Strategic Report: International Expansion of Davison Canners Ltd

This report delves into the potential benefits and challenges of international marketing for Davison Canners Ltd, a UK-based food production company. It recommends Ireland as the optimal location for expansion due to its attractive holding regime, technological advancements, English-speaking environment, and strong track record. The report explores the rationale behind international expansion, including increased revenue, new customer bases, diversification, and enhanced company reputation. It critically assesses Ireland's advantages, such as a skilled workforce, low corporate tax rates, benefits for assigned workers, research and development tax credits, and access to European markets. Furthermore, the report demonstrates the application of relevant academic theories and models related to international market selection and entry strategies, including segmentation, market targeting, and various entry modes like exporting. The analysis provides a comprehensive overview of the factors Davison Canners should consider when expanding internationally, offering insights into the strategic decision-making process and potential outcomes.

INDIVIDUAL
REPORT

Table of Contents
EXECUTIVE SUMMARY..................................................................................................................3
INTRODUCTION................................................................................................................................3
TASK....................................................................................................................................................3
Providing a brief overview of the chosen organisation and the rationale for going international...3
Critically discuss which country you would recommend them to enter..........................................4
REFERENCES...................................................................................................................................11

EXECUTIVE SUMMARY
The report is basically based on how interesting marketing can be beneficial as well as
challenging for a company like Davison canners. According to the Report the best place to expand
business is Ireland as they have attractive holding regime, technology, English speaking, Good track
record and many more things.
INTRODUCTION
International marketing basically refers to the marketing of the products and services on a
wider geographical scale including promoting the goods and services worldwide. Rendering the
services and products to the customers nationally, internationally, and locally too. Implementing the
marketing principles in the company which are located near the borders or overseas in more then
one country. This is a business operation which happens crosswise borders. It is a procedure of
planning, implementing of strategies, deciding prices, deciding distribution channels, creating goods
which satisfy the needs of organisation as well as the customers. For the growth and development of
the company, international marketing is an feasible option for the business. In this respective report
the company which has been chosen is the Davison canners ltd. it is an united kingdom based food
production company. The headquarters are situated in Craigavon (Katsikeas, Leonidou, and Zeriti,
2019.). The report's focal point is that if the chosen company switches up to the international
marketing then how it will be beneficial and challenging for the firm.
TASK
Providing a brief overview of the chosen organisation and the rationale for
goinginternational.
According to Neil Kokemuller, 2020. The company chosen in the report is the Davison
canners which a local innovative organisation located in the united kingdom. It is basically a food
production company which deals in the fruit and vegetable preserving. The company was
incorporated in the year 1978 by George Davison but it officially begun in the year 1995. the
headquarters of the company are situated in Craigavon, united kingdom. The product line of the
Davison canners is very wide, they offers many various products like jams, fillings, curds, syrups,
sauces, concentration and many more. From the last 40 years the Davison family is growing the
crops of Irish bramley apples (Chatterjee,Chaudhuri, And Sakka, 2021). One of the leading food
producers of fruits and vegetables of united kingdom is Davison canners. It is also the most

innovative food production industry existing in UK. The company believes in serving the best
quality products and services to the customers to maintain the strong and regular customer base
which will result into the increment of the revenue rate of the company. About 90 employee works
in each location and according to the sources, about $16.26 million is the overall net profit of
previous year of the company. Apart from this there is high competition because there are many
other food production company in united kingdom. Presently the company have a respectful
position in the market and have accurate plans and strategies for further growth of the company.
There are many reasons that the company should expand internationally, which are discussed below
:-
 increment in revenue – when the company have only limited opportunities for the growth
in the local marketing, they decide to switch up to the international marketing. For Davison
canners it is a great opportunity to expand themselves internationally to explore the new
markets and attract millions of new customers which will result in high sales (İpek, 2020).
 Entering into the new market – once the company become successful in their home
country, they decide to enter into the new markets overseas. But it is very essential to
research before entering into the new market. Whether it is seeking for the rising markets,
advanced technology, or developed markets. There are numerous opportunity for success in
expansion.
 New customers base – one of the benefit for expanding internationally is that it gives a
new customers base of the new market. this not only gives the opportunity to Davison
canners to sell the existing product in the market but also in investing and creating new
products to introduce in the marketplace, to a much more wider customer base by which
the company can increase their sales.
 Allows diversification – if a company operates within the home country then it will limit
the potential of the profit. One of the disadvantage a company faces if they operate in only
one country that it blocks the exposure to the market changes. If Davison canners takes
their business to the international level, it will allow them the opportunity to diversify their
markets to keep the revenue stable. If the domestic markets are slowing down, then the
chosen company have the benefit of international market which will assist the company
during the slower economic times.
 Company's reputation - one of the reason for expanding the business internationally is to
be able to give best services to the international clients. Creating a good image globally aids
the company in attracting the new customers. It builds a strong name and brand recognition
in the market (Morgan, Feng, and Whitler, 2018).

