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Canadian honey in the Korean market

Question 1

The Korean honey market is having a challenge giving their customers quality honey. The market is flooded with poor quality honey and this does give the Korean Food a chance to penetrate the market if they focus their production on quality honey. The cost of quality honey in the market is also so high reaching a price range of $ US 100. The introduction of cheaper quality honey from the Korean Food company will increase their market share in the industry (Lee et al., 2010, p. 25).

Moreover, the Korean’s who have visited Canada often send to their families 20 to 30 kilograms of honey when they visit (Tavares, 2014, p. 22). This is an indication of positive reception of the Canadian honey by the people in Korea. It therefore, means that entry into the market will work in favor of the Korean Food as they already have a ready market for their product.

On the unfavorable aspects, the Korean government still has a restriction on open trade policy, especially when it comes to the agricultural sector. This policy does make it hard for the company to venture into the country, despite the optimism that the Korean government is considering withdrawing the restrictions (Hayakawa et al., 2013, p. 499). Moreover, the Korean honey producers have enjoyed a monopoly in the market and may place a lot of hurdles that will make the market unfavorable for Korean foods.

Question 2

The uncertainties in the strategy arise from the fact that the company has limited experience in the export market in Korea. This does pose a huge challenge for the company as they need to conduct an intensive market research before they step into the country. This will cost them a lot of finances, considering that the maximum amount of profit that they are to make from this venture is by a margin of 20%. The Korean market is centered on their culture where most of the consumers consider honey as a medicinal rather than a food product (Sydkorea, 2017). This will pose a challenge for the company when it comes to extending their market share from the hotels to selling the products to the consumers.

Additionally, the Korean market does work on the perspectives that the company will require an intermediary to be able to penetrate the market (Yoon, 2017, p. 387). The involvement of the middleman does pose an uncertainty on the manner to ensure that the company does achieve the objective of making a profit. The company has been working directly with the suppliers, and the changes of the operations structure to relying on the middlemen to foster their agenda will force affect the management of the company.

Lastly, despite their being hope that the Korean government will open up the agricultural market to allow imports, there is uncertainty on the resistance of the Korean honey producers (Hayakawa et al., 2014, p.499). The Korean honey producers have a monopoly in the honey market and they, therefore, have the strength to influence the government not to open up the honey market (APHIS’ website, 2017). Moreover, they might consent the opening of the market, but place a lot of hurdles for the new entrants an aspect that will uneven the competition making the market unfavorable.

The uncertainties can be reduced by identifying a company in Korea and entering into a joint merger to enable them to penetrate the market. The merger will be a shield for them as they understand how the market operates and will provide them the needed information to venture into the market (De Mooji, 2013, p. 36). Additionally, it will enable the company to navigate any hurdles that will be posed by the Korean honey producers in a bid to protect their influence in the market. Furthermore, the merger does reduce the cost of market research that the company will have to incur in their bid to penetrate the market.

I believe that the company has an opportunity to achieve immense success if they apply the suggested solutions in reducing the uncertainties. The company will be able to increase their margin and market share from a maximum of 20% and 60% respectively. This is an opportunity that will be effective for the company.

Question 3

Canadian honey: Marketing

In looking for ways to improve the marketing plan to make it acceptable to all the management team members, the 3 phases that form the foundation of the plan will be evaluated. In the first phase, the distribution strategy needs to be altered to involve using the networks established by the company they decide to merge with to penetrate the hotels. The local company has been in operation in the country they, therefore, have connections in different sectors of the economy like the hotels. This will make market entry easier for the company instead of having two salespeople positioned in Seoul (Lee et al., 2015, p. 32).

Additionally, the advertising strategy in the first phase will cost the company a lot of finances. To ensure that the company saves money, the use of free samples to the hotels coupled with media advertising is sufficient. The provision of recipe booklets and carrying out person-to-person advertisement will cost the company a lot of money.

In the second phase, the company needs to focus on regulating the prices of the honey with time as they extend their control of the hotel honey market. The penetrating price strategy is used to enter the market but needs to be readjusted to ensure that the company can make more profit from this sector (De Mooji, 2013, p. 12). The minimum price is an introduction to the Korean hotel industry to the purity of the Canadian honey. Increasing the price will not alter the purchase, as they would have managed to create a customer base in the industry that is attracted to the new flavors of the honey.

