Global Marketing and Sales Development Report for Airdri Ltd, Iceland

This report examines Airdri Ltd's global marketing and sales development strategy, specifically focusing on the potential expansion of their hand dryer product into the Icelandic market. The report begins with an introduction to global marketing and the company, followed by a PESTLE analysis of Iceland's political, economic, social, technological, legal, and environmental factors. This analysis assesses the market conditions and opportunities for Airdri Ltd. The main body then delves into the company's overview, competitive landscape, and the opportunities present in Iceland for their hand dryer product, including advantages like low corporate tax rates, a skilled workforce, and free trade agreements. The report then outlines a global marketing strategy, including market analysis and the application of Porter's Five Forces model to assess the competitive landscape. The conclusion summarizes the findings and recommendations for Airdri Ltd's successful expansion into Iceland. The report highlights the importance of understanding the local market and adapting strategies to achieve sales development and business growth.

GLOBAL MARKETING AND
SALES DEVELOPMENT

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAINBODY....................................................................................................................................3
PESTLE analysis.........................................................................................................................3
Global marketing strategy...........................................................................................................6
CONCLUSION ...............................................................................................................................9
REFERENCE.................................................................................................................................11

INTRODUCTION
The term global marketing refers to an organisation which markets or promotes their
products at international level with the aim of expansion of company and the sales development
refers to enhancement in sales with the help of expansion of product. International marketing is
an application of marking principles in more than one country across national borders (Jahanmir
and Cavadas, 2018). The present report is based on a SME product (hand drier) of UK based
company “Airdri Ltd.”. This company was founded by peter Philipps and Peter Allen in year
1974. Following report carries out a discussion about expansion of product in Iceland and for this
a PESTLE analysis and marketing strategies is carried out for the successful expansion of
product.
MAIN BODY
Overview of company:
Airdri ltd is a small organisation and was founded in Oxfordshire, UK in 1974 by the
partners Peter Philipps & Peter Allen. Both are experienced and entrepreneurial engineers.
During the times of significant advancement in hand drying industry they both determines the
gap in market for highly reliable, energy efficient and beautifully designed hand drier which suits
every washroom. Over the time, Aridri group has evolved and overcome that gap. Now they
wants to enlarge their business at new location of Iceland with an innovative product i.e. hand
drier with air sanitizer. For this they need to analyse the market condition. With the help of some
tool it can be and these are as follow:
PESTLE analysis
It is a frameworks that is used by entities of company for carrying out operation
smoothly. Since it includes all external factors that have the power to affect the operations of the
company either when a company wants to expand its business or product. It gives individuals a
professional insight into external factors that may impact on organization (Tata, 2020). This
analysis is flexible in nature and because of this the company needs to use it in a rage of different
scenarios. As well as the senior managers of company will use the result while making strategic
of marketing decision. In context of SME hand drier product of Airdri Ltd. A pestle analysis is
conducted for the expansion of product at Iceland market.

Political- Political factors is all about at what level a government intervenes in the
economy. This includes government policies, political stability, foreign trade policies, tax policy,
environmental laws, labour laws, trade restrictions, etc. So all these are considered as political
factors which can affect the operations of company. This requires the company to estimate
current and future strategies as well as adjust its marketing policies accordingly (Burström,
Wilson and Wincent, 2020). The political stability of Iceland is very stable and it offers an
income tax of 20 % to corporation which is very low in Europe. Also Iceland offers a strategic
locations half way between Europe and North America. So with the low structure of tax it offers
a great opportunity to company for expanding their business at new location for their
international operations. In relevance to this, the chosen firm which to expand its business at
Iceland and by addressing all political factors in effective manner, they will able to get success
and development in expansion. Additionally, the tax system of Iceland is very simple and
effective due to this the level of competition is increased and attracts more number of foreign
investors.
Economical – Economic factors is related with the demand, supply, unemployment,
exchange rate, inflation rate, interest rate and economic growth etc. this puts a significant impact
on how a company does business and makes profits. In relevance to Airdri, they wish to expand
its business at Iceland for hand drier, by considering all factors of Iceland related with the
economy of nation, they could successfully run their business. It also gives an opportunity to
consumers who are unemployed as this nation maintains a highly educated level and skilled
person which helps the company to launch more innovative and creative products in the market.
As from report it has been analysed that unemployment rate has risen in 2019 passing to 3.6%
from 2.7 % due to the pandemic situations. So this company can show their contribution by
expanding its business at Iceland (Indaryani and et.al., 2020). The GDP of Iceland is about 20.80
billion USD which encourage business to expand by purchasing more equipments and hire
additional employees. Banks of that nation are also highly seeks to make loans in strong
economy as they see less risk that a business will fail and default on its debt.
Social- This is also known as socio culture factors. In which it includes all such areas
which shared common beliefs and attitudes of public. In which the facts that it includes are
population growth, age distributions, health consciousness, career attitudes and many more. All
these factors are directly linked with the particular interest of an individual like how a company

