Riversimple Rasa: International Marketing Management Report (IMA7001)

This report provides a detailed analysis of international marketing strategies for Riversimple Rasa, a hydrogen-powered fuel cell electric vehicle manufacturer based in the UK, considering expansion into Canada and Australia. The report employs the PESTLE model to evaluate macro-environmental factors, including political, economic, social, technological, legal, and environmental aspects, for each country. It examines the marketing mix elements (product, price, place, promotion, people, process, and physical evidence) and their implications for successful market entry. The report also identifies and compares the risks and opportunities associated with each market, offering recommendations on the most suitable country and market entry strategy for Riversimple Rasa, supported by relevant theoretical frameworks and practical considerations. The analysis considers factors such as political stability, economic growth, technological advancements, legal frameworks, and social and environmental factors to provide a comprehensive assessment of the market potential in both Canada and Australia.

IMA7001 International
Marketing Management

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
PESTLE model, marketing mix and their merits.........................................................................3
2.1 The macro- environmental risk factors..................................................................................6
2.2 The problems related to the implanting a successful marketing mix....................................8
Recommending the country and market entry strategy.............................................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
International Marketing management is the marketing activity outside the geographical
borders. It can be referred as the application of marketing practices on the people/ customers
outside the country and satisfy their demands and serve in more than one country (Morgan, Feng
and Whitler, 2018). Riversimple Rasa is a hydrogen- power fuel cell electric vehicles
manufacturer located in Llandrindod Wells, Wales, United Kingdom. Founded in 2007, currently
it only operates in United Kingdom and is famous for its lightweight small cars. The futuristic
car manufacturer has decided to expand its business outside UK for the first time. The current
report assess the market potential of Canada and Australia. It investigates the environmental
risks, opportunities and the threats that may be associated with developing a successful plan and
select an appropriate market entry method for the selected market of the two. The report uses the
PESTLE analysis method and other marketing tools that may be required to discuss and
understand various factors that may affect the business of the organization in both the countries.
The report analyses and compare the macro environmental risk factors and the issues related to
implementing a successful marketing mix in the respective countries. The present report contains
recommendations about which country the organization should select for their international
marketing approach are provided with justifications based on various theoretical models and
studying the risk factors of each country.
MAIN BODY
PESTLE model, marketing mix and their merits
For analysis both the market PESTLE model or tool can be use so it gives appropriate
result and company easily identify the best country from them to grow their business. River
simple car manufacture based on hydrogen fuel cell eco company, located in Llandrindod wells,
Wales. Thus, company want to expand their business internally then they first know the market
of the country. As company want to expand their business in Australia and Canada, so they first

know the market potential of the countries. Company also knows the marketing mix of the
country, so they can also compare threats and opportunities related to the successful marketing
mix of both countries. By such tools River simple company can identify which market is better
or helps in growing their business. PESTLE analysis is a concept of marketing principle.
Company wants to expand their business through international marketing, but they want to know
which market is more suitable for them. So, for knowing the macro environment of both the
countries, company adopt PESTLE analysis (Shtal, T.V., and et.al., 2018). This tool used by
company to monitory and analyse macro environment factors that have great impact on
company. Company products are classic and Luxury cares so also required to know the product
requirement in the country.
PESTLE stand for Political, Economic, social technological, legal and environment.
Political factors include trade restrictions, tariffs, political stability, reform, tax policy etc. These
factors find out the extent to which government may influence a company. So, company know
about the politic factors of both Canada as well Australia. Economic factors involve economic
growth, exchange rate, wages rate, inflation rate, interest rate, unemployment, minimum wage
and cost of living. Such factors determinants to economic performance that directly give impact
on company. Social factors include age distribution, health & safety, careen attitudes, culture
expectation and norms, population growth rates etc. These factors help company to plan better
marketing strategies. Technological factors include the development and innovation in
technologies. These factors have great impact on organization operations. Legal factors involve
changes to legislation impacting the employment, access to resources, taxation, material, export
and import. There are certain laws which have impact on the company environment in country.
Environmental factors mainly concerned with effect of surrounding environment and influence
of the ecological aspects.
PESTLE help company in range of organization planning situations. It helps company to
understand external factors in strategics business environment. There are some advantages of the
pestle such as; it is simple approach and easy to conduct and understand. It encourages company
to develop strategic and external thinking. It also allows businesses to sport opportunities and to
take advantage on them. It permits company to anticipate future operations threats and enable to
reduce or eliminate the impact on the company. Pestle also facilitates a broader and better
understanding of business environment. By PESTLE analysis River simple car manufacture

