International
Marketing Strategy
Lauren Colvin
Patrick Lynch
Megan Revoldt
Kate Turkcan
International Entry
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Identify a target market in the UK
Adapt the product to fit target market
preferences
Design a supply chain that accounts for
production and distribution
Implement a communications strategy to
reach target market and induce trial of
product
Segmenting the Market
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20—29 age group
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Parents
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Metropolitan
University students
Young professionals, single
Need for convenient and inexpensive food option
Metropolitan & Suburban
Middle to Upper class
Young children—Age distribution between 5—14: 7,581,000
Age distribution between 25—39: 12,915,000
Influenced by children
60+ age group
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Retired
Need for convenient food options
Target Market
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20—29 Age Group
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Age distribution: 7,599,000
people
Single, working
professionals
Students attending
universities
Fast-paced lifestyle
Seeking convenient,
inexpensive alternatives to
eating out and cooking
Very brand conscious –
developed at an early age
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The “Student Pound” ≈ £14
billion annually =
$26,864,766,335
43% of 18 – 24 year olds
experience a form of higher
education
Spend a good deal of
time…
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At pubs and bars
At the cinema
In restaurants (mostly fast
food)
Participating in sports
Target Market
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VALS 2 Category
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Experiencers
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Young and compulsive
Excited about new products that will give them the
edge, or new experience they desire
Target Market
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PRIZM Segments
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Young Influencials
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Up and Comers
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Traditionally referred to as “yuppies”
Middleburbs, college graduates, young professionals
City centers, more mature, athletic activities, and night
life
Boomtown Singles
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2nd city, young working class, high value on functional
and convenient things in their lives
Adapting Uncrustables to the
Market
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Modifying product to meet consumers preferences in
the UK
 Replace current peanut butter & jelly and grilled
cheese filling with the combined ingredients: pizza
sauce, cheese and pepperoni
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60% of frozen pizza sales—cheese and pepperoni
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Replace white bread with thin layer of pizza dough
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Pizza is one of the nation’s top 10 most frequently
consumed foods.
Marketing Objectives
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Expected Sales (dollars and units):
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Frozen pizza sales US—2004: $2,782,254,592
Uncrustables sales US—2004: $27,500,000
 Ratio 10.12 / 1
To account for first-year product introduction in a new
market, estimated sales will be 2% of UK frozen pizza
sales
Frozen pizza sales in the UK—2004: $645,478,720.95
$645,478,720.95 (.02) = $12,909,574.42
Estimated retail price = $3.44 per unit
Total units sold = 3,752,783
Marketing Objectives
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Extent of Market Penetration
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Population of Target Market = 7,599,000
Objective is to induce trial and repeated purchase
in 15% of target market.
7,599,000 (0.15) = 1,139,850 consumers
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In order to reach expected sales value, each of the
1,139,850 consumers will have to spend
approximately $10 on the product in 1 year
Brand Equity & Positioning
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Creating a strategic alliance with
Goodfella’s Pizza, produced by
Green Isle Foods and owned by
Northern Food Plc
Goodfella’s is the leading frozen
pizza brand in the UK—owning
23% of the market.
 2004 sales--$148,472,836.31
 Average price range per unit—
£1.94—£2.99 ($3.69—$5.69)
Positioned as a quality pizza, made
with the finest ingredients and
designed to create a fresh-baked
pizza experience in your own
home.
Brand Equity and Positioning
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Partnership Agreement
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Green Isle Foods responsible for producing
product in Naas facility
Smucker’s responsible for contracting distribution
and storage
Specific marketing team responsible for the cobranding of product
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Coordinate strategy consistent with Goodfella’s and
Smucker’s image and reputation
Brand Equity & Positioning
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Top competitors:
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Chicago Town Pizza—owned by Schwan’s (US)
 2004 sales--$109,435,758
Dr. Oetker Pizza—family owned enterprise (GR)
 2004 sales--$53,852,413.24
Positioned against the competition—Goodfella’s
Stuffed Pizza Pocket are an affordable, convenient,
on- the-go, single serving of that great pizza taste
that you expect from Goodfella’s.
