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Essay International Marketing Strategy

Executive Summary

Unhealthy eating habits and unhealthy diets have become a subject of increased concern among many individuals in the society. This can be attributed to the increased health related issues such as heart diseases and poor dietary standards. With such concerns, many consumers have become keen on the type of foods they consume thereby leading to the growth of a niche market. Spanish Olive Oil Exporters is dedicated to the provision of new alternatives that will enable health-conscious consumers to access the highest quality Olive oil products while at the same time being able to maintain their healthy eating standards.

Spanish Olive Oil Exporters is a new innovative company committed to satisfying the needs of consumers without compromising the taste and quality of Olive Oil products. At Spanish Oil Exporters, the company is able to fulfill this objective by delivering Extra Virgin Olive Oil, Extra Light Olive Oil, and Organic Olive Oil to local and international markets. The company aims to supply Olive Oil brands to targeted consumers in the UK market. Through an exclusive contract with London Oil Plc., Spanish Oil Exporters will be privileged to obtain a competitive market advantage in the UK market. Olive Oil products distributed by our company are of superior quality coupled with its versatility characteristics that makes it ideal for different purposes. For instance, Spanish Olive Oil is suitable for cooking, for beatification, and for health purposes.In the UK market, Spanish Olive Oil Exporters aims to distribute its olive products through direct sales, retail distributors, health clubs, specialty stores, and Spanish Exports online stores.

The marketing team that is made up of highly skilled and motivated personnelhas designed a well-crafted marketing mix aimed at reaching all consumers in the identified target market. Equally, the marketing team, though research, has studied the marketed, and analyzed the competitive strategies used by possible competitors. Even though the UK Olive Market holds huge potentials, there are an increased number of companies importing olive oil. Currently, the major competitor is Unilever UK. Speaking of financial issues, the budgetary outlook for Spanish Oil Exporters is exceptionally promising because the financial projections show a positive outcome, with high gross margins. It is with this outlook, major company strengths, and dedicating goals that Spanish Oil Exporters aims to prosper and develop a sustainable business in the UK market.

Company Overview and Objectives

Spanish Olive Oil Exporters is a leading olive producing and distribution company based in Spain. It is involved in the production and distribution of quality olive oil products suitable for cooking, health purposes and for cosmetics. Olive Oil products distributed by the company include Extra Virgin Olive Oil, Extra Light Olive Oil, and Organic Olive Oil. Primarily, the company intends to enter the UK market using the merger/collaborating market entry-strategy with London Oil Plc.The company has more than 20 years of experience in the oil industry and this act as symbol of prestige and quality for the company.

Spanish Olive Oil Exporters is dedicated to the provision of new alternatives that will enable health-conscious consumers to access the highest quality Olive oil products while at the same time being able to maintain their healthy eating standards. Equally, the company aims to develop positive working relationships with consumers and distributors in order to build long-lasting partnerships and sustainable businesses. The company also aims to continue producing superior Olive Oil products and engage in sustainable and sustainable business practices. Finally, as a part of its community social responsibility, Spanish Olive Oil Exporters aims to participate in many charitable foundations and community health-based functions that reflect the company’s dedication to promoting a healthy living.

Product Description

Spain is the world’s leading producer and distributor of Olive oil. This can be in part due to the favorable climatic conditions suitable for the cultivation of Olive oil and in part due to the country’s ability to cultivate different varieties of Olive oil characterized by different flavors and tastes. Olive Oil is suitable for cooking, health, and beauty. Speaking of cooking, Olive oil is tasty, aromatic, and gives meals a sweet flavor. For healthy purposes, Olive Oil is composed of several active ingredients that help the human body to reduce the risks of common diseases. For beauty purposes, Olive oil is suitable for cosmetic functions such as adding a healthy and radiant appearance to skin, hair, and nails.

Situation Environment

PEST Analysis

This entails the analysis of external factors in the macro-environment that are beyond the control of our company but they also affect all companies(Kotler, & Keller, 2009). These external factors can present themselves as both threats and as opportunities to the company. For this reason, the PEST analysis of the UK will provide Spanish Oil Exports the essential tool for developing marketing strategies and strategic plans to further its Olive Oil business in the region.

Political/Legal

The Oil industry in the United Kingdom is highly influenced by government laws and regulations that most originate from health concerns and the governments need to regulate business activities. The need to satisfy the minimum health standards and comply with the requirements in terms of ingredients is a force that must be considered before setting up the business. Other influential factors that might affect the business activities ofSpanish Oil Exports include taxes, subsidies, and duty.

