International Marketing Plan For Semantic Software Asia Pacific Limited's Entry Into The Indian Market Essay.

Write an international marketing plan (IMP) for an Australia company (preferably SME) seeking to enter an overseas market.
The marketing plan should benefit the company's managers and/or current or potential owners of the business and pursue social responsibility and ethical values. You will, therefore, need to synthesise and evaluate factors such as:
Different environmental variables (political, economic, social, technological, legal, environmental, and cultural) that affect international marketing – how are these factors dealt with and can you defend your entry strategy? 
Opportunities and threats associated with entering an overseas market – judge the value of entering the new market.
Sustainable marketing principles – how has the plan been guided by sustainable marketing principles? I.e. customer-oriented marketing, customer-value marketing, innovative marketing, sense-of-mission marketing, and societal marketing.
Ethical issues faced by the company and/or its industry – how this has been addressed in the marketing plan? Can you convince others that you’ve handled this adequately/effectively?
Cultural considerations – what local values and/or ethical norms have been factored into the plan?
Social care – how the company/product can truly help in the local community?
The long term effects of entry into an overseas market – does it improve people’s future living environment?
Socially responsible marketing practices – has the company developed a code of ethical policies (if it has one) and is this represented? Is the Australian Association of National Advertisers (AANA) Code of Ethics represented?
This is an individual effort. Marks will be lost for shared information.

This Assessment Task
Apply marketing theories, frameworks and concepts to complex international marketing problems.
Create an international marketing plan that examines and assesses international marketing opportunities for the company entering an overseas market.
Evaluate the impact of ethics and corporate social responsibility on international marketing.

Description of the target country

Semantic Software Asia Pacific Limited (SSAP) has been in the industry of software technologies for sixteen years. Semantic Software develops and researches next-generation software technologies applying for patent protection and inventions. In the year 2016, Semantic Software commenced its product rollout and the second suite of the product will be released in April 2018. Since the beginning, the organisation invested in technology and Semantic Software always commissioned for independent analysis. Semantic Software researches and develops in the field of Internet of Things and Artificial Intelligence. The development team of Semantic Software works closely with researchers to experiment the prototype; builds and tests the world-class software. The employees of the organisation work hard to ensure the software to be robust, standard based, valuable and easy-to-use in the market. Semantic Software is unlisted Public Company and it has more than 180 stakeholders and it is based in Sydney.

The customers of Semantic Software are the other technology-based companies and electronic gadgets manufacturers. Semantic Software is in B2B marketing and it has its software customers in Australia. Semantic Software is committed to advancing the science of Artificial Intelligence and Semantic Technology. The organisation will be delivering new functionality which will continue to simplify the complexities of advanced data analytics and visualisation to reach new software-based organisations as customers.  

Description of the target country

Semantic Software is thinking to expand the business in India as it would be the organisation’s first venture to expand the business internationally. India is the second largest populated country in the world and GNI Per Capita income in India is US$ 1,680 (Boutabba 2017). According to the Index of Economic Freedom, India scores 56.4 in Business Freedom and 79.4 in Tax Burden. India is developing towards the open-market economy. Software companies in India grew by almost 7.7% and India takes almost 38% of the global sourcing in software and IT industry (Agarwal 2018). India is driving towards digital technologies and internal cost optimisation which improve the profitability of the organisation. Entry wage level in the software industry in India is almost 5 times lower than the developed nations. Competition in IT and Software industry is high in India.

Identification of the target market

Semantic Software is continuing to add to the robust Patent portfolio to underpin the future development plan of the software products. In India, the target market of Semantic Software will be small and mid-sized organisations those will purchase the software products. Maximum software-based companies in India are situated in Bengaluru and Hyderabad. The target market of software products in Australia in India is large as the Indian Government is taking the initiative to bloom the software and IT industry.

Primary entry strategy

Foreign Direct Investment (FDI) is not possible for an SME like Semantic Software as it needs huge financial back up to come up with a new office set up in India. Therefore, Primary Entry Strategy of Cognitive Software Investment will be Joint Venture (JV) as it is a cooperative enterprise strategy where Semantic Software will make a partnership with another India based software organisation who is also working in Semantics computer learning. This joint venture will open up the knowledge of industries and organisations and process unstructured text with increased accuracy and speed. This Joint Venture will sell the software of AI Platforms to the customers.

