Report on International Marketing Mix Strategy for Amcor Limited

This report provides a comprehensive analysis of Amcor Limited's international marketing strategy, specifically focusing on its entry into the Mexican market. The report begins with an executive summary and an overview of the marketing mix, including product strategy, pricing, distribution, and promotional mix. The product strategy section examines the product lifecycle, branding, packaging, labeling, quality, product mix, and augmented services. The pricing strategy delves into factors influencing pricing decisions, such as average income, GDP, tax regulations, currency exchange rates, competitor pricing, and costs. The report also addresses distribution channels, promotional strategies, and the importance of people (training and recruitment) in the marketing mix. An economic evaluation, implementation and control measures, a communication plan, and contingency plans are also included. Ultimately, the report concludes with strategic recommendations for Amcor Limited to achieve its business objectives within the Mexican market.

Running Head: INTERNATIONAL MARKETING 1
INTERNATIONAL MARKETING
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1. Executive Summary
The effective planning and implementation of the international marketing mix strategy can
help any business concern to have a sustainable performance in the global market platform.
This report has been modeled to highlight the international marketing mix model of Amcor
Limited that offers best packaging solutions to its clients and customers. The aim of this
report is to understand the marketing mix strategy including the product model, pricing
strategy, distribution channel and promotion model to have a sustainable performance in the
Mexican market. The most suitable pricing model for the business has been determined in the
chapter which would help the concern to have a strong and steady run in the international
market. Ultimately the recommend marketing mix strategy would enable the organization to
achieve its business objectives in the new market. The strategic recommendations that have
been designed encompass the business plan for the initial 12 months of the business
operations in the foreign land. The plans could be productively implemented by the business
organization to solidify its marketing mix mode and efficiently perform its international
marketing objective.

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Contents
1. Executive Summary............................................................................................................2
2. Summary.............................................................................................................................4
3. International Marketing – Marketing Mix..........................................................................4
3.2.1 Product strategy.............................................................................................................5
Product Lifecycle of Amcor Limited.................................................................................5
Branding.............................................................................................................................6
Packaging...........................................................................................................................6
Labeling..............................................................................................................................7
Quality................................................................................................................................7
Product Mix........................................................................................................................7
Segments............................................................................................................................7
Augmented Services...........................................................................................................7
3.2.2 Pricing Strategy.............................................................................................................7
3.2.3 Place............................................................................................................................10
3.2.4 Communication Promotional Mix...............................................................................11
3.2.5 People..........................................................................................................................12
Training............................................................................................................................12
Recruitment......................................................................................................................12
Occupational health and safety laws................................................................................13
4.0 Economic Evaluation.........................................................................................................13
4.1 Implementation and Control..........................................................................................14
4.2 Communication Plan......................................................................................................16
4.3 Monitoring of Action Plan.............................................................................................17
4.4 Contingency Plans..........................................................................................................19
5. Conclusion............................................................................................................................21
References................................................................................................................................21

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2. Summary
Before entering into a new market environment, it is crucial for all business undertakings to
assess the market environment so that they can strategize their marketing plan accordingly. In
the previous assignment, a thorough screening of the Mexico market had been carried out so
that the Amcor Limited concern could adopt key strategies to enter the foreign market. The
global marketing objectives had been laid down and the Mexican marketing environment had
been evaluated so that the business could effectively identify its strengths, weakness,
opportunities, and threats in the new business scenario (Akaka, Vargo & Lusch, 2013).
The high-standard quality of the packaging solutions of Amcor would facilitate its entry in
the international marketing scene. Since the commodities and offerings made by the
organization have the capability to attain an effective market image in the global platform,
the environmental elements in the foreign nation would be suitable for its growth and
expansion of business operations. The most suitable market entry model for Amcor Limited
would be licensing since it would allow the business to secure its intangible assets like
patents, techniques, etc. This official entry mode could be adopted by the packaging service
provider to enter the Mexican business environment (Andriopoulos & Slater, 2013).The
business would mainly target the participants that function in the manufacturing industry
because they are always on the lookout for best and most suitable packaging solution. Since
Amcor Limited provides unique packaging solutions to different kinds of industries, its
offerings’ characteristics would allow it to establish a unique brand image in Mexico
(Asugman & McCullough, 2015).
3. International Marketing – Marketing Mix
In the international marketing scene where many participants involve in marketing activities
and intensify the competition, it is vital for a new player to have a thorough and well-
designed marketing mix plan. Amcor Limited must focus on a combination of factors
including the products, their overall branding, packaging, labeling, quality, pricing model in
relation to Mexico’s average income and GDP trend, pricing strategy of the competitors,
associated costs, channels of distribution, promotional mode, etc. As per Bello, Katsikeas &
Robson, a clear marketing model has been highlighted in the below section for the business
concern so that it can implement the same in the Mexican market and strengthen its market
opposition in the international marketing environment (Bello, Katsikeas & Robson, 2013).

