This article discusses the marketing strategies for expanding a business in Mexico, including market entry expansion strategy, marketing strategy, ethical issues, and cross-cultural marketing recommendations.
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Running head: MARKETING STRATEGIES FOR EXPANSION IN MEXICO MARKETING STRATEGIES FOR EXPANSION IN MEXICO Name of the Student Name of the University Student Registration Number Module name Module code Word count
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1 MARKETING STRATEGIES FOR EXPANSION IN MEXICO Table of Contents Introduction......................................................................................................................................2 Market Entry Expansion Strategy....................................................................................................2 Marketing Strategy..........................................................................................................................3 To start early................................................................................................................................3 To set a goal.................................................................................................................................4 Conduct market research.............................................................................................................4 Identifying target audience..........................................................................................................4 Selecting the Right Marketing team............................................................................................5 Strong networking.......................................................................................................................5 Effective Branding.......................................................................................................................6 Ethical issues...................................................................................................................................6 Cross-Cultural Marketing Recommendations.................................................................................8 References........................................................................................................................................9
2 MARKETING STRATEGIES FOR EXPANSION IN MEXICO Introduction Strategies to enter the Market of Mexico is pretty similar like developing the sales channels in America. The company like Findus group which has its core business in to the food manufacturing sector. It has the highest sales percentage among the other food manufacturing groups in UK. This is most talked of brand that people prefer going and afford foods of their choices (Lim 2016). After getting success in the home country now the brand is planning to expand it same business facilities geographically in Mexico. The challenges on the way are that, the food that it manufacture are well established in the United Kingdom but do have certain religious issues in Mexico. The religious Mexican groups may not accept few food ingredients received by the UK and therefore the company may lack for expansion in certain geographical locations. Few strategies were thought of before those were almost unorganised and even the scopes were not abundant for the company. Thus the report shall discuss in detail about the market entry strategies, strategies recommended to be adopted by the company, its merits and demerits (Boscagli 2019). Ethical issues while expanding and suggested ways to overcome. The important cross cultural marketing suggestions on Mexican market. Market Entry Expansion Strategy FortheexpansioninMexico,developmentofcrucialstrategiesandmaintaining amalgamations with the stakeholders, local people of that locations, clients and other partners is very important. It is found in the nature of Mexicans that they like to have direct and apparent communication without any hidden thoughts and confusions. They eventually prefer to clear out the doubts in initial meetings to establish a fine rapport with people (Rao-Nicholson and Khan 2017). The buyers in Mexico are identified with quite sufficient knowledge on UK food brands.
3 MARKETING STRATEGIES FOR EXPANSION IN MEXICO They are well aware of the kind if ingredients food manufacturers use to prepare the food and other information on delivery systems. It has been found out that due to the fact it is near to the UK and US they can identify quickly the business entrants and their strategies to capture the market. The strategy to enter the smart market like Mexico, should be planned based on the establishment of the agents, representatives and other legalised distributors for the food brands of the Findus Group. The company can also try for the opening of an outlet there which although costs high still would be an attractive visible factor for the Mexican customers (Ghauriet al. 2016). The strategy to go for the concrete outlets work as the pull strategy for the customers and also giving the practical exposures. The strategy should encompasses the whole market size and the included particular territories for greater expected sales. Another strategy to use is to focus the specific regions which are popular for such food categories and company is expected to get good amount of response such as the Central and Southern Mexico, Guadalajara in Western parts of Mexico, Monterrey and in the parts of north western Mexico in Baja California and Maquiladora (Ottman 2017). The strategy for the promotional activities are very useful for entry to the new market. The advantages of these recommended expansion strategies would be gathering customers and the disadvantages may be the customer may not entertain these efforts as they already have religious issues so they may stay limited to their domestic food brands resulting in the drastic financial loss for the company. Marketing Strategy According to me, the company to set up its business in Mexico can use these strategies to implement the marketing of the food industry.
