Danes Coffee: UK Market Entry Opportunities and Threats Report

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MRKT20057
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Executive Summary
The international marketing is considered as the application of the marketing principles in more
than one country by the companies overseas as well as the companies across the national borders.
The international marketing is generally based on the extension of the local marketing strategy of
an organization where the special attention is paid on the identification of market, targeting as
well as the international decisions. This report has presented the PESTLE analysis of the country
UK in reference to finding the market opportunities for the business of Danes Coffee. All the
external factors regarding the country UK will be discussed in this report that can have an impact
on the market entry of Danes Coffee within such market. The international marketing campaigns
are mostly led by the marketing managers with the training as well as the knowledge required to
manage and effectively provide the directions to comprehensive global campaigns. In order to
move forward to the export opportunities as well as understanding the potential threats in the
market of UK, there is need to establish the brand guidelines and expansion strategies, make the
evaluation of the customer requirements and tweak the marketing plan as per the culture of that
country by the managers of the company.
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Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
Company Overview.........................................................................................................................5
Influence of environmental variables..............................................................................................6
Conclusion and Recommendations................................................................................................11
References......................................................................................................................................12
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Introduction
This report is prepared in order to identify market opportunities in the international market for
the business. The report will highlight the most important factors having influence over the
market opportunities for the business in the global market. International Marketing is considered
as the multinational process of the planning and execution of conception, promotion, pricing as
well as the distribution of the ideas to satisfy the objectives of an organization. The organization
selected for this report is Danes Coffee and the country selected for such purpose is the UK
where the managers of the company are looking forward towards the export opportunities and
threats for the business. The Danes Coffee has the specialty coffee from the double Champion
Australian Roaster. It has also won the Champion Australian Roaster title from Australian
International Coffee Association. The coffee beans provided by the company are defined by
three flavored tribes such as fruits and berries, nuts and the spices as well as chocolates and
caramels. The company is required to identify all the potential threats as well as the opportunities
in order to take the entry into the market of the UK. This report will present the external
environmental analysis of the market of the UK and further, there will also be provided the
recommendations for managers in order to find the opportunities as well as the threats for the
business. A summarised conclusion will also be presented at the end of this report.
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Company Overview
Danes Coffee is the coffee provider within Australia which is achieving major success in the
market of Australia. The company believes that the coffee should be about the flavor. The
mission of the organization is to provide consumers with a choice in order to define their flavor.
They want to show that how the flavor of the coffee can be defined vary through the expression
of the aroma, sweetness, body as well as finish. The company is indulged in sourcing, roasting,
teaching as well as wholesaling the specialty coffee too. The coffee beans provided by this
company are defined by three flavor tribes such as nuts and spices, fruits and berries as well as
chocolates and caramels. The company is making it easy for the customers to choose their
favorite flavors by helping them understand the elements of each coffee roasted (Gaber, 2018).
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Influence of environmental variables
There are several numbers of the external factors which may have an impact on the operations
of a business. These factors are the political factors, economic factors, social or cultural factors,
legal factors, technological factors and the environmental factors which can have the direct
impact on the international marketing campaign in the country UK (Tyrrell, et. al., 2017). A
complete overview of the market of UK is provided further:
Economic/ Financial variables
The economic landscape of any country is an important factor having a direct impact on the
international marketing campaign of the business within such country. UK is considered as the
fifth largest economy of the world by the nominal GDP of the country. The economic growth of
UK is projected to be increased slightly in the year 2019 before slowing in the year 2020 as there
is an assumption that there will be the smooth exit of the country from European Union.
The UK recovery has been driving through consumer spending rates within the UK. Due to the
increasing consumer spending, the economy of the UK is going stable and it can be a beneficial
point for the business of Danes Coffee as it can make its marketing campaign in the UK. There
was the situation of recession in the UK in the year 2008, which had put the economy in great
trouble. The government also took several key steps in order to make an improvement in the
economy. There were several numbers of the challenges faced by British Households in the year
2017. The prices in the shops took the rise at the fast rates as there was an increment in the cost
of the importing goods to the UK due to the increased pound. There was also increment in the
inflation rate of the country. It rose to 3.1% in November 2017. The key interest rates were also
increased due to this in November 2017. It has been identified that in order to make a successful
marketing campaign by the Danes Coffee, the managers of the company are required to follow
some recommendations (Mccutcheon, et. al., 2017).
