International Marketing Strategy for Lion Food and Beverage Company in China Market

The report analyses the marketing plan of Lion Food and Beverage Company in China market. It includes macro and micro environmental analysis, market segmentation, targeting and positioning, mode of entry strategy, and marketing and communication objectives.

Running head: INTERNATIONAL MARKETING
International Marketing Strategy
Name of the Student
Name of the University
Author note

1INTERNATIONAL MARKETING
Executive Summary
The report has thrown light on analysis of the marketing plan of Lion Food and Beverage
Company which is situated in Australia in the China market. Furthermore, the macro and
micro environmental factors have been taken into consideration which assisted in
understanding the different kinds of issues which can be faced by them in China market.
Furthermore, entry mode strategies will be essential in nature in managing the different kinds
of expectations of the customers in the market which can be useful for the growth of the firm
in the China market.

Table of Contents
Introduction................................................................................................................................3
Overview of Lions Food and Beverage Company.................................................................3
Rationale of the Business.......................................................................................................3
Macro and Micro Environmental Analysis................................................................................4
PESTEL Analysis of China Market.......................................................................................4
SWOT Analysis of Lion Company........................................................................................5
Marketing and Communication Objectives of Lion Food and Beverage Company..................6
Market Segmentation, Targeting and Positioning......................................................................7
Mode of Entry for Lion Food and Beverage Company.............................................................8
Marketing Strategy...................................................................................................................10
Application of Ansoff’s Matrix............................................................................................10
Marketing Mix.........................................................................................................................11
Conclusion and Recommendations..........................................................................................13
Conclusion............................................................................................................................13
Recommendations................................................................................................................13
References................................................................................................................................15

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Introduction
The report helps in proper analysis of the marketing plan of the Lions Company
which is situated in Australia and the company wants to expand their operations in the
market of China. The product which has been selected from the Lion Company is Yoghurt in
order to sell the same product in the China market to become more successful. In this process,
proper macro and micro environmental factors are required to be taken into consideration
which will be assisting the company in identifying the target markets along with the entry
mode strategy which will be successful in nature. Lastly, the marketing and communication
objectives along with marketing mix are required to be considered to become more
competitive in nature.
Overview of Lions Food and Beverage Company
Lion is one of the foods and beverage company which operates in New Zealand and
Australia and the company was founded in the year 1923 (Lionco.com., 2018). The
headquarters of Lion is situated in Sydney, Australia which helps in producing range of dairy
products such as cheese, yogurt, juice along with soy products as well. The revenue of the
organization is A$5.6 billion till the year 2015 and the number of employees working in the
organization is 25000 till the year 2015.
Rationale of the Business
The main aim and purpose of the Lion Company is to expand their operations in the
China market which falls under the Asia Pacific Region. The rationale is to provide the
customers in the China market is providing healthy type of yoghurts which will be beneficial
for the health-conscious market as the individuals are changing their tastes and preferences.

Macro and Micro Environmental Analysis
PESTEL Analysis of China Market
Political Factors- The political aspect of China is stable which will be helpful for
Lion Company to expand their operations in the respective market. Furthermore, this can be
seen that there is huge opportunity for the free trade agreements and the labour standards are
low in nature which can be one of the major advantages which can be gained by the
respective company by establishing their business in the China market (West, Ford &
Ibrahim, 2015).
Economic Factors- The economic aspect of China is stable and the purchasing power
of the individuals are huge in nature. The GDP of the country is $11.316 trillion which will
be beneficial for the growth of the company. On the other hand, there is low rate of
unemployment and poverty in China market that can increase the sales of the Yoghurt in the
respective market. Moreover, the individuals in the China market are health-consciousness
and the introduction of healthy yoghurt will be beneficial for the growth of the firm and
product in China (Tomczak, Reinecke & Kuss, 2018).
Social Factors- The literacy rate of the China market is 93% which symbolises that
the population is effective in nature in analysing the different products and services which
will be helpful for the expansion program. The main target individuals will be the young
generation individuals which will be beneficial for the overall expansion program in an
efficient manner (West, Ford & Ibrahim, 2018).
Technological Factors- There is increased level of automation in the China market
which leads to the different innovative techniques which helps in the overall growth of the
economy effectively. The internet users are more than 500 million and the technology is

