Global Business Marketing: Market Selection, Entry Strategy, Competitive, Pricing, Promotion and Distribution Strategies

This report discusses the market selection, entry strategy, competitive, pricing, promotion and distribution strategies for Tasmanian Mountain Waters to expand their business in the United Kingdom.

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GLOBAL BUSINESS MARKETING
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1-25-2019

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Contents
Introduction......................................................................................................................................2
Market selection and entry strategy.................................................................................................3
Competitive strategy........................................................................................................................3
Pricing strategy................................................................................................................................4
Promotion strategy...........................................................................................................................5
Distribution strategy........................................................................................................................6
Recommendations............................................................................................................................6
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Introduction
This report will be based on the previous assignment, where the Tasmanian Mountain
Waters was willing to expand their business in the United Kingdom. The report included that
Tasmanian Mountain Waters ® Natural Spring Water is a stable source of natural magnesium,
calcium, phosphorous and other essential minerals with the best alternative pH 7.6-7.8 levels.
Spring water of this company exists in 5 liters and 10-liter casks. Furthermore, these 'bag-in-box'
would be feasible to store for a longer period and have a 5-year shelf life. Moreover, it was
evaluated that it is also suitable for bench-top dispensing while practiced in the kitchen. The 5
and 10-liter cask is ‘bag-in-box' goods that could be suitable for long-term storage of water.
It was evaluated that Tasmanian Mountain Water could penetrate into UK nation with the
product of Natural Spring Water after analyzing the external environment of United Kingdom.
The company has to develop various marketing strategies, this includes strategy related to the
mode of entry, selection of the market to target, price, promotion, and distribution related
strategy, which the company will adopt while entering the nation, which will be discussed in
detail further (Abdulraheem Sal, 2016)

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Market selection and entry strategy
The market that the company will be offering the product will be the United Nation as a
whole; every individual of the country will be offered the product. Moreover, major companies,
schools and colleges will be focused for market selection. The reason would be promoting the
education in nation, and providing quality product for students. For entering into the country, it is
important for the company to decide through which mode a company is suitable to enter. Every
mode of entry has their respective pros and cons, and the suitability of each mode is different.
Some of the modes of entry include licensing, direct export, franchising, joint venture,
outsourcing and many more (Craig & Douglas, 2015)
Mode of entry suitable for Tasmanian Mountain Waters is direct export, this is
recommended as the manufacturing of the product will be done in the home country and not the
host nation, and only the marketing of the product is to do in the host nation. Therefore, it is
found relevant to enter in the nation through direct export of the products.
The major advantages while entering into the market through direct export is that the
control of the product quality is purely in hands of the company top management. Therefore,
there is no chance of poor quality product reaching to the customers; moreover, like another
mode of entry, there are not many political issues involved.
Disadvantage for this mode is that the company has to create brand awareness and brand
image, as it is not entering with a goodwill, the company has to create its own goodwill, and has
to be depended for the marketing on the local people of the nation, who will be selling the
product (Cabral & Mathiason, 2015) (Choi & Park, 2016).
Competitive strategy
Competition is very high in such an industry, the reason being the low cost of switching
for the buyers. The packed water is something, which is not considered for major decision by the
company. Therefore for gaining a competitive advantage over the other brands of packed water
would be product availability, this is the product, which would be sold if available in bulk. The
product must be available in bulk in order to reach to the customers, and noticeable by the
customers. Moreover, another strategy would be product innovation; this could be through its

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packaging, sizes of packaging from smallest to the largest size to target a different set of
customers. (Misra, 2017).
Major competitors in this industry in the United Kingdom are Evian, Highland Spring
Water, Volvic, and Buxton Spring (statista, 2019). In order to sustain in the competition, the
company must provide the best quality product to the customers, with travel-friendly and best-
suited packaging (Mora, 2015)
Pricing strategy
Price plays a very important role while entering into any nation, especially with the
mineral water industry, where the competition is very high. The pricing strategy suitable for the
company considering the pricing strategy matrix is “Pricing Penetration strategy”
According to this strategy, the company would be providing the highest quality product at
a lower price than that of the competitors to attract maximum customers. Moreover, for retaining
in the market in future the company would adopt the competitive pricing strategy that is it is
going to consider any price change by its competitors as this could lead to decrease in market
share of the company (Robson & Zeriti, 2014)