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3.2.1 Product strategy
According to Broyles, Schumann & Woodruff, the product strategy of Amcor Limited would
basically lay down the foundation for its marketing operations in the Mexico market scene.
Since it is the very starting point of the product lifecycle, it would allow the business to get a
clear picture of its current position in the market (Broyles, Schumann & Woodruff, 2015).
While designing the product strategy, the business would have to observe the strategic model
of its competitors and accordingly devise its product plan. Even though its current packaging
solution is popular and functional in the Australian market, it might have to alter it to a
certain degree to suit the needs of the Mexican clients and customers (Cateora, Gilly &
Graham, 2016).
Product Lifecycle of Amcor Limited
The product lifecycle describes the life of a commodity or product in the market with respect
to its costs and sales. Amcor Limited’s product lifecycle has been presented in the
diagrammatic form so that the readers can understand its current stage in the market setting.
As per Christodoulides, Cadogan & Veloutsou, a couple of images have been featured to
showcase its product lifecycle stage in its domestic market and in the international market
(Christodoulides, Cadogan & Veloutsou, 2015). Since the business came into existence in
2015, currently it is in the growth stage in the Australian market environment. This is the
period during which the products eventually gain acceptance in the market.In the Mexican
market environment, the stage of the business is different since it would be placed in the
introductory stage. Even though it is an established and reputed business in its homeland, it is
a new and foreign supplier in Mexico so it would obviously have to start its business
operations from the very scratch (Czinkota & Ronkainen, 2013).

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Figure 1: Current Position of Amcor Limited
Source: (Czinkota & Ronkainen, 2013)
Branding
The branding of the packaging solution would play a critical role in the product strategy. In
the initial stage, Amcor Limited would face hurdles to establish its brand name in the foreign
land but here its branding model would come into play. Since it offers unique and creative
packaging solutions to manufacturing concerns, in the limited time it could make a name for
itself in the international market (Darley, Luethge & Blankson, 2013).
Packaging
Amcor Limited is already known in the domestic market for its unique packaging model for
different kinds of goods starting from flexible to inflexible plastic packaging. So in the new
market, it would have to maintain its quality of packaging and model it as per the needs of the

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foreign customers. It could also assess the performance of the competitors in the industry so
that it could bring uniqueness to its solutions (Demangeot, Broderick & Craig, 2015).
Labeling
As per De Mooij, the labeling language and its content would be crucial for the business and
its customers since it would act as a crucial source of information about the supplier’s
offering. Amcor Limited would have to put all the necessary details about its product so that
the users would be aware of its high quality (De Mooij, 2015).
Quality
Amcor Limited is always known for the high-quality of its packaging solutions. Since it plans
to introduce the antimicrobial packaging product in the Mexico market it could highlight its
key features including its ability to act against different kinds of microorganisms like
bacteria, virus, etc. This superior feature would strengthen its product quality.
Product Mix
At the initial stage the business would only offer the antimicrobial packaging solutions that
would be of natural, semi-synthetic or synthetic origin. Different varieties of products would
be offered in the Mexican market including chemical resistant aluminum foil laminates,
laminations for alcohol pads, etc.
Segments
Since packaging solutions are required by all and sundry in the market, the various offered
product segments would meet the requirements and demands of the target population.
Augmented Services
In addition to the actual offering, the business would offer support services to its clients from
different industries so that the client business’ product quality could be maintained.
3.2.2 Pricing Strategy
The pricing strategy of any business is an important element of the marketing mix since it has
a direct impact on the profit earning capacity of the business firm. The basic objective of
Amcor Limited would be to set alow price of the antimicrobial packaging products at the
initial stage so that it could be easily affordable by the middle-class section of the Mexican
population (Di Maria & Ganau, 2014). Thus after assessing the Mexican business
environment, it has been ascertained that the penetrating pricing model would be most
effective for the undertaking. It would act as a solid tool in the hands of the marketer to lure

