Premium Essay

International Market Entry

In: Business and Management

Submitted By milliewall
Words 3549
Pages 15
International Marketing

Marketing Wine in the Chinese Market

Executive Summary
China’s demand for Western wine has rapidly increased. This has created a market opportunity for high end, quality wine companies from Australia to export their products to China. The product that will be focused on is Glandore Wine from the Hunter Valley. The report will focus on exporting this product into the Chinese market.
There should be a strong focus on building brand reputation and maintaining long-term business relationships. There are multiple entry types into foreign markets yet Chinese regulations limit the mode of entry. The recommended mode of entry for Glandore wines is a Joint Venture. The decision between product standardisation and customisation is an important aspect of strategic decision-making. It is recommended that Glandore does not customise their core product of wine, however it is recommended that other product attributes are customised to appeal to the Chinese market. When promoting Glandore wine in the Chinese market there should be use of advertising, public relations, sales promotion and personal selling.

Table of Contents

Executive Summary ……………………………..…. 2 1. Introduction ………………………………………………... 4

2.
2.1 Market Entry………………………………………………4
2.2 Recommendations ………………………………………5

3.
3.1 Product Standardisation and Customisation ……..…..7
3.2 Recommendations…………………………………….….7

4. Promotion in China
4.1 Push Strategies……………………………………….…. 8
4.2 Pull Strategies………………………………………….… 9

5. Conclusion…………………………………………………….10

6. Reference List…………………………………………………11

1. Introduction
Middle-class affluence in China is beginning to fuel changes in consumption, which creates market opportunities for higher end products. Exporting wine to China that is of higher quality is rapidly increasing. Some wine companies…...

Similar Documents

Premium Essay

Modes of Entry When Entering International Market Management Essay

...International business or Global marketing is growing at a fast rate and there are more than 180 nations-sates in the world with different market and profitable potential. However for an organization to earn sufficient income in the global market it needs to know the right time and form of market entry mode whilst entering International market (Hill, 2003). Therefore this essay will focus and assess the need for an organisation to use a range of modes of entry while entering the international market. In due course it will give an overview on International marketing literature review, views on variety of entry modes, entry selection criteria, examples based on cased studies and conclusion. General Understanding of International marketing refers to marketing of goods and services from one country to another. Producing and marketing of products in more than one country is also termed as international or multinational marketing. But according to Mc Auley (2001) International marketing can be defined quite simply as “the performance of business activities that direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit” much similar to domestic marketing. However Kahler (1983) argues and identifies that “International marketing differs from domestic marketing for one basic reason: it involves doing business with individuals, firms, organizations, and/or government entities in other countries”. The author further argues that the......

Words: 2752 - Pages: 12

Premium Essay

Modes of Entry Into International Markets

...Modes of Entry into International Markets (Place) How does an organization enter an overseas market? Background A mode of entry into an international market is the channel which your organization employs to gain entry to a new international market. This lesson considers a number of key alternatives, but recognizes that alteratives are many and diverse. Here you will be consider modes of entry into international markets such as the Internet, Exporting, Licensing, International Agents, International Distributors, Strategic Alliances, Joint Ventures, Overseas Manufacture and International Sales Subsidiaries. Finally we consider the Stages of Internationalization. It is worth noting that not all authorities on international marketing agree as to which mode of entry sits where. For example, some see franchising as a stand alone mode, whilst others see franchising as part of licensing. In reality, the most important point is that you consider all useful modes of entry into international markets - over and above which pigeon-hole it fits into. If in doubt, always clarify your tutor's preferred view. The Internet The Internet is a new channel for some organizations and the sole channel for a large number of innovative new organizations. The eMarketing space consists of new Internet companies that have emerged as the Internet has developed, as well as those pre-existing companies that now employ eMarketing approaches as part of their overall marketing plan. For some companies......

