International Marketing: Snog Ice Scream in Switzerland - Research Paper Example

?International Marketing: Snog Ice Scream in Switzerland. Table of Contents International Marketing: Snog Ice Scream in Switzerland Table of Contents 2 Executive Summary 4 The Purpose of the Plan 4 Business Idea 4 Situation Analysis 5 Market Analysis 5 Business Environment 5 Competitors 6 Mission and (SMART) Objectives 7 Mission 7 SMART Objectives 7 Specific 8 Measurable 8 Achievable 8 Realistic 8 Time Bound 8 Entry Strategies 9 Target Market and Brand Positioning 9 Marketing Mix 10 Product 10 Price 10 Place 11 Promotion 11 Financial, scanning and controls 12 Market Development 12 Exit Strategy 13 Final Thoughts 13 References 14 Bibliography 15 Executive Summary Business organizations are presently operating in highly turbulent business environment. Companies are essentially trying to leverage the benefits of globalisation to reach out to new market segments. The present study would analyse the market entry strategy for Snog ice cream in Geneva. The business plan would include an analysis of the market and the business environment of the new market. In addition a strategy for market entry and subsequent product mix would also be prepared that would enable it to gain market advantage in the new market. Finally an exit strategy and a monitoring plan would also be prepared so as to help the firm emerge as a formidable player in the market. The Purpose of the Plan The aspect of globalization has led to a situation in which business organizations are continuously breaching geo political boundaries to reach out to new markets. The present business plan would be focussed on building a franchisee for Snog ice cream in Switzerland. The plan would cover the business planning including formulation of a set of objectives and mission strategy. The business plan would also include crafting entry strategies and a marketing mix for the new venture. It would also discuss about the firm’s targeting and positioning strategies in the new market as well as formulating an exit strategy for the successful winding up of the business to generate profitability and sustainability. Business Idea The business plan would be to set up a new franchisee for Snog Ice Creams in Switzerland. Snog is a popular brand of flavoured ice creams and yoghurt based in UK. The choice of the market assumes significance considering the fact that Switzerland is one of the most happening tourism hot spots of the world and shows immense opportunities towards products like ice creams. In addition to being a taste friendly food item the product is also a health oriented one with large scale health benefits (Snog, 2011). The main idea behind the new venture would be to provide a unique blend of taste and health to the customers. The product would largely be targeted at youth population that are both domestic as well as tourists who keep flocking the nation round the year. The new franchisee would help in spreading the highly popular concept of Snog ice cream to a new part of the world that has large scale opportunities. Situation Analysis Market Analysis Switzerland represents a very unique opportunity for players like Snog ice cream considering its vast tourism potential that draws a large number of tourists from across the globe. The per capita consumption of ice cream in Switzerland has been pegged at 8 litres that is significantly low as compared to market like Italy and US. This shows a large scope for a new market player like Snog ice cream to enter the new market as there is a large untapped market in the nation. However the market showed signs of a slowdown in 2010 that remains a cause of concern. The revival of the economies across Europe however would help generate renewed market interest in the nation (Euromonitor International, 2010). Business Environment Switzerland is a very peaceful and market driven economy that represents considerable opportunities for business organizations. The GDP of the nation in terms of purchasing power parity has been fixed at 324.5 billion US dollars with a growth rate of 2.6 percent. The per capita GDP value has been fixed at 42600 US dollars that shows immense opportunities for market players to establish their presence in the nation. The nation is also politically stable with a federal structure in the governmental administration. The legal system is also developed with the presence of an impartial and independent judiciary that accepts the jurisdiction of the International Court of Justice. The median age of the population is 41.7 years with majority of the population in the age bracket of 15-64 years of age (CIA, 2011). Competitors Snog ice cream would face stiff competition from established brand names like Unilever and Nestle. Some of the other leading market players in the region that would act as competitors for Snog ice creams include Migros, Artisanal and Mars that also have a significant presence and a considerable market share in the nation (Periscope, n.d., p.5). The most significant competitors include Nestle and Unilever that command the maximum market share in the nation. Migros, Unilever and Nestle together command the majority of the market. In addition to the established brand names there are other private label brands in the market that also command a suitable market share in the nation’s consumer market. The main market competitor Unilever has a very well established brand positioning as well as brand name backed by a marketing communication program that has led to considerable loyalty among the target market customers (Euromonitor International, 2010). Mission and (SMART) Objectives Mission The mission for Snog ice cream would be to provide a delightful mix of health and taste that creates a fun filled and delightful experience for the consumer. The business mission of the company would be to make a successful entry in Geneva and carve a brand name for itself in