International Marketing of Sard Wonder Company - Case Study Example

SARD WONDER Name of the student: Course Tittle: Name of the professor: Date Table of Contents Table of Contents 2 Executive Summary 3 1.0 Introduction 3 2.0 SARD WONDER 3 2.1 Target market and entry strategy 4 3.0 Barriers to market entry 4 3.1 SWOT analysis 4 4.0 Marketing Strategy and mix 5 4.1 Product 6 4.2 Promotion 6 4.3 Price 8 4.4 The Place 8 5.0 International Marketing Strategy 9 5.1 Political Factors 10 5.2 Economic Factors 10 5.3 Social Factors 11 5.4 Technological Factors 12 5.5 Legal factors 13 5.6 Environmental factors 13 6.0 Conclusion 13 Reference 15 Executive Summary SARD WONDER is one of the major detergent products produced in Australia and distributed to other markets. Currently it is the second largest detergent product in Australia taking over 15% of the total market. The company intends to venture into international market. This paper discusses about the product, its local market and potential market in UK. It analyses the SWOT of the product before embarking on the major marketing strategy and PESTLE analysis of the targeted Country. 1.0 Introduction This paper gives a detailed examination of SARD WONDER one of the products in the washing industry. It is a product produced by Sard Wonder Company; the study takes a keen look at the Australian market, and target market is the United Kingdom detergent industry 2.0 SARD WONDER Sard wonder is a detergent product that is manufactured by a company Sard Wonder; the product is believed to be turf on stains and cuts across any dirty item. Sard wonder has a unique technology in its manufacturing that gives the children freedom to get a little dirty while playing knowing that SARD WONDER will remove those awkward stains (Kagitcibasi 2012). Sard wonder has a stain recognition technology that goes through fabric and removes dirt. Sard wonder is a triple usage item that for both cleaning toilets, clothes and bathing. The product being manufactured in Australia and exported to many countries including United Kingdom (Brignall and Modell 2000). 2.1 Target market and entry strategy The company targets United Kingdom market in which the detergent industry constitutes around 20% exploited and 80% unexploited (Brignall and Modell 2000). The company will enter into the market through chain store and through company partnership with existing industry. Takeover strategy will also be useful in the industry (Severt 2002). 3.0 Barriers to market entry Some of the barriers to market entry include competitive industry with developed firms using pricing strategy to block out other competitors from entering the market (Kotler, 2001). Tight tax policy and double taxation are some of the barriers to the market entry hence the company management will analyzed on how to overcome market entry challenges (Kotler, 2001). 3.1 SWOT analysis Strength Weaknesses Improves self esteem High product penetration since it is essential Strong brand loyalty Low capital base Market Saturation Product cycle decline stage Opportunity Threats Wide unexploited market Increase in population creating market Availability of Agents in other countries Increase in taxes Increase in cost of production due to economic financial instability Entry of new players 4.0 Marketing Strategy and mix Marketing mix is a general term used to define the different types of choices firms have to make in the process of bringing a product or service to market (Kotler 2001). Marketing denotes any activity of which products or services are introduced to the public (Jaeki et al 2001). When offering a product or service, there are various things that must be put into consideration, or else the completely marketing strategy is bound to fail to produce the anticipated results and might prove to be very expensive. For instance, when a firm has to produce a new product or service in a short period, it is essential for the marketing department to do enough marketing research for it before it appears on the shelves of a particular shop (Kotler 2001). This means that, without proper marketing, no person would be in the capacity to know that such products or services exist in the market. Thus, any marketing process is considerably planned and carried out. No matter what the firm’s marketing strategy is, there are always some elements or factors, which are always crucial to every marketing strategy. There are the essential elements of the marketing mix, which are usually known as the four Ps. These are price, product, promotion and place. The manner in which a firm develops its marketing strategy depends wholly on an unlimited deal on the strategic plans and other aspects. However, without paying a considerable attention to the four Ps, it is categorically impossible for a firm to make a successful marketing strategy (Dawson and Catherine 2002).The four important elements of a marketing mix are discussed in detail below: 4.1 Product The first variable that falls under marketing mix is known a product. A product is an item that full fills the need and demand of the different types of consumer after it is utilized and offers a satisfaction to the consumer (Dawson and Catherine 2002). Products achievement is mainly based on it packing, styling, services, warranty, and quality of the product that can be altered accordingly to the wants and needs of the consumer. Sard Wonder will be a unique product that will be able to meet the customer needs and wants hence (Dawson and Catherine 2002). The product that the Company is going to produce need to be nothing but an improved version of the existing once, which is great and it will be of a high quality and great demand because costumers will like it a lot (Dawson and Catherine 2002). The Company will engage in a mission to produce innovative and fascinating products that can be unmatched in their visual appeal and innate nature with no side effect on the skin. Company products should be of both tangible and intangible benefits to its international market especially the new UK market. Modern products can offer important advantage and options to the consumers. It also provides maximum loyalty and brand image for the business, which is needed by the Company to ensure that it prospers in its future. 