Bevy: Internationalization Report - Market Entry and Strategies

This investigative report examines the internationalization of Bevy, an on-demand beverage application based in the UK. It delves into the company's background, highlighting its focus on affordable and timely beverage delivery. The report explores the potential internationalization motives, differentiating between proactive and reactive triggers that could drive Bevy's expansion into new markets. It then analyzes the process of international market selection, with a focus on Spain and France as potential target markets, evaluating their suitability based on market demands and profitability. The report also discusses the methods of market entry, suggesting licensing as a suitable approach, while also considering alternatives like direct exporting and partnerships. Finally, it outlines potential marketing strategies, such as communication mix elements including advertising, public relations, and direct marketing, that Bevy could employ to ensure success in the international market. The report aims to provide a comprehensive overview of the challenges and opportunities Bevy faces as it considers expanding its business internationally.

INVESTIGATIVE REPORT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Organization background.............................................................................................................1
Potential internationalization motives that influences or triggers the company in order to move
into international market..............................................................................................................1
International markets...................................................................................................................3
Method of market enter used by organization.............................................................................4
Potential marketing strategies used to ensure success in international market...........................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Internationalization can be defined as a process through which an enterprise or organization
can involve in international market and can set their business in more than two nations (Vellas,
2016). There are various strategies that can be used by organization to strengthen their global
marketing process and is done in such a manner that organizations can take advantage of
operational differences, opportunities and similarities in order to achieve global objectives.
Organization chosen for this assignment is a SME currently doing business in UK. Bevy is an
on-demand beverage application deals in retail sector and focuses on delivering beverages to
their customers in an affordable price and timely manner. This assignment will lay emphasis on
internationalization motives of the organization in order to move into new international market,
global marketing model for international market selection and potential marketing strategies in
order to ensure success in international market.
MAIN BODY
Organization background
Bevy also known as beverage butler, it is an on-demand application that delivers snacks
and drinks to their customers at an affordable price within an hour. They focus on delivering
various kinds of beverages to their customers as soon as possible. They are one of the most
efficient and affordable alcohol delivery service in UK (Bevy, 2019). They mostly sell their
products at the same price as other retail sector organization in this sector sells. Bevy was
founded in 2009 by three people Macro Saio, Kemball Williams and Kevin Kovar. Recently they
were listed in top 100 food and beverages packaging company.
Potential internationalization motives that influences or triggers the company in order to move
into international market
There are many motives or triggers that can influence an organization to move into
internationals market. There arb two kinds of motives proactive and reactive motives. Proactive
motives are those reasons that influence an organization to expand their business especially
financially. Proactive motives such as: growth and profit goals, economies of scale, marginal
urge, opportunities in foreign market and many more (Morschett, Schramm-Klein and Zentes,
2015). These proactive motives help the organization to motivate themselves in order to increase
their profit, expand their business, gain competitive advantage etc. reactive motives are those
motive that influences an organization to respond to all kinds of environmental changes, react to
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pressures associated with the business. Examples of reactive motives that can influence an
organization to expand their business into international market are: competitive pressure on the
organization, over or excessive production, expansion to international market as expansion in
domestic market is limited, small and saturated, increasing number of voluntary foreign orders,
expand sales and marketing of their current products, Strong relationship with international
customers or clients. These motives provide opportunity to the organization which helps them to
gain or access market opportunities. These factors influence an organization to motive into
internationals market as it helps an organization to increase their overall sales, this will further
help them top increase their overall revenue. Access to international market also helps an
organization to enhance or increase their overall profit.
These are the motives that can influence Bevy to move into internationals market by
expanding their business internationally. This will also provide Bevy a short-term security i.e. if
there is any kind of fluctuation in market of UK them moving internationally will make them less
dependent upon market of UK. Intensified international market competition and desire to gain
competitive advantage will give rise to innovation within the organization in order to expand
their customer base and will also give rise to development of new product or service.
International triggers are processes that take place within or outside the organization that
are required to be carried out within the organization. These processes trigger the
internationalization process of the organization. There are two main types of triggers that can
trigger internationalization process of an organization. Two main types of triggers are: internal
and external triggers. Internal triggers are perspective management, specific internal events like
overproduction or reduction in domestic market also triggers internationalization process of an
organization. External triggers are: extended market demand that can help the organization in
growing in international market, expansion of competing firm also works as a trigger for the
organization that influences them to expand into international markets, change in government
legislation, policies, rules and regulations also influences an organization and triggers them to
move into international market (Altbach, 2015). Organization like bevy has a large potential and
scope in international market and there are many triggers that can influence them to enter into the
new international market. As the concept on the basis of which their business is running is not so
common as because of this they have lots of scope in international market which will further help
them to gain competitive advantage and will also help them to gain economies of scale. They
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have high potential in global market which will help them to establish themselves in international
market and will further help them to enhance their overall performance.
International markets
Selection of appropriate market is one of the most important factor which is required to be
considered by the organizations in order to move to international level. Organizations need to
evaluate different kinds of market and their suitability for the organization. In order to choose
international market for expansion for the organization (Baker and Saren, 2016). Company need
to go through a process which help the organization to enter into the international market. First
step is to determine marketing objectives. These objectives must suit the organization and their
business. Next is to set some parameters on the basis of which international market will be
selected or critically evaluated. Then after setting the parameters, preliminary screening is done
and on the basis of this markets are shortlisted. With the help of this process internal market in
which organization wants to expand their business can be chosen. By using this process Bevy
can choose two international market in which they want to expand their business. This process
will make it much easier for the organization to select the market in which they want to operate
in or expand their business into. Currently their main market segment is London UK but they
have expanded throughout the Europe. They current UK market has been estimated as £30
billion dollars especially in alcohol and tobacco market. They are focusing on expand their
market even more for the growth and expansion of their company in order to increase their
overall sales and revenue. They sell various kinds of beverages such as alcoholic drinks, non-
alcoholic drinks, soft drinks and operates according to the market demand and the type of market
they are operating in.
