International Marketing Report: Daily Juice's UK Market Entry Strategy

This report examines the international marketing strategy of The Daily Juice Company, an Australian fruit juice producer, as it plans to expand into the UK market. The report begins with an executive summary, followed by an introduction that highlights the importance of international marketing for...Read More

Running head: INTERNATIONAL MARKETING
International Marketing
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Executive Summary
This report deals with the international expansion of an Australian fruit juice company, named
The Daily Fruit Juice Company. The company has served the Australian market for the past 25
years and now aims towards international venture in order to explore new business opportunities,
markets and increase the customer base thereby, sustaining in the competitive market. The
company has decided to expand internationally in the UK due to the proactive nature of the
government, stable and steady GDP along with unhealthy lifestyle and eating habits of the UK.
The company has selected the children, the young adults and the adults as the target customers,
as the rate of calorie based fast food intake is highest among this section of people. Moreover,
due to the cheap nature, The Daily Fruit Juice Company has selected franchising as the market
entry strategy in the UK.

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Table of Contents
Introduction......................................................................................................................................3
The Daily Juice................................................................................................................................3
PESTLE analysis & justifying the selection of the UK...................................................................4
Target customers in the UK.............................................................................................................6
Product Positioning..........................................................................................................................7
Suitable market entry.......................................................................................................................8
Conclusion.......................................................................................................................................8
References......................................................................................................................................10

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Introduction
International marketing is a good opportunity for the domestic business organizations, as
this allows them to explore new markets in the host countries and increase the customer base. As
the demand and expectations of the customers in the host country changes with time, the market
becomes saturated thereby, stalling the business (Killing 2012). Therefore, international
expansion is the best option business organizations can avail for sustaining in the competitive
market.
This report highlights the international expansion of an Australian juice company of
named The Daily Juice Company in the UK. The Daily Juice Company used to manufacture
orange juice solely since their establishment. Additionally, the report also consists of the target
customers, product positioning, and the suitable market entry strategy.
The Daily Juice
The Daily Juice is an Australian juice company that produced only orange juices when
the company started. The company started in 1989 with only 12 people committed to a big
vision. The vision of the company was to produce delicious orange juice that melts in the mouth
of the customers. Since the establishment of the company, the orange juice of the company has
been highly favored by the Australian customers. As the demand for the orange juice increased
over the years in the Australian market, they introduced new fruit juices in their collection. The
different types of juices produced by The Daily Company include Nourish Berry, Nourish Green
and Nourish orange. The juices produced by the company come in the family pack as well as
breakfast bottles. The Daily Juice Company has successfully served the Australian market for the

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past 25 years and has become a well-loved staple in the Australian household
(Dailyjuice.com.au, 2017).
PESTLE analysis & justifying the selection of the UK
Political  Stable political environment
 Proactive government working towards the betterment
of the country
Economical  World’s 6th largest economy
 World’s first industrialized country
Social  High rate of obesity
 Unhealthy lifestyle
Technological  Leading center of scientific revolution
 Extensive use of technology in daily life
Legal  Change of legal policies after Brexit
 Suitable tax policies
Environmental  Renewable energy market
 Sustainable business options
Political: The UK is the country with stable political environment thereby, facilitating foreign
investors and business organizations. The political scenario of the UK hardly signifies any
corruption, as the political decisions of the country are still influenced by the British monarchy.
Moreover, the proactive nature of the government makes it feasible for the international investors
and business organizations. The government of the country is readily involved for the betterment

