International Marketing - Essay Example

? International Marketing Executive Summary International marketing entails the recognition of the fact that individuals around the globe have different requirements. Various companies with global operations use a consistent advertising mix to suit different needs of the customers. Companies should accept that there are variations in values, currencies, customs, and languages, implying that some commodities will only meet the needs of individuals in certain countries (Muhlbacher & Dahringer 2006, p.50). While preparing the marketing plan, this company has to consider various factors. The company has to assess the size of the potential market, the type and level of competition, promotional variations, price, product variations and barriers to trade. The company has also to analyze the cost effectiveness of various modes of transport. The company has to identify marketing objectives, marketing strategies and marketing budget of this market. The company has also to identify the potential customers of olive oil in United Kingdom, identify the critical issues and develop a system of monitoring and evaluating the marketing activities (Pride & Ferrel 2008, p. 332). Marketing Objectives Setting the objectives of marketing is one of the crucial steps in international marketing. A company will first identify the objectives it seeks to achieve while considering to sell it products in overseas markets. There are various reasons why companies conduct global marketing. The first reason is to improve growth of the company. This is achieved through gaining access to fresh markets and accessing resources. The second reason is for the survival of the company. A company launches its services and products in overseas market with an aim of countering competition. The increased access to resources enables the company to provide services and goods at low costs, thereby gaining competitive advantage against its competitors (Jain & Griffith 2012, p. 185). The international marketing objectives for this company will be first to increase the sales of olive oil by five percent within a year. The major objective of the company is to increase earning through increasing sales. The second objective of the company is to diversify its markets with an aim of increasing its market share by three percent within a year. Spain is the principal olive oil manufacturer in the world. Therefore, the companies producing olive oil in Spain will diversify their markets by exploiting market opportunities. Over the past 20 years, there has been an augment in olive oil consumption in United Kingdom where in 2010; half of the households were consuming olive oil. United Kingdom is the main importer of olive oil in the world (Food & Drink Innovation Network 2010, p. 1). The company will, therefore, expand its market by selling olive oil surplus in United Kingdom. The other objective of the company will be to increase the awareness of its olive oil brands among customers in United Kingdom. United Kingdom is the largest consumer of olive oil in Europe. There are various uses of olive oil as a salads condiment or a cooking ingredient (Harwood & Aparicio 2000, p. 15). The company will seek to inform olive oil consumers concerning the various dietary benefits and outstanding culinary traits of consuming olive oil. The company has to inform consumers about their product, first whether it is extra virgin olive oil, which is utilized principally for dressing salads, for preparing sauces and as a dip for bread. Mixed oil and olive oil are utilized for cooking and preparing tender sauces. Assessment of the Market Over the last twenty years, the consumption of olive oil in the United Kingdom has been increasing constantly. From 1990 to 2009, the United Kingdom share of the global consumption of olive oil increased from 1.9% to 2.9%. All the quantity of olive oil consumed in the United Kingdom is imported. Spain is the leading exporter of olive oil in the United Kingdom. In 2009, half of the United Kingdom households were reported to be using olive oil (Food & Drink Innovation Network 2010, p.2). This implies that the company will experience stiff competition while marketing its product in the United Kingdom. Companies selling olive oil in the United Kingdom incur high expenditures in the promotional campaign. The promotional campaign of olive oil is more extensive in the United Kingdom than any other country in the European Union. The company will, therefore, be required to budget high amounts of expenditure for the marketing activities of the product in the United Kingdom. Paul (2008, p.10) observes that the company will be required to assess the availability of sufficient funds to conduct the marketing activities. The marketing of the product would require experienced and knowledgeable sales personnel who will successfully inform consumers about the benefits of consuming olive oil. The sales personnel will require encouraging customers to utilize olive oil for an extensive variety of cooking purposes. The personnel will be required to stress the contribution that olive oil makes in the maintenance of balanced and healthy diet. The target of marketing activities for the company will be consumers and distributors. The company will seek to enhance the understanding and knowledge of olive oil consumption. The company will also discuss the prospective of olive oil for utilize in all cooking purposes (Bradley 2007, p. 500). In promoting olive oil consumption in the United Kingdom, the company needs to associate olive oil with the advantages of a healthy lifestyle of the Mediterranean individuals. There is increasing production of olive oil in Spain due to adoption of contemporary harvesting methods. Therefore, there is a surplus supply of olive oil in Spain than the demand (Harwood & Aparicio 2000, p. 19). The company will seek to sell the surplus oil in the international markets, including the United Kingdom. Market Identification The specific market segments for the olive oil include health sensitive customers; customers