Additionally, the distribution channel is effective, but the involvement of the company that they will merge with will inject efficiency in the operation. The partner comprehends the Korean honey distribution network this will, therefore, ensure that the products can reach the target customers on time.

Furthermore, the company needs to concentrate more on introducing the Canadian honey as food rather than a medicinal product. This will play a role in increasing their target market more effectively. The Korean’s already have had a negative conception of honey due to the poor quality that is present in the market. Their culture compounded with the bad honey experience has made them consider that the product can be used only as a medicinal product (Lee et al., 2010, p. 18). Emphasizing on the other uses of honey will not only revolutionize this perception but also provide them with mileage in the industry.

In the third phase, introducing different qualities of honey in the market will cast doubt on the type of honey that the customers are purchasing for medicinal purposes. It will cast a shadow on the qualities of the Canadian honey that the company is introducing in the market, hence reducing their penetration. The company needs to concentrate on high-quality honey solely to get the customers goodwill in their product (Tavares, 2014, p. 25). I will recommend the company to use the warehouse of their partner as this will save them the cost of setting up one. They can then capitalize on the sales representative of their partner to increase their market penetration in the country.

Question 4

Kevin Lee at the beginning of the case study identifies pertinent issues that are linked to the difference between their way of operations and the new marketing plan. The company has immense knowledge in importing business and limited knowledge in the exporting business. They have managed to comprehend the needs of the North Americans when it comes to the Asian foods which have enabled them to raise the business to $30 million. The exportation of the Canadian honey to Korea is a new business venture as they do not know how to navigate the Korean industry with its restrictions (Anania, 2013, p. 25).

Additionally, despite the fact that the Canadian honey is loved by Korean visitors who send it to their families, this is not a guarantee that they will penetrate the market with ease (Tavares, 2014, p. 12). On the other hand, the Asian product is loved by North America and the company has managed to create a customer base that loves their products (Shaw, 2017). The company encountered challenges but managed to establish a reputable brand. Contrariwise, the only similarity is that the company has dealt with Korea on an international business level as discussed in the essay.

References

Anania, G., 2013. Agricultural export restrictions and the WTO: What options do policy-makers have for promoting food security. Draft paper prepared for informal ICTSD policy dialogue on, 25.

APHIS’ website. (2017). Korea Product Brief: Honey. [online] Available at: http://www.aphis.usda.gov/regulations/vs/iregs/products/ [Accessed 9 Sep. 2017].

De Mooji M., 2013. Global marketing and advertising: Understanding cultural paradoxes. Sage Publications, 2013.

Hayakawa, K., Kim, H., and Lee, H. H., 2014. Determinants on utilization of the Korea-ASEAN free trade agreement: margin effect, scale effect, and ROO effect. World Trade Review, 13 (3), pp.499-515.

Lee, M.Y., Hong, I.P., Choi, Y.S., Kim, N.S., Kim, H.K., Lee, K.G. and Lee, M.L., 2010. Present status of Korean beekeeping industry. Korean Journal of Apiculture.

Lee, Y.K., Kim, S.H., Seo, M.K. and Hight, S.K., 2015. Market orientation and business performance: Evidence from franchising industry. International Journal of Hospitality Management, 44, pp.28-37.

Shaw, M. (2017). Korea Food Trading | Canadian Business Executive. [online] Canadianbusinessexecutive. Available at: http://www.canadianbusinessexecutive.com/food-drink/case-studies/korea-food-trading-expanding-asian-foods-market-a-non-traditional-audience [Accessed 9 Sep. 2017].

Sydkorea. M. (2017). Korean Business Culture. [online] Available at: http://sydkorea.um.dk/en/the-trade-council/korean-business-culture [Accessed 9 Sep. 2017].

Tavares, A., 2014. Statistical overview of the Canadian honey industry 2013. Government of Canada, Canada.

