Peppersmith Tingz Distribution in Japan

This assignment examines suitable distribution strategies for Peppersmith Corporation to sell its 'Tingz' products in the Japanese market. It compares online and offline distribution methods, highlighting the challenges of online delivery for fast-moving consumer goods like Tingz. The analysis emphasizes the potential success of offline strategies, such as selling directly through retailers, due to customer preference for immediate product availability and reliability.

INTERNATIONAL MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
A. Defining the reasons chosen those specific four countries...................................................1
B. Discussing and justifies the selection of criteria....................................................................4
C. Critical evaluation..................................................................................................................5
TASK 2............................................................................................................................................6
Market and distribution strategies...............................................................................................6
Conclusion.......................................................................................................................................8
REFERENCES................................................................................................................................9
APPENDICE..................................................................................................................................11
A. Defining the reasons chosen those specific four countries.................................................11
B. Discussing and justifies the selection of criteria..................................................................11
TASK 2..........................................................................................................................................11
Market and distribution strategies.............................................................................................11

ILLUSTRATION INDEX
Illustration 1: Market selection strategy..........................................................................................3
Illustration 2: Distribution strategies...............................................................................................8
1

INDEX OF TABLES
Table 1: Ranking of Countries.........................................................................................................8
Table 2: Statistics of various countries..........................................................................................13
2

INTRODUCTION
International marketing is the administration of business operations which is made to
plan, advertise, price and flow of corporate products and services to customers for expanding its
business in more nations. It helps the management of corporation to increase profit and revenues
in the international market (Vahlne and Johanson, 2013). Pappersmith is a organization which
manufacture sugar-free sweets as well as gums for providing better products of products to its
consumers in the many countries (About us. 2016). It describes about market selection strategy
on the basis of various factors for corporation. In addition to this, it represents the market entry
and distribution strategies for Peppersmith in selected country. Further, it explains the proper
distribution channels for organization in the international market.
A. Defining the reasons chosen those specific four countries
Management has reasons to choose four countries like Japan, Turkey, Norway and France
by considering internal and external factors. They help the organization to develop market
effective market selection strategies as per condition of country in the international market
(Clarke, JTamaschke and Liesch, 2013). It is described below in the following points:
Illustration 1: Market selection strategy
External factors
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They consist of many aspects which contribute effective role for management of
corporation to determine situation of external environment for selection of global market in the
world.
Market size: Market size play important role to enter into new market which aids the
Peppersmith to make monetary budget for investment to enter in selected four countries. This
approach helps the corporation to achieve its goals and objectives in appropriate manner. Along
with this, market size of Japan, Turkey, Norway and France are effective due to higher demands
of these types of products (Cavusgil and Cavusgil, 2012). So it can play important role for
management of Peppersmith to establish and expand its business operations in these selected
nations. Further, demand of Tingz products is higher in Japan due to higher area and population
as compared with given countries as per case study.
Market growth: It can be effective other nations across the world which help to enhance
its sales. Mainly, people of chosen countries can like this products due to its effective taste,
medically certified which can help the Peppersmith to increase market share and establish its
business in the market. This factor can contribute effective role for organization to increase its
sales and revenues in the international market (Peck and et.al., 2013). In addition to this, it can
help the management of Peppersmith to enhance growth in food processing industry in the
selected countries. Further, market growth of Japan as well as France can be effective due to
effective economy and demand of products in the market. It can help the organization to increase
business operations in the Japanese and French market.
Government rules and regulations: According to present research, legal regulations such
as taxes, tariffs and other rules of Japan, France, Turkey and Norway are supportive which
contribute effectively to establish and selection of market selection (Kerzner, 2013). Along with
this, government of these countries offer better resources such as communication and
technological facilities which aids the Peppersmith Corporation to manage its business activities
in the international market. On the contrary note, health and safety and employment policies
create negative impact on the business operations of Peppersmith in the market. In addition to
this, they also enhance expenditure of corporation in these selected countries (Prasad and
Holzinger, 2013).
Level of competition: Level of competition contribute effective role for organization to
expand its business because rivalry among the corporation is not higher as comparison of other
4