with strong attachment with the traditional Mediterranean diet; customers sensitive with brands and distributors willing to integrate with olive oil producing firms. The company will focus on improving the quality of olive oil. As Westwood (2002, p. 98) describes, product quality has many dimensions such as safety, taste and health among others. The low rates of the cases of chronic ailments in the Mediterranean region have been attributed to traditional, healthy nutrition. Traditionally, olive oil has been one of the ingredients of the Mediterranean diet; therefore, it has significantly contributed to the low rates of chronic diseases in the region. This nutritional value of olive oil may be used to market the product in the United Kingdom. The company should also focus on those customers who have a strong attachment with the Mediterranean diet. The company needs to converse the healthy traits of different kinds of olive oils to clients in order to augment their consciousness of these traits. There are those customers who buy services and goods based on their brand (Westwood 2002, p. 103). The company should target these customers by producing a wider variety of olive oils. There are four kinds of olive oils; virgin, extra virgin, olive oil, and olive-pomace oil. The company should also target the development of collaborations with leading distributors of olive oils in the United Kingdom. This would lead to the establishment of stable partnerships with the product market segment of the distributors. Marketing Objectives for each Target The marketing objectives of the company are measurable, achievable, time specific, non-ambiguous and flexible. The first objective of the company is to increase sales, thereby, increasing earnings. This objective is measurable, since the company aims at increasing its sales by five percent. The increase in sales will emanate from the identified market segments. The objective is time specific, since it aims at achieving the objective within a year. The objective is realistic in the sense that, the company has the resources of meeting the potential demand of the new market. The firm also considers the level of competition in the new market while setting the objectives (Bradley 2007, p. 506). The second objective is to diversify markets with an aim of increasing the market share by three percent. This objective is measurable since the company aims to increase its market share by three percent. The objective is realistic since consumers use different brands of olive oil, and they are not loyal to a certain brand. The firm aims at achieving this objective within a year. Another objective is to ensure an increase in the awareness of its products. This objective will be measurable depending on the amount of annual sales of the company’s products in the new market. The firm operates in a country where the production of olive oil is high (Jee 2009, p.185). In the target international market, United Kingdom, the demand of olive oil is attained through imports. The cost of raw materials for the company is low in Spain, and this will offset the cost of transporting olive oil from Spain to United Kingdom. These objectives are realistic in the sense that the company will experience a small increase in sales in the first year. The objectives are flexible since the company may adjust its marketing strategies to reflect the prevailing market conditions. Competitive strategies adopted by various firms are subject to changes (Preedy & Watson 2010, p.120). Therefore, the company may be required to review its strategies depending on the strategies being employed by rivals. Marketing Strategies The following are the categories of marketing decisions; product, distribution, price and promotion. These variables are the parameters that the promotion manager may control on the basis of the external and internal limitations of the marketing environment. The objective is to make resolutions, which centre these variables on the clients of the target market with an aim of creating supposed value and produce a positive response (Doole & Lowe 2008, p. 74). The following are the best combination of the marketing mix, which the company will employ in marketing olive oil in United Kingdom. Product decisions; the company will identify the brands of rivals in the target market and then use the information to decide on which brand to sell in the new market (Kleindl 2006, p.107). The company will select a brand name, which informs consumers about the nutritional value of olive oil. The company will aim to provide quality olive oil and package the product in a packet that differentiates the product with those of the rivals. Price decisions; pricing decisions affect the performance of an organization. Kleindl (2006, p.107) observes that demand pricing is employed by firms, which sell their merchandise at different prices depending on demand. Competitive pricing is employed by companies, which are entering a new market where there is an established price. The best pricing strategy for the company is competitive pricing since there are several rivals in the United Kingdom olive oil market (Jee 2009, p.189). The company will adopt a strategy of selling its products directly to customers. The company will also adopt the strategy of selecting distributors in the United Kingdom who will market its products. Once the company has developed a distribution strategy, the company develops a promotion plan. The promotion plan encompasses the communication of company’s products to consumers. The company will market its products through advertising, public relations, packaging, sales promotions and personal sales (Luther 2011, p.106). The advertising will include messages communicating the advantages of using olive oil. The company will package its products using different and appealing styles, different from those of the rivals. During the launch, the company will conduct an exhibition to inform consumers about the product. Marketing Action Plan The marketing action plan involves the activities conducted while