Investigative Report: Ella's Kitchen's International Market Expansion

This report examines Ella's Kitchen's international market entry strategies, focusing on their expansion into various global markets. It explores the company's motivations for internationalization, including profit goals and unique product offerings, and analyzes their global marketing model, considering factors like trade barriers, market growth, and government policies. The report delves into the method of market entry utilized by Ella's Kitchen, specifically highlighting the use of acquisitions and the benefits associated with this strategy, such as gaining skilled staff and accessing new markets. A SWOT analysis is presented to evaluate the brand's strengths, weaknesses, opportunities, and threats within the context of international expansion. Furthermore, the report reviews potential marketing strategies, emphasizing the use of advertising and brand-building techniques, such as storytelling and consumer-focused approaches, to achieve a competitive advantage in the international market.

AS2 – Investigative
Report

EXECUTIVE SUMMARY:
There are different market opportunities that are available for a organisation that can be
utilised for purpose of entering and expansing across international borders. Small scale
organisations have to make a decision as they have to make their target customers aware of their
products and deal with high competition of already existing competitors. There is use of
acquisition as a strategy to establish in new market to enhance present market share. The most
suitable method that is considered for entry into a new market is acquisitions as it will help in
taking advantages of the existing brand image of a business organisation in the target market.
There are different elements of communication mix that help in laying down direct or indirect
communication channels with target market. Most effective channels that is adopted by
organisation is advertising as it helps in achievement of a competitive advantage by use of
creative strategies to have a differentiation advantage for a 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 your company/ product to enter ........................................7
Market Review potential marketing strategies ......................................................................9
CONCLUSION..............................................................................................................................11
REFERENCE.................................................................................................................................12

INTRODUCTION
Ella's kitchen is a small sector enterprise that is dealing in organic & toddler food that is
soled in different international markets such as Ireland, Sweden, Finland, Belgium, Netherlands,
Canada, they posses 30% share of total UK food sector. This company was started in the year
2006 by Paul Lindley. They are presently dealing in 216 products that is for babies of age group
4 months to 3 years and more. Their product range consist of smoothies, toddler food, snack
ranges and other featuring 100% organic ingredients food (Ang, Benischke and Hooi, 2018).
This brand is promoting recycling program and parent to become ellacyclers in the community
by setting of pouch collection points in different public places like shops and nurseries.
Potential internationalization motives/ triggers
There are certain triggers that actually create a desire for a existing brand to expand themselves
in international markers. This helps in developing a motive to enter a new international markets.
Some of the triggers to enter international markets are mentioned below:
Profitability goals:
Short term profit is a motivation to expand to other international market. The gap between reality
and perception may be wide when organisation is not involved in international market activities.
Managerial urge:
Managerial urge is reflecting the drive, desire and enthusiasm of management for global
marketing functions. internationalism process is many time encouraged because of socialisation
of managers (Shibata, Uemura and Suzuki, 2016).
Unique product:
A organisation might deal in product that are not widely available for international competitors.
So there is need to make some technological advices in specialised fields. Ellas kitchen has been
develop with a unique concept and it can be very helpful in increasing the revenue as there is no
prevailing of any existing competition that leads to generation of attractive opportunity.
Economies of scale:
Organisation can enhance their output with the help of a learning curve. In the initial levels of
internationalisation there can be enhancement of search for export markets where there is proper
management of fixed cost that is derived in form of its reduced element in overall cost of
products when produced in large qualities.

Tax Benefits:
Tax benefits are also very useful in assisting exporters. It helps in having more conformity with
formation of different international agreements. This benefit helps a organisation to offer their
products at low cost in various foreign market to achieve high profits (Ang, Benischke and
Hooi, 2018).
In the present case of Ellas kitchen, Paul kiley emphasised on using their cultural
similarities between Hains that has been defined as earths best kids brand and Ella's kitchen.
Both the brands posses same motive of changing the way children are eating.
Global marketing model for international market selection
Basis Ellas kitchen in US Ellas kitchen in Sweden
Trade barriers There are some non tariff
barriers that can lead to
decrease in opportunities in
U.S. There are some
regulatory differences also
such as barriers to trade,
phytosanitary, sanitary
measures (Boso, Oghazi and
Hultman, 2017).
There is presence of high tariff
and trade barriers that is the
system of importing &
exporting system that is part of
EU taxation and customs
union.