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4 MARKETING STRATEGIES FOR EXPANSION IN MEXICO To start early Take the pain of starting early whatever it needs to capture the market. The company can strategize the required steps to be taken and directly implement in the market scenario. Getting delayed in implementation may give others the time and chance to show their abilities of setting up business (Boscagli 2019). To set a goal Goal setting is very necessary in determining successful marketing of expansion of business in entirely to a new geographical location (Lynch and Jin 2016). If there is a goal set it will remind of achieving it and motivates throughout the process to continue striving for the meeting the objective. The objective here is to make a cost effective effort of successful business set up through strong marketing strategies. Conduct market research The market research is the strength for the company to proceed with the strategies and therefore implement it to do productive business. Through the market research it would be easy to recognise the place where the company can create the demand (Pride and Ferrell 2016). It is the best way to analyse which kind of marketing strategies would be fit for that defined location, the market standards, pricing benchmarks, nature of the buyers, finally insights about applying the segmentation targeting and positioning theory. Identifying target audience Finding out the target audience in the whole region is like finding out the base for the profit areas. The target audience is that selected part or group of customers who have the similar needs and demands (Bang, Joshi and Singh 2016). They can also be called as the homogenous group of customers having demand for the same product or service. In this case, the kind of food
5 MARKETING STRATEGIES FOR EXPANSION IN MEXICO the Findus Group is expertise in it can search customers of similar demand, more or less differentiation would be there of course that would be taken care of by the company as customised service. The benefit for the food industry is that they can change their core service quality whenever they want as per the customers’ demand which do not involve must shifts in cost and do not harm the company policies. The food industry is the one which totally relies on the customer satisfaction levels so such companies make sure that the service should always be either favourable or customised according to the demand (Bang, Joshi and Singh 2016). Thus, it is understood that how important is the identification of target audience for the Findus group to enter in the Mexican market. Selecting the Right Marketing team The right marketing team is needed for an organisation to carry out the right task in order to meet the objectives. The dynamics of marketing is not only limited to the desk research but also the field research and development (Sinha and Sheth 2018). The right set of people appointed for the task of marketing can contribute to the maximum extent to make the objective successful. The decision needs to be taken during the implementation of tasks is depended on the marketers. The effective strategies can only be planned by those people who are expertise in the related domain and the effective results can be expected. Strong networking The core function of marketing is the networking channels (Ottman 2017). The effective strategy is to implement strong networking which actually works for the business. The advantage of a strong network is that the ways to success get opened up automatically. People come across many such useful contacts who actually contributes to the strategies and gradually becomes the foundation of a good marketing. Building rapport with people around is another aspect of
6 MARKETING STRATEGIES FOR EXPANSION IN MEXICO networking which greatly helps in developing marketing of a particular product or service (Ghauriet al.2016). In case of service industries the networking plays an important role as the process constantly shares information through which the marketer gets clues for the business and many new ideas revealed that helps in business expansion. Effective Branding The proper branding creates the image of the service among the customers’ mind. The brand needs to be identified first only then a company can expect some profit generations. Branding is an effective tool of marketing which create an impression on the customer and if the branding strategy goes right fir the service like food industry then customers belief system would stick to the brand and possibilities are there of transforming them intro brand loyal customers (Pappas 2016). Branding is relatively a tough task in the field compared to other marketing strategies as based on this all further activities would be carried over. The advantages of the above discussed strategies would be the confirm response from the customers or even the little attention they would pay for the service after considering the efforts (Alonet al.2016). Especially the efforts made for the branding and advertisements if goes effective then it results in the positive reaction of the customers, and increases the foot falls in the stores. The disadvantages of these marketing strategies are that the market is preoccupied with brands of similar service offering and every one of them claims of the best quality (Crane and Matten 2016). It gives an elastic effect of thought to the consumers and brings in a confused state of mind where to seek the best from. Lot of networking also become the disadvantage for the marketer as the contacts and information tends to clutter and gets into puzzled consequences ultimately resulting in nothing.
