International Marketing
Order Instructions:
Drawing on your understanding of international marketing topics, you are required to produce a report of no more than 3000 words to fulfill the following brief.
Prepare an outline marketing plan for a foreign food or drink product or brand for entry to the UK market (100% of marks)
The foreign food or drink product or brand must not be currently available in the UK. The onus is on the student to ensure that the selected item is not available.
Please note:
The selected product or brand must be suitable for stocking in a supermarket or similar outlet.
Products or brands which is available via direct retail outlets are excluded (eg Dicos)
Assessment Guidelines:
1. Reasons for choosing selected product 5%
2. Justification and evaluation of selected target country 15%
3. Justification and evaluation of selected target market 15%
4. Suitability of proposals including market entry method and marketing mix recommendations 40%
5. Appearance and layout of report 10%
6. Overall impression especially understanding of international marketing concepts and techniques
15%
1 The choice of product must be agreed in advance with me. Any such agreement does not absolve students of the responsibility to ensure that the product is not available in the UK market. For the resit coursework, you must select a new product.
2 It is anticipated that the assignment can be completed from public sources information (eg databases, annual reports, press reports, websites, and promotional literature). If you wish to contact any organisation, then my explicit prior permission must be obtained.
please make sure food product should not be available in UK and not even company available in UK
SAMPLE ANSWER
International Marketing
Company Profile
Arcadie is a renowned fair-trade retail chain of stores founded in France and specializing in production of aromatic and medicinal plants and species. It was established in 1950 by a French homophile organization. They offer an ever-increasing amount of classic and emerging brands that cover a broad range of product categories including organic, biodynamic and fair-trade products. Currently, it is one of the leading chains of aromatic and medicinal plants and species in France and other countries around the world offering organically produced and packaged spices and herbs. More people currently prefer organic products as compared to conventional brands of enhancing beauty and reducing the ageing effects (Renfrow, 2009, p. 24). Currently, Arcadie does not have an outlet store within London or UK. Customers willing to buy Arcadie products can only do so online which may be time consuming since it involves shipping of the products. Arcadie as a renowned cosmetics products company in the world has a substantial client base within UK. Customers have been ordering products online, and the demand has been on the rise in the recent past. This has necessitated plans for the opening of a Arcadie Store in London to serve the UK customers more effectively. The London store will also act as a basis for further expansion within the UK market in the near future.
Marketing Objectives
- To design market penetration strategies for Arcadie products in London
- To increase awareness of Arcadie products by 40 percent by the end of the first year of market entry
- To establish a substantial customer base by 40 percent by the end of the first year of market entry
- To build capacity and capitalize on brand equity for differentiation
- To promote customer engagement and develop a strong relationship to enhance customer loyalty by 20 percent
Market Analysis
Despite the ongoing economic downturn and gloom that has adversely hit most households in the UK in the recent years, survey reports indicate that spending on health and cosmetics have continued to observe a year-on-year increase since 2008. The total market value in the past five years has consequently risen by about 26 percent (Research, 2013, n.p). Another interesting fact is that many consumers now consider cosmetic products to be essential, everyday items. This has in turn boosted the spending within this market in UK in the recent years and analysts project that the trend is likely to continue in coming years. Moreover, the market is also noted to have remained noticeably unaffected by trends towards the discount and value items, one that has impacted other market sectors like clothing by eroding market value to extreme extent, with buyers increasingly on the watch out to obtain products for the cheapest cost possible due to looming financial constraints. Additionally, the interest in natural and ethical cosmetics, luxury brands have played a crucial role in the striving market. In this regard, development and introduction of new products has remained a key feature within the industry, with companies and retailers continuously vying to tempt consumers through new introductions and variants (Research, 2013, n.p).
Recently, as Cervellon and Shammas (2013, p. 90) note the trends have focused on skincare with a considerable marketing activities and media attention undertaken to highlight the need of maintaining healthy skin and complexion as well as prolonging the youthful appearance. Again, premium anti-aging items and organic skincare remedies have equally continued to enjoy growth in recent years. About 60 percent of 25 to 39 years olds are buying a mixture of organic and premium products (Research, 2013, n.p). This reflects the rising disposable income that this bracket are earning and are willing to spend on their health and cosmetics products.
Major Competitors and Market Trends
The conventional cosmetics brands that enjoy the highest penetration are also supported heavily with advertising. These include Rimmel, Boots No 7, Maybelline, L’Oreal Paris, and Avon. Another reason for the high penetration of these brands is the high availability and the fact that they are used by women across all ages. Most other cosmetics brands such as Collection 2000, Revlon, Lancome and Clarins are skewed towards a particular age group and as such fail to connect with ladies across the board (Research, 2013, n.p). Women under 24 years are more inclined to go for the cheaper brands such as Collection 20000, Barry M, and Rimmel. The low-price points allow this group to indulge a love of fashion shade without pressure on their pockets (Cervellon and Shammas, 2013, p. 91). Women over 55 women more likely buy premium brands such as Lancome, Clarins, and Estee lauder, which has a strong foundation around the anti-aging products. Most ladies choose cosmetic that is designed to enhance their natural colouring, rather than one that are meant to be fashionable. Majority prefer to trend in the middle ground just like in fashion and clothing rather than draw attention everywhere. Most 25-39 year olds will look for staying power, and good coverage most probably reflecting their busy lives with careers and lack of time to keep applying make-up throughout the day.
