International Marketing Analysis: Hallmark Mayonnaise in Sri Lanka

This report analyzes the international marketing strategies for Hallmark Mayonnaise, a London-based company aiming to introduce its product, 'Mayo,' to the Sri Lankan market. The report begins with an introduction to international marketing, emphasizing the importance of global expansion and the challenges involved. It includes a PESTLE analysis to evaluate the political, economic, social, technological, environmental, and legal factors influencing the business environment in Sri Lanka. The report explores various market entry strategies, such as direct exporting, franchising, and joint ventures, along with their advantages and disadvantages. The report highlights the opportunities and threats Hallmark Mayonnaise faces in the international market, as well as marketing strategies to overcome barriers to entry. The analysis also covers the importance of cultural understanding, consumer behavior, product development, and communication strategies in international marketing. The report concludes by discussing the application of franchising strategy for Hallmark Mayonnaise and its potential for growth and brand recognition in the global market.

International Marketing;
Tapping into New and
International Marketing

Table of Contents
INTRODUCTION
Task 1......................................2
Task 2 ...........................................4
Task 3..................................................7
Task 4......................................................11
CONCLUSION..................................................... 14
REFERENCES..........................................................15

INTRODUCTION
It is important for expansion for any organisation to enter in the Gobel market and
international market have lot's of opportunities. Marketing is the technique that aids business
to maximize their benefit and establishing business sin global market successfully. Entering
into international market sometimes create challenges for firm hence it is very important to
make effective strategies to overcome these issues. There is to much competition in the
global market and to much competitor.
Hallmark mayonnaise is the retailing company which is established in London. And eager to
introduce its product 'Mayo' to the international marketplace. Present study is based on
hallmark which is planning to enter into SriLanka market. Recently it is operating in London
only and has develop strong brand image in the mind of consumers. Current assignment will
explain concept of international marketing. It will conduct Pestle analyses to evaluate global
business environment of market. Furthermore, study will describe various market entry
strategies alone with their advance and disadvantage. In addition, report will explain tariff
and no tariff barriers that can create a problem for the firm in global expansion.
Task 1 -
Scope of international marketing
International marketing can be defined as business performance in which organization’s
plan, design and promote their product on global level to earn more profit. International
market can help Hallmark Mayonnaise in reducing risk and can create various opportunities
for them they can expand their business to the international market and show their presence .
They can expand their business by exporting mayonnaise to other counties as it will be
profitable for the company. If they want to expand their company to north America then they
need to make strategies in order to introduce and promote their product to north America.
they need to bring changes within their product and it is taste which will help them to satisfy
north American people. Company have to make product which can satisfy the needs of those
people because customer satisfaction is the main Aim of the company
Key concepts of international marketing
Cultural understanding

Cultural understanding is main concept that help companies to promote their product in
international market. Hallmark company should know the culture of that country where they
are promoting their product. Culture effect on demand of the product so they should make
product according to demand (Spears, Taddeo and Barnes, 2018).
Behaviour identification needs of customer
In an international market companies face many problems related to behaviour. So marketers
of company should study behaviour of their customer and identify their needs. It will help
hallmark to know what they need to change in product to satisfy customers of different
countries
Product development and product delivery
International market is completely based on quality products. Without quality, company
cannot sell their product to the international market there are more competitor in global
market as compares to domestic market. Hallmark have to change quality of Mayonnaise and
develop best product which they can introduce in global market and compete with their
competitor.
Communication strategies
There are many differences between international and domestic market. Communication
plays important role in international market because every country have their own language
so hallmark Mayonnaise need to make communication strategies according to their target
market. Company can recruit people from target counties it will be beneficial for company.
Evidence Based analysis
Political factors:
Hallmark is globally expanding their business especially in SriLanka. Political environment
of is quite stable and politically they appreciate new business from other region or country
also. It is a country where tax stricture is different and this difference can affect the business
of the company. It also promotes democracy around the world, and it is a great destination
for foreign direct investment (FDI), Due to this reason Hallmark choose SRILANKA as a
first company for foreign direct investment. Mayonnaise business is having a good growth in
SRILANKA. Public of SRILANKA eats lot of junk food and junk food becomes more tasty

