Hello Fresh: International Marketing Management for Ireland Report

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This report examines the international marketing management strategies for Hello Fresh, a multinational meal kit company, focusing on its potential expansion into the Irish market. The report explores various market entry strategies, including establishing an authorized branch, direct collaboration, and joint ventures, with a recommendation for a joint venture with Amazon.com. It also analyzes global market trends such as the impact of the COVID-19 pandemic, the importance of sustainability, packaged food preferences, and the demand for healthy food options. The report emphasizes the application of the marketing mix (product, price, place, promotion) and the STP model (segmentation, targeting, positioning) for effective country-specific communication. The conclusion highlights the importance of understanding global trends and adapting marketing strategies for successful international market entry, providing valuable insights for Hello Fresh's expansion plans.
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INTERNATIONAL
MARKETING
MANAGEMENT
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Market entry strategy...................................................................................................................3
Global trends and their application in the local environment......................................................5
Country-specific communications...............................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
International marketing management is basically a function of companies and businesses
which currently operates at the international or global market place. On the other side, such
venture also needs to conduct this function which plans to expand their business operations
globally by entering in another country. Basically, international marketing management function
gives opportunity to a business for effectively promoting its brand at the global market place.
This report discusses the international marketing management function of Hello Fresh business
(Omar, 2017). Basically, Hello Fresh is a multinational company which offers meal kit to
different customer in the market place, and this meal kit of company enables customers for
cooking up a wide range of meals. Headquarter of Hello Fresh is situated in Berlin, Germany,
and currently this business serves in countries, like; UK, US, Canada, France, New Zealand,
Australia etc. But, now upper management of this business has decided to expand its business
operation in the Ireland by using any appropriate way of market entry. Some appropriate
strategies of international marketing have been discussed in this report.
MAIN BODY
Market entry strategy
Currently there are many types of strategies simply available in the market place which
upper management of Hello Fresh can be used for entering in the new market, named; Ireland.
Basically, it has highly required to choose an appropriate strategy of market entry to gain better
outcomes in the market place of Ireland. There are some major strategies of market entry has
been discussed below for the company.
Establish own authorised branch
This is first strategy of entering in the new country or marker place. Basically, this
strategy is currently used by many multinational companies and businesses. This strategy is
mainly used by companies for gaining 100% profit margin after fulfilling the obligation of
taxation (Lee and Falahat, 2019). In this dynamic and modern world, this strategy is considered
as the safest way of entering in another country, because when a company establishes own
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authorised brand or venture in another country, then will be completely owned by the actual
owner of the company.
Direct arrangement or collaboration with a well-established business
This is another major strategy of expanding own business operations by entering in the
new market place. Basically, upper management of Hello Fresh will require to conduct the
market research before using this strategy, because after the research, this business will be able
to know that which established business or company of the selected country is the most
appropriate for direct arrangement or collaboration. For example; according to the current market
situations of Ireland, there is UK based Iceland foods ltd. company is the most appropriate
business to Hello Fresh for the direct arrangement for selling its wide range of products and
services in retail industry of Ireland (Jussani, Vasconcellos and Wright, 2018). In this situation,
upper management of Hello Fresh can coordinate with administration of Iceland foods for selling
its own meal kits by through this established business.
Joint venture
This is another major strategy of market entry, in which upper management of hello fresh
can consider this strategy as well. This is basically very productive and useful strategy of market
entry, and that is why currently it has used by thousands of business in the international market
place. In this situation, upper management of Hello Fresh can approach Amazon company for
making a joint venture for the business operations of new market place, Ireland. Basically,
Amazon.com is the most popular e-commerce business which currently serves in across the
world, including; UK, US, Germany, Ireland, Netherlands etc. However, the management of
company will be required to arrange many meetings the officials of Amazon’s Ireland operations
in order to make a joint venture.
