Researching the market

SITUATION

Ramon is investigating the market for his products in South-East Asia. He studies a market research report, and has a very interesting offer from Songthai Enterprises.

CHARACTERS

LANGUAGE

Talking business over dinner - in a restaurant

12.1 Document study

Ramon decides to find out about Fred Hagendahl. He uses his portable computer to log onto the UCLA data network , and searches the public data files on college alumni . This is what he finds. Read it carefully. You will need it for 12.2 and other exercises in this lesson.

HAGENDAHL, Frederick Gamlin
b. 30 April 1962; son of James Hagendahl III, financier, and Melanie Gamlin. Educ. Choate, Harvard and UCLA. Grad. BSc Economics, 1983; MSc Business Science, 1986. Joined Universal Data Inc. , Austin, Texas, as Divisional Sales Representative, 1986; promoted Area Sales Manager 1987; transferred to European subsidiary Universal Euro-Data plc , London, England, 1988. Joined Tumblehome Inc. 1990 as Deputy Vice-President, Marketing; Director of Marketing since June 1991.

12.2 Writing practice: personal details

You are a publisher. Fred Hagendahl has just written a book on international marketing which you are going to publish. Write a short paragraph about Fred, which will be printed on the cover of the book. You can get all the facts you need from the UCLA alumni record in 12.1.

12.3 Listen and read

Ramon meets Fred for dinner at a large restaurant in the centre of Bangkok. Listen to what they say. How does Ramon try to start talking about business?

FRED	Well, it was a real coincidence , running into you at the airport like that.
RAMON	Yes. Extraordinary . But I needn't ask you why you're here...
FRED	Now. How are you with the Thai food? Been here before?
RAMON	No, never. But I expect there's a set menu .
FRED	Not for me. Set menus are strictly for tourists. I always go for the à la carte . Now then - which is our waiter?
WAITER	Are you ready to order now, sir?
FRED	Yes, please. I'd like numbers four, thirty and sixty-two.
WAITER	Four, thirty and sixty-two. Thank you. And you, sir?
RAMON	Well, I'm not sure. Perhaps you can advise me... ......
RAMON	Mm, I enjoyed that seafood. I hope I can remember what it was called. Your spicy duck seemed to be a bit too spicy for you.
FRED	No! Not at all. I was raised in New Mexico. We invented chilli peppers. Er, waiter, can you bring me another beer, please?

12.4 Listen and read

Ramon continues his conversation with Fred in the restaurant. Listen to what they say. Does Fred think that Ramon is going to be successful?

RAMON	So, Fred, how are you getting on at Tumblehome? I hear you're Director of Marketing now.
FRED	How did you know about Tumblehome?
RAMON	I dialled up the UCLA alumni public data file from the hotel this afternoon. So you're in the toy business too? How's it going?
FRED	Great! Great! Of course, it'd be even greater if we'd got the merchandising concession for Dolphin Commando . That's a very interesting piece of property.
RAMON	That's right. It's the chance of a lifetime for us . We'll never get another one like this.
FRED	Well, Ramon, don't waste it. Now that I know you're here, I'll be keeping an eye on you , and if it looks like you're going to blow it...
RAMON	Well, when I've worked out what I'm doing, I'm sure you'll be the first to know.
FRED	You mean you don't have any idea what you're going to do with it yet?
RAMON	I know what I'm going to do right now. Waiter! Could I have the bill, please?

12.5 Listen and read

Ramon continues his conversation with Fred in the restaurant. Listen to what they say. Who pays the bill?

WAITER	Your bill, sir.
FRED	No, no. I insist. I asked you here, let me pick up the tab.
RAMON	Oh! Well, in that case.
FRED	You do take credit cards?
WAITER	Thank you, sir.
RAMON	An excellent dinner. Thank you very much, Fred.
FRED	You're welcome. Hey, let's go on to a night club.
RAMON	I'd like to, but I've got an early appointment tomorrow morning. I'm afraid you must excuse me.
FRED	Of course. You're going to need a clear head.