Product & Branding Decisions
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Brand Name
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Goodfella’s Stuffed Pizza Pocket
Product Decisions
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Important factors:
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Convenience
Taste
Price
Cooking method
Portion size
Core Product Decisions
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Stuffed Pizza Pocket
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6 inch diameter
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Round in shape (like a small baked pie)
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Thin layer of pizza dough stuffed with pepperoni, mozzarella
and provolone cheese, Goodfella’s specialty sauce and
sprinkled with parsley
Packaging Decisions
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Packaging Materials for Stuffed Pizza Pocket
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Cardboard box
1 stuffed pizza pocket wrapped in plastic
Package Design
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Rectangular box
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Size takes into consideration small freezers in the UK
Package Colors
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Primarily red, white and green—consistent with
Italian cuisine
Labeling Decisions
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Content
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Brand Name
Visual of Stuffed Pizza
Pocket
Nutritional Information
Ingredient List
Preparation Instructions
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Shelf Life
Storage Conditions
Contact information for
Green Isle Foods
Place of Origin
Bar Code
Distribution Decisions
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Manufacture of Product
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Green Isle Foods—wholly owned subsidiary of
Northern Foods plc
 One of the UK’s largest food manufacturers
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Produce frozen convenience foods for the Irish
and UK retail markets
Distribution Decisions
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Green Isle Foods operates facilities in Ireland
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State-of-the-art manufacturing technology in plants
Described as a “specialist in food conversion /
assembly, with manufacturing capability as its core
competence.”
Flagship facility for pizza is the plant in Naas, Co.
Kildare
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Recently expanded under a £25 million investment
project—incorporated the most advanced baking, topping
and packaging technology.
Distribution Decisions
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Distribution of Product
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McBurney Refrigeration Ltd
 Full range of refrigeration haulage
 Depots in Dublin and Liverpool
 Cold storage and chilled food distribution center on a
12 acre site in Liverpool to service increasing food
import traffic from Ireland
Distribution Costs
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Trucking from production facility in Naas to port in Dublin
(17 miles)
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$2.11 per mile (17 miles) x 2 for refrigeration = $71.74
Round trip = $143.48 per truck
Each truck can hold 10,000 lbs
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One box = 0.8 lbs
Each truck can transport 12,500 boxes
Need to transport 308,430 boxes per month
308,430/12,500 = 25 trucks per month
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25 trucks x $143.48 = $3,587 month x 12 = $43,044
$43,044 + 34% markup = $57,679 per year
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Source: Freight Transport Association of UK
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Distribution Decisions
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Distribution of Product
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Dublin Port Company
 “The Gateway between Ireland and the World”
 Principal port in the Republic of Ireland
 Positioned at the hub of national road and rail network
 Has terminals and facilities to the highest industry
standards
Distribution Decisions
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Distribution of Product
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Derek Horner Agencies Ltd.
 Customs clearance is performed in-house
 Full port agency services
 Containers provided to suit all types of cargo
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Temperature controlled containers
1 sailing weekly from Dublin to Liverpool
Distribution Costs
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Ferry from Dublin to Liverpool
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6 trucks per week holding 60,000 lbs of product
Shipping 60,000 lbs = $22,800
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Includes refrigeration and markup
$22,800 x 52 weeks per year = $1,185,600 per
year
Retail Distribution Regions
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Shipping to 12 regions
throughout the UK
Each region maintains 100
trucks, which operate
through a centralized
warehouse equipped with
frozen storage facilities
Trucks then disperse to
assigned retail outlets using
a “just-in-time” inventory
system
Distribution Decisions
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Retail Outlets within UK regions
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Tesco—10 depots supply to 779 stores
Somerfield—15 depots supply to 1,275 stores
Sainsbury—12 chilled depots supply to 498 stores
ASDA—19 depots supply to 258 stores
Safeway—18 depots supply to 481 stores
Distribution Costs
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Trucking from Liverpool to regions, then
regions to retail outlets
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1,200 trucks total
Cost per truck = $1,564
$1,564 x 1,200 trucks = $1,876,800 per year
Storage costs throughout the 12 regions
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$10,000 per warehouse in each region x 12
regions = $120,000 (markup and refrigeration
included) per year
Total Costs—per unit
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Production costs: 15% of $2.50 retail price (US) =
Truck from Naas to Dublin:
Ferry from Dublin to Liverpool:
Trucking throughout UK:
Storage in UK:
Total cost per unit:
 50% markup
Total revenue:
 60% markup
Retail before tax
 15% markup
Retail after VAT
$0.38
$0.02
$0.32
$0.50
$0.03
$1.25
$1.87
$1.12
$2.99
$0.45
$3.44 = £1.80
Promotional Budget
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Profit per unit = $0.62
Total profit = $2,326,725
Northern Foods receives 55% of the profits
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35% of profits go towards compensation for
production costs which are 30% of the total costs
Payment for use of Goodfella’s brand name =
20% of profits
Northern Foods profits = $1,279,699
Smucker’s profits: $1,047,026
Promotions Decisions
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Communication Objectives:
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Create awareness of the Goodfella’s Stuffed
Pizza Pocket among 25% of the population
between the age of 20—29, specifically those in
need of a convenient, affordable and quality
product within one year.
