MRKT20057 Global Marketing: Beechworth Honey's US Expansion Strategy

This report provides an analysis of Beechworth Honey's global marketing strategy as it enters the USA market. It includes recommendations for market selection, emphasizing targeting health-conscious consumers who demand organic products. Direct marketing is chosen as the entry mode due to its cost-effectiveness. The company adopts a competitive strategy that combines cost focus and differentiation leadership, offering competitive pricing and highlighting unique product features. The marketing mix strategy focuses on advertising and personal selling to create customer awareness and build trust. The report also addresses the challenges of entering a new market and the importance of adapting to cultural differences and government regulations. Ultimately, the report concludes that Beechworth Honey has the potential for success in the US market with a well-executed global marketing strategy. Desklib provides access to similar solved assignments for students.

MRKT20057 Global Marketing
Assessment task 3: Group report and Presentation
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Executive Summary
This report mainly shed light on Global or international marketing. Beechworth Honey
organization entered the USA market. The different recommendation was provided to develop its
international presence in right manner. The Company was recommended to target a specific
market who are health and diet conscious and demands for organic and pure honey. The Direct
marketing was chosen as the entry mode as it is the easiest and cost effective mode to enter the
market of USA. The competitive strategy that was adopted by the company was Cost focus
strategy and differentiation leadership strategy. The company charged low cost for its products as
compared to its competitors and differentiate its product by making comparisons with its
competitors. The marketing strategy adopted by company was advertising, personal selling, etc.
to make customer aware.
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Contents
Executive Summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Company overview......................................................................................................................................4
Recommendation.........................................................................................................................................4
Arguments...................................................................................................................................................6
Conclusion...................................................................................................................................................7
References...................................................................................................................................................8
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Introduction
Global marketing in today’s time is very important for business as it provide them opportunity to
extend beyond the national borders and allow the company to capitalize upon it growth and
experience. In this assignment, the major focus will be done on providing recommendation to the
country which is expanding its business in international market (Leonidou, & Hultman Magnus
2019). The recommendation will be made on the type of the market that company need to select
to target its customer, the way it will enter the foreign market, the competitive strategy used by
the business, and lastly the marketing strategy adopted to make the customer aware of the new
product.
Company overview
The organization chosen to enter the international market is Beechworth Honey Company in
Australia. The company was originated by Jodie Goldsworthy and Steven in year 1992. The
company is rich in family history and has become one of the best brands in Australia. It produces
the best and pure quality of Honey (Manrai 2016). It has a good leadership strategies and
advocacy for bees and for the maintenance and preservation of bee habitats. The company has
the opportunity to expand the market for Beechworth Honey and is expected to succeed in
market of USA. The country has less competitors as there is huge demand for organic honey and
Beechworth provide different products other than honey which is the unique identity of this
product.
Recommendation
1.
Market Selection: Consumption of honey was adopted by general public from the last 15
years. The target market selected for USA are the people who are local minded and want
some health benefits from the food they consume. The products of Beechworth honey are
is desired or consumed by people of all ages. The market for honey, and product related
to it can be attractive to the people who are very health conscious. The consumer of retail
honey products will be middle class and other class people. The consumer of this product
presented at farmer’s market is very young health conscious people who are seeking for
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raw without additives. It is very important to select the right market for customer as this
will help in attracting more and more customers. The company has the competitive
advantage because of its unique products like honey drink, honey cheese and many more.
It will also deliver goods to customer by using online marketing strategy and make them
aware by using effective promotion strategy. The product will be launched in such a
market where it will have excess demand. The feedback of customer will be considered
in effective manner and changes will be made accordingly (Javalgi, & Russell La Toya
2018)
2.
