International Marketing Plan for Ben & Jerry's in India
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This document discusses the development of an international marketing plan for Ben & Jerry's expansion into India. It includes a PESTLE analysis of the Indian market, a SWOT analysis of Ben & Jerry's, target market analysis, market entry mode selection, marketing strategies, and product strategy.
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Running Head: INTERNATIONAL MARKETING PLAN0 INTERNATIONAL MARKETING PLAN (STUDENT NAME) 1-6-2019
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INTERNATIONAL MARKETING PLAN2 Introduction Majority of the companies are going across domestic borders to gain opportunities in the international market. While going international, there are certain aspects that a company needs to understand and analyze. For instance, analyzing the current market situation, where the company wishes to expand, the target market, for whom the products are to be offered, and the mode of entry to the international market is another important aspect to decide before going international. Moreover, various marketing decisions like marketing strategies need to be planned before going international. An international marketing plan is a part of a business plan, which the report will considered in detail(Craig & Douglas, 2005). For this purpose, an organizational case will be discussed in the report further, the company is Ben & Jerry’s, who is willing to expand their business in India. For which, the international marketing plan is developed in a precise and specific form(Abdulraheem Sal, 2016). Ben & Jerry is initiated by two individuals in 1978 in Vermont as an ice cream business, who created this legendary brand, which is a very successful chain in various nations. The company as a growth strategy decided to expand its business in various other nations after expanding successfully into Australia, Brazil, and other nations. The focus of this project will be on expanding the brand in India(benjerry, 2018).
INTERNATIONAL MARKETING PLAN3 PESTLE Analysis Initially, in order to enter into a nation for business, it is important to understand the external environment of the business of India. For this purpose, a PESTLE analysis tool will be considered. 1.Political factors – India is a developing nation, where democracy is considered. The political stability of the company is strong, which is beneficial for the company to invest. Moreover, the nation has well-developed taxation system, although this factor is highly influenced by the politician’s interest, government policies, and political parties ideologies. Therefore, it is recommended to the company to consider the political factors and current policies of company before expanding(export.gov, 2018) 2.Economic factors – for this factor one of the major aspects is unemployment rate, which is very high for the nation, therefore it can be taken as an opportunity for the company and generate employment in the nation by expanding business in the country. One of the issue with this industry is that in case of inflation or decrease in consumption level, people would go for purchasing basic needs instead of the high- end range of ice-creams. 3.Social factors – the country is full of cultural values, believes, and numerous religion exists in the nation. The culture of collectivism according to Hofstede’s indicates that the concern for family and togetherness is more, due to which the company can introduce with family packs. Moreover, due to a multicultural nation, the taste of different religions can be included by the company to offer(culturalatlas, 2018) 4.Technological – the nation is not as highly advanced in technology as a western nation like the United Kingdom, but with change environment, the nation is adopting technological change.
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INTERNATIONAL MARKETING PLAN4 5.Legal factors – the common law system is followed by the nation. One of the problems regarding this factor is a high level of corruption level, which could be a challenge for the company while expansion. However the legal system is strong and entering into a nation is not restricted, although legal formalities are quite much 6.Environmental factors – the major concern for this factor is climate change, the nation consists of four major climates, among which the major problem for Ben and Jerry would be the winters season, where the sales for frozen food is decreased. Moreover, the nation consider water scarcity issues in many areas, for which it is recommended for the company to consider CSR regarding water conservation(howandwhat.net, 2018) SWOT Analysis Anotheraspecttoconsiderbeforedevelopingthemarketingplanofthecompanyis identifying and understanding internal factors of the business environment that is strengths, weakness, opportunity, and threats of Ben and Jerry’s, for which SWOT analysis tool will be considered StrengthWeakness Ice cream quality Progressive thinking Creativity Excellent work culture Cultural consciousness Risk of ignorance to the individuality due to the name of Unilever Higher price Restricted target customer segment OpportunitiesThreats Sugar-free productsAcompetitiveindustrylikeHagen