Identification of the target market

This paper will be based on mainly qualitative data and the data will be gathered from the secondary sources. It is not possible to gather data from the primary sources as raw data is needed from both Australian and Indian software and IT industry. Therefore, secondary data can be gathered from different sources like the internet, online articles, journals, books, online magazines, government report, websites and different credible reports. There are a huge amount of information and data are available online to be gathered as secondary sources. The data will be more qualitative as this paper will be focused on mainly subjective knowledge and observations and not on the numerical data. Critical analysis will also possible through qualitative research. Qualitative data makes it possible to use facts and figures from the secondary sources.

Semantic Software is in the field of AI platform and this platform helps this organisation to sell the software services to the companies across Australia. The buyers of AL software are in the analytics and visualisation fields. AI platform is able to infer previously unknown data relationship. Semantic Software has enough resources both tangible and intangible to enter a new market.  

Tangible resources

Intangible resources

· Financial resources of Semantic Software based on the profitability of the organisation and the firm's borrowing capacity. The firm has the ability to generate internal funds as well to expand the business.   · The organisational resources of Semantic Software are based on formal reporting structure and it has formal planning and controlling. The coordinating system of the firm is strong. · Physical resources of Semantic Software are the firm’s plants, laboratories and office and equipment. The organisation has its access to raw materials and data analysis. · Technological resources of the organisation are the stock of AL technologies, AL platforms and the organisation has patent, copyrights and trademark. Use of Semantics software and IoT is the strength of the organisation.

· Human capital resources of the organisation are the strongest as PhD scholars and skilled employees work here in the research and development department. The employees have trust and knowledge. · Innovation resources of Semantic Software are the ideas, capacity to innovate and scientific capabilities. Patents and trademark of the organisation will help to get a competitive advantage to the organisation. · Reputational resources Semantic Software are the reputation of the customers, the reputation of the suppliers, perception of the product quality as software and effective and supportive relationship.

VRIO analysis:

	Valuable	Rarity	Inimitability	Organisational expertise
Patents and trademark	Yes	No	Yes	Yes
Brand value	Yes	No	Yes	No
Financial resources		Yes	Yes	Yes
Technological efficiency	No	Yes	No	Yes
Facilities and assets	Yes	Yes	Yes	No
Specialised talents	No	Yes	Yes	Yes

India is a developing country and India Government has recently taken the initiative of ‘Made in India’ which helps the foreign brands to start its manufacturing of the products in India.

At present, BJP political party rules India and Indian Government provides emphasis on manufacturing the products in India so that maximum numbers of employment can be created. Current political scenario in India is fluid as the opposition parties being divided into several groups. India has the federal structure in political power as each of the states has state government and there is a central government to rule the country. Political culture in India is tolerant and it helps to attract foreign direct investment (FDI) in India. However, the major issue in foreign investment in India is corruption and it poses a challenge to economic growth. Corruption in politics may lead to problems in taxation and no trust authorities are to be found. Semantic Software will face the issue of slowing down economic growth. Average Political Stability Index in India is -1.16 and it shows low political stability, as per published by World Bank (Agarwal 2018). Semantic Software will get benefit due to recent improvement in FDI in India. Indian government provides importance in transportation and infrastructure development which may help to develop distribution network. Semantic Software may face the issue as India as multi-lingual federal state.

In India, Regulatory Authority is very strict and large corporations want to bring some changes as per their lobby and power. At present, Indian government sets the corporation tax of 25% (Parayil 2016). Department of Industrial Policy and Promotion works under Ministry of Commerce and Industry sets the FDI rate in India. Policy framework in India is rationalised by the rules and Reserve Bank of India issues the circular. Government of India has announced to liberalise the FDI policy so that maximum numbers of foreign companies come to India. Entry strategy in India mainly depends on the nature of business and Indian companies are majorly governed by the Corporation Law, the Companies Act 2013. The government of India has taken a series of liabilities to make India more ease for foreign companies to do the business. Taxation is difficult in India as the central and state both take taxes from the corporations. In India, the corporations have to give GST (Goods and Service Tax) and it will help Semantic Software to reduce the complexity in taxes along with avoiding the multiple taxations.

