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

This document discusses the global environment assessment, difference between standardisation and globalisation, product range, and promotional strategy for Nespresso in Malta. It also explores the marketing mix for Nespresso in the selected market.

INTERNATIONAL
MARKETING
1

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
2

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
3

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
4

determinations are supposed to be supported to merit only and the administration is the
management of people.
Masculinity- In Malta the score of this dimension is low as it is an intermediate score no
clear cultural tendency is exposed. The fundamental problem is here is that what encourage
individual wanting t be the vest masculine or liking what feminine do.
Uncertainty avoidance- This dimensional score is high as it has preference for avoiding
uncertainty. The nation showing high uncertainty evasion preserves inflexible codes of
confidence and performance and is prejudiced of unconventional behaviour and thoughts.
Long term orientation- It explains that how each community has to manage some links
with its own past while dealing with the issues of the present and future. The score of this
dimension is low as the cultural propensity cannot be analysed for this aspect.
Indulgence- It described as the level of which individual try to control their needs and
needs and desires, based on the way they were elevated. The score of this dimension is high
which sown that Malta’s culture is one of indulgence. Along with this, people of community
place a higher level of importance on leisure time, act as they please and spend money as they
wish.
Ethnic approaches- The ethnicity is a socially assembled group, the traits and constraints of
which can modify depending on the existing social and political reference. The several aspects to
acknowledging ethnicity include prehistoric, essentialism, perennialism, constructivism,
innovation and instrumentalism. Currently, the management of Nespresso use and follow TV and
print media for the marketing of its goods and services. In context of Malta, the company can
also consider this kind of marketing s the people of this nation also use TV for entertainment so
it is an effective option of marketing (Amankwah-Amoah, Boso and Debrah, 2018). Along with
this, they can also use social media marketing tools like Facebook, Twiter and Instagram as now
these people highly use these kinds of tools and use of these kind of technological application
now be the culture of people of entire globe. So, it will help in attracting customer regarding
commodities and maximising sales as well customer base.
Brand sustainability- It is an activity of designing and managing an identity of a particular
commodity, service and business that reflects special additional value in forms of environmental
and social benefits. The brand value of Nespresso is good as offer quality products and services
that are able to fulfil the needs of target audiences (Samiee and Chirapanda, 2019). In Malta, the
5

company can use its effective branding options, alternatives and strengths as the respective firm
is well know all over the globe due to Nestle Group based enterprise. The strong brand of
Nespresso is designed by constantly delivered peak executions. These crystallise into values over
time, help in earning and gaining customer trust. Excellent service and consulting is their great
quality standard that saturates the entire value added chain, from cultivation and exacting
assortment of coffee beans, the roasting activity the packaging and all the form to particularly
designed machines with a technical innovation. In context of Malta, the brand value and brand
image of this help in making sustainable the business of enterprise. The company offer quality
flavoured coffee capsules and use effective packaging that help in getting attention of people.
These all brand option, alternatives and strengths will help in maintaining the long term
sustainability of this brand.
2.
(a) Difference between standardisation and globalisation in context of Nespresso and the chosen
market
Globalisation is an activity of communication and incorporation between individual,
organisations and governments of several courtiers. It can be a process driven by global trade and
investment and aided by information technology. If the respective venture will expand its
business in Malta, it from it will consider culture, policies of national authorities and many more
for effective running of its business in this place (Festa and et. al., 2020). It can use effective
information technology and offer working environment to people as per the culture of this nation
so that they can perform ineffective form. In globalisation, the respective company can enter and
expand its business with its existing products and services in to new market like Malta.
Standardisation is an activity and procedure of designing standards to lead the innovation
of a commodity and facility supported to the consensus of all the reliable parties in the business
sector. In it, the firm can manufacture products by considering consumer need and make focus
on product production process, operations of businesses, utilisation of technology and many
more. So that they can effectively meet their target audiences needs (Paul and Mas, 2019). In
context of Nespresso, the firm can select globalisation as with the help of it the enterprise can
enter or operate its business with its current products like coffee capsules, sticks and coffee
machines etc. This approach is effective as people of all places will prefer these kind of coffee
6