Critically discuss which country you would recommend them to enter.
According to Monikajurek, 2020. Recently, UK was considered as a primes destination for
the businesses but Brexit have impacted this. If Davison canners wants to expand themselves
internationally then one of the best recommended company to enter is the Ireland. From very long
Ireland have made itself a place to invest in. Ireland have a pro business environment. Globally,
Ireland have numerous regions where companies are seeking to invest in, that's because Ireland has
become the headquarters for many others MNC's. In comparison with other European countries it
is easy to start the business in Ireland (Hult, and et. Al, 2018). The only barrier for investors in
executing the business in other country is the requirements needed for entry. Ireland also have the
attractive taxation rates, as the country have the lowest corporation tax rates. There are many
reasons why Davison canners should expand themselves in Ireland, which are discussed below: -
 Availability of a skilled workforce – Ireland has many young, flexible, easily adaptable
and mobile generations. Ireland is also a magnet when it comes to education.
 Low corporate tax rates – Ireland has one of the lowest corporate tax rates in the world at
around 12.5% of trading income. It is important to stress that Ireland’s corporate tax rate is
not a bonus system. This is the rate at which the company is building an industry or sector.
 Benefits for Assigned Workers – The most important benefit for assigned workers is the
Special Assignee Relief Program (SARP). SARP eases income tax on the income of workers
who are assigned work. This can be a crucial factor for companies in the early stages of
establishing a presence in Ireland (Rana and et al., 2020).
 Research and Development Tax Credit- in Ireland, Davison canners are entitled to a 25%
tax credit on their current year corporation tax liability. The available credit is available to
the companies involved in qualified internal research and development activities, including
plant, machinery and buildings.
 Attractive holding regime – Ireland’s attractive tax, regulatory and legal systems combined
with an open and accommodating business environment have made it a world-class location
for the headquarters of many international companies, to Davison Canning’s advantage.
 Technology – Ireland has a wealthy history of achievements in science and technology and
continues to make investments in research and technological skills. Ireland’s latest instance
as a non-stop technological know-how hub is mirrored in the investments that many primary
science organizations have made in developing facts centres in Ireland. The science can
advantage Davison canners in many ways.
 English Speaking – Ireland is one of the only two English speaking members of the
Eurozone, which is an necessary consideration for corporations putting up in Europe.
 Good Track Record – Over 1,000 multinationals continue to grow their amenities in