Primary entry strategy

India is observing the growing GDP level; however, the major issue lies in lower per-capita income. The disposable income of the individuals in India is low and it leads to the lower purchasing power of the customers. In India, the government wants to make the manufacturing industry is the major diver along with digital transformation. Semantic Software will produce and research on AI and IoT to come up with new software to sell in the Indian market. India falls into the category of a fast-growing economy and small and medium-sized companies are the backbone of India. India has the negative side as it has a negative trade balance and the Indian government is trying to make a bilateral trade agreement with many countries to ease up the business. Current GDP in India is $ 2.848 trillion and GDP rank of India is 6^th (Yadav and Yadav 2017). GDP growth of India is 8.2% and major GDP comes from the service industry in India. The inflation rate in India is 3.68% and it is decreasing with time (Yadav and Yadav 2017). Human Development Index in India is 8.8% and average net salary is US$ 1,690. Major import partners of India are China, United States, UAE and Saudi Arabia. The software industry in India is blooming as India based software companies have 1,000 global deliveries centres in more than 80 countries. Semantic Software wants to sell their software to Indian companies and it also wants to set up its own office and business to globally sell the products from India. At present, the software and IT industry in India have the size of US$ 170 billion and it is expected to grow over 8% (Krishna et al. 2017). Foreign Direct Investment in India hit an all-time high in 2016 with US$ 44.5 billion.

FDI	2015	2016	2017
FDI Inward Flow (in Million US$)	44,066	44,482	39,913
FDI Inwards	7.2	7.0	n/a
FDI stock (% of GDP)	13.5	14.1	n/a

Table 1: FDI in India

(Source: Santandertrade.com 2018)

India has a large customer base as it is the second largest populated country in the world. India has skilled and educated human resources which may help Semantic Software to develop and research based on IoT and Artificial Intelligence. The labour is cheap in India as per compared with other South Asian countries. Accessible and affordable labours are the huge benefit for Semantic Software. India is a place of multi-lingual, multi-ethnic and multi-religious place where the people live with communal harmony. However, recent religious biases have created tension among the crowd in India. India is attractive countries where the customers belong from different economic groups. The standard living of middle-class group has improved in recent time which will enable the customers to purchase more electronic gadgets and technology-based products. Semantic Software will target the technology-based companies to sell their products in India along with researching and developing IoT and AI.

During the period of 1975-2010, the population of India got doubled and the density rate in India touches 382 per square kilometre. Population growth rate in India is +1.19% and life expectancy rate in India is 68.89 years. Almost 69% of the population falls into the category of 15-60 years of age (Sarkar et al. 2016). India has the population of 50% who is under the age of 25 and it is expected that India will reach just 0.4% in dependency rate. The literacy rate in India is 74.04% at present which shows that the young generation in India is getting educated faster (Shah et al. 2017). Better literary rate and the young population will help Semantic Software to reach maximum numbers of fresh talents in India when Semantic Software will expand their business in India.

Research methodology

In Technology, India is simplified and available for industries to use the technologies for production and promotions. India has the capability to use a high level of technologies and in India, there are major technology companies have their offices. Developing IT industry is another advantage of Indian technology as most of the developed IT companies want to expand the business in India due to skilled young generation. As stated by Barr and McClellan (2018), technologies change the buying patterns of the customers and organisations want to communicate their offers and products to customers through using technologies. Semantic Software is in technology and software industry which is working IoT and AI to research and develop new software for the Indian market to sell. Revenue of IT and software industry, majorly in the digital segment is expected to reach US$ 350 billion by 2023. Software and IT companies need medium capital to open a new business and IT and software core competencies lie in attracted significant investment from major large companies. In India, software and IT companies are coming largely as FDI inflows between 2000 and 2017 was US$ 32.33 billion (Shah et al. 2017).

India has world's some of the unique bio-diverse eco-zones like a desert, highlands, high mountains, hills, temperate and tropical grassland swamplands, forests, rivers and archipelago. Major areas in India consist of plains which provide the benefit of having a good transportation system. In India, there are three bio-diverse hotspots; the Himalayas, the Western Ghats and the Indo-Burma region. The government of India is investing in infrastructure, in highways, urban transport and renewable energy.

Aggregated revenues in software and IT industry in India reached US$ 160 billion in the year 2017 and the export is increasing day-by-day. Domestic revenue of IT and software industry in India reached US$ 99 billion. Demand in the Indian market for software and IT products and services have been increased by 13% in the last 3 years (Wang et al. 2016). Major demands in Indian software and IT companies come from Bengaluru, Hyderabad, Pune, Chennai and Mumbai cities. Major IT and software companies in India are in South and West parts. Demand in IT and software industry is very high as exports dominate the India IT and software industry. Export constitutes about 80% of the industry's total revenue. There are many small and medium sizes IT and software companies along with electronic gadgets manufacture in India which will be targeted by Semantic Software as the target market of the organisation.