12.6 Listening practice: the games people play

Ramon and Fred are both working for toy companies, and they could be in competition with one another. Listen again to their conversations in 12.3, 12.4 and 12.5, and this time listen carefully to how they say things, as well as to what they say. What things does Fred say to make Ramon feel bad? What does Ramon do and say to show Fred that he is a capable business manager? For the rest of this lesson, listen out for other examples of these two playing 'power games'.

Talking to a marketing consultant

12.7 Document study: looking at a map

Ramon is now at the offices of Thaipro Consultants. Supa is showing him a map and some diagrams that she has prepared for him. Listen to what they say.

12.8 Writing practice: making comparisons

Read 12.7 again. Then study the diagrams and write sentences making comparisons about the biggest, the second biggest and the smallest, for each of the topics below.

12.9 Listen and read

Ramon continues his meeting with Supa. Listen to what they say. Why does Ramon want more figures? Why is Supa cautious about the figures for the future?

RAMON	But I thought that this survey was supposed to cover Thailand, not the whole of South-East Asia.
SUPA	That's right! This is just to set the country in its market context . However, we believe that a broader view of the market may be needed - I'll have some more to say about that later ... Here we see the population of Thailand analysed by age - you notice the very high proportion of young people - and on the right by social classification - basically that means by occupation and disposable income, per head.
RAMON	These are very interesting, but we would need to compare them with similar breakdowns for, say, Spain or the United States, and if we're to spot any trends we'd also need disposable per-capita incomes for Thailand in previous years.
SUPA	Yes, of course! All that information is available in the rest of the report. What I would ask you to remember is although we've extrapolated the figures over the next five years , under conditions of high inflation, reliable forecasting isn't easy.
RAMON	No. It doesn't make my decisions very easy, either!
SUPA	Obviously you want to consider all this data at your leisure . All the statistics and diagrams - together with some supplementary data - are in our report. In addition, we've prepared a series of appendices on this floppy disk - it's really a series of spreadsheet files which you can interrogate or browse through . You can amend the figures and re-calculate, whatever you want.
RAMON	Great! That should keep me busy. I'd like to talk to you again when I've digested this lot . How about Thursday?

12.10 Reading for key words

Find the words or phrases in 12.7 and 12.9 that show you the following:

12.11 Find the word: marketing jargon

Read the text below on marketing. Write a word from the box to fill each of the gaps.

Any company that enters a new overseas market needs to know as much about that market as it can. It looks first at the country as a whole, the location of the major (a) centres and the (b) of the population that lives in them. The country's economic situation is important: its GDP, or (c) (d) product, and the (e) of GDP over a period of time, expressed as a percentage and measured in real terms - that is, allowing for (f) . But the product is going to be bought by individual (g) , so the company also needs a (h) of the population by age, sex, income and occupation. Most countries have a system of (i) classification. Marketing people usually want to know, not gross income, but (j) income per head. They also want the figures for several years; if they can identify (k) , they can (l) these into the future and (m) what people will be earning and spending a year or five years from now.

Conversation at a private function

12.12 Listen and read

Ramon goes to meet Mrs Sombat. She is one of the contacts that Jack Lytton gave Ramon, and she has asked him to her house for dinner. Listen to what they say. How do we know that Mrs Sombat is a successful business manager?

RAMON	How do you do, Mrs Sombat. It's very kind of you to invite me to your house.
MRS SOMBAT	You are very welcome, Mr Figueras. I am always glad to meet a former student of Professor Lytton. I understand this is your first visit to Bangkok? I hope you are enjoying yourself and finding it interesting.
RAMON	Yes, it's fascinating. And I'm also learning a great deal - which of course is what I came here for.
MRS SOMBAT	Yes, we must discuss that. First let me offer you a drink. Champagne?
RAMON	I'd rather have a soft drink , if I may. Some fruit juice perhaps, or iced tea - or is there a popular local drink?
MRS SOMBAT	Ah, I know! I'll get you some passion-fruit juice. This used to be my husband's favourite drink when he came back from the office. Very refreshing.
RAMON	Is that your husband's portrait?
MRS SOMBAT	Yes. He died five years ago. I took over the business - Songthai Enterprises - then, and I have been able to keep it ticking over since.
RAMON	Jack Lytton told me you've doubled the turnover and diversified into three other industries.
MRS SOMBAT	Well, you have to keep busy, don't you? Jack Lytton told me that you occupy yourself with making toys, on quite a large scale.

