Global Marketing Report on International Market for SME: Analysis

This report provides a comprehensive global marketing analysis for Hedonism Drinks Limited, a UK-based SME specializing in wines and spirits. The report begins by outlining the company's background and internationalization motives, highlighting the potential benefits of expanding into new markets. It then compares the UK and Indian markets, considering factors such as market stability, consumption patterns, and population demographics. The study proposes a joint venture as the preferred market entry method, explaining its advantages for the company. Finally, the report examines the communication mix marketing strategy, including advertising, personal selling, and sales promotions, as the potential marketing strategy for success in the international market. The report aims to provide insights into how Hedonism Drinks Limited can successfully expand its business internationally, particularly into the Indian market.

TO PRODUCE A
COMPREHENSIVE GLOBAL
MARKETING REPORT ON AN
INTERNATIONAL MARKET FOR A
SME

EXECUTIVE SUMMARY
In the below report, Hedonism Drinks Limited Company had been chosen for the
comparative study of the global marketing report. Hedonism drinks limited is a UK based SME
who sells wines, spirits etc. In this report internationalization motives had been discussed which
might influence them to move into a new market. After this two international market where they
will operate have been compared which are United Kingdom and India. United kingdom had
been chosen as the first international Market as it the country where Hedonism drinks limited
operates currently. India had been chosen as the second International market as the market for
both hard and soft drinks in India is quite good and is a growing market. Method of market entry
chosen by hedonism Drinks was Joint Venture. It is a method where the company who wants to
enter into that market can make a joint venture with a local company. Potential marketing
strategy that had been chosen by Hedonism Drinks Limited was Communication mix marketing
strategy. it is a marketing strategy which is also called promotion Mix strategy. In this
advertising of the companies products, personal selling, public relations, direct marketing and
sales promotions is involved.

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
Background of the company........................................................................................................1
Internationalization motives.........................................................................................................2
Global marketing Model..............................................................................................................3
Method of Market Entry..............................................................................................................4
Potential marketing Strategies.....................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Today each and every company wants to expand their business internationally. Whether
it is in retail sector or in any other sector. There are various factors that should be researched first
as they can influence a companies entrance in international market. It is important especially for
SME organizations i.e. for small and medium enterprises to study the global market and then
accordingly enter into a new international market in order to expand their business. In this
Assignment internationalization motives that might influence an SME to enter into a new
international market are discussed, Both UK and Indian international market are compared for
the chosen SME, based on this a market entry method has been chosen which was used by the
company to enter into the new market. Then the marketing strategy used by the company for
their success into the international market has been discussed. For this assignment the Small and
medium seized enterprise that has been chosen is Hedonism Drinks Limited. Hedonism drinks is
a UK based SME who sells wines, spirits etc.
MAIN BODY
Background of the company
Hedonism drinks limited is a small and medium sized enterprises which is a private
limited organization which is basically a United Kingdom based company (Cuervo-Cazurra,
Narula and Un, 2015). It started trading on British market since 2006. the main business of this
company is retail sales of beverages in all the specialized stores of the UK. The main products of
this company are wines, spirits like whiskey, gin, brandy etc. they also provide wine tasting to
some of the customers. Since 2012 they started to grow and establish themselves. They provide
one of the top most and good quality wines and spirits to their customers. They sell more than
6500 types of wines and 3,000 types of spirits to their customers and is counted among one of
the best wine sellers in UK. They regularly host wine tasking with top winemakers so that their
customers can get an unique insight in the production. Not only this this wine tasting also helps
their customers to expertise and differentiate between all different types of wine bottles. Number
of employees within their company is now continuously growing and today they are of around
50 employees company. If the overall net turnover of the company is seen from past 8 to 9 years
then their turnover is continuously growing and today they are a million pound company.
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Internationalization motives
Today all the company want to internalize and especially growing small and medium
enterprises. The main possible reason for this increase in sales as well as increase in overall
profit of the company (Hawawini, 2016). It also helps the companies to diversify their risk
associated with their operations. Here, potential internationalization triggers or motives that
would influence Hedonism drinks limited to move into a new market. Hedonism drinks
Company also has some internationalization motives that could influence them to move into a
new international market. The main factor that would motivate them is that internationalization
makes an business more successful and robust. They can increase their client base and can
increase their scope to expand. Hedonism Company can increase their sales of wines, spirits and
other drinks in international market and increase their market sales as well as customer base.