products and it help in meeting the needs of all customers as well as local people, working
professionals and tourists etc.
(b) Identify the product range which will consider introducing and explaining the reasons
The administration of Nespresso offer range of coffee items such as it produced unique
coffee capsules for use only with specifically designed Nespresso machines. These capsules are
accessible in rage of coffee flavours made from the highest quality beans harvested utilising
sustainable activities. There are sixteen verities are developed with individual aromas and
flavour notes to appeal to any personal taste or preference. Along with this, the respective
company offer coffee machines to work only with Nespresso branded capsules. There are range
of machines are created for different use like home, office, restaurants hotels and in board
aircraft etc. These products are beneficial to the firm during launching its business in Malta as
the people prefer coffee and they can also get an effective option of flavoured coffee. Along with
this, coffee machines are beneficial to organisations, restaurants and other which also help in
offering flavoured coffee to individuals.
Marketing mix- It is an activity and process that indicates to the set of actions, or tactics that an
establishment utilises to promote its brand or commodities in the market (Di Benedetto and
Lindgreen, 2018). With the help of this, the administration of respective venture can offer
information about its commodities and services, place of distribution, cost of products and
service and marketing strategies that are used to offer information about the products and
services of the firm.
Product- The respective firm offer coffee capsules, sticks and flavoured coffee drinks
and coffee machines etc. In Malta, the company can expand its business with these products and
drink items.
Price- It refers to the cost and price which is invested by the enterprise to manufacture
and sold the commodities which is manufacture by it (Lu, Scholz and Nguyen, 2018). In context
of Nespresso, the management follow lower and competitive pricing strategy for its coffee items.
In context of Malta, the company can use competitive, skimming and discount pricing strategies.
Place- Nespresso, the firm operate its business internationally more than 71 nations.
Along with this they offer its products in stores, outlets and clubs to its customers. In Malta, the
organisation can provide its commodities and coffee products through its stores, online delivery
and many more.
7

Promotion- It refers to those tools and techniques which are used by enterprises to
advertise and promote its goods and services. In Nespresso, the administration use TV and print
media to promote its commodities. In context of Malta, the venture can use internet, TV, radio,
newspaper, magzines and many more to promote its coffee drink items.
(c) What is the promotion strategy for Nespresso in selected new market?
Promotional strategy is framed to inform, persuade or remind customers about those
products. In context of Nespresso, currently, the management use print media and television to
promote its products and services. In context of Malta, the respective company can use effective
marketing and promotional tools like social media, web advertisement, internet and many more
(Zeneli, Czinkota and Knight, 2018). It will assist in creating awareness about the goods and
services of company and familiar people with its commodities so that people can purchase
commodities as per need.
(d) Suggest the pricing strategy that will adopt for this new market
Pricing strategy refers to the tools that are used by an enterprise to sell and offer
manufacture products and services with the motive of fulfilling consumer’s needs and demands.
There are several pricing strategies some of them are defined as below in reference to Nespresso
for its new market Malta:
Penetration pricing- It is a strategy in which price of commodities are set artificially low
to gain market share quickly. It is done when a new product is being launched (Hüttner, 2018). It
is acknowledged that costs will be increased once the promotion period is over and market share
objectives are attained.
Skimming strategy- Within this strategy, high price is charged for a product till such time
as rivals permit after which price can be dropped. The idea is to recover maximum money before
the product or segment gets attention more rivals who will lower profits for all disquieted.
Competitor strategy- It is the pricing method and technique within which rivals’ prices are
taken in to consideration before setting the price of the commodities and services. The
concentration is on competition-driven costs rather than manufacturing costs and overheads.
In Nespresso, the administration of firm can use penetration and competitor pricing
strategies in term of operating business in Malta. Both strategies will help in getting attention of
large number of customer base and maximise sales as well as profit margins of the firm.
Conclusion
8

