Based on assignment 2, you have developed a good understanding of your client’s products, as well as industry and consumer profiles. You also have made a justified recommendation for one Asia Pacific market to enter. For assignment 3, you will develop an in-depth understanding of your country’s market and competitive environment. This will be the basis for an international marketing strategy that will enable your client to make an informed decision on how to pursue their product, price, promotion and distribution strategy when entering the chosen market.
? You will focus on the same product sector/company as in assignment 2
? You will also focus on the country that you recommended in assignment 2
? Develop and justify an international marketing strategy for your chosen market
which should cover the following:
? Market environment summary
? Competitor analysis
? Your client’ market readiness
? Mode of entry
? STPD strategy
? Product strategy
? Price strategy
? Promotion strategy
? Distribution strategy
Please note: Above components of an international marketing strategy are certainly interlinked. For example, based on your competitor analysis or your STPD strategy, you may focus on a specific pricing strategy, therefore link back to points you made earlier. Or another example, the objectives might be influenced by your client’s market readiness and the mode of entry. Presentation: Assignments are to be typed, with one and a half line spacing, and a 12-point font size. Please also allow for page margins of at least 2cm each. Overall, adopt a professional approach.
Summary of the market environment and competitor analysis (max 10 marks each): • Develop an mproved summary of the most relevant aspects of the chosen market environment (based on ssignment 2 and feedback that you received). Furthermore, develop and critically discuss the ompetitive market environment of the major and specific competitors that operate in the chosen market. (quality of market environment summary, quality and depth of competitor analysis) Critical discussion of the company’s market readiness and proposed mode of entry (max 10 marks):
• Critically analyse and discuss the company’s market readiness including a SWOT analysis. Based on this and the market and competitive environment, propose and justify the mode of entry. (depth of analysis, criticality, and justified proposed entry strategy) Development and justification of a STPD trategy (max 20 marks):
• Develop and justify a STPD strategy that the company should adopt for the chosen market. This will demonstrate your in-depth understanding of the consumer market in your chosen country as well as the competitive environment. Resultantly you are developing an appropriate segmentation, targeting, positioning, and differentiation strategies. (quality of STPD approach and justification) Development of an international marketing strategy (max 40 marks; 10 each):
• Develop and critically discuss an international marketing mix strategy for the chosen market based on your research. Focus on the 4Ps, product, price, promotion, and distribution (place). (quality and depth of international marketing mix strategy, critical discussion of each strategy aspect, and justification)
Written report and referencing (max 10 marks):
• Paper is written in a report style and structured to support argumentation and readability; contains correct spelling and grammar; within the word limit. Application of the CDU Harvard referencing style guide for in-text citation and reference list. (clarity of report structure, flow and readability, quality of writing, word limit, correct format of references and reference list)
• Please note: You need to research appropriate data and resources from a range of credible sources. This can include (but not exclusively) country and government information, industry data and reports, reports from respectable consultancy companies, professional media outlets, as well as academic journals and books. The quality and relevance of the used sources is likely to have a huge influence on the quality of your report. If in doubt, ask your lecturer.
Penalties: Late Submissions
• Late assignments will lose 5% of the available marks each day (or part thereof). Plagiarism • You are to identify the sources of any ideas and words in your assignment that are not yours. Unattributed aterials may not be included in the consideration of your assignment and serious cases of academic misconduct will be handled in accordance with the Student Complaints Management Process.
Remedy Kombucha is the health drink company of Australia that provides effective health drink to the customers (Remedy Kombucha, 2018). This company was established within the year 2012 and they have eventually made the effective position within the market. The market that is being selected for the international market is Japan that eventually helps the firm to actively provide the working function within the market. The purpose of the paper is to understand the marketing strategy that is being utilized by the firm within the market and also it provides the view of the working function of the firm within the market. The paper will provide a basic view on the STPD of the firm within the market of Japan.
The objectives are as follows:
- To understand the market entry process of the firm within the Japan market
- To develop a suitable and effective marketing strategy for the product
- To understand the business and the marketing concept of the product within the market
- To develop a marketing plan and the market entry mode for the organization in the international market
Marketing environment Summary
The view that the product Remedy Kombucha might have to face the political pressure within the market. It is the vital factor for the organization to enter the market where the political influence is huge within the country.
It can be seen that the economic condition of Japan is quite strong and for that, it is effective for the business to maintain their production and their sales within the market. The carbonated tea is increasing their share market in various countries like Australia, Canada and Finland.
The product is the beverage item and for that, in the social life, it is a most essential part of the people especially for the young people (Armstrong et al. 2015). This is one of the best product for the party and also for teenage gathering and for that the social factor is essential for the company to enter in Japan market.
In the term of technology, Japan is one of the most developed countries and it is another beneficial factor for the firm to improve their production within the market.