Market Growth There is presence of high
prospect of future market
growth in US. Ella's kitchen is
dealing in a very Versatile
product that can be easily sold
in different convenience
stores.
Sweden is one of innovation
competitive and globalised
countries across world. They
have stable economy, skilled
workforce & a base of
sophisticated customers. UK &
Sweden have long standing
trade relations that is helped
Ella's kitchen in entering
markets of Sweden. There is
presence of consumer markets
that is helping these customers
in trying new products.
Resources In U.S here has been some
new Launches of products
such as hazelnut milk, cashew,
organic fruit yogurts, fibre
purses. Apart from this there
as been use of major
ingredients such as quoa and
cheea, coconut pulp &
almonds to achieve high
momentum. Ella's kitchen is a
brand that will be acquired by
Hain Celestial.
Ella's kitchen has focussed in
use of people interaction in
their projects. There are two
different types of projects such
as product projects and internal
projects. Ella's kitchen has
used their four stage projects
focussed on Ella friendly and
their project initiation has been
named as “Put your ducks in a
row”.
Product process is used by
Ellas kitchen in which there is
mix of agile. First stage is of
business analysis, second is
gate document, third is
samples are executed in house
and in fourth there is trials in

factory. In sixth stage there is
review of benefit after a time
period of six months.
Government policies Ella's kitchen was supported
by government in US because
of its movement towards
global prestigious movement
that was focused on spanning
of 42 countries across total of
130 countries. It has been
recognised as a brand that is
meeting rigorous standard of
transparency, accountability &
environmental and social
performance.
In Sweden Ella's kitchen was
able to establish themselves
with a movement where they
were rigours encouraging
parents to become Ellacyclers
by setting of their pouch
collection points in various
public places like shops and
nurseries. This help them in
creating a unique segment of
product offering across
Sweden as there were more
focus on sustainable
development and this lead to
high support from all their
stakeholder including
government.
Method of market entry used by your company/ product to enter
There are many different types of international market entry options that were used by
Ella's kitchen to enter in other countries. It is a US based brand that to expand themselves in
some new markets of Continental Europe.
SWOT Analysis: it is a framework that is used for making internal assessment of a organisation
to develop insights of different opportunities that can be used for approaching some new market
segments.
Strength:

There is rapid urbanisation and changing lifestyle of target segment of customers of Ellas
kitchen.
Weakness:
Ellas kitchen faces difficulties in moving along with the dynamic industry. Such as there is
increasing number of malnutrition cases and increasing health concerns. Further there are
restraints of high process of organic foods snacks that is coupled with impediments faced in
procurement of raw materials (Roppelt, and Royo Trallero, 2017).
Opportunities:
There are opportunity for Ella's kitchen where there are more government initiatives. That is
USDA Nutrition assistance programs that are supporting baby food segment and snacks for low
income families.
Threats:
There is a threat to procure raw materials in new markets. Another major difficulty is supply
chain discrepancies.
From the above discussed SWOT analysis of Ellas kitchen it can be critically analysed
that this brand had the expansion opportunity in markets of US and this was utilised by them for
purpose of establishing themselves successfully.
Hain celestial acquired UK kid's food maker of Ella's kitchen and the sum paid was
undisclosed. Ella's kitchen in year 2003 had already its presence in Norway, Sweden and US
addition to their domestic countries (Pattnaik, Singh and Gaur, 2020). Ella's kitchen is
positioned to achieved higher significant growth to expand in Europe. There have been
statements that there is a prospective growth for Ella's kitchen that is predicted by utilisation of
their existing manufacturing facilities.
Market entry strategy: Acquisition is a entry mode that can help a organisation in aligning
control of another form by purchasing their stocks, exchange of stock and in some private firms
there is paying of a purchase price. It is a transaction where a organisations gets control of
another organisation.
Benefits: Acquisition is entry mode that is very helpful in ensuring fast entry and establishment
of operations in a completely new market.

Disadvantage: There is involvement of high cost and presence of integration issues that might
lead to some integration issues in the already established markets.
Acquisition has been one of the best strategies for Ellas kitchen as it has lead to generation of
many benefits such as:
 There has been gaining of staff with high quality, skills and knowledge
 There is easy accessibility to other assets and funding for high development
 there can be access to more sales and new customer base
 easy diversification of products.
 There has been reduction in overhead and overall cost
Acceleration of growth
There was recruitment of managing director in US fir launching of new products.
Walmart had 4000 stores and they are serving approximate 245 million of customer each week
(Rottig and de Oliveira, 2019). It is also a parent brand of ASDA. Ellas kitchen was acquired by
parent company Hain celestial that lead to enhancement of turnover of Ella's by 36% in the year
2012 that was accounted to 41.2 million pounds, there was increase in overseas sales by 76
percent. They also started selling troufh American grocery chains that is Kroger and whole foods
market.
Market Review potential marketing strategies
According to view points of Nicola Kemp, 2015 There has been use of specific marketing
techniques that has helped Ella's kitchen in successful establishment in their international
markets. Communication mix refers to the use of specific methods for promoting a brand to its
target customers (Gulanowski, Papadopoulos and Plante, 2018). It consist of element such as
advertising element, personal selling, discount/promotions, Public relations, direct marketing,
event sponsorship. Paul Lindley is a trained accountant who had no traditional marketing
experience he successfully hold one of UK best selling baby food brand. There have been use of
certain techniques for establishing in their new markets that is US as mentioned below:
Ellas kitchen used advertising as a approach for the purpose of achievement of higher
sales in this as strategy of marketing communication:
Advertising:
Building of a brand value: Ella's kitchen has been able to build their brand value by
articulating a clear message and employing individuals with high passion.

