Import Methanol from Trinidad and Tobago. Coursework

IMPORTING METHANOL FROM TRINIDAD AND TOBAGO
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IMPORTING METHANOL FROM TRINIDAD AND TOBAGO
1 Product – Tariff Number
Methanol also referred to as wood alcohol is a versatile chemical. The product is used for several industrial purposes. Methanol is also a prevalent in our everyday lives (Seddon, 2017). Consequently, it properties such as efficiency as an energy carrier has increased its use as a fuel in many factories and electricity production. Due to the potential of the product as an environmentally sound fuel, its demand has increased in the recent years. Additionally, the new era of clean energy has led to its growing demand as methanol is the future of new source of energy( Seddon, 2017).2.0 Target Markets – portfolio of Trinidad and Tobago (country's profile)
The Island of Trinidad and Tobago are found between the Atlantic Ocean and the Caribbean Sea. The state has the largest economy in the English Speaking Caribbean Society. Moreover, it is also a highly developed country. The reason is that its GDP per capita is over fifteen thousand United States dollars. Consequently, the country has a yearly GDP of US$22 billion. The country ‘s population is estimated population to be nearly 1.4 million. Therefore, it makes it the third most populated country in the region (Braveboy-Wagner, 2010).
Nevertheless, the country has experienced numerous challenges over the years. However, despite its many challenges, it is shielded by an enormous foreign reserve and sovereign wealth fund. Trinidad and Tobago exports huge amounts of ammonia and methanol. Lastly, it is the sixth largest exporter of liquefied natural gas (LNG) in the world (Braveboy-Wagner, 2010).
1 Market Entry Requirements
The best way to enter the country’s market is actually visiting the market. Additionally, an individual can also make personal connections with the local partners, agents as well as distributors. There are no legal requirements in the country and therefore one can directly purchase products from the country. The reason is that the Trinidad and Tobago government is currently trying to support the growth of SMEs and reduction of high unemployment rates (Braveboy-Wagner, 2010). Additionally, one is not required to pay any exercise duty for goods imported from the country.
Visiting the country by the company’s manager is essential for the development of links with existing suppliers. furthermore, through the established e-platform the company could directly purchase the product from the country. Once the product has been sourced from the country it will be transported to the sea port. After the transported it will be moved to the United states via the sea. The importer is required to present several documents to clear their products from customs. The documents include; import license, purchase order, Bill of lading and commercial invoice. 4.0 Import Penetration Strategy
In the United States, the market size for methanol is forecast to grow to over 8.4 million metric tons by the year 2027. The increase in the demand is due to demand for cleaner energy as well as population growth. Therefore, due to the competition from oil, the company will penetration strategy in the United States will be niche marketing. 5.0 Import Marketing Strategy
The Niche Marketing strategy is where a firm focus on certain clients. In this case, it entails focusing on potential customers whom they believe would best benefit from their services. Hence, in a market like the US that is full of competitors, the best entry strategy is the focusing on one group instead of marketing to the entire population (Parrish, Cassill, & Oxenham, 2006). 5.1 Product or Service
Methanol is a versatile chemical. The product is used for several industrial purposes as well as a prevalent in our everyday lives. The product will be directly purchased in its raw form and sold the same. The product will be sold in industries for various applications. Furthermore, it will also be synthesized into biofuel where it can be sold as biodiesel for use in industries and vehicles. The company will also establish a research and development plant where the various use of methanol can be studied. 5.2 Price
Price is major component that makes up the marketing mix. All the four components must align with the price set by the company. The reason is that the pricing strategy and profits are mostly influenced by products and services that are sold, the...