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International Marketing Report of Iceland

In: Business and Management

Submitted By jonnylo
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Samantha Bugeja Matthew Holmes William Topp Yuwei Wu Dingyang Ren

Samantha Bugeja Matthew Holmes William Topp Yuwei Wu Dingyang Ren

International Marketing
International Marketing


Contents Executive Summary 3 Introduction 4 Mission Statement 4 Market Choice 4 Table 1 5 Quantification, Weighting and Ranking 6 Table 2 7 Internal Analysis 8 Overview of Iceland 8 Marketing Factors 8 Financial analysis 8 Manufacturing factors 9 Iceland’s current resources and competencies 10 Table 3 10 The Boston Consulting Group matrix (BCG) matrix 10 Figure 1 10 External Analysis 10 PESTLE 11 Competitive Environment 12 Retailers 12 Table 4 12 Frozen Food Manufacturers 12 Table 5 13 Customer Trends 13 Target Market 14 Porter’s Five Forces 14 Figure 2 14 Lotte Group Analysis 14 SWOT 15 Strengths and Weaknesses 15 Opportunities 16 Threats 16 Objectives and Market Entry Strategy 16 Objective 1(Short term: 12 months) 17 Objective 2 (Medium Term: 1-3 years) 17 Objective 3 (Long Term: 3-5 years): 18 Internationalisation objectives 18 Marketing Mix 19 Product 19 Price 21 Table 6 21 Table 7 21 Promotion 22 Place 23 People, processes and physical evidence 24 Implementation 25 Table 8 26 Figure 3 26 Figure 4 27 Control 27 Figure 5 28 Bibliography 28

Executive Summary
This report has been produced to provide Iceland Foods Group with a strategy to further internationalise. After investigation of potential countries it was decided that South Korea was the best market to enter. Analysis has been undertaken into both the external and internal environments with regards to South Korea and Iceland. Research into the frozen food sector in South Korea has shown the market is growing .The success of Iceland within the UK and other European markets, within which they operate, has led to the recommendation of entering South Korea via a staged market entry approach over five years. This will be achieved through exporting, contract manufacturing and a strategic alliance. All dimensions of the marketing mix have been considered, utilising both a standardised and adaptive approach where necessary, to ensure that target consumers requirements are met. The entry strategy has been conducted with different SBU’s from the Lotte Group; based on their local market expertise and routes to market. This report concludes that operating in South Korea with an established intermediary and selling exclusively in their stores is a viable entry strategy. This allows Iceland to build local knowledge, penetrate the market and ultimately generate sustainable competitive advantage.
Iceland was founded in 1970 with the first store opening in Oswestry, Shropshire by Malcolm Walker‎1. Iceland is performing strongly financially‎2 and is viewed as one of the UK market leaders in frozen food sales, hence the decision to proactively internationalise. Internationalisation can bring many advantages for Iceland, most notably a secure source of long term profitability. Specific objectives of this report are:

1. Thorough analysis of potential markets 2. Analyse both internal (Iceland) and external environment using specific tools 3. Explain foreign market entry strategy and set achievable objectives 4. Consider all areas of the Marketing Mix in detail 5. Consider how to implement these within the chosen market 6. Demonstrate how the process will be controlled
Mission Statement
“To provide high quality own label frozen food that is good value to a wide audience”
This mission statement provides Iceland with a core focus of the company’s values, which can be implemented across different markets worldwide, whilst allowing the flexibility for local needs to be accounted for.
Market Choice
Australia, Japan, Russia, Brazil and South Korea have been analysed against set criteria deemed to be important for internationalising (table 1). The UK has been included as a benchmark, based on Iceland’s current success. Australia has been selected as it has a similar culture to that of the UK, making a low cost standardised approach feasible. Brazil, Russia and South Korea were chosen as they form part of the BRICS economies (Brazil, Russia, India, China, South Korea), which are rapidly growing emerging markets3. Entering these markets may secure Iceland’s long term profitability. Japan has developed over recent years to become a global superpower. With a well-developed economy and a dense population, this could be a profitable market. Each criterion has been analysed using the same source for all countries, therefore providing consistency. Financial figures have been converted into dollars based on the global prevalence of this currency.

Table 1 Criterion | Indicator | UK Benchmark | Australia | Japan | Brazil | Russia | South Korea | Consumption of frozen food | Sales of frozen food in 20114($) | 9,175,145,600 | 2,291,500,000 | 7,087,400,000 | 1,815,590,000 | 7,246,620,000 | 601,700,000 | | Growth of frozen food in value 2011 (%)4 | -1 | 5 | -4 | 7 | 15.1 | 5.04 | Competition | Total market share top 3 competitors (%)4 | 35.81 | 56.04 | 44.92 | 58.50% | 14.8% | 45.49 | Family household data | Population 20115 | 63,047,162 | 22,015,576 | 127,638,088 | 199,321,400 | 142,862,000 | 48,860,500 | | Median age (Years)5 | 40 | 37.9 | 45.4 | 29.6 | 38.7 | 38.4 | | Male: Female ratio (at birth) 20115 | 1.05 | 1.0 | 1.06 | 1.05 | 1.06 | 1.0 | Economic and government data | GDP per capita ($)5 | 36,600 | 40,800 | 35,200 | 11,900 | 17,000 | 32,100 | | Ease of doing business rating20136 | 7 | 10 | 24 | 130 | 112 | 8 | | Disposable income per capita ($) (2011)7 | 23,053 | 33,959 | 27,350 | 8,058 | 9,147 | 12954 | Infrastructure | Getting electricity ranking (2012)6 | 62 | 36 | 27 | 60 | 184 | 3 | | Freezer and fridge freezer volume (2011)8 | 1,112,041,900 | 102,920,500 | 4,228,500,000 | 4,103,209,800 | 1,923,856,400 | 1,176,300,000 |
Quantification, Weighting and Ranking
The data matrix on the next page has been created for the five market options. Each criterion has been given a weighting based on importance, totalling to 100. For example, frozen food sales growth is deemed as the most important factor when deciding which country to enter into. Each market has then been ranked in order of how they perform compared to one another, 1 being the worst, 5 being excellent. This is then multiplied by the weighting to give a figure. The highest overall total will be the country of choice to internationalise into. For example, Russia is considered excellent in frozen food sales growth (5), with the weighting being 16. Multiplied together this gives Russia a score of 80 for frozen food sales. South Korea ranks the highest overall and therefore will be selected as the market to enter. An in depth analysis into this country will be undertaken to determine the best internationalisation strategy.
A market concentration strategy as opposed to diversification will be adopted with Iceland only internationalising into the South Korean market. This allows them to focus efforts and gain an understanding of this market (a region which is unfamiliar to Iceland), before considering whether to further expand into Asia in the long term.