Economic

The oil industry is plays an instrumental role in the economy of the United Kingdom. Other than contributing to the growth of the economy in terms of GDP, the Oil industry creates employment opportunities to other sectors. Growth abilities of companies, entering intostrategic alliances and mergers, and expansion prospects all depend on economic factors within the UK. Consumers’ consumption patterns also depend on their income levels.

Social/cultural factors

The increased trend of eating habits and unhealthy diets becoming a subject of concern among many individuals in the societyhighly influences consumption patterns for many consumers. Spanish Olive Oil Exporters understands this phenomenon and aims to target our customers based on this line of thinking.Customers’ tastes and preferences for quality products, and the prestige associated with the consumption of Olive oil products are other factors that will encourage the consumption of Olive Oil products. Younger generations are ready to spend more money on cosmetic products while older generations are more conscious about their health eating patterns.

Technological factors

Technological advancements play a critical role in industrial production and as well in hybrid production of agricultural seeds. The increased usage of the internet will bring positive effects as far as information search and online purchases are concerned (Strokes, 2008). Other technological factors that enhance the UK market include well-developed E-commerce market, and well-developed infrastructural facilities that will increase production efficiencies(Strokes, 2008).
SWOT Analysis

These analyses refer to tools used for auditing the company and its ability to focus on key issues within the surrounding environment(Kotler, & Keller, 2009). As such, the SWOT analysis identifies the strengths and weaknesses of Spanish Olive Oil Exporters as well as the threats and opportunities that might stand on its way.

Strengths

  • Spanish Olive Oil Exporters is guided by values, principles, and goals that are aimed at realizing a sustainable future
  • All business activities are targeted towards satisfying the health needs of the client
  • The company delivers Olive oil products of the highest and fines quality
  • The company has a variety of Olive Oil products
  • The company will benefit from the developed distribution system due to its alliance with Unilever UK
  • Excellent professional skills and abilities of the marketing team

Weaknesses

  • Does not have much weaknesses
  • Lack detailed understanding of the UK market
  • Depends on a strategic alliance and hence, majority of decisions have to be consulted
  • Amalgamation of cultures

Opportunities

  • The growing Olive oil industry in the UK
  • Availability of expansion opportunities for its Olive oil products
  • The willingness to satisfy the needs and aspirations of clients which are constantly changing
  • Economies of scale from the strategic alliance with Unilever UK

Threats

  • Increasing competition from Olive Oil imported from Italy and Greece
  • Reserved buyer behavior due to different cultures
  • Black market trading of unpackaged oil can impede the market for Olive oil marketed by the company

Market Analysis and Trends

The consumption of Olive Oil in the UK has been on a steady increase over the past few years. All the 30 million liters of Olive oil consumed in the UK in 2010 were imported and revenue collected (in excess of £160 Million) from the Olive Oil industry surpassed the total amount spent on vegetable oil (International Olive Oil Council, 2011).Factors that promote the increased consumption of Olive oil in the UK can be attributed to the health, nutritional, and environmental benefits of Olive oil production and consumption. Consumption trends in the UK also show that Extra Virgin oil is the most consumed type of olive oil with increased consumption in other brands of olive oil. The negative publicity from the media regarding high saturated fats and chemically produced cosmetic products drives consumers towards the healthier oils and less risky cosmetic products such as products produced from Olive oil.

Specific Markets and Segments

The UK olive oil consumption market is predominantly mixed, and therefore, Spanish Olive Oil Exporters will target several individuals ranging from families to single individuals. For marketing purposes, all demographic segments will be targeted (Young and old). This increases the level of attractiveness. However, the unique feature is that the potential customers for our product are consumers who value their health and are conscious about their eating habits. Other than the health aspect of our customers, out targeted market will be segmented according to the financial ability of customers to pay for the olive oil products.

Competition

Nearly, all olive oil products in the UK market are imported and therefore, Spanish Olive Oil Exporters expects to face competition from other external suppliers. However, the major competitor will be Unilever UK, which is an internationally recognized company in the production of consumer products. The competitive advantage of Spanish Olive Oil Exporters lies in the health concern that drives consumers to consume the right products that suits their health. The company’s products are also highly versatile.

Marketing Objectives

Marketing objectives: SMART

The marketing objectives for the Spanish Olive Oil Exporters are developed using the SMART principle. Other than being specific to Spanish Olive Oil Exporters, the objectives are measurable, achievable, realistic, and time specific(Kotler, & Keller, 2009). These principles are critical for helping the Company to achieve success in the UK market.

