The population growth rate is 1.9%. Meanwhile, the rate of household expenditure in 2008 is 2.4% and has risen to 3.1% in 2009. The larger population and the increasing demand on healthcare products have provide us the opportunity to do business in South Africa. From a research, we have found that there are a hundred African children who died from diarrhoea every hour. Most of these lives can be saved through better access of sanitation and improved basic hygiene; the simple act of washing hands with soap can reduce the deaths from diarrhoea. Poor sanitation and hygiene weaken Africans through disease, disrupt the environment, increases heavy medical cost and lower productivity, and rob the poor and vulnerable of dignity. The availability of our product will reduce the mortality rate and increase the life time of South Africans. Another reason is South Africa government is encouraging Foreign Direct Investment (FDI) practices in their country because it will directly increase the GDP, boosts the economy by bringing external heavy capital and also creates job opportunity. Nevertheless, the government will provide many attractive benefits to foreign investors in return, such as exemption on taxes. These benefits will definitely make our company more profitable and reduce the operating costs as we plan to set up a warehouse at there.

2.0 Contents Under this part, we will describe how our product can be sold effectively under the influence of legal and social-cultural conditions of South Africa which may influence the entry mode, marketing and staffing strategies. 2.1 Legal Perspectives Before we can really enter the South Africas market, we must first analyze the legal and socio-cultural perspectives which may influence the entry mode, marketing and staffing strategies. For legal system, it is a set of laws and regulations, including the processes by which a countrys laws are enacted and enforced and the ways in which its courts hold parties accountable for their actions. According to the labour laws in South Africa, the minimum age for employment for South Africans is 15 years of age. We will use polycentric as our staffing policy due to the labour law in South Africa. Hence, we will take note onto this and not allow those labours who are underage to work even though there are still children as young as 10 or 12 who can be found working as vendors or in shops and farms. Besides, the law also stated that South African businesses and shops usually operate from Monday to Friday and the time is between 08:30 to 17:00 and Saturday is until 13:00. The maximum work week is set at 45 hours and overtime pay is calculated at 1.5 times basic pay on weekdays and double the basic pay on Sunday and public holidays. Most employers have a schedule of paid vacations which is based on the period of service of the employee. There are at least three weeks of paid leave after every 12 months of continuous employment that an employee entitled. Furthermore, there are 12 official public holidays in South Africa and women are entitled to four months maternity leave and men are entitled to three days of family responsibility leave in general. For this, we will follow the rules and regulations which were set by the government there when hiring the local labours. As a result, South Africas labour legislation has been described as one of the most advanced in the world. Hence, doing business there has created many employment opportunities to the local people. This can effectively keep potential

employees out of the labour force contributing to a higher unemployment rate as opposed to the expansion of the consumer base. Our companys headquarter is in India which is one of the members from World Trade Organization (WTO). As we know there are 153 countries including South Africa in WTO. The organization deals with regulation of trade between participating countries; it provides a framework for negotiating and formalizing trade agreements. Therefore, we choose exporting as our entry mode because by exporting our product to South Africa, we can enjoy a lower tax policy. In addition, we are also enjoying the intellectual property protection regarding our trademark by WTO. Property rights, including intellectual property, are protected under a variety of laws and regulations. According to South Africas laws, trademarks can be registered under the Trademarks Act of 1993, are granted for ten years and may be renewed for an additional ten years. As we mentioned before, we will set up a warehouse in South Africa to reduce our transportation cost and this is considered as Foreign Direct Investment (FDI). The Economic Report on Africa by the United Nations Economic Commission for Africa advocates that FDI is the key to solving Africas economic problems. Bodies such as the International Monetary Fund (IMF) and the World Bank have suggested that attracting large inflows of FDI would result in economic development. SubSaharan African governments are very eager to attract FDI. There are many reasons why the government of South Africa is keen on attracting FDI such as trying to overcome scarcities of resources such as capital, entrepreneurship; access to foreign markets; efficient managerial techniques; technological transfer and innovation; and employment creation. In addition, as we set our business there, this will directly increase the Gross Domestic Production (GDP) of South Africa and indirectly contribute to the economic growth. To attract more FDI, the South Africa government has offered incentives to attract foreign investment in the form of tax holidays, exemptions on export and import duties, subsidized infrastructures, and limits on workers rights. A research has proved that since 1980s, the government has relaxed the regulations for foreign investors by granting investors easier to entry, by relaxing the ability to borrow

