International Marketing Plan for Rococo Company

Transcription

1 1 International Marketing Plan for Rococo Company 1

2 2 Executive Summary The following paper is about UK based Rococo Chocolate Company which is nowadays planning to expand in new international market. The paper is formulated to design an initial marketing plan for the company. It involves the diverse marketing element to assist the management of the company in international marketing. It defines the key objectives of the company in relation to the international expansion plan, which the company wants to achieve. In addition to this, it assesses the market environment to describe the internal and external factors which influence the organization and servicing of identified market. The most suitable market is identified to launch the product there and earn maximum profits. Along with this, marketing objectives and marketing strategies are also describes to formulate a best marketing mix in order to achieve marketing objectives. A action plan is designed to show the way through which marketing plan can be executed. In addition to this, a marketing budget is prepared which is favourable to the company's resource base and demand of the market. This paper also addresses the critical issues for the company which it needs to take in to the consideration. 2

3 3 Table of Contents Introduction:... 4 Marketing objectives of the company in new geographical area:... 4 Characteristics of external and internal business environment of the company:... 5 Market identification:... 6 Marketing Objectives:... 7 Marketing Strategies:... 8 Action Plan:... 9 Marketing Budget Monitoring and Evaluation of the plan: References

4 4 Introduction: In existing business conditions, it has become important for business organizations to take some crucial strategic move for making the company, sustainable in highly competitive dynamic market. For this reason, different companies make some effective and efficient business plans so that they can sort out their all marketing activities and strategies. In context to this, the paper presents a business plan of Rococo Ltd, which is a London based chocolate company. The company has been operating in the UK market since Name of the chairperson of the company is Chantal Coady (Rococo chocolates 2010). In recent period of time, the company has succeeded in maintaining high standards in terms of innovations and quality in product offerings. In addition to this, the company also take different strategic moves like product intensification and market diversification in order to cope up with different constrains. For the better implementation of such strategies, the company need to make a blueprints of their operations and activities while adopting new product line or entering into new market (Rococo chocolates 2010). Marketing objectives of the company in new geographical area: All the marketing activities of the company in a new geographical area are directed to accomplishment of some specific marketing objective. Such marketing objectives provide some guidelines to the management of the company on the basis of which they can decide what is to be done. In this context, the main marketing objectives of the company are related with getting sustainability in the new market as soon as possible (Hoos 2000). In addition to this, when a company enters into a new geographical area, it need to confront with a number of constrains provided by the country specific business environment of that region. The company wants to frame certain new policies and strategies for coping with such constrains. For this reason, the company need to perform a well structured analysis 4

5 5 of the environment of that country. Retrieving information about different factors needed for conducting such analysis is also an important objective of the marketing plan of the company. Furthermore, attaining knowledge about the potential opportunities and threats provided by new geographical areas, which can be proved useful to the company for framing its new operational strategies in a new geographical region (Drummond, Ensor and Ashford 2007). Characteristics of external and internal business environment of the company: The success of a business organization depends heavily upon different characteristics of the environment in which the Company operates. Different environmental factors affect the performance of the company, significantly. In this regards, the assessment of external as well as internal business environment is one of most important tasks undertaken by an organization before entering into new market. In this context, such environmental factors can be divided into two broad categories, namely external environmental factors and internal environmental factors. The external environmental factors are the factors that related with the surroundings in which the company operates, while on other hand internal environmental factors are related with the internal policies of the company. Organizational culture and structure and other factors that do not have any direct link with the surroundings of the organization. External business environmental factors: Rococo Chocolates Company will need to confront with the several external environmental factors. The major factors that can influence the operations of the company into new market include the political and governmental support to the industry, economic stability of the country, taste and preferences and perception of the local customers about the products of the company, the technological viability of the company in the context of the chocolates industry and legal requirements and provisions 5