countries. This approach can provide effective reliability for Peppersmith to manage its
operations and develop new business strategies in the market of Japan, Norway, France as well
as Turkey (Samiee, and Chabowski, 2012). In addition to this, it can give effective opportunity to
increase sales of corporation in the market. Further, it can provide reliability Peppersmith to
become market leader in the selected countries of food processing industry. On the other side,
rivalry level of France and Japan is higher than Norway and Turkey which can create
complexities for corporation in the international markets.
Physical infrastructure: Physical infrastructure facilities such as proper building,
telecommunication, transportation as well as financial institutions are good which aids the
organization to handle its marketing and other operations in these nations (Akehurst and
Alexander, 2013). Further, this factor can give appropriate reliability to select market in the
international market. On the other side, Area of Japan is very high as per geographical conditions
which can generate problem of management of Peppersmith to manage its business operations in
the market.
Level of Risk: It is categorized in operational and economical along with political risks
which generate issues market selection and entry. Political risk: Political situation of selected countries are supportive which contribute
effective role for organization develop strategies for market selection in the international
market (Akehurst and Alexander, 2013). In addition to this, it can provide lot of
opportunities to Peppersmith organization for increasing its market share in the selected
four countries. Economical risks: GDP (Gross domestic products), GNP (Gross national products) as
well as inflation rates create positive impact on the Peppersmith organization to reduce its
risks as compared with other nations in the global market. On the other side, up-down in
exchange rates enhances economical risks which create negative impact on the
organization for selection of market in the selected countries (Hutt and Speh, 2012). Operational risks: It does not create more complexities because operations of chosen
nations are not more different for management of Peppersmith Corporation. In addition,
this information contribute effective role for organization to reduce problems in
operational risks. It can provide huge reliability for enterprise for selection of market in
the international market.
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Manufacturing and shipping cost: Production and shipping cost can play important role
for management of Peppersmith to manage its operations in the selected countries because they
are not more than other nations which are given into case study (Fletcher, Harris and Richey,
2013). So this factor can support the organization by increasing its profit and revenues in the
food processing industry. In addition to this, it can help the management of Peppersmith
Corporation for developing strategies of market selection in those countries. It can help the
organization to increase efficiency as well as performance in the international market.
Internal factors
Internal factors help the organization to analyse its internal environment which contribute
effectively for selection of effective market in the select countries.
Organizational Objectives: goals and objectives of corporation are effective as per case
study which aids the Peppersmith Corporation to acquire in selected markets (Samaha, Beck, and
Palmatier, 2014). In addition to this, they can play important role for management of
organization to make appropriate strategies for market selection in the global market.
Level of Commitment: In this process, corporation has to analyse the existing investment
alternatives for allotment of rare resources which can contribute effectively for market selection
in the selected countries.
International Experience: Management of Peppersmith have appropriate international
experience which supports to expand its business by selecting better level of market strategies.
This factor play important role for corporation to manage its business operations in appropriate
manner.
Flexibility: Peppersmith has many ideas and concepts of many barriers as well as
constraints which give appropriate reliability to mange marketing operations in the selected
nations (Mainela, Puhakka and Servais, 2014). Further, this approach helps the management of
corporation to enter into different market.
CRITERIA JUSTIFICATION IMPACT ON BUSINESS
1.Consumption of sugary
products
Generally, all ages of people
like children, young and
older consume these
products in four countries.
It aids the organization to
expand its business
operations and design better
plans in the present sector.
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So, it helps the organization
to develop effective
strategies in the market.
2.Taxation on sugary
products
It is necessary for
organization to reduce legal
obligations and risks in
Japan (Lockwood, 2015).
It helps them to manage its
operations in an appropriate
manner within market.
3.Turnover of confectionery
industry
It is essential for
Peppersmith to design
appropriate competitive
strategies in the
confectionery sector of
Japan.
It plays an important role for
organization to increase its
sales in the market.
4.Competition level Analysis of competition
level is necessary for
Peppersmith corporation to
recognize competitor’s
strategy (Porter, 2011).
It creates a positive impact
because it aids in developing
effective strategies in the
market.
5.Income spend on sugary
products monthly
It is essential for
Peppersmith to promote its
products in front of
consumers.
It generates a positive effect
because it helps in
increasing sales of sugary
products.
6.Dietary regulations Dietary regenerations are
necessary for corporation to
manufacture the products at
workplace (Maruyama, K.
and et.al., 2013).
It helps the corporation to
create a positive impact in
front of consumers in the
market.
CRITERIA COUNTRY 1
Japan
COUNTRY 2
Turkey
COUNTRY 3
Norway
COUNTRY 4
France
1.Consumption 61.5 Unit gram 42.6 Unit gram 55.5 Unit gram 38.6 Unit gram
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of sugary
products
per day per day per day per day
2.taxation on
sugary products
1 percent per
ounce
1 percent per
ounce Porter,
M.E., 2011.
Competitive
advantage of
nations:
creating and
sustaining
superior
performance.
Simon and
Schuster.
1 percent per
ounce
1 percent per
ounce
3.Turnover of
confectionery
industry
$1.2 billion $2.8 billion $3.2 billion $1.68 billion
4.Competition
level
High (Akehurst
and Alexander,
2013)
High Moderate Low
5.Income spend
on sugary
products
monthly
14.63% 12.82% 10.63% (Hutt
and Speh, 2012)
12.03%
6.Dietary
regulations
Yes No Yes Yes
The above table represents the condition of sugary products in different market. Generally
sweet candies and sugary products are consumed by people of every age group and this is
supporting companies in every market. Apart from this, demand for products is quite high in the
market and due to this reason it is possible for business to expand in these markets.
8