    • Profitability objectives are aimed at ensuring the company achieves a 25% return on the capital employed by the end of 2013. This is one of the prime objectives of any business initiative
    • Market Share objectives entails gaininga 30% market share in the target market within the UK industry after 2 years. This is essential for enabling the company to enjoyed benefits associated with increased market share.
    • Financial Objectives of Spanish Olive Oil Exporters involves obtaining annual sales averaging of £2 million after 2 years of operation. In addition, the company aims to generate a gross margin upwards of 75% and net income exceeding 25% of sales by the fourth year.
    • Branding objectives entail making the company’s products the preferred choice among UK consumers

Marketing Strategies

The Product Strategy

As earlier mentioned, Spanish Olive Oil Exports intends to supply and distribute a range of olive oil products in the UK market. These products include high quality brands of products made from Extra Virgin Olive Oil, Extra Light Olive Oil, and Organic Olive Oil. The unique thing about these products other than its high quality is that they are natural, healthy, and versatile. This gives the company a competitive edge over the competitors.

The Place Strategy

Industry analysis and increasing trends in the UK oil industry coupled with the increased consumption of Olive Oil makes the UK an ideal market for products produced and distributed by Spanish Olive Oil Exporters. Equally, the situational analysis of the UK Olive oil industry has revealed the strengths and opportunities that must be capitalized by the company.

The Promotion Strategy

Spanish Olive Oil Exporters aims to distribute its olive products through several distribution mediums. These mediums include direct sales, retail distributors, health clubs, specialty stores, and Spanish Exports online stores. Speaking of communication and advertising channels, the three main approaches that will be adopted by the company include the internet (company’s website and social media networks), the print media (magazines, billboards and newspaper), and TV commercials (Kotler, & Keller, 2009).

Pricing Strategy

The prices for the Olive oil products delivered by the company will be dependent upon the quality of the product, the quantity, and the prevailing market prices. However, the pricing will be done in a competitive manner such that it does not scare clients in addition to compromising the quality of the product.

The action plan

A management team consisting of qualified, highly motivated, and professional individuals will undertake marketing initiatives of the company. Every member within the team holds wide experience in the Olive oil industry coupled with his or her university education. Additionally, all members have specific roles to play and hence, they are ready to undertake their responsibilities according to acceptable standards. They include:

      • Janssens Shelly- Marketing Manager who will be responsible for guiding all the marketing activities
      • Kakox Yohan – head of marketing operations
      • Nimo Wairimu- In-charge of sales and pricing related strategies
      • Sergio Morientes – Will head the promotions activities and strategies

Other action plans guided by extensive research includes building strong relationships with customers by examining and analyzing their needs, increasing the supply of products, and expanding operations to smaller cities throughout the UK after 2 years of operations or upon the recommendations from the operations manager whichever comes first.

The Marketing Budget

Marketing Expense BudgetSeptember-December 2012January-April 2012May-August 2012Total
Advertising£13,000£11,000£5,000£29,000
Websites£3,000£1,000£2,000£6,000
Promotions£1500£1,000£0£2,500
Public Relations£0£5,000£10,000£15,000
Posters and Catalogues£3,500£2,000£500£6,000
Total£21,000£21,000£17,500£47,500

Monitoring and evaluation

Quarterly sales targets will be established and equated depending operational areas. Equally, tactical marketing programs will be modified to reflect the efficacy off concepts identified in the marketing mix. The company through the management believes that believe that Spanish Olive Oil products will be profitable and satisfy the given set of goals and objectives.The concluding believes for this marketingplan entering the UK market will be a viable investment for Spanish Olive Oil Exporters.

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Essay on INTERNATIONAL MARKETING

The most important task of strategic management is to establish and maintain a dynamic interaction of the organization with its environment, designed to provide it with a competitive advantage, which is achieved by providing a product to the customer. Therefore, marketing objective occupies the position of one of the leading strategic management functions. For a number of organizations, depending on what goals they pursue and what strategy they implement, marketing is a key feature to ensure their successful operation. Moreover, companies turn to a management philosophy, according to which a company must focus its activity completely on customer needs (market driver management) and not try to make “convenient” products trying to sell it. Therefore, marketing becomes something more than just a separate function of management.

Marketing is increasingly used all areas of business activity of the company. Thus, marketing plays a special role in the strategic management, significantly beyond the scope of functions of sales and demand analysis.