INTERNATIONAL MARKETING PLAN5 Organic flavors Expansion Product diversification Dasz The decrease in demand in the winter season Risk of a decrease in consumption level(benjerry, 2018) Target market The initial stage while developing an international marketing plan understands the host country’s scenario, its competitors and target market. Indiaisaverypopulatedcountry,wheretheconsumptionleveltendstoincrease. Nevertheless, the ice cream industry of the nation is quite wide, and various global brands already exist in the market, which could be a major competitor for Ben & Jerry. The three major competitors analyzed in Indian ice cream market are Baskin - Robbins, Mother Dairy, Amul, and Kwality wall’s(Aubry & Bonnet, 2015). The suitable target market for Ben & Jerry would be the various metropolitan cities, such as Delhi,Mumbai,Bangalore,andKolkata.Moreover,thecustomersegmentwouldbe bifurcated according to the age and the income group. Age group – the customers of age between 15 to 35 years of age, which is targeting the young age group people. The reason being, they are more likely to enjoy the fun and experiment different things Income group – the brand will be target high-income group in India. This will make Baskin – Robbins as its one major threat while entering into the market(Bao & Xia, 2015)
INTERNATIONAL MARKETING PLAN6 Market entry mode Another decision to be taken by the brand to enter into the Indian market is the mode of entry. The mode of entry is the way a company is going to trade its goods in the international market. This needs to be suitable according to the host country’s legal requirements(Cabral & Mathiason, 2015). For Ben & Jerry, the most suitable market entry mode will be franchising. Franchising is a providing a specific right to an individual or a group to trade the parent organization products in the host country. This is indirectly a business model or a business relationship with a party in the host country, which will sell the parent company products on their behalf, as they are authorized to use the name of the brand, business system, product, and process in exchange for appropriate consideration. Some of the franchise chain in India is Subway, Domino’s and many more. In this mode, the company allows a license is known as franchiser and the party or individual to whom the authorization is provided is known as a franchisee(Cabral & Mathiason, 2015). Some of the characteristics that this mode of entry has are that the license is for a limited period, the policies are created by the parent organization, the consideration exists as an exchange for the authority, and the training is provided to the franchisee. For Ben & Jerry, it is the most suitable way to enter into the Indian market, as the control will be more in hands of the brand. Moreover, the quality can be maintained according to the parent organization as the training will be provided to the franchisee(Choi & Park, 2016). Marketing strategies The marketing strategies for the company will be developed, which include the strategy:
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INTERNATIONAL MARKETING PLAN7 Brand positioning – positioning brand includes creating a perception in customer’s mind, that would be beneficial for the company to enter into the market. This is a crucial stage, as this could turn out to be negative while creating the perception. The Ben and Jerry would be creating a perception of love, sharing, fun, and innovation in minds of customers. The focus of the company is over product differentiation, high-quality product, and innovation through a large number of flavors, which is not available in India, like some fruits flavors, which the nation do not have easily. This will create a competitive advantage for the company over the other major competitors(Craig & Douglas, 2005). Innovation and adaptation – another strategy of the company is innovation, understanding the customers, and the taste and adapt as per their requirement. It was analyzed that the level of sweet preferred in India is generally, more than some of the western nations, therefore, the company would like to add some additional sweet in flavors of ice cream that would be liked by the target market of India. This can be understood with the example of Coca-cola case in the nation, it was observed by Coca-Cola that their product is not preferred by the residents due to the level of sweetness in their drinks. Therefore, the suitability for Ben & Jerry would be to adapt the taste of the host nation. Moreover, to enhance the variety of the ice-cream in future, the company can offer various local flavors of some cities, like “paan” flavor, or flavor of dishes popular in different cities, where the company is planning to establish. There are various MNC’s who have adapted this strategy, for example, MC Donald’s(Dickmann, et al., 2008) Customer relationship – another strategy of the company that the company adopts in othernationsaswellasbuildingcustomerrelationshipforretainingexisting customers and attracting more and more customers in the future. This could be done by indulging with customers through social media platforms, remind them about the
INTERNATIONAL MARKETING PLAN8 ice cream and visit the ice cream shop. This will let the company create the customer database, and create brand loyalty among the customers(Du, et al., 2018) Interaction and customer engagement – this is one of the oldest ways of Ben & Jerry, while they will also follow in India, which is interacting more and more with the customer to know what they are expecting from the brand, what new they would like to see with the brand or its flavors. Moreover, they engage customers in choosing the right flavor to be offered to them in the future or ask the customer suggestion regarding the introducing new flavors to the existing list. This will create a stronger bond with the customer, and satisfactory level among the customers are increased to a large level, as they feel that their opinion is very important for the company. Other than this, the company would be taking feedback from the customers through telephone, social media, or face to face, which help them to improve, where they are lacking as per the customer requirements(Gay, 2016). Focus over social mission – the focus of the company is over the social mission. The company would be running various campaigns through social media to create brand awareness, and attract new customers to try out the ice cream, and also helpful in creating brand loyalty. This is done as it is observed that it is the trendy way to approach to the target customers, especially the young age group, as they like to spend most of the time on social media platforms(Geraldi & Soderlund, 2018). Marketing mix Product strategy It is the product which is being offered to the customer, and this is the major reason for any company’s success or failure. Since Ben & Jerry unique selling proposition is the quality of