We hope to stimulate trial among 15% of target
population.
Promotions Decisions
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Overall Message
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Stuffed Pizza Pocket is an affordable, easy to
prepare and consume product for those on-the-go
and time-constrained members of the target
market.
Purpose of the product—make the daily hassles
of cooking less of a burden for the target market.
Allows them to focus their energies elsewhere.
The size and quantity of the product make it a
reasonable substitute for a traditional meal.
Promotional Decisions
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Creative Strategy
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Deliver clear, compelling message
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Emphasize what is important to target market
This age group cares about saving money
Consistent message
The Big Idea
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“Keeps you and your wallet stuffed”
Media Vehicles
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Outdoor Advertising—91% of promotional
budget
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$952,794
Objective: Create awareness and stimulate
interest in product among the target market
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Reach and Impact
Increases product credibility
Strategically placed in high traffic areas and easily
viewed
Creative and memorable
Media Vehicles
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Outdoor Advertising
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Billboards
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Contract with ClearChannel Billboards
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Purchase campaign type “National Cover A” which allows
for 100 billboards throughout the UK
 The budget will not allow for continual display of
billboards throughout the one year period
 Billboards will appear at the introduction of the product to
create awareness and will reappear throughout the year
to serve as a reminder to the target market
Billboard expenditure: $688,745
Media Vehicles
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Outdoor Advertising
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Ambient Media Expenditure: $264,049
Viacom Media offers general site packages for
Tube display
Media Vehicles
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Sales Promotions—9% of promotional budget
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Objective—to engage and motivate potential
buyers
Supplementing advertising and facilitating
personal selling—promotional giveaways
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Goodfella’s and Smucker’s brand reps distribute tshirts at local pubs/bars in each region
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12,000 t-shirts x $0.33 ea. = $3,960 per month
Annual cost: $47,520
Generate buzz and word-of-mouth
Sales promotion expenditures: $47,520
Media Vehicles
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Public Relations
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Objective—to promote a positive image, generate publicity
and foster goodwill
Promotion on Green Isle Foods website
 Promotes that product is available and relatively
inexpensive method of communication
Other Examples—media coverage, hosting special events
and sponsoring charitable campaigns
Disadvantages—cost, lack of control
Not feasible at this time beyond website publicity
Media Vehicles
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Direct Marketing
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Objective—this form of advertising is aimed
directly at target consumers, usually in their
homes, attempt to get them to take action
Examples—catalogs, coupon mailers and letters
are common forms of direct marketing
Not an effective approach to reaching target
Not feasible at this time
Media Vehicles
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Event Sponsorship
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Objective—opportunity to reach niche market,
create awareness and enhance image
Relatively new product and Insufficient funds
Not feasible at this time
Media Vehicles
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Advertising
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Any paid form of media communication
 Television—high absolute cost, high production cost, short
message life
 Radio—low attention getting, audio only
 Print
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Magazines—long lead time for placement, visual only
Newspapers—poor reproduction quality, selective reader exposure
Disadvantages—cost, lack of feedback
Not feasible at this time—will pursue options upon growth
of product
Summary
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Target market—20-29 years old
Strategic alliance with Goodfella’s Pizza (Northern
Foods plc)
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Stuffed Pizza Pocket – “Keeps you and your wallet stuffed”
Produced in Ireland and distributed throughout 12
UK regions
Product promoted through outdoor advertising,
ambient media and sales promotions