Local marketing research

Today, setting new ambitious goals, every company faces many problems inherent to the market economy. The real problem of doing business has become the problem of finding effective demand. It is not enough to only produce goods, it is necessary to organize the work in such a way to make a profit from the sale of this product.

Local marketing research is a systematic search, collection, analysis and presentation of data and information related to a particular market situation, which the company faces in its country (Lipovetsky, Magnan, & Zanetti-Polzi, 2011).

The objectives of marketing research:

Searching goal – collecting information for a preliminary assessment of the problem and its structuring;

Descriptive goal – description of the selected events, research subjects and the factors affecting their condition;

Causal purpose – check of the hypothesis of a causal relationship;

Test objectives – selection of promising options or assessment of the correctness of decisions;

Forward-looking goals – prediction of the state of the object in the future.

The principal feature of marketing research, distinguishing it from the collection and analysis of internal and external current information, is its target aim to solve a particular problem or set of problems of marketing.

Each company determines the topics and scope of marketing research according to its capabilities and needs in marketing information, so the types of marketing research conducted by various companies can be different.

Iinternational marketing reserch

The term “international marketing research” refers to the collection, analysis and reporting on clearly defined problem of the operation of companies in foreign markets. International marketing research of different depth and breadth of coverage and the underlying information base are the base for all decisions (Webster, & Lusch,  2013).

Before entering international markets and creating information marketing base, a company should collect information about the overall status and trends:

1) industry of manufacturing products,

2) countries, which are producers and consumers of these products,

3) individual manufacturers, consumers and resellers.

The study of international markets is based on the following characteristics:

1) products (industries, types of products, manufacturers, methods and forms of sales and service of products)

2) consumers (industries, types of products, manufacturers and buyers, goals and methods of consumption)

3) location of the market (region, country, territory).

On the first stage of international market research, a company should study the broadest possible segment, that is the world market of the product. It must collect information about what companies in which countries produce, trade and consume this type of product and services (Mihaela, 2010).

The similarities and the differences between local and international marketing research

Local and international marketing research are very similar, as they have almost the same goals and objectives, as well as methods of conducting research. Both types of studies provide a comprehensive study examining objects such as the market, consumers, and competitors. Local and international marketing research have the same scheme of marketing research, which involves the following steps:

  1. Defining a problem, objectives and methods.
  2. Developing research plan.
  3. Data collection and analysis.
  4. Interpretation of the results and giving them to the management of organization.

Differences between local and international marketing research is that the evaluation of the international marketing environment is carried out mainly from the standpoint of economic purchasing power of the population in various countries, the levels of its income, industrial structure, orientation of the economy (agricultural, raw materials, etc.), overall level of economic development (Levy, 2012). Nevertheless, a potential exporter or importer should explore political and legal environment of the country: stability of government, its laws in relation to the economic sphere (quotas, restrictions, confiscation of property of foreign businessmen, foreign exchange controls). This may also include the availability of market information, organization of statistics, work of customs and tax authorities. Social culture of the country should also be a subject of international marketing research. Local marketing research does not include these questions.

The steps of marketing research

Marketing research process consists of several stages.

  1. Defining the problem and research objectives. It is difficult to start any research before the problem is determined. Stage of recognition and definition of the problem is the first step in the process of finding solutions. Failure to comply with the tasks of sales, a growing number of unpaid bills and low turnover are the signals or symptoms of more serious problems. Researchers should recognize and identify the problems behind these symptoms. Incorrect definition of the problem can lead to wrong decisions. Objectives are derived from market research to formulate the problem. Objectives should be clearly and precisely defined, and be sufficiently detailed, it should be possible to measure them and evaluate their level of achievement.
  2. Definition of the objects of research.

When a problem is defined, it is possible to formulate the research problem. As a rule, the study includes a solution to one of the four objectives: to develop, describe, test hypotheses and predict. The study is carried out to develop when you need to get more information on the issue and more clearly formulate hypotheses. Research to describe the problem is held when it is necessary to describe objects such as market, define their characteristics based on statistical data. If the task of marketing research is testing the hypothesis of relationship between the independent and dependent variables, companies conduct research to identify the causes of the emergence of the problem.

