Ella's Kitchen: Internationalization Motives and Strategies

This report provides an in-depth analysis of Ella's Kitchen's internationalization strategy. It begins by outlining the company's motives for global expansion, including profit maximization, managerial drive, and the unique nature of its organic baby food products. The report then explores the global marketing model used for international market selection, examining factors such as resource allocation, trade barriers, market growth, and government policies. It details the acquisition strategy employed by Ella's Kitchen for market entry, supported by SWOT analysis and performance metrics. The report also reviews the market context and discusses upcoming strategies, including communication tactics like advertising and brand building. Finally, it highlights the company's growth trajectory, emphasizing its success in the US market and its overall market share, concluding with an overview of the factors contributing to its international success.

AS-2 Investigative
Report

EXECUTIVE SUMMARY:
Document has mentioned the different range of potential internationalization motives/ triggers
and also, there is a global marketing model as well that has helped in international market
selection. Away with this, method of market entry is also considered for Ella's kitchen to enter
and lastly, review of market along with upcoming strategies. There are so many opportunities in
the market available for an organisation that can be used for the purpose of entering and
expanding in international markets. Organisations have to make their target customers aware of
their product and deals with high competition in the market. The acquisition strategy is used to
establish in new market and enhance present market share. This is the most appropriate strategy
to enter into new market as it helps to take advantage of existing brand image in the target
market. There are several communication tactics to help in direct or indirect communication the
most popular one is advertising as it helps in achieving the differentiation advantage by use of
creative strategies for an organisation in long run.

Table of Contents
INTRODUCTION ..........................................................................................................................4
Potential internationalization motives/ triggers..........................................................................4
Global marketing model for international market selection......................................................5
Method of market entry used by the Ella's kitchen to enter .......................................................6
Review of market and the upcoming strategies..........................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Ella's kitchen is a company which was founded by Paul Lindley in 2006 in United Kingdoms.
This company deals in organic food for babies and toddler which are sold in supermarkets
globally. They sold in the international markets which includes countries like UK, China,
Norway, Denmark, Iceland, Canada, Romania, Sweden, Netherlands, Finland, Belgium, Ireland
and United states. They have a global turnover of about $121 million and have 30% of the
market share of baby food sector. Presently they are dealing in 216 products for the age group of
3 months to 3 years and more. They offer their potential customers 100% organic ingredient food
with no added sugar, additives, water, salt, etc. the company is member of The Soil Association
and the Organic Trade Board. The company promotes recycle program in the community as it
sets points for the customer for pouch collection in different public places in this way the parents
became Ellacyclers in the community.
Potential internationalization motives/ triggers
There are so many motives of an organisation which creates a desire in an organisation to expand
itself in international markets. This helps the company to enter into new international market.
Similarly, the Ella's kitchen has certain motives to expand themselves in international market.
Some of them are given below:
Higher Profits:
Every organisation works to earn more and more profits and if an organisation has a profit in that
case they decide to expand. In case of Ella's Kitchen when they get profits from the existing one
then only they can think of expanding in new market of different country and expand globally.
Managerial urge:
The motivation in the managers of Ella's kitchen which reflects drive, desire and enthusiasm in
the managers towards the activities of global marketing (Ahmadjanovna and Makhmudovna
2020) . Managers are responsible in the organisation for all the important decisions in the
organisation and the managerial urge in the managers is the reason the organisation is able to
expand globally.
Unique product:
A unique product offered by the organisation helps to expand more in the international market as
it decreases the level of competition for them in the market. Ella's kitchen offers organic food

