Strategic Market Entry: Hello Fresh's Plan for Sweden & Global Trends

This report examines Hello Fresh's international marketing strategy for entering the Swedish market, focusing on Sweden as a new market for Green Chef, a subsidiary. It explores optimal market entry strategies, recommending a joint venture with Amazon due to the increasing trend of online purchasing in Sweden and the benefits of shared risk and investment. The report further discusses the application of global trends such as ignoring dine-in, cashless delivery, snackification, and selling connected products within the local Swedish environment. Finally, it analyzes social media standardization and adaptation strategies, advocating for adaptation to effectively communicate with customers through various social media platforms. This detailed analysis provides a comprehensive overview of the strategic considerations for Hello Fresh's successful market entry into Sweden.

International Marketing
Management

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
Market Entering Strategy.......................................................................................................2
Global trends and their application in the local environment.................................................4
Social Media standardization and adaptation.........................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
International marketing refers to the application of several methods and principles of marketing
that are applied by the organisation in several countries. The objective of marketing on an
international basis is to ensure that the company is able to reach all the customers across the
world. International marketing is also known as an extension in the strategies of local marketing
techniques where the target audience is of a higher number. The focus of the marketers is on the
identification, targeting and positing of the products and services that are currently delivered by
the company (Alam and et. al.,2019). The organisation creates a marketing plan along with
budget and strategies through which they make the general public aware about the products,
services and offers that they are offering. In this report, Hello fresh is considered which is a
largest meal company based out in different parts of Berlin, Germany with major operations
established in United States, Canada and some parts of Western Europe. This reports covers the
optimum market strategy that the company will be applying to market their products in Sweden.
Along with this the modes of communication and trends are also discussed.
MAIN BODY
Market Entering Strategy
Hello fresh is one of the largest kit company that deals in easy to cook products, the
organisation was originated in Berlin, Germany. The organisation started its operation in the year
2011 where the major objective of the company was to provide the families with groceries and
recipes so that they can prepare fresh food in a short span of time. This delivers the require
material at home so the people are not required to plan and step out to buy groceries from the
offline market (Alsamydai, 2019). The target market that the company is currently looking for
falls under the demographic factor of the age. They target the people in the age bracket of 30 to
50 years as they are the ones in the houses who buy groceries. They are generally working
businessman’s and professionals who do not get enough time to buy plan and buy groceries
according to their requirement. Hello Fresh is a company that is looking for expanding its
operations in other countries where the major concept would be providing vegan and organic
recipes along with the required products and ingredients so that the customers can easily plan
their meals.
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Green Chef is another certified company that was founded in 201 as a subsidiary of Hello
Fresh where they provide the customers with meal kits to the customers. The meals, plans and
recipes are of different types such as Keto, Paleo, Organic and plants based diet so that they can
appeal to every type of customers that are there in the market. The major objective of the
company was to provide the customers with healthy meal along with optimum saving of time and
resources. Green Chef is currently looking for expanding its operations in Sweden and they are
required to pick up an option from two types of strategies that they can follow while marketing in
the new country. The organisation has sensed opportunity as currently there is a huge market of
customers that can be targeted with heathy food.
The market entering strategy refers to the planning of distribution methods along with the
setting up of a distribution chain for the goods and services that the company will provide to the
customers (Bayazovna, 2020). The strategy that the company will be opting while entering in the
foreign market is establishing joint venture with amazon, Amazon is one of the most established
and reputed e-commerce platform across the world. With the help of Amazon, the organisation
can develop a good customer base as the e-commerce platform is quite popular and the
organisation can market their products on the application. Amazon has a good understanding of
the customer behaviour on an online basis and how these behaviours can be used to gain
competitive advantage in the market. The good understanding of the local market will be helpful
in establishing a good bond with the local customers residing in Sweden. The increasing trend of
purchasing things online, the company can use this trend for the benefit in the new exposure to
the environment. Due to Covid, the organisations are unable to set up a good market in the
offline area and hence making a good presence in the online world will be helpful for Hello
Fresh in a long term perspective.
The reports have also suggested that the overall business that is conducted in Sweden comes
from the online business where the percentage is more than 75%. Green Chef would like to sell
their products and services online so that they can capture a good amount of market share. The
supermarkets that is the second option is currently risky as increase in the pandemic situation
will increase the guidelines due to which the local supermarkets and stores would be non-
operational.
Another major advantage of jumping into a Joint venture is that the risk and investment
profile will also be shared. Join venture is a scheme under which both the parties that are coming
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into an agreement makes an equal contribution in the business. Therefore, entering into a joint
venture with amazon will be helpful for Green Chef as they will be able to sell their products and
services in the market right from scratch.
Global trends and their application in the local environment
Several globalization trends are being adopted in the local market by organisation so that
they can accomplish the main goal that is to grow and expand their business on an international
level. This is essential as it helps in analysing the current market trends that are there in the