The international marketing campaign can be impacted by such continuous changes in the
changing economic landscape of the business. The funding for the business to make the
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international marketing campaign should be adequate and there must be a complete arrangement
of the finance and funds to make such campaign successful.
Political Variables
The political factors play an important role in the decision made regarding the investment in the
country. The businesses are required to understand the political landscape of any particular
company before making any further investment in the business. The UK consists of Wales,
Scotland, England as well as Northern Ireland. The UK is considered as one of the most
powerful countries in the world politically. The political stability is a great strength of the
country UK but there has been created certain numbers of the uncertainty as well as the political
debated due to the Brexit. It has been predicted by some of the analysts that Brexit is going to
create unimaginable chaos and some other analysts believe that Brexit will create immense
opportunities for the country as well as the businesses making entry into the country for their
business expansion (Kurul, 2015). The UK has also been considered as the most popular
destination for foreign direct investment. Several numbers of the business tycoons, as well as the
organizations across the entire world, have made an investment in the variety of industries in the
UK. These industries include the technology, food industry, grocery as well as the real estate
companies. These industries have attracted an enormous amount of interest from foreign
countries. There is a continuous change in the corporate taxes as well as other policies and the
guidelines by the government of the UK which can have the direct influence over the
international marketing campaign hold by the Danes Coffee. These changing tax and corporation
rates may impact the businesses and the plans of the multinational companies to make an
investment in that particular company (Gares, et. al., 2017).
It has been identified that the business activities tend to grow as well as thriven when there is a
politically stable nation. When the country is unstable politically, then foreign companies can
operate their business activities in a profitable manner. The strategies of the business will also be
affected by such political instability. The political landscape of the UK is strong hence there is
no such problem to the Danes Coffee regarding the marketing activities and the campaign.
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Legal Variables
This is one of the important elements of the PESTLE analysis. This represents the legal
landscape of the country UK. The companies looking forward to making the entry into the UK
are required to understand the Legal Landscape of the country and to understand that what are
the laws and regulations which are required to be followed compulsorily by the businesses. If the
businesses do not follow or abide by these laws then it may cause to the reason for penalties to
the businesses. There is a changing legal landscape after the Brexit on in the UK which can be
influential for the key marketing campaigns made by the business of Danes Coffee
internationally (Ellis, et. al., 2018).
As per the legal landscape of the UK, there are certain numbers of the acts in action which are
needed to be followed by the companies. As per the EU labor law, the maximum length of the
organizations working week is 48 hours in the seven days where there is the minimum rest of 11
hours in a time period of one day or the 24 hours time period. There is the Employment Act 1996
which generally protects the rights of the employees (Thornton & Hawkins, 2017). There are
several rights of the employees which are legally protected such as the sick pay, holiday pay,
paternity leave as well as the minimum wages of the employees. There is also provided the
protection from the discrimination to the employees of the organization. There is the Equality
Act 2010 which is made for protecting the employees of the organization from any kind of
discrimination. The companies are abiding by such laws. If the company Danes Coffee wants to
make entry into the market of the UK and it is also looking forward to the international
marketing campaigns in the UK then it is necessary for the company to follow all the necessary
rules, regulations and laws made by the government of the UK (Gallagher, et. al., 2015).
Social or cultural variables
The residents of the UK are enjoying a standard of living as compared to the other developed
nations. There are a good lifestyle and a high living standard of the community. The decades of
the great economic growth in the UK have helped the country in the development of robust
social infrastructure. The education, as well as the health care delivery system within the UK, is
considered best among all the countries of the world (Benjaminsen, et. al., 2017). The changing
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preferences and interests and choices of the customers can have an impact on the international
marketing activities made by the Danes Coffee in the UK. The government of UK is also making
focus on the alleviating income inequality as well as the plans to eradicate the child poverty from
the country by the year ending 2020 (Mangi, et. al., 2016). All these are the positive factors
having a positive impact on foreign companies to make the investment in order to expand their
business in the UK. The United Kingdom has a very big consumer market. As per the data
released in July by the office for the national statistics, the UK population was 65.6 million in the
year 2016. There are several numbers of opportunities for the organizations in the UK to cater to
the requirements of the older population. This category of the population has benefitted different
industries in the UK such as insurance, holiday, health care as well as the real estate industries
(Eagle, et. al., 2017).