4.2 Promotion Promotion is very significant in marketing of any product and service because if promotion is not properly done the firm cannot do successful marketing (Kotler 2001). It is due to the process of communicating the proper decision of marketing approach efficiently to the target market in order to allow trade among the parties, marketers and the consumer that may give satisfaction to the objective customer and the firm (Broadben et al 2010). A firm’s promotional strength is to create awareness about the product and services among its customers. The best way that Curry can understand promotion is through the idea of the marketing communication method. Business promotion is the firm’s strategy to cater for the marketing information that necessitates interaction between two people or groups, incorporating senders, media, messages and receivers (Broadben et al 2010). The Sard Wonder can choose the media or the advertising agency found in UK such as newspaper, sales representatives, magazines, billboards, radio, television and many more to reach the entire part of UK including remote areas. The message is delivered to potential customers irrespective of their location and destination and reaches its potential consumer. Social media is another critical way to promote its products and services. Additionally, the Internet should be the main medium for the achievement of the business (Porter, 2001). It is proven that use of different promotional strategies on the Internet and other social networking sites helps different organization to achieve strategic influence within a short span of time to reach target market It is imperative for the Company to understand that marketing is not about offering products or services it is primarily about providing changing benefits to the ever-changing needs and demands of the customers (Porter, 2001). This Company should provide a wide variety of both business class and home consumer class products. It should develop, design, market, manufacture supports and, sell many types of products that are in most cases customized to individual customer desires for detergent product (Porter, 2001). 4.3 Price Of all the features of the firm’s marketing mix, the price is the one that generates profits and all are costs. The price of the product is clearly a vital factor of the value of total sales made by the firm. In the notion, price is of an item is determined by the finding of what customers see as the value of the product on sale (Porter, 2001). Company should study buyers' opinions on the price of its products in UK, which is important because it indicates how they value, what they are searching for and need they want to pay. A firm's pricing policy will be different according to circumstances. It should find ways to keep the price of their products staying lower than its competitors do, and this will help it to penetrate in the market, Sard Wonder pricing strategies should not entirely focus on lower prices. It must find ways to produce products that are innovative while keeping low prices. In other ways, the firm needs to have better options so that it is able to achieve its targets in a proficient manner (Gravetter and Forzano 2010). 4.4 The Place Although values vary from product to product, approximately, a sixth of the cost of a given product is allocated the way it could reach the customer. Place entails different ways of transporting and storage of goods, and making taking them close to the customer. Taking the right good to the right place at the right time comprises the distribution system(Gravetter and Forzano 2010). The best choice of distribution channel will depend on several conditions. It is more suitable for manufacturers to sell products to wholesalers who in turn will sell to retailers. Sard Wonder Company should make their products available to customers and allow easy buying just like buying sweet from a shop through increasing the distribution channel of the product On a general note, when planning placement strategy that is under marketing mix analysis, it should consider six different marketing channel decisions. It is like choosing between involving intermediaries or direct access to customers, selecting single or different channels of distributions, the types of intermediaries, the length of the distribution channel, the numbers of distributors, and which middlemen to use based on the quality and reputation is important(Scott 2010). The Company needs to maintain strong relationships with main distributors in UK to secure the availability of its products in the entire year. Additionally, it should focus on online commerce in UK as a way to reduce its production costs (Scott 2010). This can help the firm to produce an online business model, which offers satisfaction, convenience and excellence for the consumers. Distributing this kind of detergent needs chain of distributors in order for it to reach the most interior part of the country. 5.0 International Marketing Strategy The Company will have to think beyond their domestic markets for them to thrive in the competitive world, that is why it has identified UK market, and there is need for it to target other third world countries. They should think globally while acting locally. The undertaking of international marketing is the same as that of domestic markets. In both markets, consumers are the driving force of the company’s marketing and it needs to produce products and services competently. Products and services need to be distributed through the appropriate channel and priced basing to local and international market environment conditions. Normally, local market settings may be different from other countries and companies have to struggle and adapt to the needs of customers. The PEST design which is Political, Economic, Social, and Technological aspects have to be applied in order to study international market opportunities, and factors that makes them different 5.1 Political Factors Studies have clearly stated that marketing is predisposed by laws and regulations that require product and service variations in compliance safety standards, measures systems and environmental regulations, which may prevail in foreign markets. Different Government policies influence the economic and legislative frameworks. The most common in the political arena is the threat of wars. Wars and threats can have serious regional and even wider implications. The political environment of UK as widely remains certain over a long period creating conducive environment for business. There is no likelihood of a change in government at an upcoming election currently and this good environment for carrying out business for the company. The policies and fundamental beliefs belonging to the political party that is in power supports entrepreneurship. The level of government interference in the market place is minimal allowing market forces to adjust and control both demand and supply of goods and services (Berman, 2012). 