Spritzer: Strategic International Marketing for expanding in China

This assignment focuses on strategic international marketing applied by a company Spritzer. The paper highlights the market research done on China market and the effectiveness of strategic planning and execution.

Spritzer- Strategic International Marketing for expanding in China
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2Spritzer: Startegic International Management for expanding in China
ABSTRACT
The current assignment focuses on strategic international marketing applied by a company
Spritzer. The paper focuses on applying strategic international marketing campaign and
highlights the market research done on China market. The purpose of the report is to understand
the effectiveness of strategic planning and execution and how the companies achieve their long-
term goal. The paper depicts the international market for Spritzer in China and its associated
opportunities and threats.

3Spritzer: Startegic International Management for expanding in China
Table of Contents
Part-A...............................................................................................................................................5
Introduction......................................................................................................................................5
Background Analysis...................................................................................................................5
Company Overview.....................................................................................................................5
GLOBAL MARKETING CAMPAIGN IN SPRITZER.............................................................6
Standardized Advertising by Spritzer......................................................................................7
Marketing appeal and creative execution- Spritzer.................................................................7
Advertisement type for Spritzer...............................................................................................8
Public Relation Practices.........................................................................................................9
Mode of Entry..........................................................................................................................9
Comparison of Market Entry Strategy...................................................................................10
Market Entry Strategy............................................................................................................11
PART-B.....................................................................................................................................13
STRATEGIC MARKET RESEARCH......................................................................................13
Overview of China Bottled Market:......................................................................................13
Structure of the Operating Environment................................................................................13
Strategic Plans for Spritzer....................................................................................................13
Environmental Analysis.........................................................................................................14
Market Segmentation.............................................................................................................16

4Spritzer: Startegic International Management for expanding in China
International Marketing mix Framework...............................................................................17
Conclusion.....................................................................................................................................18
Reference.......................................................................................................................................19

5Spritzer: Startegic International Management for expanding in China
Part-A
Introduction
In the contemporary business world, the concept of international marketing is growing
very fast. The companies are trying to expand themselves globally by adapting various
approaches. It is evident that bottled water has been growing very fast in the past few years.
Spritzer is a well-known organization in Malaysia and at present aims at entering in the global
market especially in China. In China over 19 billion liters of sales are expected to surplus and it
is expected to reach 49 billion liters by 2020 (Child and Lu 2018). Therefore, China bottled
water industry is willing to help Spritzer to expand its global market share. The current report
aims at strategically examining all the relevant and possible international marketing prospects to
expand Spritzer globally in China market (Reiche et al. 2016).
Background Analysis
Company Overview
Spritzer is one of the well-known bottled water organization in Malaysia. It is
incorporated with five subsidiaries which are involved in the manufacturing and distribution of
natural mineral water, distilled drinking water, carbonated fruit flavored water, packaging bottles
and so on. The company is well- recognized for obtaining certification by NSF International.
Spritzer aims at expanding its business in the global market share by considering the overall
increasing growth since, 2007 (Child and Lu 2018). The net profit rose up to $31 million, and
consumer are spending over more than $ 100 billion every year on bottled water. Spritzer
revenue grew 10.78% in financial year 2018 ((Child and Lu 2018).

6Spritzer: Startegic International Management for expanding in China
GLOBAL MARKETING CAMPAIGN IN SPRITZER
The companies go globally for various reason, this may incorporate reasons such as
generating revenue, investment opportunities, competing for the new sales, reducing cost and
diversifying.
The company needs to implement strategic planning approach to their marketing
campaigns in the international market. The strategic plans helps to develop and implement
maneuvers in order to obtain a competitive advantage. An effective marketing campaign plan
must be realistic and clear and with sufficient details of the actions and tactics (Luiz 2016). The
concept of global branding intends to create stronger competitive edge for Spritzer. When the
company is assured competing locally or even with the nation, it aims at expanding globally
(Zentes, Schramm-Klein and Morschett 2015). The global marketing encourages the customers
to be aware and informed on the services or the products offered by the company.
The ways in which the global brand and global marketing campaigns benefits Spritzer in the
following ways:
The global marketing campaigning tools would allow the business to deliver messages to
the customers significantly in the global market (Haider et al., 2019). The tools include social
media post management tools, metrics tracker, split testing software and international call
forwarding solution. Spritzer can deliver messages to its customers and it is most constructive
approach in order to reach to the potential customers. The message can be famed as “Drink Fresh
Live Fresh”.

