Strategic Expansion of Peppersmith Company into Foreign Markets

The report discusses the strategies for expanding Peppersmith Company's business operations into a foreign market, focusing on two major propositions: selecting a suitable market and effective distribution methods. The brick methodology, which involves building physical retail stores in targeted markets, is recommended as the most relevant approach to reach customers aged up to 14 years old. The click methodology, involving online services and home delivery, is considered less significant for this segment but may be applicable for other customer segments.

International Marketing

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK A...........................................................................................................................................1
Market Selection.....................................................................................................................1
Choice of criteria....................................................................................................................4
Critical evaluation of the chosen countries............................................................................5
TASK B...........................................................................................................................................6
Market entry and distribution strategy...................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
International marketing is a vital process for each enterprise to largely extend its services
at a global level by using an advanced formulation of transportation and communication services.
It basically refers to an extrinsic dealing of the firms to transact outside their domestic arena of
the business. An international business is however a fruitful consideration for each firm with an
assured aspect of attaining a definite progression in the future (Demangeot, Broderick and Craig,
2015). The present report is based on a similar conception to articulate the marketing strategies
of Peppersmith Company. In this, the firm is presently looking for a successful enlargement of
their prevalent products and services into some extrinsic locations at an international level.
Peppersmith Company was primarily founded in the year of 2009 by two of its founders named
Dan Shrimpton and Mike Stevens with huge manufacturing products of mints and chewing gum
with a variety of range into each of their sections.
TASK A
Market Selection
A global marketing is a significant procedure which not only benefits the firms who are
primarily opting for it, but an international growth and expansion largely enhances the prevalent
state of the nations. However, market selection is yet another crucial factor where the firm is
duly responsible to conduct some apt level of research into various mandate arenas with a need
base of making a suitable choice of a new market. It is to effectively accredit some major
relevant factors of addressing the prevailing modulations of a chosen market by together
acknowledging the existing preferences of their customers (Kitchen, 2016). Peppersmith is
currently opting for an international expansion of their business, especially into one of its famous
“go dental” range of product with a varied section of Tingz sugar-free sweets.
It has essentially targeted the main customer segment of kids with a separated corner of
confectionery market for children with a tooth friendly product of Tingz. Peppersmith is
therefore looking for four major countries where they can successfully launch their products by
accrediting all its related factors to determine the GDP rate, population, per capita income and
some existent preferences of their customer's, etc. However, it together recommends analysing
the cited firm about any existing competitors at that peculiar location with their strong presence
and various strategic movements of marketing (Virvilaite, Seinauskiene and Sestokiene, 2015).
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With a similar perspective, Peppersmith has opted for four major countries of France, Belgium,
Norway and Denmark with some below ascertained criteria:
Criterion-based France Belgium Norway Denmark
Rate of GDP 42, 503.30 USD
in 2013
46, 877.99 USD
in 2013
100, 818.50 USD
in 2013
59, 831.70 USD
in 2013
Population of Kids
(0-14 years of age)
18.7%
Male- 6,337,877
Female-
6,053,185
15.6%
Male- 830,980
Female- 797,624
18.2%
Male- 480, 176
Female- 456, 128
17%
Male- 485, 115
Female- 460, 682
Per capita Income $35, 700
estimated in
2013
$37, 800
estimated in 2013
$55, 400
estimated in 2013
$37, 800
estimated in 2013
Contenders Nestle and
Barcel
Ferrara Candy
Co. and Yildiz
Holding
Orkla Group Toms
International
The above statistical data will help Peppersmith company to effectually focus upon its
major targeted area of kids by successfully operating with a strategic plan to meet their
respective preferences. However, a strategic planning for a global expansion primarily requires
the cited firm to evaluate its present strategies of business activities by together comparing it to
the outer requisitions of their chosen market areas (Eimermann, 2015). Therefore, to initiate with
a suitable comparison, Peppersmith is required to produce a relevant report of its own attributes
to specify some of its major optimistic properties along with some of its counter drawbacks.