Yoon, S. J., 2017. Cultural Brokerage and Transnational Entrepreneurship: Entrepreneurs in Beijing’s Koreatown.” Korea Observer, 48 (2), p.387

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Competitive Advantage: Case Study

Competitive advantage

The new product that is being introduced as part of Whirpool production will be marketed along the market chains that the company has used and has competitive advantage over other products in the market. The company will concentrate on marketing the product in the Western nations, followed by the Asian countries and lastly the African nations based on the sales margin of their earlier products (Chakraborty, 2017).

Customers in the industry have expressed the problem of having their refrigerator doors not tightly closing when they are shut.The company GE appliances that is one of the competitors has admitted to the existence of the problem on their website, but they have only provided a limited number of solutions (Refrigerator-Freezer Door Pops Open, 2017).

In the industry, none of the companies have come up with a long-lasting solution like the new invention. The product will provide the company with a competitive advantage in the consumer home appliances. The company does sell their products in over 170 countries, and by the first quarter of 2017, they had a market share of 34.33% (Whirlpool Corp Comparison to its competitors, market share, and competitiveness by Segment-CSIMarket, 2017).

How to Achieve a Competitive Advantage

In order to succeed in any market a company has to decide which strategy is more appropriate to use, which means identifying the sources of a potential competitive advantage such as skills or resources. Superior skills in creating a special product can represent the element that is setting the company apart from its competitors. That is easily translated into a very good quality of the products.

Reference List

Chakraborty, A. (2017). Leverage Analysis: A Study on Whirlpool LTD. Nopal Institute of Management Studies-Department of Management.

Refrigerator-Freezer Door Pops Open. (2017). Products.geappliances.com. Retrieved 15 September 2017, from http://products.geappliances.com/appliances/gea-support-search-content?contentId=16979

Whirlpool Corp Comparison to its Competitors, Market share, and Competitiveness by Segmet-CSIMarket. (2017). Csimarket.com. Retrieved 15 September 2017, from https://csimarket.com/stocks/compete-glance.php?code=WHR

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Safety Standards in Product Design Goals of Ethical Companies

Safety Standards in Product Design Goals of Ethical Companies

Safety regulatory measures and policies are often considered basic tenets and requirements in product design that ethical organizations put into place to ensure that their products comply with the stated standards. As consumers increasingly turn out to be dependent on engineered products, the element of product safety and liability has turned out to be of global significance. As imbued in several companies, the ethicality of product safety and accountability is addressed by considering global trade standards and practices. The scope of product design as highlighted in design research and practice has successively changed – from a focus on material aspects to a focus on the intangible, from functions to pleasure, from goods to services and values

In this regard, organizations need to ensure that they prioritize the adherence to these measures and requirements by ensuring that their products meet the enshrined safety standards (Langerman, 2015). Meeting the established safety precautions or standards remains an essential aspect of product design; however, it is insufficient. Familiarity with the foundations and principles of the utilitarian model of ethics reveals that to underscore an action as ethical requires one to determine whether an action maximizes the highest level of positive outcomes for several people while on the other hand minimizing all the adverse outcomes to the least number.

As provided in this case, ensuring that an organization’s product meets the established safety standards may yield the highest favorable outcomes for consumers and minimize the negative repercussions that may pose a threat to the lives of the consumers. According to Langerman (2015), ethical organizations before engaging in launching their products often ensure that pilot tests are conducted several to ensure that they meet the prescribed safety and precautionary measures. However, it is essential to establish that it is often challenging for firms to conduct a 360-degree inquiry or research on their products.

Therefore, this creates the rationale behind faulty products, posing a need for an organization to ensure that products meet and satisfy the needs of the customers (Langerman, 2015).Arguably, meeting safety measures may not be sufficient in product design. Product safety professionals in light of this hold on to more profound convictions regarding the importance of ensuring that the consumers and their companies are provided with the best efforts that support the design, manufacturing, and distribution of products considered safe for consumption.

Specific Stories that would make Doug’s Presentation Interesting: Doug, as provided in this case, may consider including the case of Ford in ensuring that his presentation is appealing or attractive. As provided in Ford’s current operations and planning, it is established that the organization sort after measures driven towards launching their lightweight automobile that was incredibly affordable in price for the consumers. The company president provided specifications that the designers were required to adhere to in the unit’s production.