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customers away from its competitors (Ford & Leonidou, 2013).A number of factors that
would have an impact on the concern’s pricing model havebeen highlighted below:
Average Income – The average income of the people would play a vital role while selecting
the pricing strategy. Even though the nation has made significant progress in development
aspect, there exists a large gap between the rich and the poor sections of the population. Since
as per available data, the average household net-adjusted disposable income per capita in
Mexico is $ 12,806, which is less than the OECD average, the penetration pricing model has
been selected for the business (Garry & Hall, 2015).
GDP – The GDP figure of Mexico is about 1.69 percent of the entire world economy. The
nation’s economy exhibits stability but there exists a high level of economic disparity
between the extremely rich population and extremely poor population. As per Gnizy &
Shoham, the current GDP trend does not seem very bright since it has been declining (Gnizy
& Shoham, 2014). Thus in the increased external competitive environment, the nation would
be a smart choice to conduct business in.
Tax – The Mexican Income Tax law contains specific rules and regulations that govern the
business environment. In the taxation front, the business would face a number of challenges
in form of customs regulations, standard products, and laws concerning labors add to the
complexity of the business environment. Since the current tariff rate has become favorable
for new businesses, Amcor Limited could expand its operations in the foreign nation
(Hoppner & Griffith, 2015).
Currency Exchange Rate – The value of a single Australian dollar is equivalent to 14.39
Mexican Peso so Amcor Limited would not have to bother about the currency exchange rate
much while initiating its business operations in the nation (Fletcher & Crawford, 2013).
Average Competitor’s Price – The thorough analysis of the competitor’s price strategy is a
must since this process would help the concern to fix the prices of its offerings in the
Mexican market. In the current times, the packaging industry has a large number of players
and it is very challenging for a foreign company to establish its business is a new nation
(Katsikeas, 2014).

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Costs:Amcor Limited would need to have a strong control over its various costs since these
elements would have a vital impact on its profits and revenue. The costs associated with
production, distribution, labor, material, etc have been highlighted in this section so that it
could adopt the most effective pricing model in Mexico (Kaufmann, Czinkota & Zakrzewski,
2015).
In the production stage, a majority of the cost would be incurred to strengthen the technical
model of production. Since it would be offering only the antimicrobial packaging products in
the Mexican market it would have to spend money on the self-venting model, foils, etc.
Similarly, adequate funds would have to be incurred to strengthen the distribution model of
the business in Mexico.Various kinds of costs such as handling costs, packing costs, freight
cost, etc would be involved at this stage of the business operation.The labor cost is a critical
element that would involve the expenses towards remuneration and wages of employees,
payroll taxes, etc.Amcor Limited would have to follow the labor cost patter as per the
Mexican market so that it would have access to quality labor factors.
The cost of material or inventory would constitute the biggest chunk of business cost since its
entire operations would depend on these raw materials (Keillor, 2015). It would have to
ensure to have a solid supply chain system so that the quality of its offerings could be
maintained in the Mexican market (Kraus, et al., 2016). The marketing cost is the total cost
incurred by the business to deliver the offerings to the end-user. Thus Amcor Limited would
have to carefully plan its spending so that best resources could be used to deliver quality
products and services to the customers. The most effective advertising tools would have to be
adopted by the business. In order to reduce its advertising costs, it could use social media
marketing to reach the market audience.
Similarly, Majarosaid that the packaging must be of high quality so that the differentiation
feature of its packaging solution can be reflected in it (Majaro, 2013). The insurance cost is a
necessity for businesses in the current times due to the presence of numerous uncertain
elements. It would have to insure its plant and factory in Mexico so that it could protect its
business in case of accidents, etc. While setting up the business, Amcor Limited would have
to spend necessary finance on the recruitment process so that it could employee the highly-
skilled and competent workers in the Mexican market. These recruitment costs would
basically include expenditure on logistic support, payment to recruitment agencies, recruiter
costs, etc. The purchase of stocksfrom the best dealer would be an influencing activity since

