Strategic Marketing for Iceland Foods LTD to Enter Germany Market with Organic Fresh Veggies and Fruits Meals

This report discusses the benefits of strategic marketing for Iceland Foods LTD to enter Germany market with organic fresh veggies and fruits meals. It includes PESTLE analysis, market-entry options, market segmentation, and Porter's generic strategy.

STRATEGIC
MARKETING

EXECUTIVE SUMMARY
Strategic marketing defined as a process which are utilised by company to differentiate
ourself from rivals to stay in competition along with focusing on strengths to offer services and
values to the customers. This report is highly effective to understood the benefits of strategic
marketing within organisation sustainability and profit generation. This report are based on
Iceland Foods LTD that are leading private retailing industry deals in frozen foods and groceries.
Now they want to expand their business in Germany with new products i.e. organic fresh veggies
and fruits meals such as vegan pulp drink, fresh sandwiches that are not frozen etc. as they were
highly healthy and effective for people who consume it. To effectively operate in new country
with product Iceland Foods emphasis on analysing macro environment by using pestle and focus
on chosen best market entry options. Further it demonstrate porter's generic strategy to gain
competitive advantage at marketplace.
Table of Contents

EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................3
PESTLE ANALYSIS..................................................................................................................3
MARKET-ENTRY OPTIONS...................................................................................................5
MARKET SEGMENTATION...................................................................................................7
PORTER'S GENERIC STRATEGY..........................................................................................8
CONCLUSION .............................................................................................................................10
Recommendation...........................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic marketing refers to a way where organisation effectively emphasis on
differentiate their products from the competitors by strengthen their capitalising to provide better
customer experience other than rivals companies. It is a game plan which is used to reach the
prospective consumers for turn them into customers of their offerings. This mainly evolve
around the values of companies and proposition (Beirman, 2020). This report is based on the
Iceland Foods, UK where manager hire a consultant working in Ashanti marketing solutions who
provide best solutions to operate in a new country so that firm generate high profitable results at
marketplace. Iceland Foods UK is a British supermarket chain who mainly sales frozen foods
along with prepared meals and vegetables (Abubakar, Abdullahi, and Ibrahim, 2021). Now
they want to operate their business in Germany with the organic fresh veggies and fruits meals.
This report elucidates the several aspects that involves the analysis of macro environment using
PESTLE analysis along with opportunities and threats that Iceland Foods would face while enter
into the Germany. Further it demonstrate the three modes of market entry so that best one is
selected out from the number of alternatives that are highly beneficial for organisation. It also
involves the STP model so that Iceland Foods effectively targets the market to generate number
of profitable results prominently and effectively. At last it demonstrate the analysis of porter's
generic strategy that is used to gain competitive advantage at marketplace where manager
recommend the one strategy to target the market by attracting the number of customers.
Aim of this report
This report elucidates the several aspects that involves the analysis of macro environment using
PESTLE analysis along with opportunities and threats that Iceland Foods would face while enter
into the Germany.
PESTLE ANALYSIS
It is a kind of management tool that is used to analyse the market environment which
affects companies profitability and sustainability (Adomako, and et.al., 2021). In terms of
Iceland Foods, manager need to assess pestle factors to enter into Germany with their new
products (organic fresh veggies and fruits meal). As these factors are useful to examine