The environmental factor of the country is quite effected for the business as an earthquake is a common issue within the country (Chaffey, and Ellis-Chadwick, 2016).
Despite the natural calamity or the disaster, the country is very much effective for the firm to operate their business in this area.
The marketing environment of Australia is not very much different from that of Japan as it can be seen that both the country is having stable political factor along with the effective legal working condition within the market. Being the beverage company it allows the firm to implement their product in Japan in the most effective way of the way they have provided in Australia. One difference that can be visualized within the marketing environment of the field is that Japan is the country where the business etiquettes are highly essential for the firm. It can be seen that when a company from the western country entry to an Asia-Pacific country the primary problem that they face is regarding the social factor (Baker, 2014). The marketing environment will change drastically in the favor working function of Japan and this would help the firm to maintain their position within the market. The market of both the country is somewhat similar and also different and it depends on the firm for the adaptation of the market condition. The organization is very much active in the field of Japan to provide their working function in the field.
The major competitors of the firm in Japan are Red Bull, Oronamin C, VAAM. Each of the firm operates throughout the different market segment of Japan and provides tough competition to Remedy Kombucha (Jones, and Morgan, 2014). Red Bull is one of the fastest growing energy drinks that has captured a large area of the market segment with the help of its product quality and marketing strategies (Freeman et al. 2015). The R&D department of Red Bull has done exceptional job in evaluating the growth throughout the concerned market areas (Previte et al. 2015). The Japan’s market share of the energy drink was valued at USD 4691.9 million in the year 2017 and it was expected to register They also provide the alcoholic beverages top the consumers and in the present time, they provide a CAGR of 2.9% during the forecast period (2018-2023) (Mordorintelligence.com, 2018).
Oronamin C is quite famous within the market and their brand position is also high. They have the potential to attract the customers and provide them the most suitable and quality beer along with the beverage to drink. The level of competition is huge within the market and for this, the organization is having very much effective for the firm to maintain their activity. There are other competitors also within the market that have a huge impact on the beverage industry in Japan. Each of the competitors like Oronamin C, VAAM of Remedy Kombucha is having effective market share within the world and they are providing suitable and essential products to the market. The organization has to make a strong position in the market where they are having effective and suitable working function within the firm.
One of the strengths of the firm is that the health drink is provided which does not contain any kind of sugar preservatives. It is a fermented RTD tea which increasingly popular for its various heath benefits and this adds up the desired advantage to the firm. Next strength is the Natural products that are used within the health drink to provide better quality for the market. Moreover, the Unique packing which is eventually recall by the customers is an added strength for the firm. the firms also provides organic food and beverage to the market.
One of the crucial weakness of the organization is that the brand image is being damaged due to the alcoholic presence within the product. On the other hand, another issue of the firm to maintain their product within the firm to provide effective working function that create challenge for the firm.
The utilization of the opportunities like increase within the reach of the untapped countries as well as market to boost the Remedy Kombucha is important. One of the other opportunity to the organization is that the market the less known products of the firm within different nation. There needs to be proper development and enhancement of the strategies related to acquisition of the company in the international market. Moreover, product diversity along with the innovation in the beverage products should be utilized by the firm.
Figure: Absolute value of the carbonated team growing in various countries
There are few of the crucial threats like huge competition level in the international market from h various competitors. Secondly, it is difficult to maintain the government rules and regulation of different country. It is recommended that the firm needs to adapt differentiation strategy in order to get the desired competitive advantage over the concerned competitors.
From the SWOT analysis it is evaluated that the company is having the effective working function within the market and they have the suitability to enhance their product within the international market. It can be seen that the organization is market ready for entering the international market and to expand their business.
Mode of Entry
The modes of market entry within the international market are effective for the firm to maintain their entry process and their business in the nation. The condition of the firm clearly represent the facts that the most suitable market entry for them is the Franchising. This is a contract based modes of entry that is being performed by the primary company and the other company in the market (Larson et al. 2015). In this, the primary organization is having the franchise in the market.
In the franchising modes of market entry, it provides the low financial risk along with the low cost of the way to access the market potential of the firm. With the help of this process, the organization can effectively avoid the tariffs along with the restriction on the foreign investment. It is also having the suitable control over the franchise as compared with the licensing (Knai et al. 2015). This is suitable and effective for the firm as this helps the organization to achieve knowledge regarding the local market. It allows the firm to have an effective working function within the market and it is essential for the business to provide valuable market value to the firm.
Segmentation, Targeting, Positioning and Differentiation Strategies
The segmentation of done on the basis of geographic, demographic, psychographic and behavioral approach. According to the geographic approach the organization selected the different market segments of Japan for their development of business in the international market. The organization according to the demographic approach where the selection is done by analyzing the lifestyle along with the income and another factor of the people it can be seen that they generally approach the people of 20 to 40 years of age of females for their product (Mialon et al. 2015).