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it would have a vital impact on the cost model of the business (Malhotra, Wu & Whitelock,
2013). The access to high-quality suppliers of packaging goods in Mexico would help the
concern to strengthen its business operations.
3.2.3 Place
The place is an important element of the marketing mix model which has an impact on the
business and its performance in the market. Amcor Limited should make sure that its offering
is available to its target audience i.e. manufacturing concerns in Mexico. Since the
manufacturing industry has been undergoing a rapid growth in the nation, the Australian
business must try to position itself at the center of the manufacturing hub such as Nogales,
Mexicali, or Juarez. Since in these cities a large number of manufacturing concerns have been
built, the packaging firm could effectively focus on its audience (Okazaki & Taylor, 2013).
The business must also try to have an online presence. In the technical era, no business can
service without having a virtual presence in the market. So it must create an official website
and have a presence on social media sites so that the target audience from other locations can
know about their packaging solutions.As per Paliwoda & Thomas, the distribution intensity
would be the area where most of the manufacturing concerns would be operational in
Mexico. Since the business offers products that are needed by manufacturing firms, its
distribution intensity would focus on them (Paliwoda & Thomas, 2013). A number of
retailers would be spread in different parts of the nation where manufacturing concerns would
be established. This would ensure that the demand for the offerings would remain consistent.
Promotion Channels
The communicational promotional mix forms an integral part of the marketing mix without
which a business will fail to operate. The customers need to be aware of the offerings of the
business so that they can demand the product. Amcor Limited must use innovative forms of
promotion channels like advertising, sale promotion, PR, etc so that it can communicate its
message about its unique packaging solutions (Papadopoulos & Heslop, 2014). The image
below shows the different promotional channels that the business could use to expand its
business activities in Mexico. It could use traditional and modern models like television,
magazines, newspapers, etc.

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The image below highlights the digital marketing strategies that Amcor Limited could adopt
to target the majority of the manufacturing audience in Mexico. It could use earned media,
paid media, and owned media to expand its business operations.
Source: (Papadopoulos & Heslop, 2014)
3.2.4 Communication Promotional Mix
The graph presented below represents the international marketing communication model that
would be used by Amcor Limited in the Mexican market. The social media marketing and
marketing over television and radio would form the main tools followed by official website
and sales promotion activities. Both traditional and modern tools have been selected so that
the business could target most of the audience in the international market platform. This
simple yet effective communication mix would strengthen the ability of the business to target
its main audience in the region (Samiee, Chabowski & Hult, 2015).

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3.2.5 People
The people that are involved in the marketing activity form an integral part of the marketing
mix. Thus Amcor Limited’s people would basically involve the staff and employees that
would help the business to reach its business objective. This is one of the most critical
elements that help the business to conduct its activities (Schilke, Reimann & Thomas, 2013).
Thu the packaging concern would have to focus on their features, skills, and requirements so
that they could act as an asset for the concern.
Training
The business needs to train them so that they would understand the key concepts and models
that are involved to create high-quality packaging products. Innovation must be an integral
part of the model so that the employees can feel empowered while working for the entity.
Recruitment
Recruitment is a vital activity that Amcor Limited must do so that it can select the most
suitable employees for its organization. The skills, expertise, knowledge, and experience of
the applicants must be thoroughly evaluated so that the most productive staff can be selected
by the business in Mexico (Schmid, Grosche & Mayrhofer, 2016).