Strategic Online Distribution Strategy for Tingz Food Item

In the current market, the majority of people use the internet and surf consistently. Children are more likely to use and surf the internet compared to other age groups. Considering this trend, it is essential for Peppersmith to adopt an online or click-based method to distribute Tingz products, which is specifically designed for children. The online method offers home delivery, eliminating the need to visit physical stores, making it a time-efficient option. Hence, adopting the online distribution strategy can help enhance sales compared to offline methods.

INTERNATIONAL
MARKETING MANAGEMENT
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INTRODUCTION
International marketing is the concept in which a particular business entity having
presence as well as operates in two or more countries and generate sales and profit. When the
company run its business in one country and then start to expand in another countries then it
called as international or multinational firm. The present case is on the basis of Peppersmith
company which is the UK based and operating in the food industry. It going to launch its new
product such as Tingz which is sweets of sugar free for the children in another market. It shows
different kinds of factors and criteria which are necessary to evaluate while selecting and
entering new market. In the second task the report provides strategies which helps to enter in the
new market and generate revenue and profit.
TASK A
A) Explanation reasons to select particular four countries to expand business
In the current case study there are Peppersmith business organisation launching in new
market for expand its business. The selected firm going to launch and expand business with the
help of product Tingz which is sugar free sweets for the children. For launching the product like
as Tingz there are various number of countries but among them there are only four are selected
between given at the current case. Several number of the factors are there which are taken into
account at the time of selecting market and on of the significant and important elements which
must needs to select is such as gross domestic product or growth rate (International marketing,
2016). Among all the provided countries there are four countries are chosen for launching Tingz
product are such as Germany, France, Turkey as well as Japan. After analysing the GDP rate of
five years such countries are selected and from FY 2010 to 2015 level of GDP declines of most
of the countries. The growth rate of the all the countries are given as below by which such
markets are selected:
Gross Domestic Product Rate
Name of country Fiscal year 2010 Fiscal year 2015
Germany 3.417 trillion 3.356 trillion
Japan 5.909 trillion 4.123 trillion
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France 2.647 trillion 2.422 trillion
Turkey 731.2 billion 718.2 billion
B) Justifications the selection of different criteria
When any business entity entering in the new market then analyse different number of
criterias as well as factors which helps to choose the market. After considering the above
mentioned task it can be said that the gross domestic product rate is also highly important and
significant factor which is necessary to analyse at the time of selecting new market. Apart from
this, there are some criteria which are necessary to evaluate and analyse while choosing the
market for launch Tingz food product for children (Alden and Soutar, 2013). Mainly six
screening factors which must consider and taken into account to launch the food item in selected
four countries are explained as below:
1. Economic factors – While choosing as well as selecting a particular market or country
there are economic factors having the key place which considers with the monetary
aspects. Due to attaching with the monetary terms, it is compulsory to analyse and
screening about the economic factors factors such as growth rate, per capital income,
exchange rate etc. At the current scenario GDP rate of the Germany is reducing with the
very low growth rate and because of this the market will be highly appropriate for
Peppersmith to launch Tingz product.
2. Business regulations – Apart from this, each and every country has different types of the
rules as well as regulations while enter in the country and run the business for providing
products and services (Berthon and et. al., 2012). By considering that the particular
country by Peppersmith has whether strict rules or liberal the four countries are to be
chosen.
3. Political factors – In the political aspects there are different kinds of laws such as
taxation rate, tariffs, boundaries to run company etc. are considered. The country or
market which has the lower tax rate along with smooth political regulations is selected. If
there are taxation rate of one country between all then that is to be chosen.
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4. Trends in export and import – Other factor which must analyse and screen by
management of Peppersmith is trend which relies under the export and import of products
such as sweets for the children (Czinkota and Ronkainen, 2013). The market in which
there are trend for exporting as well as importing the sweet products is very high is
chosen for launching Tingz food item. The reason is that higher the trend lead to consume
more number of products and helps to Peppersmith in order to earn more revenue and
profit.
5. Nature or level of competition – Other screening element which is necessary to
screening while selecting the market is competition because behind charging prices and
generate money there is big hand of competition (Douglas and Craig, 2011). In the
country such as Germany there are sweets of sugar free are less used by the people and
community and due to this level of competition is low. Hence, lower the competition is
better to enter and operate in the new market.