Semantic Software commenced its product rollout in 2016 and the second suite of the product was released in the year 2018, April. Therefore, Semantic Software is in the growth stage of the product life cycle as the firm seeks to build brand preference and it wants to expand the business in India to increase the market share. Growth stage of the product lifecycle is maintained by providing additional features (Tayar and Jack 2014). Pricing is maintained as the organisation also enjoys increasing demand with a minimum competition in the market. Semantic Software uses increases the distribution of the software products as the demand increases in Australia and it is expected to have good demand in India also. Promotion of Semantics Software aims to broader audiences.

Situational analysis

Large software companies which are working in AI and IoT are the Aldra Systems (established in 2012), Artivatica Data Labs (established in 2016), CruxIQ (established in 2014), Formcept (established in 2011) and Iken Personics (established in 2005). The major competition will be based on the start-ups in AI and IoT as the entrepreneurs are working to come up with new technologies in India nowadays.  

Semantic Software wants to take the market of AI and IoT software-based products and the organisation wants to sell the software services and products to the IT companies in India. The market for software products is large as major companies are situated in the Southern part of India. In addition, Joint Venture of Semantic Software will enable the organisation to have market knowledge as they can invest in researching and developing the products to the sell the products to small and medium-sized companies.  

Semantic Software has its patents portfolio in AI and IoT as it has substantial development in these fields. Semantic Software has increased its value and size of the business with substantial licensing. Semantic Software has its advantage in the market as it has developed its AI Platform in various semantic language and data analysis along with visualisation. This platform can be used by many large AI based IT companies and the organisation has more than 180 stakeholders.

In the Indian market, the software companies mainly import the software from the international markets. Therefore, the cost of the software products is higher than the normal. If Semantic Software can provide premium level software along with AI and IoT platforms; the small and medium-sized companies can purchase from it. Semantic Software will provide products at lower price so that the maximum of the companies can afford the products. Artificial intelligence industry is included with Information Technology (IT) and it mainly runs with the idea of a B2B approach.

Semantic Software shares the capabilities which help the organisation to assist in overall success. Semantic Software has more than 180 stakeholders and these large numbers of stakeholders help the organisation to achieve success. Semantic Software also makes the AI platform which can be sold to different companies.

• Semantic Software has a large client base and these clients mainly belong to the various Fin Tech organisations and Government.
• Semantic Software deals with structured and unstructured data to ensure success.
• Semantic Software has strong competitive positioning in the industry of Australia which provides adequate resources and knowledge.
• The employees are skilled and it has a good market share in the industry.
• High integrity of technologies along with skills is the major strength of the organisation.

Weaknesses

Semantic Software is in AI and IoT and the technologies in this field always change with time. Therefore, the organisation has to make them capable to bring change at any time.

• The organisation deals in the field which is expensive as AI needs huge financial back up to do the research.
• AI and IoT make unemployment to many of the employees and the skilled employees always make themselves ready to operate in the field.
• Artificial Intelligence cannot be possible to develop with experience as it needs time and skills to improve.

Opportunities

As stated by McKinney (2015), software and technology-based organisations have the opportunities to develop new technologies which bring a new turn in the market.

• Semantic Software wants to fulfil the growing need for Artificial Intelligence in technological spheres. AI creates business opportunities for the companies to work on an improvement to fulfil the market demand. AL Platform created by Semantic Software has huge scale to work on visualisation, IoT and data analytics.
• Developing countries will be good options for Semantic Software as these countries are exploring new technologies. In developing countries like India, China and Brazil, the demands of the new technologies are high and small and medium-sized businesses are flourishing in developing countries.

Threats

• Semantic Software can face large competition in Australia and in India also. There are many start-ups and medium-sized organisations that have been doing good work to grab the market demand. AI has been considered as the growing segment and it has opened up new opportunities in the market in the field of IoT.
• In India and other developing countries, cultural aspects are different and management of Semantics have to understand the differentiation of the culture and ethics.

• Semantic Software is popular among the Australian clients and this brand image will help the firm to expand the business in India.
• Semantic Software has the financial strength and human resource capability to expand the business internationally.
• AI and IoT technologies have the possibilities to change the future and Semantic Software is working on the same technologies to take up the market demand.

