Uploaded by Aditya Bose

MG628 International Marketing Management (6)

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Introduction
Graze is a creative UK-based business that has made a name for itself in the industry. By
concentrating on offering its clients tasty and healthful snacks, Graze has developed a devoted
following of clients. The business is currently seeking to grow globally and has determined that
entering new markets will allow it to do so. This study mainly has the aim of analysing the
concept of globalisation critically according to particular context along with creating and
justifying a strategic marketing plan critically for successful launch of the business globally.
Graze's strategy for entering new markets, global advancements and how they apply to the host
nation, and communications aimed at the intended audience are among the subjects that will be
discussed. It is anticipated that the examination of these crucial facets of global marketing will
offer Graze the knowledge it needs to introduce and maintain its product in new markets around
the world.
Comparison of market
For companies contemplating an expansion into Europe, Germany is an excellent market. It is
the epicentre of one of the greatest economies in the world and the largest in Europe (Gabriel and
Bitsch, 2019). The strong infrastructure of Germany and its highly literate population along with
the technology advanced people makes it a convenient market for different kinds of investors
.Furthermore, Germany is a great place from which to reach European consumers because of its
large and growing consumer market. Sweden is far smaller in population than Germany, which is
among the most populous countries in Europe.
Companies might easily connect with a wide audience of consumers due to these factors. There
is a greater diversity of industries in the German economy, ranging from banking to services to
manufacturing. Germany's legal system is also strong and trustworthy, which gives businesses
confidence in the market. Germany is one of the top markets for businesses looking to expand
into Europe. Because of the nation's substantial population, established infrastructure, and highly
educated workforce, businesses can benefit from a sizable consumer base and a stable regulatory
environment. Due to its advanced technology, it is also a market that investors and businesses
looking to gain access to European consumers find appealing.
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1. Market Entry Strategy
Grace is a company of British origin and it is a well-known entity. It mainly deals in
manufacturing and proceeds with marketing food products such as snacks After experiencing
recent success, the company is now aiming to grow into new markets. Making a decision for
entering a brand new market is quite challenging. The possibility associated with making a direct
agreement with a popular and large chain of supermarkets needs to be scrutinised carefully at the
time of entering Germany (Friebel et al. 2022). Signing contracts directly with the leading chain
of supermarkets in China gave proper rights for the company to sell its products in the physical
stores. This plan has the benefit of giving Graze the exclusive right to sell in the chosen
supermarkets' locations, giving them an edge over rival companies. The German retail and
consumer landscape must be taken into account when determining whether this strategy is
feasible. The food retail market of Germany is highly competitive and controlled through a
number of large retailers in accordance with your monitor passport. Top 5 retailers of Germany
contributed about 70% of the sales in the grocery industry for the year 2017 (Horoś and
Ruppenthal, 2021). This implies that these retailers would be able to set prices and promotions
and exert significant market control.
Given that German consumers are notoriously finicky about prices, Graze products' ability to be
affordable will be crucial to their success. Additionally local products are preferred typically by
the consumers of Germany and the organisation may want to think about localisation of its
offerings in order to maintain competitive advantage in the market of Germany effectively.
Lastly the organisation will have the requirement of concentrating on differentiation of products
in order to meet the competition in the retail market of Germany and game proper profitability.
The advantages and limitations of direct arrangement or agreement with a major grocery chain of
Germany can be taken into account by the organisation in order to gain success in this market.
Positively, a direct agreement would provide Graze greater control over pricing, product
placement, and other crucial areas while giving it access to a sizable consumer base. Additionally
the supermarket chain needs to be well established and the organisation can gain advantage from
the recognition of the supermarket chain and use its present suppliers along with maintaining
proper relationships with its consumers.
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2. Global Trends and Their Application in the Local Environment
Trend 1:
One of the popular trends on a global level is rising veganism and vegetarianism which is
particularly important for the brand recognition of this organisation. The surge of vegans and
vegetarians in Germany is quite notable over the previous and it has been reported that their
numbers increased up to 20% (Neufingerl and Eilander, 2023). Given that Graze is ideally
situated to benefit from the growing popularity of plant-based diets, this trend is particularly
pertinent to them. For instance, Graze's selection of snack boxes that are vegan and vegetarian
may be a desirable choice for this expanding demographic.
There is proof that vegetarianism and veganism are becoming more popular in Germany. For
instance, the German government declared in 2017 that it intended to expand the options
available in public canteens for vegan and vegetarian diets. Furthermore, there seems to be a
growing demand for plant-based options in Germany, as evidenced by the notable rise in vegan
and vegetarian restaurants over the past few years (Weber and Schütte, 2019). It is suggested that
Graze in Germany concentrate more on promoting their snack boxes that are vegan and
vegetarian.
Trend 2:
The high desire for the food to be sustainable and organically is the second trained on world
wide level that is specifically important for the brand preposition of the organisation.
Considering the fact that Graze introduced different boxes of organic snacks recently this
popular trend is quite important for them. In addition, Graze has vowed to use environmentally
friendly packaging and partnered with the Rainforest Alliance, a nonprofit dedicated to
preserving rainforests and advancing sustainable agriculture. There is proof that organic and
sustainably produced food is becoming more and more popular in Germany (Gollnhofer et al.
