Sample MKT744 Assessment Global Marketing and Sales Development Report

MKT744 Assessment Global Marketing and Sales Development Report Sample

International Marketing Strategy

You will be allocated a country and an SME by your seminar tutor. You then required to conduct a business environment audit relevant to international expansion to that country. You should conduct a PESTLE analysis for your allocated country, describe and evaluate those aspects of the environment (political, legal, economic, socio-cultural, technological, and environmental) in the potential global market that are relevant to and, have implications for, developing a marketing strategy. The purpose of this evaluation is to identify potential market opportunities for the introduction of a new product/service. You will then be required to develop or select the allocated company’s product/service, with country of origin the UK, which you would consider has potential for expansion into this country, based on your PESTLE. You will then develop a global marketing strategy to that country, for your UK based product/service. This will include (although not exclusively):

Justifying the opportunity in the country for the product/service you will develop.

Provide an overview of the competitive landscape for the offering you are developing in your allocated country.

Develop and design an outline international marketing strategy. You will need to discuss the product and modifications (if any) to allow entry and market establishment, pricing decisions, effective promotional efforts to establish awareness and establish market presence, distribution choices and brand/name along with suggesting the key challenges to global expansion for the SME in this market.

You will be required to ensure that the PESTLE and international marketing

Strategy are linked to justify your decisions and choices.

Solution

Introduction:

The study is aiming to discuss the complexity of the business expansion in the international market. Also, the study would explain the effects of these on the decision making and the activities of the firm in order to survive and thrive in the international market in the environment of the post Brexit era. For Assignment help The researcher would discuss the paper in regards to a regional, local and international perspective. The important factors that affect the international marketing decision would be discussed in this study. Building digital competencies, as well as approach and strategical implementation regarding critical thinking approach and interpretation in respect of every type of market, is the major aim of the current study. The research would perform a PESTEL analysis along with pricing strategy and competitive strategy on the provided company, Butlers Chocolate, in the perception of global expansion in Nepal of the firm. The current study would be able to generate the skills, knowledge and expertise from the perspective of the global market as well as the global marketing strategies regarding the international expansion of any small and medium enterpirse (SME). The complexities of global marketing in the post-Brexit period would be analysed in the study through the business expansion of the given SME in the global arena. The report is going to present a clear perception of the researcher regarding the global expansion and the strategies that should be followed to thrive in the new market.

Background of the company:

Butlers Chocolate is funded in the year of 1932 by the premier family, Butlers, from Ireland. Marion Butler, the pioneer woman, established the firm in the centre of Georgian Dublin. She crafted her chocolate by hand which enrich the taste. Seamus Sorensen from Cork bought the firm in 1959. In the 1980s, the firm was renamed Butlers Irish and rebranded with Butlers Chocolate (Butlers Chocolates, 2021). The company is one of the rarest family-owned chocolate firms. The first retail shop of Butlers Chocolate café was opened at Grafton Street in Dublin in 1989. Now there are almost 24 cafes all over the country. The firm has franchises in South Asia and the Middle East. Among their servings of fine confections, chocolates and premium quality hot beverages, their Butlers Hot Chocolate is an award-winning speciality.
The company has almost 400 staff who follows a common goal of success, there are almost 60 outlets in various airports and have their shops in nearly 40 countries. They also helped to open Capuchin Centre for the homeless by raising funds in Ireland.

PESTEL Analysis:

The PESTEL model would analyse the microenvironment for the firm as well as the impacts of the new environment regarding their strategy of market expansion in a new country.

The PESTEL model is indicating that the firm could select Nepal as a possible area of their business expansion. They have knowledge regarding the business environment and the chances of generating profit in Nepal. The market of chocolate and cocoa is enriched in Nepal as the competitors are locals as well as international. Thus, for expanding new business in Nepal, Butlers Chocolate needed to improvise to attract customers.

Justifying the opportunity for Butlers Chocolate in Nepal:

Many have no idea that a developing country like Nepal has entrepreneurs who are passionate about chocolate. They love to make chocolate as well as customise. These companies would sell their chocolate in the local tourist hotspots. Dhungel (2021) stated that some of the chocolate companies like ‘Ecstasy—Handmade with Love’ also exporting their products to different countries like India, Australia, Bangladesh, Oman, Belgium, China, Japan and Germany. The local chocolate companies of Nepal also provide the facilities of gifting their chocolate with a handwritten note for their customers.