opportunities and threats for business enterprise so that they properly enter into new country with
new products. The factors of PESTLE analysis in terms of Iceland foods are presented below:
 Political factor- Germany is a country i.e. known for democratic republic. Therefore it
also maintain good alliance with France and represent as most powerful country in EU. In
context of Iceland Foods, a retailing supermarket company deals in frozen foods and
groceries emphasis on operate their business in Germany. Hence this factor contains both
threats and opportunities for company (Sahaf, 2019). As Germany is democratic republic
and having a strong country where government support foreign companies to operate
their businesses creates an opportunities for Iceland foods to operate their business with
organic veggies and fruits meals (Bagheri, Eslami, and Ghaderi, 2021). But at the same
time due to separation of UK from EU creates threats for firm in terms of operate
business without any taxes and import duties.
 Economical factor- Germany is a country which is 4th largest economy in world. It is a
low unemployment rate market where buying power of customers is also very effective
(PESTEL analysis of Germany (Germany country profile), 2017). In context of Iceland
Foods, this factor creates an opportunities in terms of generating more profitable results
because spending power of Germany people is very good and they spend their money on
their health by purchase organic fresh fruit and veggies meals. At the same time company
also face threats they pay a tax charge to local municipalities that impact the firm
profitability in negative manner because due to this their profit margin is limited.
 Social factor- It is a well known country to live in terms of health, education, wealth,
quality of life etc. Germany is termed as most populated country in Europe and describe
as multicultural country where people forms variety of lifestyles. This represent as an
opportunity for Iceland Foods because people of Germany highly down towards the use
of organic products due to which these new offerings of Iceland foods helps them to
generate more profits by attracting number of customers (Carlini, and et.al., 2021). This
helps organisation to develops products that satisfies diverse customers within Germany.
 Technological factor- Germany is a technology advanced country where high usage of
updated technology are recently taken place that are highly necessary for business
organisation to taken into consideration while operating business in the nation. For

Iceland Foods, there are numerous advancement taken place such as artificial
intelligence, robotics and automation that is used to present high growth opportunities
within Germany in their distribution process of new products i.e. organic fresh veggies
and fruits meals to the customers. Hence due to this they generate more profitable results
within marketplace.
 Legal factor- It is prominent factor on which business enterprises focuses on. It represent
legal landscape of country (Cheah, and et.al., 2021). As government of Germany
promotes every establishments of every types of business whether they are foreign
companies or home companies. In context of Iceland Foods, this creates an opportunities
because they get support from German government in order to operate business
effectively without any extra legal formalities. In this company also ensures that they
follow employees welfare laws such as equality act, safety and security act etc. so that
they are also satisfied with working and this will generate more profitable results to
business enterprise. If Iceland Foods does not follow rules and regulations that it would
create threat for company in terms of limiting productivity and sales within new market.
 Environmental factor- There are number of environmental aspects which impact
functioning of business. Germany is a country that is highly focused on adopting
environmental practices which does not harm environment (Cartwright, Liu and Raddats,
2021). In context of Iceland Foods, they adopts all environmental practice law in terms
of serving organic products to customers and avoid using plastic packaging of products.
This create an opportunities in terms of attracting large customer base and profitability
(Geleilate, Parente, and Talay, 2021). On the other hand if Iceland Foods does not
follow environmental practice law imposed by Germany government that they reduce
profitability and sustainability in Germany market that shows threats for business.
MARKET-ENTRY OPTIONS
There are variety of ways that is used by organisation to enter into foreign market. It is so
because there is no one way suitable to enter into every foreign market. Hence there are several
factors which influence the choice of chosen the market entry options such as degree of adaption,
marketing and transportation cost etc. therefore it is crucial to select the best alternative to
operate business in new country. In context of Iceland Foods, manager need to analyse various

options so that best one is to be chosen to enter into Germany market with organic fresh veggies
and fruits meals. Some options are presented below:
 Strategic alliance- It is an arrangement among two companies that reflects mutual
beneficial projects while everyone retains their independence. It is a kind of agreement
that is less complex and less binding than joint venture (Hansen and Juslin, 2018).
However, company enter into strategic alliance to expand into new market, gain
competitive advantage and improves the product line (Gilal, and et.al., 2021). Therefore
this method is used to allow two businesses to work on achieving common goals that are
beneficial for both the organisation. Strategic alliance help companies to develops more
effective process and also used to attain organic growth very frequently. This method of
market entry could be adopted by Iceland Foods to enter into Germany market with new
product i.e. Organic fresh veggies and fruits meals. In this method Iceland Foods work
with the transportation company so that they deliver their products effectively to
customers without any delays. It is beneficial also for transportation company because it
also develops their profit margin which is useful for company sustainability. But at the
same time using this method of market entry share trade secrets of companies who are
working together and it also create potential competitor within marketplace.
 Mergers and Acquisition- It defines as a general term that demonstrate consolidation of
business enterprises or assets by several financial transactions such as tenders, mergers
and acquisitions etc. merger occurs when two separate companies combine together to
create a new, joint organisation. Whereas acquisition is the term in which one firm
acquire other to gain profits (Thrassou, Vrontis and Bresciani, 2018). Hence merger and
acquisition occur to enhance company reach and maximise the market share and growth
that is used to create value for stakeholders (Hawkins, and Rome, 2021). In context of
Iceland Foods, if manager could adopt this strategy to enter into Germany with their new
product than they merger with another local companies present in Germany. It helps to
attract large base of customers and also enhance the growth of business in the long term
survival. This also effective because due to this Iceland Foods enjoys the tax benefits so
that profit margin is maintained and firm will sustained in market for longer time period.