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of the country and the people (Howarth and Quaglia 2013). Therefore, launching of healthy fruit
juice by the Australian company will be completely supported by the UK government.
Economical: The UK has the sixth largest economy in the world that is extremely stabilized
since the past years. Moreover, the UK is one of the first industrialized countries in the world
thereby, making it one of the most suitable options for foreign investors and international
business organizations. According to reports, the current GDP of the UK is $2.62 trillion thereby,
facilitating the growth of various business organizations (Bateman et al. 2014).
Social: The social environment of the UK states high rate of obesity and different types of
diseases. This is due to the unhealthy lifestyle of the country along with lack of awareness about
a healthy lifestyle. Moreover, the majority of the UK population depends on fast food that
thereby, resulting in high-calorie intake (Buccafurri et al. 2013). Therefore, the unhealthy eating
habits of the country provide suitable opportunities for business organizations providing healthy
food options. Additionally, the UK is the country with highest literacy rate.
Technological: The UK is the country that has facilitated most scientific innovations over the
years. The use of technology in the UK is highly facilitated that is beneficial for the business
organizations and the foreign investors. The technological advancements of the UK can be used
by the foreign business organizations to explore the market thereby, expanding the business by
increasing the customer base. Moreover, competition with the companies of the host country is
also possible due to technological advancements of the country (Keirstead et al. 2012).
Legal: The legal framework of the UK is strict thereby, making it difficult for the international
business organizations. The foreign business organizations need to pay taxes that are
considerably higher compared to the tax of pay by the local companies. The international

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business organizations need to maintain the intellectual property rights strictly for conducting
business in the UK (Aiyar, Calomiris and Wieladek 2014). However, after Brexit, there have
been some changes in the legal policies in the UK for the foreign investors and business
organizations that might be difficult to follow.
Environmental: The UK government favors sustainable business opportunities that are
beneficial for the environment as well as for the people. The UK is the country that is highly
concerned with environmental preservation and has undertaken various steps for the benefit of
the environment (Keirstead et al. 2012).
Target customers in the UK
Reports suggest that majority of the people in the UK are living an unhealthy lifestyle
and consume mainly fast foods. As a result, obesity and various diseases due to unhealthy eating
and living habits are noticed in the UK with a staggering 24.9% (Nhs.uk, 2017). According to
reports, in 2014, around 65% of men and 58% of women were obese in the UK that indicated
almost 26% increment of obese people in 2014. Additionally, more than one child in every five
children has been diagnosed with obesity (Health and Social Care Information Centre, 2017).

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Figure 1: Obesity in the UK
(Source: Health and Social Care Information Centre, 2017)
Based on the current statistics of the UK, the target customers of The Daily Juice Company
includes the children, young adults, and adults. As unhealthy lifestyle is noticed within the
majority of the UK population, the company has selected a wide range of target customers.
Therefore, the healthy properties of the juice along with the availability of different fruit flavors
will help in attracting the target customers in the UK.
Product Positioning
As the UK has previously existed and established healthy fruit juices for the people, The
Daily Juice Company needs to position the Nourish Green and Nourish orange fruit juice in a
way that helps in attracting the majority of the customers. Initially, providing free samples of the
new product to the people is the best option (Sweeting 2013). The employees of the company

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can set a stall in a market place and provide free samples of the juice to the customers. This will
allow the company to reach out large number customers of different ages thereby,
communicating with the customers personally. This will help the customers in gaining a better
understanding of the healthy properties of the product thereby, influencing their purchase
decision. Moreover, the company can distribute brochures containing the details of the products
along with advertising both Nourish Green and Nourish orange through television, newspapers,
and billboards (Huettl and Gierl 2012). This will help in letting the customer know the health
benefits and effects of the product thereby, influencing their purchase decision.
Suitable market entry
Based on the analysis of the UK market, The Daily Company has decided to enter the UK
market by using franchising as the market entry strategy. As commented by Ogutu and Samuel
(2012), franchising is defined as the type of ownership in which different owners shares a single
brand name. Therefore, The Daily Juice Company will allow the franchisee to use their strategy
and trademark in exchange of monetary terms. Therefore, the franchisee of The Daily Juice
Company will have to pay some initial fees and royalties based on the generated revenues.
However, as a part of the franchise agreement, The Daily Juice Company will provide required
support such as training and advertising to the franchisee. As franchising is a cheaper and faster
form of expansion than owning new stores in the UK, The Daily Juice Company has selected this
market entry strategy (Leitmannslehner and Windsperger 2012).
Conclusion
In this report, it can be concluded that, after serving the Australian market since the
establishment, The Daily Juice Company has decided to emphasize on international expansion.