This has been summarised form the define information that to make development in
business, the organisation can operate their business in global environment in a particular
market. For globalisation of the enterprise, the company can use effective pricing strategies and
promotional tools which help in operating business in effective manner.
3. Produce a marketing plan for the organisation to market their product in chosen new market
Introduction
A marketing plan is a document that outlines the marketing strategy for the coming time
in term of year, quarter and month. The mission of Nespresso is to offer quality products that
will able to satisfy the needs and demand of individual as well as offer them a unique taste
(Adams, Freitas and Fontana, 2019). The objective and goal of this firm is to create a new
premium coffee segment and building innovation legacy to transform coffee drinking habits.
Marketing environmental audit
PESTEL Analysis
Political- It considers political stability or instability, taxation policies, government
interventions, foreign exchange law, trade restrictions and many more. Due to changing
regulation regarding food standards and marking actions, the business of Nespresso is
influenced. Government stability in new emerging economies questions of risk as part of the
internationalisation activity.
Economical- It includes employment or unemployment, inflation and deflation, taxation
rate, interest rate, taxation policy and government expenditure and many more. In current time,
increasing price of raw material goods in relation to the requirement to source from sustainable
providers (Johnsen, 2018). In the situation of COVID19, the cost of coffee material is maximised
that affect the business and economic condition of Nespresso.
Social- This factor includes population development, age distribution, health
consciousness, demographic components, culture, needs, demands and taste & preference of
consumers. In Nespresso, the changes are occurred in consumers’ needs and want which can
influence the business of in unfavourably manner.
Technological- This component of PESTEL analysis consider advance technology,
artificial intelligence, technical innovation, research and development and others. In current time,
people highly prefer online shopping and online delivery services so by making this kind of
innovation in its business. For example, the firm can offer this service through mobile
9

application and company website. It will help in increasing customer base and sales of the
establishment.
Legal- This aspect refers to the laws and legislation that are framed and developed by
national authorities of different nations for the appropriate running and operating business
enterprises. Currently, the business of respective firm is influence by crisis of corona virus
pandemic because there are several kinds of changes are made regarding hygiene regarding law
and heath law.
Environmental- This factor include ecological components like climate, weather, pollution and
environmental law like air pollution, carbon footprint and pollution act etc. In Nespresso, the
management use cardboard packaging in term of its pods and other products. IN term of coffee
capsules, they use copper which is a reusable metal (vSapouna and et. al., 2018). This creates a
positive influence environment and attract customer who prefer eco-friendly material of
packaging.
Objective proposed strategy including
In term of operating business in Malta, the marketing objectives of Nespresso are defined
as under:
 To maximise the sales of the company by 5% the firm can use effective promotional tools
like social media and web advertisement.
 To increasing profit margins of the firm, the establishment can offer organise coffee drink
products (Deepak and Jeyakumar, 2019).
 To increase customer base, the management can also provide other drink items like juice
and organic or herbal tea.
Changes to the Marketing mix
Product- It refers to the process of converting raw material in to finished good. It refers
to those food items that are offered by Nespresso and can be offered by it to make changes in its
sales and profits in term of maximisation. The respective company offer coffee capsules, sticks
and machines. But during making expansion in Malta, it can also offer flavoured juice and herbal
or organic tea products etc.
Price- It refers to the cost which is invest by the enterprise to manufacture commodities
or services and charging the price to sell products to customers. In Nespresso, the organisation is
used competitive and high pricing strategies due to offer luxurious products. But during
10

