UMKD6Q-15-3: Fentimans' Global Marketing Plan for Japan

This report provides a comprehensive analysis of Fentimans' strategy to launch its botanically brewed soft drinks in the Japanese market. The report begins with a macro-environmental analysis of Japan using the PESTEL framework, examining political, social, economic, technological, environmental, and legal factors. It then delves into a detailed analysis of the Japanese soft drinks market, assessing market trends, consumer behavior, and the competitive landscape. The core of the report focuses on Fentimans' competitive advantage, evaluated using Porter's Value Chain to analyze primary and support activities. The report concludes with an assessment of the brand's potential for success in the Japanese market, considering factors such as the company's leadership, market dynamics, and competitive positioning. The analysis is based on the provided assignment brief, which requires an individual essay format with numbered sections to clearly signpost the evaluation.

Running head: GLOBAL MARKETING MANAGEMENT
Global Marketing Management
Name of the Student
Name of the University
Author note

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Part I
1. Macro Environment Analysis of Japan Market
The overall PESTEL analysis of Japan mainly aims in addressing political, social,
economic, technological, environmental and legal factors which affect Japan in the present
scenario. Japan is often known as the “Land of the Rising Sun” and it is one of the powerful
countries in world.
Political Factors- Japan is considered to be the monarchy wherein the emperor being
the head of the state. Japan plays a substantial role in the overall international community and
is considered to be the major donor. The political environment of Japan is stable; however,
the neighbours of Japan is quite powerful and they are quite challenging (Alt and Iversen,
2017, p. 36). Moreover, Japan tries to maintain a cordial relationship with The United States
of America and they are trying a lot to maintain cordial relationships with other world level
powers such as United Kingdom, France or Australia.
Economic Factors- The entire economy of Japan is strong and it is among the top
five largest economies in world. The special emphasis is provided to the educational system
as it is considered to be the crucial aspect in Japanese culture. It is the third largest economy
in world with total GDP of $4.9 trillion till November 2017. Moreover, in the future, the
economy will be growing for 1.3% till 2019 which is the good symbol for the expansion of
the new companies (Daszkiewicz, 2017, p.34). However, the companies establishing in Japan
have to pay corporate tax on income which is generated by them.
Social Factors- The country has more than 127+ million Japanese residents and it is
ranked as the 10th most populated country in the world. However, Japan faces different kinds
of social challenges such as the birth and death rate. However, in the respective scenario, the
different people or individuals in Japan prefer the Japanese businesses to the foreign ones

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(Ernst and Dolnicar, 2018, p. 82). It makes the trading difficult for the different foreign
organizations. In such scenario, the company which is planning to expand will be excelling in
the respective scenario through performing detailed scanning of the market in which they
prefer to start their business.
Technological Factors- Japan is considered to be one of the advanced
telecommunication systems which is especially with the mobile devices. It is considered to be
the most appropriate as well as advanced countries in the world through the technologically
front. The Japanese are extremely and highly creative in searching the different kinds of
modern technologies wherein automation systems are widely utilised in restaurants or the
food or beverage companies (Game and Apfelthaler, 2016, p. 244). There has been proper
research and development activities which provide the great opportunities in companies in a
proper manner.
Legal Factors- Legal Environment is the other element wherein the employees enjoy
the employment rights as well as benefits which includes maximum working hours or leaves.
The different organizations include the different laws and legislations such as the insurance
related to unemployment and compensation related insurance which will be effective for
improving the effectiveness (Kennedy, 2016, p.365).
Environmental Factors- It is the last factor wherein Japan is considered to be one of
the clean and environmentally friendly responsible nation. However, there are few
environmental challenges which are faced by Japan such as waste management is the
challenge. Trash which is produced by the food and beverage industries or agricultural
companies can be contributing to the great deal of the wastage (Kennedy, 2017, p.355). There
are different disasters such as Tsunamis or earthquakes which are affecting the environment
of Japan negatively.