understand their consumers about their preferences and trends. Airdri company deals with the
product of hand driers in which they targets all those individuals which uses hand driers at home,
office, malls etc. Now it is the responsibility of manger of chosen firm to introduce some
innovative product which are made up of according to the requirement of consumers. In which
the most trendy and preferable requirement of consumer now a days are hand drier with sanitizer
(Bocconcelli and et.al., 2018). So by introducing this they will able to get success in expansion
of product at Iceland nations. In current era consumers are more aware about what they want so
it become crucial fir firm to fulfil the demands of consumers in term of product quality and
consumer service. By launching such types of product they could able to operate their business
successfully at Iceland.
Technological –Advancement in technology is considered as the most effective and
enunciable factors that can puts huge impact on operation of company. This factors affects
marketing and the management in three different manner which can be either of producing good
& services by competitor, new ways of distributions of goods & services, as well as new way of
communication with target market. Innovative product that is offered by the Dyson group can
hamper the operation of Airdri. So with the help Dyson group, Airdri can run their operation. For
instance they can carry out joint venture with them for taking entry at Iceland. As well as by
adopting new technologies such as high speed automation hand drier with air sanitizer, reliable,
stainless steel automated high speed commercial hand drier are some example of advanced hand
drier. In which they need to launch that product which need to be cheaper in cost without
minimizing the quality, reliable, durable, better for environment, hygienic and so on. All these
characteristics assist company to operate their function in effective manner.
Legal – This factors includes all laws which are related with the health & safety, equal
opportunity, advertising standards, consumer rights, and laws product labelling and product
safety. From this it is important that firm need to know what is legal and what is not legal for the
successful executions of trade. In this situation, it become important for firm to follow all rules
and regulation of each nations for smooth running of operation. As each nations has its own set
of rules and regulations (Galli and Kaviani, 2017). In relevance to chosen firm, they are the
producers of hand drivers with various varieties along with this they manage their workforce too
in effective manner. Now they wants to expand its business in Iceland with the help of hand drier
with sanitizer. By considering all legislations company will able to operate their activities

successfully. For instance some of the laws of Iceland are confederation of labour law,
Tripartism law that is connected with the safety and health of labour. So these are the laws that
assist Airdri to implement strategies successfully.
Environmental – This factors become most important to consider while expansion of any
product and the reason of becoming important is scarcity of raw material, pollution targets,
sustainable and ethical working conditions, carbon footprints targets that is set by the
government. All these are only some issues that are faced by the marketers. Now a days
consumer is more demanding those product which are soured of ethically and sustainable. In
relevance to chosen firm, they wish to expands its business at Iceland and for they needs to
follows all guidance which the sustainability of nations (Ghenova, 2019). The product that they
will to expands is hand drier with sanitizer which needs an energy conservation product so it is
in favour of company along with nation so this product possess a string potential towards
successfulness and development.
So from this it has been analysed that it become fruitful and worthwhile for the chosen
firm to expand its product hand drier in Iceland as it possess various opportunity for business
unit such as it has a sufficient business environment, educated and innovative labour force, free
trade with china, low corporate tax policies, strategic locations, competitive government
incentives, quality of life, excellent infrastructure, a good regularities framework and traffic free
access and the last is competitive priced green energy so all these factors are in favour of
company for expansion of product. With this company will able to accomplish its goal of
expansion at Iceland successfully.
Global marketing strategy
For the expansion of product it is vital for the entities of company to formulate a plan that
is related with the global marketing and that are as follow:
Opportunities in the Iceland for chosen company is to capture huge market and explore
new location by launching innovative product that creates competition for the other players of
markets by expand its product or launching some innovative product at marketplace. As well as
for the enhancement of sales and profit margin of company by investing lesser amount is one of
the major opportunity of company at Iceland (Feng, Patel and Sivakumar, 2020). As the taxation
rate and corporate tax rate is very low compare to other parts of Europe company as well as
chances of free trade with the iceland is another opportunity for company. Additionally it holds

