International marketing business strategy - MyAssignmenthelp.com

Question: Discuss about the International marketing business strategy. Answer: Introduction The purpose of this task is to provide a brief outline about the market entry process of Singapore based organization Old Change Kee which is aiming to prosper and grow in Korea. Old Change Kee is fast food and Beverage Corporation that renders a wide range of food products and services to consumers. Furthermore, the paper explains the marketing segmentation strategies which help to run the business activities in Korea. Here is also a discussion about the marketing mix strategies and SWOT analysis of the organization. Old change Kee is a food, beverage and snack chain in Singapore. The company was founded in 1956 with its headquartered is located in Singapore. It is the fast food company that specializes in the manufacture and sales of a wide range of high-quality food and beverage products. The firm has three outlets in Malaysia, and five in Indonesia. Along with this, old change kee has 19 outlets in central and nine outlets in north area. There are 6 outlets in South and 25 outlets in East. Furthermore, the organization maintains 19 outlets in West areas. The firm was incorporated in Singapore on 16 December 2004 as a private limited under the name old change Kee Singapore Pte Ltd. The organization also sells other types of finger food and snacks such as yam cakes, spring rolls, carrot cakes, chicken nuggets, breaded prawns, gyoza and fish fillets (Old Change Kee, 2017). Hang Keen Juan is the chairmen of the company. The firm wants to increase profitability and revenue in the modern world. Ther efore, the company has decided to expand and explore its business activities and operations in some other countries. Korea is the good option for the organization to flourish its business globally. Korea is one of the closest economic and trading partners of Australia. Foreign investment in Korea has been recognized as a significant source of job creation and advanced technology. The country uses innovative and unique technologies to provide several benefits to the countries. Old Change Kee will have to face several challenges while conducting business activities in Korea. The country has a literacy rate of over 98 percent, which is one of the highest scores in the world. The country is attractive and open for doing business operations globally. The company uses partnership strategy to increase the number of customers in the market. By using effective and dynamic partnership strategy, the organization can share the risks and challenges and make right decisions (Old Change Kee, 2017) . Selected target market gained via secondary research Target market plays an integral role to increase and maximize the profitability and returns of Old change Kee Company. The companys targets are of all age groups namely youth, working adults, children, young adults and the elderly in the Asian regions. Mostly, the organization focuses on the working adults and young adults to gain competitive advantages in the global market. The firm implements several strategies and policies to find out the right and appropriate market segments. The firm differentiates its products on the basis of target market across the world. The company has differentiated and targeted their customers, by matching their products and services to the suitable and appropriate customers needs, requirements and expectations (Wilson, Jones, Miller, and Pentecost, 2009). In addition, the organization provides catering services according to the needs and choices of the customers. Old Change Kee can improve and increase the outputs and returns in Korea because it is one o f the most dynamic and unique economies in the world. Furthermore, Korea has become a 13th biggest economy in the world. If the company operates its trading activities in this country then the government will promote the import of raw material and technology to beat the competitors in the world. The company finds the appropriate market segment in Korea to maximize the profitability and outcomes. Various analysis such as SWOT analysis, pestle analysis, porter five forces model are done by the firm to evaluate and analyze the external market of the country. It also helps to identify and measure the primary and secondary market in such country. If Old Change Kee starts its activities and operations in Korea then it needs to focus on children, women, and youngsters in such country (Cavusgil, Ghauri and Akcal, 2012). Market segmentation of Korea market for Old Change Kee has been stated below. Demographic segmentation: In this segmentation, the firm needs to focus on the age, gender, language, education, religion and income level of people. Lets talk about Old Change Kee, it is the fast food company where all types of food are available so there is no gender barrier for the organization. Apart from this, there is no age issue for the association to target all age group of people who buy the food products and services. Additionally, in Korea, all types of the income level of people are present who buy fast food products and services. Thus, the organization focuses on middle-class people, children, and youngsters who prefer fast food products. Moreover, Old Change Kee should understand the culture, religion, and values of the country and must produce products according to their choices and demands (Moon, 2015). Geographic segmentation: This segmentation divides the country by considering the geographical factors associated with the Korea country. Under this strategy, the firm selects a market to conduct business activities and actions successfully and powerfully. The firm should focus on the geographic segmentation to initiate and encourage sales in the market (Joh et al, 2011). Psychographic segmentation: This segmentation includes lifestyle and hobbies of people in that specific region. The market is divided on the basis of the interest of the consumers in the market. Thus, the company should focus on the geographic segmentation to render food and beverage products to the consumers globally (Demby, 2011). Behavioral segmentation: Lets talk about the behavioral segmentation, this strategy divides the consumers on the basis of their purchasing behavior. The income level of people is good in Korea so they can spend money for good quality of products and services in the market. Hence, it will help to provide a good opportunity to Old Change Kee Company in such country (Emmenegger, 2012). Suitability of market entry recommendations There are several