company knows bot market in effective manner that is about the rates of interest, inflation,
wages, unemployment, tax structure of the countries and trade barriers (Buye., 2021). And, also
know about the legal and environment factors which also affect business operation. From this
company get to know about the opportunities and threats in different countries, so they easily
make their decision accordingly. This brings lot of information on the external factors, and
crucial market insights. So, it also helpful in prioritize business activities or operations to achieve
marketing objectives within a time frame. This is very cost effective that why company can
easily adopt it. Pestle is provided deeper understanding about the macro environment which is
very beneficial for the company. The company will select the country by analysis price
strategics, product requirement, products suit in which market, policies and other factors. So,
they select the best of them which is beneficial for the company.
Marketing mix is a set of actions an organization takes to create and market its services
and products to their target customers. It helps to ensure that company are able to provide
customers right products and services at right time and at right place for right price. In marketing
mix there are seven Ps that is Products, price, physical evidence, place, promotion, people,
process. This provides roadmap for the business objective. A marketer can easily influence
customers decision to purchase the company products and services. Arranging and identifying
elements of marketing mix permits company to make profitability decisions at all level. Decision
helps company to develop its strengths and reduce its weaknesses. There are many benefits of
marketing mix that create its importance in businesses:
 Helps in planning a successful product offering
 It helps in be proactive in facing risks
 This helps in learn when and how to promote company products and services to the
customers
 This helps in understanding and identify requirements of the customers
 It helps in developing, planning and executing an effective marketing strategy
 This also helps in making use of business strengths and helps in avoid extra costs
By comparison of threats and opportunities related to successful marketing mix of both
countries so River simple car manufacture company can easily understand in which market they
have to expand their business. The company know the price, process and people of the countries,
so they easily relate that in which market their products is suitable. For promoting company

products they can use digital platform such as Facebook, Instagram, YouTube, twitter to cover
market. By knowing the threats and opportunities company understand in which country having
more opportunities and less threats, and company will select and make decision accordingly. By
comparing marketing mix of Canada and Australia River simple car manufacture select best of
them. Because in many cases marketing plan are failed due to an unclear strategy, rapid change,
poor products, bad quality, unclear communication, internal bureaucracy etc. But if marketing
plan is successful then it’s given benefits to the company such as growing their sales, improve
reputation, etc. For analysis macro environment factors or external factors company use PESTLE
analysis to understand both the market (that is Australia and Canada). And then company easily
select one country and established business.
2.1 The macro- environmental risk factors.
The macro- environmental risk factors are some of those factors that influence the
business operations of the organizations at different places and the organization may not be able
to control them and has to operate by cooperate with them. These factors are political, economic,
technology, social, environmental, legal etc. that influence the business operations (Casañ, Alier
and Llorens, 2021). Riversimple company will also be influenced by these factors during
undertaking international marketing. A PESTLE analysis may be performed to identify these
macro- environmental risk factors and determine the market situation of both the countries, that
is, Canada and Australia.
Political factors: The political factors include the risks and the impact of the political
situation on the organization (Hans, 2018). These factors are highly volatile due to political
instability at global levels; government type and attitude towards trade; business and taxes;
regulation and deregulation of laws; freedom to business organizations and employee laws;
transparency of agreements and corruption level; relations between parent nation and targetted
nation etc. both Australia and Canada have a very stable political environment and good relations
with United Kingdom as well and also these countries support global trade and the governmental
issues do not create much volatility regarding international marketing. But due to the fact that
Canada and UK share various trade agreements and their common existence in NATO, Canada is
a very good option for the UK based organization for making easy deals with the Canadian