Criterion | Indicator | Australia | Japan | Brazil | Russia | South Korea | Weight | Australia | Japan | Brazil | Russia | South Korea | Consumption of frozen food | Sales of frozen food in 2011 | 2 | 4 | 1 | 5 | 3 | 13 | 26 | 52 | 13 | 65 | 39 | | Current growth of frozen food in value | 2 | 1 | 4 | 5 | 3 | 16 | 32 | 16 | 64 | 80 | 48 | Competition | Total market share of top 3 competitors | 2 | 4 | 1 | 5 | 3 | 8 | 16 | 32 | 8 | 40 | 24 | Family household data | Population | 1 | 3 | 5 | 4 | 2 | 4 | 4 | 12 | 20 | 16 | 8 | | Median age (Years) | 4 | 1 | 5 | 2 | 3 | 3 | 12 | 3 | 15 | 6 | 9 | | Male: Female ratio (at birth) | 5 | 2 | 3 | 2 | 5 | 5 | 25 | 10 | 15 | 10 | 25 | Economic and government data | GDP per capita ($) | 5 | 4 | 1 | 2 | 3 | 6 | 30 | 24 | 6 | 12 | 18 | | Ease of doing business rating(2013) | 4 | 3 | 1 | 2 | 5 | 14 | 56 | 42 | 14 | 28 | 70 | | Disposable income per capita (2011) | 5 | 4 | 1 | 2 | 3 | 12 | 60 | 48 | 12 | 24 | 36 | Infrastructure | Getting electricity | 3 | 4 | 2 | 1 | 5 | 11 | 33 | 44 | 22 | 11 | 55 | | Freezer and fridge freezer volume | 1 | 5 | 4 | 3 | 2 | 8 | 8 | 40 | 32 | 24 | 16 | Table 2
Table 2
Totals | | 100 | 302 | 323 | 221 | 316 | 346 |

Internal Analysis
Overview of Iceland
Iceland is a PLC with over 750 stores throughout the UK, a number which increasing on a regular basis9. Over 23,000 people work at Iceland and they have won numerous awards regarding workforce satisfaction staff10, wellbeing11, leadership12 and managerial capabilities10.

Marketing Factors
Iceland is one of the UK’s top 10 grocery retailers and in 2011 was ranked 6th within the supermarkets category, with an 8% value share13. Iceland’s relative market share in the UK has been growing year on year due to their low price and promotional activities14 combined with the current state of the UK economy. Iceland’s product lines are frozen food, grocery, chilled and fresh which are priced at the budget end of the market14. Iceland focus on innovation in the UK frozen food market and have launched over 230 own branded products in 201215. Iceland focuses on providing customers with a healthy range of products to enable them to eat healthier9. Iceland state that they want their customers to make informed choices and they achieve this by providing clearly labelled products which include full nutritional information14. Iceland’s distribution is handled through four centres in Warrington, Livingston, Swindon and Enfield, which is in partnership with DHL10. In 2012, Iceland announced the appointment of Paul Foley as the International Business Director16; to focus on exploiting new opportunities and to grow Iceland’s brand throughout the World. Within this role he has taken responsibility of Iceland’s export business; ITEX17. ITEX currently export Iceland’s products; frozen foods, grocery and chilled across 34 countries in Europe17. Customers range from agents, distributors to independent and multiple retailers17.

Financial analysis
Iceland’s profits have improved consistently since 2007, posting over £147 million in 20122. This has enabled Iceland to focus on increasing their presence in the UK and Europe16. Working capital is the measure of a company’s efficiency and its short term financial health18. Iceland has a long term negative working capital which is likely to be down to reducing their debt2. In the long term, this is a positive for the financial health of the business, yet in the short term they may struggle to pay off immediate creditors2. The profit margin for 2012 was stated at 5.64% and the EBIT (equity before interest and tax) margin was at 5.51%2.The figures show Iceland’s performance has increased annually and they are in good stead for future activity2. Finally, Iceland is financially stable; their 2012 Quiscore (which shows the measure of how likely a company is to fail in the next 12 months) was 922. This shows that the company are secure and in a suitable position to proactively internationalise2. To compare, Birds Eye, a close competitor scored 81 in 201219.

Manufacturing factors
Iceland has a cold store in Oswestry and a variety of global suppliers20. A variety of products are produced and packed in Europe, Thailand and Brazil based on the prevalence of products in those markets20. Due to a lack of research on the distribution channels and where products are sourced primary research was necessary to gain a better understanding. Analysing the pictures below it is evident Iceland source frozen products from all over the World. Notably, fish is mostly sourced in Asia, with vegetables sourced from the EU. This is necessary as it allows Iceland to shorten their distribution channels and products can be transported to South Korea directly without having to pass through the UK therefore reducing costs.

Iceland state they have built close relationships with a collection of suppliers to constantly innovate and create new product developments21.

Iceland’s current resources and competencies
Table 3shows Iceland’s current key resources and competencies, these will provide Iceland’s sustainable competitive advantage and will help to facilitate internationalisation. | Resources | Competencies | Threshold | * Increasing profit margins and sales turnover annually * Own over 750 stores within the UK * Recognised brand | * Supplier relationships * Staff training and moral * Global supply chain * DHL relationship | Distinctive | * Loyal employees * Strong R&D department * Low price structure * Award winning CEO | * Innovative products and processes * Leadership capabilities * Table 3
Table 3
ITEX subsidiary * Business culture |
From the table above, strong management capabilities and a successful business culture will contribute to the internationalisation process. Iceland’s ability in innovation will also help them to adapt products to local market needs.

The Boston Consulting Group matrix (BCG) matrix (Figure 1)
Figure 1
Figure 1
The UK frozen food market is currently in growth4. With Iceland predominately selling frozen food and their expertise lying in this segment, this will be the food category that is taken to South Korea as it is based as a ‘Star’ in Iceland’s portfolio22. ‘Grocery’ and ‘Chilled & Fresh’ will not be integrated into South Korea. Iceland has a limited range of these products and finds it hard to compete against established competitors in the UK market22. With new lines being introduced and there being a level of market growth, ‘Chilled’ products sits as a ‘Question Mark’ and may be considered for internationalisation at a later date. Finally, ‘Grocery’ products represent a ‘Dog’ based on Iceland’s limited range of these products and the dominance of the “big four” competitors in this market, making growth rates poor22.
External Analysis
South Korea is the market of choice and will now be analysed in depth. This will include a broader macro analysis, to a more specific market analysis through considering the competitive environment within the frozen food market. PESTLE
POLITICAL | ECONOMIC | SOCIAL | 1. Stable government23 2. President: champion of business and basing future on green growth23 3. Strained relationship between North and South Korea24 4. Taxes are composed nationally and locally, a foreign company is only liable for tax on its Korean-source income25 5. Low tax rates; opportunity for businesses to invest26 | 1. Total GDP of $1116.25bn in 20116, with a 3.6% growth rate27 2. Currency for South Korea is Won (₩)6 3. Strong labour force of 25.1 million27 4. Low unemployment rates at 3.4%28 5. Average family income of $48,400, with a high disposable income per capita of $12,954.7029 6. High export to import balance ($552.8bn to $521.6bn)30 7. EU- South Korea Free Trade Agreement removes majority of import barriers between now and 20166 8. Foreign investors provided with high levels of protection through Foreign Investment Promotion Act31 9. Very stable currency28 | 1. Traditional values (e.g. marriage, women to look after household and do food shopping)32 2. Men are main source of income (growing female population and number of jobseekers)33 3. Approximately equal gender split33 4. Population ca. 49 million people34 5. Capital Seoul is the largest city, whilst 83% of population live in urbanised areas such as Daegu, Daejon, Busan34 6. Meals are traditionally prepared at home33 7. Strong concern for healthy eating33 8. Consume traditional South Korean dishes, yet western foods becoming popular33 | TECHNOLOGICAL/ENVIRONMENTAL/GEOGRAPHIC | LEGAL | CULTURAL | 1. Manufacturing industry; increased by 0.9% in 201235 2. High internet usage (39.4 million users)36 3. Committed to environmentally sustainable growth37 4. Encourage recycling, with shops charging for carrier bags37 5. Little risk of large scale natural hazards occurring36 6. Road, rail and air travel infrastructure well established36 | 1. Civil law system that has its basis in the Constitution of the Republic of Korea38 2. Patent rights and trademarks go through a variety of examination procedures and are well protected39 3. Ranked 39th on Transparency International’s Corruption Perception Index (CPI), making a well regulated trading environment24 4. Layered court system allows for control, to minimise corruption24 5. Ranked 2nd on enforcing contractual agreements (low costs and short time period)6 | 1. Hierarchical society40 2. Collectivist society40 3. Feminine society40 4. Highly uncertainty avoiding40 5. Official language is Korean. English is widely spoken36 6. High literacy levels (97.9% above 15 years old)41 7. Colours hold significant meanings (e.g. red represents masculinity, yellow represents knowledge, green represents prosperity and blue is feminine)42 |