B. Discussing and justifies the selection of criteria
Mainly, these selected markets like Japan, France, Norway and Turkey are good for
organization. There are many reasons for selection of these nations to expand its business in the
international market. According to research, political, economical and technological factors are
effective than other countries which are represented into case study (Lauring and Selmer, 2012).
Along with this, these countries less corrupted nations which can provide huge flexibility for
management of Peppersmith to handle its business activities in a better way. In addition to this,
demographic and geographical aspects are supportive as compared with other nations which aid
to develop marketing strategies in the selected global market. This process can play important
role for corporation to select appropriate selection market of market. Further, it can help the
Peppersmith to enhance its market share as well as growth in chosen countries. Probability of
risks are less for management of firm due to effective external conditions like political and
demographic which can provide effective help to reduce issues in investment of monetary fund
in the selected countries (Poulis, Poulis and Plakoyiannaki, 2013).
C. Critical evaluation
According to recommendation, Japan is most suitable nations for Peppersmith
Corporation to choose the market for expansion in the selected countries. Then after,
management of organization can spread its business France, Norway as well as Turkey
respectively in the global market. Enterprise has many reasons to chose Japanese market for
expansion of its business operations in food processing sector. As per Covin. and Miller (2014),
political, social and economical situation are supportive for management of Peppersmith as
compared with France, Norway and Turkey. These aspects can contribute effective role for
organization to boost its income and market growth by increasing it sales in the Japan (Covin.
and Miller, 2014). According to Villar, Alegre and Pla-Barber, (2014), corruption in government
and other places is very less than other nations in the world. It can help the organization to
manage operations of market selection in an appropriate manner. In addition to this, it can
provide reliability to handle activities by knowing about Japanese rules and regulations for
business in the market. Further, it can help Peppersmith to decrease many type of risks
economical, operational as well as financial for market testing regarding expansion of business
(Villar, Alegre and Pla-Barber, 2014). Vahlne and Johanson (2013), social aspect are also
supportive such lifestyle, education, income of people as well as latest trends can help
9

management of Peppersmith to enhance sales and turnover as commission of other markets. In
addition to this, it can aid the organization to test market for expanding its business in a
appropriate manner (Vahlne and Johanson, 2013). According to Clarke, Tamaschke and Liesch
(2013), physical infrastructure of Japanese market is good as compared with other markets which
can give huge flexibility to manage transportation, manufacture as well as other business
activities. Further, It contribute effective rile for management of Peppersmith to test market of its
food products and services in the Japanese food processing industry. Along with this, it can help
the enterprise to enhance performance and productivity as comparison of other nations in the
world (Clarke, Tamaschke and Liesch, 2013).
Table 1: Ranking of Countries
Ranking of Nation Description
Japan Government rules and regulation, Physical infrastructure,
geographical areas, demographic condition as well as level of
risks are more supportive for Peppersmith corporation as
comparison of other three nations. Along with this, degree of
rivalry in the Japan is not higher as compared with other nations
(Cavusgil and Cavusgil, 2012).
France These factors are less supportive for Peppersmith than Japan as
comparison with Japan.
Turkey These aspects are less effective for organization as compared
with Japan and France in the international market.
Norway These aspects are less efficient for corporation than Japan,
France as well as Turkey (Peck and et.al., 2013).
TASK 2
Market and distribution strategies
As per market research, distribution of Tingz products should be offline as comparison of
online in the Japanese market which can help effectively to enhance the market share, growth
and profit in the Japan.
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Selling through whole seller distribution strategy
As per the above diagram, Pappersmith can utilize selling through whole sellers strategy
to distribute its Tingz products in the Japan. Corporation can manufacture its commodities by
considering effective manufacturing, marketing and operational strategies in the Japanese
market. This approach can aid the Peppersmith to distribute products effectively as comparison
of its rivals. In this process, management of organization can transfer these Tingz products to
wholesalers for selling these products to end consumers (Prasad and Holzinger, 2013). Then
after, wholesalers of Peppersmith sell these commodities to retailers regarding proper
distribution in the market. In next process, Retailers sell these products to final consumers as per
demand of them in the food processing industry of Japan. Further, this approach can contribute
effective role for Peppersmith to handle effective communication among the intermediaries
which aid to manage its marketing operations in appropriate manner (Samiee and Chabowski,
2012).
Advantages of selling through whole sellers
Management of corporation have benefits of selling through whole sellers which are
stated below in the points.
 Peppersmith can reduce cost of carrying like insurance, transportation cost of material,
warehouse expenses by considering this strategy. In this approach, whole sellers can sell
organizational products on the name of corporation to consumers in the market. Further,
this approach can contribute effective role for Peppersmith to increase its profit by
reducing its expenses.
 In addition to this, Intermediaries like whole sellers can help the organization to promote
its Tingz products which can contribute effectively to reduce human efforts of its
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Illustration 2: Distribution strategies
(Source:Distribution Channels. 2015)

