International Marketing Strategy Report: The Daily Juice Expansion

This report examines the international marketing strategy of The Daily Juice, an Australian fruit juice company, as it expands into the UK market. The report begins with an executive summary and table of contents, followed by an introduction that highlights the significance of international marketing ...Read More

Running head: INTERNATIONAL MARKETING
International Marketing
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Executive Summary
This report highlights the necessity and significance of international expansion for business
organizations after serving a market for a certain period. After serving the Australian market for
over 25 years, the Daily Juice Company has decided to expand their business internationally in
the UK. This allowed the company to explore new markets and niches thereby, increasing their
business and expanding the customer base. International expansion in the UK was a competitive
business strategy undertaken by the company in order to survive the domestic market. The
proactive nature of the government, the unhealthy lifestyle of the population along with the
economic stability of the country influenced the decision of the company. Considering the
demographics and psychographics of the customers, the company launched three different
flavors for the children, adults and the young adults. Franchising is selected as the market entry
strategy, as this is the fastest and cheapest method for international business expansion.

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Table of Contents
Introduction......................................................................................................................................3
The Daily Juice................................................................................................................................3
PESTLE analysis and justification for selecting the UK.................................................................4
Target Customers in the UK............................................................................................................6
Product Positioning..........................................................................................................................7
Suitable Market Entry Strategy.......................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Introduction
International marketing is the most suitable business strategies undertaken by the local
business organizations for exploring new markets. International marketing allows the domestic
business organizations to invade new markets and expand the business successfully. According
to Terpstra, Foley and Sarathy (2012), due to change of demands and expectations of the
customers, the market of the host country becomes saturated after some time. Therefore, loss of
business and customers are noticed due to stalling of the business. Thus, international marketing
is a good opportunity that organizations can utilize for sustaining in the competitive market.
This report introduces the international expansion of a domestic Australian fruit juice
company, named The Daily Juice. The Australian fruit juice company has aimed for international
expansion in the UK after a thorough analysis of the needs and demands of the country. The
company only manufactured orange juice when it was established. In addition to, the report also
sheds light on the target customers, suitable market entry strategy, and product positioning.
The Daily Juice
The Daily Juice is a native fruit juice company of Australia that manufactured only
orange juice. In 1989, the company started with only 12 people committed to a broad vision. The
company aimed towards manufacturing healthy and delicious orange juices that melt in the
mouth of the customers. The company has gained high recognition among the customers in
Australia for their healthy and delicious orange juices. Based on the popularity, the company
launched different types of fruit juices for the Australian population. The new range of juices
included Nourish Berry, Nourish Green and Nourish orange. Additionally, the company

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produced juices in both breakfast bottles and family pack. Over 25 years, the Daily Juice has
served the Australian market and now aims towards international expansion for exploring new
markets and niches (Dailyjuice.com.au, 2017).
PESTLE analysis and justification for selecting the UK
Political  Politically stable government
 Proactive nature of the government influencing
betterment for the entire population
Economical  6th largest economy in the world
 First industrialized country in the world
Social  Unhealthy lifestyle
 Obesity among the population
Technological  One of the leading countries facilitating scientific
development
 Use of technology in regular life
Legal  Legal policies affected by Brexit
 Reasonable tax policies
Environmental  Business Sustainability
 Country promoting renewable energy
Political: The UK is one of the most politically stable countries with the proactive nature of the
government. The government of the country is always ready to take actions for the betterment of
the entire population. As the political decisions are still influenced by the British monarchy,

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political corruption is hardly noticed. Moreover, the government of the UK is welcoming host
business organizations that can be beneficial for the country and its people (Jones and Norton
2014).
Economical: Over the past years, the economy of UK is ranked as the sixth largest in the world.
The country has the most highest GDP around the world as GBP is the highest among all the
currencies in the world. Reports suggest that the current GDP of the UK is $2.62 trillion (King et
al. 2014). Additionally, the UK is one of the oldest industrialized countries in the world thereby,
facilitating foreign investors and business organizations.
Social: Socially, the UK is one of the countries that live the unhealthiest lifestyle due to high-
calorie content in the diet. Due to an unhealthy lifestyle, the majority of the population of the
country including children, young adults, adults and elderly people suffer from obesity and
various other diseases. This is because the majority of the UK population consumes fast food as
their staple diet thereby, affecting their health (Croker et al. 2016).
Technological: The UK is one of the oldest countries that has incorporated and facilitated
technological development in their daily life. The vast use of technology has influenced the
international business organizations and investors (Xia, Yang and Zhu 2013). Therefore, the
international business organizations are able to use the technological advancements for
expanding their business in the UK market.
Legal: Compared to the other factors, the legal framework of the UK is more strict thereby,
making it difficult for the international business organizations and investors. The tax implied for
the international business organizations are higher with respect to the domestic organizations.