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Figure 1: Pricing strategy matrix (Source: (mindtools, 2018)
Promotion strategy
Since the company is entering the new market, it is recommended to follow the extensive
promotional strategy, and promote the company through various promotional tool mix and make
the brand popular among the customers. Some of the tools recommended are
 Popular brand ambassador – in the UK the person associated with the brand is the major
factor to create the brand positioning. Some of the popular faces or Hollywood could be
promoting this brand to create the status perception to the customers (Stahl & Tung,
2015)
 Sponsorship – it is a tool where the companies sponsor some of the popular events of the
national level. This could be any stage show, award function, of a reality show in the
country to create brand awareness (Dickmann, Doherty, Mills, & Brewster, 2008).
 Publicity – this is being in the news and topic for discussion among the people, this is not
paid by the company. The price and product quality could be one of the reasons for the
publicity

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 Social marketing – this is one of the most popular ways to reach out to the customers and
promote the brand and create customer perception about the brand. This could be social
media platforms like Facebook and Instagram. Moreover, YouTube can be used for
promotion (Trivedi, 2016)
Distribution strategy
The way to reach to the final consumer the company must decide this well in advance before
entering into the market. The most suitable distribution strategy would be to reach out to the
customers through the following ways.
 Retail store – the product must be distributed to all the retail store, and departmental
stores for the sale of the product, and promotion of the product through displays. The
packaged water must be available to be sold. Therefore, the maximum retailers must be
used to get to the customers. Therefore, it can be said that the intermediaries in the supply
chain would be more in numbers (Gay, 2016)
 E-commerce service – in today's world, the service without the online availability of any
product even the packaged water would be incomplete without e-commerce. Although,
this is would only be available in case of bulk order. Therefore, the company must reach
the customers through online and make the goods available to the doorstep of the
customers. The reason being, most of the companies are available to customers online
(Skudiene, Auruskeviciene, & Sukeviciute, 2015)
Recommendations
 Early promotions – since most of the people have not listened to the name of the brand,
therefore it is important for the company to create the brand awareness in the places
where the customer is about to open. The promotions must be started well before entering
into the nation. This could include opening soon promotional hoardings and
advertisement
 Target events and higher budget weddings – since some of the events in the nation are
wedding, receptions, and meetings, conferences, which must be targeted to increase the
sales of the company. Individuals must also be targeted, but it would not be as higher

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profits gaining that than with bulky customers that is through events (Anute &
Deshmukh, 2015)
 Target large corporations – the large corporations of the company and various brands
must be targeted to provide the water from Tasmanian Mountain Waters for their
employees, other stakeholders. This will be helpful for the company to gain maximum
advantage (Chan & Khodakarami, 2014)
 Target hotels – the use of water is maximum in case of the hotel industry, therefore it is
recommended to the company to target hotel to increase the sales of the company
(tasmanianmountainwaters, 2019)

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Conclusion
To conclude the report, it can be said that the report was based on the previous
assignment of Tasmanian Mountain Waters that was willing to expand in the United Kingdom.
For this, the mode of entry to the market suitable for the company was direct exporting. The
reason being the company will be manufacturing the product in the home country, for which it is
popular. Moreover, considering the competitive strategy, the recommended strategy would be
product availability, and product differentiation through its packaging, quality, and sizes of the
product.
The recommended pricing strategy would be a penetration pricing strategy, and
competitive pricing strategy, this is due to higher competition in the industry. Promotion is very
important while entering into a new market to create brand awareness and brand positioning. To
reach out to the customer, the distribution strategy has to be created. The company is
recommended to reach out through the various retail stores, and e-commerce.

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Chan, Y., & Khodakarami, F. (2014). Exploring the role of customer relationship management
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Choi, D., & Park, D. (2016). Innovative service concept generation based on integrated
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Stahl, G., & Tung, R. (2015). Towards a more balanced treatment of culture in international
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statista. (2019). leading-brands-of-bottled-mineral-water-in-the-uk. Retrieved from statista:
https://www.statista.com/statistics/308644/leading-brands-of-bottled-mineral-water-in-
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tasmanianmountainwaters. (2019). about us. Retrieved from tasmanianmountainwaters:
http://www.tasmanianmountainwaters.com.au/phone/index.html
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