INTERNATIONAL MARKETING PLAN9 its product, it is important for the company to focus largely on this aspect to enter into the new market that is India. The product line that the company offers are: Premium ice cream, which is a basic supermarket product range Ice Cream of Super premium, which is focusing over the issue of obesity and offering a low-fat range of products for health conscious customer group with high quality and more natural ingredients Frozen yogurt, the competition with this product would be low in India, therefore the company can offer various different flavors of yogurt to the customers of India Sorbet, this is one of the deserts which is created out of fruit juices. This is also new to the Indian market, for which the competition would not be very high as such. Nevertheless, the company has to create a large amount of awareness for this product, so as to make people try this frozen dessert. Concoctions, as the name, suggests it is the cone ice cream, which various other companies are offering too, and it must be added to the menu for Indian customers. This includes the ice cream with cones or waffle(Gupta, 2014). The product range of the company would include more than fifty innovative flavors and with the innovative name as well. Moreover, some of the product strategies include: Localization – as already discussed in the previous section, one of the marketing strategies of the company is an adaptive strategy, which also includes adapting the local taste of the place, where the company is going to be established. Localization could be in the form of flavors, that is the preferred flavor of not only the nation but the city as well. For example, in some locations, people have a specific flavor taste, for example, paan. The company would add these local flavors to their product list. Moreover, according to the taste, the sweetness is also adjusted. Therefore two ranges
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INTERNATIONAL MARKETING PLAN10 are available, one with a bit of high level of sweet in the ice creams and yogurt, whereas another range of sugar-free or low-fat product range for obese people, or people of the diabetic issue. This is done, as this health issue is high in India(Misra, 2017). Customization – another product strategy is a customization that is to offer what people like, this could include creating sundaes, as per the customer requirement. Moreover, tubs of ice-cream may include the various different varieties of ice creams or yogurt. Moreover, combos can be created according to customer preference. This could be one of the competitive advantages of the company, to customize the flavor, and taste what customer wants to enhance the satisfactory level of the customers. For example, the offer can include, create your own ice cream(Mora, 2015). Services – other than the product, the company also focus on the service like the on shop service, which includes providing high-quality packaging that the customer must impress and attract with. Moreover, the delivery to their places is another service provided by the company to target customers who are not willing to visit the scoop shop(Mühlbacher, et al., 2006). Environment-friendly packaging Pricing strategy In a developing country like India, the price of the product dies to matter a lot. However, the company is provided a high-end range of products, the pricing strategy of Ben & Jerry is as follows Price skimming – the products introduced by the company to enter into the Indian market, is high in price, as the customer perception created is the high-quality luxury product, which is for high-end customers. The strategy is to focus on the selected
INTERNATIONAL MARKETING PLAN11 target market, which is the high-income group. This is the luxury item, which the company is offering. Therefore, it is to make brand positioning with a luxury product, for which the price needs to be high. There is a perception of the people that the high amount of price is directly related to the quality of the product, that is why the company planned to enter with the high price of the product. It was observed that the people with the middle-income group are more in the nation, but the high-income group also exist in a large extent. Moreover, the brand will be positioned as a status symbol for a customer to purchase the frozen dessert from Ben & Jerry(Robson & Zeriti, 2014) Promotional strategy Brand ambassador – one of the way to create brand awareness and brand positioning, the company will be using one of the reputed person or a Bollywood popular star like Salman Khan as a brand ambassador for the brand. This will create a strong image of the company in the nation, and attract more new customers. Moreover, people who are not aware of the brand will be knowing the brand in a positive and as a perception of status symbol(Rialp & Rialp, 2007) Advertisement on television – another promotional tool suitable for the company to use is advertisement through an audio video that is through television. Television is a way, which is the most popular and most approachable for the maximum audience at the same time while using popular Bollywood stars to the ad. the brand. Moreover, the advertisement will also reflect the luxury products that the company is offering in the market(Skudiene, et al., 2015). Sales promotion – another promotional tool, which is very helpful in increasing the sale in India, and create high brand awareness is a sales promotional tool. This is to create a relationship with customers while providing coupons, personal discounts, or