Competitive Environment
Below is an analysis of the competitive environment in South Korea. Retailers, frozen food companies and customer trends will be considered, before a specific market entry strategy is determined.
The 5 largest grocery retailers are detailed below. The market is oligopolistic with many retailers operating, yet the top 5 account for over 56% of the retail value sales (the financial value of sales, forming a percentage share)43. There are a wide range of intermediaries that can assist with trading into South Korea. Retailer | Store Format(s) | % Retail Value (rsp) | E-Mart Co. Ltd. | Hypermarkets, Supermarkets | 18.1 | Homeplus Co. Ltd. | Hypermarkets, Supermarkets | 15.9 | Lotte Shopping Co. Ltd. | Hypermarkets, Supermarkets | 11.5 | GS Retail Co. Ltd. | Hypermarkets, Convenience | 6.1 | Table 4 43
Table 4 43
Bokwang Family Mart Co Ltd. | Hypermarkets, Supermarkets | 4.5 |

The grocery retail market in South Korea posted 6% value growth in 2011 to reach ₩64,000,000,000,00036 (£391,688,960,000)43. The growth is expected to increase at a compound annual growth rate (CAGR) of 1% by 201643. The market is dominated by hypermarkets, with the top three retailers all boasting this store format in their portfolios43. All three store formats are expected to grow over the forecasted period43. The South Korean government has realised the pressure that modern retailers have placed upon traditional markets and are taking steps to protect these stores44. This has made it harder for modern retailers to penetrate rural areas44. Based on the prevalence of modern grocery retailers, it would be desirable for Iceland to sell its products in one of the stated chains. With E-Mart and Homeplus being partly owned by Iceland’s competitors (Tesco and Wal-Mart who own Asda) in the UK22, entering these particular stores is likely to be unfeasible.

Frozen Food Manufacturers
Similar to the retail environment, this industry is oligopolistic with the top 5 companies accounting for 56% of the market45. All manufacturers operate on a nationwide basis and the majority produce branded and own label products45.

Company | % Retail Value (rsp) | CJ Cheil Jedang Corp | 16.89 | Dong Wong F&B Co Ltd. | 15.79 | Harim Co Ltd. | 12.81 | Lotte Ham Co Ltd. | 8.93 | Haitai Confectionary & Foods Co Ltd. | 4.63 |

Table 5 45

In 2011 the frozen processed food market increased by 5% to reach ₩656,000,000,000. (£401,481,184)45. This trend is expected to increase at a CAGR of 1% up to 201645. Own brands have proven to be most popular, with Dongwon by Dongwon F&B Ltd. and Lotte by Lotte Ham Co Ltd. leading the market45. The majority of frozen food is sold through grocery retailers (99.55%), with over 80% being sold through supermarkets and hypermarkets45. With Lotte Ham having expertise in frozen food manufacturing and having a strong route to market through their own stores, they may be a desirable partner to work with45. The fact that they predominantly focus on meats tailored to the Korean market45, may allow Iceland products to complement their current range.
Customer Trends
The below table analyses the frozen food market within South Korea in terms of the marketing mix. Some core issues that differentiate this market to the UK are the prevalence of hypermarket retailers and the focus upon healthy eating (this is a recognised trend in the UK, yet not to the same extent). Product | * Trend towards healthier foods45 with many food processors attempting to improve their ranges46 * Vegetable dishes are becoming prominent amongst women and children44 * Many consumers prefer to buy locally produced products, due to a perception freshness and a bond to traditional foods .Globalisation has resulted in an acceptance to westernised foods, particularly amongst younger markets44 | Price | * South Koreans are price sensitive with regards to food44 * Frozen food prices in South Korea are at a premium 47 to Iceland’s prices9 | Promotion | * Loss leader promotions have become a focus of advertisements for all retailers, with ‘BOGOF’s’ and price reductions being common44 * Manufacturer communications focus upon health benefits of the food47 | Place | * Majority of consumers shop at hypermarkets44 * ‘One stop shopping’ has become the major trend 43 * Growth of the convenience sector has risen44 * Many consumers taking advantage of internet grocery retailing44 * Consumers prefer an organised, clean store layout, with numerous sales assistants44 |

Target Market
Considering the above analysis, women who live in urban areas (inclusive of marital status and whether they have children or not) will form the primary target market for Iceland. The reason being, women are the primary food purchase decision maker 44 and there is a wide range of retailers to sell products into, in urbanised areas45. Women up to the age of 50 will be targeted, as the younger age group are more open to westernised foods and brands45. Also, the convenience benefits that frozen food offers suit this target market.

Porter’s Five Forces
Figure 2
Figure 2
This tool will be used to further analyse the competitive environment, through looking at the frozen food industry attractiveness across 5 core areas. Threat of new entrants - MEDIUM | * Growing market and wider economy * Government actively promoting trade * Established trade links with Western economies and numerous suppliers * Heavy financial outlay to internationalise | Threat of substitutes - HIGH | * Current competitors with high market share * Healthy foods proving to be popular with consumers * Traditional foods popular with consumers * Low switching costs | Competitive rivalry - MEDIUM | * Industry growth * Strong Competitors * High differentiation * High loyalty to existing local brands | Bargaining power of buyers - HIGH | * Large scale retailers and manufacturers hold power based on size and market knowledge * Numerous suppliers to choose from * Low switching costs * Iceland has limited (if any) brand awareness | Bargaining power of suppliers - MEDIUM | * Large number of suppliers with established trade links * Local market knowledge providing a core part of most entry strategies |
The industry is an attractive one for Iceland due to its growth state and relatively easy access to both the country and specialist suppliers. A concern is the high power of retailers and the strength of competition, in combination with Iceland’s limited brand awareness and product tailoring. Working with an established retailer and manufacturer in this industry will help to offset the concerns raised.
Lotte Group Analysis
From analysing the competitive environment, the Lotte Group was identified as a potential partner. Based on this a further analysis will be undertaken. The Lotte Group are a global organisation primarily based in South Korea, which operates in a wide range of industries47. Net profits were ₩2,600,000,000,000 (£1,591,236,000) for 2011 demonstrating their financial success47. They are also recognised as one of the top 10 organisations in Asia47. Their food, retail and distribution sectors are of interest to Iceland.
The organisation holds Lotte International, who are international distributors bringing foreign products into the Lotte retail estate48. They also hold Lotte LHP who run transportation within South Korea and hold specialist skills in conducting business research and sales promotion activity in store for Lotte affiliates48. Lotte has over 200 retail outlets nationwide comprised of both hypermarkets and supermarkets47. In addition to this, Korea 7 is a convenience store joint venture with 7-Eleven47. Lotte’s food and retail businesses are lucrative, holding combined sales revenue of ₩24,000,000,000,000 (£14,688,000,000) 47. Lotte are pursuing an internationalisation strategy with their retail outlets moving into Vietnam, China, India and Russia47. With Lotte Ham, product innovation is a major driver of the business47. In terms of corporate culture, Lotte places a focus on 4 value areas, including people development, brand custodianship, gaining customer insight and wider business growth47.