entry modes that used by Old Change Kee company while conducting business activities in Korea. Modes of entry in an international market are the channels through which the company employs to gain entry to a new global market (Grnig and Morschett, 2012). The enormous entry modes have been discussed below (Blackburne and Buckley, 2017). Exporting: It is an effective and dynamic option to enter in the new international market for accomplishing the long-term goals and objectives. The U.S provides support to Korean companies to attain long-term goals and objectives. It is the well established and traditional method of reaching foreign markets. Four players such as exporter, government, importer, and transport provider play an integral role to promote and enhance export in other countries. Therefore, it can become a good and dynamic entry mode to explore and expand business activities in Korea (Terpstra, Foley and Sarathy, 2012). Licensing: It is also a good option to flourish the trading activities in another country. Licensing permits a company in the target country to use the property of the licensor. Licensing has the capability and potential to provide a very large return on investment. The firm can use this method to conduct the business activities at international level. Joint venture: There are five common objectives and goals in a joint venture such as risk/reward sharing, market entry, technology sharing, government regulations and joint product development. It also helps to provide political and economic benefits in Korea. Along with this, joint venture also helps to maintain coordination and control over the business activities in foreign countries (Yan and Luo, 2016). Foreign direct investment: FDI is an investment made by an individual or company in one country in business interests in another country to earn long-term profits in the foreign market. This method helps to minimize knowledge spillover and it helps to develop and build local market. The firm can use better skills and knowledge by using this method (Sachwald, 2013). Entry mode is important decision which should be taken by the firm by looking all attributes preset in the Korea. It is observed that in the Korea there is high change in ethnicity, language, values and culture if differentiated to Singapore. Thus, it will provide several benefits to the company if they will explore and flourish their business activities and operations in Korea by the way direct exporting and franchising. Now it is recommended that direct exporting is one of the significant methods to enter into the foreign market. In this method, the firm directs sell the products and services to the customers in the international market. Old Change Kee Company should use exporting method because it helps to minimize the risks and investment in Korea. It is the simple and common method to enter in the foreign market. This method is also suitable to increase and maximize the facilities of the company. Hence, the company should use this method in order to increase outputs and profitab ility in the global world. Korea is the hub for expansion and development in other countries. Apart from this, U.S is the biggest partner of Korea because it provides several infrastructure facilities, technologies and products and services to Korea (Luthans and Doh, 2009). Suitability of marketing strategy recommendations Marketing strategy plays a significant role in every organization to analyze and evaluate the risks and opportunities of the market. It is a long-term and forward-looking approach and policy to do planning for achieving the goals and objectives of the firm. It also helps to gain competitive advantages in the international market (Chen, Kim, and Yamaguchi, 2014). Old Change Kee is Food Company that distributes its products in Malaysia, China and Singapore. It is well known for curry puff and other food products. In addition, SWOT analysis is done by Old Change Kee Company to measure and identify the strengths and weaknesses of the competitors (Buckley and Ghauri, 2015). It also provides information about the risks and barriers of the foreign market. The SWOT analysis of Korea market has been discussed below. Strengths: Korea maintains effective and dynamic economy to attain long-term benefits in the market. The country is also trying to improve and enhance the monetary freedom and financial freedom. Korea is ranked 8th out of 42 countries in the Asia Pacific region. There is less corruption and pollution in Korea. It also makes Korea a very clean and hygiene place to initiate new business activities where everything is fair and unique towards the people which make it a very dynamic place to run the trade and business if compare to other country where corruption rate is very high (Wan, 2011). Weaknesses: Insolvency can be preceded very easily. Along with this, the country has been able to buy the luxurious and good quality of products and services. Thus, deep and effective consideration needs to be done in order to conduct a new business in Korea or to compete in the market of such country. The firm should focus on the quality and prices of the products and services to gain competitive advantages in the global market. Moreover, the company should focus on the marketing strategies and plans to attain long-term mission and vision of the firm. Opportunity: There is the favorable outlook for Korea tourism and travel industry. It helps to make it easier to earn profits and to attract more customers from all over the world. Along with this, the country has emerged to all over the world where music industry of Korea has burst to a country like China, Malaysia, Indonesia, and the US. This makes it easy to execute new business at international level. Furthermore, the country also provides cross-cultural training to the workers. It will provide several benefits to the company to stand out against the competitors in the world. Threats: The labor cost is increasing in South Korea therefore; it can become the biggest threat for Old change Kee Company. In addition, the country is constantly changing government policies and strategies. Thus, it is affecting the sustainability of the firm. The external business risk is also involved in Korea that influences the outcomes and profitability of the association (Snyder, 2012). Thus, Old Change Kee is a food and beverage corporation in Singapore. Now it is recommended that the firm should develop and build a marketing campaign to target audience for serving better customer service. A marketing research and survey shall be conducted by the