Words: 1201 - Pages: 5

Premium Essay

International Market Entry

...The concept of ‘internationalization’ is strongly related to a process of involvement and accurate decision making regarding the entry or expansion into new or existing markets taking into consideration dynamic factors and limitations that could influence the entrepreneur. As Buckley J. and Ghauri N. (1999:85, 86) state, the meaning is used to describe how growth of international businesses is mainly dependant on the ‘inward-outward interlink’, thus acquiring foreign commitment over time through a six dimension pattern. The framework suggests that the success of international companies is linked to foreign operation methods and the change tendency as well as sales objects and targeted markets, organizational structure and personnel together with finance and technology. Therefore, in terms of analysing the start-up for a new venture, entrepreneurs should focus on developing and integrating the abovementioned and as Oviatt and McDougall (2004:31) indicate, gain the competitive advantage through resource utilisation and output sale in multiple countries. In order to achieve that, proactive strategies such as alliances, manufacturing capacity or marketing expertise should be taken into consideration as suggested by Buckley and Casson (1976:4) and consistent with a value added approach rather than asset owned. Therefore, the strategy is more concerned with small and medium size firms which start up locally and then mature to become consistent with the MNE theory and foreign......

Words: 2625 - Pages: 11

Free Essay

Market Entry Strategy

...MARKET ENTRY STRATEGY The market entry strategy framework encompasses several services that are put together to help our customers to enter a new market. These services can be delivered separately depending on your needs and stage in the internationalisation process.  With our proven market entry strategy framework, we assess whether you should enter a market or not, why, and how. The strategic framework comprises 4 phases that focus on specific issues of the market entry: - Market assessment - Business case development - Implementation roadmap - Go live After each phase, based on the deliverables produced, the client will decide whether or not the entry in the new market must be pursued. Each assignment begins with a “start up” aimed at developing a complete understanding of the client organization, products and processes, as well as a finalising and initiating the project. Each element within the strategic framework will deliver strategic reports for the project sponsor and management board.  Market Entry Strategy Framework This phase is the formalization of the information collected in phase I. This must be done in close collaboration with the client, since assumptions need to be validated to produce coherent figures in the financial analysis. The following sections of the analysis are used to assess: - The attractiveness of the market - The difficulties to enter in the market and the capabilities the client has to overcome them - The potential......

Words: 673 - Pages: 3

Premium Essay

International Entry and Country Analysis

...INTERNATIONAL ENTRY AND COUNTRY ANALYSIS A Lecture Programme delivered at the Technical University of Košice Andrew Harrison Formerly of Teesside University, United Kingdom December 20112 Andrew Harrison’s Brief Biography Andrew Harrison was a Principal Lecturer and Subject Group Leader in economics at Teesside University until August 2010 and has been a visiting lecturer at the Technical University of Košice since April 1993. He has also been a visiting lecturer in Germany, Ukraine and Singapore. Since leaving the full-time staff of Teesside University, he has continued to work as an occasional lecturer and as an external examiner at two other UK universities. He holds qualifications from London, Salford and Leeds Universities and Trinity College of Music, London. In April 2008, he was awarded the degree of Doctor Honoris Causa by the Technical University of Košice. He is married to Heather and has two grown-up children, David and Rachel. In his spare time he is a keen amateur pianist and organist. Brief Course Description International business activity is one of the key features of the contemporary global economy. The decision to venture abroad involves the evaluation of alternative entry modes, bearing in mind the degree of risk and the suitability of the business environment in a potential host country or region. Political, economic, cultural and other factors are all of vital importance. This short course aims to explore these issues in the light of current research and...