which is good for the health of the babies and it is the uniqueness of the product and provides the
company a great opportunity to expand its business globally.
Economies of scale:
As the organisation is expanding its business in different countries its production increasing day
by day by which the cost for a product decreases and as a result company gets more profit. In the
initial levels when the company is searching for exports market and their policies incurred high
fixed cost but after some time when company gets a good response covers the fixed cost and
reduce the cost for the company when produced in large amounts.
Tax Benefits:
Tax benefits taken by the company is also very helpful for the company to promote exports as it
opens the way and simplify the export process. A high tax in exporting creates a barrier for the
company as it increases the price of the product and led to low profit.
Presently, the founder of Ella's Kitchen emphasised on using cultural similarity with
Hain. Both the brands have same motive of changing the eating habits of the children.
Global marketing model for international market selection
Basis Ella's kitchen in US Ella's kitchen in Sweden
Resources New products are launched in
US such as Cashew, fibre
purses, hazelnut milk and
organic fruit yogurts and there
has been major use of
ingredients like quoa and chea,
almonds and coconut pulp to
reach high momentum. This
brand is acquired by Hain
Celestial (Asemokha and et. al.
2020).
Ella kitchen uses people
interaction in their projects.
The project process of Ella's
kitchen involves various
stages. First is analysis of
business, second is document
of gate, in third in house
execution of samples, in fourth
there is trail in the factory and
in sixth one review is marked
for the benefits after six
months.
Barriers of Trade Some non-tariff barriers can
lead to decrease in chances of
The system of export and
import in the country has a

success in U.S. and also some
regulatory differences are there
like barriers to trade, sanitary
measures and phytosanitary.
presence of trade barriers and
high tariffs and is a prt of EU
taxation and custom union
(Massa and Schumacher.
2020).
Market Growth This company is dealing in
very Versatile product which
is easily sold in the different
stores and a very high prospect
of future growth in U.S.
(Wang, L. 2020)
The long standing trade
relation of U.K. And Sweden
helped Ella's kitchen in
entering the markets of
Sweden which have a stable
economy, skilled workforce
and a base of sophisticated
customers. Consumer markets
helps the customers to try new
products.
Government Policies This is the brand that meets the
standard of accountability,
social performance,
environment and transparency
and its movement towards
global prestigious movement
focused on extending of 42
countries across total of 130
countries that is the reason it
gets the full support of
government in U.S.
Ella's kitchen was able to
establish in Sweden because of
its movement of encouraging
parents in becoming
Ellacyclers by giving
collection points on their
prices. This shows the more
focus on sustainable
development and led to high
support from stakeholders
including government
(Thøgersen and et. al. 2020).

Method of market entry used by the Ella's kitchen to enter
There are different options for entering into different international markets used by Ella's kitchen
to enter in the other countries. It is a brand of U.K. which tends to increase themselves in some
new markets of new countries.
SWOT Analysis: Swot analysis is used by the company for internal assessment of the company
to taking insight of options available with them to approach their target market according to their
strength and weaknesses.
Strength:
The rapid change in the living standards and a rapid urbanisation of the target market is a
strength for the company as it helps to grow more in the busy lives of their customers.
Weakness:
As the industry is dynamic in nature Ella's Kitchen faces problems in moving along like there is
so much cases of malnutrition and increasing health concerns due to which there are restrains on
highly processed organic food and the company faces problem of procuring raw materials (Ma
and et. al. 2020).
Opportunities:
The scope for Ella's kitchen has widened where the governing forces are putting more efforts.
USDA Nutrition assistance programs are highly providing assistance for baby food lines and
snacks for less income groups.
Threats:
The threat of procuring raw materials has increased in the non-established markets. Apart from
this the another threat is supply chain issues.
For this reason, the above discussed SWOT analysis regarding Ella's Kitchen can give an
idea that the opportunity was absorbed by them very accurately which has resulted in earning a
great amount of revenue and the brand name. The opportunity used has given a great established
name to the brand.
UK Kid's food maker, Ella's Kitchen was acquired by Hain celestial and the amount
paid to them was not disclosed. Ella's kitchen in year 2003 had already its presence in Norway,
Sweden and US addition to their domestic countries. They even have achieved higher growth in
expanding in Europe. There has been a significant rise in the manufacturing faculties which
shows growth of the brand (Albrecht and et. al. 2020).