locally although it implies a constraint on a countrys foreign currency reserves, relaxation of land and mining concession ownership. From the benefits of FDI that are provided by the South Africa government, we found out that these also indirectly influence our marketing strategies. The exemptions on export and import duties by the government have directly help our company to set our product at a lower price so we can save our costs. 2.2 Social-Cultural Perspectives In South Africa, there is an estimate about two to three millions of children which death are caused by diarrhoea. It is one of the biggest killers among the children in South Africa. However, a lot of campaigns have been held by the government organization to educate the South Africans about the importance of hygiene. There had been a lot of advertising on TV, radio, newspapers, and magazines too in order to inculcate the message to South Africans about the importance of hygiene. Until now, citizens are starting to pay more attention regarding their living hygiene issues. According to the survey conducted by an international research firm, South Africans spend 1.7% of their disposable income on health goods and medical services. Expenditure increased from R45.3 billion in 1995 to R114.9 billion in 2007, realising growth of 153.8% over the review period. This is good news for South Africa because the efforts that had been done by the government have already succeeded, proving that South Africans are willing to spend money on hygiene products and it helps to reduce the number of death caused by diarrhoea. Based on this fact, it is shown that our company has an opportunity to move into the market because there will have a demand on our healthcare product. In South Africa, women play an important role in every aspect. They have a public holiday which is called Womens Day on 9th August of every year. Regarding to this, we know that the womens social status in South Africa is high and it plays a very important role to enhance the hygiene awareness in the nation. We suggested women to be selected in higher managerial position in our host country because of the women higher status culture which may lead to higher satisfaction and contribute to higher effectiveness and efficiency. Besides that, there is a slow but visible progress
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which is occurring in the advancement of many women engaging in the domestic, top level of government and the private sector. However, training programs will be provided if they lack of explicit knowledge and skills. In addition, they also contribute in promotional activities because of their high influence power. Unsafe water, inadequate sanitation and poor hygiene habits play a major role in child mortality, said The United Nations Children's Fund (UNICEF) Executive Director Ann M. Veneman. Bringing basic services to Africa's women and girls could transform their lives and improve child survival in the region. So, women are the essential tool needed to change sanitation and hygiene practices aided by health education campaigns. According to a report by the Unilever Institute of Strategic Marketing and TNS Research Surveys, South Africas 1.5 million Black middle-class women are increasingly acting as primary decision maker for household purchases. Hence, women in South Africa have been targeted as our main consumer as they have higher influence power. These can lower the promotional costs such as advertising fees as the product can be promoted through viral marketing. Last but not least, the relationship and communication cannot be ignored when doing business in South Africa. Most of the local businessmen are looking for long term relationship. So, networking and relationship building are important for longterm business success. Our company is planning to do Foreign Direct Investment (FDI) as to set a warehouse at South Africa which will be a long-term investment. By building a good and long-term relationship with local business partner, we can facilitate and enhance the effectiveness and efficiency of our business activities. According to all these information, the hygiene gel that we plan to market in South Africa has an absolute advantage in social culture element. Firstly, the product can easily be adopted and accepted by the South Africans. Secondly, this product can directly or indirectly help to reduce cases of diarrhoea. Thirdly, women will be the major target market in South Africa because they have the power to influence and play a very important role in preventing more and more children and household from cultivating an unhygienic life style. Nevertheless, women are capable to hold the higher managerial position in our company. These are the opportunities for us to launch our product into South Africa.