• To create competitive advantage in Indian software and IT industry so that Semantic Software can gather a market share of 5% in the next three years
• To expand the business from India to other South Asian based countries by exporting the software
• To decrease the operational cost of the organisation to stream up the revenues

• To set up the large customer base by reaching software and IT companies in India
• To become the market leader in the field of Artificial Intelligence to provide the best AI solutions and platform
• To understand the requirement and market trend in India in the field of AI

In geographic segmentation, the organisations serve customers in a particular area. Semantic Software will set up their Joint Venture office near Hyderabad in India. Hyderabad is located in the Southern part in India. Therefore, the targeted software and IT companies of Semantics Software will be located near Hyderabad, Bengaluru, Mumbai and Chennai. These places are all located in South India and maximum IT and software-based large and medium-sized companies are situated in these cities. In the initial stage, only South Indian IT and software-based companies will be targeted to sell AI and IoT software.

Demographic segmentation

According to Menon et al. (2015), demographic segmentation is based on age, gender, economic condition, income and education of the customers. Semantic Software will do business in India based on the B2B strategy where the target organisations of Semantic Software will be software and IT companies. Electronic gadgets manufacturing companies can also be targeted. Therefore, in demographic segmentation, Semantic Software can target the software organisations which have an annual turnover of US$ 1 million. These business organisations have a good customer base and they will purchase the software in repeat basis and they can subscribe to the software in premium version. In addition, only medium and some of the large companies in software and IT will be targeted as the customers who can use AI and IoT software in producing their own products for the customers. AI and IoT software can be used to produce electronic devices and these types of software also help to run other software for optimum result.

Primary target market of Semantic Software is the Indian IT and software companies which have more than US$ 1 million annual turnovers. Semantics Software always focuses on ethical marketing and ethical work culture. Therefore, the marketing manager will also check the targeted organisations must have ethical workplace and ethical standard to do the business in future. Targeting strategy of these companies will be differentiation. Most of the Indian companies and exported software are generic and these types of software do not provide variations. Semantic Software will provide whole Cognitive AI Platform to the targeted businesses and the targeted organisations will have the technologies differentiation on Business Value, Intelligence, Functions, Industry Solutions, Data Transformation, Data Understanding, Domain Knowledge, Big Data, and Internet of Things. Differentiation will allow Semantic Software to be different from other companies. Differentiation strategy reduces the threat of substitution in the market as the switching costs are low for the customers. Customers need to learn the service protocol as customers always perceive different in services and products.

Semantic Software will target software and IT organisations in South India based small and medium corporations. Semantic Software will take low-cost leadership strategy and the organisation will sell the software and AI platform at very low price. Low-cost leadership strategy will bring higher profitability as the organisations give competitive pricing. The organisation will get margin more than the companies which invest more to produce services and products of better quality. Lower cost will also provide increased market share as the software organisations will be attracted with lower cost of the software services and products. In addition, low-cost leadership gives the companies sustainability and the companies can survive in downturn and tough economic conditions.

Brand positioning is the method of setting the business apart from the competitors which build the preference for the company in front of the target audiences (Robson 2015). Semantic Software will take price-value matrix strategy where the company will fall itself in Low Price, High-Quality quadrant. Semantic Software will sell the best quality software of AI and IoT in lower price so that maximum numbers of Indian companies can purchase the products from them. Semantic Software is targeting the short-term profit so that they can exist in the internationalisation strategy. As an SME in Australia, they do not have large financial backbone to survive in expansion of business; the organisation needs revenue to exist in market and to continue with research and development. Positioning strategy of the organisation is important as it focuses on specific target market and it clarifies different competitors. Therefore, Semantic Software is taking the strategy of price-quality approach to make its USP in the market. It will create a perception in the market that Semantic Software sells the best products and services at very low price.   

Another important aspect of Semantic Software is that the management of organisation is thinking to do the Ethical Marketing. Semantic Software has the philosophy to promote honesty, responsibility and fairness while promoting the business. Lower price of the products and services of Semantic Software will not compromise the corporate social responsibilities of the organisation and fairness of the brand image. Semantic Software will organise Fundraising events and Tree plantation events so that the organisation has a good brand image in front of the client organisations.

Sustainable marketing principles call for both environmentally and socially responsible which must meet the needs of the organisations and customers while also enhancing and preserving the ability of future generations to meet their needs. Semantic Software will do the marketing activities that do not damage the environment and societal norms will not be harmed through campaigning and marketing activities of the firm.

Customer-oriented marketing: In customer-oriented marketing, the organisations must view and control the marketing activities from customers’ perspective or point of view. Semantic Software will be passionate about delivering the best and superior values to the clients in India so that the clients will be satisfied to make the repeat purchases.