7Spritzer: Startegic International Management for expanding in China
Adapting this programs Spritzer can lower the risk of building an international campaign
which has already shown tremendous result in the domestic market. Therefore, it is the best way
in terms of cost and safety to develop as a global brand.
Spritzer has enrolled itself in utilizing the brand leadership approach, it enables the core elements
of the brand and reduce the cost of different campaigns for each and every local market.
Standardized Advertising by Spritzer
Spritzer needs to apply standardization in marketing campaign in order to become a
global player. Through localized advertisement Spritzer has already taken the local market,
hence in order to deliver effective message Spritzer needs to build a basic message globally.
Spritzer can tailor patter advertisement as well which represents as the mid-point for localized
and standardized advertisement (Smith 2018). In pattern advertising a standard basic message is
delivered with some modification to the individual market. Implementing standardization way of
advertising is quiet cost-saving, it creates a standardized advertisement in order to deal with the
customers by creating a common image across the world. Since, Spritzer is aiming at extending
its business in China the messages are better not to change for example: the KFC Slogan: “Finger
lickin’ good” it turned out to be as “Eat your fingers off”. Therefore, Spritzer may use a single
message world widely which would be authentic and customers will get attentive.
Marketing appeal and creative execution- Spritzer
The advertising appeal is related to the organization or the individual’s buying motive.
The motives can be emotional or rational the popular brands try to connect with the customers
emotionally as opposed to intellect (Sethna, Jones and Harrigan 2013). On the other hand the
business to business advertising is concerned more with the rational nature of the corporate
purchasing nation. The technique of advertising appeal will be beneficial for Spritzer as this

8Spritzer: Startegic International Management for expanding in China
would influence the way the consumer put themselves and how buying Spritzer product would
benefit them. China is going through water crisis, around 80% of water in the southern China is
suffering from acute water scarcity.
The creative execution refers to how the message must be presented. Since, Spritzer can
connect with the customers emotionally like showing the water pollution hazards or the scarcity
of water. This things will connect the organization and the customers emotionally. It is also
evident that the water of China is highly polluted due to the chemical dumping from the
factories. At this point Spritzer provides pure drinking bottled water, this is the main prospect
where the customers find themselves in a place where they are benefited (Boso et al. 2018).
The ads which use emotional appeal such as
Self-esteem: L’Oreal “Because I’m worth it”
Peace of Mind: Allstate “Are you in good hands”
Anxiety and Fear: World Health Organization “Smoking kills”
In case of rational appeal the advertisement such as toothpaste claims that “nine out of
ten dentist recommend this brand or for example: for cars they claim that “highest safety award
for the third in a row”. Likewise the Spritzer can use emotional appeal by using “Drink Fresh and
Live Fresh”.
Advertisement type for Spritzer
Different countries adapt different media and they vary widely. The media vehicle gets
distinct role with reference to government regulations and this can limit or prohibit the type of
advertising. For example: China basically focuses on four types of advertising media such as

9Spritzer: Startegic International Management for expanding in China
television, broadcast radio, magazines and newspapers. China government owns the broadcasting
companies, even if there is availability of broadcast media, it is observed that broadcast
advertising is frequently restricted by the government. This limitation is avoided through
privatization of industries and favorable climate is created for advertising. The rapid diffusion of
small satellites dishes and growth of these global satellites broadcasting also means advanced
prospects for television advertising and global ads as well.
Public Relation Practices
The concept of public relation is improving and recognized world widely. It is basically
the practice of managing the spreading of information and beliefs between the organization and
individual and the public. The public relation may include media production, media relation,
government relation, community relation, marketing communication and so on. The public
relation may vary in different parts of the world (Kotler et al. 2015). The public relation often
represents by press release. In order to build effective public relation in China, Spritzer need to
understand how to develop public relation strategy in China. China is among the few countries
where the newspaper trend has not faced any decline. Therefore newspaper is also an effective
media for Spritzer to create its brand recognition through advertisement. Though newspaper is
still a trend social media is also trending in China and the company may utilize the sources of
social media for brand advertisement. The public relation practitioner can develop and
implement innovative and creative communication channels for example dance, song to endure
this public relation strategy.

10Spritzer: Startegic International Management for expanding in China
Mode of Entry
The market entry mode is determined whether the company needs direct investment or
indirect investment. This also determines whether the company is seeking marketing activities or
aiming at marketing production as well.