highly skilled employees in nation which aids company to offer innovative product to consumers
at marketplace and this will ultimately improve the success and development of company along
with good will. So all these are the opportunity in Iceland for hand drier product of Airdri.
Overview of company: Aridri is a SME corporation which deals in manufacturing of
hand drier. This company was founded in 1974 at Oxfordshire United Kingdom by business
partners Peter philipps and Peter Allen. Both of them are well experienced and entrepreneurial
engineers (Ayers, 2020). Due to this they are well success at marketplace by introducing variety
of products. At the time of significant advancement in hand drying industry and for this they
determines the gap in market where there is lack of highly reliable, energy efficient and
beautifully designed hand driers which suits all types of wash room. So by considering all factors
they launch their product at marketplace of UK. By doing this they achieve success along with
development of company. The below picture shows wide number of hand drier that are
manufactured by chosen firm.
Competitive landscape: It can be explained with the help of porters five forces model
which is used to understand whether the new product are potentially profitable or not. As well as
this can be used to identify the areas of strength in order to improve weakness and to avoid
mistakes. Five forces are as follows:
Supplier power: Power of supplier is higher for Small firm and the selected firm is also
a SME. The selected firm wants to expand its business at Iceland where that yet have reached so
they have not any supplier and due to this that power is higher.
Buyer power: Bargaining power of consumer is low at them are already introducing
their products at lower prices to competitors so they will not even try to negotiate with the price
of product. And with this they will able to increase its sales and profit margin of company.

Competitive rivalries: Competitive threat for this company will be high as it is small
firm and at Iceland the selected areas are the capital which already have a strong company which
produces hand dries and possess a strong brand image so in order to compete with this, selected
firm need to make some effective strategies before expansion of business so that they will able to
accomplish its goal of expansion (Mooij, 2019).
Threat of substitutions: Substitution of hand drier can be towel, paper and so on. People
are not preferring to use towel due to hygiene problem. So the threat of substitution is very less
for the selected company.
Threat of new entry: The selected firm is SME which can creates threats for other
competitors who are also manufacturing hand drier. But it is a small firm so because of this they
creates low threat to competitors. It can become competitors for Dyson.
Global marketing can be defined as a process of setting all marketing strategies of
company in order to adopt changes according to the conditions of other nations. Global
marketing is more than selling a product or service globally. This is a full process of planning,
creating, positioning and promoting a product at global market (Andersson, Axelsson and
Rosenqvist, 2018). On the other hand global marketing strategies are the important part of global
strategy.
Product- The chosen product of selected firm is hand drier which consist sanitizer also as
it become vital now a days after the pandemic situations. This is the most advanced virus and
bacteria control hand drier air sanitizer. This hand drier hold various characteristics such as it
the sound level of their hand drier are very low, consumes only 200 watt units and the relatability
along with durability is excellent. So all these are the facts that their hand drier possess and due
to which they will be able to get huge success at marketplace of Iceland by creating competitions
to other players of market. As well as all these features will aids company to successfully enter
into market.
Pricing decision- It refers to planning of strategies related with the price of product that a
company wish to expand its in Iceland market. In which there are four types of pricing strategies
i.e. premium, skimming, economy and the penetrations. Here, the selected firm is small, they
wish to penetrate at Iceland market by launching a hand drier product so for them penetration
strategies is better and most effective for attracting buyers by offering lower prices on goods and
services than competitors (Cook, 2020. For example if the competitors sell its product for $ 200

