(MG628) International marketing management assignment identifying international market expansion strategy for Graze
Question
Task: Develop a set of SIX screening criteria to help evaluate 8 countries of your choice. Collect relevant secondary data to help assess how your chosen countries perform against the chosen criteria and evaluate what the figures are telling you from your international marketing management assignment.
Answer
Introduction
Graze is a leading brand for tailoring healthy snack-box as per the desired tastes of customers (Uk.graze.com, 2022)
After appointing new CEO, Joanna Allen in 2020, the brand wants to expand the business across European markets (Uk.graze.com, 2022)
Initially, 10 countries are determined; Austria, France, Spain, Portugal, Switzerland, Sweden, The Netherlands, Germany, Belgium and Denmark.
This international marketing management assignmentis going to research the suitability of countries under different perspectives in aligning with business demands, market size, population and many more.
Stage one: identification of screening criteria for the international marketing management assignment
SIX screening for evaluating 8 selected countries
|
Factors |
Description |
|
Preliminary analysis |
Prime step for understanding organizational weaknesses and strengths, risks and motivation in aligning with global processes. |
|
Country selection |
Need to select foreign countries for starting a business as per the company's criteria and objectives (Hendriks, 2020). |
|
Strategy for market entry |
It is required to analyse opportunities for foreign countries in the international marketing management assignmentincluding product terms, communication tools, sales channels and many more. |
|
Business visit |
Determining unique opportunities for knowing the business environment and place to start the business. |
|
Operational tool |
It includes custom duties, foreign language, negotiations, fiscal rules and others. |
|
Monitoring and final implementation |
Implementing a final action plan in the international marketing management assignmentincluding basic KPIs for introducing business in the selected foreign markets. |
Before approaching a new country's market, it is important to prepare the business as per their cultures, economic condition and market demands. It helps in determining the potential threats and opportunities while entering a foreign market. Graze considered for this international marketing management assignmentwill follow these criteria for ensuring its potentiality while entering new markets.
Contd...
|
Countries |
Factor 1 |
Factor 2 |
Factor 3 |
Rating |
Assessment |
|
Denmark |
Increased demand for potato chips, pretzels and others (Statista.com, 2022) |
Snacks market revenue is increased by 6.9% in 2022 (Statista.com, 2022) |
Due to Russia-Ukraine war, economic uncertainty |
6/10 |
It can be determined in the international marketing management assignment as an option for Graze due to market demands; however, the recent purchasing capability of individuals is not stable. |
|
The Netherlands |
The frequency of fried snacks and sweets consumption is 20.5% and 16.3% respectively (Mackenbachet al. 2022). |
Occasional healthy snack consumption in comparison to high-fat, unhealthy snacks. |
Supermarkets are concentrating on sourcing healthy snacks and beverages to promote healthy dietary choices (Mackenbachet al. 2022). |
9/10 |
The market scope is very high as per the international marketing management assignmentfindings due to the support of supermarkets. |
|
Germany |
The highly progressive market for low-calorie snacks due to the evolution of healthy food items |
Increased market demands for healthy snacks along with affordability and quick availability |
Presence of B2B and B2C distribution channels and proposing higher market revenue while existing competitors are highly accepted across the market (Mordorintelligence.com, 2022) |
8.5/10 |
Market demand is very high as per the findings of the international marketing management assignment. Required to maintain quick product availability with proper distribution and delivery options. However, it is found in the international marketing management assignmentthat already higher-valued competitors are present. |
|
Sweden |
Higher revenue rate and $1.18 billion in 2022 (Statista.com, 2022) |
Higher volume growth is expected in 2023 by 1.8% (Statista.com, 2022) Consumers are obsessed with healthy snacks |
Nuts and dried fruit snacks are not in demand at all |
8.5/10 |
The expected growth level is high and thus a higher demand can be determined. |
|
Switzerland |
$78.13 billion was earned in 2019 from snack markets revenue (Globenewswire.com, 2021) |
Increase of health consciousness among customers |
After the pandemic major downfall in market scopes and presence of excessive snacks brands |
5/10 |
As per the international marketing management assignmentthe competition will be higher and acceptance will be lower |
|
Portugal |
Higher demand specifically for multigrain chips and rice snacks (Prnewswire.com, 2022) |
Rising health concerns as obesity increases |
After covid-19, demand for healthy snack consumption is increased |
4.5/10 |
Specific product-based demand |
|
Spain |
Excessive demand for Churros rather than any other snacks |
Focuses on high-protein variants |
Limited acceptance for new snack products; however different variety is present |
5/10 |
Does not extend new and varied healthy products |
|
France |
High-protein, high-fibre and gluten-free snacking trends |
Target consumers are aged between 16 and 43 years (Foodnavigator.com, 2019) |
Veggie snacks are in trends |
7/10 |
Higher market value and demands for introducing healthy snack varieties. |
These factors mentioned in the international marketing management assignmentare important for determining market scopes of mentioned countries. Based on this screening, Graze can initially decline in some countries due to limited business operational scopes, market demands, or excessive competitors.