 Foreign direct investment (FDIs)- It is an effective source of entry into the new market.
Foreign direct investments is a purchase of an interest in an organisation by a firm
located outside the boundaries of the home nations. It refers to that where company takes
control ownership in business entity within another country. It directly involved in day to
day activities in other nations (Abratt and Bendixen, 2018). In other word, Foreign direct
investment taken place when investor develop foreign business operations or emphasis on
acquiring foreign business assets in a foreign company. It is generally made within the
open economies that are highly growth prospect (Khalid, 2021). In terms of Iceland
Foods, if they choose this strategy to operate in Germany with new products such as
Organic fresh veggies and fruits meals than it takes control ownership in the Germany
and easily acquire business assets or controlling interest within foreign company.
From the above information on market entry methods it is critically evaluated that for
Iceland Foods, Strategic alliance is one of the best source for expanding business in the
Germany market with their new product organic range of Veggies and fruit meals. For selling
this kind of range of products in Germany, Iceland Foods need to ensure that they sell offerings
to customers on effective time period for this they need to alliance with transportation company
who delivers vegan range of vegetables and fruit meals to customers on time. It is highly
beneficial for company to build innovative solutions for customers due to which they
experienced good and valued the products (Liu, Zhao, and Wang, 2021). This helps company
to generate more profitable results within the Germany market with organic range of meals. By
using this method of entery into market they share their resources with the other company by
which they collaborate. It also complete the business objectives in prominent and appropriate
manner.
MARKET SEGMENTATION
Market segmentation defined as a practice of dividing the target market within
approachable groups. It is a type of research that helps organisation to determine in what manner
they segments its customers based on several characteristics such as behaviour, traits, age,
incomes etc. As these segments later used to optimise the products and advertise the different
base of customer (Dogu and Albayrak, 2018). Iceland Foods operate their business in Germany
market with new product i.e. organic fresh veggies and fruit meals. For this it is crucial to

segment the market so that they attract large base of potential customers and enjoy high growth
and profitability in business industry. In relation to that STP is presented below in Iceland Foods
context:
 Segmentation- It is an effective process that is highly useful for business enterprise to
group the potential buyers into segments according to the products so that companies
easily reach the market proficiently (Alao and et. al., 2020). In terms of Iceland Foods,
company need to segment the Germany market on the basis of demographic factor. In
this they includes income, age, occupation, educational level etc. according to this they
bifurcate the market for selling the organic fresh veggies and fruit meals so that business
enterprise enjoy long term sustainability along with high growth at marketplace (Murugi,
and Kariuki, 2021).
 Targeting- It is a kind of marketing strategy that include recognising particular personas
for the specific content. Business organisation use target marketing to learn more about
the consumers and create advertisements for the particular group of people to get the lots
of response regarding products which the firm offers. Iceland Foods offers organic fresh
veggies and fruit meals to customers where they targets the health conscious people who
are highly educated towards the use of vegan products over junk foods (Hanlon, 2019).
As they also targets the middle or high class people because the prices are competitive
base as there are number of competitors present in the market. As the company also deals
in new market with new products so that they focus on competitive price so that large
base of customers are attracted (Ngo, and et.al., 2021). This helps to attain more
profitable results at marketplace.
 Positioning- It defines where the product of company is stands in relation to other
offerings which are offered by competitors to their customers. As Iceland Foods deal in
new country due to this they targets their customers using social media tool as people of
Germany highly emphasis on using digital applications to being updated (Chernev,
2020).
PORTER'S GENERIC STRATEGY
Porter's generic model is very effective because it reflects the company relative position
within the business industry whether a business organisation profitability is below average or