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Post-Brexit, the changes in the legal system might make in unfavorable for the international
business organizations (Laws et al. 2012).
Environmental: The UK promotes sustainable business opportunities that are beneficial for the
environment and the society. Moreover, the UK has taken various measures for the betterment of
the environment (Crane and Matten 2016).
Therefore, based on the PESTLE analysis, selecting the UK by the Daily Juice Company
is justified.
Target Customers in the UK
According to the reports, the majority of the people in the UK lives an unhealthy lifestyle
due to the nature of the diet and food consumption. Therefore, obesity and along with other
diseases are frequently noticed in the UK population. The NHS data suggests that 24.9% of the
diseases in the UK is due to unhealthy diet and lifestyle (Nhs.uk, 2017). Around 528% women
and 65% men were diagnosed to be obese in the UK in the year 2014, that is almost 26%
increment in the number of obese people in the UK. In addition to, in every five children more
than one are suffering from obesity due to unhealthy diet and ignorance among the parents
(Health and Social Care Information Centre, 2017).
According to the aforementioned diagram, it can be said assumed that unhealthy diet is
prevalent throughout the UK. Based on the market analysis, the Daily Juice Company has
selected the children, young adults, and adults as the target customers. As the target customers
selected by the Daily Juice Company included different demographics, the company need to
implement the psychographic method of targeting customers. The company analyzed the flavors

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preferred by the children, adults and young adults. Based on the preferred flavors, the company
launched Nourish Berry and Nourish Green for the customers.
Product Positioning
The Daily Juice Company has to encounter a tough competition in the UK market due to
the presence of previously existing healthier juice alternatives for the population. Therefore,
appropriate positioning of Nourish Berry and Nourish Green along with the Nourish Orange
needs to be done for creating a unique image in the eye of the target customers. As mentioned by
Daud et al. (2012), distributing free samples among the customers is the best way of making the
product noticed in the eye of the target customers. Therefore, the Daily Juice Company can
involve their staffs in distributing the free samples to the customers. For example, the company
can set a stall in the market place and distribute the product. This will help in engaging numerous
customers along with communicating with the customers personally. Personal communication
with the customers about the product will help them is gaining a deeper understanding of it
thereby, influencing their purchase decision. For example, while distributing the free sample, the
staffs will share the healthier properties and benefits of the product and gain their attention.
Additionally, the company can also advertise the newly launched range of juices through
newspapers, brochures, and televisions (Sweeting 2013). Positioning the product in this way will
influence the purchase decision thereby, allowing them to provide tough competition in the UK
market.
Suitable Market Entry Strategy
After a thorough analysis of the external environment of the UK, the Daily Juice Company
prefers using franchising as the market entry strategy. According to Grunig and Morschett

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(2012), the concept of franchising highlights the type of ownership in which a single brand name
is shared by different ownership. Franchising is the cheapest and the fastest method of expanding
business internationally (Laufs and Schwens 2014). Therefore, the franchisee will be allowed to
use the trademark and business strategy of the Daily Juice Company. However, the franchisee
needs to pay the monetary amount for using the trademark and the business strategies. Thus,
based on the revenues generated, the Daily Juice Company needs to be paid royalties and some
amount initially by the franchisee. According to the franchise agreement, The Daily Juice
Company needs to offer the minimal support to the franchisee. For example, The Daily Juice
Company needs to train the staffs and advertise the range of products in the UK market on behalf
of the franchisee.
Conclusion
In this report, it can be concluded that the Daily Juice Company has decided to expand
their business internationally after serving the Australian population over 25 years. After
conducting a thorough analysis of the countries, the company has selected the UK for expanding
their business. The primary reason for selecting the UK for the international venture was due to
the unhealthy lifestyle and diet of the population. Based on the external analysis of the UK, the
company has observed the proactive nature of the government that is looking for a healthier
option for the population. The company has targeted the children, young adults, and adults due to
the unhealthy lifestyle led by them. Moreover, the company has also launched three different
flavors based on the preferred taste of the target customers. Delicious and flavorsome nature of
the product is a healthy alternative for the customers. The Daily Juice Company selected
franchising as the market entry strategy, as it is cheap and easy to expand. In order to

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communicate the product among the target customers, the company will distribute free samples
of the fruit juice along with advertising it through television, newspapers, and brochures.

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References
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Croker, H., Viner, R.M., Nicholls, D., Haroun, D., Chadwick, P., Edwards, C., Wells, J.C. and
Wardle, J., 2012. Family-based behavioural treatment of childhood obesity in a UK National
Health Service setting: randomised controlled trial. International journal of obesity (2005), 36(1),
p.16.
Dailyjuice.com.au. (2017). About Us – Daily Juice. [online] Available at:
http://dailyjuice.com.au/about-us [Accessed 14 Sep. 2017].
Daud, N.M., Aziz, H.A., Baharudin, N.H. and Shamsudin, S.F., 2012. Identifying the
Determinant attributes of halal cosmetics product that influence its positioning strategy in
Malaysian market. Journal of Applied Sciences Research, 8(1), pp.301-313.
Grünig, R. and Morschett, D., 2012. Evaluating market entry modes. In Developing International
Strategies (pp. 123-148). Springer Berlin Heidelberg.
Health and Social Care Information Centre. (2017). Statistics on Obesity, Physical Activity and
Diet. [online] Available at: http://content.digital.nhs.uk/catalogue/PUB20562/obes-phys-acti-
diet-eng-2016-rep.pdf [Accessed 14 Sep. 2017].
Jones, B. and Norton, P. eds., 2014. Politics Uk. Routledge.
King, S., Glanville, J., Sanders, M.E., Fitzgerald, A. and Varley, D., 2014. Effectiveness of
probiotics on the duration of illness in healthy children and adults who develop common acute