the market. SMART Objectives SMART is an acronym for Specific, Measurable, Achievable, Realistic and Time Bound. Organizations normally frame these objectives to ensure quantification and realisation of the objectives. The time bound nature of these objectives also ensures supervision and monitoring of the objectives (Siddons, 2008, p.48). The objectives of Snog ice cream in Switzerland would be as follows: To undertake market research and prepare business plan by 2 months To successfully enter into a partnership with a local market player To commence operations within a month of conducting research To open 2 stores in Geneva and being promotion To achieve break even by the end of 5 quarters Specific Specific implies that the objectives that are defined are very clearly defined with the nature of the goal to be realised. The objectives framed by Snog ice cream are clearly very specific as they lay down very clear milestones that are to be achieved by the company. Measurable Measurable implies that the objectives are quantifiable and can be measured with regards to the rate of accomplishment. Each of the objectives has a time bound factor associated that is evident from the fact that each of the objectives has a time frame for completion attached to it. Achievable The objectives framed by Snog ice cream are largely achievable as they have been prepared after consultation with the top management. The objectives have been framed on the basis of a market research that makes them highly achievable. Realistic The objectives can also be stated to be realistic as they have been prepared after consultations and keeping the top management and the board of the company into full confidence. Considering the expertise of the company in diverse market across the globe the objectives framed above are highly realistic. Time Bound Each of the objectives has a specific time frame or deadline associated with the completion of the same in reality. This makes the objectives highly time bound that can be easily monitored by the company and be the basis of setting deadlines for the tasks needed to cover the objectives. Entry Strategies The market entry strategy for Snog ice cream would comprise of a partnership strategy in which the firm would tie up with a local market player through a joint venture partnership agreement. The parent company would have 70 percent of the stake in the new subsidiary giving it management control for the new business unit. Tying up with a local market player would help in garnering advantage for the market player as it would be able to gain a better understanding of the local market conditions prevailing in the new market (Tamer, Knight & Riesenberger, 2009, p.395). Target Market and Brand Positioning The primary target market for Snog ice cream would comprise of individuals in the age group of 18-45 years. The target market segment would also include tourists as well as local individuals. The company would use various promotional campaigns to target the target market audience. Marketing channels like advertisement, digital as well as print media would be used to generate awareness among the members of the target market audience. The company would strategically locate its stores at places that command high footfalls including malls, tourist attraction centres etc. This would help the company to make the target market respondents be aware of its presence in the market. The company would also select a brand ambassador that would be a local celebrity. In addition to this the company would also have a product mix that would have local tastes and flavours. This would be in tune with the company’s strategy of thinking globally and acting locally (Phatak, Bhagat & Kashlak, 2007, p.209). The ‘glocalisation’ strategy would help Snog ice cream to make a better connect with the target market audience. The promotional campaigns would essentially position the product as a fun filled and innovative product that was also equally hygienic and good for health. This positioning would be largely unique and would help generate considerable awareness of the company in the minds of the target market audience. Marketing Mix The elements of marketing mix for Snog ice creams would include the aspects of product, price, place and promotions. The formulation of this strategy would be extremely critical for the organization to maintain a growth and sustainability in the market (Winston, 1984, p.27). Product Product features include the basic features of the product that would be launched in the new market. The products would be yoghurt based with various flavours. These flavours would have a local taste of the market that would be in tune with the ‘glocalisation’ strategy to be pursued by the company in the new market. Products would also include smoothies and various fruit based toppings. Most of the products would have natural flavours as the company would refrain from using artificial ingredients. The products would have high quality standards that would enable the company to position itself as a formidable market player. Price The prices for the products would be moderately high as the company would target upper middle class and premium customers. The large flock of high income tourists visiting the nation are largely in the high income bracket. Hence price won’t be a constraint for these customers provided that the product would have a high quality standard. Place Snog ice cream would have a distribution channel that would source products made from UK. The company would source the raw materials for the products from its existing facilities in UK and the final product would be manufactured after refining it in Geneva where a storage facility would be set up. In addition to the distribution channels the company would initially have its own exclusive stores that would be set up in locations where there is high traffic that includes places like shopping malls, tourist attraction