International Market Penetration: Canada as a Lucrative Option

The assignment content discusses the opportunities and challenges of market penetration in Canada for Artisan International expansion plans. It highlights that small businesses account for 77% of all private jobs created in Canada, making it a lucrative option for entrepreneurs. Additionally, Canada is ranked as one of the top 20 countries to do global business and has favorable currency exchanges, stock exchanges, and international trade flows. The challenges of market penetration include promotional activities, branding, understanding legal contracts, and forecasting revenues generation. To penetrate into a new market, creating a strong branding image is critical, which involves identifying key brand elements such as logo, tagline, and design. Online marketing strategies are also essential for capturing more customers and visualizing the brand image.

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Executive Summary
This report covers external & internal environment, resources surrounding Artizan when it was
launched in 2005 with a first store in Dublin’s Leeson Street & now it has conceptualized into a
full service catering & transformed itself from a small gourmet sandwich shop.
Introduction
Artizan came into existence in 2005 & offered only gourmet sandwiches. Fresh from the oven,
baked, crisped with a high quality ingredients & products. Now after so many years it has
upgraded itself to a full service catering to local & corporate tie-ups. With ever increasing market
of food & beverages if Artizan plans to expand globally then we need to consider various
parameters under which it could sustain international marketing.
Artizan uses local ingredients to produce food which has no added flavors & preservatives. And
looking at the coffee they use organic products & serve customers with best packaging available.
By 2007, it has launched to seven more outlets & now they serve many corporate & private
clients in Dublin.
Studying international market for a lucrative business expansion in the countries such as Canada
& Hong Kong, adhering to legal protocols, adjusting to the favorable/unfavorable economic
environments of the targeted countries & finally introducing products which can competitively
compete with the same types of food & beverage industry (Kotler, 2011).
Researching on International Market for Expansion
When planning, venturing into a new market & exploring new horizons one need to first
understand its brand building & then exposure to international market. Capturing market share
one need to go through a comprehensive strategy. Reading the economy, going through various
factors influencing the growth & re strategizing as per the volatility should be done on
continuous basis & one need to foresee global challenges while penetrating into a new
environment. Understanding company culture & fine tuning it to international standards should
be adhered & properly coded.
For example considering bureaucracy as a prime factor countries like Russia, Greece and
Colombia are considered tough to enter. Similarly countries in Middle East such as Iran, Iraq etc.
are considered tough politically, economically & financially unstable. Countries like North
Korea, Syria etc. are OFAC banned & no global country is allowed to do business with them.
Deep dining into financial success stores, statistics, and indicators reading failure rates of
establishing a new business should all be compared with domestic country in which already a
company is operating.

1. Blending company with international culture & global business etiquettes-: Salutations,
greetings, communication standards & understanding of habits, manners is the core key to
penetrate & mix well.
2. Success & failures rates, currency stability & deep diving into import/export figures-: If
its an open economy it will deeply impacted during economic downturns & recession times. If
it’s a currency stable & is not dependent on the much on international trade then looks lucrative
country to invest in.
3. Country law, export/import duties, custom excises-: Forecasting unforeseen challenges &
over coming obstruction by hiring a local expert will be added advantage. Documenting all the
legal contracts & acceptance in written will set the business standards to coexist.
4. Understanding product & services if it will be able to survive international market
targeted. For e.g. launching of Lebanese restaurant in India will face tough strategy due to taste,
habits & preferences. Executing a well-planned strategy will prove to concrete burner.
5. Domestic competition faced in the same product & services dimension, concluding price
wars & forming a strategy to penetrate in the same market through discounts & promotions
should be well perceived & negotiated.
6. Determine budget to during launch period & to penetrate as initially there can be a no
profit & heavy losses to survive the market. Adapting & utilizing the limited resources at the
optimal levels should be well read & executed.
7. Resolve Logistics Issues before opening of new ventures. In some countries due to
backward standards & industrialization, bribing local agents & bureaucrats is a prime key to
enter market. It is considered as small token gift in terms cash non-cash items to negotiate deals.
Hence a business should accustom itself to the Illegal & under the table practices.
8. Establish an International Banking Relationship. Since a company needs a free flow of
foreign funds & stabilize itself as per the international currency, it can proceed to lock foreign
exchange currencies & transfer funds through Western unions or through Paypal, Skrill and
Payoneer.
9. Before entering in a new international space one should always develop an exit
strategy, identify potential buyers/sellers & keeping an eye on budgets & investments. Any
negative brand image or reputation can prove to be a dent to the company turnover. Hence
exercising thought of exiting & entering should be thoughtful in an international space (Taylor,
2012).