This will also help them in reducing their overall cost of labour supply and production. This will
also help them in reducing their risk associated with their business which might saturate or
decline their business (Andaleeb and Hasan, 2016). This will also help Hedonism Drinks
Company to gain competitive advantage in their local market in UK. They can attract more and
more clients not only in the extended international market but also in their local market. As in
their domestic market their overall potential will increase. It will be easy for Hedonism Drinks
Limited to acquire the new international market in which they would step as drinks are one of
those product that is consumed by most of the people today. It wont be difficult for them to
stablish themselves in the new international market (Bischi and Baiardi, 2015). Their business
will not be any more vulnerable and will not fluctuate according to the UK economy.
Another motive of internalization for Hedonism Drinks Limited can be that it will give
them an benefit to exploit differentiating and unique advantages such as brand name, patented
products etc. It will also increase market opportunities for them which will help them to grow in
the international market. Market for drinks products is quite good globally so it will given them a
market opportunity to grow internationally as well as motivate them to expand their business in
the international market. Sales expansion of their products and business will increase their
business and products market value in their domestic market as well as will increase their life
cycle of products. Their can even increase their product types and increase their products range
as they will come in the contact of new other products present in that market (Baumgartner and
Weijters, 2017). Hedonism's can also gain new and important information related to
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international customers which will help them to bring all those changes within their business and
product range.
Global marketing Model
Here, both the international market where Hedonism Drinks Limited would operate will
be compared. The two international markets that are chosen here are United Kingdom and India.
United kingdom is chosen is the first international Market as it the country where Hedonism
drinks limited operates currently. India has been chosen as the second International market as the
market for both hard and soft drinks in India is quite good and is a growing market. The largest
segment of drinks in India is Spirits. In fact it is the third largest growing market in the world. It
is one of those market which is continuously growing in India and is expected to grow more and
more in future years ahead. Scope of sales of drinks sales in India is 100 percent offline and
more than 40 percent online (Panwar and Malhotra, 2018). This will give them a boost and will
help them to establish in the Indian International market easily. If past 10 years sales of drinks is
seen then it has been continuously growing. So, it can be said that Hedonism Drinks Limited
Company can easily grow in Indian market as well as expand their business and products which
will also boost their sales and increase their customer base in Indian Market. If both UK and
Indian market are compared as why only these market are chosen then it will be explained in the
below table.
United Kingdom Drinks Market Indian Drinks market
Drinks market of UK is stabilized i.e. it has
acquired a stability in the drinks market.
Hedonism Drinks Company has stabilized
themselves in the current UK market.
Drinks market of India is Continuously
growing i.e. it has acquired not acquired a
stability in fact if the overall consumption of
the drinks is seen then it has been continuously
growing especially in the drinks market.
Hedonism Drinks Company can increase their
business and product sales in the Indian
market.
Drinks consumption in UK is more than 60
percent.
Drinks Consumption in India is more than
75%.
Population of drinkers in UK is much only Population of drinkers in India is much more
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80% as compared to UK which also gives Hedonism
a scope to grow in Indian market.
Method of Market Entry
There are various market entry methods that can be chosen by Hedonism Drinks Limited
Company which would help them to enter into the Indian market are many but the most suitable
market entry method for for a domestic company to enter into a new international market either
Joint Venture or Partnering (Chen and et.al., 2017). These are one of the best market entry
methods for companies with repeatable business model such as drinks, food outlets etc. and have
presence in their local or domestic market only. Hedonism Drinks Limited can use Joint ventures
market entry method in order to enter into the Indian market. It is a method where the company
who wants to enter into that market can make a joint venture with a local company. So,
Hedonism can partner with a local Indian Company and work together in order to work and enter
into the Indian market. In this situation most of the time risks and profits are shared equally
within both the joint ventures. This will help Hedonism Drinks Limited Company to establish
themselves in the Indian market. For this they can first of all research about the current market
of the India, then study the competition present in the current market, then they need to study the
requirements of the Indian market and based on all this analysis they can partner-up with a
present Company who have already established themselves in the current market of India (Ryan,
2016). They can create a joint venture with one of the top established drinks company in India
who has acquired most the Indian market.
