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International Marketing Management

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Added on  2022/11/30

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This document provides an overview of international marketing management, focusing on market entry strategies, global trends, and social media adaptation. It discusses the case of Hello Fresh and its plans to expand its business in Sweden. The document also includes references to relevant books and journals.

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International Marketing
Management

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Table of Contents
Introduction......................................................................................................................................1
Main Body.......................................................................................................................................1
Market Entry Strategy............................................................................................................1
Global trends and their application in the local environment.................................................3
Social Media standardization and adaptation.........................................................................4
Conclusion.......................................................................................................................................5
References:.......................................................................................................................................6
Books and Journals.................................................................................................................6
Appendix A......................................................................................................................................7
Segmentation and buying behaviour......................................................................................7
Appendix B......................................................................................................................................8
Cultural insight.......................................................................................................................8
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Introduction
International marketing is defined as the application of marketing methods and principles to
more than more country, it an effort by an organisation made with the objective of reaching to
the target audience in overseas market while expanding its business. It is the extension of
company’s local marketing strategy to the international market with prime focus over market
identification, targeting and positioning of a company across geographical borders (Trautwein
and Lindenmeier, 2019). Companies plan and design intense marketing plans with the help of
marketing mix to ensure the free flow of goods and services to the consumers in more than one
nation. Hello Fresh was founded in the year, November 2011, with the purpose of providing
weekly shipment of groceries and recipes the customer who are seeking for an instant food
cooking options. It is the largest meal kit company, based in Berlin, Germany, with its operations
in United States, Canada and in Western Europe. Objective of the report is to find an optimum
market entry strategy for Sweden, modes of communication and analysing the trends that have
an impact over their expansion.
Main Body
Market Entry Strategy
Brief Introduction of the company
Hello Fresh is one of the largest easy to cook meal Kit Company, originating from Berlin,
Germany. Company was founded way back in 2011, November with the objective of providing
weekly shipments of groceries and recipes to the families that allow them to prepare food in a
short span of time and appealing food at home without the concern for planning a meal and
stepping out for purchasing a grocery. The target segment for the Hello Fresh is the people who
fall into the category of 30-50 years who are mostly working professionals and usually don’t
spare time to cook food and meal planning. Presently, Hello Fresh is planning to expand its base
in other countries of Europe, with the concept of providing organic and vegan recipes, products
and meal plans to the customers (Ferguson and Mohan, 2020).
Green Chef is certified company, founded in the year 2014 which is a subsidiary of Hello
Fresh, which provides meal kits plans to every lifestyles including vegan, Keto, Paleo, organic
and plants based diets to the customer who are health conscious. Green Chef was formed with
the objective of providing healthy and organic meal kits plans that are easy and accessible to the
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customers while saving their cost, food waste time, and money. Each one of the Kits offered by
Green chefs contains fresh, organic, and balanced nutrients meal along with the recipe cards and
photos to assist the customers in preparing and nourishing healthy dinners.
Green chef wants to expand its business operations in Sweden market and want to cater to the
needs of the people who are looking for healthier and balanced diets (Gustafson and Pomirleanu,
2021). People in Western countries are shifting towards the non-veg food to the vegan food
because of the rich nutrients and health benefits. One of the prime reason for expanding the
business operations into Sweden is, high disposable income of the target audience and huge
market for organic packaged food products. Another significant factor is that shifting trends of
people in Sweden towards organic, plan-based food items and veganism. People are becoming
more conscious towards nature and are more concerned for their health, therefore eliminating
meat from their diet.
Market entry strategy can be described as the planned distribution methods and channels
of distribution for the good and services for the products and services produced by the company.
While entering into a foreign market Green Chef have been opted for a Joint Venture with
Amazon, which is a largest e-commerce company. Amazon have extensive and well established
market across with good understanding and strong hold over local market and this is one the
significant advantage for Green Chef while entering into the partnership with Amazon. With the
increasing trends of the online shopping and emergence of COVID have made it compulsory for
the business firms to have a contact less business services and supply chain (Paul and Criado,
2020).
As per the report overall business conducted online in Sweden was approximately 75.2%,
which make online business an ideal solution for Green Chef to sell their products and services
to the targeted audience. Additionally, emergence of Pandemic have cause a temporary
disruption into the supply chain and supermarkets have been temporary closes which have made
the people to buy products through online platforms with ease, comfort and safety.