In other words, the production unit needed to have ensured that the Pinto weighed 2000 pounds and would cost consumers close to $2000 and other related expenses such as advertisements. However, this unit’s production was met with a flaw following the lack of compliance with the federal safety standards established for the production of such a model (Tidwell, 2000). One of the significant problems that were sighted was in regards to the fuel tank that was prone to rapturing when the car was at maximum speed. This occurred following an investigation that occurred after a dreadful accident that left six occupants in the vehicle dead after the rapturing and explosion of the fuel tank.

Doug would resort to the application of the principle of universalism. According to this principle, the authority of an ethical standard is mainly determined by the level in which a concern or an act treats people, supporting the claim that moral principles often hold for all people and not merely for a section of individuals (Tidwell, 2000). From the tests conducted on this automobile, it was later evident that Ford was in full awareness that its vehicle’s gasoline tank was faulty and prone to explode when the cars were at top speed or its rear collided.

Given this, the company failed to recall these units to correct the situation and was unable to warn the consumers on the effects of the car. Therefore, it reveals that safety measures and standards are ethically vital in organizations, establishing the essence of compliance.

Product Design Goals of Ethical Companies: Likely Possibilities from the Case

As provided in the case above, there are several likelihoods regarding the safety standards of ethical companies’ product design goals. Firstly, ethical organizations may resort to ensuring that their ethical practices are connected to their corporate social responsibilities. Therefore, this establishes that ethical organizations owe their customers, employees, the community, and their shareholders’ safety. These remain fundamental in the fulfillment of their corporate obligations and sustainability.

Utilitarianism provides a straightforward approach that organizations may use to arrive at moral decisions that weigh the cause of their actions in specific situations (Tidwell, 2000). To determine what organizations need to do in cases, such as that of Ford, there is a need first to underpin the courses of their actions. Secondly, organizations may need to determine the foreseeable benefits and consequences of each of their actions for the highest number of people affected.

Lastly, firms may resort to the choice of actions that may provide the greatest of all benefits after taking consideration of the involved costs. In a nutshell, the ethicality of product safety and accountability is addressed by considering global trade standards and practices that guide and provide frameworks that organizations need to follow.

References

Eryılmaz, E. (2016). Applied Ethics: The Secular and Utilitarian Approach. Turkish Journal of Business Ethics, 9(1). https://doi.org/10.12711/tjbe.2016.9.0011r

Langerman, N. (2015). Safety and ethics. Journal of Chemical Health and Safety, 22(3), 44–45. https://doi.org/10.1016/j.jchas.2015.04.005

Tidwell, A. (2000). Ethics, Safety, and Managers. Business and Professional Ethics Journal, 19(3), 161–180. https://doi.org/10.5840/bpej2000193/43

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Marketing Strategies

In today’s business environment, obtaining well-planned and flawlessly executed marketing strategies is vital for prosperity, attracting, and retaining more customers.

Marketing Strategies

In today’s business environment, obtaining well-planned and flawlessly executed marketing strategies is vital for prosperity, attracting, and retaining more customers. Although marketers have, in the recent past, shifted to one-to-one strategies, Nunes & Merrihue (2007) argue that such approaches may be insufficient. Their insufficiency is based on the fact that they require a considerable upfront investment, including implementing software applications for managing customer relations. Additionally, Nunes & Merrihue (2007) indicated that such marketing approaches are time-consuming and necessitate coordination of multiple parts of the organization.

These requirements can be daunting for companies that seek to remain highly reactive to a rapidly changing environment and have been associated with disappointing results due to improper integration of their use with the corporate strategy (Nunes & Merrihue, 2007). Nonetheless, several alternative solutions exist that may boost company sales, feature product value, and facilitate a brand’s growth. Among these solutions are mass marketing strategies that companies should use to grab the attention of the customers.

The first mass marketing strategy that companies should use in grabbing the consumers’ attention entails leveraging social media and other online platforms. Using social media and online marketing platforms, companies would have an environment in which they share pictures and videos regarding their products and further engage their customers through comments and feedback. This engagement with customers would foster building brand loyalty and further elevate customer service (Indeed Career Guide, 2020). For instance, by posting videos of the production process and images of the finished product, companies would grab the consumers’ attention and urge them to check out other varieties available in their outlets in distinct locations

Close to social media marketing, blogging would serve as a second strategy suitable for organically attracting customers online and delivering high-quality and educational content. Companies should provide relevant content/details to help their customers make appropriate buying decisions or learn about other services offered.