marketing services and products in a target market. The company will first identify the target market for its products. The personnel of the marketing department will conduct an analysis to identify potential customers in the target market. The analysis of the market will involve age, lifestyle, occupation, and gender and buying habits of the consumers. The second step would be to identify various ways the company will employ to attract customers. The marketing department will conduct research to identify the niche in the market. The company will identify its strengths as compared to its competitors (Preedy & Watson 2010, p.124). The third step would involve developing advertising and marketing activities, which suits the interests of consumers. The marketing department will encourage the target consumers to ask additional information about the product. The fourth step would involve identifying the ways of passing the message regarding the importance of using olive oil produced by the company. The company will use various types of advertising including newspapers, radio and television among others (Pride & Ferrel 2008, p. 340). The firm will select various customers who have used a product from the company, and customers will explain the importance of using olive oil. The fifth step would be an establishment of a system where customers will give feedbacks. The production, marketing, distribution and information technology departments will be involved in the establishment of the system. Marketing Budget In order to exploit viable market opportunities, a company requires sufficient resources. A marketing budget enables a company to evaluate whether it has sufficient resources to conduct various marketing activities (Pride & Ferrel 2008, p. 340). The following is a marketing budget estimates for the company. The budget includes the costs of marketing olive oil in United Kingdom. The company has allocated ?200,000 for the marketing activities of the target market. Annual Marketing Expenses Q1 Q2 Q3 Q4 Totals Market Research ?5,000 ?5,000 ?5,000 ?5,000 ?20,000 Tradeshows ?15,000 ?15,000 ?15,000 ?15,000 ?60,000 Online Advertising ?5,000 ?5,000 ?5,000 ?5,000 ?20,000 Media Advertising ?20,000 ?20,000 ?20,000 ?20,000 ?80,000 Salaries and Wages ?10,000 ?10,000 ?10,000 ?10,000 ?10,000 Conferences ?1,000 ?1,000 ?1,000 ?1,000 ?4,000 Total Marketing Expenses ?194,000 Monitoring and Evaluation The company will monitor the marketing activities through first examining the product mix. If the company is providing few brands of olive oil in the target market, the company will develop new brands. Secondly, the company will set prices according prevailing market conditions. Thirdly, the company will identify places where consumers will easily access products produced by the company. During the advertising process, the human capital department will assign marketing duties to competent and experienced salespeople (Pride & Ferrel 2008, p. 348). After examining the price, products, placement and promotion, the company will set yearly sales objectives and adopt cost savings measures. The company will also invest in research and development. The company will evaluate the increase in sales as per initial objective. The amount of sales will indicate the market share the company has achieved. The company will conduct interviews with consumers to assess the level of awareness of the company’s products (Pride & Ferrel 2008, p. 352). The company will evaluate whether the adopted marketing strategies has assisted in increasing sales and earnings. The company will assess whether sales has positively contributed to return on investment. Conclusion While preparing an initial market plan, the company first identifies the target market. The company will then conduct a market analysis to evaluate the viability of the market. Secondly, the company set objectives it seeks to achieve in the new market. The analysis of the company comprises of the assessment of the market environment. The assessment will identify the prevailing economic conditions, challenges and the level of competition. The company decides the best marketing mix for its products. The company will offer a broad variety of products with different brand names, which will attract new customers. The company will adopt advertising activities, which will persuade consumers to buy its products. The pricing strategy of the company will influence the amount of sales in the target market. The company has to develop distribution channels, which will deliver products to the target customers. References List Bradley, N. (2007). Marketing Research: Tools & Techniques, Oxford, Oxford University Press. pp. 500–545. Doole, I. & Lowe, R. (2008). International Marketing Strategy, New York, Cengage Learning. pp. 37-71. Food & Drink Innovation Network. (2010). Half of UK Households Use Olive Oil, London, Food & Drink Innovation Network. pp. 1- 2. Muhlbacher, H., Leihs, H., & Dahringer, L. (2006). International Marketing: A Global Perspective, New York, Cengage Learning. pp. 47 -89. Harwood, J. & Aparicio, R. (2000). Handbook of Olive Oil: Analysis and Properties, London, Springer. pp. 7 -60. Jain, S.C. & Griffith, D.A. (2012). Handbook of Research in International Marketing, Northampton, Edward Elgar Publishing. pp. 179 -190. Jee, M. (2009). Oils and Fats Authentication, New York, John Wiley & Sons. pp. 185 -220. Kleindl, B. (2006). International Marketing, New York, Cengage Learning. pp. 102 -116. Luther, W.M. (2011). The Marketing Plan: How to Prepare and Implement It, Berkshire, AMACOM-A Division of American Management Association. Pp. 101 – 120. Paul, J. (2008). International Marketing, New Delhi, Tata McGraw-Hill. pp. 6 -16. Preedy, V.R. & Watson, R.R. (2010). Olives and Olive Oil in Health and Disease Prevention, New York, Academic Press. pp. 114 – 140. Pride, W.M. & Ferrel, O.C. (2008). Marketing: Concepts and Strategies, New York, Cengage Learning. pp. 332 – 400. Westwood, J. (2002). The Marketing Plan: A Step By Step Guide, London, Kogan Page Publishers. pp. 91 – 110. Read More