when it includes mayonnaise in it. With the change of government tax structure also change
and some time company get benefits from tax and sometimes not.
Economic factor:
In nominal GDP the largest country is SRILANKA and this is the reason behind investment
by Hallmark in it. When investing in countries like SRILANKA there is some problem in
getting cheap labour but as the growth rate of SRILANKA is quite good so in long term
business will able to run with good and high growth rate. They will get very chip labour any
they can expand their business in all over the srilank and they are have good opportunity in
this country
Social factor:
Third most populous country -in the world is SRILANKA. In SRILANKA people are
generally health conscious but fast food culture has very much affected in it. Hallmark is
coming with different flavour of mayonnaise and also producing flavoured and unflavoured
mayonnaise for health benefits. And majority of people are having liberal mindset. People of
this country are aware about their health so it is important for company to make product
which cannot affect the health of Srilankan people
Technological factor:
In science and technology SRILANKA is a global leader. SRILANKA is at the forefront for
adapting new technologies in a wide variety of fields. By the latest technology it will help
Hallmark in reducing cost of their product. Company can make online sites where they can
make more profits . This is the technology where they can increase the growth of company
and success In the new market
Environmental factor:
SRILANKA has an immensely diverse climate, geography, and wildlife. This diversification
brings many tourists from different country and Hallmark will get the benefit of
diversification like tourist will know about their products. Environment of the country is very
good but climate changes can affect the durability of the product and ,product can be
damage
Legal factor:

Each state has its own government structure in SRILANKA. Business come under the
regulatory environment of state where they operate their business. Hallmark has chosen the
states which are highly populated and which loves to eat food with mayonnaise. Company
have to follow all the legal rules of the country they cannot break their rules because every
country have their own rules
Threat and Opportunities in International Market
Opportunities:
To take opportunities internationally company must have all the knowledge of foreign
direct investment in which they plan to regulate. Hallmark try to follow international
strategy because it acquires possible market opportunities. International strategy is
strategy which act as the beginning for firms to sell its products and services further on
domestic market. Global business help firms to introduce their culture. International
market will have a great impact on hallmark as they can gain competitive advantage by
investing in research and development. It also helps Hallmark in reducing the total cost
of product. Hallmark will also get advantage in covering larger markets. Hallmark will
also get opportunity to diversify their assets, It will also help in gaining competitive
advantage over their opponents. And by going globally it can increase connection with
other countries' government. More opportunities like Access to talent, and covering new
markets (Shaw, 2016).
Threats:
Economic conditions of other country are threat in global market. Economic conditions
include high unemployment or unskilled labor force. Unstable condition of country can
also become threat for the Hallmark. Policy of other countries' government is a threat
to it. Hallmark can also face threats like sudden change in trade laws. And some time it
can face a problem by fluctuation of foreign currency which can result it in diminish
profits. Sometime technology becomes threat also if its competitors are having better
technology then it will become threat. Tax compliance is also perhaps a most crucial
threat, due to different tax system it is not an easy to cope with tax systems. Price setting
in global market is also a big threat situation for Hallmark because it has to set price
according to the existing firms which are doing same business and have their foot in
market.

Task 2
Market entry strategies
It is a method which help organization to enter in new market so they can deliver goods and
services in the international market. some different market strategies which organization use
to enter in new market. To enter in the Gobel market they have to Implement some strategies
because without marketing they cannot enter in the global market so company have to adopt
some strategies like Direct exporting , joint venture etc. this strategies are helpful for
company to enter in internatio9nal market
Direct exporting
It is common and simple strategy to enter in global market. Company sell there product direct
to the international market through any agent Foreign retailers and they can also sell product
to users. It is similar to domestic market but include logistic. This strategies are commonly
used by organization it is very simple and company can easily enter I the market
Advantages: - it helps to better knowledge of market in Foreign market because they have
direct contact with users so they can easily gain knowledge about market and change their
product according to demand, and sell other product as well as
Disadvantages:- Direct exporting is beneficial but more then that it is risky because they
Franchising your brand.
This strategy is best way to enter in new market. In this strategies company franchise there
brand to the other countries and give all the executive rights to the retailer so he can
manufacturer that brand product in specific territory. This is one of the best and successful
marketing g strategies . In well increase the brand value of the company and they can show
their presence in the global market
Advantages: - this strategy help in expansion of business all over the world, increase
reputation in market. Business will grow and it will make profit. Organization are known by
their brand name and this strategies will do this for company
Disadvantages: - disadvantage from this strategy that Franchiser cannot control all other
franchise it can effect on company’s reputation.
Joint venture
Joint venture means a partnership between two people or firm. Two person link up together,
invest equally in business and distribute their profit equally. Mostly, companies stay separate