operating business in Malta, it can be recommended that it can make change in term of adopting
skimming, premium and penetration pricing strategies for its coffee products.
Place- The firm offer its coffee products in its stores, outlets and restaurants. But to make
change in its distribution areas, it can offer online delivery of its coffee products. Along with
this, they can also offer their coffee items in fast food stores and hotels etc.
Promotion- The company use TV, magazines and print media to promote or create
awareness about its products and services. But at the time of launching business in Malta, it can
also make changes in its promotional strategies and tools like using web advertisement, social
media tools and by writing blogs (Kotler and et. al., 2018). This will assist in getting attention of
range of people and also help in increasing customer base.
People- It refers to those people who make their contribution in producing goods and
services of organisation. In Nespresso, employees, labour, distributors, supplier’s retailers and
customer make their contribution in running the business of this enterprise. But in context of
Malta, they can make change in customer base by targeting tourist, children more than 15years
and others.
Process- It mention to the activity of manufacturing, distribution and purchasing raw
material etc. In Nespresso, the firm offer its coffee products in its stores and outlets (Cateora and
et. al., 2020). By making change in its distribution process in term of offering online coffee
commodities that will help in maximising sales of the firm in new market.
Physical evidence- It refers to the physical appearance and tangibility of the goods and
products. Nespresso offer its coffee products like coffee pods by using cardboard packaging,
capsules in aluminium packaging etc. But by making change in its packaging like using
decomposable bottles they can offer an attractive and easy to carry packaging of its liquid coffee
items.
CONCLUSION
It has been concluded form the above mentioned information that marketing is an effective
process of selling, purchasing and promoting goods and services of an establishment.
International marketing is an effective option of making growth in the business of company by
expanding business in to another nation. To operate a business in different nations, there is
diffent kind of promotional tools and pricing strategies are used by enterprises for effective
running of business. To determine the impact of external environment, the firm can use PESTEL
11

analysis and gain information about the cost, promotional tools, goods and many more, the
management can use marketing mix strategy. These activities help in making changes in business
with purpose of growing business in new target market.
REFERENCES
Books & Journals
Kotler, P. and et. al., 2018. Marketing management: an Asian perspective. Pearson.
Cateora, P.R. and et. al., 2020. International marketing. McGraw-Hill Education.
Morgan, N.A., Feng, H. and Whitler, K.A., 2018. Marketing capabilities in international
marketing. Journal of International Marketing, 26(1), pp.61-95.
Kotabe, M.M. and Helsen, K., 2020. Global marketing management. John Wiley & Sons.
Hollensen, S., 2019. Marketing management: A relationship approach. Pearson Education.
Amankwah-Amoah, J., Boso, N. and Debrah, Y.A., 2018. Africa rising in an emerging world: an
international marketing perspective. International Marketing Review.
Samiee, S. and Chirapanda, S., 2019. International marketing strategy in emerging-market
exporting firms. Journal of International Marketing, 27(1), pp.20-37.
Festa, G. and et. al., 2020. Territory-based knowledge management in international marketing
processes–the case of “Made in Italy” SMEs. European Business Review.
Paul, J. and Mas, E., 2019. Toward a 7-P framework for international marketing. Journal of
Strategic Marketing, pp.1-21.
Di Benedetto, C.A. and Lindgreen, A., 2018. The emergence of Industrial Marketing
Management as the leading academic journal in business-to-business marketing. Industrial
Marketing Management, 69, pp.5-12.
12

Lu, V.N., Scholz, B. and Nguyen, L.T., 2018. Work integrated learning in international
marketing: Student insights. Australasian Marketing Journal (AMJ), 26(2), pp.132-139.
Hüttner, M., 2018. Marketing-Management: allgemein-sektoral-international. Walter de Gruyter
GmbH & Co KG.
Zeneli, V., Czinkota, M.R. and Knight, G., 2018. Terrorism, competitiveness, and international
marketing: an empirical investigation. International Journal of Emerging Markets.
Adams, P., Freitas, I.M.B. and Fontana, R., 2019. Strategic orientation, innovation performance
and the moderating influence of marketing management. Journal of Business Research, 97,
pp.129-140.
Johnsen, T.E., 2018. Purchasing and supply management in an industrial marketing
perspective. Industrial Marketing Management, 69, pp.91-97.
vSapouna, P. and et. al., 2018. Market withdrawal, international orientation and international
marketing: Effects on SME performance in foreign markets. In Advances in Global
Marketing (pp. 281-303). Springer, Cham.
Deepak, R.K.A. and Jeyakumar, S., 2019. Marketing management. Educreation Publishing.
Online
WHAT ABOUT MALTA?. 2020. [Online]. Available Through: < https://www.hofstede-
insights.com/country/malta/>.
13