market and further the business will apply strategies in the market (Dmitrijevs, 2020). The
current marketing trends is helpful and helps in adopting the trends in the specific business so
that the attention of the customers can be grabbed. In context of Hello Fresh Company, the
global trends adopted by the company are further discussed below: Ignoring Dine in- This is one of the major trend that is followed these days in which the
demands and needs of the consumers are ever changing. Due to the recent situation, the
social gathering has been limited and people are shifting more towards comfort eating
where they order from the ease of their home. The restrictions that are impose on dine in
facilities automatically creates an opportunity for the business that are delivering food
and services at home. Green Chef has identified this opportunity and is currently focusing
on home delivery of products and services. They can also provide other services to the
customers such take away where the customers will pick up their orders from the
restaurants. Green chef is currently working on the take away services where they will
improve the services with the help of more reach. Adoption to all of these trend will be
helpful and this will positively impact the business. Cashless delivery- As the whole world is moving online, the payment procedures that the
customers follow these days has also advanced. Every customer these days is looking out
for option where they can pay for the food with the online payment procedures. This
helps the people in paying for the products and services on the finger tips and they are not
required to keep cash for the same. Green Chef has introduced several options in their
payment procedure where the consumers can pay for the services and products with any
type they would like too. Trend of snackification- These days eating snacks is one of the most common thing that
is generally followed by people these days. In times like these, most of the companies are
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focusing on the strategies where they offer the type of food that people can munch on.
This trend will be beneficial for Hello Fresh as their expansion will become successful as
most of the brands in this industry ate gaining good amount of revenue. This is one of the
common trend through which the business will be able to acquire good amount of market
share. Selling connected products- The products that the company is offering in different
countries must be connected with lifestyle and culture that they follow. This technique is
helpful for the organisation in acquiring customers as the customers will be able to
connect with the brand and the products that they are offering in the market.
If the organisation is able to well apply these global trends in the organisation than it will
directly constitute to the long term growth of the business. The company should well pack their
products so that the customers can relate to the products that the company is offering. The
company should apply the smooth payment procedure which will increase the customer
experience that will directly lead to customer retention (Gao and et. al.,2020). They must
maintain the quality of products that they deliver online so that they can retain the customers in
long term. Good labelling and packaging is one of the major area that the organisation needs to
be develop in order to sustain in the environment for a longer period of time.
Social Media standardization and adaptation
Maintenance of good communication with the customers helps in identification of needs and
wants of the customers. The products that the company is currently offering will be matching the
demand of the customers. There are two type of strategies that are described by the companies
which will benefit the company and the overall profitability of the business will be increased: Standardization- The single strategy that is followed for a longer period of time will help
in changing the narrative at which the business is viewed. In context of Hello Fresh, they
can further adopt to the strategy so that the communication part can be well established
by the usage of social media and other such platforms. The organisation will save good
amount of cost that they spend on adoption of different types of promotional tools
(Gillespie and Swan, 2021).The recent trends in the market keeps changing and the
organisation will be restricted to adopt to the new changes hence this is an unsuitable
approach for Hello Fresh to adopt.
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 Adaption- This strategy will help the organisation in adopting to new changes that are
there in the environment. Business environment consists is volatile and ever changing due
to which the uncertainty factor in the business is high due to which the business is
required to change the business model in order to sustain in the environment for a longer
period of time (Talay and et. al.,2019). In context of Hello fresh, they have adopted to
this strategy as this helps the company in communicating with the information to the
customers with the help of different social media platforms.
CONCLUSION
From the above report it can be concluded that international marketing is one of the major
area on which the organisation is required to focus while they are expanding their operations in
different countries across world. The international marketing strategy is nothing but an extension
of the current market strategy that the company is following in a domestic market. The foreign
market is open to more challenges and hence the organisation is required to choose a way in
which they can well establish the brand in the new country. The strategies are developed by
considering the product, price, place and promotion part of the business so that the brand can
survive in the competitive market for a longer period of time.
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REFERENCES
Books and Journals
Alam, M.S.A., and et. al.,2019. Impact of digital marketing on consumers' impulsive online
buying tendencies with intervening effect of gender and education: B2C emerging
promotional tools. International Journal of Enterprise Information Systems
(IJEIS), 15(3), pp.44-59.
Alsamydai, M.J., 2019. Marketing Engineering And Making Marketing Decisions. International
Journal of Scientific & Technology Research, 8(11).
Bayazovna, G.N., 2020. Marketing communication strategy and its essence. Вопросы науки и
образования, (1 (85)).
Dmitrijevs, R., 2020. Research on Marketing Strategy of Huawei Mobile Phone in European
Market. Open Journal of Business and Management, 8(03), p.1138.
Gao, W., and et. al.,2020. Branding cultural products in international markets: a study of
Hollywood movies in China. Journal of Marketing, 84(3), pp.86-105.
Gillespie, K. and Swan, K.S., 2021. Global marketing. Routledge.
Talay, M.B., and et. al.,2019. Stock market reactions to new product launches in international
markets: The moderating role of culture. Journal of International Marketing, 27(4),
pp.81-98.
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