5INTERNATIONAL MARKETING
becoming cheaper in nature which can be beneficial for the overall growth of the company
and the product in the market of China (Sargeant & MACQUILLIN, 2016).
Legal Factors- This is the other factor in which in China, there are different kinds of
environmental protection laws and Lion needs to take into consideration the different aspects
which will be beneficial for the growth. However, there are antitrust laws which can be a
huge threat for the company which can affect the overall efficiency of the firm (Proctor
2014).
Environmental Factors- The global warming can impact the overall growth of the
economy in a negative manner. On the other hand, there are different higher emphasis on the
business sustainability which will be one of the opportunities that can affect the growth of the
company positively (Banerjee, 2017).
SWOT Analysis of Lion Company
Strengths
 The brand is renowned in Australian
and New Zealand market which will
be beneficial for the growth of the
products in China market
 The extensive system of
distribution plays a major role in
successfully diversifying their
options in China market (West,
Ford & Ibrahim, 2015)
 The broad portfolio of the product is
Weaknesses
 There are different legal along with
consumer issues wherein there were
different controversies relating to the
price fixing and other aspects which
can affect the growth of the
company in a negative manner in
China market
 There is huge issues relating to the
structure of the brand as the
company is operating in New

the other strength which will be
beneficial for the satisfying the
different needs and wants of the
customers regarding the healthy
yoghurt
Zealand and Australia which will
be difficult for the expansion in
China (Charter, 2017)
Opportunities
 The healthy yoghurt can be one of
the biggest opportunities which
can be gained by Lion Company
in China as the individuals are
health conscious in nature and this
will be one of the best options for
the company (Eriksson et al.,
2015)
 The expansion program which
have been started by Lion
Company can be beneficial for the
growth in China market (Hill,
2017)
Threats
 There is huge competition in the
market in China as there are
different other competitors in the
market which are selling similar
kinds of yoghurt related products
which will be huge threat for the
company (Hill, 2017)
 The increase in the price of the
different products and services will
be ineffective in nature for the
company as they will be increasing
their prices and the competition will
increase
Marketing and Communication Objectives of Lion Food and Beverage Company
There are different marketing objectives of Lion Food and Beverage Company which
are as follows:
 To increase the sales of company in the China market by 10% till 2020

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 To engage in the different activities which will increase in the market share by 15%
till 2020 in China market
 To expand their operations in China till the year 2025
 To increase the brand awareness and product awareness through social media and
other digital media networks
Market Segmentation, Targeting and Positioning
It is the process in marketing which helps in grouping the different consumers as per
the different tastes and preferences in to smaller subgroups. These kinds of segments are
often homogenous in nature and the attitude of the individuals are similar towards the certain
kind of variables as well.
Segmentation
Customer Based Segmentation
 Kids- Lion Yoghurt which will be beneficial for the growth of the kids in a proper
manner (Piercy, 2016)
 Youths and Old aged Individuals - The ones who are health-conscious in nature and
this will be helpful for them to consume the healthy yoghurt (Hakansson, 2015)
Geographic Segmentation
 Inclusive of the different parts of China
Psychographic Segmentation
 The individuals who belong from the middle and high-income groups
Behavioural Segmentation