The most influential factors identified in the internal and external analysis will now be summarised in a SWOT, to aid the entry strategy and marketing mix decisions.
Strengths and Weaknesses | | Performance | | | High | Low | Importance | High | Maintain efforts * Innovators in the UK frozen food market, with high profitability * Low pricing strategy suiting South Korean market * Strong management team * Commitment to internationalisation (ITEX, International Business Director) * Health conscious business | Concentrate efforts * Comparatively small market share in relation to competitors (6th largest supermarket in UK) * Limited international market experience, currently only operating in Europe | | | | | | | | | | Low | Possible over investment * Increased sales from branded products e.g. Greggs * High brand awareness in UK market | Low priority * Limited product scope in relation to retailer rivals |

Opportunities | | Probability of success | | | High | Low | Attractiveness | High | Immediate focus * South Korean government promotes international business * High disposable income levels in South Korea * Working with an established South Korean business, such as Lotte Group * Concentration of population in urban geography, makes targeting easier * Continued growth state of frozen food market * Ease of trading into South Korea | Improve probability of success * Produce numerous products to South Korean tastes from the outset * Opportunity to sell numerous standardised UK products into South Korea | | | | | | | | | | Low | Improve attractiveness * Selling all products to numerous distributors that exist. | Drop * Control all aspects of the internationalisation through setting up Iceland stores in South Korea. |

Threats | | Probability of Occurrence | | | High | Low | Seriousness | High | Contingency plan * Trend towards locally produced healthy foods in South Korea. * Powerful retailers and manufacturers dominating the market * South Korean food and brands remain popular * Few retailers prepared to deal directly with foreign manufacturers | Monitor * Change in government policy regarding promotion of foreign business, due to high debt levels and new presidency * Frozen food sales decline after the forecast period * Misinterpretation of cultural norms in South Korea | | | | | | | | | | Low | Monitor * Continued state protection of traditional retailers * Considerable time taken to establish an unknown brand | Ignore * Tensions between North and South Korea negatively affect the frozen food market | Objectives and Market Entry Strategy
Market entry strategy is determined by two factors; risk and control49. A staged market entry strategy is proposed which is aligned with geographic and distribution objectives. Iceland will conduct activities with different SBU’s from the Lotte Group and are willing to sell exclusively in their grocery retail portfolio.
Objective 1(Short term: 12 months): Sell Iceland products to Lotte International to distribute. Have all distributed products across 30% of Lotte Group’s food retail outlet estate, focussing on urban areas of Seoul and Incheon.
With South Korea being a considerable geographic and cultural distance from the UK and Iceland having limited experience in Asia, direct exporting has been selected as the most suitable entry strategy. It utilises local companies expertise, whilst maintaining a low level of financial investment, thus minimising risk50. This is also a suitable strategy considering the reluctance of large retailers to work directly with foreign manufacturers45.
Using a distributor has been selected to further minimise risk50, as they will buy products from Iceland and take responsibility for all aspects of the selling process. With specific needs for an export licence and certain food products falling under specific tariff rates23 the products will be sold under incoterms, ex-works49. This avoids complexities with unfamiliar importation processes and reduces risk for Iceland, as product ownership (and relevant insurances) will be transferred when the product leaves the Iceland distribution depots with the distributor49. It is accepted that Iceland will be charged more for this service based on the distributor’s high risk and costs incurred50. Lotte International has been selected as Iceland’s distributor, based on their experience in trading across borders47 and their access to Lotte’s grocery retail estate47. There is no suggestion of Lotte International distributing products for direct competitors to Iceland47.
Lotte International will have control over the products distribution and marketing. Their local market expertise and knowledge is likely to be of benefit when making these decisions. That said, contractually Iceland will maintain as much influence over the geographic distribution as possible. There will also be a short term exit clause in the contract.
Objective 2 (Medium Term: 1-3 years):Contract Manufacturing with Lotte Ham to manufacture Iceland products, with Lotte LHP distributing products to 60% of Lotte Grocery retail outlets. Expand further south in the country, as far as the urban areas of Daegu and Daejon.
South Koreans are loyal to local brands and foods that are produced in their country44. This arrangement may therefore result in Iceland being perceived in a better light. Lotte’s knowledge and ability to source ingredients can also be utilised to produce foods that are suited to local tastes47. By avoiding selling to a distributor, Iceland will be able to regain control on marketing and sales activity. A negative aspect of contract manufacturing is the loss of control of the manufacturing process50 and the fact that Lotte will gain knowledge of Iceland’s manufacturing process. However, the benefits associated with manufacturing in the foreign market and the long term nature of the deal makes this a calculated risk. Lotte LHP will be used to distribute the products produced in South Korea47. With an improved product line, enhanced market knowledge and wider geographical spread, Iceland will penetrate up to 60% of Lotte grocery retail stores.
Objective 3 (Long Term: 3-5 years): Create a Strategic alliance with Lotte Group, to gain access to in depth market information and manufacturing/ distribution assistance. Increase distribution to 100% of Lotte grocery retail estate, capturing all urban areas nationwide.
The benefit of creating a strategic alliance is that Iceland can capitalise on Lotte’s assets regarding manufacturing, distribution, retail and also make use of their market knowledge49. Creating a strategic alliance can be done with a limited level of disruption, in relation to commitments such as joint ventures, as no new entity is being formed50. This allows for a greater level of flexibility than a joint venture or wholly owned subsidiary, based on the lower level of financial investment and lower infrastructure50.
Iceland can offer Lotte various resources and skills to make this a mutually beneficial arrangement; including a more expansive portfolio to complement Lotte Ham47 and strong capabilities with regards to innovation and NPD9. Lotte has started to pursue an international strategy moving towards Europe (currently in Russia) 47. Iceland has operating knowledge and assets in these markets which Lotte can utilise. Also, Iceland pursues similar objectives to Lotte Group (internationalisation, innovation) 9 and also operates a similar business model through both producing their own products and largely distributing them to their own retail outlets. These skills and assets that both parties bring to the alliance increase the chances of it being a success.
Internationalisation objectives Objective | Rationale | 4. In the first 12 months, ensure the Iceland brand is represented acceptably in South Korea based on agreed contractual terms. From year 1 onwards, produce at least 10 specifically modified products for the South Korean consumer. | Senior management will visit South Korea shortly after entry to ensure the contract is being fulfilled. Based on product trends, Iceland will produce 10 modified products commencing in year 2. This is realistic based on Lotte Ham’s production capabilities and market knowledge. Products to be produced are likely to include fish, meat, vegetables, chicken and meals for 1. | 5. In year 1 generate 10% prompted awareness amongst target market, from years 1-3; 40% and years 3 onwards; 70%. | In year 1, awareness will be low based on the narrow geographic spread and Lotte Group having control of the promotional strategy. After this, with increased market knowledge, increased geographic spread and control over the promotional strategy, these figures are achievable. | 6. After 5 years, hold a 5% share of the frozen food market in South Korea, making Iceland the 5th largest frozen food company in this market, with sales revenue representing 2% of total sales. | Currently overseas sales only account for 0.1% of Iceland’s turnover1; however the nature of the internationalisation plan and the growth state of the frozen food industry, suggests that a 2% representation over 5 years is feasible. |