Words: 15285 - Pages: 62

Premium Essay

International Market Entry Strategies Redbull

...STRATEGIES IMBA 2014/15 International Graduate Center (IGC) Hochschule Bremen University of Applied Sciences Prepared By: Bakaa Chkeir Sahil Sabharwal Eric Branson Smith Khandaker Nazmul Alam Table of Content Part – 1: Introduction Part – 2: Red Bull’s General and International Strategic Approach By Sahil 1-2 3-6 Sabharwal 7-10 Part – 3: Red Bull’s Branding & Segmentation Strategy By Eric Branson Smith 11-15 Part – 4: Red Bull’s BCG & ANSOFF MODEL By Bakaa Chkeir By Bakaa Chkeir Part – 5: Market entry and distribution strategy By Khandaker 16-24 Nazmul Alam 25-26 Part – 6: Bibliography PART 1: INTRODUCTION A Brief History of Red Bull from Red Bull Inspired by functional drinks from the Far East, Dietrich Mateschitz founded Red Bull in the mid 1980's. He created the formula of Red Bull Energy Drink and developed the unique marketing concept of Red Bull. In 1987, on April 1, Red Bull Energy Drink was sold for the very first time in its home market Austria. This was not only the launch of a completely new product, in fact it was the birth of a totally new product category. Today Red Bull is available in more than 166 countries and around 40 billion cans of Red Bull have been consumed so far. As of the end of 2013, Red Bull employed 9,694 people in 166 countries - compared to the end of 2012 when we had 8,966 employees in 165 countries. In terms of further expansion, Red Bull is targeting the core markets of Western Europe......

Words: 4492 - Pages: 18

Premium Essay

Entry Modes in International Business

...Development of International Business since the 1870s | STUDENT NUMBER: | 2 | 1 | 8 | 5 | 9 | 4 | 1 | WORD COUNT*: | | 2 | 4 | 3 | 1 | *excluding bibliography, references and appendices Please submit your assignment to the designated submission venue. ------------------------------------------------- FOR OFFICE INFORMATION ONLY Extensions All extensions requests must be submitted to programmes administrators in advance of the submission deadline. | Extension granted until: | Authorised by: | Most common Strategies to enter an International Market Development in International Businesses Jonas Meyer Glasgow University | | | | Adam Smith Business School | | | | Place & date: | Glasgow, 17. February 2015 | | | | Name, initials: | Meyer, JonasExchange Student fromMaastricht University | | For assessor only | | ID number: | Glasgow ID: 2185941MMaastricht ID: i6054474 | | 1. Content | | Study: | Development of International Business | | 2.Language structure | | Course code: | MGT 4060 | | 3.Language accuracy | | Tutorial number: | Wednesdays, 9-11am | | 4.Language: Format& citing/referencing | | Course Coordinator: | Dr Valerio Cerretano | | Overall: | | Writing assignment: | Essay | | Assessor’s initials | | Your Glasgow email address: 2185941M@student.gla.ac.uk Table of Content 1. Introduction 2 2. Motives of International Business 2 3. Forms of International Business 3 3.1 Equity......

Words: 2934 - Pages: 12

Premium Essay

Market Entry

... This section discusses the market entry strategy that is used to enter the South African market would be direct exporting through a distributor in South Africa. Through a distributor/intermediary but would these intermediary is customer based in the South African market. Participating in Trade shows and exhibits in association with African Farmers Workshop and Expo other similar associations to meet potential customers. Direct exporting would not require a large investment and understand and test reaction of customers. Using a distributor would be a good start for Agrium Inc. to enter South African market and understand how the product is accepted and expand into other parts of Africa. As the demand for imported fertilizers is increasing due to the limited and high prices of locally produced fertilizers and also the lack of fertile soil appropriate for agriculture this as posses the right time to enter and capture the market and a distributor would be a faster and easier way to enter the market. The trade shows and exhibitions would provide a good platform to interact and build a relationship with potential distributors. Even getting touch with the South African embassy, or the Canadian embassy in South Africa could be helpful to decide on a distributor, also become a member of Fertilizer Association of Southern Africa (FERTASA), which brings farmers and compnies providing any agricultural products together providing a good platform to meet more potential clients.  Agrium......