Swot analysis is recommended to be a significant tool to scrutinize the four main facets of the
cited firm as mentioned below: Strengths- The major strength of Peppersmith is regarded to be the optimistic formulation
of its two main operators where they have efficiently discovered some relevant materials
to be used in manufacturing their products. Therefore, the genuine sense of serving their
customers is referred to be a huge capability of Peppersmith to attract more number of
customers towards their goods and services.
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 Weaknesses- The only drawback of the cited firm is considered to be its significantly less
hold onto the global arenas where it is largely dependent upon its domestic market of UK
(Hoppner and Griffith, 2015). Opportunities- An international expansion with a significant approach of utilizing some
innovative methods of marketing will be an added advantage for Peppersmith. As a
result, an increased all over command will largely serve as a greater opportunity for
Peppersmith to work at a global level of the markets by together enhancing its
profitability ratio.
 Threats- A major threat to the cited firm is merely from its huge number of rivalries at
almost each of its selected market for expansion (Choi and Yeniyurt, 2015). However, it
can together beat those competitors by opting for a differentiated yet effective measure of
fabricating and marketing its goods and services with a primary approach of evaluating
those.
The above conducted analysis will peculiarly assist Peppersmith Company to
subsequently assess and compare its present existing measures with some major requisitions of
its selected market. However, it is again with a prior need of scrutinizing the ongoing state of its
chosen market scenario in terms of their major functional areas (Dahlquist and Griffith, 2015).
Thus, a Pest analysis is proven to be yet another profound tool for Peppersmith Company to
crucially analyse the major influencing factors of their above selected market that could directly
impact on its certain marketing decisions. Pest analysis is based upon its four major constituents,
as mentioned below: Political- The political factors are referred to some predefined legal applications of a
market in terms of their distinguished governmental rules and regulations. These factors
thereby ascertain some legal laws to be crucially implemented into the prevailing
organisations. It is thence with a mandatory recommendation for the operating firms to
constantly adhere by its altering aspects as well. It is therefore important for the
administrative bodies of Peppersmith to conduct a continuous assessment into such
changing aspects of the market for a stabilised formation of their own policies. Economical- Economic factors are some highly influencing factors, which directly makes
a tremendous impact on the financial decisions of the cited firm (Lee, Lim, Yeo and
Pedersen, 2015). Therefore, it is equally important to attain a dynamic nature to easily
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adopt the unstable economic state of a market. It refers to some definite changes into the
interest rates, exchange rate, tax rates and inflation rate of a nation. These factors will
hereby relate to the profitability ratio of the cited firm by directly reflecting into either an
increased or a reduced revenue of sales which will then significantly affect their
employment wages as well. Socio- culture- These factors directly relate to the present customer preferences of their
chosen market where Peppersmith is crucially responsible to primarily analyse some
common measures of the existing confectionery stores into it. This will thereby help
Peppersmith to launch some relatively modified measures of their own which will
together match to the current choices of their customers by duly attracting them towards
the products of the cited company.
 Technological- These factors play an utmost important role in today's advanced technical
approaches where the cited firm is already leading with a continuous evolution of
introducing some dynamic products. This has automatically attracted a major number of
customers to approach for their dignified attempt of fulfilling their varied sort of demands
(Soutar, Wilkinson and Young, 2015). Technological factors together play a crucial role
in some foremost practices of production and packaging where the cited firm has together
introduced some newer equipments, especially to manufacture its mint candies and
chewing gums. Such preparation has resulted into some optimistic outcomes where the
consumers have agreed to have a long lasting effect of those confects.