Marketing Mix
As identified in the PESTLE and BCG analysis, the growth of the frozen food market in South Korea and the strength of this product category for Iceland have resulted in this being the only SBU to offer the market. The model below51 identifies which elements of a product or service ‘should be considered by marketers in order to meet consumer needs and wants’ with each level adding more value to the customer. It also acts as an opportunity to identify which elements of the product need to be adapted and standardised51. After studying the recent trends of frozen food sales in South Korea, five of Iceland’s frozen food categories will be introduced during the first twelve months of distribution with Lotte International based on their current growth. However, other categories that are in decline in South Korea such as frozen pizza45 will not be sold. The five categories which will be sold in South Korea are Meats, Chicken, Fish, Vegetables and Meals for One. These foods are the core product, defined as ‘the core, problem-solving benefits that consumers seek’51 and will not have to be adapted during the first twelve months. The actual product will be adapted to the South Korean market. The branding plays a key role in product management50 and it will have to be changed. The name ‘Iceland’ will still be evident on all packaging as it is important for Iceland to establish itself within the market and make customers aware of its products and the associated brand. The current Iceland logo features a red and yellow background. From analysis, red in South Korea is perceived as masculine whilst yellow represents knowledge. A more suitable colour scheme is green and blue; green representing prosperity and a fresh start42 which is suitable for a brand entering a new market, giving the customer an opportunity to try something new. Blue is perceived as feminine42 and therefore well suited to the target market. To be in keeping with South Koreas ‘Green’ Policy and Iceland’s environmental commitment, all packaging will be 100% recyclable. The language will be changed to South Korean as it is the dominant language and a detailed translation will be provided to ensure it is understandable. This will increase the cost to Iceland but it is important to adapt the actual product to suit the target market. Other areas will be standardised in keeping with the mission statement. The augmented product is any additional services which can be built around the core and actual products51. Iceland need to offer the consumer reassurance they are buying a high quality own label product and this will be achieved through a promise scheme. Any product that falls below the standard expected by the consumer can be taken back to store and swapped for another Iceland product. This builds a trust relationship between Iceland and the consumer. This is also an important source of information for Iceland and can form the basis of future product adaptations and rectify any issues with current products50. Lining the product offering with the market entry strategy is important to the success of the internationalisation strategy49. During the export stage a standardised approach will be taken with the five product categories. This is to lower risk and allow Iceland to establish the brand and raise awareness. As Iceland begin to become established within the market and build up necessary supplier relations with Lotte Ham, product innovation will be vital to their success as products can be adapted to meet specific consumer needs. From analysis, healthy eating is popular in South Korea44 and products will be developed in line with this. Finally it is important to understand the distribution networks Iceland products currently take; products are sourced from across the world. For example, vegetables sourced from the EU which will still be sent to the cold store in Oswestry, then exported by Lotte. However, fish products are mostly sourced from Thailand and mainland China. To save costs for both Iceland and Lotte these products will be collected directly from these locations.

Table 6 53
Table 6 53
As Iceland does not currently operate within South Korea they will have to adapt the price to suit the market whilst maintaining the low cost positioning globally. To adapt to local needs a geocentric pricing strategy will be adopted52. As identified in the analysis the currency in South Korea is the Won (₩). Indicator | 2013 | Documents to export (number) | 3 | Time to export (days) | 7 | Cost to export (US$ container) | 665 | Documents to import (number) | 3 | Time to import (days) | 7 | Cost to import (US$ container) | 695 | Characteristic | Export Price (£) | Manufacturers FOB Price | £1.00 | Sea & Freight Insurance | £0.12 | Landed Cost (CIF) | £1.12 | Import Tariff: 8% on CIF | £0.09 | CIF plus Tariff | £1.21 | 20% VAT | £0.24 | Distributor Purchase Price | £1.45 | Distributor Mark-Up (15%) | £0.21 | Retailer Purchase Price | £1.66 | Retail Margin (40%) | £0.66 | Consumer Purchase Price | £2.32 |
Table 7 50
Table 7 50
Within the first twelve months, Iceland will be exporting through Lotte International (incoterms, ex-works). To provide an idea on what price to charge Lotte, which in turn will be reflected in the consumer price they charge, their export costs have been calculated in the tables53. As an example, the £1 (assumed base cost) represents a bag of mixed vegetables sold today in any UK Iceland store. When exported to South Korea it will cost the end consumer £2.32. An identical product sold in Lotte stores costs ₩4,200 which is £2.5447. This means Iceland’s brand positioning has the capacity to remain the same as the UK, whilst maintaining an acceptable profit margin. As Lotte will take on all export costs, Iceland will incentivise Lotte on a commission basis. Lotte will take 10% of the retail margin of all products sold in their stores whilst Iceland will take the remaining 30%. If any Iceland product becomes more expensive than a similar competitor product after adding all exportation costs within the South Korean market, Iceland will reduce its profit margin to lower the overall cost of the product. This allows them to maintain the brand image of offering a high quality, low cost product.