Customer-value marketing: As stated by Shamma and Hassan (2013), organisations need to direct most of the resources of the organisations into customer-value creation and in marketing investment. Marketing investment helps the organisation to reach maximum numbers of customers in a short period. Semantic Software in India will try to create value for customers by providing unique and different types of software.

Innovative marketing: Semantic Software has its PhD scholars and skilled employees for research and development to seek the improvements. Semantic Software has created AI Platform and they are continuously seeking innovation to improve the products.

Sense-of-mission marketing: According to Olson et al. (2018), the companies need to define the mission of the organisation in broad social terms, not just the narrow service or product term. Semantic Software better serves the employees, customers and brand and Semantic Software will be a socially responsible organisation will not harm the community anyhow.

Societal marketing: In societal marketing, the management of Semantic Software holds that marketing decisions of the organisation will not just be based on the consumers’ needs and wants; organisation needs to check the long-term interests of the society. Semantic Software will do campaigns in India for the well-being of the society and the employees will be given open space so that they can have the space in workplace.

Identification of the local cultural norms and values

As a marketer, Semantic Software will be honest to the clients as they will deal and offer value and integrity. Semantic Software will not misguide the clients and they will not cheat any clients. Semantic Software will take the responsibility to accept the consequences of marketing practices and they will serve the desires and wants to the customers by being the good steward of the environment. Semantic Software will balance buyers’ needs and their interest fairly so that they can avoid the manipulation in all the forms. The firm will also respect the Indian software organisations by acknowledging basic human dignity involving through communication, meeting the needs and understanding. Semantic Software will publish the financial reports and CSR report each year about Indian business so that the organisation can increase the transparency. Creating a spirit of openness can bring constructive criticism, discloser and actions (Malhotra and Peterson 2017).

According to Hofstede’s cultural dimension, Australia scores just 36 in power distance where India scores 77. Power distance means that to which less powerful individuals of organisations accept or expect that power is distributed equally. In Australia, hierarchy is created convenience and superiors talk freely with subordinates. In India, communication between subordinates and managers are not informed and the managers are not participative at all. In Individualism, Australia scores 90 and India scores 48. Individualism means the degree of dependence in society among the members. Australia has individualistic culture and in the workplace, employees show initiative. In Masculinity, Australia scores 61 and India 56. Masculinity means that society is mainly driven by competition, success and achievement. Quality of life shows the sign of success in both Australia and in India. Australia mainly believes in shared values and the employees want to be the best. Uncertainty avoidance means that society deals with the fact that future cannot be projected earlier. Australia scores 51 as the Australians feel threatened in unknown situations. Long-term orientation means that the society has a cling to make link with own past. India scores 51 and it shows that India does not belong to the normative culture. India shows great respect to the tradition and they have the propensity to save the future as well. Finally, Indulgence shows the people's talent to control the desire and Australia scores higher 71 and India scores just 21. Indian people do not have the willingness to realise their desire and they do not the positive attitude in life.  

Semantic Software can take Joint Venture as market entry strategy in India. A joint Venture is a particular form of partnership which involves the creation of a third independent company. Semantic Software will make a partnership with Fluid AI, a Mumbai based company. Fluid AI and Semantic Software both are going to make Joint Venture in India and the office will be based in Hyderabad. Management of Semantic Software has talked to Fluid AI as Fluid AI provides services to AI in government sector, in finance sector and in marketing sector. Fluid AI has user-friendly and eye-catchy website which provides easy to access all system. Two companies agree to work together in particular Indian market. In future, this Joint Venture will sell the software products and services in the South Asian market. Fluid AI and Semantic Software both will share the risks and profits equally. Joint Venture marketing strategy will help Semantic Software to access new markets and has good distribution channel in India to sell the AI and IoT software. Semantic Software will increase capacity by taking Joint Venture as mode of entry. Semantic Software will take transnational strategy as the company takes the global approach of one service or one product to sell and promote it the same way across all the channels. As opined by Killing (2017), Joint Venture provides greater access to the resources including the specialised staffs, technology and finances. Joint Venture will enable growth by offering partners’ services and products to existing customers.

This Joint Venture will try to improve the future living environment in India as this business venture will not harm and damage the environment. This Joint Venture will use renewable energy in the office building and green vehicles will be used for distribution and supply. This Joint Venture will also ask the employees to use cycle and walk as the traditional use of non-renewable energy in cars may end up the fuel. This Joint Venture will come up with e-waste and the management will take the initiative of keeping a separate container for trash. The organisation will recycle the waste including printer, computer, plastic bottles, milk jugs, steel containers and glass.

