International Marketing Plan

This document discusses the international marketing plan for a soft drinks company, including the market entry strategy, positioning, and marketing objectives. It also provides information on the target market, product, pricing, and promotion strategies. Find study material and solved assignments on Desklib.

[soft drinks company]
International Marketing Plan

International Marketing Plan | March 8, 201
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INTERNATIONAL MARKETING PLAN
Executive Summary
The main goal of the company is to expand its business and maximize its profits. As a recommendation, it can be
said that an appropriate marketing plan has to be followed to incur and handle the expansion in an effective way.
Marketing Environment
1) PEST
In order to expand Soft Drinks Company that produces smoothies which is made up of fruit-and-yoghurt based
beverages with more flavors, the company is planning to expand the business of smoothies in china as before it
was limited to US. There is a need to identify the potential risks and benefits lying the Chinese market so that the
organization can take advantage of its expansion and earn high profits (Gentlemen Marketing Agency, 2016).
Political & Legal Forces
 Stable political environment
 Trade regulations
 Taxation policies
 Level of Corruption
 Employment regulations
Economic Forces
 High GDP can pace up the business growth
 Disposable income of the customers
 Unemployment rates
 Inflation rates
 Fiscal and monetary freedom
 Currency risks
Socio-Cultural Forces
 Changes in the taste and preferences of the
customers
Technological Forces
 Science technology

International Marketing Plan | March 8, 201
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 Level of education promotes healthy lifestyles
 Distribution of wealth
 Research and development
China is one of the most attractive place to conduct a business or to start a business. Chinas has strongest
political and economic conditions that is powerful. Before investing, an investor generally seeks to look into
three important factors such as size of market, low cost of labor, and growth potential of china.
Political factors- In china, the government has all the power to control the activities done by the people as it is
well-known that communism system governs the whole country (Press Release, 2019b). The political
conditions of china is quite stable and moderate as the government do not publicize everything in the press to
the public. The extent to which citizens are involved in the politics is almost very low because there are many
heavy restriction. Policy imposition and regulation of law are very effective while evaluating in terms of
economy because china is one of the leading nations in the world. Collaborating with the WTO has resulted into
rapid growth in manufacturing and industrial growth due to cheap labor of china (Gentlemen Marketing
Agency, 2016).
Government enforces the development of e-commerce and impose several governmental regulations where they
restricts business from other country. This indicates that complying with Chinese regulations is not easy task.
After the entry of WTO, it has eased business freedom only in few industries such as supermarketization and
opening new market to the MNCs (Press Release, 2019b).
Economic factors- Recently, the country has opened its array of cross border economy that promotes the entry
of new ventures. Per capita income was estimated at 74539.62 billion in 2016 whereas the purchasing power of
the customers is estimated at USD 21291.77 in 2016. The country`s unemployment rate was nearly 4.02% in
2016 of the total labor force. It is important to look in to the country`s economic conditions such as expenditure
of the country was in negative 23818.14 billion in 2016 and the revenue is estimated at CNY 21042.65 billion

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which reflects that the country does not have considerable financial resources that are actually needed to boost
economic conditions (China Business, 2017).
Recently, it is seen that economic condition in 2018 has been weakened in terms of industrial production. The
country will lose a little momentum of trade flow. This slowdown reflects the cutback of infrastructural
investment in china. The country is easing its monetary policies so that it can support the FDIs (China Business,
2017).
Social factors- it is estimated that china`s population was nearly 1382.71 million in 2016 and it is expected that
it will increase till 74539.62 billion in 2022 (China Business, 2017).
Social factors- lifestyle and trend changes in china has led to many changes such as level of consumption,
attitude for a new product emerging from the western culture, and changes in the quality in life. The people
have changed their approach from quantity satisfaction to quality satisfaction. Chinese lifestyle has shifted from
luxury to nutritional food. People started consuming organic and natural equites. It is estimated that nearly 50 to
100 million people of china buy organic food. According to BCG, (2014), china is the world`s famous health
conscious country. Chinese people consider huge intake of protein in their diets especially imported seafood and
other non-meat protein (Press Release, 2019). The country is aiming to reduce its meat consumption almost half
by 2030. The increasing number of gym and health centers in china reflects that there has a surged interest to
live healthy. Even government has intervened to make health plans for next 12 years so that they can take
healthier public.
Non-salary cost of giving employment to a worker is extremely high. Further dismal of that employee can lead
to prior consultation with labor unions (Focus Technology Co., Ltd., 2019b).
Technological factors- the government has been forcing the organization to adapt the trend of e-
commercialization. With the achievement of advanced technology in china, there are many remarkable
achievements in regards to discoveries in the IT field. Severe development in technology and science has
created many jobs in the producing sector, which makes the life better (Li, 2018).
2) SWOT Analysis