5.2 Economic Factors The level of GDP in any country is the key measure of economic appeal of international markets. When GDP increases, then it’s obvious that the demand for both goods and services increases. Additionally, marketers deliberate the distribution of income in the country, to identify position and segment markets. The marketing department of Sard Wonder need to constantly look not only the present economic success of UK, but also the county’s future development in terms of inflation and economic growth , population and density, age and distribution of income, level of urbanization that will affect markets and pricing in UK. Business cycles (booms and busts) within the UK and Eurozone in general are encouraging with stable interest rate movements and exchange rate movement’s overlong period making it easy to access credit facility for business to operate. Inflation rate has been stable with steady growth in GDP since the financial crisis. The employment levels have increased making consumers to have more disposable income that they can use in purchase of detergent. Consumer confidence is high with stable economic activities, per capita income is high. 5.3 Social Factors People from different countries have different tastes, and they different products during the respond in diverse ways to the same products. Consequently, the demographic configuration of a foreign market should be considered (Robert and Joe 2011). For example, the aging of the population in western markets, and the ever increase in population in different countries like China and India, affects international marketing. Teens around the globe especially are becoming an international market segment, and Africa is the main target for a global market, the marketing strategy mix, have to strive and adapt to social factors. That is when marketing for international markets, Sard Wonder has to take into account the local language, religion, education, material culture, and aesthetics in order to produce products that suite all people in UK. It was therefore commended that the multinational corporation always adopt the marketing concept in their operation, their promotion and goods adapted to the environment. . The genders are both men and women though women are more compared to men in number making it at the most favorable market (Berman, 2012). There are high numbers of Christians than any other religions in the area though other religions like Muslims Buddhist also exist. Living standards of the target market is high composing both low and high level of people. Lifestyle attitudes are towards hygienic things. There is high Social mobility of people (Berman, 2012). 5.4 Technological Factors Companies need to evaluate the technological environment all local and foreign markets. For example, a Well-developed infrastructure is a significant factor that responds to customer’s needs. Most International businesses regularly rely on the existing local supply infrastructure to distribute their products to various destinations (Robert and Joe 2011). This has a substantial effect on costs which may influence profits. Technology advancement is a different dynamic but happening phenomenon. An example is the invention of the internet. The Internet enables online contact with the company’s suppliers, customers, and partners around the world and it may also increase the possible opportunities for existing market competitors and o for new competitors. Consequently, the current technology provides opportunities and challenges. New products in the detergent industry are ever coming with new business process that requires continuous research and development. Marketing of the product and production process is another important area in which technology has affected (Scott Peck, 2010). 5.5 Legal factors The different types of laws that apply in business include registration of business and taxation law which apply to all companies operating both import and export goods. Specifically to those businesses the manufacturing and export sector. Laws are flexible and encourages businesses within the area (Robert and Joe 2011). 5.6 Environmental factors The commodity does no affected by climatic changes hence can thrive well in all climatic conditions. The product does not pollute the environment hence encourages its consumption. 6.0 Conclusion Sard Wonder has been successful in the detergent market in home and international market because of its proper direct business model and supply chain management. The company has a flexible and consistent supply chain management structure that reduces inventory and costs. It has reduced risks of operating in a competitive industry. Sard Wonder has a reputable name among its customers because of its cost effective charges. These factors have made the product very popular among the customer segments in the Australia. However, the company has been facing competition as the trend in modern detergent markets has thrived especially penetrating the EU market (Berman 2012). It has witnessed new entrants and new technological advancement that erode its traditional competitive advantage. For Sard Wonder to establish business in UK, it needs to come up with a vibrant business strategy which focuses on product diversification too. Furthermore, it is through an emphasis on strategic market edge that the firm can achieve success in the long term. Long-term growth is be based upon using its competitive advantages(Robert and Joe 2011). Reference Berman (Ed.) (2012), Nebraska Symposium on Motivation. 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