firm in Korea in order recognize and measure strengths and opportunities of the competitors. It also helps to take advantage of opportunities in the global world. Apart from this, cross-cultural training must be provided in Korea to analyze and identify the culture and language of that country (Grant, 2016). Suitability of marketing mix recommendations Marketing mix plays an integral role to explore and prosper the business activities effectively and successfully. It is a combination of factors that can be managed and controlled by the organization to influence and attract consumers to buy its products and services (Kaynak and Herbig, 2014). Old change Kee Company uses marketing mix strategies to promote and encourage sales and demand for their products and services. It is a set of mixed factors which helps to know and understand about the food products and services. The old change kee company uses below-mentioned marketing mix to target Korea market efficiently and to promote profitability and revenue in that market. Product: Product mix strategy plays a vital role to initiate sales and outputs of the firm. In this strategy, the firm decides that what types of food products and services should be rendered to the consumers in the market. It is one of the significant factors of the marketing mix. Therefore Old Change Kee should monitor their product strategy to earn and maximize revenue in the Korea market. As Korea is a dynamic place to do business activities effectively. The domestic population is wealthy in that country. Furthermore, it also helps to provide growth opportunities to Old Change Kee Corporation. Mainly, the people of Korea monitor on the quality of food and beverage products and services. As a result, the firm needs to create differentiation in their food and beverage products so that long-term goals can be achieved. Furthermore, the firm must focus on the technology and development to improve their product quality. Also, it will help to gain customer satisfaction in the internatio nal market. Apart from this, Old Change Kee should focus on culture and language of the country so that people are easily guided to buy the products and services in Korea. Old change Kee Company should keep an eye on the demand, requirements, and needs of the customers to introduce new and innovative products in the market (Lilien and Grewal, 2012). Price: It is the second integral factor of the marketing mix that helps to determine the success and failure of the company in the global market. The organization should concentrate the prices of the products to attract more consumers in Korea. They should differentiate the prices of products and services from the competitors prices in order to set appropriate and reasonable prices of the food products. If the company set the suitable price for the product and service then it will help to enhance and increase the level of satisfaction of the customers. Appropriate prices of the products will help to earn maximum revenue and outcomes in the competitive market. The pricing strategy also includes the cost of manufacturing, distribution, packaging, and advertisement of the specific food products. The company should provide adequate and correct information to the customers related to the price and quality so they do not get disappointed while paying for any food and beverage product in th e competitive market. Along with this, Old-change Kee company should provide various types of discounts and offers to new customers in Korea to attract and retain more and more customers in such country (Kim, Kelly and Raja, 2010). Place: Place refers to the point sale where the firm wants to sell the products and services. Old change Kee Company keeps an eye on the demand, requirements, and needs of the customers to introduce new and innovative products in the market. The main aim of the dynamic distribution and place strategy is to make it easy the buying process of consumers. The company uses several types of distribution and promotional channels and strategies to promote and encourage the business of the firm. Old change Kee is the food and beverage industry thus, the firm set the suitable and attractive location to sell their products and services. Apart from this, online services shall be provided by the organization to earn optimum revenue. In addition, the association should make a partnership with distributors who help to endorse the food and beverage products. It will also help to gain competitive benefits in the global market. None of the firm can survive and grow its business without effective and d ynamic distribution channels (De Wit and Meyer, 2010). Promotion: It is the last strategy of the marketing mix to reach the target market and to attain competitive benefits. Old Change Kee should initiate and encourage promotions techniques and tools to maximize the profitability. The company should properly communicate with retailers and consumers by using several types of promotional methods and techniques. Direct selling, personal selling, and digital media communication shall be used and initiated by the organization to earn more revenue and returns. Promotion mix strategy helps to insist the consumers to buy the food products. This strategy also helps to reach the target audience in the competitive market. In this way, Old Change Kee should originate marketing mix in such way that it helps to increase revenue and profitability in Korea. In this way, the company is to meet its long-term objectives and goals with maintaining sustainability in the environment (Kim, 2010). Conclusion On the above-mentioned study, it is concluded that Old Change Kee Company is a food and beverage industry which provides fast food and beverage products in the global market. The company wants to expand and flourish its business in the international market of Korea to earn profits and revenue. However, it is not easy for the firm to enter in the global market. The firm analyzes and evaluates the external environment of the country before entering in Korea market. It helps to know and measure the opportunities and threats of the competitors. The firm uses several entry modes to enter in the Korea market. Along with this, Old Change Kee uses effective and dynamic strategies to carry business activities in the foreign market. It will also help to reach its target customers to maximize desired outcomes and results. Moreover, the organization uses marketing mix strategies to increase the profit and promote the sale of the products and services. 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