Another emerging trend is on anti-aging skincare products, which continue to enjoy increased investment through product innovation. With the UK’s aging population and the increased preference of organic products, the demand for organic beauty products segment will continue to enjoy increased demand especially on premium and preventative products. Market reports show that the growth in premium anti-ageing consumption is responsible for the overall boost in sales within the sector with a 6 percent year-on-year increase across the anti-ageing category over the past year (Cervellon and Shammas, 2013, p. 92). This is also linked to the view that the aging population is also a category with the largest disposable income and the rise in media attention directed towards the significance of maintaining the youthful appearance for as long as it is possible. Within the anti-ageing sector, there has been another growing trend, the preventative treatments. The preventative products are targeting younger age groups especially younger adults aged 25 to 34 years and the pre-mid-lifers between ages 35 and 44 years (Research, 2013, n.p). This growing proportion is seeking preventive skincare products to avoid premature ageing. Consumer behaviour when purchasing health and cosmetics products depend generally on what they want or need to buy at the time. With organic products, the idea is that they are able to give a good outcome without risks of any health risks posed by most conventional products. Market reports have also revealed that very few will go for conventional products when organic options are available and have the potential for the same outcome.
Target Audience
The marketing will target women of ages from 18 to 65 years and men ages 18 to 65 years. The two groups constitute the largest proportion of customers for health and cosmetics products.
Target Products
The Arcadie products that are to be introduced are to be introduced are organic, biodynamic, and fair-trade products including species, dried mushrooms, teas, herbs, and natural aromas. The spice category consist of garlic, saffron, pepper, tomato, cloves, different mixtures of pizzas, and stinging nettle while mushroom categories consist of chanterelles, morels, and trompette de la mort (Renfrow, 2009, p. 22). These products are currently only available in the UK through online channels, which involve shipping (Research, 2013, n.p). This may take time and considering the high competition with other recognized brands in the market customers might not be willing to undergo the process of online buying. The UK market is dominated by several other brands that are available in many retail outlets (Cervellon and Shammas, 2013, p. 95). Customers willing to buy Arcadie products have to wait for shipment arrangements, which may take time. With an outlet or more within UK, the customers of Arcadie who have been experiencing challenges will be pleased to start buying from the stores.
Surveys have shown that more people currently prefer organic products as compared to conventional brands. In addition, Arcadie products are quite competitive since it is a renowned brand across the globe and recognized for high quality and other benefits that the company offers to their customers. Unlike other brands in the UK market that are not very generous with their customers even in terms of discounts, Arcadie customers can enjoy a wide range of benefits and discounts by buying the products or being loyal to the company through their loyalty program. This program offers clients with special products, all-access pass to personalized products, and exclusive information. The Cosmetics Insider program in Arcadie stores offers clients with exclusive gifts, early access to selected products, and event invitations (Renfrow, 2009, p. 24).
PEST Analysis of the UK market
Political Factors
The major political factors affecting the cosmetics business is the one on Regulation on cosmetic intervention. That seeks to promote high-quality care and empowered public through information. It also provides for an ethical framework within which cosmetic companies should operate (Research, 2013, n.p). These regulations directly affect the company’s UK operations and are likely to shape the way business is conducted.
Economic Factors
The global economic meltdown has equally put the economy in the UK into a deep recession. The deficit ratio on the GDP has, for instance, reached 13 percent in the UK arousing increasingly more fear on the policy makers and investors. Numerous jobs have also been lost in turn jeopardizing people’s purchasing power. The changing trends in the buying behaviour of consumers, where people are not willing to spend on the less essential goods, has a negative impact on the overall purchasing power of customers (Research, 2013, n.p). However, the cosmetics industry is not adversely affected by this trend although effective measures should be put in place to cushion the company of any potential changes in market trends.
Social Factors
Various cultural studies have demonstrated that culture directly impacts the buying habits of consumers. The emergence of the social networking platforms like Twitter has provided the young generation with another medium of interaction. With the UK’s aging population, anti-ageing cosmetic products continue to experience increased demand especially on premium and preventative products. Market reports show that the growth in premium anti-ageing consumption is responsible for the overall boost in sales within the sector with a 6 percent year-on-year increase across the anti-ageing category over the past year appearance for as long as it is possible (Research, 2013, n.p). This implies a business opportunity for the company.
Technological Factors
The nature of the cosmetics industry is in such a way that technology is the major determinant of any company’s competitive edge. As such, Arcadie has strategically placed itself as an innovation hub through continuous innovation and development of new organic products (Research, 2013, n.p). The company has an investment substantially in research and development in commitment to continue developing new innovative services and products to the competitive market.