11Spritzer: Startegic International Management for expanding in China
Marketing only
Marketing and
Production
Comparison of Market Entry Strategy
The type of strategy will allow the company Spritzer to enter into the new market. The
two market entry strategy is direct market entry and indirect market entry strategy (Watson et al.
2018). The possible advantages and disadvantages of the China market entry strategy is
demonstrated below.
Export Management
companies
Catalog and Telephone Sales
Export trading companies
Casual Exporting
Foreign sales representative or
branch sales
Import house
Public trade agency
Wholesale and retail
purchasing group
Management contracts
Production contracts
Licensing Direct Foreign Investment
Joint Venture

12Spritzer: Startegic International Management for expanding in China
Market Entry Strategy
The possibilities of indirect entry for the company Spritzer
Casual Exporting: The possible advantages are low cost and avoiding international taxation.
This also involves low human resource involvement. The possible disadvantages are low control
about copywriting, time consuming and it also involves high transaction cost for example: The
Malaysian port to the shanghai port. It also facilitates less market control and low profit and
fosters negative brand image.
Export trading companies- The exporting trading companies are the trusted bodies and also
own control. It facilitates risk free product to the market. The possible disadvantages are high
companies entry market, it foster low brand image and low market share as well. The trading
companies handle different product line and are devoid of product title.
Licensing- It promotes the possibility of production and marketing and low capital risk is
observed. It also facilitates small capital resources and registered brand name. The possible
disadvantages are that the licensed companies can be the major competitor later and Chinese
government regulation are quiet strict (Vellas 2016). The licensed company has more control
over the product than the company itself. It possess different management style.
The possibilities of direct entry strategy for Spritzer:
Wholesale and retail purchasing: The advantages of this marketing entry strategy are avoiding
international taxation and the wholesaler carry fewer product line and low cost. The
disadvantages of this type of entry strategy are low market share, the rules and regulation of
Chinese government and possess different management style. It also includes double taxation.

13Spritzer: Startegic International Management for expanding in China
Joint Venture: Joint venture can be good source of entry as it is a trusted body owns good
control. It promotes risk free product to the market with good marketing and production. It
adopts existing market share and has good access to technology and resources. It promotes good
brand image and facilitates possible market growth. There is minimum level of risk and massive
leverages promoting high profit. Joint ventures create haring of resources and the leveraging of
non-utilized resources (Beamish and Zhang 2018). It exhibits low labor cost and area of
competence with good skills. The possible disadvantages are there will be high investments,
highest 49 percent share and it is difficult to host partner.
It is observed that from the above strategic analysis the joint venture is best suited for the
bottled water industry that will enhance the capital and profit. The control over the foreign
market and the level of risk is also increased. The joint venture is usually formed between the
foreign company and one of the host company therefore, adapting this marketing entry strategy
will help Spritzer to encourage and enjoy the present market share in China water bottle industry.
Wahaha is a bottle water company is China which could make good partnership with Spritzer.

14Spritzer: Startegic International Management for expanding in China
PART-B
STRATEGIC MARKET RESEARCH
Overview of China Bottled Market:
China is the third-largest consumer of bottled water. According to recent reports China’s
consumption of water is highly inefficient and almost consumes 15 times more, as China’s
unchecked economic growth, the country is facing serious water pollution issues and
significantly faces shortage of safe drinking water. Therefore, there is a high requirement of
water supply in the country and it is the best opportunity for Spritzer to expand in China.
Structure of the Operating Environment
There is a clear sign of long-term growth of for water industry which is estimated to be
$400 billion, more specifically in China. Since the county drove the market focusing on
improving many regions of water issues such as contamination and shortage from pollution
which is leveraged through economic growth rate. The government of China plans of investing
$125 billion on water treatment and also taking major steps like opening entries for foreign
investments and participation in the water industry.
Strategic Plans for Spritzer
The international strategic planning models is basically an effective approach in which
the organization clarifies its vision and mission for the organization. The strategic planning
models are highly important for the organization in order to achieve long-term success. The
international strategic planning evaluates the external and external environment in order to make
appropriate decisions. This models include PESTLE, SWOT and the overall environmental
analysis for business. In order to enter into international market, the business needs to take
proper steps and follow basic approach so as to survive in the market.