6. Availability of raw materials supply – In addition to this, decision for selecting market
it is also compulsory to analyse about the situation of availability as well as supply of the
raw materials to produce Tingz. If there raw materials or ingredients to cook and produce
Tingz food product are available in the enough quantity is selected which is Germany in
the current case (Jean, Sinkovics and Kim, 2010).
C) Critically evaluation regarding the selection of country to business expansion
Several number of the aspects and criteria are there on the basis of decision to select
market is taken and among them very important is growth of the country. If the particular
country or market grow in the effectual manner then that will be selected by the Peppersimth
company (Majaro, 2013). On the basis of ranking system one market is selected and for which
table is given as below:
Gross Domestic Product Rate Rank
Name of country Fiscal year 2010 Fiscal year 2015
Germany 3.417 trillion 3.356 trillion 1st
Japan 5.909 trillion 4.123 trillion 4th
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France 2.647 trillion 2.422 trillion 2nd
Turkey 731.2 billion 718.2 billion 3rd
By considering the table it has been observed that GDP of all the countries was reduces
over the period from 2010 to 2015 but very low decreasing rate of GDP is of the Germany
country. Due to this, the Germany is the best suitable country for Peppersmith company in order
to launch Tingz food item for the children.
TASK B
When a particular business organisation entering in the new country with the help of any
kind of product as well as service then adopt number of the distribution techniques and
strategies. To provide services and goods up to the customers there are mainly two methods
available which are like as online and offline. In the online there are not any kind of physical
stores available but instead of this internet is used by the company and having page on online
shops (Meissner, 2012). On the other side, the method in which products and services offered
and distributed up to the people and customers with the help of physical stores and retail shops is
known as offline or bricks distribution method. In the current market there are majority of the
people are using internet and surfing on the consistent basis. Furthermore, children are using and
surfing the internet mostly when compare with the other people and Tingz product is for the
children only. Because of this condition Peppersmith business entity needs to use the online or
clicks method for distribute the Tingz product. In addition to this, online method provide facility
of home delivery along with this there are not any kind of need to go up to retail shops and
wasting the time (Paliwoda and Thomas, 2013). Hence, it can be said that the clicks method
which is the best and effectual and the Peppersmith should adopt the second option which helps
to enhance the sales as compare to the first option.
CONCLUSION
By summing up the current report of international marketing management is has been
articulated that at the time of entering in new market and country there are mainly six factors are
necessary to analyses. Moreover, such factors are like as economic condition, trend of export
import, political, business regulations, level of competition, availability of raw materials etc. On
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the basis of such criteria and growth rate there are Germany country is the best for Peppersmith
for launching Tingz food item. On the basis of second task it can be concluded that the
Peppersmith firm must and should use the online distribution strategy and techniques to offer and
provide Tingz product because at the current scenario children use internet. In addition to this,
they do not want to visit up to the physical stores and due to this online distribution strategy is
the best for Peppersmith.
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REFERENCES
Books and journals
Alden and Soutar, G. N., 2013. The effect of global company animosity on global brand attitudes
in emerging and developed markets: does perceived value matter?. Journal of International
Marketing. 21(2). pp.17-38.
Berthon, P. R. and et. al., 2012. Marketing meets Web 2.0, social media, and creative consumers:
Implications for international marketing strategy.Business horizons. 55(3). pp.261-271.
Czinkota, M.R. and Ronkainen, I.A., 2013. International marketing. Cengage Learning.
Douglas, S. P. and Craig, C. S., 2011. Convergence and divergence: Developing a semiglobal
marketing strategy.Journal of International Marketing. 19(1). pp.82-101.
Ghauri, P. N. and Cateora, P. R., 2010.International marketing. McGraw-Hill Higher Education.
Jean, R. J. B., Sinkovics, R. R. and Kim, D., 2010. Drivers and performance outcomes of
relationship learning for suppliers in cross-border customer-supplier relationships: The role
of communication culture. Journal of International Marketing. 18(1). pp.63-85.
Majaro, S., 2013. International Marketing (RLE International Business): A Strategic Approach
to World Markets. Routledge.
Meissner, H. G., 2012. Strategic international marketing. Springer Science & Business Media.
Paliwoda, S. and Thomas, M., 2013. International marketing. Routledge.
Online
International marketing, 2016. [Online]. Available through: <https://www.gov.uk/marketing-
advertising-law/overview>. [Accessed on 15th November 2016].
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