Business Strategies for Market Entry

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,