After the first twelve months Iceland will then move into contract manufacturing and eventually a strategic alliance which will change the cost structure. After high initial investments, it is expected that Iceland will be able to increase their profit margin further through producing in market. After the first twelve months it will be important to review sales of all products. Any products underperforming, Iceland will reduce the price further in an attempt to draw in customers. Yet Iceland will need to be cautious as to avoid a price war with competitors, based on their small size in the market. Relating back the objectives Iceland intend to gain 5% market share within the first five years. Any new products will adopt a penetration pricing strategy to gain market share and attract new customers50. The geocentric pricing strategy will allow Iceland to tailor price depending on local costs and competition when Iceland expand into other South Korean cities.
In the first twelve months Iceland will charge for their products in pound sterling. After this period, they will start trading in South Korean Won to demonstrate a commitment to the internationalisation process. All dealings will be verified with a confirmed letter of credit, providing security for both Iceland and Lotte50. The stability of both currencies, should make trading in foreign currencies a relatively low risk process.
During the first twelve months of exportation Iceland will have no control over the promotion of products as Lotte will have full ownership rights to them. As a result, primary focus will be placed upon business-to-business communication between the two parties50. It is important for Lotte to understand the Iceland brand and its values, as this will allow to them to position it correctly in the market. A range of information will be provided and this will be complemented by a visit to South Korea from Paul Foley and other senior management team members from Iceland. This will signify a commitment to the distributor, which is recognised as a major issue regarding exporting54. The commission incentive mentioned in the price section should incentivise Lotte to drive sales of Iceland products.
In the medium to longer term, when Iceland gains more control over advertising a consumer pull strategy will be implemented50. Iceland will primarily make use of print advertising. This has been chosen as the promotional tool due to its effectiveness at raising awareness55. South Korea is a country with very high literacy levels28 and is a nation that makes wide use of print media, with over 100 national and local newspapers with high readership figures (51.3% of households subscribe) 56. Adverts will feature in Korean and the choice of advertising vehicle will be in line with the target market and geographical objectives. In the medium term, local newspapers/ magazines will be made more use of (e.g. AM7, specific to Seoul56). From three years onwards, advertising will also take place in national titles such as Chosun Ilbo (which has a women’s section) therefore effectively targeting the female market57. Online advertising will be made use of on Lotte’s grocery websites, due the analysis undertaken in the competitive environment regarding South Korean use of online shopping38. This should help to ensure the consumer moves through the hierarchy of effects from awareness through to purchase55. This will be further supported through sales promotions at regular intervals to encourage trial55. Push strategies such as distribution incentives with Lotte Group will also be implemented.
Fully adaptive localised communication will be used58. The higher costs and lack of consistency with this are appreciated50, however the cultural differences between the UK and South Korea40, suggests that adaptive communications will be most relevant. In South Korea women will still be the selected audience however the hierarchical society suggests they need to be targeted in a more culturally sensitive way50. On a practical basis, the adverts content can vary based on consumer trends in South Korea (e.g. the health benefits of Iceland frozen foods)45.Whilst the communications will be fully adaptive, they will still centre around the mission statement. In terms of integration; from year one onwards, press advertising will maintain a regular presence to grow awareness and this activity will be up weighted on national holidays e.g. Mid-Autumn festival in September and Christmas59. For the brand to be successful, awareness must be grown in its early stages. The activity should assist in achieving the five year market share, sales contribution and awareness objective.
South Korea has been chosen as the international market based on a stringent selection process outlined previously. Some of the major factors for this decision include the growth state of the frozen food market45 and the countries strong financial position28.
Urban locations within South Korea have been targeted based on the number of retail outlets in these areas and the government restrictions on modern retailers, preventing them from opening stores in rural areas45. Furthermore, analysis shows that the majority of the population live in urban areas, a large proportion of which form the target market. Seoul and Incheon will be targeted for the first twelve months. Combined these cities have a population size of over 12 million people and are well connected to one another (ca. 20 miles apart)38. The 60km radius around Seoul holds over 50% of the Korean population and accounts for 70% of retail sales60. From years 1-3 Iceland’s presence will expand further south in the country covering urban areas including Daegu and Daaejon, which have a combined population of over 4 million people61. Finally, from three years onwards Iceland will be present nationwide, covering further urban areas including Busan, which has a population of over 3.5 million people making it the 2nd largest urban area behind Seoul61.
Lotte Group is a suitable party to work with regarding place. As analysed previously, they have over 200 grocery retail outlets nationwide47. When Iceland’s products are manufactured in South Korea they will be produced at Chungbuk and Gyeongbuk (Lotte Ham’s facilities) 47. These are central locations that will provide a good platform to expand from being well connected by road to all major cities.
Using a foreign distributor is a suitable strategy as they have local market knowledge and the relevant infrastructure in place to deliver the products to retail stores62. Further advantages include; avoiding complex exportation processes and the management time incurred from handling such activities, also the fast access to market 62. However, the negative aspects to this is that Iceland have limited control over the products distribution and by adding another intermediary into the process they will induce higher costs and therefore lower profit margins62. Another negative, is that Iceland will gain little end consumer knowledge through using an intermediary62. Therefore, they should look to build strong relationships with Lotte Group from the outset to build a knowledge base. Selling products exclusively in the Lotte estate will help to gain access to this information, as it demonstrates a commitment to Lotte and Iceland will not be utilising this information with any of their competitors54. The excellent access to Lotte stores and the established nature of Lotte’s distribution network makes this a viable method. In terms of implementation, activity will be in line with the stated objectives and be supported through contractual obligations to ensure that the lack of control Iceland hold is minimised.
People, processes and physical evidence
The extended services marketing mix63 which is also known as the three additional marketing mix elements63 are important for Iceland to consider when internationalising even though Iceland will not be setting up their own stores.
‘People are crucial to success in marketing’64 as motivated employees are more likely to serve customers effectively, enabling them to establish relationships which are ‘mutually beneficial’ for both the customer and company64. It is clear from internal analysis that Iceland is passionate about their employees and they have received several awards for employee satisfaction. Throughout the market entry strategy, Iceland will need to ensure that Lotte Group are employing the best people and reaching the high standards Iceland would expect in their host country. A benefit for Iceland working with Lotte group is that they employ local people who understand customers’ needs, therefore reducing risk for Iceland. Lotte state that employees are key to their success; they place great importance on them and strive to create a pleasant working environment47. For Iceland’s longer term strategy within South Korea, they should share their expertise in leadership and managerial capabilities with Lotte. In the long term, Iceland will employ local people to gather local knowledge, as staff culture and customer expectations are different to the UK.

The process element of the marketing mix is any process that will affect the total customer experience50. It is important for Iceland to note that ‘customer expectations of process standards vary within different cultures’ meaning that standardisation is difficult50. Iceland should be willing to adapt many processes in particular customer facing aspects, however they should standardise core back office activities (e.g. stock planning) to minimise costs and disruption65. Throughout the entire market entry strategy, Iceland will need to ensure that products are available at the right time. Also, Iceland should form strong relationships with Lotte and make sure that processes are adapted where necessary and that Iceland’s products provide South Korean consumers with the best experience possible.

Many physical elements can make the product offering more tangible such as; product appearance, packaging and appearance of the seller location. These should be considered when Iceland internationalise50. Some of these elements such as appearance of seller location and employee uniforms cannot be altered. Iceland will monitor the appearance of these and once the relationship with Lotte is strong enough they should recommend changes if necessary. However, Lotte’s experience and knowhow will be of great benefit as their employee uniform and store layout are structured to meet South Korean preferences47.
Implementation is very important for Iceland to focus on with regards to their market entry strategy into South Korea. They will need to ensure implementation of the marketing mix and stated strategy meet the objectives set throughout the report.
Iceland’s current organisational structure is an International division structure50. The organisational structure that Iceland should adopt from year one onwards, for successful entry into South Korea, should be one which enables Iceland to ‘respond to relevant market environment differences’66. A geographical structure should be implemented as this will ensure Iceland are responsive to local market needs and become independent from other activities within the UK and Europe49. Paul Foley will still remain as overall International Business Director, but a specific team will need to be instigated to look after the Asia region of Iceland’s business. Even though this report specifically focuses on South Korea, once Iceland have established their business and relationship with Lotte, they can use this relationship to expand further into Asia.
The Gantt chart below shows the planning for Iceland to meet the international objectives stated successfully.