3.0 Strategies Under this part, we will highlight the entry modes, marketing strategies and staffing policy to ensure how our business can be a success in South Africa. 3.1 Entry Modes Entry mode is the institutional arrangement by which a firm gets its products, technologies, human skills, or other resources into a market. It is the decision of how to enter the new market abroad by taking into account of many factors such as local business environment and a companys own core competency. Entry mode can be divided into 3 categories such as exporting, importing, and countertrade, contractual entry, and investment entry. Our company has chosen exporting and investment as our entry modes to expand our market purpose. For the exporting entry, our company tries to increase our sales of goods and services to wholesalers, retailers, industrial buyers, and consumers in other nations. The main reasons our company chooses exporting entry as our entry mode is to expand sales, diversify sales and gain experiences. We expand our sales to South Africa in order to lower our cost of production for each unit of output as well as to achieve economies of scale. This can help our company to compete with other competitors by using lower pricing strategy. Our company also uses diversify sales to offset slow sales or saturation in one nation market and we try to increase the sales in other new market such as South Africa which have a population approximately 49,320,000 censuses. Besides that, our company uses exporting entry to gain experiences for our new market, South Africa. This is because we are still inexperience on how to conduct business at South Africa and this is proven to be a better way for our company to enter the market with low cost and low risk. The degree of export involvement includes direct exporting and indirect exporting. Direct exporting is practice by which a company sells its products directly to buyers in a target market. For direct exporting, our company has chosen distributors method as our direct exporting. Our company sells the product directly to the South Africa hospital and clinic.
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For the indirect exporting, it is a practice by which a company sells its products to intermediaries who then sells to buyers in the market. Our company will use agents in the indirect exporting because agents are an individuals or organizations that represent one or more indirect exporters in a target market. Our company will select the more potential agents such as hypermarkets, supermarkets, general stores, and medical stores as our agents and pay them in the form of commission on the value of the sales. We select these familiar agents as our representative of product because they can help us to earn more sales in the market as consumers can also easily find out about our product in those famous agents shop. For the investment entry modes, there are some methods that can be used as an entry to the new market such as wholly owned subsidiaries, joint venture, strategic alliances, and selecting partners for cooperation. Our company chosen wholly owned subsidiaries as our entry mode to South Africa. Wholly owned subsidiary means that a facility entirely owns and controls a single parent company. Our company will build a warehouse at South Africa to facilitate our product delivery safely and timely to the agents and end users. The main reason is to make sure that we have enough stock to supply our agents as well as our consumers. Besides that, our company using this method as our entry mode to South Africa is also a good move because we can control over day to day operations in the target market and access to valuable technologies, process, and other intangible properties within the subsidiary. 3.2 Marketing Strategies Marketing strategy is a method of focusing an organization's energy and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribution, and pricing, it is useful to identify the firm's marketing goals, and explains how they will be achieved, ideally within a stated timeframe. Marketing strategy determines the choice of target market segments, positioning, marketing mix, and allocation of resources. It is most effective when it is an integral component of overall firm strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena. As the customers are the source of a company's revenue, marketing strategy is closely linked with sales. A key
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component of marketing strategy is often to keep marketing in line with a company's overarching mission statement. 3.2.1 Product Strategy A product is something that is referred to when pitching a new product to the general public. The people that we are trying to sell our products to are considered as our consumer market. The main function of our new product is aimed mainly on South Africans. This is because it is different from existing hand gel in the market that had been produced by our competitors. Our company has adapted our product to satisfy the laws and regulations in South Africa as we know that peoples tastes varies across market as well as the needs and wants. Our hygiene gel is considered as an international product because it is offered in several markets of Africa in a particular region which is South Africa. The labelling of our product provides consumers with various types of information. The five variants provide an ideal product mix in terms of consumer needs such as it contains essence of the Dettol antiseptic solution which is original with Dettol solution, skincare with moisturizer, active cleaning agent for active cleaning; fresh scent for a fresh feeling and suitable for sensitive skin because it contains skinfriendly