Main reason to enter into the Joint Venture with Amazon is sharing of risk and
investment. As, when entering into the Joint venture both the parties make equal contribution
towards the projects and execute the project collectively with their expertise and knowledge.
Green Chef have chosen to enter into a foreign market through joint venture with Amazon and
another reason is that Amazon have an extensive knowledge of local market with better
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understandings of the demographics and buying trends of target group. With Joint Venture,
Green Chef will not only have the access to the large market share but also the knowledge and
experience that Amazon have gained over a period of time (Salunke, Weerawardena and
McColl-Kennedy, 2019).
Therefore, by entering into a Joint Venture with Amazon, Green Chef can sell its product over
the largest e-commerce platform through Amazon prime member subscription and via their
official website.
Global trends and their application in the local environment
Some globalization trends are adopting in local market by many companies with the
main aim to grow and expand their business internationally. It is very important to analyse
current marketing trends and try to adopt all those trends in specific business to grab the attention
of customers. In context to Hello Fresh Company, they adopted some global trends in their local
market and they are explained below-
Online Shopping- This is the basic and most popular trend for every company to offer
their products through online mode. Here, customers have benefit to order their products while
sitting at home and companies deliver that food within given time period to customers. Hello
Fresh allow this trend in their business because today when Covid 19 pandemic is affecting
people health by negative way then it is good opportunity for Hello Fresh to provide their
customers a fresh food items which increase their immune system and help them to maintain
their health and all this products will be delivered to customers through online mode
(Elsharnouby and Elbanna, 2021). The demand of people for online mode is increasing this
pandemic because nowadays no one wants to go out of their home and buy products. Today
customers feel safe by ordering products at home. Hence, this is profitable for Hello fresh to
adopt this trend in their local market to grow.
Snackification trend- Most of the customers like to have snacks at home once a day
especially when they get hungry at evening. Today most of the companies are providing snacks
at higher cost and they are also not healthy to eat because most of the snacks are fried. Hence, it
is beneficial for Hello Fresh to introduce new product for their brand to gain more profit and the
product should be baked snacks with added natural ingredients. This will help them to gain more
customers toward their brand. It is also recommended for them to keep the prices of their snack
lower than other snacks presented in market. They are also required to pay attention to maintain
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quality of their snacks. This will not happen to them that for cutting down the cost of their snacks
they sacrifice the in quality. In the era of Covid pandemic, customers needs to consume high
qualitative products and especially in eatable products (Mittal, Agrawal and Gupta, 2019).
Therefore, it is beneficial for them to offer their baked snacks with natural ingredients for adding
taste and flavours to satisfy customers. This trend of offering healthy snacks will help them to
grow in their local market. Secondly, they can also influence other local sellers to sell their
snacks in their stores. This will help to promote their new product by increasing the awareness of
customers.
Re-Localizing Production- This trend of offering local products especially those
products which are famous in their home countries is a good idea to grow. In the era of Covid,
most of the customers demand to eat local products of their countries because they have
knowledge of how they produced and what are benefits for their consumption. Hence, it is
beneficial for Hello Fresh to adopt to cook those products which are famous in their operating
countries. Secondly, most of the consumers majorly support those companies more who produce
domestic products rather than international product. Therefore, to gain the customer trust and
support it is good for the mentioned company to produce local eatable products (Hawkins,
Gravier and Muir, 2020).
All three trends will work in one condition when company will adopt good packaging
system. It is compulsory for company to adopt hygienic and appropriate packaging system to
gain customer trust to purchase the products. In case of online shopping customer will deny
purchasing products which is not packed with full safety and in hygienic way. In case of snacks,
it is compulsory to mention what all ingredients are used to make those snacks and this can be
mentioned on packets of packaging. Good labelling on packaging will help the company to
aware more customers as well. Re- Localizing production also needs to get packed with proper
way. Hence, all the above mentioned global trends will help the company to gain more profit and
popularity by adopting them in their local markets.
Social Media standardization and adaptation
In context of International market management, it is compulsory to maintain a good
communication with customers to identify their need and wants so that company will work
accordingly to produce their products (Mani and Chouk, 2019). There are two strategies used to
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describe how companies can be benefited and which strategy will provide maximum profit to
company and these strategies are mentioned below-
Standardization- It means to use a single strategy for longer period of time without
changing anything from business point of view. In context of Hello Fresh, they can adopt this
strategy to communicate with their customers by using social media and using same for
communicating for longer time (Leminen and et. al., 2020). This will help the company to save
their cost which is spending on adopting different promotional tools. But on the other hand this
will not allow company to know recent trends in market. Hence, this strategy is little unsuitable
for Hello fresh to adopt.