International market chosen by Bevy are Spain and France because these two are one of
the top most market where they can expand their business in an appropriate manner. Not only
this in fact Market of France is much more fruitful for Bevy especially for non-alcoholic drinks
and wine and for alcoholic drinks Spain is a profitable market as demand for alcoholic drinks in
increasing continuously in Spain. By focusing on both the markets they can increase their sales
and revenue and expand their business in international market. Slowly they are focusing on
expanding their business all across Europe. But if market of France is compared to Spain then
Spain is much more profitable market as compared to France. This is mainly because market of
alcoholic drinks in France is much lower as compared to other markets.
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France Spain
Fruitful for non-alcoholic drinks and wine Fruitful for alcoholic drinks
Demand for non-alcoholic drinks and wine is
high in France but for alcoholic drinks demand
is not good
Demand for alcoholic drinks is high in spain
Less profitable as compared to Spain market More profitable as compared to France market.
Revenue for non- alcoholic drinks is high Revenue for alcoholic drinks is high
Method of market enter used by organization
There are various methods that can be used by organizations for entering into a new
market. These methods help the organizations in entering into as foreign market and setup their
business (Gillespie, 2015). There are number of methods that are used by organizations in
different situations and used for different kinds of business which suits their business in an
appropriate manner. Bevy used licensing method to enter into Spain method as it is one of the
most appropriate method that can be used by any organization. Using this method an
organization that wants to enter into a new market where an organization transfers their rights of
selling their organizations services and products to another firm. This method is mostly used
when the firm chosen for licensing has already established themselves in the market. It can also
be used for production, sales and marketing etc. There are different kinds of licenses that can be
provided to the organization such as license for marketing, license for production or license for
sales in a particular country. Bevy could have used other marketing strategies as well that would
have helped them to establish themselves in a new international market. Such as partnership or
direct exporting. Out of all of these methods direct exporting is one of the most common method
that can be used by an organization to expand their business in a new international market. Using
direct exporting method an organization can focus on directly selling their products or services to
the new chosen market using one’s own resources or instances. But this method requires strong
sales distribution program or establishment of sales program. In this method it is important for
organization to choose appropriate distributors and agents so that they can handle their business
in an appropriate manner. They could have also used a method like partnership in which an
organization can partner with an already established organization within the chosen market in
order to enter into that market (Katsikeas and et.al., 2016). But in European countries these
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methods are not required to be chosen as relationship between all the European countries is quite
good. So, the method chosen by the organization was quite appropriate and other than this they
could have directly chosen direct exporting method.
Potential marketing strategies used to ensure success in international market
There are various kinds of global marketing strategies that can be used by organizations
while expanding company internationally successfully into a new international market. These
strategies help in increasing effectiveness of the products or services, helps them to gain
competitive advantage, reduce organization’s overall cost and enhance their saving as well as
increase brand awareness among consumers of new international market. Global marketing
strategies are one of the most important part of expansion as it helps them in ensuring success of
market expansion in international market. One of the most common marketing strategies that can
be used by organizations to ensure success in international market is communication mix. It is
also known as promotional mix method. This strategy consists of following methods such as
advertising, public relation, personal selling, sales and promotion, direct marketing. Advertising
is one of the most prominent method that can be used by the organization to ensure a medium in
order to reach a target audience (Kotler and et.al., 2015). Advertising helped bevy to establish a
channel through which they can reach their international customers such as social media
marketing etc. Direct marketing helps the organization to promote their products and services to
their customers. Other than this they can also use personal selling methods such as discounts and
promotions in order to attract more and more customers and establish themselves in the new
market. They can also focus on building personal relation with their customers by
communicating with them through social media or any other communication channel. These
methods can help any organization to ensure their success in international organization. Strategy
chosen by bevy was also based on communication mix strategy.
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Figure 1 Communication mix strategy
CONCLUSION
From the above assignment it has been summarised that there are various motives and
triggers that can influence their needs entering into an international market. It has been analysed
that there are various kinds of models that are important to be focused in order to choose an
international market in order to establish themselves and their business. There are various kinds
of methods that can be used by organization to enter into a new market and ensure their success
in the new market.
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REFERENCES
Books and Journals
Altbach, P., 2015. Knowledge and education as international commodities. International higher
education. (28).
Baker, M.J. and Saren, M. eds., 2016. Marketing theory: a student text. Sage.
Gillespie, K., 2015. Global marketing. Routledge.
Katsikeas, C.S., and et.al., 2016. Assessing performance outcomes in marketing. Journal of
Marketing. 80(2). pp.1-20.
Kotler, P., and et.al., 2015. Marketing. Pearson Higher Education AU.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Strategic international management (pp.
978-3658078836). Springer.
Vellas, F., 2016. The international marketing of travel and tourism: A strategic approach.
Macmillan International Higher Education.
Online
Bevy. 2019. [Online]. Available through: <https://www.bevy.co/>
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