There are many homemade chocolate factories in Nepal that are very popular in the market. The raw materials for chocolate are very available in the country which makes the cost of production very affordable. The labour market of the country is very affordable for any business authority. Though there was some political unsteadiness in the country the situation has improved for the better. The law of the country regarding conducting business has improved and the government is providing opportunities to the business owners to expand their business and generate more employment for the local people. Particularly this industry has grown in the last couple of years in the country as there are many youths who established their chocolate production business driven by their passion for chocolate as well as entrepreneurship. The new generation business personals are expanding the market more and more as they are opting to operate their business outside the border of their country. They improvising the product to attract customers and trying to be able to stand out among the crowd (Nepali chocolate sees spike in demand, 2021).

The report is discussing the new business expansion of Butler Chocolate which is a UK based family premier chocolate factory with their years' old fame and experience. The company has earned their fame in many countries now they are entering the chocolate market of Nepal. With their experience of selling their product in South Asia, the company had some primary knowledge and experience with the types of customers and markets they are going to capture. The developing countries are providing a large and evolving market that attracting business owners of different sectors from different parts of the world. As the people of this country already have knowledge of different types of chocolate, it is fathomable that they would welcome further any new rich variation of the product. The company could manufacture their product in Nepal with less cost due to the availability of raw materials and workforce. Thus it is inevitable that the discussed company has a better opportunity to enter and thrive in the new market of Nepal.

An overview of the competitive landscape for Butlers Chocolate in Nepal:

Nepal is enriched with homemade chocolate productions. In the last couple of years, many have joined the industry and grown with time and praise. There are new customer base has emerged in Nepal due to the increasing demand for the product and the chocolate factories are thriving to serve their customers (FMCG Khabar Asia, 2021). Some of them are Sarawagi group, Sweet Mart Food Pvt Ltd, Manna bakery, Cocoa chocolate industries, Chef’s bakery and confectionary, etc. all these have their product line and market as well as targeted customers in Nepal. These Nepali chocolates have become the most favourite gifts for the customers on their special days like valentines’ day, birthdays, anniversaries, mothers’ day, etc.

The Sarawagi group is one of the oldest and leading manufacturers of the chocolate industry in Nepal. They deliver their products to restaurants, bakeries, retail shops, food servicing firms, home bakers (Sarawagigroup.com. 2021). The firm has had knowledge of operating business in this industry for more than twenty years. Now they have become one of the most influencing distributer in the market.

Sweet Mart Food Pvt Ltd is another mentionable chocolate company in the FMCG industry in Nepal. In their high-quality confectioneries, chocolate is one of the popular products among their customers (Nepalyp.com. 2021). They are famous in the market for their product quality and hygienic process of production.

Manna bakery is another one that is going compete withButlers Chocolate in the market of Nepal. Though they are mostly cherished by their customers for their excellent cakes regardless of any occasion, their chocolates also capture a great share of the market in the country. The Cocoa chocolate industries is another popular name of the Nepal chocolate industry. Their quality and tasty chocolate are loved by their customers from all over the country. Chef’s bakery and confectionary manufacture exotic and delicious quality chocolates for their customers.

Thus, it could be said that Butlers Chocolate is going to face very tough competition while they would be entering the market of Nepal. The company need to plan their international marketing strategies with utmost detailing to capture the attention of the customers who are already receiving many better products from the local manufacturers (Ghauri and Cateora 2014). Along with the local products they are going to face challenges from the popular international chocolate brands.

Developing the outline of international marketing strategy for Butler Chocolate in Nepal:

International trading is increasing its importance day by day. The globalisation of consumption and production as well as the interdependence of world economics are instigating international trading. The free trading areas are providing more trading options. In this area, traders could move according to their wishes without paying any tariffs or regulations (Kenyon, Lowe and Doole 2016). After Brexit, the trading market has been expanded for UK based companies. They are expanding their business in areas like India, Russia, Brazil, China, Malaysia, Poland, etc. Rodwin et al. (2018) suggested that BRIC that are Brazil, Russia, India and China are the most growing market. Growing middle class and increased consumption are major reasons for market expansion.

Required modification of the product to enter and thrive in the new market:

The taste of different parts of the world is different. People of different countries like to eat differently. But here the discussed product is chocolate which is a favourite product for the youth mostly and it would be safe to say that due to the globalisation of the foreign products are not foreign anymore. The taste of British chocolate is smoother and richer (Honeycutt, Ford and Simintiras 2003). They have a higher level of cocoa content as well as fat. Though there are many homemade chocolates but Cadbury is one of the most favourite brands among the people of the UK.