The screening table above in the international marketing management assignmenthighlights prime opportunities of mentioned countries in introducing retail or online delivery by Graze.
It helps in determining the business operational strategy of Graze while introducing new countries.
Stage two: data collection and criteria tables for the international marketing management assignment
Effectiveness of four selected countries:
The Netherlands and Sweden Germany and France
|
Country |
Channel |
Strategy |
Lead quality (max 5) |
Potential impact (max 5) |
Cost (max 5) |
Score (max 15) |
|
The Netherlands |
Social promotions |
Facebook and Instagram Ads |
High 4 |
High 5 |
Low 1 |
10 |
|
|
Content marketing |
Creating product-related blogs on WordPress or Medium |
High 3 |
Low 2 |
Low 2 |
7 |
|
Sweden |
SEO |
Get featured on top ranks while people searching on Google |
High 4 |
High 4 |
High 3 |
11 |
|
|
Email marketing |
Creating email marketing course for employees (3 weeks) |
High 3 |
Low 1 |
Low 1 |
5 |
|
France |
Target blogs |
Introducing posts on social media platforms |
High 4 |
High 3 |
Low 1 |
8 |
|
|
Community building |
Creating public relations through online events |
Low 2 |
Low 2 |
High 3 |
7 |
|
Germany |
Affiliate programs |
Setting up affiliate marketing scopes |
High 4 |
High 4 |
Low 1 |
9 |
|
|
Offline events |
Hosting roadside surveys or chat shows with a popular TV face |
High 5 |
High 5 |
High 4 |
14 |
From this scoring model mentioned in the international marketing management assignment, the impact of potential marketing scopes has been determined in terms of entering new countries.
|
Countries |
Organizational aim |
Linking with potential opportunities |
Impact |
|
The Netherlands |
Extending potential customers including children, housewives and office workers with its varied range of products |
Taste is a prime determining factor when choosing snacks. Generation X is limiting their sugar intake while consuming snacks in 2020 (Schlinkertet al. 2020) Baby Boomers are looking for improving healthier diet options As per the international marketing management assignmentfindings, need variety in healthy snacking for attracting customers |
Positive opportunity to influence people towards the healthy options |
|
Sweden |
Customized and tailored snack boxing |
Excessive demands for snacks Preferring own Swedish snacks Excessive demand for ice creams, chocolates and other non-healthy snacking Already present some giant brands such as N!CK includes healthy snacks and ice creams (Confectionaryproduction.com, 2021) It is found in the international marketing management assignment that consumer pattern is not properly detected |
Preferring own snacking options rather than market newcomers and absence of consumers' purchasing pattern |
|
France |
Presence of a subscription model |
Revenue of French snack market is $5.6 billion in 2019 (Agriculture.canada.ca, 2020) French desserts are covering a huge part of markets while omitting the chances for healthy snacks (Agriculture.canada.ca, 2020) Increases obesity among people It is found in the international marketing management assignment that different MNCs are already promoting healthy snacking in French market Demands for chips, cookies, cereal bars and many more |
Excessive competition and not very compatible demands for healthy snacking options |
|
Germany |
Offering both retail and DTC services |
Annual growth is 5.12% (Statista.com, 2022) Demands for Pretzels, crackers and others Volume is expected to grow at 2.4% in 2023 (Statista.com, 2022) The average per-person snacking consumption amount is 6.3kg in 2022 (Statista.com, 2022) Increase of interest towards basic ingredients such as chia seeds, oats, chickpeas and others Social value of healthy snacking is increased |
Presence of excessive scopes for Graze as demands is high. |
It is seen from the international marketing management assignmentthat mainly in The Netherlands and Germany, the demands and contemporary business environment are very compatible for Graze. The highlights of its market scope can make a positive impression while expanding its online delivery and physical retail store options in the mentioned two countries. Furthermore, the accurate scopes and detailed potential impacts are going to be illustrated in the next slide based on Graze.