Table 8
Table 8
To quantify the marketing plan, it is important for Iceland to understand the costing involved. The below table shows estimated costs, considering major budgetary factors over the five year period: Tasks | Estimated Costs (Per Annum) | Direct exporting with Lotte | £200,00067 | Contract manufacturing with Lotte | £700,000 | Strategic alliance with Lotte | £600,00068 | Asia management team + travel/expenses | £500,0002 | Research and product adaption | £60,000 | Promotional activities within South Korea – 2 half page spreads per month | £200,00069 |
Figure 3
Figure 3

In addition to these estimates, approximation of the spending proportions for the marketing mix (figure 3). As stated previously, Iceland currently has healthy profit margins to enable them to fund their internationalisation into South Korea. Iceland also have decreasing amounts of short term loans and overdrafts in comparison to previous years2, meaning Iceland can afford to use short term finance to fund any extra expenses necessary.

Figure 4
Figure 4
The logical framework matrix will be applied to Iceland’s internationalisation strategy to assist in monitoring and evaluating the project and will be used as a project management tool70. | Project Description | KPI’s | Means of verification | Assumptions | Goal | Profitably integrate Iceland products into South Korea | Objectives 1-3 | Hard data (sales, market share) + soft data (brand awareness) | Market growth, customer trends, relations with Lotte Group | Purpose | Strategic alliance with Lotte Group | Knowledge sharing + use of facilities & infrastructure | Lotte’s data & physical resources + management progress reports | Strength of relationship over 5 year entry period | Outputs | Market entry, sales revenue, market share, NPD + brand awareness | Objectives 4-6 | Hard data (sales, market share) + soft data (brand awareness etc.) | Geographic distribution + integration of 4P’s | Activities | Market entry (objectives 1, 2 + 3) | Management, stock + product/market knowledge | Paul Foley’s monitoring & subsequent feedback reports | Sufficient stock + manufacturing can be integrated at Lotte’s facilities |
As has been highlighted for successful integration; the stated objectives must be adhered to on schedule and an assumption has to be made regarding the strength of the relationship with Lotte Group and the compatibility of their infrastructure with Iceland’s products.
Firms operating globally are most successful when they perceive changes in the international environment and develop strategies which enable them to adapt accordingly71. A stringent process will be put in place to control Iceland’s internationalisation strategy. A combination of bureaucratic (e.g. financial data) and cultural (e.g. shared practices with Lotte) control measures will be used to benchmark performance against the stated objectives and ensure activity is in line with the mission statement/ corporate ethos72. Data will be collected from a combination of Lotte’s point of sale data and independently funded research by Iceland. The strategy will be adjusted if the situation requires it. A balanced scorecard (figure 5) approach will aid the control process, as it considers the strategy from four core stakeholder perspectives73;
Figure 5
Figure 5
As is clear, all of the stated objectives relate to specific stakeholders, ensuring the overall strategy is successful. These objectives will be analysed every period to provide an early warning system if there are any deviations from what is expected. Whilst Paul Foley is managing the process, an extra level of control will be added, through providing regular updates to the remainder of the Board of Directors.
In addition to these measures, plans have been put in place to allow alternative strategies to be pursued if necessary. For example, using a distributor under ex-works terms for the first twelve months fully minimises risk for Iceland, allowing them to pursue other strategies if it transpires that South Korea is not a viable market to enter into. This will be complemented throughout the process with ‘exit’ clauses in contractual agreements.
It is assumed that the relationship with Lotte will be a success, yet if for any reason it is not and ties are broken, a contingency plan has been drafted. Since analysis suggests that working with a modern retailer and distributor is the most viable way to penetrate the market, Iceland will look to work with an alternative South Korean company, such as GS Retail.
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...UBTI2013 GLOBAL MARKETING Bachelor of Marketing (Hons) Bachelor of Business Administration (Hons) Bachelor of International Business (Hons) Bachelor of Business Administration (Hons) Entrepreneurship Year One Year Two 201401 3 credit hours 2 hours lecture per week for the duration of 14 weeks. 1.5 hours tutorial per week for the duration of 14 weeks 7 Lecturer and Tutor: Lecturer / Tutor  Mr. Neerjang Lama (Faculty of Business & Finance)  Dr Falahat Nejadmahani Mohammad (Faculty of Accountancy & Management) 3 Year of Study: 4 5 6 Year and Trimester: Credit Hour Lecture hours & tutorial hours 8 9 Mode of Delivery: Moderator Lecture & Tutorial Dr Gengeswari a/p Krishnapillai - Assistant Professor 10 Objective: The objectives of this unit are:  To provide a theoretical framework for analyzing global marketing strategies and orientations.  To examine the relationship between global marketing environments and global marketing strategies.  To examine the concept of global marketing research and its impact to the global marketing.  To import the knowledge of various entry modes into a foreign market place.  To highlight various marketing mix strategies applicable to global marketing. 11 Learning Outcome: On completion of this unit, a student shall be able to:  Identify different levels of global marketing orientation and its respective implications in the global marketing......

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...trim) Submitted By: Ankur Chauhan Roll No: 09 PGDM IB 2013-15(IIIrd trim) GUIDE: Dr. POONAM CHAUHAN GUIDE: Dr. POONAM CHAUHAN International Marketing Strategy in Automobile Sector in Emerging market International Marketing Strategy in Automobile Sector in Emerging market Research Paper Research Paper Abstract Globalization has not only opened up new avenues for MNEs, but has also benefitted the emerging nations who have adapted to it. It has formed the basis of growth and development for most emerging nations of course other factors too are relevant). This research paper seeks to examine the international marketing strategies of MNEs in the automobile industry, specifically for the emerging nations, because as our subsequent findings will prove, that these markets are currently the most promising and will remain so at least for a few years to come. When we consider the emerging nations, the most promising ones are obviously the BRICs (reasons covered in the following sections). Hence, for readability and convenience purposes, we have limited our research to these nations. Keywords: Marketing strategy, BRIC, TRIAD, MNE, emerging markets, JV Objectives of Study: 1) International Marketing strategies followed by automotive companies in Emerging markets. 2) The study also aims at understanding whether the marketing strategy of these global automotive companies are justified by analysing its impact on the key statistically significant......

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...worldwide 4 Standardization vs. Adaptation 4 Marketing mix 5 Consistent positioning 5 Haier’s mission statement 6 Haier’s Vision statement 6 Consumers value the country of origin 6 COO theory 6 Product category focus 7 Corporate name 8 Branding and strategy 8 Extent of globalization 9 Analysis of the brand 10 Marketing metrics 10 Revenue metrics 10 Marketing programs performance metrics 11 Profit per customer 11 Bibliography 13 Haier Haier Group is a Chinese multinational home appliances and consumer Electronics Company which has it headquarter in Qingdao, China founded in 1984. It designs, develops, manufactures and sells a wide range of products which includes air conditioners, mobile phones, computers, microwave ovens, washing machines, refrigerators, televisions etc. Research on brands and branding International marketing today requires that the products used by the consumers must be branded and have good branding image. China created a portfolio of global brand champions. These features were presented by John Quelch in 1999 that were common in all the ten brands, which are as follows. Strong in home market In order to be successful on a global level, firms first of all need to have strong position in their domestic markets. If the cash flow and market share at domestic level is strong, it enables a firm to fund an international rollout (John Quelch, p.560; readings in modern marketing). E.g.US brands such as Coca-Cola,......