The homemade chocolate of Nepal taste good but the limited range of their products and the quantity is becoming a challenge for the manufacturers. Thus, the imported chocolate like Dairy Milk, Kit-kat, Mars, Snickers are capturing the market in Nepal (Imported chocolates take big bite of local market, 2021). Thus, they need to modify their product accordingly so it would be able to compete with all the available chocolate brands.

Pricing strategy for the new market:

For pricing strategies, rapid penetration strategy would be best for Butler Chocolate in the new market of Nepal as it is a developing country (Liu, Zhai and Chen 2019). The price of the product would be low while the cost of promotion would be higher. As per Dmitrijevs (2020), market share is important for this strategy rather than profit. Through this strategy, the product would build a customer base by generating huge demand and developing brand loyalty. The imported chocolates are costly though it is available in the market. Thus, a low price with a quality product would build demand among the customers rapidly and assist the product to enter the competitive market and develop its own customers with moderate market share.

Effective promotion, distribution and brand name:

Promotion is important for a new product to enter and establish the brand. The market of any new product evolves around culture, economy and marketing efforts (Parente et al., 2018). To enter the market Butlers Chocolate needs to stand out among the crowd, provide free samples, target the cultural holidays along with an effective web presence. Online promotion is cost-effective and has a broader area of access. Their main focus would be e-commerce websites to reach a huge number of potential customers.

Drivers, location, production, inventory, information and transportation are the supply chain influencing factors. Online distribution is cheaper and faster than the traditional process. Though in Nepal direct distribution is frequently seen, the firm would follow both e-commerce and direct distribution involving wholesalers and retailers.

The brand is already a known one thus, there is no need to change the name. But to entice the customer of Nepal, the management could add something that would have a personal approach to the people of Nepal such as ‘Butler Chocolate- the taste of happiness’. They use healthy and eco-friendly quality products to increase the sustainability of Butlers Chocolate.

The major challenges to international expansion for the discussed SME in the chosen market:

Infrastructure and economic climate are important elements for business expansion in a new environment. The firm needs to understand the economic, social, political environment of the country to enter and establish its business there with success (GERLOFF, and REINHARD, 2018). Some of the important factors are-

• Understanding the economic environment of the country as in per capita income.

• Political stability as well as the relationship with the core country for stable business operation.

• Social and cultural aspects of the new country are also important to understand the demand of the customers as well as to develop a strong loyal customer base.

• The technological growth of the country

• Laws regarding conducting the business operation of international companies in the country as well as labour laws and other legal rules.

With all these factors expansion in the developing country in a competitive market could become very challenging. Butler Chocolate requires understanding and analyse the market of the new country. The new country is very different from the core country of the product. Without a proper business expansion strategy, the firm is going to face many challenges such as,

• The management of the firm needs to interact with new employees who would be the natives of the new country. There could be a communication gap between management and employees (Thussu, 2018).

• In developing countries, a very small percentage of the overall population would generate the highest income. This would limit the number of customers if the price is not affordable for the average people. This could affect the sustainability of the business (Leal et al., 2019). Thus, understanding the current economic status along with the potential to grow is important.

• While expanding the business, the company could face challenges regarding understanding the responsibilities and role of the company regarding the new environment (Jamali, and Karam, 2018). Understanding the corporate social responsibilities in the new country would increase the sustainability of the firm.

• Disseminated structured rural populations could not be very useful in the business operation which increase the challenges for the firm in the business expansion ( Zhang, 2016).

• The limitation in space and infrastructure along with the lack of an efficient distribution chain would create sustainable issues for the new product in the new competitive market (Leigland, 2018).

• The market of chocolate in Nepal has many companies that are popular among the people and have their own market share. Thus, entering this market a new company would face hard competitive challenges in this new environment (Kotabe, and Kothari, 2016).

Conclusion:

The overall study is interpreting the global sales and marketing regarding the expansion of Butler Chocolate in Nepal. The PESTEL and the international marketing strategies have been used to interpret the context of global marketing regarding the post-Brexit environment. For pricing strategy, they would use a rapid penetration strategy and add a tagline, ‘Butler Chocolate- the taste of happiness’ for promotion. In a competitive market of a developing country business expansion would face many challenges, with strategic business planning which could be addressed. This report would assist the firm to make their decision with more accuracy to achieve their goals as a corporation.

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