International Marketing Strategies: Amcor Limited's Report

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This report analyzes Amcor Limited's international marketing strategy, specifically focusing on the company's expansion into the Mexican market. It begins with an introduction to Amcor's business, which centers on packaging and bundling products for various industries. The report then summarizes previous assignments, highlighting market factors, opportunities, and competitive analyses, including SWOT and Porter's Five Forces. The core of the report details the screening and selection process for international markets, outlining stages such as global marketing objectives, factors for market selection, initial screening, and shortlisting. The rationale for choosing Mexico is discussed, along with the company's objectives, including antimicrobial packaging and competitive strategies. Alternative market entry strategies, target market selection, positioning, and generic strategies are also explored, leading to recommendations for market entry mode, target market focus, positioning, and overall generic strategy. The report concludes with a summary of the findings and references.
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International Marketing
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Contents
Introduction.................................................................................................................................................3
Summaries from Assignment 2...................................................................................................................3
Screening of Market Selection.....................................................................................................................4
Stages of Selection Process.....................................................................................................................4
Factors of market selection......................................................................................................................4
Initial screening.......................................................................................................................................4
Shortlisting of a market...........................................................................................................................5
Reason to choose country....................................................................................................................5
Objectives................................................................................................................................................6
Alternative Market entry strategy................................................................................................................7
Alternative target market selection, positioning......................................................................................7
Market Selection Process.........................................................................................................................8
Alternative entry modes.......................................................................................................................8
Positioning Strategy.................................................................................................................................8
Alternative Generic Strategies.................................................................................................................8
Recommendations.......................................................................................................................................9
Market entry mode..................................................................................................................................9
Target Market..........................................................................................................................................9
Positioning Strategy...............................................................................................................................10
Generic Strategy....................................................................................................................................10
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11
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Introduction
The essential business activity performed by Amcor Limited is the packaging and bundling of
products. From adaptable to the inflexible plastic packaging and bundling is given to different
organizations in order to give them supportable administration of the organizations' items and
products (Brady, 2014)). It’s headquarter is located in Australia and for the development and
success purpose, they are making arrangements for the extension and expansion of the business.
For a similar reason, Mexico is chosen and in pertinence, to the market circumstance of the
Mexico, suitable measures will be taken before selecting this place for the expansion and
success. Under this report, all the sensible market section available in the Mexico to attain the
organizational long term and short term goals and objectives.
Along with this, pros and cons will be examined and evaluated in significance to choose a
satisfactory and favorable market with a perspective of long run survival in the Mexico. As
Amcor Limited is associated with the packaging field therefore; the most suitable approach to
attain and achieve the success and growth in the new economic situations will be established
their business outlet which is closed by the modern chosen area (Papadopoulos & Heslop, 2014).
This will help the industrialists to reach to the Amcor effortlessly and the chances of getting
contracts of packaging and bundling from the new market will be more. The exercises performed
by the Amcor Limited provides support them to drop down in the B2B sort of business
marketplace. Amcor Limited helps and provides support to other associations, usually
manufacturing and producing associations in packaging their completed products and goods
through the different types of packaging as required by the item or the association.
Summaries from Assignment 2
In the initial segment of this task, advertise factors and various opportunities existing in the
Mexico in order to establish goal and position in the company environment of the specific place.
Adequate and sufficient risks and opportunities were discussed through the competitive analysis;
advertise investigation, organizational environmental analysis and marketing analysis. This was
performed with a view to understanding the organizational position sufficiently in the Mexico.
Aside from these variables ((Czinkota & Ronkainen, 2013), Amcor Limited's qualities,
shortcomings, openings, and the threats factors were discussed about the different approaches,
for example, Porter's five powers, BCG matrix, and SWOT analysis and value chain analysis.
While assessing and evaluating all these variables in connection with the Amcor Limited, after
the various researches, it has been analyzed that the legitimate arrangement of rest world aside
from the Mexico differs lot. Different principles and directions go along in the way while
building up their effective position in the Mexican market with a view to getting engaged with
the B2B kind of association. Along with this, it was evaluated and measured while building up
the way to go into Mexican market for performing the business activities; Mexico has the most
attractive business sector over the world in terms growing the business with a view to expanding
the profitability and revenue of the association (Paliwoda & Thomas, 2013). Apart from these
elements, administration of the Amcor Limited performs the marketing mix in order to attain
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organizational mission and vision. While building up the universal marketing plan for the Amcor
Limited, it has been evaluated that their number of associations are present and existing which
are engaged with an indistinguishable procedure from Amcor is included. In this industry, the
fundamental achievement thought process is giving satisfactory subjective pressing. This ensures
the producers in significance to their items' safety. Cost is an incredible factor which affects the
clients. Consequently, Amcor Limited has also analyzed the components identifying with the
cost to set the cost of their items in order to meet the organizational goals and objectives.
