International Marketing (report 3) Essay Example | Topics and Well Written Essays - 750 words

International Marketing (report 3) - Essay Example The population of Sydney, Perth, Brisbane and Canberra comes to about 10.1 million people. The expected market will be 374,535/10.1 million, which is about 3.74 percent of the total population. The density rate of population in developed areas is 1.2% yearly. Data as of 2010 posted the 89% urban population with 1.2% rate of urbanization. The expected sale in five years will be calculated by taking the target market which is male’s surfers and multiplying with the price of one surf board. Assuming one surfboard is $300. The expected sales will be $300 *374,535 =$112,360,500 (Australian Bureau of Statistics 2012). Currently there are over 4000 stores selling competitive surfboards in Australia. Since the product is innovative, no other products have been introduced to the Australian market with such advanced technology and extremely limited direct competition. The target market with regard to income of the intelligent surfboard will be part of the 78% of Australians employed and more specifically, the 58% of households earning over $41,000 per year (Yellow Social Media Report 2012). The production costs of competitors vary from $400-$1500. The marketing budget was determined based on the average disposable household income. It was calculated by the income that a single person household would require maintaining the same standard of living was $848 per week (Wilson & Bell 2004). The average amount that an Australian household spends on all sporting goods a year is at $123.24. It will be obtained by adding all the marginal costs plus net contribution. From estimation we obtain; The figure obtained is equivalent to the average amount an Australian surfer spends in surfing. The contribution is adjusted to satisfy the average customer. Average number of units produced per year becomes 10,700 i.e. 112,360,500/ (5*2100). Advertising and publicity costs of Internet and social media will meet 79% of large businesses