Marketing Skateboards in Guangzhou

The target market for skateboards in Guangzhou will be teenagers. Teenagers around the world they have similar likes and dislikes. Teens almost everywhere buy a common gallery of products. Persons in the 13-to-19 year old age bracket will comprise the primary target market for the skateboards to be exported to the PRC. Those persons in the relevant age bracket residing in Guangzhou will be targeted. Teenagers in families with annual incomes in excess of (6300 per annum will be targeted.

First year sales of the skateboards in Guangzhou are projected at 25,000 units. This sales level is a mid-level estimate. First year profit expectations for the skateboard sales in Guangzhou are US$250,000. This profit level estimate is the net return to the venture on sales.

An equity joint venture relationship will be established with a wholesales located in Guangzhou. An import agent will be contracted to bring the skateboards into the PRC from Hong Kong. Warehousing of the skateboards will be provided by the Guangzhou-based wholesaler with whom a joint venture relationship will be established.

The retail price of the skateboard marketed in Guangzhou will be US$100. The anticipation is that before Chines income tax profit will be US$10 pe

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l selling will not be employed in the venture to market skateboards in Guangzhou. 4. Other Promotional Methods Other promotional methods will not be employed in the venture to market skateboards in Guangzhou. D. Distribution From Origin to Destination Distribution factors are covered in this section. Port selection, mode selection, packing, documentation, and freight forwarding are addressed. 1. Port Selection The port of origin will be San Diego, California, as this city will be the location of the production facilities for the skateboards. The destination port will be Hong Kong, as this port is the gateway to Guangzhou. 2. Mode Selection Ocean freight will be used to transport the skateboards from San Diego to Hong Kong. Rail will be used to transport the skateboards from Hong Kong to Guangzhou. 3. Packing The skateboards will be packed in foam and secured in wooden crates. This packing will be used to preclude damage to the skateboards in transit. 4. Documentation Required Before imported goods can enter the country, Chinese customs officials must examine and approve all import documents (Unlocking 21). Companies that import must obtain letters of credit (issued mainly by the Bank of China and other spec
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Approximate Word count = 2965
Approximate Pages = 12 (250 words per page)