Screening of Market Selection
Screening of market choice includes the strategy to adjust the most suitable and viable market for
the Amcor Limited for accomplishing the goals and objectives (Morschett, Schramm-Klein &
Zentes, 2015)). The fundamental thought process in the development for Amcor Limited is to
build their benefit and also to segregate their remarkable character in the worldwide market.
Below discussed features are the parts of the market choice process:
Stages of Selection Process
Global marketing objectives
This is the essential course to analyze a satisfactory approach to reach to goal for expansion in
the abroad nations (Majaro, 2013). Assessment of the marketing objectives enables the
association to assess the specific strategies to go into the different countries and in their market.
Through performing this technique, an association can decide all the positive and negative assets
which could profit the association or which could hurt association performance. The market
should be chosen subsequent to deciding all marketing elements, for example, full scale and
small scale ecological variables of the specific market. For example, if Mexico does not put
stock in the creation exercises and they just have confidence in the fare of products than the
request of packaging material and the packaging associations will be less. Therefore, this could
be a negative factor for the association and this will affect hierarchical intention of extension.
Factors of market selection
Before choosing the suitable method of section or the appropriate business sector for playing out
the business exercises for accomplishing the association objectives (Cavusgil et al., 2014), it is
important to set the parameters with the goal that examination should be possible effectively.
The essential components which are incorporated into the determination procedure of market
section are interior and outer elements of the business, large scale and in addition smaller scale
environmental variables, rivalry, lawful parameters, assets available and existing with the firm,
and so on. This causes the association to decide the most proper market passage mode to for
setting up the company's position in the universal market and in addition to decide the
achievement factors engaged with the chose advertise. Innovation, Culture, Free markets, peace,
economy, advertise request, and so on are a portion of the perspectives which ought to be
incorporated into the determination procedure so as to achieve the sufficient development.
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Initial screening
This activity is performed at the time of choosing the potential markets for building up the
sufficient picture in the market (Fletcher & Crawford, 2013). Non-potential markets are excluded
at the underlying stride just with a specific end goal to spare the time of the association. This
facilitates the organizational procedure to choose the satisfactory market to play out their
functions. For performing this stride, appropriate strategies need to embrace, for example,
measures for playing out the screening needs to stay unchanged for each market. Markets could
be measured on the particular of a size of the specific region, normal wage aggregate individuals,
a population of that region framework of the zone, political contemplations, and so on (Baack,
Harris & Baack, 2013). All these variables become the part of the screening procedure.
Shortlisting of a market
The next step is concerned with the evaluation of the remaining markets and the needs of the
same and the advanced are required to be adopted for determining the benefits of the markets
(Akaka, Vargo & Lusch, 2013). These operations play key and crucial role in the selection of the
market for the corporation. While executing the screening process, the business entity can adopt
advanced options so as to attain the desired growth rate and development for the organization.
Assessment and Selection
After segmenting the target markets, the furthermore analysis has been executed on the
procedure which involves the selection of one of the best markets with an expectation of long-
term survival, from the aspects of growth developments, etc. (Andersson & Xiao, 2016).
Generally, the business entity can make use of this procedure while launching a new product in
the new region and also in the case of the launch of new business or the existing business in the
new market. As mentioned in the above scenario assessment of markets is done for Amcor
Limited for expansion of its business operations in global markets, and for the same Mexico is
chosen as the preferred country to operate its business.
Reason to choose country
There are varied range of reasons which make Mexican markets liable and capable enough that
they are chosen for this assessment:
The favourable conditions of the Mexican markets support the business like Amcor
Limited.
The attractiveness and the quality of packaging provided by the business entity aid the
firm in sustaining the and setting the products apart from the competitors.
On the basis of a conducted survey it has been noted that then current population of the
Mexico is equivalent to the 1.73% of the total population of the world (Bond & Saggi,
2014). Moreover, the economy also has a satisfactory GDP which has made the
economically stable and which has also enhanced income and purchasing power of the
population.
Apart from the market barriers, there are varied range of legal systems which are very
much unique with their workings, number of market drivers are also present within the
economy, which aids the investors and the marketers to execute and trade effectively.
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Objectives
The business entity has been engaged in the business operations of packaging of the
products and making them attractive. Determinations of risks and opportunities which are
associated with the global markets, Amcor Limited has decided to expand the business
operations in Mexican markets (Burton & Cross, 2015). This will also aid the business entity in
attaining the adequate objective and the goals for the organization. Accomplishment of the goals
and achieving the growth are the two terms on which the expansion of the business organization
is based. And so The below mentioned are the objectives which are set up by Amcor Limited in
order to accomplish the target and as a result the business entity will enable itself in establishing
in the global market.