government and a bit more frictionless considering the fact that the organization is undertaking
the international marketing for the first time.
Economic factors: The economic factors refers to the finances, supply and third party
risks that an organization face. These factors include the taxes, cost of operations, interest rates,
exchange rates, recession, inflation and other economical influences. These factors are very
unpredictable and sometimes very risky. These risks may occur due to political agreements,
government budget and policies, market competition, customer based demand and supply and the
changing financial potential of local customers. Canada has a good track record in terms of
annual GDP growth and offers low corporate taxes and set-up costs. High literacy rate and
specialized work force of Canada may be beneficial for the organization. On the other hand
Australia has a low inflation rate and high potential buyers. But Australia's foreign taxes and
exchange rates are higher.
Social factors: This refers to the socio- economic aspects and their influence on business.
These risks occur due to social class structure, income differences, fashion and lifestyle,
traditional customs, population growth, religion, behaviours and other social diversities. These
factors are almost harmless if the organization takes care of certain activities and language
during marketing. If the organization fail to cooperate with these local cultures then it may be a
downfall for the brand and image overall.
Technological factors: It refers to the technological risks that an organization may face.
For example- the risk of availability of technological support, data security and cyber crimes etc.
(Sinkovics and Sinkovics, 2020). Unavailability of power resources and level of technology
required for the business operations may become an obstacle for the business. Canada is a highly
advanced country when it comes to technology and the technological advancements are also
favoured by the Canadian government. On the other hand Australia is investing a lot on tech and
power since last decade. Canada may have better tech- support and availability of skilled
workers for Riversimple Rasa.
Legal factors: These are the legal risks and their impact on the business. These risk
factors are due to custom and tax regulations, economic rules, labour laws, customer protection
law, foreign trade laws, internet and information laws etc. Canada has one of the best
international laws and is very favourable and welcoming for foreign organizations (Brzica and
Brzica, 2021). It has a smooth agreement system and very low tax regulations. On the other

hand, Australia has a bit complex international trade law policy and very strict rules makes it
difficult for foreign organizations to operate smoothly. The law system and employee boundation
are not much of a burden in case of Canada.
Environmental factors: Environmental risks that may be considered are climatic
conditions, natural disasters, pollution, availability of resources and environment protection laws.
Weather and environmental factors are very predictable and very easy to calculate (Casañ, Alier
and Llorens, 2021). Canada is not a disaster prone country neither it has a challenging weather. It
is full of resources and the pollution rate is too low and hence pollution laws may be covered
easily. On the other hand Australia is a disaster prone country especially the coastal areas often
get flooded and the desert area is scarce of water. The pollution laws are strict in Australia and
the availability of resources is not the highest as most of it is covered as desert lands.
2.2 The problems related to the implanting a successful marketing mix
Every target market needs a unique marketing mix strategy to satisfy the requirement of
the target customers and also meet the organization goals. Marketing mix is a combination of the
factors such as product, price, promotion, place, people, process, and physical evidence
(Anjani,., and et.al., 2018). It helps in understanding what company offers to the customers,
marketing mix helps in plan a successful products and services offering. In simple words
marketing mix is a set of tactics or actions, that an organization uses to promote their products
and services or brand in the market. Products is an item produced by the company for sales, it
can also offer in the form of the services, products may be virtual and physical form. A product
has a life cycle and end time by which product could be replaced. A product can market across
the national borders. This brings issue or problem od adaptation and standardisation of a product
to meet the customer’s needs and wants with view to suitable into countries culture preferences.
Canadian culture is a mix of French, American and British influences. The American considers
themselves as a melting pot and the Canada more frequently thinks of itself like mosaic. In
America, there is active mixture of the immigrant cultures whereas in Canada newcomers are
likely to keep their traditions and language than to assimilate (Thabit, and Raewf., 2018). River
simple car manufacture company want to expand their business so company must know the
culture of the country where they start their services. This helps company to know the market
where they can start their business and get more and more success. In Canada, immigration rate