Mode of Entry: The mode of entry to enter the USA market chosen by Beechworth
Honey company is Direct marketing. Direct exporting or marketing means is to sell good
directly to ultimate customers or to agents or distributors. The distributors work closely
with direct marketers as their interest in them. It is cost effective strategy as company do
not have to invest money in production of honey in chosen country, as all goods are
produced in home country (Australia) and then sent to foreign USA for its sale. The
company has to bear transportation cost which is high and likely to increase in near
future. In choosing such mode of entry system there is involvement of four parties:
Beechworth Honey, an importer, a transport provider and the government of the USA.
USA has some of the restriction or demand for importing good that need to be fulfilled by
company to enter directly in US market. The company can also sell its goods online
through its website. This will help in attracting more and more customers as they prefer
online shopping and company can also provide its customer various complimentary and
other offers to enhance the business goodwill and growth in international market.3. Competitive strategy: Competitive strategy is required for business and company as it
helps in gaining competitive advantage over its rivals after analyzing their weakness,
strengths, threats and opportunities. The competitive strategy chosen by Beechworth
Honey to attract the US customer is
differentiation leadership strategy.Here the product
has the ability to differentiate itself from the other similar products and services in the
market by its superior brand quality and effective features that will help company to
charge premium price to cover it other cost (Katsikeas 2018). The company can compare
its honey with other brand and make customer realize that it sells the best product.
Beechworth Honey can also adopt Cost focus strategy to attract customers and increase
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its brand awareness. This strategy will help in targeting a particular segment like
customer who needs healthy food and here the segment is offered lowest price of product
as compared to its competitors. Beechworth honey not only sold pure honey but also
other product which are liked by customers like different flavor of honey, honey drink,
honey cheese and many more which will be liked by customers. Such strategy used by
company will help in dveveloping a good presence in US market and can also make
customer realize the importance of healthy foods like honey for their health (Micheels, &
Boecker Andreas 2017)4. Marketing Mix Strategy: The strategy of marketing mix will help in making customer
aware about the company, its products and services. Marketing mix comprises of four
basic elements like Product, Price, Place and Promotion. The company can define all
these stages as these will help the customer to make comparison effectively with other
companies (Tanusondjaja et. al. 2015). There is the major need for the company to
promote its products as it’s a new brand and customers are unaware of its products and
services. The different strategy that should be used by company to make customer aware
are advertising, personal selling and many more. It should provide free samples to
customers so that they can taste honey and other products and make a buying decision.
The company should distribute its product in all part of the US and should have effective
online or delivery services that helps in delivering good to customer as soon as possible.
The prices of the Honey products should be charged low as compared to its competitors
and this will help in increasing competition in the market. The customer should have trust
on the company and its products and this can be built by adopting new techniques and
methods that attracts customers (Sharma, 2016)
Arguments
Accordingto to Katsikeas, 2018, there are various issues or problems faced by domestic company
to enter international market. The culture of other country is very difficult to adopt and making a
good presence is very difficult as customer do not switch to new product easily. Beechworth
Honey has to do a lot of struggle to attract customers. The market entry method and target
market should be evaluated effectively. There are various challenges that will be faced by
company are tariff barriers, ethics and norm challenges, administrative policies, changes in
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exchange rates and may more. The author also states that one’s the company develops its good
presence in the market than nobody can stop it to earn high profit and develop its presence in all
over the world. In order to sell good online company need to hire best suppliers who have full
knowledge of market and customer taste and preferences. These will help in making customer
aware of its products and help them to deliver in every parts of the country. IN starting company
will also bear high cost for marketing and meeting government needs for international marketing
and later on it can cover its cost by earning high profits (Precourt 2015)
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Conclusion
From the reports, it has been concluded that Beechworth Honey has the potential to have good
presence in international market and this its due to its unique products. Global marketing is not
easy and do not provide secure result. A lot of courage and money is required to grow
internationally. The recommendation provided to Beechworth Honey Company regarding its
market selection, entry mode, promotion strategy and competitive strategy will effectively help
in achieving the business goals in right manner. The company need to take all measures very
carefully and with the advice of experts as one wrong mistake can harm, the company in great
manner.
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