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Strengths
 Health oriented
 Promotes healthy with thick juices and smoothies
and avoid aerated drinks
 Attractive packaging
Weaknesses
 High priced
 Product advertisement is very low
 Lack of advertisement of this product.
 Less number of Flavors
Opportunities
 There is a need to advertise more as China is one
of the most populated country`s in the world.
 The company can trake advantage of organic
flavors rather than using pigmentation.
 Needs brand recognition in the home country
 The company offers Fruit juices with superior
flavors and high nutritional content with unique
packaging
Threats
 Severe competition form the local producers
 Organic manufacturers are the major threat
 The company can take advantage of cheap
labor in the Chinese market
 Threat from other substitute juice
 The company should have a chance to proof
itself by expanding to other countries
Strengths
The juice is fresh and thick enough which is known as smoothies. The packaging of the juice is unique. The
juice company accounts to sell more than 13 flavors without any pigmentation. The juice is an organic juice
which can capture the market of the china because current trends of the country favors organic. This juice is

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quite contrary to aerated drinks because its uses fresh fruit pulps to manufacture the juices (Focus Technology
Co., Ltd., 2019b).
Weaknesses
As far as other renowned brands are concerned, Soft Drink Company is not able to advertise its product
effectively (Press Release, 2019). The modes of advertisement is quite weak as there is no presence of this
brand on any social media and internet. The retail outlets spoils the reputation of the company as they do not
clean the packaging of the juices that makes them look so untidy (Focus Technology Co., Ltd., 2019b).
Opportunities
As number of health conscious people are more in china and it has been growing after the government outlook.
This will be preferred by many families. Most importantly, it can also take advantage of first mover. Modern
families have started using juices as their breakfast liquid source. The company can tie-up to an efficient
domestic producer of china. Soft Drink Company has the chance to expand its business by expanding its
business to other several countries (Focus Technology Co., Ltd., 2019b).
Threats
Competition has lowered the entry as juice segment is most competitive in the local market. In current days,
Chinese people have started relying on mineral intake rather than relying only on meat for higher proteins.
People prefer fruits and juices that has become a trend especially among the gym freaks (China Business, 2017).
Competitive Review
Among all the existing competitors, Coca-Cola has topped the list of juice brands with a special juice named
“Mei Juice” (Li, 2018). Increasing healthcare and wellness trends have remained a strong factor in china and in
future it will continue to grow purchases which will finally contribute to a healthier lifestyle as well as will treat
people from certain chronic illness. Other more competitors of Soft Drink Company are Viloe Brand (Vloe-
vera), paper box mango fruit, natural spray dried pineapple juice, natural sabor behida (Aloe-vera), natural

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spray banana dried, and 250 nectar mango with added vitamin-c etc., which can affect the sales of soft drink
company`s sales (Li, 2018).
Market Entry Strategy
While entering in the Chinese market, it is important to decide the mode that will help the organization to
recognize the target people and also the knowledge that the existing company has so that it will become easy to
comply with the legal compliances. The company can enter in an acquisition mode and strategy with a local
producer of the juice named as “natural spray dried lime fruit powder”. Natural spray dried lime fruit powder
provides spray and powders whereas Soft Drink Company deals in fresh pulp of fruits which also makes smoothies
with unique packaging. The collaboration of both the company will lead to product offering of each category form
powered to fresh pulp juices with wide variety of flavors (China Business, 2017).
Positioning
Demand for foreign foods has been growing vastly and there is a high demand for perishable goods such as
meat, seafood, dairy products, vegetables and fruits. Sale with the help of more e-commerce platforms has
doubled the traffic on the sites that has been observed in 2010 to 2016. It is important to know that the
positioning in the market will be among the same group of people such as middle aged people, senior citizens
and gym freaks. In order to position in their minds, the organization has to undertake some promotional
strategies such as sales promotion activity, win the trust with excellent services, advertisement on TV, and
social media. Especially, it has become a trend to share your experiences after drinking the juices on the social
media. The company can also integrate with a café so that it can use the interior of the café as to have maximum
footfalls.

