Business Strategies for Market Entry

This report intends to talk about various business strategies in terms of entering into a new marketplace. The chosen product is Tasmanian Mountain Water, an Australian company serving premium quality packaged drinking water. The following paper will analyse the reasons behind choosing United Kingdom as a new market place to launch the above mentioned product. Further, it will recommend strategies for entering into the market and make sure to add competitive edge to product profile.

Running head: BUSINESS STRATEGIES FOR MARKET ENTRY
BUSINESS STRATEGIES FOR MARKET ENTRY
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1BUSINESS STRATEGIES FOR MARKET ENTRY
Introduction
This report intends to talk about various business strategies in terms of entering into a
new marketplace. The chosen product is Tasmanian Mountain Water, an Australian company
serving premium quality packaged drinking water. The following paper will analyse the
reasons behind choosing United Kingdom as a new market place to launch the above
mentioned product. Further, it will recommend strategies for entering into the market and
make sure to add competitive edge to product profile. In order to do that, additional
competitive strategy will be prepared as well. As discussed in Huang and Sarigöllü (2014),
pricing and promotional strategies will be recommended too for creating a brand image and
ensuring recognition. It must be circulated among the distributers and for that the brand has to
convince the distributers over existing competitors. Appropriate approach will be needed for
doing this part too.
Overview of the product
The mineral water company, Tasmanian Mountain Water, drives themselves with the
mission statement of providing the customers with highest quality product in its most natural
form. The company promises to explore the best source of water which is rain and spring
water to produce packaged drinking water that contains right proportion of natural resources
and necessary minerals. The brand maintains extreme transparency with the customers and
has a market value for being authentic. With such a promising brand profile, Tasmanian
Mountain Water wants to explore international market to response against the trend of
globalization.
Market selection and entry strategy
According to recent health survey; as the British are seeking to take a control over
their calorie consumption, consumers are preferring their water to be sealed and natural
during the rush hours. The sales has increased nearly 40% as compared to the 30 years old
sales data. As water is the natural form of satisfying thirst, healthy, contains no sugar or
calories people are returning to the basics again instead of choosing sugary and carbonated
soft drinks (Bodkin, 2019). As a diversification, both the functional and flavoured bottled
water have potential of high growth in the market of UK as alternative beverage to protect
obesity (Malik, et al., 2017). Acknowledging the trend and potent, marketplace of the UK can

2BUSINESS STRATEGIES FOR MARKET ENTRY
be stated as the right choice to launch it. Therefore, in order to enter into the market
following strategies are to be executed.
 As mentioned above and supported by Popkin and Hawkes (2016) as well, selecting
the target market is crucial as the launched product is meant to mitigate an existing
issue or response against existing market trend of healthy consumption. In order to do
that few factors which must be kept in mind are customers’ profile that include
demographics, location, interests and requirements related to the product.
 As market has been defined, market analysis would be the next step where
understanding the growth, competition market barriers will be analysed. Being a new
entrant, the brand can start with distributing samples, organising pilot run or sessions
of immediate feedback. Apart from available survey results and word of mouth, this
would be an effective method to gather ideas on market need and product quality.
 Based on the results, products must be improved as per demand.
 Capability assessment has a higher chance to show in a saturated market of mineral
water it would be great to start a joint venture with renowned soft drink brand. As
consumer focus is shifting towards consuming healthy, a soft drink brand would be
happy to collaborate as it will boost their market too.
 The findings of Karakaya, Yılmaz and Demiral (2016) suggests, another strategy they
can apply is to connect with global retailers and export products for sale.
Competitive strategy
The Australian company must remember with their operational transparency, they
will not be able to convince the market to buy Tasmanian Mountain Water. According to
Khan et al. (2013), functional and flavoured are the trends to which the company has to stick
on. Additionally, they have to overcome competition of existing brands. It is difficult to
differentiate packaged drinking water brands in terms of quality. It is not as easy to identify
variations between different flavours of ice creams. However, differentiation is distinct if
percentage of minerals and natural resources can be identified.
 As derived from the findings of NEACȘU (2017), to stand against global competitors
like Aquafina, Evian, Smartwater, Mountain Valley and Pure Life; Tasmanian
Mountain Spring Water must come up with their story to make an extraordinary
impact over the market. Smartwater rejects the theory of rain spring water and
promotes their idea of vapour distilled water of tangy taste. On the other hand,