INTERNATIONAL MARKETING PLAN12 entering scheme for the customers to increase the sale. Moreover, since the company is product focus, it is important that the customers taste what the company is offering to attract towards purchasing products through Ben & Jerry scoop shop, for which the most suitable option is through samples. The samples can be distributed, to make the customers taste the best quality product, and get to know the reason for the high price of the product(Stahl & Tung, 2015). Publicity – this is one of the cheapest and approachable ways to reach out to the customers. The publicity is considered by the company to create awareness among the customer that the brand is now available in the country. Nevertheless, the company has to take care that the publicity is positive and not the negative publicity, as this can be the reason for failure as well(Stahl & Tung, 2015) Sponsorship – the company can promote its brand name by sponsoring various events, shows, or through movies in India. Some of the food-related shows for example “Master Chef India,” can be sponsored by the company to create brand awareness, and improve the goodwill of the company in long run. This is one of the unique and new ways to promote the brand. Events – the brand for promotion can organize various events, and most popular people of the nation can be invited to attend the event. This is a great way to promote the brand. Moreover, some of the reputed people are part of the target audience as well(Trivedi, 2016). Printed advertisement – one of the traditional promotional way is printed media that is hoardings, newspaper, journals, and magazines. This is to reach out to the customers, who are not much indulged in video advertisements Social marketing – this is one of the best ways to reach out to young people, and businessmen and women. Most often, time spend by the audiences is social media
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INTERNATIONAL MARKETING PLAN13 platforms, therefore it is the best way to approach the customer to try Ben and Jerry ice cream and another frozen dessert. Moreover, extensive promotion can be done by running a campaign on social media. Moreover, email marketing can be used by the company to build a close relationship with the customers Place/ distribution strategy Hotels / Restaurant – one of the ways to make the product of the company available to the end customers is through popular group hotels, such as Taj in Mumbai, Radisson group hotels and many more. This will also be helpful in creating the brand positioning of Ben & Jerry as a status symbol and luxury goods(Anute & Deshmukh, 2015) Online service – the mail order will also be available, that will be reached out to the customers at their doorstep. Order from the company’s website, make the service of thecompanymorefineandprecise.Thiswillprovideanadvantageoverits competitors, like the facility to provide frozen dessert, fresh at the home step (Skudiene, et al., 2015) Franchisees – this is one of the major ways that the company is entering into the country, which is the official stores of the company. The ice cream shop will be located in major areas of metropolitan cities, like shopping complex, near airport, and porch areas of the cities(Robson & Zeriti, 2014).
INTERNATIONAL MARKETING PLAN14 Conclusion To conclude the report it can be said that Ben and Jerry is one of the popular ice-cream shops based in the United States, who is willing to expand its business globally. For this report, the host country was India, and an international marketing plan was prepared for the same. To initiate, the most suitable target market for Ben & Jerry in India was segmenting the customer's group into characteristics that’s the age group and the income group. The people from 15 to 35 age that is the youth would be targeted, as the brand is considered to be an as fun-loving and experimenting taste of people, which youth would be most likely to indulge. Moreover, since the company is providing the luxury good with premium quality, the target income group is high-income customers. The most suitable market entry mode for the company recommended was a franchise. Some of the marketing strategy of Ben & Jerry included Brand positioning as luxury goods, Innovation and adaptation strategy, building Customer relationship, Interaction, and customer engagement, and Focus over the social mission. Considering the marketing mix of the company, which it will carry while entering into the Indian marketis high-end luxury products, with product strategy as localization,and customization.Pricingstrategysuitablewouldbeskimmingpricingstrategy.Various promotional tools would be used to promote the bran in the nation, which include brand ambassadorsasBollywoodstars,advertisementthroughtelevision,orprintedform. Moreover, the placing strategy includes selling their products through 5 and 7-star hotel, through an official outlet that is a franchisee, and online selling.
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