Story behind a Brand: The more attractive a story behind origin of brand more it helsp in
attracting people. Such as Ella's kitchen have been able to convey how Lindley daughter Ella was
a fussy eater and recipes were originally made for Ella. This value helps them in connection with
people as Lindley rightly says that brand is a way a person is living a business and not just the
way communication is made.
Consumer obsessed: Paul Lindley is using a slight unconventional view of reaching to its
target customers. He is using a creative, honest approach. Apart from this he is willing to think as
a toddler in order to create products.
Continuous expansion: Ella's kitchen is a brand in which Lindly is willing to make
continuous expansion specially in United states (Hoffman, Munemo and Watson, 2016). There
is approaching to Johnson & Johnson & lo-real that can help in having higher impact on
disruptive market.
Digital strategy: The digital strategy used by Ellas kitchen is fundamental part of their
communication strategy in new target market that was US. In this there is development of
connection with parents with right information at right time. Facebook community of Ellas
kitchen consist of association 69000 individuals.
TV commercials: There is use of TV ads as 74 percent of parents are going online at
same tome while watching TV and they are spending 14 hours every week. These ads
complement Strategy of reaching parents and community building to seek information. They
believe that being a emotional brand best suitable strategies is use of organic and social channels.
Identification of market gaps: There are many market gaps that have been identified in
their new markets that is US. For this there is focus on creation of packaging and product formats
to solve challenges of consumer There was creation of a new innovated product that is “Spouch:
in dried cereals that helped in having more choices for parents. Their maximum marketing
budget is spent of becoming leaders to understand families and execute the messages.
Above discussed have been some of the marketing strategies that were used by Ella's
kitchen for the purpose of their market expansion in their new target market that is United stages
in year 2012-2013.

CONCLUSION
It can be summarised that global markets are completely dynamic that is they are
changing very fast because of different trade policies. With globalisation organisations
functioning at different levels are willing to establish themselves in new markets, for this there
are different entry strategies that can be adopted such as acquisition, import, export techniques
according to organisational suitability. Further according to available opportunities a particular
market is selected by a organisation. There are different strategies that are part of communication
mix, for small organisations there is use of advertising technique for promotion and marketing of
the brand. Marketing communication mix is a concept that can be very helpful in selection of a
particular option for organisation to make their target customers aware about the products &
services that are offered. It leads to establishment of a direct or indirect communication with
their Present and future customers. It is one of most effective techniques that can help in having a
competitive advantage.

REFERENCE
Books & Journal
Ang, S.H., Benischke, M.H. and Hooi, A.W.L., 2018. Frequency of international expansion
through high control market expansion modes and interlocked directorships. Journal of
World Business .53(4). pp.493-503.
Boso, N., Oghazi, P. and Hultman, M., 2017. International entrepreneurial orientation and
regional expansion. Entrepreneurship & Regional Development, 29(1-2), pp.4-26.
Gulanowski, D., Papadopoulos, N. and Plante, L., 2018. The role of knowledge in international
expansion. Review of International Business and Strategy.
Hoffman, R.C., Munemo, J. and Watson, S., 2016. International franchise expansion: the role of
institutions and transaction costs. Journal of International Management, 22(2), pp.101-
114.
Pattnaik, C., Singh, D. and Gaur, A.S., 2020. Home country learning and international expansion
of emerging market multinationals. Journal of International Management, p.100781.
Roppelt, C. and Royo Trallero, C.A., 2017. Trust and Relationship Building during an
International Market Expansion: The case of Elekta.
Rottig, D. and de Oliveira, R.T., 2019. International expansion of Chinese emerging market
multinational corporations to developed markets: A qualitative analysis of post-acquisition
and integration strategies. In Chinese acquisitions in developed countries (pp. 37-53).
Springer, Cham.
Shibata, S., Uemura, R. and Suzuki, T., 2016. Evaluating the effectiveness of repricing for
market expansion in the Japanese drug pricing system. Therapeutic Innovation &
Regulatory Science .50(6). pp.751-758.