2019). For instance, the farms of Germany dealing in organic products have experienced a
growth in a dramatic way in the previous years and the Government of this country has been
progressive in making large investments to support the agricultural methods that are
environmentally friendly. Furthermore, sales of organic food have increased by 10% in the past
year in Germany, indicating a significant increase in demand for organic food.
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It is advised that the organisation in Germany mainly emphasises on promoting its snake boxes
which are organic and quite sustainable. This can be accomplished through promoting the snack
boxes on different social media platforms and expanding its presence in the physical stores
dealing in organic and sustainable products (Bocken et al. 2020). Moreover the organisation
needs to focus more on creating sustainable and organic options of snack boxes that will attract
the attention of the consumers in Germany. Through this brand X can gain the ability to take
advantage in the market.
3. Country-Specific Communications
(i) Segmentation, Target, and Positioning (STP) strategy
Segmentation
In order to divide up the German market, Graze can employ a range of segmentation techniques,
including behavioural, psychographic, demographic, and geographic. The market is segmented
geographically to create distinct geographic divisions. The market can be segmented based on
age, gender, income, and education levels using demographic segmentation. Market
segmentation based on lifestyle, attitudes, and interests can be achieved through psychographic
segmentation. Market segmentation based on usage and loyalty is achieved through behavioural
segmentation (Bollweg et al. 2020). The target audience will be defined by the segmentation
criteria of age (18–40), income (high to medium), and lifestyle (healthy).
Target
Segmentation techniques can be used by the organisations for identifying the target market of
Germany for selling their products. The defined target market of Germany needs to include
customers belonging to every age and gender having high incomes and who are always health
conscious (Fernie, 2023). The target market for the organisation in the German market can be the
millennials who are health conscious and the generation X who focuses on quality.
Positioning
Graze can effectively position its products in the minds of German consumers by highlighting
their exceptional quality, distinctive product offerings, and health benefits. Additionally, Graze
can market its goods as tasty, reasonably priced, and convenient snack options that work well for
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any occasion. Graze can potentially penetrate the German market by leveraging its well-known
brand in the UK. Graze plans to enter the market as a high-end snack supplier, providing easy-toeat, healthful snacks produced with premium ingredients.
(ii) Briefly outline the marketing mix
Product: Graze ought to concentrate on customising its offering for the German market. In order
to ensure that the product appeals to German consumers, this may involve localising the
product's packaging and content. Furthermore, it would be beneficial for Graze to conduct
research on local preferences in order to determine whether any product range additions or
modifications would better cater to the German market
Price: Graze needs to make sure that their costs are reasonable and commensurate with the
quality of the goods. In order to increase sales, the business should also think about providing
discounts to its German clientele.
Place: Graze should concentrate on reaching the right customers through the appropriate
distribution channels. Using offline and online channels, like convenience stores and
supermarkets, may fall under this category (Schrage and Rasche, 2022). Graze should also think
about collaborating with nearby merchants in order to reach a larger audience.
Promotion: Graze should use a range of marketing channels, including digital marketing, direct
marketing, public relations, and advertising, to promote its products in the German market.
Advertising is a useful tool for reaching a wide audience and can be used to inform and raise
awareness of a product among consumers (Frei et al. 2020). This could involve print, radio,
television, and social media advertising. Graze should also think about utilising influencer
marketing. In addition to raising awareness, public relations can be a useful tool for cultivating
connections with the German market. Direct marketing can be used to turn prospects into
customers and is an efficient method of interacting with particular target audiences (Frank and
Peschel, 2020). Lastly, using digital marketing to reach a large audience and interact with them
personally is a great strategy.
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(iii) Examine the extent to which social media communications need to be standardized or
adapted
The best method for connecting with your target audience is through social media. The
successful launch of Graze in the German market depends on the standardization and
modification of social media communications. Graze needs to modify its social media
communications approach to better suit German culture and customer demands. According to
Tolstoy et al. (2021), social media platforms like Facebook, Instagram, and YouTube need to
adapt to the language and culture of Germany. For instance, Graze should make sure that their
communications are brief and direct because German customers prefer this style of
communication. Graze ought to leverage particular platforms that are more well-liked in
Germany, like StudiVZ and Xing. Graze needs to make sure that they interact with German
customers in a proper manner. This entails abiding by German traditions and customs, such as
avoiding direct communication and acting professionally and politely when interacting with
others. Additionally, Graze needs to make sure that the posted material is appropriate for the
German market and speaks to the culture.
Conclusion
It can be concluded that if the organisation has proper knowledge about the detail environment
and the consumer then they can enter the market of Germany in a successful manner and through
making contact with the major chain of grocery in the country by signing direct agreement. In
order to proceed with creation of segmentation targeting and positioning process for the local
environment in the Germany it is important for identifying the two major trains of global level
that are important for the brand proposition of brand X. Moreover the company needs to apply
successful combination of the marketing platform such as the social media platform which are
customised according to the demands and nature of the regional consumers. It can make it
possible for the organisation to effectively inform interact with and attract attention of the
German customers.
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