Green Chef: Evaluating Countries for International Market Expansion

This report provides a comprehensive analysis of Green Chef's international market selection strategy. It begins with an introduction to international marketing and the company's expansion goals. The core of the report focuses on the evaluation of six key criteria: opportunities, market risk, government regulations, competition, capital investment, and consumer preferences. These criteria are applied to eight countries (Denmark, Austria, Germany, Belgium, The Netherlands, Luxembourg, Switzerland, and Sweden) to determine the best markets for expansion. A detailed table compares these countries based on the six criteria. The report then selects and justifies the choice of Switzerland and Denmark as the top two countries for expansion, citing factors like high demand for organic food and favorable market conditions. The conclusion reiterates the importance of marketing in evaluating market conditions and emphasizes the potential for high profit margins in the selected countries. The report includes references to support its findings.

21807723
INTERNATIONAL
MARKETING MANAGEMENT

TABLE OF CONTENT
• INTRODUCTION
• EVALUATION OF SIX CRITERIA, WHY THEY HAVE BEING SELECTED, THE REASON THEY ARE PARTICULARLY SUITABLE
FOR EVALUATING DIFFERENT COUNTRIES IN SELECTING GREEN CHEF’S MARKET SELECTION
• TABLE RELATED TO COMPARISON BETWEEN EIGHT COUNTRIES IN ORDER TO SELECT BEST FOUR COUNTRIES FOR
EXPANSION
• SELECTION OF FOUR COUNTRIES
• ARGUMENTS PERTAINING TO TOP TWO COUNTRIES, WHY THEY HAVE BEEN SELECTED
• CONCLUSION
• REFERENCES

INTRODUCTION
 International marketing can be termed as multinational process that involves planning
and implementation of various concocts of marketing mix that is price, place and the
way to promote products so that maximum number of individuals attracted in the
company.
 Marketing is one of the important function that involves promotion of product and
services, brand image to people living in the society so that more sales and profit can be
enjoyed by the firm.
 Hello fresh is planning to grow its business operation through one of its brand Green
Chef that focused on delivering healthy and organic eating.
 This presentation has consist of six criteria that are used to evaluate the countries for
expansion of Green chef in new market.

EVALUATION OF SIX CRITERIA, WHY THEY HAVE BEING SELECTED, THE REASON
THEY ARE PARTICULARLY SUITABLE FOR EVALUATING DIFFERENT COUNTRIES IN
SELECTING GREEN CHEF’S MARKET SELECTION
 Hello fresh is company that has currently operation in twelve countries and its website offer deliveries of over 280
million meats kits in 2019 and customers based of 4 million around.
 In recent scenario, enterprise has planned to expand its business operation in new countries with an motivate to enjoy
high profit margin and sales volume (Bagozzi and et.al., 2018).
 The six criteria that can be used for selection of particular country in which Hello fresh can expand its business are
opportunities, risk present in specific market, capital investment or efficiency, preferences of people or market
condition, competition in the market and government regulation.
 So the several criteria that has been used in order to compare seven countries can be explained as follows:

CONT.
 Risk: It is the second factors that is useful in evaluating the selection of
market as there is risk associated while expansion of business into new
country.
 Government regulation: Each country have its own rules and
regulation that is responsible for controlling operation of business so that
no undue harm can be caused to any one.

CONT.
 Competition prevailing in the market: The forth factor that has been selected for evaluation of seven market is level
of competition prevailing in each market. The more is the competitors in market less the organization will able to
expand its business operation in limited time frame. There is helps in identifying that company need to grow its
business in country that have minimum number of competitors.
 Capital investment or efficiency: The another points which has been selected from evaluation of market is total
capital investment or number of companies that are interested to make investment in the country with an motivate to
earn return. The more capital investment in particular industry as well as country helps in selecting specific market
(Hasanpoor and Mashayekh, 2017).

TABLE RELATED TO COMPARISON BETWEEN EIGHT
COUNTRIES IN ORDER TO SELECT BEST FOUR COUNTRIES
FOR EXPANSION
 In order to make comparison between eight countries, six main criteria has been used that helps
in taking right decision pertaining to expansion of business in particular market condition for
benefits of company.
 Denmark, Austria, Germany, Belgium, The Netherlands, Luxembourg, Switzerland and Sweden
are eight country in which Hello fresh has an option to grow its business in order to enjoy higher
revenue and more customers in the organization (Lancaster and Massingham, 2017).