Words: 869 - Pages: 4

Free Essay

Market Entry

...Evaluating new markets 6.1 Criteria for evaluating new markets Criteria for evaluating the geographical market in general Criteria for evaluating industry markets inside the geographical market Key figures Key figures  Development of population  Development of GDP  Development of GDP per capita  Development of quantities in total and per sub-market  Development of prices in total and per sub-market  Development of market volume in total and per sub- market Legal restrictions for economic activities  Possible legal forms  Conditions for profit repatriation  Conditions for sales (e.g. local production)  Operations risks Society  Political system  Ethnic and religious groups  Languages  Demographic structure  Cultural distance  Political risks Market system  Players  Flows of products and services  Flows of information Producers and traders  Sub-markets  National and international competitors  Wholesalers and retailers  Competitive intensity Infrastructure Customers  Telecommunications infrastructure  Health care system  Link between customer segments and sub-markets; industry segments  Demand similarity  Traffic infrastructure  Customer segments © 2012 R. Grünig/D. Morschett 6. Evaluating new markets 6.2 Process for evaluating new markets 1. Producing an initial list of potential new markets 2. Eliminating the less attractive markets =......

Words: 1994 - Pages: 8

Premium Essay

International Modes of Entry Into Foreign Market

...Professor Department of International Business University Of Dhaka. Subject: Submission of the report on Modes of Entry into Foreign Markets. Sir, It’s been pleasure for me to submit my report on “Modes of Entry into Foreign Market”. This report contains the structure and material as instructed by you. I have tried hard to do my best and fulfill your expectation. The assigned work and the information gathering process involved with it gave me access to the areas, which I didn’t know before. However it is needless to say that, there may be some mistake in my organization, presentation and style. In completing the report I have tried my best in imparting ever available details of the, “Modes of Entry into Foreign Market” avoiding unnecessary amplification of the report. Thanking you, Yours faithfully Md.RazibulMatin ID. No: 801414091 EMBA Program Department of International Business University Of Dhaka. Table of Content SL NO. | TOPIC NAME | PAGE NO | | Letter of Transmittal | 1 | | Executive summary | 3-4 | Chapter-1 | Introduction | | 1.1 | Problem of Modes of Foreign Markets Entry | 5-6 | 1.2 | Rationale for Modes of Foreign Markets Entry | 6 | 1.3 | Scope and Objectives of the study | 6-7 | 1.4 | Methodology of the Study | 7 | 1.5 | Limitation of The Study | 7 | Chapter-2 | Literature Review | 8 | Chapter-3 | Modes of Entry into Foreign Market | | 3.1 | Market entry strategy |......

Words: 7614 - Pages: 31

Premium Essay

Market Entry

...Links : |SMART| Marketing Theory | Marketing Mix | Ansoff Matrix | INTERNATIONAL MARKETING MARKET ENTRY METHODS There are a number ways businesses can sell their products in international markets. The most appropriate method will depend on the business, its products, the outcome of its Marketing Environment analysis and its Marketing Plan. This article talks you through market entry options. Diagram showing international marketing market entry methods Direct Export The organisation produces their product in their home market and then sells them to customers overseas. Indirect Export The organisations sells their product to a third party who then sells it on within the foreign market. Licensing Another less risky market entry method is licensing. Here the Licensor will grant an organisation in the foreign market a license to produce the product, use the brand name etc in return that they will receive a royalty payment. Franchising Franchising is another form of licensing. Here the organisation puts together a package of the ‘successful’ ingredients that made them a success in their home market and then franchise this package to overseas investors. The Franchise holder may help out by providing training and marketing the services or product. McDonalds is a popular example of a Franchising option for expanding in international markets. Contracting Another of form on market entry in an overseas market which involves the exchange of ideas is contracting. The......

Words: 416 - Pages: 2

Free Essay

Entry Plan Into International Market Revlon’s Entry Into Sweden

...Entry Plan into International Market Revlon’s Entry into Sweden Chari M. Calhoun Dr. James J. Ruether International Marketing June 13, 2015 Introduction: Company history In 1932, Charles and Joseph Reveson along with a chemist named Charles Lachman, founded Revlon (Revlon 2014). The company began by making a single product which was a unique type of nail enamel. Revlon is now an international corporation with a multi-million dollar net income. Cosmetics, hair care, skin care fragrances, deodorant/anti-perspirant, and other beauty care products are Revlon’s key products. Its products are sold in approximately 150 countries and six continents (Revlon 2014). The company operates in North America, Asia Pacific, Europe, Middle East and Africa (AMEA), and Latin America. It is headquarted in New York City, New York and employed approximately 6,900 people as of December 31, 2013 (Revlon,Inc. 2014). Market penetration strategies, developing new products, utilizing market development strategies, building its strong brands, expansion by introducing new consumer preferred products, and existing franchise extensions, are all part of the alternative corporate growth strategies used by Revlon. These strategies are the key element of the organization’s success. Sweden is a country in which Revlon could capitalize from strategically entering into the market and continuing its present consistent growth. Company profile and analysis The current president and chief executive......