Adaptation- This is the strategy which states that promotional tool and the way of
communicating with customers will change on timely basis. This strategy will help the company
to gain more trust from their customers because adopting new ways of communication according
to their generation will help to understand more easily that what are their needs and wants. In
context to Hello Fresh, they adopt this strategy by promoting their products through different
social media platforms like Instagram, Facebook and many others (Trautwein and Lindenmeier,
2019). They adopt many different ways to communicate with their customers through social
media like they share pictures and videos of their new product on social media to aware their
customers and they also send feedback form to their customers through their websites and even
on their social media accounts to know the experience of customers. Hence, this strategy is good
for Hello fresh to adopt to communicate with different types of customers of having different
mind sets.
Conclusion
From the above mentioned report it has been conclude that International Marketing is
concerned with managing the expansion of business operations of a company in more than one
nation. It is the extension of a domestic marketing strategies into a foreign market with the
objective of reaching to maximise target audience and selling of good and services beyond the
geographical boundaries. International marketing makes strategies to enter into a foreign market,
designing of a marketing mix which includes, product, price, place and promotion to understand
the target market and finding out the best possible ways to serve the needs of target market.
.
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References:
Books and Journals
Elsharnouby, T.H. and Elbanna, S., 2021. Change or perish: examining the role of human capital
and dynamic marketing capabilities in the hospitality sector. Tourism
Management. 82. p.104184.
Ferguson, J.L. and Mohan, M., 2020. Use of celebrity and non-celebrity persons in B2B
advertisements: Effects on attention, recall, and hedonic and utilitarian
attitudes. Industrial Marketing Management, 89, pp.594-604.
Gustafson, B.M. and Pomirleanu, N., 2021. A discursive framework of B2B brand
legitimacy. Industrial Marketing Management. 93. pp.22-31.
Hawkins, T.G., Gravier, M.J. and Muir, W.A., 2020. The role of supplier performance
evaluations in mitigating risk: Assessing evaluation processes and
behaviors. Industrial Marketing Management. 87. pp.2-17.
Leminen, S., and et. al., 2020. Industrial internet of things business models in the machine-to-
machine context. Industrial Marketing Management. 84. pp.298-311.
Mani, Z. and Chouk, I., 2019. Impact of privacy concerns on resistance to smart services: does
the ‘Big Brother effect’matter?. Journal of Marketing Management. 35(15-16).
pp.1460-1479.
Mittal, M., Agrawal, S. and Gupta, R., 2019. Gender Difference in Customer Satisfaction and
Brand Loyalty Towards Banking Services. IUP Journal of Marketing
Management. 18(1). pp.23-38.
Paul, J. and Criado, A.R., 2020. The art of writing literature review: What do we know and what
do we need to know?. International Business Review. 29(4). p.101717.
Salunke, S., Weerawardena, J. and McColl-Kennedy, J.R., 2019. The central role of knowledge
integration capability in service innovation-based competitive strategy. Industrial
Marketing Management. 76. pp.144-156.
Trautwein, S. and Lindenmeier, J., 2019. The effect of affective response to corporate social
irresponsibility on consumer resistance behaviour: validation of a dual-channel
model. Journal of Marketing Management. 35(3-4). pp.253-276.
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Appendix A
Segmentation and buying behaviour
Green Chef is a certified organic and vegan company that provides a meal kit plans to the
each and every lifestyle such as plant-based, organic, vegan and Paleo diets. The idea behind is
to serve to the customer of Sweden who are between the age group of 18-45 years who are
mostly working professional and students who are living independently and don’t spare time to
cook food and plan for a dinner. Almost more than 80% of the target audience are working
women who need hassle free dinner with no planning and without the worry of buying groceries.
People in western counties are habitual of consuming packaged and frozen food which
consumes less time in cooking and are easy to use. The meal kits which is offered by the Green
Chef contains healthy, organic, vegetarian and balanced nutrients along with the recipe cards and
image to make the dinner more appealing and appetising.
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Appendix B
Cultural insight
Target audience of Sweden market are mostly working professional and students who live
independently and have less time to plan for a meal and prepare a food. The age group of these
people are between 18-45, who prefer to consume healthy and vegan food because of the healthy
and balanced nutrients these food product contains. However, people in western culture
consumer packaged food which can be prepared instant with less time, money, efforts and
wastage of resources.
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