centres. After initial success the company would set up franchisees in locations like airports and railway stations to penetrate the market in an attempt to increase its presence and segment its market share in the market. Promotion Snog ice cream would implement an integrated marketing communication strategy that would help in creating awareness of the product in the new market. The company would use marketing channels like advertising, electronic as well as print media as well as hoardings to promote the new product in the market. A local celebrity would be chosen as the brand ambassador for the company that would help in making a better connect with the local culture and sentiments. In addition to this the company would also use the online channel to promote its products. Social networking sites like facebook and twitter would be used to reach out to the target market audience. In addition to this the company would also use marketing tactics like banner and spot advertisements to gain market share in the new market and to position itself as a new innovative and hygienic product in the minds of the target market audience. Financial, scanning and controls The key performance and critical success factors for Snog ice creams in the Swiss market are stated below: Water efficiency and effluent based load should be less than 5 percent (Food and Drink Federation, 2010). Ratio of Revenue to expense should have a healthy margin (Tanzania Diary Board, 2006) Gaining at least 1 percent of the market share in the first year. Presence of skilled manpower Extent of success of the integrated marketing communication strategy Page hits on the website The company would finance the new venture partly through the retained earnings and teh rest from financial assistance from the financial institutions as well as from some amount of investment by the local partner of the joint venture agreement. Market Development Market development essentially implies using existing products in new markets (Johnson, Scholes & Whittington, 2009, p.346). In case of Snog ice cream’s market expansion plan the company would essentially replicate the successful products that are available in UK as the nation has cultures and sentiments that match those of UK. Moreover varying tastes and flavours would be customised according to the local taste and sentiments. Considering the fact that a large number of tourists would be the target market participants the company would also have a varying mix of tastes that it would bring in from its subsidiaries spread around different regions of the globe so as to gain a formidable brand image and positioning. Exit Strategy Snog ice cream would also have an exit strategy that would essentially be based on a liquidation policy. Under this strategy the company would dilute its stake in the market and ultimately sell off its entire stake after gaining a windfall profit (Pinson, 2008, p.8). The company would also provide ESOP’s to employees so as to make them participate as stakeholders and ensure their interests after divestment or sale off. The company would also rope in angel investors who would pump in funds for shareholding access. However the exit strategy would only be implemented in case of heavy market exigency or failure of the project or after gaining a desired capital gain from the new venture. Final Thoughts The analysis of the market reveals considerable market opportunity for players like Snog ice cream as the market shows considerable potential in terms of demand. However intense competition and maturity of the market would demand innovation from the company in terms of product offering that would enable it to distinguish itself from the rest of the market players. Strategies like thinking globally and acing locally should be used along with an effective marketing communication strategy to generate a good market share. Finally the company must also ensure a feedback mechanism for monitoring and evaluating the business strategies undertaken by the company so as to generate sustainable market advantage in the long run. References CIA. (2011). The World Factbook. Retrieved September 01, 2011 from https://www.cia.gov/library/publications/the-world-factbook/geos/sz.html. Euromonitor International. (2010). Ice Cream in Switzerland. Retrieved September 01, 2011 from http://www.euromonitor.com/ice-cream-in-switzerland/report. Food and Drink Federation. (2010). R&R Ice Cream - Case study: Reducing water use. Retrieved September 01, 2011 from http://www.fdf.org.uk/industry_casestudies/reducing_water_randr_ice_cream.aspx. Johnson, G., Scholes, K. & Whittington, R. (2009). Exploring Corporate Strategy: Text & Cases, 7/E. Pearson Education India. Periscope. (No date). The Ice Cream Market In Switzerland. Retrieved September 01, 2011 from http://www.fft.com/download/samples/periscope.pdf. Phatak, A.V., Bhagat, R.S. & Kashlak, R.J. (2007). International Management. Tata McGraw-Hill Education. Pinson, L. (2008). Anatomy of a business plan: the step-by-step guide to building your business and securing your company's future. Aka associates. Richman, L. (2006). Improving your project management skills. AMACOM Div American Mgmt Assn. Siddons, S. (2008). The Complete Presentation Skills Handbook: How to Understand and Reach Your Audience for Maximum Impact and Success. Kogan Page Publishers. Snog. (2011). About Snog. Retrieved September 01, 2011 from http://www.ifancyasnog.com/about/. Tamer, S.T., Knight, G. & Riesenberger, J.R. (2009). International Business. Pearson Education India. Tanzania Diary Board. (2006). TDB CORPORATE STRATEGIC PLAN. Retrieved September 01, 2011 from http://www.tzdairyboard.org/about_us/mission_vision.php. Winston, W.J. (1984). Innovations in hospital marketing. Routledge. Bibliography Griffin, R.W. (2008). Management. Cengage Learning. Longenecker et.al. (2005). Small business management: an entrepreneurial emphasis. Cengage Learning. Read More