Ways to penetrate in an international market
Joining hands with competitors or entering through promotional strategies, all factors needs to be
thought & analyzed deeply.
Exporting
If tis a small scale or a medium scale the best strategy is to the exporting since it’s easy & quick.
Accept international customers, tying up with them for exports comes easy & helps in capturing
market making them internationally visible. Low investment & no prior commitments.
Companies with good economies of scale majorly do export business.
Franchising / Licensing
Franchising is a legal contract to permit business under the trademark or patent license. If given
license new ventures can produce licensed products, know how services/techniques to produce &
do business under their franchising/licensing name.
Joint Ventures
Joining hands between two business/ventures to enter the market. To reduce risks, decide on the
capital outlays an enterprise can enter a joint venture to enter a market. Conflict of interests, lack
of management decision & of authority can leads to negative in joint venturing.
Wholly Owned
Setting up of new business ventures in a new place can be proved tough on factors such as
resources, allocation of funds & management etc. but it comes handy for decision making &
styling of the business.
Starting a business in Hong Kong
On studying Hong Kong market for expansion certain parameters were researched upon.
 GDP Growth: 2.5%
 GDP $290 B
 GDP per Capita: $55,100
 Trade Balance/GDP: 1.9%
 Population: 7.1M
 Public Debt/GDP: 40%
 Unemployment: 3.2%
 Inflation: 4.4%
Opening of a company or venture in new Country it has judge first if the economy is stable & is
not volatile. Hong Kong is a free market economy & is socially, politically stable country. It is
dependent majorly on international export services to generate revenues, secure jobs & pay its
debts. It has no tariffs on imported goods & are no quotas or dumping laws. Excise duties are
levied only on commodities, whether imported or produced locally: hard alcohol, tobacco,
hydrocarbon oil, and methyl alcohol. It has limited natural resources & it has to utilize its limited

sources at optimum level. It has establish itself in Stock market & its open economy was deeply
wounded in recession times. Establishing trade agreements with China helped in reviving up.
From March 2015, new reforms & measures were establish to stabilize & strengthen service
sector for Hong Kong-based companies (Ching, 2014).
Going through all this detail & blending it with Artizan Irish Company marketing expansion
plans, launching will be a good start but deeply strengthening it will require time to penetrate
into the market. Though RMB is a stabilize currency but looking at the GDP growth rate,
churning of revenues will be tough as they have to face competition from brands domestically &
internationally. They need to continuous plan & re-strategies as per existing reforms, laws &
judging economic stability as it’s a free open market economy & any volatility will deeply affect
entire service industry to survive.
Another country was considered for international expansion which is more economic &
politically stable & mixing it with Artizan marketing plans it looked a great start to expand
internationally.
Starting a business in Canada
Considering politics, economics & bureaucracy factor, Canada is considered as quite stable &
non-volatile.
 On average, 150,000 new small businesses are created in Canada each year, but only 51%
of new businesses survive five years (Industry Canada, 2013).
 98% of businesses in Canada with employees have fewer than 100 of them, 55% have
fewer than five employees and 75% of all businesses in Canada have fewer than 10
employees (Statistics Canada, 2012).
 There are 950,000 self-employed women in Canada, one third of all self-employed
people in the country (Royal Bank of Canada,2011).
 Small businesses account for 77% of all private jobs created in Canada (Statistics
Canada, 2011).
Canada is a $1.6 trillion economy & globally listed as 9th. Canada Banks like Royal Bank of
Canada, Bank of Nova Scotia and Bank of Montreal were able sustain during economic
downturns & global turmoil. It emerged to be strongest, stable & viable for the Canadian
economy to thrive.
It is listed as top 20th country to do global business & as per investors ranks as top 5th to easily
begin new ventures.
Due to the tax reforms, excise duties & import customs Canada is now ranked at no. 4. Currency
exchanges, stock exchanges & international trade flows are quite favorable for the new venture
to coexist & survive.