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Based on the rate of the unhealthy lifestyle, obesity, and diseases, The Daily Fruit Juice
Company has decided to expand their business in the UK. After analyzing the UK environment,
the company has observed proactive nature of the government along with the potential
requirement of healthy food options. The company has also observed that unhealthy lifestyle is
mostly practiced by among the children, young adults, and the adults. Therefore, based on the
food habits, the company has selected children, young adults, and adults as the target customers.
The launch of delicious and flavor some fruit juice will provide a healthy alternative for the
customers. In order to make a mark and attract the attention of the potential customers, the
company will communicate the products to the customer by providing them free samples of the
fruit juice along with advertising it. The Australian company selects franchising as the market
entry mode, as it is cheaper and easy to expand.

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References
Aiyar, S., Calomiris, C.W. and Wieladek, T., 2014. Does Macro‐Prudential Regulation Leak?
Evidence from a UK Policy Experiment. Journal of Money, Credit and Banking, 46(s1), pp.181-
214.
Bateman, I.J., Harwood, A.R., Abson, D.J., Andrews, B., Crowe, A., Dugdale, S., Fezzi, C.,
Foden, J., Hadley, D., Haines-Young, R. and Hulme, M., 2014. Economic analysis for the UK
national ecosystem assessment: synthesis and scenario valuation of changes in ecosystem
services. Environmental and Resource Economics, 57(2), pp.273-297.
Buccafurri, F., Foti, V.D., Lax, G., Nocera, A. and Ursino, D., 2013. Bridge analysis in a social
internetworking scenario. Information Sciences, 224, pp.1-18.
Dailyjuice.com.au. (2017). About Us – Daily Juice. [online] Available at:
http://dailyjuice.com.au/about-us [Accessed 6 Sep. 2017].
Health and Social Care Information Centre. (2017). Statistics on Obesity, Physical Activity and
Diet. [online] Available at: http://content.digital.nhs.uk/catalogue/PUB20562/obes-phys-acti-
diet-eng-2016-rep.pdf [Accessed 6 Sep. 2017].
Howarth, D. and Quaglia, L., 2013. Banking on stability: the political economy of new capital
requirements in the European Union. Journal of European Integration, 35(3), pp.333-346.
Huettl, V. and Gierl, H., 2012. Visual art in advertising: The effects of utilitarian vs. hedonic
product positioning and price information. Marketing Letters, 23(3), pp.893-904.

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Keirstead, J., Samsatli, N., Pantaleo, A.M. and Shah, N., 2012. Evaluating biomass energy
strategies for a UK eco-town with an MILP optimization model. biomass and bioenergy, 39,
pp.306-316.
Killing, P., 2012. Strategies for joint venture success (RLE international business) (Vol. 22).
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Dynamics: From Franchising to Licensing. Journal of Marketing Channels, 19(4), pp.229-249.
Nhs.uk. (2017). Britain: 'the fat man of Europe' - Live Well - NHS Choices. [online] Available
at: http://www.nhs.uk/Livewell/loseweight/Pages/statistics-and-causes-of-the-obesity-epidemic-
in-the-UK.aspx [Accessed 6 Sep. 2017].
Ogutu, M. and Samuel, C.M., 2012. Strategies adopted by multinational corporations to cope
with competition in Kenya. DBA Africa Management Review, 2(3), pp.69-82.
Sweeting, A., 2013. Dynamic product positioning in differentiated product markets: The effect of
fees for musical performance rights on the commercial radio industry. Econometrica, 81(5),
pp.1763-1803.