ingredients. All of our ingredients are animal test-free which is to achieve the objective of World Wildlife Fund (WWF). Besides that, the aromatic chemicals that we used are meeting the criteria and it is permitted by the government of South Africa under the laws and regulations. Our company also introduced our product to suit local buyers product preferences that are rooted in culture. We have identified the taste preferences of consumers in South Africa as our hand gel provides not only anti-bacterial with long lasting but can also be used as a face cleaning gel which has different odours such as lemon, lavender, rose, and more because the South Africans prefer gardening and we believe that these odours can be favourable among them and this attribute will create a unique position in the mind of South Africans. Dettol is our companys brand name. When people see our hand hygiene gel labelled with the word Dettol, they will be interested in our new product as a certain value based on the past experiences with it. Our brand name functions as a legal
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property that protects us from any trespassing caused by competitors and it becomes the most valuable asset to us and primary source of competitive advantage. This is because whenever someone hears or see the word Dettol, they will automatically know that this is a company which produce antiseptic products. Furthermore, we found out that whatever the value customers obtain from a product is heavily influenced by the image of the country in which it is designed, manufactured, or assembled. This is because it affects buyers perception of quality and reliability; hence national image is an important element of product policy. As we know, Dettol comes from India and the Indians are superior in medical science research and development. Therefore, this has already indirectly created a good national image among the South Africans. We found that consumers in developing and emerging market such as South Africans are more likely to demand the latest product. We do believe our product is entering from introduction to growth stage in product life cycle because our hand hygiene gel is able to solve their problems by killing the germs and bacteria which will reduce the mortality rate. 3.2.2 Promotional Strategy There are two types of promotional strategies that our company can use to promote product internationally which are push and pull strategies. Pull strategy is designed to create buyers demand and to pull products through distribution channels to end users. Push strategy is designed to pressure channel members to keep a product and sell it over to end users. As a hygiene product, Dettol hygiene gel helps to build up an image that it is safe and effective to use and create buyer demand in South Africa. However, the decision to use either push or pull strategies is depend on the distribution system, access to mass media and type of product. In South Africa, our company can use pull strategy to create buyer demands by hiring a fleet of trucks to drive through the rural areas and give free sample products to potential end users. Besides that, South Africa is classified as developing and emerging country which typically has fewer available of mass media to promote their products. However, in fact, South Africa has improved vastly in TV channel (including South African Broadcasting Corporation (SABC), MNet, DSTV) and
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printing media such as newspapers (including Africa Herald Express, Africa Focus and Africa News Networker). So, television channel is the best media and has been chosen as the primary medium for advertising our product in South Africa. Moreover, it is also feasible to set up billboard at the bus station and railway station in the rural states which lack mass media facilities. Other than that, pull strategy is appropriate to be used in promoting because Dettol is a high brand recognition product and end users are mostly loyal to it. The product-communication strategy that we propose to use is productcommunication adaptation (dual adaptation). This strategy is, in essence, a combination of the adaptations needed for changes in the environmental conditions and consumers preferences. Due to many deaths that are caused by diseases, hence we reformulated and launch this new hygiene gel and provide several nice odours to fulfil their preferences. In terms of communication, we have selected the singer Knaan(singer for the FIFA World Cup 2010 theme song) from Africa as our spokesman to help us advertise and promote our product. 3.2.3 Distribution Strategy Distribution is a planning, implementing, and controlling the physical flow of a product from its point of origin to its point of consumption. The physical path that a product follows on its way to consumers is called a distribution chain or the channel. Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all important end-users. Our company has considered two overriding concerns when establishing channels of distribution which are the degree of exposure and cost of distributing a product. For degree of exposure, the producer can either choose exclusive channel or intensive channel. Our company has chosen intensive channel which is a distribution channel in which a producer grants the right to sell its product to many resellers because we want our product to be available through as many distribution outlets as possible. This channel is used to ensure that consumers can easily find our product in the proper quantities at the right places and time. We obtain much of the information about overall industry trends in South Africa at different geographic areas and different types of retail outlets.