3BUSINESS STRATEGIES FOR MARKET ENTRY
Aquafina promotes their filtration process. Likewise, brand needs original story or
taste. Therefore, again supported by O'Connor and Rice (2013), launching functional
or flavoured water would be better to gain advantage at competitive field.
 As stated in Stead and Stead (2013), apart from ensuring health, a sustainable
approach is going to help to add competitive edge as it has been widely recognised as
an emerging trend. According to Riley, Martins da Silva and Behr (2015), target
market will choose natural resources infused water and sustainable packaging
materials based on environmental and health concerns of them.
 Consumers tend to choose brands which are addressing social and environmental
concerns as they prioritize their profit related matters. Contributions to society as a
part of CSR policies matter in adding market value.
 Organisation can follow a strategy of serving poor communities of third world
countries with clean water to enter into market and beat competition. According to
Stoler et al. (2014), Ghana is having a hard time accessing clean water and the quality
of packaging is nor good as well. this can be an opportunity.
 Besides, launching healthcare and educational programs as CSR policies will be a
strong message to the society. People will choose the company for conducting
responsible business.
Pricing strategy
Price based effective marketing strategy enables a company to enjoy certain
flexibilities in all levels of competition. Customers will evaluate a product and perceive its
market value among them by looking at the price first. The pricing strategy is dependent on
various factors, as the company is on the verge of expansion.
 Price range compliments the product in Australia but if the company decides to
export, shipping costs can be a major factor in terms of deciding the price. Moreover,
shipping programme demands additional recruitment too. Initially, pricing strategy
will follow ‘high price and high quality’ and target customers who prefer premium
hospitality as well as believes in sustainable business.
 According to Aung and Chang (2014), retail policy would be easier to conduct as
retailers will take responsibility as well to maintain supply chain relationship. Prices
will drop as per price based marketing strategies of retailers.

4BUSINESS STRATEGIES FOR MARKET ENTRY
 The findings of Rohrbeck, Konnertz and Knab (2013) has suggested collaboration and
partnership can help to promote the brand as sustainable, innovative yet affordable.
People can trust more for the connection with native brand and prices will pay minor
role when it will come to have something healthy. The brand can promote themselves
following ‘quality product at affordable price ‘concept.
Promotion strategy
While promoting a brand, basic 4P’s of marketing should be the platform to start.
From the above discussion the ideas of product, place and price have been received. Based
on that promotional strategies will be designed.
 Instead of using traditional methods extensively, for international expansion the brand
should strengthen the placement game in various sectors of market. Television or
printed advertisement is not the only mode of conducting marketing communication.
Although, as per Håkansson (2017), consumers are easily influenced by the food
advertisements. Tasmanian Mountain can start their campaign by placing their
products in corporate events and supplying to global chain of hotels can bring them
major exposure.
 In international sports or cultural programmes, the brand can take part as a sponsor
and enhance their territory of being recognised. Besides, their CSR activities will help
to promote as well as gain competitive edge while entering into market.
 The success will come if the brand target the hospitality sector as their major platform
of product placement and communication. According to Gruner, Homburg and Lukas
(2014), establishing relationships with high-end customers will help them to promote
the brand as premium as well as of good quality undoubtedly.
 Most importantly, the marketing communication, no matter how it is being circulated
through traditional or virtual mode, must contain message of sustainability. As
described in Ramos et al. (2015), instead of using plastic bottles glass bottles should
come back as it can be refilled maintaining sustainable packaging. As stated in Guart
et al. (2014), usage of plastic bottles can initiate major harmful reactions as well if
stored longer than usual. Placing paid water booths in various stores, hotels will help
consumers to come across with the brand.

5BUSINESS STRATEGIES FOR MARKET ENTRY
Distribution strategy
 As per promotional activity, Tasmanian Mountain Water should be available at hotels
and across high end hospitality sectors of UK such as restaurants, spa and resorts that
are meant for leisure. Corporate events will be sponsored by them so communication
must be initiated.
 Due to its longer shelf life distributers and retailers can make profitable deals as well.
Hence, apart from hospitality industry, both the global and local retailers will be their
distributers.
 In partnership business, their partner soft drink company can produce the product in
UK’s manufacturing units as well. However, as quality is one of the largest USP of
product, necessary investment on HR development has to be done if local
manufacturing units are going to distribute products.
Recommendation and conclusion
It can be stated to conclude that global bottled water market is increasing if the
previous sales data can be compared with the contemporary one. It is good news for country’s
health that people are choosing to drink water to stay hydrated rather than consuming
carbonated, sugary drinks. Tasmanian Mountain Water needs to maintain their transparent
image in front of target market to let them know goodness of spring water at affordable price,
the sustainable business practice and CSR policies to create a positive impact over the
international market.

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