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7 MARKETING STRATEGIES FOR EXPANSION IN MEXICO Ethical issues The ethical issues that the company faced are the corruption in Mexico. It is highly disturbed place with many disintegrations and regional conflicts (Alonet al.2016.). This is the disadvantage for the company as they may lack the expected attention from the customers. Political disturbances and communal fights are very normal issues in Mexico and people do not pay much heed to other emerging companies there. These are the major challenges that the marketers of the Findus Group has to face. Also regarding the issue of the religion in case of the food items are not acceptable by the Mexicans. To overcome this issue, the company has to provide customized services. If the company uses beef as their primary product to run the organization and if it creates problem in certain locations then it is better for that company to avoid that raw material if it wants to run business there (Murphy, Laczniak and Harris 2016). The organization should match the culture of the place where it runs its business. The demand of the ingredients in the food that the customer wants the company should be capable in delivering that. These are the few ways to overcome these issues. Apart from the issue of ingredients and edibles, to meet the issue of the political and communal fights the company should implement such measures that have emotional attachment that must touch their sentiments. The company can go for implementing emotional advertisements that exaggerates the emotional quotients ad manipulates emotional intelligence and thus acts as the pull strategy for the customers. The emotional advertisements are often successful as they deals with the real life situations that turns on the feeling of people. Generally the food industries use this as a weapon to attract customers and bring in to the stores (Murphy, Laczniak and Harris 2016). This is one of the best idea to associate customers’ feelings with the food because most of the people are concern for the good quality eatables. The customers these days prefer foods which are healthy and tasty. Rather than
8 MARKETING STRATEGIES FOR EXPANSION IN MEXICO cheesy and greasy foods they go for some healthy options so this can be the way to overcome such issues and make the business strategy lucrative for the people to captivate the market. Once the company can satisfy the customers’ demand they can also get government and political approval as well. Cross-Cultural Marketing Recommendations Strategicmarketingwouldnotbecompletedwithoutdiscussingthecross-cultural marketingstrategies(Raab,GoddardandUnger2016).Thisconceptemergesoutof globalization which deals with the segregation of the market based on variations in ethnicities to develop further marketing strategies. Few recommendations after investigating the Mexican market are, To understand the diverse culture and issues To deal with lingual barriers Robust market research Start identifying niche markets Observe initial applications and benefits Consider the values and principles
9 MARKETING STRATEGIES FOR EXPANSION IN MEXICO References Alon, I., Jaffe, E., Prange, C. and Vianelli, D., 2016.Global marketing: contemporary theory, practice, and cases. Routledge. Bang, V.V., Joshi, S.L. and Singh, M.C., 2016. Marketing strategy in emerging markets: a conceptual framework.Journal of Strategic Marketing,24(2), pp.104-117. Boscagli, M., 2019.Competitive strategy analysis in the food system. CRC Press. Crane,A.andMatten,D.,2016.Businessethics:Managingcorporatecitizenshipand sustainability in the age of globalization. Oxford University Press. Ghauri, P., Wang, F., Elg, U. and Rosendo-Ríos, V., 2016. Market driving strategies: Beyond localization.Journal of Business Research,69(12), pp.5682-5693. Lim, W.M., 2016. A blueprint for sustainability marketing: Defining its conceptual boundaries for progress.Marketing theory,16(2), pp.232-249. c. Exploring the institutional perspective on international business expansion: Towards a more detailed conceptual framework.Journal of Innovation & Knowledge,1(2), pp.117-124. Manser Payne, E., Peltier, J.W. and Barger, V.A., 2017. Omni-channel marketing, integrated marketing communications and consumer engagement: A research agenda.Journal of Research in Interactive Marketing,11(2), pp.185-197. Murphy, P.E., Laczniak, G.R. and Harris, F., 2016.Ethics in marketing: International cases and perspectives. Taylor & Francis. Ottman, J., 2017.The new rules of green marketing: Strategies, tools, and inspiration for sustainable branding. Routledge. Pappas, N., 2016. Marketing strategies, perceived risks, and consumer trust in online buying behaviour.Journal of Retailing and Consumer Services,29, pp.92-103.
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10 MARKETING STRATEGIES FOR EXPANSION IN MEXICO Pride, W.M. and Ferrell, O.C., 2016.Foundations of marketing. Cengage Learning. Raab, G., Goddard, G.J. and Unger, A., 2016.The psychology of marketing: Cross-cultural perspectives. Routledge. Rao-Nicholson, R. and Khan, Z., 2017. Standardization versus adaptation of global marketing strategies in emerging market cross-border acquisitions.International Marketing Review,34(1), pp.138-158. Sarkar, D.N., Kundu, K. and Chaudhuri, H.R., 2016. Conceptual expansion of the discipline of rural marketing: An objective analysis.Vision,20(3), pp.169-183. Sinha, M. and Sheth, J., 2018. Growing the pie in emerging markets: Marketing strategies for increasing the ratio of non-users to users.Journal of Business Research,86, pp.217-224.