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Our company has chosen zero level channels and one level channel for our channel length. Channel length refers to the number of intermediaries between the producer and the buyer. Zero level channel which is also called direct marketing that producers sell directly to final buyers. We distribute our hand hygiene gel to hospitals and clinics which are considered as one of the largest consumer to our company. As we know hygiene in hospital is a very important issue which cannot be neglected and we believe that our product can actually help the doctors and nurses to keep themselves as well as the patients hygienic. For one level channel, it places only one intermediary between the producer and the buyer. Our company also distributes to intermediaries such as hypermarkets, supermarkets, general stores, and medical stores to sell our product. Intermediaries in distribution channel provide information to our company to achieve a greater efficiency in making goods available to target markets. Our company has chosen zero and one level channel to reduce our cost as well as to reduce our selling price. 3.2.4 Pricing Strategy Price is pretty self-explanatory but it is very important to succeed. If the price is too high, a company will never get to sell even a single item of their product. Whereas if the price is too low, one can lose money on every sale once all of costs of doing business are considered. Our company will try to price the product attractively so that the customers in South Africa will feel good about the purchase. There are two pricing policies that companies can use in international markets which are worldwide pricing and dual pricing that will influence the managers decision. From the pricing strategies, our company will focus on dual pricing policy which means we have a different selling price in South Africa. Our company chooses this policy as our export price is lower than the price in our home market; this is because we determine that domestic market sales are able to cover all product costs such as administration and overhead costs. We export our product and charge a lower price in South Africa which to cover only the additional costs associated with exporting and selling in our target market such as tariffs. Our price is set to a sufficiently low level (below the prices of competing products) to make the product attractive to the mass market. The aim is to achieve a
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large market share by high initial sales. We are introducing the product at a low price intended to capture the mass market for the product and is appropriate to saturate market prior to imitation by competitors. Hence, we will set the price at a lower price at R32.99 for 50ml and R89.99 for 200ml compared to other competitors who set the price R112.20 for 500ml. Other than that, our company also made some research to environmental factors because it will influence on pricing decisions. Our company will try setting the price on the product based on the inflation rate of South Africa according to the currency rate, the product will not be sold to the target market with a high price. Furthermore, we also made some research to the environmental factors because it will influence on pricing decisions. Some factors of the environmental that will influence on pricing decisions are inflationary environment. Inflationary environment can be defined as a persistent upward change in price levels and it can be caused by an increase in the money supply and by currency devaluation. Inflation will require price adjustment because rising costs must be covered by increasing selling prices. From much consideration, our company will try to set the price of the product based on the inflation rate of South Africa. The inflation rate of the South Africa had decreased from 7.2% on the year 2009 to 3.5% in the first quarter of the year 2010. It shows that the purchasing power of the South Africans had increased and the people in South Africa are able to buy our product.

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3.3 Staffing Policy Staffing policy is the customary means by which a company staffs its offices. The extent of a firms international involvement can be greatly influenced by the staffing policy. There have three main approaches to the staffing of international business operations, which are ethnocentric, polycentric, and geocentric. Our company will choose polycentric as our staffing policy. Polycentric staffing is a staffing policy in which individuals from the host country manage operations abroad. Our company has chosen this policy to provide national units a degree of autonomy in decision making, but this does not mean the host country warehouse managers can fully control the decision making. The advantage our company can gain from this policy is the local managers are more familiar with the local business environment. The local managers have a deep cultural understanding of the local market and know what the consumers need and want compared with expatriate managers. It can easily help to fulfill the local consumers need and want. They can also read the subtle cues of both verbal and nonverbal language, and more easily communicate with the consumers. Another advantage our company can gain from employing local managers is it is more economical than others. It helps to eliminate the high cost of relocating expatriate managers and families such as accommodation fees, transportation fees and other fees so that we can use those fees in another ways such as reducing production cost. Besides by hiring local managers, implementation of strategy and work task can be done faster. Local managers can respond faster if they experience any trouble such as local staffing problems. They can implement their tasks in a shorter period because they understand more regarding the environmental factors and local workers needs.