12.13 Listen and read

Ramon continues his conversation with Mrs Sombat. Listen to what they say. Does Mrs Sombat think that Ramon will find things easy or difficult?

RAMON	I must say, that was the most delicious curry I've ever tasted.
MRS SOMBAT	Good! I'm glad you enjoyed it. Now tell me more about your marketing strategy for Thailand . It all sounds very exciting. My grandchildren in Wisconsin are Dolphin Commando fans, and I think the show is going to have terrific impact here. But you're going to have your work cut out to exploit it.
RAMON	Yes, it's a tremendous challenge, I just hope I don't blow it.
MRS SOMBAT	You won't blow it, but you've got some hard times ahead of you - and some tricky decisions.
RAMON	Well, thank you for a very pleasant evening. I'm most grateful for your hospitality.
MRS SOMBAT	It's a great pleasure. Before you go, I'd like to suggest something to you. You needn't give me an answer straight away.
RAMON	This sounds very interesting - what's the suggestion?
MRS SOMBAT	How would you feel about my company acting as your agent in this country?
RAMON	That certainly is interesting! I'd like to think it over, if I may?

12.14 Reading for key words

Find the words or phrases in 12.12 and 12.13 that show you the following:

12.15 Speaking practice: offering, accepting, refusing

Listen to this conversation. Then listen again and speak the part of the man.

12.16 Speaking practice: thanking and leaving

Listen to this conversation. Then listen again, and speak the part of the man.

12.17 Document study

When Ramon returns to his hotel room the next day, he finds some documents from Mrs Sombat. Read through them carefully. Make a list of what Songthai are offering to do. Make another list of what Tortuga would have to do.

DRAFT AGENCY AGREEMENT

1. The parties : Juguetes Tortuga SA (the principal); Songthai Enterprises (the agent).
2. Territory: Thailand initially, and subsequently whatever other areas may be agreed between the parties.
3. Terms:
   3.1 It is a sole and exclusive agency, i.e. Songthai is not to represent any other toy company, Tortuga is not to deal with any other agent in the territory. If you deal direct with any customer in the territory, you will be liable to pay the normal agent’s commission - see below.
   3.2 Songthai will actively promote your business, supply you with market information, and undertake advertising campaigns, product launches, etc.
   3.3 You will provide us with samples, etc. as required and will meet all reasonable expenses for advertising and promotion and will reimburse us for travelling and other expenses necessarily incurred.
   3.4 We will provide copies of all orders, invoices and correspondence, and will send details of orders, sales and payments at the end of each month.
   3.5 We will collect payments on your behalf and make a settlement with you at the end of each month through our bank.
   3.6 We will chase late payers and may, at your expense, use the services of a factor or debt collector.
   3.7 Our commission will be at the rate of 10 per cent, to be calculated on prices f.o.b. Santander or other Spanish port . Commission will be deducted from our monthly payments to you.
4. The agreement shall run for two years in the first instance , and may be renewed. It can be terminated by either party giving 3 months' notice in writing.
5. The agreement shall be interpreted in accordance with the laws of Thailand.

Dear Mr Figueras

I enjoyed talking to you at dinner last night. I’ve been thinking about your situation and I’d like to make a proposal to you - that I, or rather my company, should become your agent in Thailand. At the moment we are in the motor trade, building construction, warehousing and distribution, and scientific instruments - so toys, at least, wouldn't clash with our other interests. I’ve tried to draft an agency agreement (enclosed) but this is just to put you in the picture ; we would of course get a lawyer to look after the formalities . I look forward to hearing what you think of the idea.