employees in the organization (Akehurst and Alexander, 2013). Further, it can aid the
Pappersmith to increase its sales and profit by increasing its market share in the Japanese
market.
 Selling through whole seller’s strategies can help the management of corporation to
increase frequency of retailers by using efforts of whole sellers in the market. It can help
the Pappersmith to increase its revenues in the food processing sector.
Disadvantage of selling through whole sellers
 It can reduce of income of management of corporation due to higher commission of
whole sellers and retailers in the food processing industry of Japan.
 Selling through whole sellers can generate issues between management of Peppersmith
and intermediaries because it enhances over dependence on them in the market.
 It can create negative impact on the efficiency and performance of product delivery due
to long chain which can generate issues for Peppersmith (Okazaki and Taylor, 2013).
Promotion and marketing strategies
According to suggestion, Peppersmith can more emphasize on the promotional
approaches such as television, social media, newspapers, radios as well as Magazines to
advertise and promote its Tingz products. Further, this process can contribute effective role for
management of corporation to increase its sales in the market. In addition to this, it can help the
organization to increase awareness about the products as well as services in the market (Huang,
and et.al., 2014). It can aid Peppersmith to enhance the market share and growth in the Japanese
food processing industry.
CONCLUSION
From the report, it is found that external factors like market size, government rules and
regulations as well as level of competition play important role for management of Peppersmith
for selection of market. Further, internal factors like goals and objective and availability of
resource help the organization to select appropriate market in the international market. In
addition to this, Statistics of selected countries help the organization to select one appropriate
nation for the test marketing of its products in the market. It can be concluded that offline
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distribution strategies contribute effective role for management of Peppersmith to distribute its
Tingz products to their consumers in the Japanese market.
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REFERENCES
Books and Journals
Akehurst, G. and Alexander, N., 2013. The internationalisation of retailing. Routledge.
Cavusgil, S. T. and Cavusgil, E., 2012. Reflections on international marketing: destructive
regeneration and multinational firms. Journal of the Academy of Marketing Science.
40(2). pp.202-217.
Clarke, J.E., Tamaschke, R. and Liesch, P.W., 2013. International experience in international
business research: A conceptualization and exploration of key themes. International
Journal of Management Reviews. 15(3). pp.265-279.
Covin, J. G. and Miller, D., 2014. International entrepreneurial orientation: conceptual
considerations, research themes, measurement issues, and future research directions.
Entrepreneurship Theory and Practice. 38(1). pp.11-44.
Fletcher, M., Harris, S. and Richey, R. G., 2013. Internationalization knowledge: What, why,
where, and when?. Journal of International Marketing. 21(3). pp.47-71.
Huang, C. C. and et.al., 2014. The relationship among corporate social responsibility, service
quality, corporate image and purchase intention. International Journal of Organizational
Innovation. 6(3). pp.68.
Hutt, M. and Speh, T., 2012. Business marketing management: B2B. Cengage Learning.
Kerzner, H. R., 2013. Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Lauring, J. and Selmer, J., 2012. International language management and diversity climate in
multicultural organizations. International Business Review. 21(2). pp.156-166.
Lockwood, W. W., 2015. Economic development of Japan. Princeton University Press.
Mainela, T., Puhakka, V. and Servais, P., 2014. The concept of international opportunity in
international entrepreneurship: a review and a research agenda. International journal of
management reviews. 16(1). pp.105-129.
Maruyama, K. and et.al., 2013. Dietary patterns and risk of cardiovascular deaths among middle-
aged Japanese: JACC Study. Nutrition, Metabolism and Cardiovascular Diseases. 23(6).
pp.519-527.
Okazaki, S. and Taylor, C. R., 2013. Social media and international advertising: theoretical
challenges and future directions. International marketing review. 30(1). pp.56-71.
Peck, H. and et.al., 2013. Relationship marketing. Taylor & Francis.
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Porter, M. E., 2011. Competitive advantage of nations: creating and sustaining superior
performance. Simon and Schuster.
Poulis, K., Poulis, E. and Plakoyiannaki, E., 2013. The role of context in case study selection: An