is 20 present higher than the America, which makes Canadian population more a culturally
diverse. Canada is liberal politically than the America. Culture can be opportunities and threat
for the company, when company go foe expansion in other country then they have to know the
culture so they can understand in which country they get more success. So, a diversify culture is
an opportunity for the company, but when company expand their business in fix culture where
people are not adapting any new products easily then it became threat for the firm.
Place is a part of marketing mix means how a product or services will get to the ultimate
customers. Place is all about distribution of the products. Physical access to the products or
services is a challenge for the both consumes as well as producing company. Company can offer
products by; producers to consumers, producers to retailer as a middleman and then to
consumers, producers to wholesaler (middlemen) to retailer (middleman) to the customers. When
a business makes decisions regarding the place, they are always trying to determine where the
company should sell their products and how to deliver the services and products to the market.
The objective of the executives is to get their products in the front of customers that are most
likely to buy or purchase them (Thabit and Raewf., 2018.). Place strategy is playing an important
role in marketing mix of product or service. It outlines how and where River simple car
manufacture will place its services and products in attempt to increase or gain market share and
consumer purchases. Due to lack of resources and time company cannot do work in proper
manner. In America company can sell products directly to the customers and company can
supplies to the local retailers. There are many distributions channel by which company can offer
products to customers at right time, at right place and at fair price. So, by effective distribution
channel company easily flow their product and services to the customers.
Price is play a major role in marketing strategy. Price directly affects customers because
people purchase that product which is fit in their budget. It is based on the demand for the goods
and services and the cost of producing that product. Price can have major impact on success of
the products, if price is not balanced then it may result in decrease market share of the company.
Company uses market-oriented pricing is also know as competition-based strategy, in this
pricing strategy price is set by comparing similar products, offer in the market. In this seller set
the price of the product higher or lower that their others players depending on how well their
own products matches up. The demand of product will also configure into pricing of products
even with market-based pricing strategy. Factors which affect pricing are economic forces,

market issues, production cost and nature of competition. The market growth rate of countries
(America and Canada) affects company pricing strategy. America had more growth rate as
compare to Canada so there are more chances of growth in America. When there is more growth
rate there is good pricing and company get more profits. Value based pricing also adopt by the
company, which depends on the customers perceived and real value of products. This pricing
strategy is applied to high end, expensive products like luxury cares. Some business enters into
the market with low price and keep them low only where as some company enter into the market
with very high price and then lower them over the time (Dubauskas, and Išoraitė., 2020). So , it
depends on the company pricing strategy. In Canada use lower price strategies where as
American use both the pricing strategies. American people believe in quality of services rather
than the price whereas Canada people are focuses on price mainly and quality is their secondary
concern. Company also focus on technology, labour cost, interest rate etc which affect the cost of
the products, and directly affect the profit of the company.
Promotion is very important to create awareness about the products and services.
Promotion is very important for business to grow their business; without it company cannot
survive in the market. The main purpose of promotion is to sets an organization apart from the
competitors. The aim of the promotion is to improve brand awareness, generate sales, create
interest and brand loyalty. It helps in boost sales of products by creating demand among
customers. America uses social networks marketing, direct selling, paid media marketing,
conversational marketing, internet marketing etc. whereas in Canada company use traditional as
well as online advertisement, direct marketing, public relations, personal selling etc. Canada has
large land than the America. America is focus on digital marketing which is very effective to
grow any company. Email marketing helps company to stay in contact with their customers, it
has ability to keep customers informed. Email marketing is very effective to promote company
products. Email marketing is very easy to measure by track delivery rate, unsubscribe rate, open
rate, click through rates etc. this is less time consuming and increate brad awareness. Social
media platform also plays an important role in the creating awareness of the product in the
market. Tools like Facebook, Instagram, twitter, YouTube, Pinterest etc. are used as a social
media platform (Azeroual., 2018). By such platform company can promote and create awareness
about their products and services. Effective website can attract new customers and retain existing
customers. In America there are many people and company who use such platform to sell and

create awareness in the market. Through this digital promotion company can easily cover whole
market very fast. River simple car manufacture want to expand their business so they can use
such platform to market their products and services. Both countries use digital marketing so
company can adopt these tools to market their product. America has large population as compare
to Canada and people are more interested in cars. By this company can choose a country where
they expand their business and get more and more success in the market.
Recommending the country and market entry strategy.
 Canada is a politically very stable country and its diplomatic relations with UK
may be very advantageous for Riversimple Rasa. Canada and UK share various
trade agreements and are the members of NATO and hence these relations may be
helpful for the car manufacturer to make an easy entry in the Canadian market.
The political agreements and lawsuits are not very strict and the foreign business
policies of Canada are very attractive for outsiders to migrate. The internal
political stability in the government of Canada and the administrative system
reduces the chance of any political inferiority. Canada's foreign exchange policies
and trade laws are very attractive and easy to cooperate (Ayhan, 2019). It is
considered one of the best country to deal with due to its legal policies as well. It
welcomes foreign trade and provides a lot of legal benefits as compared to many
countries around the world.
 The economical condition of Canada is very stable. It has shown a good record in
terms of annual GDP growth rate and rise in per capita income. The inflation rate
of the country is too low and hence the purchasing power of the people is very
high. Canada imposes very low corporate taxes and the cost of operations in
Canada is also very low (Nielsen, Asmussen and Goerzen, 2018). High literacy
rate, availability of top class health facilities may attract a lot of employees in
case of setting a new production unit. Due to these economic factors that provides
the highway of success, Canada may be the most suitable place for implementing
international marketing plan for Riversimple.
 Being the second largest country in the world in terms of geographical area,
Canada is full of resources and space. Apart from the low set- up cost and easy