Ireland primarily based on the profitability and success of their Irish operations. Ireland can
grant Davison Canners on hand to get entry to over 500 million customers in Europe (Paul,
And Mas, 2020).
Demonstrate application of relevant academic theory/ models related to the process of
international market selection and entry strategies.
According to Milton Jack, 2022. Companies are looking for markets in new countries based on
expected returns. These expectations depend on judgments about the attractiveness of the market
and the organization’s competitive position in it. Informants, in turn, influence this. It is the number
and strength of these informants that underlie the likelihood that a country will be identified and
evaluated by an organization as a new market. The international market selection process requires
segmentation and market target strategies. This process of dividing a market into different
subgroups (segments) of consumers with common needs. The segmentation can be demographic,
psychographic, geographic and benefit segmentation. When segmenting, the selected company
Davison Canners should consider Measurability (the extent to which the size and purchasing power
of a market segment can be measured), Accessibility (the extent to which a market segment can be
reached and served), Substantiality/Profitability ( the extent to which a market segment is
sufficiently large or profitable) and feasibility (the extent to which effective programs can be
designed to attract and serve a particular market segment (Kozlenkova and et. Al, 2021). The
process of selecting a international market is discussed below:-
 International Marketing Objectives: The first step for Davison canners in selecting an
international market is to determine or identify the organization’s export marketing
objectives. The market chosen for a particular international marketing objective may not
necessarily be the most appropriate to achieve another international marketing objective.
 Parameters for selection: In order to evaluate and select markets correctly, it is important
to determine the parameters and criteria for the evaluation. The various parameters for
selecting a market are a company’s resources, the international environment, the market
situation, the nature of the competition, government policies, etc.
 Preliminary Screening: The purpose of the Preliminary Screening is to exclude those
markets that do not have potential for Davison canners. The parameters used for pre-
screening may vary from product to product. However, parameters such as population, per
capita income and economic structure, infrastructural factors and political framework
conditions are basic.

 Short List of Markets: A preliminary review allows for the elimination of markets not
initially considered. Even after the pre-screening, many markets remained. They will be
further verified using more information than was used in the preliminary screening phase.
 Evaluation and Selection: The shortlisted markets will be further evaluated in terms of cost
benefit analysis and feasibility studies. They are then ranked based on their overall
attractiveness. The best market will be selected considering Davison Cannery’s resources
and external environment for launching the product.
 Test Marketing: Firstly, the market is analysed and tested on a smaller scale by introducing
the commodity in a subset of markets. This renders the manufacturer a proper review on the
market. As well as, it assists the manufacturer gauge the overall customer reaction in a given
market, and after proven success, mass production can begin.
 Commercial Production: Once the commodity has been tested in the chosen market, the
organisation further proceeds to mass production. The small changes to the product mix can
be done at this phase (Agwu and Onwuegbuzie, 2018).
Some of the major market entry strategies are discussedbelow :-
 Export – the exchange and transfer of goods designed and manufactured by Davison
Canners from one country to another to sell the commodities in another country. Exporting
doesn’t have much risk, the strategies that companies find eye catching have numerous
reasons. Firstly, the commodities in a domestic market can find out new growth
opportunities abroad. Second, it will be less risky and more profitable for Davison canners
to export existing products rather than produce new ones. Third, given seasonal domestic
demand, the company may choose to supply its products overseas to balance seasonal
demand in its revenue streams. After all, they could export because there is low competition
abroad. Smaller firms often opt to export over other strategies as it offers a degree of control
over risk, cost and resource commitment. Smaller companies often only export in response
to an unsolicited overseas order, which is also perceived as a less risk.
 Licensing/Franchising – Under a licensing agreement, an organisation produces a product
available to a foreign company by granting it the right to use the licensor’s manufacturing
procedures, trademarks, patents, or sales expertise. This renders the licensee a competitive
benefit and the licensor inexpensive access to a brand new market. Scarce capital, import
restrictions or state restrictions often make this the only way for an organisation to promote
itself internationally.
 Joint Ventures – A joint venture is basically a partnership between a domestic as well as a
foreign company. Both partners invest money, share ownership and control over the