6 6 provided by the law of the host country regarding operation of foreign companies in the country (Gitman and McDaniel 2008). In addition to this, the external environmental factors also include availability of resources in the host country. In the selection of the country, the company need to have an intense analysis of the country in terms of availability of resources. This will help the company to reduce their overall operational cost and increase their operational efficiency (Campbell and Craig 2005). Internal Business environmental factors: As per the definition of the internal business environment of the organization, the organizational culture and structure are the crucial internal environmental factors, which are needed to be considered by the company while expanding into the new markets. In the process of market diversification, the company need to change its internal operational framework. In the process of entering into new market, the company has to face some critical issues regarding work force diversity. In concern to this, the company need to look upon its human resource management practices (Ball 2004). A number of internal environmental factors influence the performance of the company in new geographical areas. The company need to alter its internal organizational structure according to the need and requirements of the home market. Further, the internal operational strategies of the company regarding recruitment, allocation of funds and other resources, mode of internal communication and so on are also some key component of internal business environment of the company, which should be checked out by the company in the new market (Hamilton and Webster 2009). Market identification: While, expanding into international market, the company need to mould its product 6

7 7 offering according to the needs and demands of local customers. In this regards, the selection of the market and segment, which is to be targeted by the company, become highly important? For the purpose of getting established in to new market, the company will segment their market on the basis of demographic characteristics of the population. In this regards, the company will target primarily teenage customers, especially girls. For these segments the company will provide some innovative chocolates with attractive and colourful packaging (Campbell-Platt 2009). In addition to this, the targeting strategies of the company will also include adult population, which are not considered as prime customers of the products like chocolates. In this marketing and segmentation strategies, the company will position its chocolates as gifts on the occasions and festivals. By doing so, the company can target such non traditional customers of chocolates. Another market, which can be targeted by the company, is the people from rural areas, where, chocolates and other related products are not so much popular. As in the urban areas of new country, the company has to face a tough competition from their competitors; rural areas can be a good and potential market to cater for the company (Drummond, Ensor and Ashford 2007). Marketing Objectives: Marketing objectives of the company involves the expectations of the company form their marketing campaign. Marketing objectives of the company are a part of the comprehensive strategic objectives of the company. However, the span of such objectives is restricted to the marketing activities of the company. The prime marketing objective of the company is to collect all the information and trends related to the market of a new country so that the company can launch its business in those geographical areas. 7

8 8 Further, all the marketing activities of the company are directed to reveal the core needs and requirements of the local customers so that the company can offer more allegiant product to their customer. By doing so, the company can make its distinguished identity among the giant players of the industry, who are established in the host market, already (Lancaster and Massingham 2010). Marketing Strategies: Rococo chocolates company has established several marketing objectives. However. in a new market can face a number of hurdles and threats in the accomplishment of such marketing objectives. For this reason, the company need to adopt an effective and efficient marketing strategies. In this regards the company need to put emphasis on different elements of its marketing Mix in the new country as due to the changed environmental conditions of new country, the company cannot enter into new markets with the same marketing Mix. (1) Products: In a new market, the company need to enter with new and customized product offering because needs and demands of people of new country are different form that of the domestic customers. The company will have to provide innovative products in place of standardised products for attaining competitive advantage in the host market. (2) Price: the company also need to alter its pricing strategies according to purchasing power of the customers. Initially, the company need to keep their pricing low in new market so that they can cater mass market and create a base for themselves. (3) Place: In a new market, the company should also need to focus its distribution channels, so that the company can ensure the availability of the products in new market. (4) Promotion: In a new geographical region, promotions and advertising is one of the 8

9 9 most crucial factor for the success of new company. Initially, the marketing and promotional strategies of the company should be focused on creating awareness of the product in the customer, so that the product can be converted into brand in the new market (Kurtz, MacKenzie and Snow 2009). Although, For the purpose of getting success in the new market, the company need to focus on each element of market plan, yet products and promotions are two key components of the marketing Mix of the company, on which the company should put more emphasis. New, innovative and quality product offering is the highly essential factor for building trust of the customers, on the product. Along with the high quality products, the awareness about the products in the customer is also a crucial factor for the success for the company in a new market. For this reason, the company need to enhance the frequency of its marketing campaign. In this way, the company should employ the combination of the quality products with the heavy advertising and promotional strategies of the company. Action Plan: For the success of the marketing strategies of the company, the company need to adopt a effective action plan. The action plan of the company in a new market will be consisted of maintaining good relationship with the local customer. For this reason the company needs to undertake the some key measures of making good public relations. For doing so, the company will take help of local media, such as news paper, local television, radio, FM station and so on. Social events are one of the most important measures for the company in order to establish good relationship with their customer. In concern to this, the company will organize some social and cultural event through which they can promote their products. This method of maintaining relationship with people, can be very useful in rural areas of the new country. 9