Entrance Strategies: The mode of entry that assist the company in having equal control in other
form by buying their inventory, exchanging of stocks in some of the private sector industries.
This is known as Acquisition. This refers to the form where a company takes control over
another company.
Merits: Acquisition is a process that enables the fast entrance and establishing of the operating
systems in a whole new market.
Demerits: It involves the high cost and a lot of issues that integrate and it may lead to such issues
in the markets where the brand is previously established.
The one of the best strategies regarding the Ella's Kitchen is acquisition strategy and it has
benefited the brand in many ways, such as:
 The requirement of Human force has enhanced with developed traits of qualities, skills
and know how.
 Other assets and the funds for higher development are easily accessible.
 More sales and the customers can be easily accessed.
 Products are easily diversified.
 Reduced cost of overhead production.
Pace of growth
The growth of the firm can be observed by seeing that there was recruitment of managing
director in US firms. The brand is serving a huge number of Walmart stores and are reaching
several millions of customers every week. This is a parent brand of ASDA. The annual turnover
of Ella's kitchen was increased by 36% when the brand Ella's Kitchen was acquired by Hain
Celestial in year 2012. Also with this sales outside the geographical border was enhanced by
more than 76%. Overall, it can be seen that the acquisition and merger with the Ella's Kitchen
has helped the brand to achieve a good share in profits and market reach as well.
Review of market and the upcoming strategies
In reference to the framework of Nicola Kemp, many particular marketing tactics were kept in
consideration that has assisted the brand in successfully establishing in the foreign markets.
Communication mix is the use of particular ways to promote the brand to its potential buyers.
This includes the elements of advertising, personal selling, promotions, relations with public,
direct marketing, sponsoring the events and much more (Cane and et. al. 2020). Despite of
lacking the marketing experience and being a trained accountant, Paul Lindley, he is successfully

running one of the best baby food brand in UK. Some of the techniques used by them in the new
markets of US can be explained as given below:
The approach of advertising was used by Ella's kitchen for achieving high sales rate as a
strategic method of communication in market (Yoon and Choi 2020).
Advertising:
Brand value build up The brand is able to make their brand value by spreading and following a
simple message and providing employment to people with a developed passion.
Brand Story The higher attractiveness of the story the more it is able to attract people. The story
created and promoted in the market is that the daughter of Lindley, Ella was a fussy eater and the
recipes sold are originally developed for her to make her happy.
Obsessed with the buyers The director is following the perspective of the target customers which
are the toddlers and creating the products which are having an approach of creative and honest.
Expanding Continuously Every business reach to a wider cap of customers by expanding its
reach. In the same way Ella's Kitchen is also expanding by approaching the Johnson & Johnson
and Lo-real.
Virtual Strategy The brand is reaching to the customers digitally even by connecting them on
social media and developing a new target market than US. There they are connecting the
customers that is parents through social media Facebook and providing the correct information at
a correct time. More than 70000 people are linked to them (Prabhu 2020).
Entertainment Media By watching television approximately 70% of customers are reaching the
online stores and purchasing. These advertisements have completed a strategy of reaching the
potential customers and gain information from them.
CONCLUSION
All in all, it can be concluded that the markets are totally changing day by day at a fast pace
because of varied trade policies. With the globalisation, the firms are working at different levels
to build their growth in the new aspiring markets. As per the opportunities available in the
market, the organisation chooses which to select and which not. The diverse framework of the
compliances used are chunks of communication mix for the levels of organisations. The use of
advertisement techniques is an essential element for promoting and marketing the Ella's Kitchen.
Marketing mix of the communication mix strategy is proved of a great importance to make the
customers aware and enhance their area of knowledge. This even helps the brand to launch their

new products and services at an ease. This also builds the connection between customers whether
the existing or new customers by creating communication whether direct or indirect form. It
provides a diverse level of competitive advantage. With the help of this, market selection can
easily be done by Ella's Kitchen in near future as well and also this organisation may be able to
improve the efficiency level as well of operating system in much effective and in efficient
manner.

REFERENCES
Books and Journals
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Yoon and Choi 2020. Introduction to the special issue on leveraged marketing communications.
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