15Spritzer: Startegic International Management for expanding in China
Environmental Analysis
Considering the demand of bottled water consumption, Spitzer is aiming at expanding in
China. The external environment puts a great impact on all the industries. In order to analyze the
external environment the company needs to focus use PESTLE framework so as to understand
the strategic challenges.
PESTLE Framework
PESTLE, helps to identify the potential factors that might affect the entry of Spritzer and
may influence the organization supply and demand levels as well its cost. While considering the
concept of international market the new concept of PESTLE, is “LoNGPESTLE” which is
illustrated below:
Factors Local National Global
Political There is clear
provision for services
by the local council
The china
government policy in
on subsidies
Good scope for
outside investors
according to world
trade agreement.
Economic Leveraged local
income
Interest rates Oversea economic
growth
Social High population
growth
Demographic
changes
Good flow of
migration
Technological High technological
advances
Recognized in
national world for
technological
advances
High breakthrough in
technology
Environmental Some local waste
issues
Weather of china Global climate
changes
Legal Licensing and
planning permission
Civil law of china International
agreement on
environmental policy
and human rights.
Political and Legal Factors:

16Spritzer: Startegic International Management for expanding in China
The political factors has a great influence on the companies such as the rules and
regulation regarding the trading agreements and regulations of the economy and political
stability. China has evolved itself to a more open market, and social freedom for its citizens. The
China administration has also encouraged transparency and openness, due to the subsequent
economic development and growth. The policies of the government is favorable for foreign trade
and business life.
Economic Factors:
China has exceptional growth rate and hence inducing large population staring with new
business especially when the company is concerned with water consumption. The economic
growth has also induced increased purchasing power of the consumers. The bottled water
industry would show tremendous growth of Spritzer in China.
Social and Cultural Factor:
The socio-cultural factor represents the social aspects such as age distribution and
population growth rate on the other hand the cultural aspects that is the value, beliefs and
traditions of people. The company may face issue with these factors as the people of China
hardly adapt new or outside products. China possess the highest growth rate that is over 1.3
billion people, people are purchasing branded items despite of new product in the market of
Spritzer, it is a good opportunity for Spritzer to grab the attention of such huge population. China
is a collective culture which is based on Geert Hofstede’s value dimensions.

17Spritzer: Startegic International Management for expanding in China
Technological Factor:
There is no doubt that China is the leading country in technological advances but on the
other hand due to the development of B2C industry it does not have a stable and safe online
payment system. Regardless of this particular issue, the company will be assisted with various
technological advances which will be beneficial for the company.
Market Segmentation
The concept of market segmenting tool will the company Spritzer to determine or plan
for the most likely market in China. Effective segmentation would allow the company to grab the
attention and retain the potential customer from the market. The bottle water industry segments
two potential stakeholders the industrial market and the consumer market. The two segments
have been segregated in different factors. The market segmentation of bottle water market in
china is demonstrated below:
Factors Industrial Market Consumer Market
Demographic factors Chemical industry
Food industry
Small enterprise
It will take time for large
enterprise
All ages
All income types as the prize
varies
For all lifestyle
Purchase situation With reference to application
The importance of purchase
Volume
Choices criteria
Distribution channel
The frequency of purchase
Brand loyalty
Purchasing power and
behavior
Choice criteria
Size of purchase
Preferences for product
characteristics
Service requirement
Quality
Customized bottled water
Assistance from the suppliers
Performance requirement
Brand performance
Quality
Desired feature
Brand performance
Price performance
Product similarity

18Spritzer: Startegic International Management for expanding in China
International Marketing mix Framework
Product Strategy- The uniqueness in spritzer product is that it delivers customized water bottle
which is new for subcontinent. It mainly focuses on safety packaging, different flavor and
different size.
Prize Strategy- The price of the product differs from one country to another due to the
associated cost such as tariffs and other economic conditions. The price is set to penetration
pricing strategy.
Promotional Strategy- In order to grab the attention of the target market the following
promotional activities would be beneficial.
Awareness program, sponsoring annual program in “Leshan Teacher college” famous colleges in
China.
People Strategy- The most important part of the organization is people therefore, the company
might recruit some employee from China and as it is stepping into big market the employees
must be benefited and treated fairly in the organization.

19Spritzer: Startegic International Management for expanding in China
Conclusion
It can be deferred from the above strategic analysis that bottled water industry is taking a
wide toll in these sectors. Spritzer has good opportunity in expanding its business in China. After
deep analysis of international external environment and global marketing campaign China has
attractive market for foreign investor in bottled water industry. However, there can be minor
issues with the international financial crisis and laws which can put minute influence on Spritzer,
but the company has got all the strategic alliances in order to cope with the situation. Therefore,
the strategic market research is tremendously useful in establishing international marketing.

20Spritzer: Startegic International Management for expanding in China
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