Choice of criteria
An international expansion of products and services crucially recommends each of the
organisation to primarily assess a specific criterion for examining the ongoing events of their
proposed markets. This will thereby help the firm to balance out its major requisitions of setting
up their business at a fresh market area. Peppersmith is thence required to balance out its
financial resources with an equivalent arrangement of manpower resources for its varied
functionalities of production, distribution and packaging, etc. This will automatically help the
cited company to select a perfect market for enlarging their services into its prevalent conditions
by consequently attaining a better outcome of an expected result (Stöttinger, Schlegelmilch and
Zou, 2015). Therefore, with a similar perception of fundamentally scrutinizing the ongoing
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trends of their ascertained market, the cited firm has hereby opted for some below mentioned
constituents into each of its chosen market: Rate of GDP- The GDP rate determines the development of an entire population of the
nation in terms of measuring their spending capacity of buying products. This will hereby
help Peppersmith to accurately recognise an apt potency of the overall community
residing into their expanded markets. This will automatically specify about the
acceptance information from the existing consumers towards their freshly launching
products. Population of Kids- It is a crucial section where the present company of Peppersmith will
easily accomplish its major segregated section of kids where it has already targeted the
children till 14 years of age (Zou, Xu and Shi, 2015). Thus, this portion will aptly help
the cited firm to determine an exact number of customers into that peculiar segment to
ascertain a requisite amount of rendering services for them. Per capita income- The per capita income is yet another crucial section where
Peppersmith can easily conclude the income generation of the entire population of their
proposed market. This will in turn help into their pricing strategies where they can
together build some effective plans for aptly fixing the price of their products. Here the
firm can also relate their price fixation to the buying capacity of their prospected segment
of customers for largely attracting them.
 Contenders- It is a foremost step for each organisation to primarily scrutinize about some
existent practices of their competitors in order to introduce a distinguished formulation of
work (Demangeot, Broderick and Craig, 2015). This will hereby help Peppersmith to
attain a competitive advantage as compared to its major rivalries who are already
operating into their preferred market for expansion. The cited company can together build
some distinct way of attracting their prospected customers through some unique yet
reliable plans of marketing.
Critical evaluation of the chosen countries
In-spite of the above ascertained factors of segregating the criteria has vitally assisted
Peppersmith Company in effectively determining about their gradual state of operating into the
newer areas of market, a critical evaluation of the countries is equally necessary for the cited
firm (Virvilaite, Seinauskiene and Sestokiene, 2015). This will together aid Peppersmith to
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effectually rank the countries on basis of their descriptive criterion with a considerable
reasoning, as mentioned below-
Ranking Selected Country Cognition
1st Norway It has been ranked at a number one position due to its high rate
of GDP and per capita income along with less number of
competitors.
2nd France A raised population of kids is a major reason of remarking it at
a second position.
3rd Belgium It is together competing with France in terms of its GDP rate
with a remarkable number of kids.
4th Denmark It is closely beating the GDP rate of Belgium with an equal
number of per capita income and some limited competitors.
TASK B
Market entry and distribution strategy
Market positioning along with an effective strategy of distribution are ascertained as
some prior activities by the organisation for strategically entering into the foreign markets. This
directly relates to the marketing procedures of Peppersmith Company where they can
successfully cover their targeted segment of customers. It is due to some relevant methods of
marketing with a need base aspect of attracting more number of customer towards some
unfamiliar products of the cited firm (Hoppner and Griffith, 2015). However, it significantly
depends upon the marketing team of Peppersmith to strategically build an action plan of
remotely distributing the products that outreaches almost all their prospected consumers. Below
ascertained methods can be defined as two major implementations of the cited company to either
distribute their products through a direct or an indirect channel. This requires the concerned team
to form some rationalised plans to reliably fetch the attention of more number of customers to
sell their goods and services to the targeted clients. Such measures are: Bricks methodology- It refers to the indirect channels of distribution where Peppersmith
Company is liable to build their physical presence into the selected markets for
expansion. This is in regard to develop some apt retail stores of the cited firms into some
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posh locations of the market to effectively reach the targeted customers. A physical
presence will thereby help the cited firm to build an optimistic image of their brand by
together building some loyal commitments towards the customers. It is due to their prior
inclusions of inculcating a separated team of individuals to execute a needed operation of
customer service (Belgium GDP, 2015). The visitors can hereby refer to the assistants at
each departments of the store to acknowledge the assorted features of any product before
purchasing it. This will however require Peppersmith Company to appoint some
professionalised employees to efficiently attend their customers by together resolving
their varied queries and concerns. However, it is together recommended to the cited firm
to select an apt location for setting up their retail store into the nearby areas of parks and
play schools, etc. This will crucially help the firm to easily attract its targeted customers
of kids who are segmented as per their age criteria of up to 14 years.
