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Global Marketing - Assignment Example

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Today the global economy is as turbulent as it gets. The economies of the western developed nations are still felling the wrath of the economic down turn of 2008. Therefore a lot of companies belonging to countries like U.K. or U.S. are looking to set up business in the emerging economies which includes the brics and mitsk countries such as India, China, Mexico, Brazil etc. (Ghauri and Cateora, 2010, p. 141). The present study has been done in lieu to analyze the internationalization process of a product which is actually not present in a targeted or host nations. Such circumstances would provide scope for a thorough understanding about the fundamental yet extremely aspect of setting up a business in an international market. During the course of the study various important concepts related to the international marketing such as the market attractiveness analysis, analysis of potential threats and opportunities and threats, evaluation and selection of appropriate market entry strategy, market segmentation, targeting and positioning has been discussed. Product Choice As per the pre-defined project criteria the company to be discussed has been chosen as Innocent Drinks. The company was founded in 1999 by Adam Balon, Richard Reed and Jon Wright. All of them were Cambridge University graduates. The main product produced by the company includes crushed fruits, vegetables and juices. The fruit juices provided by the company are mainly known as smoothies who are usually provided to the customers in small bottles and big cartoons. The ingredients used include apple, topical, mango, apple, berry, and other vegetables such as carrots, ginger, etc. In 2009, the company announced the decision to sell 10-20% of stake to the soft drinks giants Coca-Cola. On February of 2013 coca-cola increased the stake to 90%. The decision to internationalise Coca-cola becoming the majority stake holder provided a lot of opportunity for the company to global. The company already has international presence in the form of countries such as Ireland, France, Germany, Norway, Sweden, etc. However, the company does not have any significant presence in Latin America and U.S. Deciding which market to enter While deciding the appropriate choice of the markets come to mind including North American, Latin American countries and also Asian Countries. Among these Asian countries would most definitely be an interesting choice. But it has to be said that while entering the Asian market two diverse factors would be the extreme geographical and cultural differences. Also although the hot and humid conditions of countries like India looks to be tailor made for the launch of such products; idea gets eliminated on the count that the product is already present in India. Hence the next choice to look forward would be the Latin American nation. Among these the top two contenders would be Mexico. Despite of the recent economic downturn the country has witnessed a steady growth in the GDP since 2010 till present by 5.5%. The GDP per capita happens to be $15,782 at the end of the last fiscal year. According to a research conducted by just-drinks, the Mexican soft drinks industry grew by 3.7% in the last year and is expected to reach a value of $15.18bn by 2014. From 2008 to 2012 there also happens to be a steady growth in the disposable income of the people in Mexico. The demand for ...Show more
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Global Marketing Table of Contents Introduction 3 Product Choice 4 The decision to internationalise 4 Market entry strategies 7 Conclusion and Recommendations 9 References 11 Introduction Internationalization can be defined as the process through which a company looks to target international customers by making the products and services available to the customers…
Global Marketing
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