 To the ones who are health conscious in nature
 Secondly, to the ones who have the ability to afford the yoghurt and they prefer
consuming the different new products
Targeting- This is the other aspect which is required to be adopted by Lion Company
in expanding their operations in the China market. The main target individuals will be middle
and higher income groups through the offering of the premium quality products with
affordability to the different customers in China market. The targeting will be done wherein
there will be no premium offerings provided to the customers. With the implementation of
the low-cost pricing strategy, Lion Company can create a proper brand image in the
household sector of the China society effectively (Foxall, 2015).
Positioning- This is the last aspect in which Lion Company can expand their
operations in the China market by positioning themselves as the low-price strategy products
which will be beneficial for the growth of the company in the respective market. The
company needs to target the different health conscious individuals who will be enjoying the
cholesterol food items (Tomczak, Reinecke & Kuss, 2018). The company will be offering the
healthy snack to the customers in which this will be increase their profitability in the China
market. The qualities which will be provided in the healthy yoghurt are as follows:
 Value for Money
 Availability of the Products in China market
These are the different major unique attributes of the organization which can be
adopted by Lion Company which will help them in repositioning themselves in an effective
manner.

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Mode of Entry for Lion Food and Beverage Company
There are different kinds of entry mode strategies which can be helpful for them in
increasing their market share in the market effectively (McDONALD, 2016). The Lion Food
and beverage Company will be selecting the Strategic Alliance as the entry mode strategy for
entering into the China market which will be helpful for them in analyzing the different needs
of the customers and meeting the needs of the customers effectively as well (Chernev 2018).
The strategic alliance is the term which helps in describing the series of relationships
between the companies and the market of the same internationally. Furthermore, the strategic
alliances are non-equity based in nature which can be effective for the growth of the company
in such a manner which will be beneficial for their increasing in the popularity (De Villa,
Rajwani & Lawton, 2015).
In this respective entry mode, Lion Food and Beverage Company can remain
independent and separate in nature in comparison to the other competitors in China market.
Furthermore, this has been noticed that there are very less strong competitors of the dairy
products in China market which will be one of the positive aspects which is required to be
taken into consideration to gain competitiveness (Proctor, 2014).
Lion food and beverage company can make proper connections with the local best
milk supplier in China market which will allow them in understanding their supplying
capacity and they can use the same technique and sell the yoghurt products in the market of
China. With the implementation of the strategic alliance entry mode technique, this will be
helpful for Lion Company in making it possible for the different partners to perform and
concentrate on independent activities which will helpful in matching the capabilities (Kim,
Shin & Min, 2016).

Furthermore, Lion company can gain knowledge from the different partners along
with developing the different competencies that will be widely used by them in order to
become more efficient in their operations in the market which is less competitive in nature
(Hollender, Zapkau & Schwens, 2017). Moreover, with the help of the implementation of the
strategic alliance technique, there will be adequate suitability of the different resources which
will provide the company with proper solution to survive in the market in an appropriate
manner which will be beneficial for the overall growth of the firm which will increase the
capability of increasing the competency in the market in an appropriate manner.
Lion Company can take into consideration the various kinds of information of the
availability of the resources which will make the speed to the market better as this is vital in
nature. With the help of the partnership with the milk supplier, this will be assisting Lion
Food and the different milk suppliers which will be beneficial in nature for getting access in
global market. With the help of the Yili Group Milk Suppliers which is based in China
market, this will be providing and supplying milk products to Lion and the company will be
delivering the healthy yogurt of premium quality to the different health conscious customers
in the market of China (Hunt, 2017).
Therefore, from the above, this can be analysed that with the implementation of the
strategic alliance aspect by Lion Company, this will be helpful for them in increasing their
brand awareness in the market. Secondly, the company will be receiving access to the new
customer base and choosing the right partner can be one of the major advantages that can be
gained to strengthen the base of customers which will be beneficial for the success of Lion
Company in China and maintaining strong relationship with the different suppliers in the
market as well (Frösén & Tikkanen, 2016).

