In order to accomplish the marketing goals firms should adopt the marketing concept that requires three main things, a consumer orientation, a goal orientation, and a system orientation. Organizations wishing to expand their operations internationally have to face many challenges related to introduction of their brands and convincing customers to purchase (Brassington & Pettitt, 2007). According to Armstrong and Kotler, a firm that develops a correct international marketing plan succeeds in the global market. The implementation plans help businesses to concentrate and utilize the available resources and opportunities to realize profits and become competitive in the market (2008). Old Chunky has already accomplished business success locally that makes the management fill a need to expand their operations internationally. The main products sold are snacks and beverages.
Beverage market is a big industry, which ranks among the highest competitive businesses in the whole world. Beverage has heavy consumption globally since time immemorial and forms the most important product in the snacks sales. The following marketing plan for Old Chunky seeks at determining many factors that affect firms as they plan for international investments. Business environment plays a significant role in the success of every organization especially while investing in a foreign country. This makes the marketing manager to carry out an environmental analysis aimed at determining the environmental factors that might make the marketing plan fail. Moreover, the manager should design methods of discovering potential marketing issues faced in the new country. Finally, the international marketing plan is well strategized through proposing the international marketing and branding strategy.
Environmental analysis
Business environmental is composed of two sectors, the internal environment and the external environment. The internal environment composes of those factors within an organization that affect the success of any set business strategies. These include the strengths and weaknesses in a firm. On the other hand, the external environment composes of the outside factors that affect the growth of a marketing plan. These include the external opportunities and threats. In many circumstances, firms marketing mix are altered due to changes in the environment where consumers are, and related to work, competition, and making purchasing decisions. Due to changes in the business environment new consumers come into action as the old ones drop out of action. The new consumers may come with different tastes and preferences, requirements, lifestyle, and buying behaviors different from those possessed by original consumers. Saka argues that environment has made businesses undergo frequent changes as they develop different marketing plans in every change strategy, yet the situation continues being the same. Business environment is very complex as many business people lack the knowledge of developing perfect strategies of dealing with international consumers (2003).
In analyzing the internal environment, Old Chunky can only succeed through developing good inter-firm relationships between their staff members. There exist a lot of strengths capable of making the marketing plan strategies create a positive on the development of the firm. To start with, Old Chunky is known in the production of quality beverages that are well prepared. Their advertisements are also customer oriented that gives the company an advantage of attracting many customers into their joints. In addition, the firm has a team of highly qualified staff who are aware of benefits associated with creating customer values. Even though Old Chunky’s strengths put it in a better position to hit the beverage market it also has some weaknesses. To start with most companies have well established beverage shops that have already gained fame to customers in some countries. Secondly, making an international investment requires a lot of capital due to high competition rate. Moreover, Old Chunky management requires thorough training aimed at educating them on the present day marketing strategies that conform to the present business environment.
Doing a marketing research enables business people understand in details the external business environment. The knowledge on the business environment helps a firm in changing its marketing mix, while at the same time identifying new opportunities (Lewis & Slack, 2003). When Old Chunky introduces its beverage and snacks market in foreign countries, it will create a sudden change in the new market’s consumer behaviors. The business opportunities likely to affect Old Chunk entry into the international market are as follows. First, there are a lot of potential buyers who have heard about the quality of brands offered by Old Chunk. This creates an opportunity of attracting many consumers in the new market location. Secondly, the company should aim at doing its operations at the village level and avoid settling in big towns. This gives it an opportunity to capture the local market through introducing new beverage brands and snacks to the communities. On the other hand, the company might face the following threats. Consumers might be reluctant in buying from new market entrants due to their ignorance. Secondly, when a business invests in a foreign country a lot of challenges occur related to adaptation to the new rules and regulations.