10 10 In addition to this, internet has become one of the most effective and popular methods among youngsters and teenagers, which are prime customers of the company. In this regards, the company can use the different social networking sites like Face book, orkut, twitter and so on to get closer to its customers and establishing good relationship with them. In this regard, the company will make its own groups on such social networking sites, in which the company can able to make a direct interaction with customers. Further, such groups can also provide a platform to its customers, where they can post their experiences and responses about the product. In this way, this will be an effective method for the company for having a strong customer base. Marketing Budget A budget is also an utmost requirement of the marketing plan. This will help the company to use its financial resources in the most effective manner, so that efficient outcomes of a strategy can be attained. In addition to this, especially, in a new market the company need to allocate its resources in the way, which the environmental uncertainties can be addressed, easily and effectively. In the establishment of the new business in the new geographical area, the company has to undertake a number of different activities. The company also need to allocate its financial resources to different activities. For this purpose, the company has allocated total initial budget of $ the company will allocate this budget as follows: Particulars Amounts Discounts and gifts provided to the retailers $6000 Promotional events sponsored by the company $

11 11 Promotions through local TV channels $15000 News paper advertisement $6000 Gifts provided to the customers $5000 Hoardings, banners and other expenditures $3000 Monitoring and Evaluation of the plan: The success of a business plan depends heavily upon proper and timely monitoring and evaluation of the plan. In relation to this, Rococo chocolate company will rely on an systematic and structured evaluation framework. The company will apply a feedback method for the purpose of evaluating overall performance of the company in a new market. In this method the company will perform an survey after an certain period of time, in which a feedback form will be filled up with the help of perceptions of customers and retailers of the company. With the help of the collection of such data, company can reveal the strengths and weakness in its operational activities in new market. Furthermore, with the help of this measure, the company can take some corrective measure for averting flaws in their operations (O'Shaughnessy 1995). Critical Issues: In the practices of the company related with expanding into new market, certain issues can be arose in front of the upper level management of the company. In regards to this, First and foremost issue is the external environmental factors of the company. The external business environment of the host country can be different from that of home country, which is the major reason for concern to the management of Rococo chocolate company. In the host country, the company will have to face a number of hurdles and problems for instance, the 11

12 12 giant players of the industry, who are established in the host country, already, provide some intense competition to newly entered companies like Rococo. For averting such problems, the company need to invest some additional funds in the new market, which is a critical issue for the company. Further, understanding of core needs and demands of the local customers and moulding of the product offerings according to their requirement also demands lots of efforts and time, which is a major issue for the company to address in the foreign market (Brooks 2010). 12

13 13 References Ball, I International Business, 11 th Ed. McGraw-Hill Education. Brooks, I International business environment: challenges & changes. Pearson Education Limited. Campbell, D. J. and Craig, T Organisations and the business environment, 2 nd Ed. Butterworth-Heinemann. Campbell-Platt, G Food science and technology. John Wiley and Sons. Drummond, G., Ensor, J. and Ashford, R Strategic Marketing: Planning and Control, 3 rd Ed. Butterworth-Heinemann. Gitman, L.J. and McDaniel, C The Future of Business: The Essentials. Cengage Learning. Hamilton, L. and Webster, P The International Business Environment. Oxford University Press. Hoos, J Globalisation, multinational corporation, and economics. Akademiai Kiado. Kurtz, D.L., MacKenzie, H.F. and Snow, K Contemporary Marketing, 2 nd Ed. Cengage Learning. Lancaster, G. and Massingham, L Essentials of Marketing Management. Taylor & Francis. O'Shaughnessy, J Competitive marketing: a strategic approach. Routledge. Rococo chocolates [Online]. Available at: [accessed on 15 April, 2011]. 13