business policies, it also has a favourable environmental conditions with low
pollution rate. Canada is not a disaster prone country and the climate may be
selected out of its vast geographical area. The environmental conditions are easy
to calculate and analyse and the pollution laws are not very strict in Canada. This
may prove to be a bid advantage for the car manufacturer.
 The socio- culture factors in Canada are almost harmless. The population is not
diverse and its easy to maintain cultural, social and religious sentiments during
marketing. Canada is a technology influenced country and supports technology
advancements. Due to high standards of living, the population regularly updates
itself and even the expensive technologies are adopted on a large scale. The
people of Canada are familiar to advanced technology and it may be easy for the
car manufacturer to explain a term like hydrogen power and future energy
(Mahraz, M, Benabbou and Berrado, 2019, July). It may be a good market to
quickly install power support and recharge stations and achieve rapid growth as
the costs are very low and the availability of skilled workers.
River simple car manufacture company can expand their business by exporting,
partnerships, licensing arrangements, mergers and acquisitors, working with global PEO.
Expansion is a phase of business cycle where Gross Domestic Product grows for 2 or more
succeeding quarters, operating from trough to peak. Exporting is one of the common ways to
enter in an international market. In simple words exporting means the sales of services and
products in the foreign countries that are made or sourced in-home country. By exporting
company as well as country both get success, access to more businesses and consumers,
diversifying market opportunities etc. Licensing arrangements is a low-risk methods of the
international expansion. They are agreements for others companies to use their intellectual
property, can be Non-exclusive and Exclusive. Franchising is an methods of distributing services
and products involve franchisor who create the brands trade and trademark and business system.
Franchisee is plays a royalty and often initial fee for right to do business under franchisors name.
franchising is well knowing business strategy. This helps company to easily cover all market
because they have existing customers so River simple car manufacture company get more
customers for the business. The main aim is to build customers loyalty, by franchising

international expansion is faster and easier, thus the franchisee possesses local market
knowledge.
Partnership is when two or more company or parties to operate and manage a business
and then share its profits. This reduces the risk of the company to expand their business
internationally. Join venture is another option of expansion in these two or more parties are agree
to poll their general resources for the aim of accomplishing specific task. This also reduce the
international risk. Canada has technology influenced country and have technology advancements
which help company as well to develop their market share. They have high standards of living,
and population regularly updates itself so there is great chance of that people buy cars. The
people of Canada are more familiar to the advanced technology which helps company to easily
explain their product like future energy and hydrogen power. It can be a great market to rapidly
install power support, recharge stations and easily achieve rapid growth as the costs are low and
the availability of skilled workers is high. So, company have low staff turnover rate which is
beneficial. River simple car manufacture company want to expand their business, so they can
expand in Canada. Canada market is larger than the America market so company can grab more
customers. Canada market is stable which is beneficial for the company so, they can expand
their business in Canada. Tax rate is lower as compare to the America so that why can select
Canada market. Political and financial stability is also strong in this market so its helps company.
CONCLUSION
From the above report it has been concluded international marketing is a marketing activity
that occurs over the boarders. Factors which affect international marketing are social and culture
influences, political and demographics conditions, legal issues and changes in technology and
natural environment. When company want to expand their business, they have to understand the
market external factors so they know the growth of the company. This report includes some
theoretical models and tools to analyses both the market where company want to expand their
business. This report includes two market that is Australia and Canada market to know the best
for the car manufacturing company. Moreover, this report also includes PESTEL to knows the
macro environment risk of both countries. PESTEL helps company to know the country macro
environment such as political factors, legal factors, economical factors, technological factors,
social factors and environment factors. And, it also includes some issue related to implementing

a marketing mix for analysis and comparison of threats and opportunities related to it.
Furthermore, the above report also makes some recommendation or recommend a country which
is best for the organization to expand their business with the market entry strategy.

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