Canada economy is dependent upon U.S. economy & its unemployment has is at 7.3% in Canada
which makes it lucrative to hire local skilled labor under the pre determine budget.
11 different factors were determined & on the basis of them among 134 countries Canada faired
as a lucrative options in terms of-:
 property rights
 innovation, taxes
 technology
 corruption
 freedom (personal, trade and monetary)
 red tape
 investor protection
 Stock market performance.
Looking at all the parameters highlighted here Artisan international expansion plans looks
lucrative in Canada. It’s an easy entry & great start to do business internationally.
The Challenges of Market Penetration
Considering challenges in entering in terms of promotional activities, branding, understanding
legal contracts is all the efforts of growth strategy & of sales/marketing/operations team to
forecast revenues generation, capturing market & customer base.
For instance, entry & exit of business plan should be well planned & executed. Capital outlays,
allocation of funds, training of management/staff, optimally utilizing of limited resources should
be thought & done through primary and secondary research. Continuous monitoring & checking
timeline set to begin a new venture internationally helps a company to strategies & devise an
alternative plan.
International Market Penetration Begins with Branding
To penetrate into a new market it needs to create a strong branding image to break stereotypes &
promote in a large scale.
Why Branding is so critical in International Market Penetration
Identifying a key brand through its logo, or making it unique through delivering excellent quality
or through skilled know how services techniques is all the measurement devised in
distinguishing a key brand.

A sensible logo, its tagline, design should be different for other business to communicate. Once
its successfully executed/implemented in the market & over the years of it fails to create
impressions or catch eye balls of consumers then rebranding becomes difficult.
Some of the innovative ideas to differentiate in terms of international branding strategy are-:.
1. Brand Message— Catchy taglines, capturing photos & sending a powerful message through its
promotion creates an impact on consumers & other peer competitors.
2. Appropriate Communication Channels — Advertisements on TV’s, radio, local newspapers &
having a powerful advertisement message may help consumers in in distinguishing product
differently.
3. Understand the factors of appropriate tone—Promotional activities, Packaging, training staff
to adopt brand message as sense of ownership helps in consumers key distinguish the product.
Bad press, bad word of mouth among the consumers & peers business can have a bad brand
image.
International Market Penetration Strategies
Devising a cost –benefit analysis, deciding on economies of scale, deciding long term
profitability are all the key factors to decide. It also needs to look into the parameters such as
customer taste & preferences population, environment, employment levels political and
economic stability & understanding country’s GDP’s & viability.
The Art of Good Timing
Launching product or business during the thriving economy, cutting costs or shutting unit during
recession should all be forecasted to avoid losses & sustain business.
Legal
Understanding business legally one should understand the legal aspects under which
international company operates. For e.g. service taxes, import & custom duties etc.
Online International Market Penetration

Online company captures more customers than through local promotion. Since everything is
available online & approached through internet for quicker services, feedbacks & delivery steps
hence one should key invest in online venture judiciously.
Multinational businesses thrive on internet space for capturing & visualizing the brand image.
Internet campaign & websites, mobile apps localization should be factored into any market
penetration strategy.

References
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Buell, V.P., 2006. Marketing management: A strategic planning approach. Mcgraw-Hill College.
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Palmatier, R.W., Dant, R.P., Grewal, D. and Evans, K.R., 2006. Factors influencing the effectiveness of
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Quelch, J.A. and Klein, L.R., 2008. The Internet and international marketing. MIT Sloan Management
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