Stage three: further research over two countries
Justification for the final two countries in the international marketing management assignment
The Netherlands
The growth of healthy snacking demands will be effective for Graze
Rather than France, The Netherlands has more accessibility while introducing a new brand in the market (Schlinkertet al.,2020)
Taste is the main thing among consumers when choosing healthy snacks and Graze is a perfect match for them
Customization will be preferable as it will be aligned with personal tastes
As per the analysis in the international marketing management assignmentNetherlands will be a perfect match for Graze while presenting a physical retail store in the market. Moreover, it is effective for positively influencing customers' choices as nuts and seed-based snacks are their prime favourite things and Graze has a wide option in that segment.
Germany
Graze has already online delivery options in Germany
Introducing a new product range in the physical retail store in Germany can be easy as the brand is already known to them
Presence of customer base and brand familiarity
Application of plant protein and fibre in snacks with twisting flavours
It is found in the international marketing management assignmentthat introducing new product ranges can be effective in attracting customers in Germany. It will make a positive brand image and thus it can determine an appropriate choice while expanding business in foreign markets. The adaptability of customers rather than Sweden will be effective for Graze.
Conclusion
Germany and The Netherlands are selected as the final countries for expanding business
Market acceptance is high
Higher consumers’ buying power
Increase in healthy snacking habits
Selected countries for the international marketing management assignmenthave potential opportunities as limited constraints. These will help Graze to make it an international healthy snacking brand.
References
Agriculture.canada.ca, 2020, Customized report service – Healthy snacks in France and Belgium, available at: https://agriculture.canada.ca/en/international-trade/market-intelligence/reports/customized-report-service-healthy-snacks-france-and-belgium (Accessed on 18.10.2022)
Confectionaryproduction.com 2021, Swedish founded N!CK’S healthier ice cream and snacks brand gains $100 million development funds, available at: https://www.confectioneryproduction.com/news/37351/swedish-founded-ncks-healthier-ice-cream-and-snacks-brand-gains-100-million-development-investment/ (Accessed on 18.10.2022)
Foodnavigator.com 2019, Health and indulgence driving snacking trend in France: Mintel, available from: https://www.foodnavigator.com/Article/2019/07/17/Health-and-indulgence-driving-snacking-trend-in-France-Mintel (Accessed on 18.10.2022)
Globenewswire.com 2021, Healthy Snacks Market Size, Growth, Trends & Research [2020-2027] | Demand in Australia, Europe, and Rest of the World, available from: https://www.globenewswire.com/fr/news-release/2021/10/25/2320235/0/en/Healthy-Snacks-Market-Size-Growth-Trends-Research-2020-2027-Demand-in-Australia-Europe-and-Rest-of-the-World.html (Accessed on 18.10.2022)
Hendriks, G., 2020. How the spatial dispersion and size of country networks shape the geographic distance that firms add during international expansion. International Business Review, 29(6), p.101738. https://doi.org/10.1016/j.ibusrev.2020.101738
Mackenbach, J.D., Hobbs, M. and Pinho, M.G., 2022. Where do Dutch adults obtain their snack foods Cross-sectional exploration of individuals' interactions with the food environment. Health & Place, 75, p.102802. https://doi.org/10.1016/j.healthplace.2022.102802
Mordorintelligence.com 2022, GERMANY SNACK BAR MARKET - GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2022 - 2027), available at: https://www.mordorintelligence.com/industry-reports/germany-snack-bar-market (Accessed on 18.10.2022)
Prnewswire.com 2022, Healthy Snacks Market to be Worth $152.5 Billion by 2030: Grand View Research, Inc, available at:https://www.prnewswire.com/news-releases/healthy-snacks-market-to-be-worth-152-5-billion-by-2030-grand-view-research-inc-301547651.html (Accessed on 18.10.2022)
Schlinkert, C., Gillebaart, M., Benjamins, J., Poelman, M. and de Ridder, D., 2020. The snack that has it all: People's associations with ideal snacks. Appetite, 152, p.104722. https://doi.org/10.1016/j.appet.2020.104722
Statista.com 2022, Snack Food - Denmark, available at: https://www.statista.com/outlook/cmo/food/confectionery-snacks/snack-food/denmark (Accessed on 18.10.2022)
Statista.com 2022, Snack Food - Germany, available at: https://www.statista.com/outlook/cmo/food/confectionery-snacks/snack-food/germany (Accessed on 18.10.2022)
Statista.com 2022, Snack Food - Sweden, available at: https://www.statista.com/outlook/cmo/food/confectionery-snacks/snack-food/sweden (Accessed on 18.10.2022)
Uk.graze.com 2022, our health promise, available at: https://uk.graze.com/ (Accessed on 18.10.2022)