Similarly, guest blog writers may be featured to authenticate and confirm the value of the products offered within a specific company (Indeed Career Guide, 2020). Alternatively, companies can write posts that address questions from the most technical to the most fundamental issues and showcase practical answers for their readers. For instance, when introducing a new product/solution to the market, a company may write a blog, including pictures and videos, on how it works and the problems it is intended to address.

SEO Marketing Strategies

The third option that may be appropriate for mass marketing in today’s business environment entails applying and maximizing Search Engine Optimization (SEO). When consumers search online for a specific product, keywords and phrases facilitate locating the item, availability, price, and other relevant information. Therefore, companies should ensure that their websites or product pages feature keywords and phrases that place them in the first few pages of search engines such as Google.

The effective use of keywords in their website or product page would suffice to answer the consumers’ inquiries, provide test titles that pique user’s interests, offer comprehensive material, and further inform the audience about more products or details (Indeed Career Guide, 2020). For instance, a company selling a unique beauty product online should use specific keywords in creating content about the item, which allows consumers to learn about its availability, uses, price, and other relevant details.

Even though other unique and equally effective mass marketing strategies exist, these three approaches would play a fundamental role in reaching a large population of potential consumers and retaining them based on their customer service contentment.

References

Indeed Career Guide. (2020, December 22). 10 marketing strategies to attract and retain customers. https://www.indeed.com/career-advice/career-development/marketing-strategies-attract-retain-customers Nunes, P. F., & Merrihue, J. (2007). The Continuing Power of Mass Advertising. MIT Sloan Management Review, 48(2), 62-72. https://sloanreview.mit.edu/article/the-continuing-power-of-mass-advertising/

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International Retail Marketing Research Paper

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INTERNATIONAL RETAIL MARKETING

International Retail Marketing

Critically evaluate different concepts and theories relating to the marketing mix. Explain the role that the marketing mix plays in the formation of a marketing strategy for a retail organisation today. Discuss key factors that may cause the international retail marketing mix to differ from the retailer’s domestic marketing mix, and how these might be implemented.

And

Critically examine the retail marketing mix of your chosen retailer for their current domestic market, and, in the context of the issues discussed above, justify what modifications you consider may be necessary in order to internationalise their mix for a specific foreign destination country

INTRODUCTION

The aim of any company that is in business is to grow and expand in terms of market share and product range. Many companies usually employ various optimal techniques towards these objectives and the choice of the concepts and theories to use is very important. There are various ways in which the company can achieve these desired results and one of them is through the use of the marketing mix strategies that target the key elements involved in market analysis. These key elements are the product itself, the price of that product, its placement and also the promotion modes employed to ensure the customer accesses the product.

PART (A)

In this part we are going to explore the various theories and concepts that pertain to marketing mix and the role they play in the designing of a marketing strategy for a retail organization. We shall also look at the main differences between an international retailer marketing mix and a domestic retail marketing mix.

MARKETING MIX THEORIES AND CONCEPTS

In seeking to understand the optimal utilization of a company’s resources to enhance product penetration and affordability there is the 4Ps concept (Luan, 2010). It focuses on the product, price, place and promotion.

Product

This refers to a good or service that is the end result of a process initiated either by the company, subsidiary or trading partner. It is what the company offers to its customers.

The producer must ensure that the product will satisfy the customers need adequately. It must be of the required quality standards and before production starts the company must carry out surveys on the exact requirements by the consumers. The company should be able to offer assurances on the safety of use of the product through warranties and safe packaging. This will ensure brand loyalty from the consumers which will lead to higher sales volumes and it will increase the market share of the product.

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Price

This is the value attached to a product or service and it must be paid in monetary terms to the producer.

The company must know how much the target customers are willing to pay and also their ability to pay for the product (Pitsaki, 2011). This will have a direct effect on their demand for the product. Therefore the product must be priced competitively to ensure affordability and also profitability on the part of the producer or company.

Place

This is the venue where the buyer of the product expects to find it and all relevant information that pertain to the product.