The Joint Venture of Semantic Software will provide the software products and services to India based small and medium-sized IT and software companies. The products and services of Semantic Software in India will be Cognitive AI Platform which is useful for data Transformation, Data and Understanding, Big Data, Domain Knowledge, Infrastructure, Hybrid and Internet of Things. Cognitive AI Platform is based on mainly W3C Semantic Web Standards and it is designed to give the computers the power to identify the context and it derives the meaning of the structured, unstructured and semi-structured data. Semantic Software will also provide the service of Software Development, Marketing Solutions and Corporate Media and Website development services to the client organisations. Joint Venture of Semantic Software will provide high-quality services to the clients who would be tailored specifically by the needs and objectives of the clients’ business.

Semantic Software will project itself in the market as an ethical and sustainable marketer in the software and IT industry. This brand image in the industry will be helpful to attract more clients in Indian software and IT industry. Socially and environmentally responsible brand image will be helpful to make the clients ‘emotional' and emotional connections with the clients will sell more products rather than logical marketing messages. Emotional connection with the clients can enhance the engagement and it will develop a sustainable relationship for the long term. Semantic Software will also take the strategy of employee empowerment and it helps the company to thrive. Employee advocacy accelerates the company culture along with values (Marshall 2014). Providing the perfect solutions to the clients will also increase the brand value of the organisation.

The Joint Venture of Semantic Software will be located in Hyderabad in India. Semantic Software is going to take an office as a rent. From the office, Semantic Software will research and develop the software and they will provide software services from this office. Semantic Software will make a repository on Git Hub and put the software there. Semantic Software will also use Google Code for the bigger software. In order to distribute the software to the clients, Semantic Software will also use SourceForge. The employees of Semantic Software will visit the clients' office to configure the software and make them understand how to use the software for AI and IoT. The employees will assemble the software so that the software may run as for their intended purposes. Semantic Software has been into ‘Finished' software and these types of software are ready to use and these would be assembled primarily.

At first, Semantic Software in India will take penetration pricing so that they can attract large numbers of clients. Market penetration pricing sets a low initial price for the services and products and this strategy attracts new clients based on the low cost. The primary motivation of the penetration pricing is increasing the market share and sales volume of the organisation (Li et al. 2017). Semantic Software will take penetration pricing so that it can increase the sales volume of the software in the Indian market to discourage competition in the market. Low cost of the software and IT products will increase the market share in the industry. Quality software and lower cost combination will attract many small and medium-sized software companies to be part of the clients. In India, there are many start-ups which want to grow the business in IoT and AI, this start-up can take the software services as the price will be lower than the average.

Print Media Strategy: Semantic Software can promote their business and software products through Tech Magazines in India. Semantic Software can give advertorials in Digit, Dataquest and PCQuest magazines in India. These advertorials will make the clients aware of the presence of Semantic Software in India. The clients will also aware of the products and services provided by Semantic Software. Print media advertisements and promotions have lasting value to attract clients in India.  

Free Sample: Semantic Software will also take the strategy of free subscription of the software as ‘trial’ for 30 days to be used by the clients. Semantic Software will also send free sample software to the clients to use for 30 days before making the purchase of the products and services. Semantic Software is confident about the software platform they are offering as after the trial period; the clients will definitely purchase.

Community services: In Hyderabad, Semantic Software is going to set up their office premise. The organisation is going to start the community services for the people live nearby places of the office. The community services will start by helping the hungry and homeless people. Semantic Software will tie-up with NGOs to build houses with habitat for humanity and the organisation will give money o buy new clothes for the homeless poor people. The employees will also be a part of volunteers to do the community services once a month. Through NGOs, Semantic Software will donate non-perishable food to the food bank and the organisation will donate blankets to the homeless shelters. 

CSR activities:

1. Semantic Software will start Education Drive in nearby villages in Hyderabad.
2. The firm is going to start a new Academy to brass up the unemployed people. In this academy, Semantic Software will teach the educated young fellow about data analytics, AI and IoT.
3. Semantic Software will start the Giving Back programme to the community to improve their social responsibilities.

Public relations: Semantic Software will do public relations through Media Introductions, PR Events and News and Media Releases. Semantic Software will hire the PR team to do the Public Relations and the PR team will publish News and Media articles highlighting the CSR activities and community services of the organisation.