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... International Marketing The worldwide success of International Marketing: Strategy and Theory is without doubt due to the authors’ thorough approach to the topic. Standard marketing texts tend to use anecdotes gleaned from newspapers and magazines. In contrast, Onkvisit and Shaw use cutting-edge scholarly works to provide a theoretical and decision-making framework to guide marketing strategies and applications. This fifth edition has been fully revised to include new data from top journals, the International Monetary Fund, Prices and Earnings (published by UBS), and Transparency International. It is also the only textbook available to provide an in-depth treatment of such important topics as intellectual property, national competitiveness, marketing barriers, gray marketing, global advertising, bribery, countertrade, and currency strategies. Sak Onkvisit is Professor of Marketing at San José State University, U.S.A. He has authored several books and has published in leading journals. An internationally recognized scholar, he has taught in several countries and has served as a Fulbright Senior Scholar and a Fulbright Senior Specialist. John J. Shaw is Professor of Marketing and Director of the MBA Program at Providence College. His teaching and research interests include Marketing Management, International Marketing, and Consumer Behavior. He has co-authored over 80 papers in journals and at conferences, as well as three books. International Marketing Strategy and......

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...International Marketing plan on FlipKart Service Student ID: 350 2015 DEEPAK, STUDENT ID: 350 FlipKart Manager 7/16/2015 FlipKart Service Submitted to Udara Wickramasinghe Submitted by Deepak Kumar Sreeramula (Student ID: 350) ICNZ 2015 Executive Summary China's spectacular economic growth-averaging 8% or more annually over the past two decades-has produced an impressive increase in the standard of living for hundreds of millions of Chinese citizens. At the same time, this economic development has had severe ramifications for the natural environment. There has been a dramatic increase in the demand for natural resources of all kinds, including water, land and energy. Forest resources have been depleted, triggering a RANGE of devastating secondary impacts such as desertification, flooding and species loss. Moreover, poorly regulated industrial and household emissions and waste have caused levels of water and air pollution to skyrocket. China's development and environment practices have also made the country one of the world's leading contributors to regional and global environmental PROBLEMS, including acid rain, ozone depletion, global climate change, and biodiversity loss. Without greater attention and commitment from the centre, China's environment is likely to CONTINUE to deteriorate throughout much of the country, causing......

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...5 Stages in the Evolution of Global Marketing: 1. Domestic Marketing: Ethnocentric orientation. 2 Export Marketing: Ethnocentric orientation. 3. International Marketing: Polycentric orientation 4. Multinational Marketing: Regiocentric orientation 5. Global Marketing: Geocentric orientation Domestic marketing: A company marketing only within its national boundaries only has to consider domestic competition. Even if that competition includes companies from foreign markets, it still only has to focus on the competition that exists in its home market. Export marketing: Generally, companies began exporting Indirect Entry means turning over international sales to a third party. Generally speaking, this third party does the exporting for you. Indirect entry can also include licensing deals as well. By utilizing indirect exporting, a company could use the services of an Export Management Company, distributors, or commissioned agents or brokers. Direct Entry you are dealing with a company in the foreign market, so it can be the end-user, retailer, distributor, or export management company in that market. Because the manufacturer is more involved, the manufacturer makes decisions about the entire export process - from market and distribution, sales fulfillment, and payment. International marketing: If the exporting departments are becoming successful but the costs of doing business from headquarters plus time differences, language barriers,......

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...of contents 1.0 Introduction 2.0 Situation analysis 3.0 Summary of key issues/challenges 4.0 Strategic Options and recommendations 5.0 Marketing Mix 6.0 Summary 7.0 References and bibliography 8.0 Appendices Introduction The global fashion industry is altering with higher end fashion stores opening and selling their goods on display in more international markets such as China. This report analyses and develops the foreign markets for high end fashion. A company has been set up is called Ted Maker Ltd. The company is looking into investing in overseas with its business. The company is already an established company which sells accessories in the UK. This report will seek to develop whether or not the company should open a store overseas. With competitors opening new stores and an increase in new store development, competition in the market is getting high. This indicates that how critical it is to the chain to expand its product lines and operations, in order to advance a competitive strategy to expand the financial attainment in the high fashion industry. The report will be seeking to identify important facts and figures around the business to recommend the best course of action to expand the chain. This report seeks to provide an analysis of the luxury accessories store by undertaking a strategic audit. The report will consider going on to any feasible strategic possibilities in worldwide expansion. 2.0 Situational analysis 2.1 Macro and Micro......

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...Introduction The original formula for Red Bull was developed in 1964; however, the Red Bull company was not founded until 1984 after a merger between Dietrich Mateschitz, marketing guru, and Chaleo Yoovidhya, the owner of the Red Bull formula. Categorized as an energy drink, Red Bull was initially designed to “treat jet lag and boost energy for truck drivers” (Hollensen, 2012). In today's era, Red Bull is commonly used as an energy drink; like coffee, and as a mixer in alcoholic drinks, like Red Bull Wings and the Jägerbomb. This aligns with the company's focus on the younger generations of partygoers and post-secondary students.   Red Bull’s marketing strategy is one of the key factors in their success, they created Mobile Energy Team that consists primarily of young university students driving around in specially designed Mini Coopers with large Red Bull cans on top to attract the younger audience. The students are Red Bull’s team out in the field that attend different events and provide sampling of the energy drink. Oftentimes, the Red Bull representatives host parties with cases of Red Bull. These representatives collect data from these parties and send it back to the company as a form of low cost market research. In 2010 Red Bull had 7,758 employees of which 5,000 were university students. Red Bull is also known globally for hosting extreme sporting events and sponsoring some 500 athletes. Over the years they have acquired four soccer teams, a Nascar team, and two......

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...International Paper: Combining Industry and Social Responsibility Marketing 406 Roosevelt University December 6, 2014 Natalie Mierzynska, Sujatha Lekshmivaragan, Dmitry Rozental, Ebuka Nkwonta Table of Contents Background 2 Objectives 4 Procedures 4 Summary of Findings 4 Detailed Findings 6 Defying Common Criticisms 6 Integrating Sustainability Principles 8 “Greening” and Beyond 11 Enlightened Marketing 14 Social Responsibility & Financial Success 15 Conclusion 16 Works Cited 18 Background International Paper (IP) is the global leader in the production and distribution of paper and packaging products ( It was founded more than 110 years ago, and produces products that we use every day including various types of paper, consumer packaging, pulp, recycling, and industrial packaging. The company’s stock symbol is IP, and a share of IP stock currently sells at around $53/share. IP is currently headquartered in Memphis Tennessee, and employs over 62,000 people (Kotler & Armstrong, 607). Last year, the company sold over $26 billion worth of product, placing it 111th on the Fortune 500. From a consumer perspective, when a multi-billion dollar producer of paper and packaging products comes to mind, we automatically assume that the company produces a large amount of pollution and destroys forests all over the world. However, International Paper prides itself on being on top of Fortune Magazine’s......

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