Market Penetration Strategies
A market penetration strategy is designed to enter into new markets in this case with existing products; Arcadie cosmetics products (Luke, 2013, p. 20). This will be achieved with frequent messages conveying incentives and reaching out to the best potential new customers within London. This will entail diversification of the market on the basis of the market research within London. Gaps identified within the market such as high prices and lack of discounts and other benefits for customers will be used against the existing companies to win the confidence of customers to our products. By introduction of Arcadie stores in London, products will be made available at a much cheaper price than when shipped through customer online requests. Customers will be glad to acquire the same products, but a much lower cost and in most cases get some other benefits in addition. The stores will stock all the products that Arcadie has to offer ensuring customers of the convenience of not having to wait for products to be shipped.
Marketing Strategy
Understand Consumers
This helps the company to identify the unmet needs of consumers and hence come up with a product that will meet them. This enhances the competitive advantage of products brought into the market (Westwood, 2013, n.p).
Analyze Market
It is important to analyze the market as it will guide the company in learning of the levels of competition which are available as well as other threats which can affect the successful implementation of products into the market (Luke, 2013, p. 20).
Research Distribution
The products of a company cannot be placed anywhere in any market. It is critical that the Arcadie conducts research on the various markets available, and identify which one will be perfect to ensure the product thrives.
Define Marketing Mix
Marketing Mix is essential for any product. It plays a crucial role in ensuring that the product does not fail even after it is implemented. It helps a company to avoid extra costs (Westwood, 2013, n.p).
Financial Analysis
This is important because the company will be able to choose which processes will be affordable for the promotion of the product. Some advertisement techniques are more expensive than others (Westwood, 2013, n.p).
Review and Revise
Once a product is taken into the market, it does not mean that it has become successful. Some things change constantly. For example, consumer needs can change from day to day. The company will be better placed to make changes that will ensure it flourishes (Westwood, 2013, n.p).
Positioning Strategies
The positioning strategy will focus on brand positioning strategy, product positioning strategy, and pricing strategy. In terms of the product positioning strategy, the marketing team plans to focus on harmonizing all the aspects of the differentiation strategy and maximizing on the Arcadie brand. By positioning Arcadie as a destination of choice offering a unique and luxurious experience, the team will easily reach out to existing and potential customers with this new message and subsequently win their loyalty.
Market positioning is about the way a firm wants their customers to perceive their product in relation to the perception of the competitors and the marketing strategy adopted to reach this perceptual goal (Luke, 2013, p. 21). Westwood (2013, n.p) contends that market positioning entails giving the message about the product that we are trying to introduce as how we plan to achieve that. Through this marketing campaign, the main aim is to positively influence the perceptions of our customers by developing and implementing strong and deliberate market positioning strategies. The positioning will be implemented in line with the differentiation strategies adopted for the campaign and in relation with how our competitors are positioning themselves.
Positioning takes three basic dimensions; relevance, and differentiation. The pricing positioning strategy will emphasize on allowing for opportunistic situations to prove value and prestige for the long-term relationship (Westwood, 2013, n.p).
Pricing strategies
The main pricing objectives are to maximize profits, to survive, as well as to gain the market share. As such, the pricing strategy ought to aim at squeezing as much money from the sales of the tickets as possible. The price should be such that it is competitive enough in the market and gains the firm a substantial share in the market (Luke, 2013, p. 21). Additionally, clients will be offered discounts and other benefits and privileges, as is the case with Arcadie products in other countries. This will also be reinforced with subtle cues to justify the brand reputation.
Communication Strategy
The marketing strategy will use online sources as the main communication channel to reach out to potential customers such as Twitter, Facebook, Flickr, and YouTube. This is aimed at reaching specific targets identified as the most potential users of cosmetics products, ladies and men between 18 and 65 years. Increased use of internet across this age group will make the marketing campaign a great success. Other posts will be created in magazines, TV, and Newspapers.
Conclusion
When implemented correctly, the marketing plan will by far achieve the intended outcome of Arcadie Company penetrating into the UK market. It will also help in gaining and maintaining new clients, as well as the existing ones. The marketing strategies offer a platform for the company to win new customers and engage them through real-time conversations concerning their products as well as receiving feedback about what excites the customers and what does not. The marketing strategy will be used for the purpose of creating differentiation for the company’s products, communication, distribution, as well as maintaining strong relationships with the customers.
References
Cervellon, M, & Shammas, L 2013, ‘The Value of Sustainable Luxury in Mature Markets’, Journal Of Corporate Citizenship, 52, pp. 90-101.
Luke, K 2013, ‘5 Steps to a New Marketing Plan’, Journal Of Financial Planning, 26, 12, pp. 20-21.
Renfrow, J 2009, ‘Cosmetics’s On the Inside at Arcadie. (cover story)’, Response, 17, 7, pp. 22-28
Research and, M 0007, ‘Research and Markets: Health & Cosmetics Retailing in the UK – Verdict Market Report: Health & Cosmetics Market Expected to Grow By 2.6% in 2013, and Increase by 3bn Between 2012 and 2017’, Business Wire (English), May, Regional Business News.
Westwood, J 2013, How To Write A Marketing Plan, London: Kogan Page
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