above the industry average basis. In this fundamental basis of above average shows long term
sustainability in marketplace and vice-versa (Sangwa, 2021). This model elaborates in what
manner company offer their goods and services at marketplace in order to enjoy long term
competitive advantage for organisation in effective and efficient way (Khan, Freeman and Lee,
2020). Hence, porter's generic model includes several frameworks that are applied below on the
Iceland Food company:
 Cost leadership- As one of the best strategy for companies that is associated with cost
leadership. In this business organisation would be emphasis on competing within the
market by emphasis on cost factor to become a low cost producer in the business
industry. Hence it is very crucial for business enterprise in terms of overcome with the
condition of market that are current prevalent in nation. However this could offer Iceland
Foods the minimal advantage within the Germany market, that considered the fact that
when enterprise once start to lower their price of their products it impact competitive
edge (Chandra and Sharma, 2018). In context of Iceland Foods, who enter into Germany
market with organic fresh veggies and fruit meals delivers on low cost than due to this
company lost their competitive edge that affects customer base and their loyalty in
negative manner because they offer new products to customers (Z.J.H. and Siagian,
2021). In respect to execute the variations the leaders and managers with the business
plays an essential important role. It has been determined that in the respective
management both leaders and managers welcomes variations in an efficient way manner
and motivate the candidates employees to adapt changes suitably.
 Differentiation- It is another strategy in porter's generic model where firm produce new
and differentiate products to customers that would complete the desire of customers
present at marketplace. In this they use exclusive and unique nature goods to attracts
customers. In terms of Iceland Foods they could analyse and select dimensions which are
highly trendy and valued by people. The major benefits of using this strategy is to offer
products to customers on premium rates due to exclusivity present in same (Liebl, 2018).
However, in this company indulge in repeated analysis of market by determine gap at
market to produce differentiation offerings. Respective management is having an
effective brand goodwill due to its high qualitative goods and facilities and loyalty in the

consumer in the field of the area. Major weakness that the respective management faces
is due to fear for variations among candidates that somehow slower down the business for
the execution of tactics that are compared to other rivals.
 Focus strategy- This strategy reflects company to emphasis on gaining competitive
scope in business industry, as well as select the appropriate market where this strategy
would be subjected to it (Tarigan Tuah, Ahmad, and Abd Halim, 2021). This strategy
mainly divides into two category:
◦ Cost focus- In this strategy, organisation enjoy benefits within target segment using
cost.
◦ Differentiation cost- In this strategy, company emphasis on differentiation within
products to targets the customers.
Out of all these above strategies, Iceland Foods must choose differentiation strategy that
helps company to engage with new customers into new country. Because by using differentiation
they examine the needs and desire of customers timely so that customers get proper products in
short span of time (Adhikari, 2018). This could be done within the market of Germany to attract
lots of customers using promotion and effective market campaigns (Yutuc, Olazo and
Sarmiento, 2021). This strategy also help to grow the market competencies effectively and
efficiently and help to enjoy long term sustainability within new market with organic range of
meals that considers veggies and fruits.
CONCLUSION
From the above report it is concluded that strategic marketing is one of the prominent
term within business industry because it helps organisation to analyse market and differentiate
their products from competitors so that high profitable results are attained on time. This report
helps to understood the term strategic marketing within organisation. It also elucidates the
recommendation of country and new product that company sale to attract more customers in new
market. To effectively enter into the new country with new offerings business enterprise need to
examine pestle analysis and this report conduct this to deliver opportunities and threats so that
firm enjoy longer sustainability at marketplace. In this STP model is very useful to examine
target market so that more profitable results would be enjoyed by company. Therefore to gain

profits company need to choose best market entry option to enhance growth and development of
firm. In the end this report depicts porter's generic model that helps organisation to gain
competitive advantage in what manner they pursue in new market with full potential and growth
so that high sustainability would be enjoyed by them.
Recommendation
The term strategic management plays an essential role for the management by which they
can ensure more competitive progression form its competitors. In respect to accomplish
dominance in orientated field of market this procedure offers efficient guidance to the
management by which entity can sustain variation in the managerial environment and make sure
higher advancement and development. It is important for the management to determine diverse
factors with the support of several models and tools in respect to undertake suitable decisions.

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