Words: 3302 - Pages: 14

Premium Essay

Modes of Entry Into an International Business

...of entry into an International Business:- There are some basic decisions that the firm must take before foreign expansion like: which markets to enter, when to enter those markets, and on what scale. Which foreign markets? -The choice based on nation’s long run profit potential. -Look in detail at economic and political factors which influence foreign markets. -Long run benefits of doing business in a country depends on following factors: - Size of market (in terms of demographics) - The present wealth of consumer markets (purchasing power) - Nature of competition By considering such factors firm can rank countries in terms of their attractiveness and long-run profit. Timing of entry:- It is important to consider the timing of entry. Entry is early when an international business enters a foreign market before other foreign firms. And late when it enters after other international businesses. The advantage is when firms enters early in the foreign market commonly known as first-mover advantages First mover advantage;- 1. it’s the ability to prevent rivals and capture demand by establishing a strong brand name. 2. Ability to build sales volume in that country. so that they can drive them out of market. 3. Ability to create customer relationship. Disadvantage: 1.firm has to devote effort, time and expense to learning the rules of the country. 2.risk is high for business failure(probability increases if business enters a national market......

Words: 1860 - Pages: 8

Premium Essay

International Market Entry and Development

...Companies globalize in order to target a larger market. With a larger market, companies can increase their profit from the services and products that that would be accessible to a higher number of consumers. To go global, companies must begin with a strategic plan and then move on to full implementation. They must also develop a knowledge base through marketing research to ensure that that the right choices are being made. Companies must also concentrate on market entry through exporting and other low-cost, low-risk international expansions alternatives. With globalization comes great opportunity for growth but also the many challenges of entering brand new markets. CEO’s and marketing executives face marketing decisions that can affect the future of the company for many years to come. They must employ strategic planning to match new markets with products and corporate resources more effectively and efficiently to strengthen the company’s long term competitive advantage (Czinkota & Ronkainen, 2010). Daily decisions then fit into the company’s overall strategic marketing goals. Companies that implement a formal strategic planning process will increase profitability as well as improve various nonfinancial objectives. The first step of the strategic planning process is assessment and adjustment of core strategy. This begins by defining the business that the strategy is being developed for. Companies must understand exactly the business that is being conducted......

Words: 2135 - Pages: 9

Premium Essay

Market Entry

...He is a professor at Missouri State University and granted permission to use it for this course on health marketing. A key observation to notice throughout this reading assignment is that in the history of business (or commercial) marketing there has been no reference to health, prevention, wellness or medicine as products or services to motivate people to buy or to sell or market to people. An important concept to note however, from the article is that marketers evolved to applying theories of behavior, the same as health educator‟s use. Among these are concepts borrowed from established disciplines, such as psychology and sociology and suggesting that marketing is a social science. Please note that the bold text are from the original text from Dr. Hermans. The article begins now. Bartels, Robert (1976) “The History of Marketing Thought,” 2nd edition, Highlights selected by Dr. Hermans are from chapters 1,2,3,4,9,10,11,12,13,and 14. Accessed on Sep 18, 2009. Available at http://www.faculty.missouristate.edu/c/ChuckHermans/Bartels.htm Chapter 1: The Meaning of Marketing The establishment of a market economy wrought marked changes in the social and economic structure. A new attitude toward business revolutionized the economy of the country and that revolutionary element was identified by the term „marketing.‟ Historical accounts of trade lead one to conclude that marketing has always existed. Was the original use of the term marketing merely an application of a new name......

Words: 7603 - Pages: 31