The business entity provides antimicrobial packaging for the products. This type of
packaging is done for each and every products such as household items, perishable and
non-perishable goods, etc. Chemical resistance and coating with the alcohol pads which
enables the packaging strong and reliable and these are the two features and speciality of
the business organization (Cavusgil et al., 2014).
The packaging of the products .i.e. antimicrobial packaging is done in such a manner that
they have maintained a low pricing for this operation. This also aids the business entity in
attaining consumers and also accomplishments of the objectives will be done.
The business entity has adopted various mechanisms for developing awareness in the
Mexican market for their products. Moreover, the business entity has also adopted
promotional strategies such as digital media, sponsorship, digital media platforms as well
as the print media platforms.
For sustaining and developing a unique image in the competitive environment the
business entity will require adopting number of competitive strategies. Visy Industries,
Pact Group, and Sealed Air Australia are the business entities which are considered as the
main competitors of the business entity (Choi & Yeniyurt, 2015).
Moreover, the business entity has been making use of environmental friendly materials in
the process of packaging the products. And this has also considered as one of the reason r
an increase in the cost of the products (Czinkota & Ronkainen, 2013). As the materials
used in the environmental friendly packaging are quite expensive and which brings a hike
in the cost of operations.
SMART objectives of Amcor Limited
The business entity should develop specific and significant goals, as these will aid the
organization in attaining an effective position in the international market. The specific
goals of the business entity are to deliver adequate packaging materials to the
manufacturers of Mexico so as to order to expand their business operations in the
international market (D. Banker, Mashruwala & Tripathy, 2014).
After attaining a strong hold and position in the Australia, the business entity is planning
to expand and move towards global market. And these goals and targets are measurable,
which is the second step of the smart objectives.
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The business entity should develop an attainable range of products provided by Amcor
Limited of goals and targets. The employees and the workforce should be able to attain
the same (Demangeot, Broderick & Craig, 2015).
The goals and the targets which are desired to be attained by the business entity should be
practical and realistic. So that the employees can try to attain them.
Moreover, the last point is the targets and the objectives should be time based. A specific
time deadline should be set and should be strived or tried to be completed in the gieven
time scale.
Alternative Market entry strategy
A varied range of market entry options are made available and which can be adopted by
the business entity (Eteokleous, Leonidou & Katsikeas, 2016). There is a clear difference
between a domestic market and in international market. On the basis of the given scenario,
Amcor Limited has been expanding the business to Mexico with the view to bring an increase in
the profitability and market share. The business entity will require analyzing and evaluating all
the available market entry options such as joint venture, partnership, direct exporting, etc. The
below mentioned is the the market entry options available in the Mexican market for Amcor
Limited:
Alternative target market selection, positioning
Direct Exporting: Direct exporting can be done by the business entity y utilizing the own
sources such as contacts with friends, relatives, etc. These sources said the business entity in
dealing and operating the business operations in particular region. As mentioned the business
entity do not have any contacts in Mexico; hence this option will be proven beneficial for the
business (Fletcher & Crawford, 2013).
Licensing: This mode has been considered as a foreign entry modes and is a preferable option by
most of the business entities. An agreement is required to be created between the host country
and the business corporation (Greckhamer & Gur, 2015). The business entity will be aided by
getting access over the rights for securing their intangible assets such as trademarks, patents,
techniques, etc. This can also be considered as the is the official entry mode in case of the
expansion of the business operations while expanding the business in the global market. The
license will be provided to the business entity for a particular period of time and for a certain
period of time and renewal of the same can be done in order to avoid the glitch in the operations
of the organization.
Franchising: This mode of entry has been considered as very famous and familiar in the food
chain industry. On the basis of the norms the parent organizations .i.e. (franchiser) can offer their
trademarks to the interested organization, who wants to operate the business .i.e. (franchisee)>
The franchiser will demand royalties, or fees in against the agreement. For instance, McDonald’s
is an American business entity and is a fast food chain which has been operating the business
activities all over the globe (Johanson & Mattsson, 2015). This company can be considered as
the best example of this entry mode option.
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Amongst the above mentioned foreign entry modes, Licensing can be considered as an
appropriate option which can be chosen by the business entity. As the business entity will face
some issues in new markets and regions as they do not have any direct contacts in the Mexico.
Moreover, the business entity will require a high goodwill in franchising mode for operating in
the international market (Katsikeas, 2014). Hence, from the above analysis it can be determined
that the best option for Amcor Limited will be the licensing. This will aid them by getting the
rights for secure the trademarks, patents, etc.
Market Selection Process
Under this method, the business entity is required to make a selection of an adequate market so
as to conceive the factors of the organization (Kaufmann, Czinkota & Zakrzewski, 2015).