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4.0 Conclusion Reckitt Benckiser Public Limited Company is the worlds No.1 Company in household cleaning. Dettol, the brand synonymous with antiseptics is the most trusted brand under Reckitt Benckiser. The brand started its journey in 1993 as an antiseptic liquid and has been extended to a number of product categories like toilet soaps, liquid hand wash and more. Recently, our company had modified an existing product into a new type of hygiene gel which has added on few features and functions and even nice odour in order to protect consumers from unhygienic environment. We market our product into South Africa with a population of approximately 49 million human and we found that there are a hundred African children dying from diarrhoea every hour. At least 40% of Africans do not have access to basic sanitation and hygiene. We plan to set up a warehouse because there are many benefits provided by the local government. Legal system is a set of laws and regulations, including the processes by which a countrys laws are enacted and enforced and the ways in which its courts hold parties accountable for their actions. For example, the minimum employment age for South Africans is 15 years old. In addition, we will assign the jobs and tasks to South Africans according to the working hours which have been set by the laws and provide enough holidays and other incentives that have been stated in labour legislation. India and South Africa are the members under WTO and we can enjoy the trade agreements and the trademark protection. Furthermore, the local government is encouraging the FDI in South Africa, so we can enjoy many benefits and incentives provided by the government. From the social-cultural perspectives, we heard news regarding the death of children which are caused by the lack of awareness of hygiene. Studies have shown the disposable income among South Africans on healthy goods has increased; this will be an opportunity for us to promote our product. A research also shown womens social status in South Africa is higher compared to men, so we suggest that women are to be selected in higher managerial position. Women in South Africa have been targeted as our main customer due to the higher influence power. Training programs will be provided to the staff as well. Other than that, our company will try to build a

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good and long-term relationship with local business partner to ensure we can facilitate and enhance the effectiveness and efficiency of our business activities. In order to enter South Africans market easily, we will use the exporting and investment as our entry modes. We are choosing exporting entry as our entry mode to expand sales, diversify sales and gain experiences. The degree of export involvement includes direct exporting and indirect exporting. Our company has chosen distributors method as our direct exporting and uses agents in the indirect exporting because agents are individuals or organizations that represent one or more indirect exporters in a target market such as hypermarkets, supermarkets, general stores, and medical stores. For the investment entry modes, our company has chosen owned subsidiaries as our entry mode to South Africa which means the facility is entirely owned and controlled by a single parent company. For product strategy in marketing mix, our company has adapted our product to satisfy the laws and regulations in South Africa. Our new product is considered as international product and is a fast moving consumer product which is affordable by all levels of families. We have labelled our product with various types of information and we are using eco-packaging on bottles and can be recycled after used. For distribution strategy, we are using direct sales method and indirect sales method as well as wholesalers and retailers to make the transaction more efficiency with consumers at different places. For promotional strategy, we are using the product-communication adaptation (dual adaptation) because of the environmental conditions and consumers preferences. We have chosen Knaan as our spokesman and we have launched several campaigns to promote our hygiene gel. Some non-price promotions have been offered by our company as well. Besides that, we are using advertising method through media such as TV channel and newspaper to promote our new product. For pricing strategy, our company focuses on penetration pricing which enter the market with lower price and we will price our product based on the environmental factors such as inflationary environment. For distribution strategy, our company has considered two overriding concerns when establishing channels of distribution which are the degree of exposure and cost of distributing a product. Our company has chosen intensive channel which is a
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distribution channel in which a producer grants the right to sell its product to many resellers because we want our product to be available through as many distribution outlets as possible. Our company has chosen zero level channels and one level channel for our channel length. For one level channel, it places only one intermediary between the producer and the buyer. For pricing strategy, our company will focus on dual pricing policy which means we have a different selling price in South Africa. Our price is set to a sufficiently low level (below the prices of competing products) to make the product attractive to the mass market. Our company also carried out some researches regarding environmental factors because it will influence pricing decisions such as inflationary environment. From that, we are quite sure that our company will try to set the price on the product based on the inflation rate on the South Africa. For staffing policy, our company will choose polycentric as our staffing policy which individuals from the host country manage operations abroad. This is because our company can gain from this policy as the local managers are more familiar with the local business environment. It helps to eliminate the high cost of relocating expatriate managers and families such as accommodation fees, transportation fees and other fees.

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