company. Typically, the foreign partner offers expertise in the new market, business
relations and networks, and access to other business aspects in the country, such as Real
Estate and Legal Compliance. Joint ventures need more commitment from companies than
other methods because they have more risk and less flexible. Joint ventures can give tax
benefits in many countries, particularly where foreign-owned companies are taxed more
heavily than locally-owned companies. Some countries need that all business ventures be at
least partially owned by domestic business partners. Joint ventures can also expand across
several countries. This is most common when business partners join forces to do business in
one region of the world (Samiee, 2020).
Discuss typical barriers that will be faced as the organisation expand internationally
According to Katie Reynolds, 2017. Some of the common challenges that Davison canners
might face while expand internationally to other country are discussed below:-
 Cultural Differences – Davison canners should know that despite expansion and faster
communication, the foreign markets they are entering in they are culturally different from
their home country of Britain and have different standards and preferences. However, it is
essential to adapt their business strategies and plans to each foreign market. The language
difference should also be addressed. Customers from other markets prefer companies that
speak their language (Asseraf, And Shoham, 2019).
 International Recruitment – International recruitment is kind of a challenge for Davison
Canners because it creates the unknown for the HR department. Physical distances separate
them so they need to ensure that they really qualify. They need to understand the demands of
the new markets in terms of salaries and benefits in order to bid on par or slightly above the
standard.
 Labour Immigration – expansion gives Davison canners access to a wide perspective of
talent. However, different countries have different laws, and the laws often change, making
it tough for them to obtain visas for their foreign-born employees (Pedada, Arunachalam,
And Dass, 2020).
 Tariffs and Export Duties – As Davison canners prepare to ship their goods overseas, they
face the difficulty of various tariffs and export taxes that impacts the costs of their products.
They must ensure that their values remain competitive in the face of domestic and foreign
competitors. Davison Canners’ expansion into new markets must deal with logistics,
shipping, exporting and importing as they must maintain a supply chain that spans national
borders. Choosing the right shipping partner is essential to make sure that the products are

not confiscated by customs and delivery is always on time.
 Payroll – Labour and tax laws in other countries vary. Managing the payroll of expatriate
workers and complying with existing laws is a challenge for Davison canners. The difficulty
multiplies with the numerous markets in which the company operates (Pegan, Vianelli, And
Luca, 2020).
Based on your analysis, critically evaluate a relevant implementation approach for the
internationalisation process for the specified Target market.
According to Dave Taylor, 2022. Implementation approach for the internationalisation
process for the specified Target market are discussed below: -
 Choose to export– Undoubtedly Davison Canners’ most common internationalization
strategy is to export goods. The company may be directly involved in the process (direct
exports) or have a commercial intermediary who negotiates and distributes its product
abroad (indirect exports). Indirect exports are the least demanding but also the most
precarious of all internationalization strategies. Precisely because they are not directly linked
to the market or the final consumer, unlike direct export, which requires a greater
commitment, especially from a financial point of view (Javalgi, and Russell, 2018).
 Choose foreign direct investment (fdi) – Acquire overseas Davison canners. Another
strategy for entering the overseas market is to invest directly in acquiring some or all of
Davison’s canners already operating overseas (brownfield investment). Despite the high
cost, this alternative can be convenient to reduce risks when entering a new country.
Investing in a company that is already active abroad minimizes the implementation risk. It
can draw on the skills and know-how of the existing company.
 Adopt a licensing strategy – Licensing is an international agreement in which two or more
parties agree that the licensee may use the licensor’s copyrighted resources for a specified
period of time, subject to the payment of royalties. In this strategy, internationalization takes
place with the help of an entrepreneur outside the country, who uses his image to establish a
partner in the new market. The main disadvantage is that a foreign company is not part of
the parent company. There is therefore a risk that the licensee will become a competitor once
the license agreement has expired (Adıgüzel, 2020).
 Establish a franchising– Franchising (or a commercial association) allows Davison canners
to become an affiliate (franchisee) subject to payment of a fee to the franchisor. The
franchisee is entitled to sell products and services, use the franchise format and business

system. If Davison Canners chooses franchise as an internationalization strategy, it must
meet the franchisor’s quality, price and promotional standards. Those who choose this
strategy believe that they can succeed in the international market by using someone else’s
brand and working by their systems and methods.
 Establishing a joint venture with a company – A joint venture is an association of two or
more companies for a particular time of span with a common goal, whereby the partners
share capital, management, profits or losses and know-how. This strategy could be of
interest to Davison canners looking to globalisation with the help of a partner who already
knows the international market (Oyewole, 2018).
CONCLUSION
From this respective report it is concluded that For the growth and development of the
organisation, international marketing is great option for the business. For increment in revenue,
Entering into the new market, New customers base, diversification, Company’s reputation. Business
should expand internationally. But there are also some barriers which a company might face while
expanding internationally like Cultural differences, Recruitment of international staff, Immigration
of workers, Customs and Export Duties and Payroll. Lastly, Ireland has been recommended to
Davison canners for the global expansion.

REFERENCES
Books and journal
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