Mexico is the selected market option which has been chosen by the business entity for expanding
the business.
Alternative entry modes
As mentioned above Licensing has been considered as the most relevant and appropriate
entry mode for Amcor Limited in Mexico. The other available entry modes are direct exporting,
franchising, joint venture, partnership, indirect exports, etc.
On the basis of the analysis it has been concluded that the next most suitable mode is
joint venture and the partnership type of business. Joint venture is a type of business which is
operated for a time being or for a contract; whereas partnership business could be executed till
the time the consent of all the partners is observed (Knight, 2015). And hence, Amcor Limited
can make choice over the partnership business while operating the business in Mexican market.
This will aid the business entity in attaining the goodwill and apart from this, the business
corporation wills also have to less investment and also sharing of losses and risks will also be
beard by the partners involved in the business.
Positioning Strategy
Positioning strategies are the mechanisms which are utilized by the business entity so as to
establish the product's or brand image in the new market regions. According to the above
mentioned scenario, Amcor Limited has been offering services of unique packaging to almost all
types of sectors and industries, has decided for expansion of business operations in Mexico.
Amongst the seven mechanisms of positioning strategies, product’s characteristics will be proven
the most beneficial tool for the business entity (Majaro, 2013). This approach, will promote the
products features in a new market conditions with an objective to establish the brand equity.
Moreover, the business entity can also chose the price-quality approach for the enhancing the
distinct identity in the Mexican market.
Alternative Generic Strategies
The approach of generic strategies was discovered by Michael Porter in the year of 1985. Under
these strategies there are three approaches which are segmented under this concept, which will
aid the business corporation in attaining competitive advantage while establishing the business in
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global market. In relevance with the size of the business, these approaches can be proven suitable
for any sort of business. Cost Leadership, Focus, and the Differentiation has been considered as
the three major approaches of generic strategies.
Cost Leadership Strategy: Under this approach the business organization can establish
leadership over the market i.e. by bringing hike in sales through minimizing costs and
hiking up the profits by deducting the selling price of the products at an affordable
arrange. These both options will aid in attaining competitive advantage to the
corporation. Amcor Limited can implement this strategy so as to tackle the rivals in the
new market regions and also for enhancing the brand equity. Moreover. Adoption of this
approach will also aid the business organization by securing the position of a leader,
Differentiation Strategy: This approach is concerned with the development of a distinct
image of the products of the entity so as to establish a distinctive image in the market.
This will aid the business entity in developing a separate image and which will help the
customers in identifying the products as compared to that of the competitors. According
to the above mentioned scenario (Paliwoda & Thomas, 2013), Amcor Limited can adopt
this strategy so as to develop a separate image of the products from its competitors which
are present in Mexico. Moreover, this approach will also aid the entity in attaining a
competitive advantage.
Focus Strategy: This approach is concerned with diverting or concentrating the focus
towards the special features of the products and also on the requirements and needs of the
customers. On the basis of the study conducted by Michael Porter (1985), the adaptation
of the focus strategy will aid the business corporation in developing and designing
customer oriented products so as to fulfil their demands. This will increase the
satisfaction level of the consumers and will also help them in attaining competitive
advantage, Moreover, high level of customer satisfaction will develop and build relations
with the customers and which in-turn will increase the goodwill.
Recommendations
Market entry mode
On the basis of the above executed analysis it has been concluded that the business entity should
make choice over the licensing approach as a market entry option. This approach will be proven
beneficial for entering the global markets.
Target Market
Mexico is the destination which has been chosen by the business entity so as to expand the
business operations in international markets. The high purchasing power of the consumers in
Mexico is one of the biggest reasons for choosing the region as a target market.
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Positioning Strategy
On the basis of the above mentioned scenario, Amcor Limited are seeking for expanding the
business operations in the global markets and for doing the same the it has been recommended
that the business entity should use, products’ characteristics and the pricing strategy as the
significant variables while implementing the positioning strategy for the products. This will aid
the business entity in establishing the products image positively in the market of Mexico.
Generic Strategy
On the basis of the above analyzed scenario, it has been stated that the generic strategies
provided by Michael Porter (1985), and the adaptation of the same can be done after executing
SWOT analysis. This approach will aid the business entity in determining the strengths and
weakness and also up-coming threats and opportunities. This will enable the firm to attain
competitive advantage over the competitors.
Conclusion
In the limelight of the above executed analysis it has been inferred that Amcor Limited
has been planning to expand the business operations to the international markets and regions.
Mexico is the destination which has been chosen by the business entity for expanding the
business operations and activities and the above analysis has also been made focus on the same.
The report has been segmented in various segments for developing plans and strategies for
expansion purpose.
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