EVALUATION OF COUNTRIES
Opportunities available in market Risk Government regulation Competition prevailing
in the market
Capital investment or
efficiency
Market condition or
preference of people
Denmark It has been identified that in 2018, the
organic food market of Denmark had a
share of 14.4% that show overall
increase to 10% as compared to 2008.
Tax is one of risk
associated in Denmark as
23 tax payment need to
be made by business.
The government has
made free trade policy.
The Denmark has limited
number of competitors in
organic food products.
22.71 is the capital
investment in Denmark.
The demand of organic
food in Denmark is high
that is around 312 euros
spend by people.
Austria The organic food business have total
market share of 23.4%.
Political risk Australia is committed to
free trade liberalization
likewise for
manufacturing company
the tariff is 3.5 duty
(Nicolas, C., Valenzuela-
Fernández, L. and
Merigó, J. M., 2020).
There are large number
of competitors in organic
food industry.
Capital investment is
25.47 in 2019.
The household of
Australia are more likely
to spend their money on
organic food. Such as
average 148 euros per
year.

Germany The revenue of organic
food, has grew from
5.85 billions to 11.97
billions euro in 2019.
Trading Across
Borders
Germany has adopted
harmonized trade
system,.
48% are competitors in
organic industry like
Artisanal, Hipp GmBh
and Covertrieb KG 7.2
and 4.9 respective.
21.39 is the capital
investment in
Germany.
The demand of organic
products is 10% of
global demand that is
around US$4.8bn in
2019.
Belgium From the secondary data,
it has been identified that
organic products are not
purchased by people on
frequent basis.
Brexit and paying taxes. Common external tariff
has been applicant to
other countries as well as
Australia.
Carrefour Belgium and
Ahold Delhaize are two
main competitors that
have each market share
of 20%.
24.95 Demand increased from
1.5% to 3.2% of organic
products.
The Netherlands The organic segment of
The Netherlands is
around 6.2%.
Trading Across Borders
(Omar, 2017)
Three type of import
levies on goods such as
VAT, excise and
consumption tax and
import duties.
There are large number
of companies operating
in food industry that is
5200.
21.28 Organic food has 2.2%
of global demand.

Sweden The organic food
market share in
Sweden is around
18.3%.
Local regulation. Import trade rate is
12% for food and other
services.
39.4% is competition in
organic food industry
such as Arla food
Amba, Hipp Gmbh and
Co vertrieb.
25.23 2.0% and US$958.6
mn
market share.
Switzerland While, the organic
market share of
Switzerland is 3.9% in
2019 as per secondary
research.
Highly regulated market. The agriculture foods
products have 34.2% of
tariff.
There are three main
competitors in organic
food industry such as
Emmi group, Artisanal,
Thursella Ag and other.
So there is around 30%
competition.
22.34 4.0%
was actual demand of
organic food products in
Switzerland between
2019-2024.
Luxembourg The market share of
organic products was
around 3.7% in 2010
which has increased to
8% by 2018.
Less demand of
customers.
Tariff rates in
Luxembourg was around
1.69%.
There are around 130
organic food producer in
Luxembourg (Park,
2020)
17.43 Organic food products
are demanded by only
1% of consumers.

SELECTION OF FOUR COUNTRIES
 Switzerland: It is highest demand of organic
food products out of various countries in the
world as per 2018.
 Denmark: People of Denmark make purchase of
organic products 13.3% as per 2017.

ARGUMENTS PERTAINING TO TOP TWO
COUNTRIES, WHY THEY HAVE BEEN SELECTED
• From the above analysis and secondary research it can be interpreted that Switzerland and Denmark are two major
countries in which Hello fresh has planned to expand its business operation in order to earn maximum return. These two
countries are better for expansion as compared to above four alternative options can be illustrated as follows:
• Denmark: It has been find out that there is 10% increment in demand of organic products which clearly show an
opportunities. At the same time, government is also encouraging more companies to start business in similar field so that
people can stay fit and healthy for longer time frame.
• Switzerland: Furthermore, it can also be justified that Switzerland is another country option which can be used by Hello
fresh to expand in order to attract more customers and enjoy high profit margin.