The consumer should know where to find the product easily at any time and at the right quantities. This will call on the sellers to devise clear places where the information on the product can be accessed easily. They can use the internet and even mobile phones because majority of the people have access to them.

Promotion

This is the process of reaching out to current and prospective customers to ensure the product has a wide customer base.

This calls for the stakeholders to come up with ways to inform the consumers of the presence of the organization and also its products. They must advertise their products through aggressive techniques (Peter, 2007) like sales promotions and also conduct public relations campaigns to make sure the company’s presence in the market is known by many.

PRICE

PRODUCT PLACE

PROMOTION

The 4Ps model clearly indicates that the marketing mix is surrounded by the four elements which must be carefully determined to enhance success in the market.

Growth strategy mix

This concept focuses on the use of the internet to ensure product penetration in the market (Yanan , 2000).

Market Development Strategies

The company can adopt the use of the internet to penetrate international markets. They can start advertising their products early in the potential market to make sure when they finally enter that particular region there products will already be known in various segments of the markets.

Market Penetration

The marketing team will be required to devise the strategies to be used to increase the market share of the products. They must increase their presence online to target new customers. This will also improve the loyalty of the existing customers because they will be able to engage more with the company.

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Diversification

The internet will be used to ensure that the company engages fully with its suppliers and intermediaries. This will make them identify potential target areas and also whether they can develop other products to compete with those that are already in the market.

Development of the product

Through the use of the internet the firm will know the strategies to use in the development of their products. They will be able to know how to add value to existing products, how to improve efficiency in the subscription procedures and also how to increase the product range so that to bring on board more e-retailers as possible. They must seek good service providers who are reliable in the market and who will offer competitive prices.

The 4 C’s Model

The customers being the target of many marketing initiatives take the centre stage in this model. The model focuses mainly on the pull marketing strategy as opposed to the push strategy adopted by the other models.

Customers: Their needs must be fully satisfied by the products in the market.
Cost: The cost of the product to the consumer should be analyzed to enhance affordability.
Convenience: The product should be readily available to the consumer anytime and anywhere.
Communication: There should be more interaction between the sellers of the product and the customers. This will ensure customer satisfaction

*CUSTOMERWhat do they need? How do they need it?***	*COSTHow affordable is the product?***
*CONVINIENCEWhere are they getting the product and how much is it costing them to reach the venue?***	*COMMUNICATIONAre they aware the product is available?***

ROLE OF THE MARKETING MIX

The role the marketing mix plays in the formation of a marketing strategy for a retail business will determine the suitability of the strategy and definitely the success of the business (Albers, 2010).

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The marketing mix will ensure the product chosen for sale by the retailer is suitable and fit for the particular market. This is because the success of the business will be determined by how good or bad the product is. The suitability of the product in the market will be determined by several factors which will revolve around the geographical area, the income levels of the consumers since it will affect their purchasing power and also their consumption and buying habits. The retailer will decide the units or packages of the product that best suit that market to ensure there are sales volumes and also customer satisfaction.
The marketing mix will also help the retailer in knowing the pricing modes he is going to adopt for his products. If he prices his commodities very highly they will not get customers and again if he prices them low he won’t meet set revenue targets. The retailer will therefore be required to analyze all the factors that will influence his product prices such as supplier prices, price of substitutes, competing retailers’ prices and transportation costs. This will ensure the retailer does not lose customers and he gets the expected profits from his business. The company will also be able to meet its obligations like payment of taxes, rents and rates.
Also the marketing mix will make the retailer know how his product will have wider reach to its customers. This can be done through opening more retail stores in different localities to enhance wide coverage. He will also be able to evaluate the additional costs that will result from such expansion such as increased rental bills, more wages because of the additional employees hired and even more utility bills.
The retailer will decide whether he will advertise his business. This may not be feasible because majority of the commodities he could be dealing with are normally advertised by the producer. The only advertising he can do is to inform the prospective customers of the location of his business.