Recommendation
These all are major strategies of entering in the market place, in which upper
management Hello Fresh have to adopt the option of “joint venture”, because when this business
will make a joint venture with Amazon in the Ireland, then it will be able to gain huge profit
margins in the market place (Maymand and Samaeizadeh, 2017). The main reason behind the
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last statement is that Amazon is a highly reputed e-commerce brand which is currently
considered by many people or customers for buying different products and services in the market
place. On the other side, most people highly trust on Amazon.com because its effective levels of
customer service. Basically, the main aim of Amazon is to provide quality products and services
to customers. In this situation, if upper management of Hello Fresh enter in Ireland by making a
joint venture with Amazon, then it will be able to large customer base within its initial time
period of Ireland’s operations. On the basis of this justification, Hello Fresh should choose the
joint venture strategy of market entry.
Global trends and their application in the local environment
There is consideration of market trends is also a very important task to a business, if it is
planning to expand its business operations in the international market by entering in a new
country. In this situation, upper management of Hello Fresh need to analyse which factors are
trending in the market place, because when it has proper knowledge about the market trends,
then it will be able to develop or offer products and services accordingly (Mix and Brand, 2017).
In this situation, there are three major existing market trends has been discussed below which
upper management and marketing team at Hello Fresh should consider while entering in the new
market place.
The corona virus (Covid 19)
Currently the entire world is suffering from the corona virus pandemic, in which this
trending factor can affect to company when it will be expanded own business operations in
Ireland. Basically, after the corona virus pandemic, people or customers like to buy products and
services only from those businesses and companies which has followed all guidelines of the
precaution of corona virus. For example; they visit in such supermarkets and stores where
existing management has provided proper facility of sanitizer. On the other side, customers like
to order online products and services only from such companies which has motivated their
delivery man for wearing the mask while delivering any product or item to customers at their
doors. In this situation, upper management of Hello Fresh will also need to take steps towards
protecting own customers from the infection of corona virus when they will purchase meal kits
from company.
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Rethinking sustainability
This is another major factor that is currently trending in the market place (Matarazzo,
Resciniti and Simonetti, 2019) Basically, upper management within almost all businesses is
planning to rethink for sustainability, because it is very necessary for gaining sustainable profit
as well as growth in the current pandemic time period as well. In this situation, upper
management of Hello Fresh will also need to change its mindset for thinking about the
sustainable growth in new market place, named; Ireland.
Packaged food
After the corona virus, people or customers get scared for buying unpacked food and
beverage items and products. In this situation, upper management at Hello Fresh will be required
to improve its packaging technique to deliver meal kits to customers safely without any defect.
On the other side, well packaged food item cannot infect people or customers from corona virus,
and this is why most people in across the world demanding food products with effective
packaging (Chin and Mansori, 2018). After considering this global trend, existing company can
gain huge competitive advantage in its operations of new selected market place.
Healthy food
The concept of healthy food and meal is also trending in the market place, in which upper
management of Hello Fresh has highly required to consider this market trend as well. Basically,
most people are literate in the market place, and they know the value of health body, so they are
choosing only healthy food and beverage items in daily live, because healthy food always very
positively affect to human lives. In this situation, upper management of Hello Fresh have to
maintain an extra-ordinary quality of own products and services, and by maintaining effective
quality, this business will be able to offer healthy food in the market place of Ireland.
Recommendation
There are upper management of Hello Fresh company has highly required to follow all
global market trends, because this step will be able to busines for systematically understanding
the actual needs and wants of customers (Rundle-Thiele and et.al., 2019). On the other side,
while entering in new market place, the management of company have to use the marketing mix
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strategy. Basically, marketing mix is very appropriate strategy of marketing which is currently
used by many businesses. This strategy will aware company about four Ps of marketing which
has been discussed below. On the other side, upper management have to focus on offering
quality meal kits with proper pricing for gaining huge competitive advantage and profit margins
in the market place.