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(Source: Gentlemen, 2017)
Marketing Objectives
The main objective of the company is to induce maximum customers towards the goodness of the juice and
enjoy several flavors. Further, the aim of the marketing procedures is to promote new products, grow with the e-
commerce facility, target new customers in new Chinese market, increase the profits, increase the sales,
improve customer`s experiences and develop brand loyalty (Focus Technology Co., Ltd, 2019).
Marketing Strategy
Target Market
In order to target the market of china in regards to sell fruit juices can be resulted after analyzing the market
research reports. Currently, it is seen that gym freaks and male consumers who has middle and high income
nearly more than US$6000 annually ranging between 30-39 years are estimated to be as the potential target
group who can raise strong demand for fruit juices and can increase the sales of soft drink company
(Gentlemen, 2017). In regards to low price sensitivity, it is seen that another target group can be health
conscious senior citizens aging between 55 to 79. It is found that in china, there is a severe concern to reduce
the effect of aging and age related effects such as heart failure and diabetes (Gentlemen, 2017).
Product-
Soft Drink Company specially provides numerous various juices that ranges from apple, mango, guava,
cranberry, and grapes which is made up of fresh pulp (Focus Technology Co., Ltd, 2019).
The juice is made up of fresh pulp which is 100% pure. It consists of 100% juice blend pulps with less calories
with no added sugar (Gentlemen, 2017).
The juice does not contain any preservative color. Soft Drink Company helps to provide maintain a healthy
lifestyle by ensuring that the products are nutritious and enhance the daily benefits of one who needs
It aims to select best juices to manufacture best quality juices and finally create innovative processes and find
new products (Focus Technology Co., Ltd, 2019).
Pricing

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The company can adopt a value based pricing strategy. It is little costlier as compared to competitors and other
fruit juice brands. The company uses best fruits that further manufactures high quality juices. The price of the
product is very high as it is offered to middle and high level income group people. The company also maintains
a tetra pack of 200 ml that has been priced at $2 and 1000 ml for $8 (Becker, 2018). The company can also
offer a pack of three flavors priced at $30. Recently, the company sales have increased as more and more people
are aware of healthy fruit juice products rather than consuming carbonated drinks (Gentlemen, 2017).
Promotion
The company has promoted its products with the help of television, print media, and most popular social media
platforms such as Facebook, twitter, instagram, YouTube and LinkedIn (Li, 2018). The company has to take
sales promotional activities in the supermarkets by providing them discounts on juices or by offering a huge
range of sample by setting up a stalls especially when they install a new product. The target market of the
product includes health conscious senior citizens and gym freak people that are ultimately likely to be taken as a
segment to whom the product will be offered (Gentlemen Marketing Agency, 2016).
Place
The company would operate its pulpy juice in the geographical range of US. The company wants to extend its
business to china so that it can increase its sales. The company would represent its products everywhere ranging
from supermarkets to grocery shops, provisional stores, convenience stores, and other general stores
(Gentlemen Marketing Agency, 2016). This product mainly targets middle and health conscious people as they
value the price of the juice and its features. The company will use the e-commerce platform of the company as
the country is striving to pace up its growth through e-commerce platform so that it can increase its sales. The
company will be benefited with the best distribution channel of china due to greater technology. The company
can avail its juices on several platforms such as Amazon, Grofers, and Bigbasket etc (Li, 2018).

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International Marketing Plan | March 8, 201
References
Gentlemen Marketing Agency, (2016) Fresh Juices in China E-commerce. Available on:
https://ecommercechinaagency.com/fresh-juices-e-commerce-in-china/ [Accessed on: 05/04/19]
Focus Technology Co., Ltd, (2019). Available on: https://www.made-in-china.com/products-search/hot-china-
products/Juice_Drinks.html [Accessed on: 05/04/19]
Focus Technology Co., Ltd., (2019b) Supplier Discovery. Available on:
https://www.made-in-china.com/manufacturers/fruit-juice.html [Accessed on: 05/04/19]
Gentlemen, (2017) Fresh Juices in China E-commerce. Available on: https://ecommercechinaagency.com/fresh-
juices-e-commerce-in-china/ [Accessed on: 05/04/19]
China Business, (2017) Mainland consumers to spend more on health, experience, premium products in 2018.
Available on: https://www.scmp.com/business/china-business/article/2125720/mainland-consumers-spend-
more-health-experience-premium [Accessed on: 05/04/19]
Li, E. (2018) As The Healthy Living Craze Takes Off In China, This Company Wants To Ensure It Isn't Just A
Fad. Available on: https://www.forbes.com/sites/lienoch/2018/02/22/as-the-healthy-living-craze-takes-off-in-
china-this-company-wants-to-ensure-it-isnt-just-a-fad/#37b99c3f10ce [Accessed on: 05/04/19]
Becker, A. (2018) China’s emergence as the world’s most health conscious market – and what it means for
exporters. Available on: https://www.foodproteinvision.com/wp-content/uploads/2018/03/Day-2-Antoaneta-
Becker.pdf [Accessed on: 05/04/19]
Press Release, (2019a) China PESTEL Analysis, SWOT Analysis and Risk Analysis Market Research Report
Launched. Available on: http://www.digitaljournal.com/pr/3375732 [Accessed on: 05/04/19]
Press Release, (2019b) China PESTLE Analysis & Macroeconomic Trends Market Research Report Launched
from MarketResearchReports.com. Available on: http://www.digitaljournal.com/pr/4074795 [Accessed on:
05/04/19]