  1. Development of a research plan. The creation of a research project is perhaps the most important step in the process of marketing research. Research project is a general plan of marketing research. It defines the requirements for a variety of data and its collection, processing and analysis. This stage includes not only the choice of certain methods of marketing research and development of specific tasks within the market research. At this stage, researcher determines the need for information, type of required information, sources and methods of its collection.
  2. Data collection. From the perspective of the process, there are at least three alternative approaches to data collection: by the staff of marketing service, by the specially created group or with the involvement of companies that specialize in data collection. The process of gathering information is usually the most expensive phase of the study. Furthermore, it may have a sufficiently large number of errors during implementation.
  3. Analysis of the data. It begins with the transformation of raw data (error checking, encoding, representation in matrix form). This allows transferring a lot of raw data into meaningful information.
  4. Presentation of the results. Results of the research are presented in the form of the final report and submitted to the management of the company (Shaw, 2012).

From national to international marketing

Development of international economic relations, primarily on the basis of the international division of labor, is the characteristic process in today’s global community. These are objective, stable commercial relations between individual countries or groups of countries.

Essentially, each country in addition to conducting internal trade tends to carry foreign trade, implying a complex mechanism of relations arising in the process of sale of goods and services in the international market. Development of the international cooperation significantly increases the tendency towards the internationalization of economic processes, promotes international specialization and cooperation in production, trade, exchange of scientific and technological developments.

International marketing is a response to the world of commercial processes such as growth and expansion of partnerships in the international market, increase of production capacity, quick update of product range, frequent changes in the nature and structure of the market demand, market fluctuations, increased competition, increased and improved quality of information support. International marketing provides a systematic, ongoing, active involvement in the international market at different stages of the promotion of commercial products (services) to the consumer. That is why we should distinguish the concept of “international marketing” from the concepts of “sale” and “export”, since the latter consists in the fact that sellers are limited to delivery of its products to foreign importing companies. At the same time, suppliers are generally not interested in how consumers are satisfied in these products. A distinctive feature of international marketing is a complete and clear orientation on foreign consumers, the desire to satisfy their needs and requirements.

Marketing research is a necessary condition for the success of the company in international markets at all stages of its operation and product life cycle. The better boundaries and objectives of the study are defined, the more useful received information is, and the more accurate calculations are. They help to better understand and adapt to the needs of the buyer, determine the best value for money and quality of the goods, find new customers, find a way to draw attention to your company and products. Market conditions are constantly changing, so there is a need for such work all the time, which greatly increases the effectiveness of company on the international markets (Mihaela, 2010).

Examples

There are many examples of successful marketing of companies operating in the domestic and foreign markets. Here are some of them.

Marlboro. Marlboro invented pack of cardboard with flip-top lid, which are now standard package of cigarettes not in order to demonstrate innovation or design ideas but for promotional purposes. Smokers were able to pull out cigarettes from soft packs without removing them from the pocket, so others did not see the brand. Flip-tops made smokers take the pack out of the pocket so that everybody could see it, and the new always attracts attention.

Estee Lauder. There is a beautiful legend about how Estee Lauder began selling its perfumes. The young Miss Lauder came the biggest perfume shop in New York “accidentally” split the bottle of her perfume on the floor. Buyers asked about the wonderful smell and store just had to sign a contract with Estee Lauder.

Heinz. In 1896, Henry Heinz was walking around New York and saw an advertisement of shoe store, which offered clients “21 style of shoes.” By analogy, he decided to write on their ketchup and sauces “57 options”. This number had nothing to do with the actual figures range, but Heinz liked it. And it impressed buyers.

Harley-Davidson. The most famous manufacturer of motorcycles in the world holds the first place in terms of “branded” tattoos for more than a dozen years. It all began with the fact that Harley announced impressive discounts on bikes for those who would come to buy a motorcycle with a tattoo in the form of its logo.

One of the largest tobacco companies, «R. J. Reynolds International», was able to create a special “Russian image”. The company began to produce new cigarettes, which were called “Peter I». Until now, non-standard advertising of the company emphasizes that these cigarettes are created by Russian designers specifically for Russian consumers. Company «R. J. Reynolds International» was able to show how effective PR can work in terms of the binding of marketing programs to local traditions and mentality of the target audience (Slater, & Andriopoulos, 2013).

Conclusion

Marketing research includes studies to support marketing activities, as well as statistical interpretation of data into information. This information is then used by managers to plan marketing activities, assess of the nature of trading environment of the company and to obtain information from suppliers. Market research use statistical methods such as qualitative and quantitative research, hypothesis testing, chi-square test, linear regression, frequency distribution, binomial distribution, etc. These methods are needed to interpret the results and transform data into information. The process of marketing research covers a number of steps, including identifying a problem, developing a plan of analysis, data collection and interpretation, presenting information in the form of a formal report. The task of market research is to provide management with relevant, accurate, reliable and valid data.

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