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2. Soft Drinks Market Analysis of Japan
For making the best decisions in the market, the proper conducting of the market
analysis is the key tool which should be done as it is the assessment which helps in allowing
for determining how the suitable market is forb the entire industry. It will be capable of
analysing the current market scenario and whether the company will be capable of expanding
their business in Japanese Economy in a successful manner. During the year 2019, it has been
seen that there was a certain rate of decline in the volume along with current value terms in
the Japanese market in 2019 (Kowo, Akinrinola and Sabitu, 2018, p.40). However, from the
different reports, it has been noticed that in several cases, it resulted primarily from the
unfavourable conditions of the summer weather during the entire year.
From the surveys which have been conducted, it has been analyzed that the market
conditions are changing to a large extent, however, the Japanese consumers have already had
the well-established type of penchant for the novelty which tries to place a particular onus on
the different companies for coming up with innovation. In the current scenario, the
consumers in the market are becoming highly health-conscious in nature and due to the
respective fact, it is impacting the soft drinks in a negative manner as they are preferring to
consume the different food items which will be helpful for them in maintaining their health
(Kwak et al. 2019, p.55). The innovation along with the new product development are the
two key aspects which needs to be implemented by the different companies for succeeding in
the market as it will be increasing their sales and revenues in the market in a thorough
manner without any kind of difficulties. The consumers are the asset of the companies and
their preferences need to be kept in mind while preparing or producing the different products
in the market (Light and Shahlapour, 2017, p. 205).

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From the reports, it has been analyzed that the carbonated drinks in Japanese market
has been stagnant in the competitive environment and due to which it can be impacting the
entry of the new companies which are planning to expand their business operations. As the
sluggish economy of the Japanese economy is the critical element due to which it is creating
growing awareness among the different individuals regarding the consumption of the
carbonated drinks (Liu et al. 2019, p.13). However, the firms have not left confidence, instead
they are trying to produce the different products with the strong carbonates which helps the
customers in consuming the same and achieving the high health benefits as well.
By confirming the different trends of the previous years, Japanese soft drinks market
appears to be in the good type of health which will be efficient in improving the condition of
the market in the overall manner (Mazur et al. 2016, p.274). The dynamicity of the respective
sector is due to the growth of the per capital consumption as well as the release of the new
drinks which will be implemented and it will be creating efficiency in the production of the
soft drinks successfully.
3. Analysis of the Competitive Advantage of Fentimans Relative to Competitors in
Japanese Soft Drinks Market Using Porter’s Value Chain
The company Fentimans is planning to launch botanically brewed soft drinks in the
Japanese market and they are highly sustainable in contrast to other companies which are the
main competitors in the respective zone.
Primary Activities
Inbound Logistics- In case of Fentimans, the company has been capable of
appointing the different buyers for selecting the finest quality of the botanically produced
fruits and other elements from the producers from different parts of the world (Mullakhmetov
et al. 2016, p. 19). In the context of Fentimans, they try to produce the brewed beer to the

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customers and in such scenario, they are planning to expand their business in producing
brewed soft drinks to the customers.
Operations- In case of the operational activities, the Fentimans Company has been
effective in processing the different raw materials in the end product and launch the same in
the market (Pererva, Nagy and Maslak, 2018, p. 10). The increased level of productivity can
be helpful for the Fentimans in achieving the consistent economic growth, increase in the
profitability as well as the powerful base for achieving the competitive advantage.
Outbound Logistics- Fentimans try to provide the customers with the different
products through the company stores and the licensed stores. Moreover, the different products
which are ready are being sold to the customers with the help of the retail stores along with
warehouses which are displayed (Priporas et al. 2019, p. 10). There are different online
channels available for the company in selling beers to the customers in the market of the
United Kingdom.
Marketing and Sales- In such scenario, Fentimans try to utilise the advertising
techniques which are both traditional as well as modern advertising such as through social
media for attracting high number of different customers in the market as well. Due to the
strong advertising and marketing techniques, the company will be able to improve their
position in Japanese market with the help of adopting the effective advertising aspects that
will be beneficial in improving the effectiveness in a strong manner (Saura, Palos-Sánchez
and Cerdá Suárez, 2017, p. 76).
Service- The customer service is the top most priority of Fentimans which will be
working as the strong competitive advantage for them in entering in the market of Japan. In
addition, the company has been investing in the same for creating the strong brand image in

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providing premium quality brewed soft drinks in Japan for providing customer friendly
atmosphere (Saura, Palos-Sánchez and Cerdá Suárez, 2017, p. 76).
Support Activities
Infrastructure of Firm- The Fentimans Company has the strong infrastructure and
the brand is financially strong due to the excellent kind of management as well as leadership.
The similar type of leadership is needed for them in gaining competitiveness in Japanese
market and it will be creating effectiveness in the scenario of planning for the future in the
brewed soft drinks.
Human Resources- It is the other essential aspect wherein Fentimans have been
capable of becoming strong and they have mainly focused on the training and development of
employees working with the company. Fentimans have been providing the staffs with the
kind of satisfaction which they prefer to receive from jobs (Saura, Palos-Sánchez and Cerdá
Suárez, 2017, p. 76). In such scenario, the same will be implemented in Japanese market in
which the company will be able to focus on the ethical as well as customer oriented through
creating the work environment which will be facilitating collaboration and gain competitive
advantage.
Technological Development- In providing the people in Japanese market with the
botanically brewed soft drinks, the innovation is the critical element which has been adopted
by Fentimans and it will be suitable for gaining competitiveness in the market (Tian, 2019, p.
2864). Information system is used in an extreme manner throughout the business for
supporting administrative functions for improving their production effectively.
Procurement- In the 21st century, the procurement management is the effective
element wherein the brand Fentimans has been setting strict rules which is in relation to the