 Clicks methodology- The click method refers to the direct distribution of products via a
trending option of providing online services to the customers by covering almost all the
regions of a market. Peppersmith Company can hereby opt for numerous technical
measures of servicing their clients either through a self payment system where they can
provide a home delivery of their goods and services. Click and concept is yet another
method into which the cited firm is liable to operate its warehouses at some specific
locations. The consumers in such procedure can primarily order their goods via telephone
or online through the official website of the cited firm and can later collect it as per their
own convenient time (Soutar, Wilkinson and Young, 2015). However, it is a less
significant method to serve the proposed segment of customers where Peppersmith has
significantly targeted the kids for its specialised product of Tingz. It is also considered to
be a costlier method with an unstable expenditure of distributing the goods at some
unfamiliar locations of customers with an equivalently low response by the consumers to
a new brand of the cited firm.
Therefore, the above evaluation has critically ascertained the Brick method to be a
relevant facet of distributing its specialised product of Tingz to the children till 14 years of age. It
is also due to the major preferences of their parents who always opt to buy some effective
products for their kids by primarily analysing its liable features (France, 2015).
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CONCLUSION
The above report has significantly articulated some major benefit to the firms in
strategically planning for an expansion of their business operations into an unfamiliar foreign
market. The report was therefore divided into two leading propositions with a primary part of
selecting a liable market for expansion with some of its effective measures of assessment.
However, the secondary part was then based upon the above strategies of entering into a selected
market with some effective measures of distributing the goods of Peppersmith Company to all its
targeted segments of customers.
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REFERENCES
Books and Journals
Choi, J. and Yeniyurt, S., 2015. Contingency distance factors and international research and
development (R&D), marketing, and manufacturing alliance formations. International
Business Review. 24(6). pp.1061-1071.
Dahlquist, S.H. and Griffith, D.A., 2015. A framework for the formation of governance
portfolios in international interfirm marketing collaborations. AMS Review. 5(1-2). pp.45-
59.
Demangeot, C., Broderick, A.J. and Craig, C.S., 2015. Multicultural marketplaces: new territory
for international marketing and consumer research. International Marketing Review,.
32(2). pp.118-140.
Eimermann, M., 2015. Promoting Swedish countryside in the Netherlands: International rural
place marketing to attract new residents. European Urban and Regional Studies. 22(4).
pp.398-415.
Hoppner, J.J. and Griffith, D.A., 2015. Looking Back to Move Forward: A Review of the
Evolution of Research in International Marketing Channels. Journal of Retailing. 91(4).
pp.610-626.
Kitchen, P., 2016. The rhetoric and reality of marketing: An international managerial approach.
Springer.
Lee, M., Lim, C.H., Yeo, I.S. and Pedersen, P.M., 2015. The Marketing of an International
Match in Asia: The Effects of Sport Commentary and Nationalistic Sentiments on
Framing, Priming, and Consumer Behavior. Sport Marketing Quarterly. 24(4). p.235.
Soutar, G.N., Wilkinson, I. and Young, L., 2015. Research performance of marketing academics
and departments: An international comparison. Australasian Marketing Journal (AMJ),
23(2). pp.155-161.
Stöttinger, B., Schlegelmilch, B.B. and Zou, S. eds., 2015. International Marketing in the Fast
Changing World (Vol. 26). Emerald Group Publishing.
Virvilaite, R., Seinauskiene, B. and Sestokiene, G., 2015. The Link between
Standardization/Adaptation of International Marketing Strategy and Company
Performance. Engineering Economics. 22(1). pp.106-117.
Zou, S., Xu, H. and Shi, L.H. eds., 2015. Entrepreneurship in International Marketing (Vol. 25).
Emerald Group Publishing.
Online
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Belgium GDP. 2015. [Online]. Available
through:<http://www.indexmundi.com/belgium/gdp_per_capita_%28ppp%29.html>.
[Accessed on 17th May 2016].
France. 2015. [Online]. Available through: <http://www.indexmundi.com/france>.[Accessed on
17th May 2016].
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