International Marketing: Assessing the Global Environment and Promotional Strategy for Nespresso in Malta

INTERNATIONAL
MARKETING
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Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1. Assess the global environment in the new market which have been selected for culture,
ethnic approaches and brand sustainability.................................................................................3
2...................................................................................................................................................6
(a) Difference between standardisation and globalisation in context of Nespresso and the
chosen market..............................................................................................................................6
(b) Identify the product range which will consider introducing and explaining the reasons......7
(c) What is the promotion strategy for Nespresso in selected new market?................................8
(d) Suggest the pricing strategy that will adopt for this new market...........................................8
3. Produce a marketing plan for the organisation to market their product in chosen new market
.....................................................................................................................................................9
CONCLUSION..............................................................................................................................12
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INTRODUCTION
International marketing is explained as the execution of business operations and practices
designed to plan, price, promote and lead the flow of an enterprise’s products and services to
customers, users in more than one nation for a profit. With the help of international marketing an
establishment can operate its business in global business environment with the help of its range
of goods and services with motive of fulfilling consumer needs and demands as well as earning
profit margins (Kotler and et. al., 2018). It is crucial for organisations as it offer range of market
options to operate the business of firm and assures rational & optimum use of assets. This report
is based Nestle Nespresso S. A. which is an operating unit of the Nestle Group. This
establishment was incorporated in 1986 and headquartered in Lausanne, Switzerland. Nespresso
machine brew espresso and coffee firm coffee capsules or pods in machines for home and
professional use. This document will discuss about the new market that have selected for culture,
ethnic approaches and brand sustainability as well as importance of these component during
choosing selected market. Further, will explain about the difference among standardisation and
globalisation in context of Nespresso and chosen market, product range that organisation will
consider to introduce and promotion as well pricing strategy that will used by firm in reference to
new market. Moreover, marketing plan will explain for the firm to market its commodities in to
chosen market.
MAIN BODY
1. Assess the global environment in the new market which have been selected for culture, ethnic
approaches and brand sustainability
Nespresso is an organisation which operates its business globally in more than 71 nations
and offers its coffee products like capsules or pods etc. and machines for home and professional
use. There are 13,500 people who are employed by this establishment and make their
contribution in running the business of this firm (Cateora and et. al., 2020). The main aim and
purpose of the enterprise is to constantly infuse its brand with original ideas, flavours and
creations. The motive of the firm is to enable anyone to make the perfect cup of espresso coffee.
The objectives of company are to create highest quality grand Cru coffee, creating long lasting
consumer relationships and generating sustainable business success. The purpose of this report is
to determine the business expansion of the firm by analysing new market entry strategy to enter
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into a new market. There is several and numerous marketing strategy which can be used by the
administration of Nespresso to enter to allocate their products and goods in to new market. To
expand its business in to new market the respective firm can select Malta as it has been one of
the most exciting nations to watch and invest in (Morgan, Feng and Whitler, 2018). The
population of this nation is more than 421,000 and development has greatly attributed to its
concentration on knowledge and value added sectors. The political and economical environment
of this nation is also healthy which also help in making business expansion. Along with this,
another reason of selecting this country is cheap labour cost and a large customer base. Due to
having islands, the nation attract traveller so Nespresso can also target them as well as corporate
and normal people.
Joint venture- It is a specific form of partnership that considers the creation of a third
independently administrated organisation. It is a business arrangement within two parties is agree
to pool their resources for the aim and motive of attaining a particular task. However, the
enterprise is its own entity, separate from the participates’ other business interests. It is an
effective way and for of market entry and with the assistant of it the administration of Nespresso
can gain the opportunity to increase capacity and proficiency. It helps the firm to enter associated
business in to new geographic marketplace. Along with this, it also offers access to greater assets
considering specialised workforce and technology.
Culture- The culture of Malta is the outcome of the many different societies that came in contact
with Maltese Islands throughout history, considering cultures of neighbouring nations, cultures
that rules respective nation for long centuries and other impacts form tourism and media (Kotabe
and Helsen, 2020). For the effective determination about culture of Malta in term of high and
low context country, the management of Nespresso can use 6-D Model which is as:
Power Distance- It explains as the level to which the less powerful members of the firm
in a nation expect and adopt that power is allocated unequally. In context of Malta, the scope of
this dimension is high which means that it is a hierarchical society.
Individualism- The fundamental problem determined by it which is the degree of
interdependence a society manages between its members. Malta is an individualist society that
means there is a high preference for a loosely knit communal structure in which people are
desired to take care of themselves and their immediate families only (Hollensen, 2019). In it, the
employee or employer relation is contract based on mutual benefit, recruiting and promotion
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