University of Delhi 2010-1st Year M.Com Commerce 2nd NTERNATIONAL KETING-I UNIVERSITY - Question Paper

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(1)    What is marginal costing ⁹ How do the implications of this pricing method vary in domestic and international marketing ⁷

(2)    What is the difference between direct and indirect channels of selling goods m overseas market ⁹

(3)    Present the arguments and cases for each of the three school of thoughts for advertising in international marketingstandardization, adaptation, and compromise

(4)    What is the country of origin effect and what are its marketing implications ⁹

(5)    What are the challenges associated with advertising through (1) TV and (2) Radio in different nations ⁹ Cite specific cases -

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5 (a) Explain the theory of IPLC (International Product

Life Cycle) Does it apply at industry or at product

level ⁹ Evaluate the relevance of the concept to

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(6) Discuss the conditions that favour marketing of a standardised product across foreign markets    6

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Indian Oil Corporation (IOC) is the largest commercial undertaking in India "and the only Indian company in Fortune magazines Global 500 Listing* As apart of its internationalization strategy, it has entered foreign markets by different modes

Exporting

IOC exports Servo-lubncant and other petroleum products to a number of overseas markets including Bangladesh and Sri Lanka

Turnkey Projects

In Oct 2002, IOC set up a wholly owned subsidiary M/s Indian Oil Tanking Ltd , Mauritius, to construct a port oil terminal on a turnkey basis at Mer Rouge

Strategic Alliance

For providing aviation fuel and refueling facilities at SSR international airport m Mauritius Indian Oil Mauritius Ltd (IOML) has forged a strategic alliance with existing players, such as Shell, Caltex, and ESSO

Joint venture

IOC is also negotiating with Caltex to enter into a joint venture for installing a bottling plant and also for marketing LPG under a common brand name Mauri gas in Mauritius

Wholly owned Subsidiaries

IOC has set up a wholly owned subsidiary m Mauritius-Indian Oil Mauritius Ltd (IOML) with a huge projected investment The company is setting up a state-of-the-art bulk storage terminal at Mer Rouge to stock 24,000 metric tons of vital petroleum products, auxiliary and bunkering facilities, and 25 modern petrol (and gas) stations IOML is also in the process of building infrastructure for storage, bottling, and distribution of Indane and LPG It is also planning to market its Servo lubricant in Mauritius

Besides IOC has also formed a wholly owned subsidiary m Sri LankaLanka IOC Pvt Ltd (LIOC) LIOC acquired 100 retail outlets owned by the Ceylon Petroleum Corporation in February 2003 It is the only private company, besides state owned Ceylone Petroleum Corporation (CPC), to operate retail petrol stations in Sri Lanka Besides building and operating storage facilities at Trmcomalee Tank Farm LIOC is also involved m bulk supply to industrial consumers

In order to facilitate the operations of LIOC, the government of Sri Lanka has extended the following concessions

()    A tripartite agreement signed between the Sri Lankan government, CPC, and LIOC guarantees that only three retail players (including CPC and LIOC) will operate in the Sn Lankan market for the next five years

()    LIOC has also been allowed income tax exemption for 10 years from the date of operations and a concessional tax of 15% thereafter against the prevailing rate of 35%

(c) LIOC has also been granted customs duty exemption for import of project related plant, machinery, and equipment during the project implementation period of five years, besides free transfer of dividend/income to India

As a strategic perspective, IOC is moving towards globalizing its markets

(c) Identify the main reasons behind IOC & expansion

into global markets    5

(rf) IOC has adapted a mix of entry modes, for approaching international markets Critically evaluate the factors affecting IOC's selection of these entry modes    o

(e) In view of the emerging economic and political scenario, evaluate IOCs entry into Sri Lanka as wholly owned subsidiary    5

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