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Marketing Strategy
Application of Ansoff’s Matrix
With the help of the Ansoff Matrix, the marketing plan for Lion Food and Beverage
Company will be successful in the China market. The market development strategy can be
applied by Lion Company in order to expand their operations in the market in a successful
manner. The market development is the growth strategy which will be helpful for Lion in
growing and expanding their market in the China market. There are different kinds of
advantages which will be gained by the Lion Company in expanding their operations in the
respective market which is done through proper identification of the different competitors in
the market and perform in a much more effective manner to be more competitive in their
approach (Hennart & Slangen, 2015).
Figure 1: Ansoff Matrix
(Source: Hernández & Nieto, 2015)

With the implementation of the market development, there will be development of the
different products and services which will be beneficial for the overall success of the firm in
the competitive market. The policy of the pricing is required to be adopted by the Lion
company that will be helpful for the identification of the other competitors to gain more
competitiveness.
Marketing Mix
There are different kinds of marketing mix elements which are required to be taken
into consideration by Lion Food and Beverage Company to understand their position in the
China market which will be beneficial for the overall success in the respective market
effectively. The major marketing mix elements which can be taken into consideration with
Lion Food and Beverage Company are considered as follows:
Price- This is the first aspect in which the pricing strategy which is required to be
adopted by Lion Company is low and competitive in nature. As this is the new company
which is expanding in the China market, this is required for them to attract strong customer
base in comparison to the other competitors in the market in an efficient manner (Ang,
Benischke & Doh, 2015). There should be nominal rate of discounts which is required to be
offered by the company in becoming more competitive in the new China market (Hernández
& Nieto, 2015).
Place- This is the second aspect in which the place is the major concern which is
required to be analysed as there are other major competitors that is required to be taken into
consideration to gain overall success in the China market. The inclusion of the home delivery
service and options can be adopted by Lion Company which will be able to meet the different
needs of the customers (Tulung, 2017).

13INTERNATIONAL MARKETING
Product- This is the third aspect in which the main focus is on the healthy yoghurt
which is required to be sold to the customers in the market of China. The website along with
the application of the company can play a vital role in managing the sale of the different
products and services in the market in an appropriate manner. With conducting survey, the
company can try to increase the sales of the products and services in China (Laufs &
Schwens, 2014).
Promotion- This is the last aspect which is the major aspect which considers to play a
major and beneficial role in gaining competitive advantage in the market. With the
implementation of the digital campaigns of marketing, this can be efficient in nature for the
overall growth of the firm through providing the different information regarding the effective
firm growth in China (Hollender, Zapkau & Schwens, 2017).
Conclusion and Recommendations
Conclusion
Therefore, this can be concluded that the marketing plan is essential in nature and
plays a vital role in the entire competitive market as this will be beneficial for the overall
growth of the firm. Furthermore, marketing plan helps in developing the products and
services in the business in order to expand their operations in China market and gain more
competitiveness with an efficient and positive manner. The main motive of the marketing
plan is to help the customers in the market to understand the reasons for choosing such
products and to provide a brief overview on the products and services in comparison to the
other competitors in the market as well.
Furthermore, in the present scenario, there is expansion of the company in the
Chinese market which will be beneficial for the increasing of the overall profitability of the

company in a proper and effective manner. With the help of the macro and micro
environmental analysis of China and the company named Lion Food and Beverage company,
this can be identified that there is huge scope for gaining profitability in the respective market
which can play a major role in becoming successful in the different operations in an operative
manner.
Recommendations
There are different recommendations which can be provided to the Lion Food and
Beverage Company to expand in the China market are described as follows:
Firstly, the company Lion Food and Beverage needs to analyse the culture of the
company in such a manner which will be beneficial for the success of the firm. It can be
noticed that the culture of China is different from Australia as in China, the population is
health conscious in nature that can affect the overall profitability of the firm in a proper
manner. In China, the majority of the population are health conscious and they prefer
premium quality products which is required to be analysed by Lion Food and Beverage
Company
Furthermore, the different environmental rules and regulations are required to be
analysed by the company in order to expand their business operations in China. As per the
legal and environmental aspects, this can be analysed and identified that the culture is
required to be maintained which will be beneficial for the overall success of the firm to
succeed in comparison to the other competitors in the market in a positive manner.

15INTERNATIONAL MARKETING
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