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selection of suppliers as well as quality of the product which will be giving them with 100%
success in Japan (Tian, 2019, p. 2864).
4. Analysis of Whether the Brand will be Successful in Japanese Market
The brand Fentimans will be receiving high success in the Japanese market as the
management and leadership of the company is efficient. The leaders (management officials)
of the company has been capable of understanding and reviewing the soft drinks market in
Japanese market, and from the external environment analysis, it has been known that it is the
fast-growing economy tries in providing strong fundamentals for the higher level of
consumption of botanically brewed soft drinks (Telegraph.co.uk, 2020).
From the economic and social analysis of Japan, it has been noticed that the country
has high GDP which means that the customers who prefers to consume such botanically
healthy soft drinks are ready to spend a bit more for receiving the best products in the entire
competitive market successfully. It will be becoming high popular brand in the market of
Japan as it is witnessing the strong flow of the investments and due to the same, it is
considered to be the improving economy and Japan has started to stand out once more as the
place of business growth and financial gain in a successful manner (Wan et al. 2019, p.
100522).
Japan stocks look a bit cheaper in nature in comparison to the other countries and is
massively under researched in the recent times. From the surveys, it has been found that the
country has the capability in achieving the effectiveness and Fentimans will be growing
strongly with the help of the botanically brewed soft drinks as the customers are preferring to
consumer healthy food items in a successful manner (Xiaobo et al. 2017, p. 15).
Part II

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Recommendation and Justification of Entry Mode for Fentimans in Japan Market
From the analysis of the external environment of Japan market, it has been found that
the most recommended entry mode which will be effective for Fentimans in entering the
market of Japan is “Exporting”. Exporting is considered to be the easiest technique for
entering in the international market and therefore, there are different firms which begin the
international expansion with the usage of the respective model. Exporting is considered to be
the sale of the different products along with services in the foreign country which are mainly
sourced from the home country. With the respective utilisation of the respective entry mode,
Fentimans brand are capable of achieving the high level of profitability in Japan and they will
be able to attract the large group of customers in the market successfully.
Through the adaption of the Exporting Entry Mode, there will be increase in the sales
and profitability of the company in an overall manner. The sale of botanically brewed soft
drinks in the company where it never existed previously will be boosting the sales and
increases the level of the revenues in a proper manner. Additionally, the Fentimans brand will
be selling the botanically brewed soft drinks through which it will be enhancing the domestic
or international competitiveness (Xiaobo et al. 2017, p. 15). Being competitive in the
international market will be helping the organizations in acquiring the different strategies
which will be helping them in international arena.
Moreover, through the usage of exporting in the Japanese market, there will be
gaining of the global market share. By going, the Fentimans company will be participating in
global market as well as gain the piece of the share from the huge kind of international
marketplace successfully. Additionally, Fentimans brand has been capable of understanding
and analysing the different kinds of loopholes and the viewpoints of the customers regarding
the soft drinks and in such scenario, the brand has been capable of introducing the botanically

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brewed soft drinks which will be helpful for improving their position in the market
successfully (Xiaobo et al. 2017, p. 15). The gaining of the new knowledge as well as
experience will be helping them in analysing the growth related prospects of organization and
it will be helping them in yielding the different valuable information for which, the company
will be able to improve their position in the competitive market of Japan and it will be
capable of receiving the most usefulness of the product in a capable and suitable manner
(Zhanglan, Awino and Ogolla, 2019, p. 298).
Lastly, when the exporting aspect takes place, the company Fentimans need to give a
proper thought to packaging, labelling along with pricing the offerings in a different manner.
In the terms of packaging as well as marketing, the company will be required to let their
potential buyers understand the fact that the proper effectiveness is needed while offering the
potential buyers in understanding the choices through which the company will be able to
deliver the best products and services within the specified deadline.

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