4Ps of marketing mix
This strategy of marketing generally discusses four key areas of marketing,
Product: Hello Fresh has decided to offer meal kits in the new market place. Basically, the
company has used various approaches of operations management while developing this product
for maintaining an effective quality. The management has claimed that, this meal kit will provide
an excellent experience and satisfaction to customers.
Price: This company has decided to use competitive based pricing strategy to gain huge
excellent competitive advantage.
Place: Retail industry of Ireland is the chosen market place for this business.
Promotion: Marketing team of company has decided to use traditional and modern marketing
strategies for effectively promoting own brand at Ireland (Tafesse and Skallerud, 2017).
Country-specific communications
Upper management of Hello Fresh need to establish an effective communication with
local people of Ireland. On the other side, it needs to use different tools for the segmentation and
targeting customers in the market place. There is STP model of marketing has been used below
for systematically targeting different customers in the new international market place.
STP model
STP model is considered as a very innovative marketing strategy, because it provides an
excellent outcome to various ventures in the market place. In this situation, upper management of
Hello Fresh will also need to order its marketing management for using this model in own
business operations of Ireland (Maslova, Bozhuk and Smirnova, 2019). Basically, STP term
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projects three key stages of targeting customers in market place, in which these all stages of
model have been discussed below;
Segmentation: This is the first stage in the STP model, in which the management of company
have to take step towards turning its large market into small segments of market. It can divide
large market on the basis of many factors, like; geographically, demographically etc.
Targeting: This is the next stage under the model which can be used to target different customers
in the market place. The marketing team of Hello Fresh can target customers in Ireland on the
basis of their personal factors, like; ethnicity, interest, income status, attitude and culture etc.
Positioning: A perfect positioning of products and services is very necessary to existing
company for delivering its products and services to customers on time (Quach and et.al., 2019).
It should focus on developing own supply chain.
CONCLUSION
It can be concluded that international marketing management’s concept is very essential
to the management of Hello Fresh, because currently this business serves in many countries. This
concept will play an excellent role to business when it will be expanded own business operations
in the global market place by entering in Ireland. It can be also concluded that, upper
management of venture have to consider global market trends also for gaining very positive
outcomes in the market place.
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REFERENCES
Books & Journals
Chin, J. H. and Mansori, S., 2018. Social marketing and public health: A literature
review. Journal of Marketing Management and Consumer Behavior. 2(2).
Jussani, A. C., Vasconcellos, E. P. G. D. and Wright, J. T. C., 2018. Marketing
internationalization: influence factors on product customization decision. RAUSP
Management Journal. 53(4). pp.555-574.
Lee, Y. Y. and Falahat, M., 2019. The Impact of Digitalization and Resources on Gaining
Competitive Advantage in International Markets: Mediating Role of Marketing,
Innovation and Learning Capabilities. Technology Innovation Management
Review. 9(11).
Maslova, T. D., Bozhuk, S. G. and Smirnova, D. V., 2019. Marketing changes management.
Matarazzo, M., Resciniti, R. and Simonetti, B., 2019. Cause-related marketing for successful
cross-border post-acquisition performance. International Marketing Review.
Maymand, M. M. and Samaeizadeh, A. H., 2017. Explanation of the “Strategic Marketing
Management” Model and verification of its impacts on “Increasing the Organizational
Profitability”(Case Study: Iranian Textile Industry). Pacific Business Review
International. 9. pp.125-147.
Mix, M. and Brand, C. B., 2017. Marketing management.
Omar, A. A., 2017. Extensive knowledge in marketing management. Economic and Social
Development: Book of Proceedings. pp.314-321.
Quach, S., and et.al., 2019. Toward a theory of outside-in marketing: Past, present, and
future. Industrial Marketing Management.
Rundle-Thiele, S., and et.al., 2019. Social marketing theory development goals: an agenda to
drive change. Journal of Marketing Management. 35(1-2). pp.160-181.
Tafesse, W. and Skallerud, K., 2017. A systematic review of the trade show marketing literature:
1980–2014. Industrial Marketing Management. 63. pp.18-30.
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