Their product is made in the form of segmentation so that it became suitable for developing the market and the working process. It can be seen that their product is the health drink and for that, it is based on the psychographic approach where the food habit and the lifestyle of the people are vital to understanding. Basically, the people between the ages 16 years to 24 years will be provided in different segment category and people from 24 years to 36 years will be offer different category and these categories will help in dividing the market segment into smaller ones where the products can be sold easily. The behavioral approach provides the view on the facts that consumers within the market are in search for the superior quality of products and this could help them to maintain their activity in the field (Studdert et al. 2015). With the effective segmentation within the market, it can be seen that the organization is having a suitable working function for the market of Japan.
The target market of the company depends on the products and the ingredients that are suitable for the consumers. It can be seen that the product Remedy Kombucha is the health drink and the company is providing food and beverages to the market and the target areas as per the geographical location would be those people living in South-east Australia. In this, the primary target market of the firm are the people with the age group of 20 to 40 years of females and they should be well educated who have the potential for maintaining their health and the activity within the market (Friis et al. 2014). Moreover, the targeting will be done on the basis of choices and classifying people on the basis of their gender as male will be offered different drink and women will be offered different drink.
The product is basically for the adults and this makes the suitable market for the firm in Japan. It can be seen that the organization have also targeted the businessman along with the party people like the young adults and also the female as their secondary target market for the product (Shortt, and O'Brien, 2016). They can target the audience and the consumers those are health conscious in the most suitable way for their product.
The positioning of the firm in the market of Japan is quite complex and this is due to the facts that the organization is facing huge competition within the market. It can be seen that the big brands are the primary competitors of the firm and this effectively help them to maintain their activity and provide they valuable position within the market. From the competitor analysis, it can be seen that the organization in Japan is going to have the most competitive market due to the presence of big brands within the market (Piercy, 2016). The working function of the firm is quite effective and for this, it can be seen that the organization is holding almost a good position within the market with around 10 to 15 percent of the market share. The fact is that the organization with the development of working process within the firm allow making suitable and effective delivery of the products within the market (Savell et al. 2016). The position of Remedy Kombucha is complex and they have to maintain their effective position within the market with suitability and working function.
The differentiation is the process which describes the working function and the products of one company from the other company within the market. This is the primary source for the competitive advantages of the firm in the market and this also help to maintain the effective position of the firm. The quality along with the sales promotion is the major source of the differentiation within the market (Grant, 2016). Remedy Kombucha is using organic products as their ingredients for the health drink and this is highly effective for the firm to capture various customers within the market. The product differentiation in this phase is that they are providing a drink that is from the natural sources and does not contain any sugar preservatives (Facebook.com, 2018).
Moreover, there will be differentiation in the pricing strategy as to evaluate the selling of the products as per he low, high or medium income of the people (Baker, 2014). It is the essential facts for the firm to maintain their position by targeting those people who s 201eeks luxury products within the market and this also help them to attract the customers of the market (Willems et al. 2018). The sales promotion utilized by the organization is also effective for the firm to maintain their products and the quality of the business for making the brand awareness within the market.
International marketing strategy
The product is Remedy Kombucha that is the health drink which is naturally free from the sugar. This product is effective for the people as this is a health drink and also does not contain sugar can be intake by most of the people (Boban et al. 2016). The product strategy is to make it in such a way that it provides numerous health benefits for the customers within the market and this is effective for the firm to maintain their working function in the market (Facebook.com, 2018).
In this product, the natural, as well as the unpasteurized materials, are being utilized within the drink and this is the primary reason that the product is very much popular within the market (Buck, Rinler, 1993). The organization is providing various range of product within the market like the organic Kombucha that is the sparkling live cultured drink in various flavors like the ginger, raspberry, apple, and lemon. Moreover, different age group of people will be offered different energy drinks as this will help in evaluating the overall selling of the products.
It provides a suitable option to the customers to select the best product and the flavor from the market (Soleimani, and Mirjavadi, 2016). The quantity of the products is provided within the bottles of 250ml then the 330ml as well as the 700ml. The quality along with the packing is effective for the firm to maintain their products within the market and this help to create the brand awareness within the market. The entire market is effective for providing the valuable products within the market and this is vital for the firm to maintain their products as well as development policy within the market. The product is effective for Japan as the people of this country prefer to have health drink and various beverages as their side dish or the party food items.