Digital Marketing: In digital marketing, Semantic Software will do e-mail marketing to the small and medium-sized companies to make them their clients. Semantic Software will also do SEO and Google advertisement so that the clients can observe the advertisements to build up the brand image of the organisation.  

In Australia, Semantic Software follows the Australian Association of National Advertisers (AANA) ethics in marketing. In India, Semantic Software will follow labels or packaging of software products, corporate reports and broadcast media. Semantic Software will follow Competitors' Complaint on advertising and consumers' complaints about promotions. Semantic Software will follow advertiser and marketer in a reasonable degree of control and draws the attention of the public through products and services.

It is assumed that Semantic Software will have the gross revenue of AU$ 1,313,000 in the first year in India. The marketing expenses of Semantic Software will be AUD 341,000. It is assumed that Semantic Software will spend most of the percentage of capital on marketing.

		Year 1 (2019)	Year 2 (2020)	Year 3 (2021)
Gross revenue		$1,313,000	$1,339,260	$1,392,830
Cost of goods sold		$75,000	$76,500	$79,560
Gross margin		$1,238,000	$1,262,760	$1,313,270
Other revenue [source]		$0	$0	$0
Interest income		$0	$0	$0
Total revenue		$1,238,000	$1,262,760	$1,313,270
Sales and marketing		$7,000	$7,140	$7,426
Payroll and payroll taxes		$50,000	$51,000	$53,040
Depreciation		$25,710	$26,224	$26,738
Maintenance, repair, and overhaul		$0	$0	$0
Total operating expenses		$82,710	$84,364	$87,204
		$1,155,290	$1,178,396	$1,226,066
Interest expense on long-term debt		$0	$0	$0
		$1,155,290	$1,178,396	$1,226,066
Loss (gain) on the sale of assets		$0	$0	$0
Other unusual expenses (income)		$0	$0	$0
		$1,155,290	$1,178,396	$1,226,066
	30%	$346,587	$353,519	$367,820
		$808,703	$824,877	$858,246

Summary Statement
Sources of Capital
Owners' and Other Investments	AU$         364,000
Bank Loans	9,500
Other Loans	-
Total Source of Funds	$         373,500
Indian Marketing Expenses
Social Media	$         59,500
SEO	22,050
Mobile Marketing	55,000
Google Ad-words	6,500
Print media expenses	12,000
Sample delivery expenses	2,000
CSR activities	3,000
Advertising / Promo Expenses	4,000
Community campaign	24,000
Corporate Branding	3,000
Business cards and Signage	3,000
Total Expenses	AU$       341,050

Project Plan

	Project Activities	Start Date	End Dates	Duration
1	Collection of adequate data for the purpose of expansion in India	01 Jan-19	14-Feb-19	44
2	Gathering adequate resources for the purpose of expansion in India	15-Feb-19	03-Apr-19	46
3	Project Plan development of Semantic Software	04-Apr-19	29-Jun-19	88
4	Bring the plans into actions	01-Jul-19	30-Jul-22	1295
5	Monitoring and Evaluation	01-Aug-22	20-Dec-22	141

Objectives	Responsible Person	Key Performance Indicator (KPI)	Time Frame
Creating competitive advantage in Indian software and IT industry so that Semantic Software can gather a market share of 5% in the next three years	Marketing Manager of International expansion of Semantic Software	Market share will increase Revenue will also increase Sales will also increase	Next three years
Cover up the Indian software industry with a good client base	Indian Marketing Head	Market share will increase per annum Sales incurred in India	2 years
Decreasing the operational cost of the organisation to stream up the revenues	Business Head in India	The net profit Accounts of operational cost	1 year
To become the market leader in the field of Artificial Intelligence to provide the best AI solutions and platform	Both business and marketing Heads	Net sales Net margin Market share	2 years

Conclusion 

It can be concluded that Semantic Software chooses the right country India for the expansion of the business. India is flourishing in software and IT industry and major revenue come from the exporting. Semantic Software will do the business in AI and IoT as these both have high demand in the market. Semantic Software will take target the Indian based software and IT companies for selling the products and services. Joint Venture will be appropriate for Semantic Software which will enable the organisation to have a larger market share. In addition, Semantic Software is making a marketing plan which is completely based on ethical marketing and sustainability. The organisation majorly focuses their marketing on CSR and community services which will enable the organisation to build up the brand value.

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