International product policy: development and implementation Done by: Hnatenko O.O. Scientific supervisor: Kuzminov S.V., Doctor of Economics, Associate Professor

Plan Section 1. Theoretical aspects of commodity policy on the overseas markets Section 2. Analysis of international commodity policy of the company. Section 3. Implementation of the company’s commercial policy on the international market.

The purpose of the diploma research: developing a comprehensive strategy to enter the international market for sole proprietorship Hnatenko. There has been done research of the methods of strategic planning and finding the most effective way to enter the foreign market. The object of the investigation: Sole proprietorship Hnatenko The subject of the investigation search for ways of improving the implementation mechanism of formation of commodity policy while entering the international market with a more detailed study of the main components of the company’s international commodity policy and determination of their role in international business operations of the enterprise

The topicality of the problem The way of doing business on the international markets requires application of new methods of foreign trade which will ensure effective management. When a company enters a foreign market, it faces many challenges: development of an effective strategic program, selection of a method of entering the foreign market, search for a foreign partner for cooperation; consideration of risks arising in foreign trade activity. These problems are the most acute.

Sole proprietorship Hnatenko that is engaged in the production of building and finishing materials has been actively working on the Ukrainian market in the sphere of building materials since 1997.

While doing research there has been conducted SWOT-analysis of the enterprise which has defined that sole proprietorship Hnatenko has had enough forces and prospects for overcoming the state of the prolonged crisis and normalization of the production and financial situation. Strengths: 1.A wide range of products. 2.Highly qualified production staff. 3.Strong relationships with suppliers Weaknesses: 1.A low level of staff motivation. 2.Absence of innovation. Opportunities: 1.Growing opportunities for advertising and marketing management. 2.Expansion of the market through the provision of additional services. Threats: 1.The unstable political situation in the country and imperfect laws which are often variable. 2.Emergence of new competitors in the market.

The promotion policy is an element of the strategy of entering the overseas market. sole proprietorship Hnatenko has large difficulties in preparation and realization of its publicity and informative strategy. Standardization is a method which allows saving money on the advertising campaign. To advertise the products it will be effective to participate in holding specialized exhibitions and tenders in Ukraine and beyond its borders. The best variant can be an internet-shop which is aimed at overseas markets. Nowadays almost everyone uses the internet resources, especially abroad.

Budget itemTotal costShort description Organizational costs$700 - $900 the cost of opening a bank account, making the minimum start-up capital, establishing a "bank-client" electronic system Purchase of office furniture$700tables, chairs, kitchen stuff Purchase of computers and office equipment for the workplace $4500workplace, multifunctional devices, fax Installation of network and hardware setup $300 Purchase of a specialized server for the online store and placing it at the provider over $1300 Development of a website of the online store (showcase and administrative interface) $3000 development of the directory where the prices are quoted and there is a possibility to place an order Short-term advertising of our storeover $500 per month Total$11 100

Budget itemTotal cost The subscription fee for telephone lines and Internet access$40 - $60 The subscription fee for placing the store on the site of the server provider $150 Wages of personnel$2400 Office expenses$200 Total$2810 If the enterprise follows such calculations, then to achieve profitability and get net income of $1000 per month the internet shop needs to get a monthly income which is almost twice as much as the net one, and consequently is about $4000 taking into account taxes. It is also necessary to calculate the payback period of the online store. The first deposit will be $ and for a year the shop will bring net income of about $12000 if the calculations are faithful. Consequently, $ / $12000 = In other words, the shop must cover its cost approximately after 1 year and 2 months.

Activity of sole proprietorship Hnatenko is directed on the production of custom-made raw materials and building materials. Therefore, emphasis is made on organization of exhibitions and promotional purposes in the above mentioned countries. Due to the promotional activities information about raw materials of Sole proprietorship Hnatenko will be available for potential buyers.