international business perspective. International Business Review. 22(1). pp.304-314.
Prasad, A. and Holzinger, I., 2013. Seeing through smoke and mirrors: A critical analysis of
marketing CSR. Journal of Business Research. 66(10). pp.1915-1921.
Samaha, S. A., Beck, J. T. and Palmatier, R. W., 2014. The role of culture in international
relationship marketing. Journal of Marketing. 78(5), pp.78-98.
Samiee, S. and Chabowski, B.R., 2012. Knowledge structure in international marketing: a multi-
method bibliometric analysis. Journal of the Academy of Marketing Science. 40(2).
pp.364-386.
Vahlne, J. E. and Johanson, J., 2013. The uppsala model on evolution of the multinational
business enterprise-from internalization to coordination of networks. International
Marketing Review. 30(3). pp.189-210.
Villar, C., Alegre, J. and Pla-Barber, J., 2014. Exploring the role of knowledge management
practices on exports: A dynamic capabilities view. International Business Review. 23(1).
pp.38-44.
Online
About us. 2016. [Online]. Available through: <http://www.peppersmith.co.uk/about-us/>.
[Accessed on 5th May 2016].
Distribution Channels. 2015. [Online]. Available through:
<http://www.tutor2u.net/business/reference/marketing-distribution-channels>. [Accessed
on 5th May 2016].
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APPENDICE
A. Defining the reasons chosen those specific four countries
External factors
Market size:
Market growth:
Government rules and regulations:
Level of competition:
Physical infrastructure:
Level of Risk:
Political risk:
Economical risks:
Operational risks:
Manufacturing and shipping cost:
Internal factors
Organizational Objectives:
Level of Commitment:
International Experience:
Flexibility:
B. Discussing and justifies the selection of criteria
Table 2: Statistics of various countries
Country Population GDP
Japan 127. Million 4.92 Trillion
France 66.03 Million 2.806 Trillion
Turkey 74.93 Million 822.1 Billion
Norway 5.84 Million 512.6 Billion
TASK 2
Market and distribution strategies
Comparison between online and offline distribution
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Peppersmith corporation can use consider two distribution policies which are given above
the diagram. These approaches can help the management of organization to distribute Tingz to
its customers in the Japanese market. In addition to this, they are appropriate as comparison of its
online channels because organizational products are categorised under grocery products. Delay
in online delivery can disappoint the customers of Peppersmith in the Japan (Distribution
Channels. 2015). Further, they are also considered as fast moving products in the market. So
people like to purchase these products from shops rather than online as per requirements of them.
Hence, offline distribution strategies can be more successful as compared with online
distribution strategies. Along with this, it can contribute effective role for Peppersmith
Corporation to increase its sales of Tingz products in the food processing sector. It can help the
organization to expand and establish its business in appropriate manner within Japanese market
(Kerzner, 2013).
Selling through retailers
This approach can also be suitable for corporation to manage its distribution and logistics
operations for increasing its sales in the market. It is described below in the points.
In this process, management of Peppersmith directly contact with retailers to sell its
Tingz products to the consumers. In addition to this, organization dispatches its materials to
retailers in the market. In this process, only retailers are responsible for managing sales
operations in the Japanese food processing sector (Hutt and Speh, 2012). They can help
Peppersmith Corporation to increase sales of its products by increasing market share in the
market.
Advantages and disadvantages of Selling through retailers
In this approach, management of organization can enhance its profit by decreasing its
cost such as commission of whole sellers. This process can contribute effective role for
Peppersmith to improve logistics services as compared with selling through whole sellers
strategies in the market. It can increase service delivery of organization as comparison of selling
through whole sellers which provide hug reliability to consumers in the Japanese market
(Fletcher, Harris and Richey, 2013).
On the other side, Selling through retailer can enhance issues for Peppersmith in the
market. In addition to this, it can raise workload on the corporation due to absence of whole
17

sellers. Further, it can create issues in logistic as well as transportation operations of
organizations in the Japanese market. Further, management of Peppersmith has to invest more
money on the promotional and advertisement activities to promote its products (Samaha, Beck
and Palmatier, 2014). These practices can also consume lot of human efforts of corporation in
the market.
18