Other than this market entry method Hedonism Drinks Limited Company can use for
market entry in Indian market is Licensing where they need to take an official permission to do
business in the Indian Market. This will given them an entry permit to do business in India
however this method not that much effective as Joint venture method is as it will give them an
identification and a brand value when they enter into the Indian market. This method will also
help them to attract new customers in order to increase their market share. This also helps the
new entrant in many other ways as they need not to invest 100 percent of the new market
(Ottman, 2017). Their are various types of Joint ventures such as equity joint ventures,
cooperative joint ventures or wholly foreign owned enterprises etc. Hedonism Drinks Limited
comp-any can choose equity joint venture as in this both the companies enter into a separate
business joint ventures.
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Potential marketing Strategies
Potential marketing strategy chosen by Hedonism Drinks Limited is Communication mix
marketing strategy(Pappas, 2016). It is a marketing strategy which is also called promotion Mix
strategy. In this advertising of the companies products, personal selling, public relations, direct
marketing and sales promotions is involved. It mostly comprises of two strategies push and pull
strategy. In push strategy product is pushed towards end consumers through marketing channels
to be used and in pull strategy a vacuum of demand of the product is created. For this Hedonism
drinks limited had used communication mix push strategy in order to ensure their success in the
international market. In this strategy through various kinds of marketing activities product is
pushed through retailers and whole-sellers towards the end customers. This will help them to
reach their customers and do marking of their products so that they can understand their products
and buy them.
CONCLUSION
From the above assignment it has been summarized that there are various motives that
would influence Hedonism Drinks Limited to internationalize their business into the new
international market. It has also been analysed that other than United Kingdom India is the best
market for them to expand their business as in terms of drinks India is one of the fastest growing
market with lots of potential. Sales of drinks in India has been continuously growing in last 10
years and there is still a bit of scope of growing. It has also been analysed that the market entry
method chosen by Hedonism Drinks Limited to enter into the new and emerging market of India
they had chosen Joint Venture as the market entry method with the help of which they can easily
establish into the new market. It has also been analysed that the marketing strategy chosen by
them is communication mix strategy for their products that are to be launched in India so that
they can increase their overall sales and customer base.
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REFERENCES
Books and Journals
Andaleeb, S.S. and Hasan, K. eds., 2016. Strategic marketing management in Asia: case studies
and lessons across industries. Emerald Group Publishing Limited.
Baumgartner, H. and Weijters, B., 2017. Measurement models for marketing constructs.
In Handbook of marketing decision models (pp. 259-295). Springer, Cham.
Bischi, G.I. and Baiardi, L.C., 2015. Fallacies of composition in nonlinear marketing
models. Communications in Nonlinear Science and Numerical Simulation. 20(1).
pp.209-228.
Chen, P.L., and et.al., 2017. Pre‐Market Entry Experience and Post‐Market Entry Learning of
the Board of Directors: Implications for Post‐Entry Performance. Strategic
Entrepreneurship Journal. 11(4). pp.441-463.
Cuervo-Cazurra, A., Narula, R. and Un, C.A., 2015. Internationalization motives: sell more, buy
better, upgrade and escape. The Multinational Business Review. 23(1). pp.25-35.
Hawawini, G., 2016. Internationalization: Motives. In The Internationalization of Higher
Education and Business Schools(pp. 17-26). Springer, Singapore.
Ottman, J., 2017. The new rules of green marketing: Strategies, tools, and inspiration for
sustainable branding. Routledge.
Panwar, A. and Malhotra, A.K., 2018. A study on entry methods in international market for
service sector based Indian public sector undertakings. SMART Journal of Business
Management Studies. 14(1). pp.69-81.
Pappas, N., 2016. Marketing strategies, perceived risks, and consumer trust in online buying
behaviour. Journal of Retailing and Consumer Services. 29. pp.92-103.
Ryan, D., 2016. Understanding digital marketing: marketing strategies for engaging the digital
generation. Kogan Page Publishers.
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