then the selected firm need to sell its product for $ 195, even if they are going to loss on sale
because initially the main purpose of company is to create brand awareness and loyalty about
product at marketplace by this they will able to lead for long term contract.
Effective promotional activities- Promotional activities refers to all creation of brand
awareness at marketplace in order to grab or attract large number of peoples towards their
services or product. In which there are various number of promotional activities available for the
chosen firm for creating brand awareness at marketplace. Social media, mail order marketing,
product giveaways & samples, point of sale promotion and camping, consumers referral
incentives are the promotional activities that can be used by small firm for carrying out
promotion (Phelan, 2019). The selected firm is also a SME and that wish to launch its product of
hand drier air sanitizer for this the best and effective mode of promotion can be social media
marketing. As the investment in this is lower and the consumer will able to buy product at online
mode too by getting awareness about product with its unique features. As they enter into market
with joint venture mode, so the market policies will be same as their partners of joint ventures.
Apart from this, if they wish to use different then the product differentiation policies is the best
for them. Like launching product which provides innovation of hand drier with air sanitizer.
Direct selling is the best distribution for them as this is a SME company.
Market presence- In order to launch product at marketplace it is important for company
to launch that product at specific area and for selected product of Aridri company could be
Reykjavik, which is the capital of Iceland, Havammstangi and Akureyri are the place where
Aridri company can expands its business at Iceland with the help of hand drier product company
will able to make its present at all these places. All these places are having a huge number of
firm and selected firm have to create competition for them by devising strategies that makes
competitors edge for other players of market. Like they are using penetration pricing strategy
which can become useful for them as well as they are using social media advertisement
promotional activity that creates competition for other company and offers them opportunity to
attract more peoples towards their services (Kotabe and Helsen, 2020).
Distributions choices- Manufacturer creates a distributions path or channels in order to
get the product out of factory on to physical location by putting price tag on that and then that is
ready to reach consumer. It is not only influence the price of product but also it affects marketing
decisions. This gives a unique position at marketplace. In relevance to the distribution channel is

decided on the basis of price of product such as middle ranged product are shipped to mass
merchandisers and the high end product will offered to specialized stores with distributors. In
context of selected firm they possess three options of distribution of products that can be direct
selling, with the help of broker & distributors, by using wholesalers or retailers. All these are
decided on the basis of skill, reachability, consumers, and control along with advantage (Mac
and Evangelista, 2016). In which the best and suitable distribution channel for selected product
can be direct selling. As it is a small firm and if they involve and other distributors required huge
amount of investment and cost so direct selling could be the best and suitable options for them.
Key challenges to global expansion for SME-
One of the biggest challenges that may be face by any organisation while global
expansion can be the local competitions. For instance the Dyson which is also a manufacture of
hand drier present in Iceland so for Airdri company it become vital to make effective strategies
before expansion. Additionally, to find out right partner for building relationship with local
business is also another challenges that face by SME company during expansion of business
(Tata, 2020). Further, lack of reliable information could be acts as challenging factor for SME in
global expansion along with shortage of capital.
Entry mode: There are number of methods in order to tap and entre into new market such as
franchising, joint venture, licencing, partnership etc. according to current situation joint venture
would be the best and viable entry mode for Aridri. As they can joint their venture with that firm
which has well known brand image at marketplace of Iceland in similar industry. Through this
the chances of failure will become less as compare to sole venture.
Objective of company: To gain successfully entry into new location of Iceland for increasing
sales and profit margin
Target market for Aridri are hotels, restaurants, airport, malls, railway station, commercial
building etc.
CONCLUSION
From the report discussed above it is analysed that by addressing all the factors affecting
business operations with effective global marketing strategies, the company will be able to
successfully expand its business globally. In context of this, the selected firm Aridri will succeed
in expanding the hand drier on Iceland by considering all the factors of the market along with
global marketing strategies As both are interrelated with each other like now a days consumers

are more preferring hand drier with air sanitizer feature and that will be launched by selected
company at Iceland for attaining success and growth at marketplace as well as gives them
strength to compete with competitive edge.

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