The country UK is historically being impacted by the concept of the social class and the
population in the UK is multicultural. Over these years, the companies have developed several
new varieties of the products as well as the markets in order to cater to the requirements of
different religions as well as races. There are several numbers of opportunities for the new
businesses to explore and expand their business in the market of UK. The company Danes
Coffee can explore different opportunities in the market of UK after considering the several
kinds of social factors (Trommer and Silke, 2017).
Technological variables
There have been analyzed continuous developments in the use of technologies within the
businesses. The UK is considered as one of the most advanced countries in the world,
technologically as well as financially. London is referred to as the great hub for the technological
as well as the financial institutions. The companies are continuously making developments in the
new technologies in order to offer the best solutions for the requirements of the customers. This
advanced structure of the technologies offers great and unlimited opportunities for the local
businesses in the UK as well as foreign companies making an investment in the UK (Craig,
2018).
The continuous changing and improving technologies are creating a lot of opportunities for
businesses to expand their business activities and earn the maximum profits for their businesses.
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The technological sector in the UK is grooming and there is continuously increasing the talent as
well as the investment in this sector (Eyre, et. al., 2015). This talent and investment are spreading
across all over the country. In the technological developments, the country UK is still behind
some of the other countries such as Japan, Korea, USA as well as India. The technical
advancement in the country is a positive factor for the international marketing campaigns to be
made by the company Danes Coffee as it can use the best tools as well as techniques for the
promotion of their business within the UK.
Environmental Variables
There are several kinds of activities that can have an impact on the environment of the country
UK. There are several changes identified in the UK and several initiatives have also been taken
in order to reduce the negative impact of the environmental factors on the businesses. The
government, newspapers, local councils as well as many other institutions have made the variety
of the initiatives in order to create the environmental awareness and then reducing the negative
impact on the economic growth of the business environment. There are several environmental
challenges faced by the country. One of the main environmental challenges is the weather
conditions in the UK. On the other hand, pollution, as well as sustainability, is the other issues
having an impact on the businesses within the UK. The company Danes Coffee is required to
follow all the rules regarding corporate social responsibility and all these norms can help the
business in being sustainable (Williams, et. al., 2016).
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Conclusion and Recommendations
This assignment has provided the market opportunity report for the business of Danes Coffee
operating in Australia in order to make the expansion in the country UK. There has been made
analysis of the different variables of the environment. The political, environmental, social, legal,
technological as well as the economic variables have been identified in order to identify the
opportunities as well as the threats of the business. The export opportunity and the threats are
recognized in this report so that further actions can be made by the managers of the company.
Following are some of the recommendations made for the managers of the business to move
forward on the export opportunities as well as the threats for the business:
 There is a requirement of making the analysis on consumer preferences as well as their
drinking habits.
 There must be used the best strategies to identify the potential opportunities for the
business in order to expand it and make the further move.
 The best possible strategies must be used by the business to increase the exporting of
their products to the best possible market in the UK.
 The campaign is required to be started to grow international expansion by preparing
international business plans and set effective organizational goals.
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References
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Geography and the environment. Political Geography, 56, A1-A2.
 Craig, M. (2018). ‘Treasury Control’ and the British Environmental State: The Political
Economy of Green Development Strategy in UK Central Government. New Political
Economy, 1-16.
 Eagle, R., Jones, A., & Greig, A. (2017). Localism and the environment: A critical
review of UK Government localism strategy 2010–2015. Local Economy: The Journal of
the Local Economy Policy Unit, 32(1), 55-72.
 Ellis, Hunter, Hino, Cleland, Ferguson, Murtagh, . . . Reis. (2018). Study protocol:
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