The product is having the suitable and effective price within the market that allows them to attract the consumers in the market. Differentiation in the pricing will be adopted and various types of discounts will also be provided to the customers. The organization has their price according to the international market and for this, they do not need to change or modify their price to the vast according to the region (Ricca, Stephanie, 2014). The organization is having the most effective and the suitable pricing strategy for their product which help to provide their drink to the vast areas of the nations. According to this pricing strategy the organization is providing the drink in the most suitable and effective price and also the product is organic which eventually increase the quality of the product (Anon, 2013). It can be seen that the organization is using the economy pricing strategy for their products and this help them to grab the attention of all the customers within the market. It can be seen that this strategy is effective for the firm and also for the customers in the market where the economic condition is not well (Mathijssen et al. 2017).
It can be seen that the organization is providing 330ml of the Kombucha drink at the price of 5 dollars that is in the market of Japan it is of 547 yen. This is quite effective for the market to get suitable and best health drink in the field and this is also essential for the firm to maintain their product quality along with the raw materials that are utilized within the organization (Janssen et al. 2015). It can be also seen that the organization change the pricing strategy according to their competitors within the market and also the working function in the firm.
The organization have targeted the young adults of the society and also the people who have the urge for the health drinks. The organization is also utilizing the competitive pricing strategy within the firm that eventually helps the organization to maintain their competitors (Bhalla, 2017). It can be seen that high level of competition is very much impacting the firm to perform their activity within the field. It is quite effective for the firm to maintain their working function within the market with the valuable products.
The organization is placing their steps in the international market and for that, they have to maintain the promotional strategy according to the international level. It can be seen that the organization have eventually adopted various above the line as well as the below the line marketing strategy for the creation along with the maintenance of the brand awareness within the consumer market. The use of organizing various cultural events and sponsoring them will be a useful promotional strategy. Another will be to hire some popular celebrity that will help in getting the trust of the consumers on the product. The organization need to follow the integrated marketing communication policy with the customers for making the strong bond and connection to sale the products in the market (Crane et al. 2016).
This is the best process for the development of promotional strategy within the market. In this, the organization can also effectively use the celebrity for their promotional campaign of the product in Japan that will allow the customers to get connected with the product. Moreover, the organization have launched advertisement that is effective to attract the customers and also provides the view on the health drink that is being provided by the firm (Nair et al. 2015). The promotional strategy that is being utilized by the organization is the advertisement then the television channels along with the radio and also the newspaper. It can be seen that they are providing valuable products to the market with the suitable and effective marketing and promotional strategy which allow the firm to grab the attention of the customers in the market.
The IMC process helps the organization to play with the mind of the consumers that the famous celebrity is also supporting the brand and for that, it have some of the quality of it. This is the most effective promotional strategy that is being followed by the organization within the market to maintain their activity and the working function in the field. This is the best way for the firm to deliver the valuable product in the market and to get the suitable working function for the firm (Yarbrough, 2017). It can be seen that the organization is very much effective for the maintaining their campaign within the market.
The Remedy Kombucha have widespread as well as well distribution policy which makes the products easily available within the market. They have the powerful channel in the international market and this allows the firm to provide the effective products within the market with better quality and availability. The product will be distributed with the help of online and offline partners lie through various retail outlets, shopkeepers and malls in order to make it available for the customers (Morrissey, Brian, 2009). The brand is the Australian brand and they have captured effective marketplace in Australia. The organization is planning for the distribution of their products in the market of Japan.
The firm is having effective suppliers of the raw materials that provide organic materials for the formation of the products within the market and this is the primary facts that the organization need to maintain in their working function of the productivity and the development of the organization (Begunca, 2017). It can be seen that the place and the distribution strategy that is being followed by the organization is quite effective to develop effective business within the market. It can be seen from the various facts that the organization is different making the working process within the market and for that, they are having the valuable market in the place. The level of competition is huge and for that, it became essential for the firm to maintain their supply chain as well as their distribution strategy in the most effective and suitable way. The product is effective for the firm to maintain their activity and this helps the organization to maintain their working function in the market (Ono, and Ono, 2015).
The working function of the firm is very much effective for providing the valuable products in the market and this is essential to develop their business in the market. It is the most beneficial and the effective way for the firm to provide valuable market within the global market like Japan (Hafiz et al. 2016). The distribution level of the firm is quite suitable and this helps them to maintain their working function in the country like Japan. The place and the distribution channel allow the product to develop the most effective and the valuable working function within the market in the better and the suitable way.
The paper eventually concludes the facts that the organization can effectively enter the market of Japan with the help of franchising market entry mode. It is clear from the various facts that this mode is effective and it shows the potential development of the working function within the market. For the organization, the best working function is to capture the market of Japan and provide quality products to the customers. The paper also concludes the facts that the organization is developing suitable working function in the market that eventually help them to maintain the activity in the field and they have developed valuable working function within the market. Furthermore, it is evaluated from the paper that the organization can effectively maintain the firm and their function in the most suitable way which basically helps the organization to develop their b8usiness within the international market.
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