Potential marketing issues
Market size and outlook
When planning to invest in a certain business, the size of the market matters a lot since it determines the number of customers to serve since they eventually determines the amount of profit achieved. Market size and outlook is dependent on many factors including, the number of customers using the product, the available competition, and the potential sales. Beverage and snacks market is on high demand worldwide due to the increased demand for the two products by customers. Most foreigners visiting a new country always look for places to rest, as they comfortably enjoy their snacks or beverages. Market size is a very effective marketing issue that Old Chunky should address before settling in the new places. Due to the large market size for beverages and snacks, the firm should plan new promotion strategies, like offering free gifts, which assists in attracting more customers.
Competition
Competition is another determinant in the success of a business. Where competition is stiff, businesses grow at a higher rate as compared to where competition is low. Due to high demand for the two products there are a large number of businesses operating offering the same products as Old Chunky. Old Chunky thus expects to face stiff competition has it expands its operations internationally. Since the best weapon of dealing with a competitive environment is strategizing for completion, Old Chunky should develop strategies that allow it defeat the many competitors.
Market characteristics
The marketing characteristics shown in the new region is another important marketing issue that the marketing manager should consider while designing an international marketing plan. Understanding of the market characteristics ensures that the investor has full details of the business, which makes it easier to compete in the market. The factors that determine market characteristics include the critical risks and the critical success factors. Investors in any business look for a risk free business determined by the competitor response to the new business entry, sales projections, suppliers, distributers, and business location. Organizations that succeed in the global market always gather continuous market information concerning those products and services that they offer (Bangs & David, 2010).
Proposed international marketing and branding strategy
The best alternative for the company is developing of perfect marketing strategies that enable it sell its brands internationally. Old Chunky management should perform an analysis that aids in market entry strategies formulation related to market, cost, competitive advantage and government. This depicts weaknesses and strengths for a business to participate actively in the international market. Multinational business analysis, on the other hand, outlines the potentiality of the business to gain from the market participation (Moore & Pareek, 2010). The analysis will incorporate strategic levers such as marketing, location and product, and organization analysis such as culture, people, management and structure. After realizing the need to offer more for its customers, the management should create a team made up of all the senior managers in the company. Each manager should be responsible for a given department, but the most sensitive areas were on manufacturing, finance, and sales.
Market size is one of the issues likely to affect the company in developing its international marketing plan. Due to the large market size for beverages and snacks, the firm should plan new promotion strategies, like offering free gifts, which assists in attracting more customers. In addition, the company should also develop a strong brand strategy through hiring a team of experienced chefs who have a good understanding of different cultures and people’s tastes. On the other hand, competition is also a threat to the international market. To cope with this marketing issue the company should adopt a new pricing strategy. According to O’farrel (2011), pricing is the major element of marketing strategy since it has an objective of winning the competition. The best pricing strategy involves beating the opponents, by reducing the prices to attract more customers. This is the best tool since it attracts many customers to the business, and once they are used to the products, then the prices are gradually increased. It is true that most businesses in the beverage and snacks sector offer high prices for these products, which gives Old Chunky an opportunity to venture deep into the market through their fair prices. According to Lewis and Slack (2003), a business organization should aim at achieving high profits, but use cost effective ways that create good customers’ value.
Different nations have different marketing characteristics. For this case, Old Chunky should develop strategic distribution strategies that are not practiced by any other firm. The company should hire local distributors and give them encouraging allowances, which is a means of motivating them to work for them. These people will be distributing ready beverages and snacks to customers in all places such as home delivery, institutions, and bus stations. This ensures that the customers do not have to travel for long distances in search of the commodity. Marketing characteristics are also dependent on critical success factors. These are discovered trough performing a SWOT analysis for the firm. (Birnbaum Associates, 2009).
Finally, the company may venture into a brand name creation of its new fashion brands for its snacks. The change in brand name attracts more customers and creates customer loyalty to the product. Coming up with a perfect brand name might attract many customers in the business. In line with brand name change, the company needs to undertake extensive promotion of its products (Ward, 2012). This calls for the company to venture in as many places as possible, to create customer awareness of the new products and services. Advertising methods such as media campaign, and offering additional promotions to the customers would bear good fruits for the company if adopted. Finally, the company may undertake intensive innovation on its products, so that they have no comparison with products from the competing firm.
Conclusion
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