There are various factors that may cause the international retail marketing mix to differ from the domestic retailer’s marketing mix. These include;

The international retailer will be expected to heavily advertise his products in the new market as opposed to the domestic retailer who expects the advertisements for the products to be done by the producer. This means the international retailer will incur heavy advertisement costs which in the initial stages may eat into his profits. This implies that profits may not be realized in the short run for the international retailer as opposed to the domestic retailer. The product may therefore take long to penetrate the international market due to these initial costs. The domestic retailer is already established in the market and his product enjoys loyalty from his customers and is already in profitability.
The international retailer will have no control of the prices that are in the market. The prices will already have been set by the local operators in that market (Rossi, 2000).The international retailer will be forced to take the prices as they are in that market to ensure that there are sales volumes. This is despite the many expenses he has incurred at the set up stage which if taken to account will mean his product price should be higher, but because the international retailer wants to enhance competitiveness he will take the market prices so that he can compete adequately with the rival products.
The international retailer will be supposed to carry out very intense promotional campaigns for his products. This is as opposed to the domestic retailer whose promotions are minimal since his goods which are mostly locally produced are mainly advertised by the producers. The domestic retailers can devise to block the international retailer by adopting low price strategies (Harald, 2008). This will mean the international retailer will take a long time to attain a considerable market share in the foreign market for his products. The international retailer will be forced to seek favorable distribution channels for his products to ensure they reach the target consumer.
The domestic retailers will be on the look out to dominate the places the international retailer may choose to advertise his products. They will adopt defensive techniques to guard against their market share which is under threat from the international retailer. The international retailer will therefore be expected to identify areas where those in the domestic market have no full control over. Such areas may include the internet and other social sites frequented by many people.

PART (B)

In this part we are going to review the retail marketing mix for Superdrug Company and what they are supposed to do so as to internationalize their marketing mix when they venture in Australasia.

The Superdrug Company will have to study the marketing mix in the foreign market carefully to enable it come up with a good strategy to enter that market.

Product

The market mix for Superdrug is very strong in the UK which is their home market (Meyer, n.d). They are major players in the beauty and cosmetics industry and their products enjoy wide appeal. The products are of high quality and the company enjoys sizable market share. This is because the products have fully penetrated the market. However the beauty and cosmetic industry in Australasia is saturated with many players.

The company must maintain the same quality for the products to ensure customer satisfaction. Product quality as seen in the 4Ps model is very important as it will determine the customer satisfaction levels. The satisfaction derived from the product will guarantee the sales volumes the company will achieve and the market penetration levels.

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Price

Superdrug will be forced to adopt a price reduction strategy for their products to realize sales volumes. There are many substitutes for their products in that foreign market and each of the domestic players will be seeking to guard their market share. Reducing prices will increase the preference of their products to many consumers and this will enhance market penetration (Edwin, 2007).

However this can only be done in the short run when the products are still in the initial introduction stages. The company after securing a sizable market share should revert to applicable prices in order to realize profits.

Promotion

The company being a foreign entrant will be expected to heavily promote its products among the consumers. This will make the majority to be aware of their presence. They will conduct sales promotions in the key areas they will identify. They should convince the consumers why they should stop using their current products and adopt theirs. This means the advertising budget will be huge because the local companies will also be guarding against their market share.

Place

Superdrug on evaluating the market will be required to identify the most convenient places to place their advertisements to ensure wide accessibility. They should consult with the major advertising consultants in the new market and seek their advice. Interaction with the consumer will be very crucial (John, n.d) because this is what will determine the demand for their products.

The company should also adopt the use of the internet to alert customers of their entrance to this new market. Loyal customers like the tourists will be happy to know their favorite products from the company are also available.

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CONCLUSION

The role played by the marketing mix in the formulation of marketing strategy to be adopted by companies is very important. It is used to identify key variables that determine the suitability of a particular product being in the market. This is because many industries today are dominated by players who will not give in easily to their market share. The local players want to maintain their profit margins and when any foreign entrant attempts to venture in to their market they will employ defensive tactics to ensure they preserve their market share.

To overcome all these obstacles a company should fully understand the market in which they are operating because the information gathered in local markets may also be important in the foreign markets. Failure to do this will place firms at a disadvantage whenever they seek expansion and it will be very harming to the business and to the industry as a whole.

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References

Albers, M (2010) Marketing Demand. London. Penguin Books, P. 9

Edwin, S (2007) Product Management. Bristol. Ace Publishers Ltd, P.23

Harald, J (2008) Brand Evaluation. Berlin. Dietz Printers, P.41

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