but they can work together for particular venture to be succeed in business. Joint venture is
beneficial for the company as well they can hare the equal profits. The owner of the company
will share the lose equally .
Advantages: - this strategy is beneficial when two organization work together and provide
product in low cost and services. Both company try to make best product which can satisfy
customer.
Disadvantages: - it can be a problem for a firm if two partners are working together because
they can take time to make relationship. If any dispute happens between them they that can
affect directly to the firm.
Franchising strategy on Hallmark Mayonnaise
This strategy will help company to expand their business to domestic as well as international
market. they will easily enter in global market if they franchise their brand. Hallmark
mayonnaise can show their present in international market they can create a image and
reputation in all over the world, everyone will buy companies product by brand name so it
will help them to make new customers and They will be succeed in business. this will help
them to grow without risk of equity or debt. It will allow them to grow by using other
resources company can use their money. risk of failure in business will be reduce and their
product will establish share in market. Automatically advertise brands product by the others.
They will get profit shares from their brands and franchisees will recruit a employees and
franchiser will control them and they will have all the rights.
Marketing strategies for overcoming barriers to international trade
For overcoming international trade barriers choose a contrast market which is not harmed by
economic sanctions. Hallmark can export a different line of product and services which do
not concern to trade sanctions. It can develop value-added tasks in a particular target market.
It can also start producing goods in target market to avoid the need of importing. It can also
do partnership with an organization in target market which will make goods at it facilities. It
can overcome trade barriers by developing new business strategy, and can do work with
global and local business management expertise. Hallmark mayonnaise can define the
population which it wants to target, because it provides proper demographics which help to
select better appropriate marketing plan. It can also use hypothetical process of buying to test
its audience. And once knowing about target audience it can select proper marketing strategy.

Developing relationship with other organization in global is also good marketing strategies
for Hallmark. To reduce barriers of international trade it can use the most attractive way of
marketing and it is e marketing which means to viral all the information about companies
product. E marketing is not only limited with local marketing it can be used for worldwide
marketing. It can do sample marketing in which they can provide sample to the public and
which is an impressive way to market their product. Hallmark can also market their product
by using transnational marketing strategy in which it can sale their product by encouraging
customer to buy with shopping coupons, huge events(Fan, Lau and Zhao, 2015).
Discounts. Hallmark can promote it globally by using cause marketing which means linking
product and services with a social cause or issue. There are more marketing strategies which
can help Hallmark in overcoming trade barriers like paid advertisement and many more.
Advantage and Implications of international trading blocs
Trading blocs means group of countries in particular regions that direct and promote trade
activities. It creates liberalization in trade. And it becomes an advantage to Hallmark as it get
direct competition with other and it results to increase in profit of it. As trade blocs cuts the
trade barrier this thing decreases the cost of export and import which is good for Hallmark
and when price of import duties is less it can provide customer product at good price which
make customer satisfied to it. Trade blocs make easy for company in foreign direct
investment (FDI). FDI means to invest in business in other country. By FDI Hallmark can
mark their name internationally. It also creates brand name worldwide because trade blocs
create a friendly relationship between different countries. Trade blocs impact like it bring
economics of scale which means it reduces per unit cost. Tariff and Non-Tariff barriers are
restrictions which are applied on trading of goods between countries. Countries protect
security of the nation by applying these restrictions. Countries also applies it because they
want act as bargaining tool. To protect domestic employment these tariffs are applied.
Government levy heavy tax on goods which for the welfare of the people of their country.
Tariff is a duty, tax or custom applied on products. There are many types of tariffs like
import tariff, export tariff, transit tariff and other.
Task 3 Various elements of marketing plan which can be adopted among international
marketing and describing the import and export process and different
practicalities which are involved -

Components of Global vs Local debate -
There are various key components of global versus local debate in context of International
marketing that can be described below -
Basis Local Global
Application in Marketing Local marketing is variety of
strong market especially by
market uniqueness and
market individualism.
Hallmark mayonnaise had
its unique product 'Mayo'
which gone to be introduced
in the new market.
In global marketing the
Hallmark mayonnaise
should apply four basic
instruments of marketing
that is 4P worldwide and
national specialities will be
ignored in individual market.
Characteristics The product 'Mayo' is
different from other
competitive rivals and
further that product 'Mayo' is
manufactured by peculiar
organization.
The standard product 'Mayo'
will does not need any of the
characteristics as compare to
other products.
Approach Adaptation Approach is used
for detailing the
differentiation among the
product 'Mayo'
Standardization Approach is
used to raise the
commonness of goods
'Mayo' and services in the
supply chain management.
Difference between Merchandise exports & imports and Service exports & imports:
Merchandise exports & imports Service exports & imports
Merchandise exports and imports involved
the sending the goods from another country
or to bringing the goods from another
country(Rao-Nicholson and Khan, 2017).
Service imports & exports involves non-
product earning globally.
The physical goods are manufactured in one
country and then exported to another country
and sold there. For example, it can involve
the manufacturer of TVs, toaster, furniture or
cars etc.
It includes the services where company hires
in other country to perform the payroll on
behalf of them. For example, it involves the
services which are consulting, web hosting
and accounting services etc., it does not
involve product but companies pay for it.

Advantages - Merchandise exports generate
the huge employment opportunities whereas
import will improve the standard of living of
the people resides in the country.
Advantages -With the help of Service
exports global market is covered so the
country will earn huge foreign exchange
whereas import can help the company access
through best service globally.
Disadvantages – Export products should be
quality products if bad quality product is
exported it will not be good for countries
reputation and have a bad remark on the
country and a company.
Disadvantages - Low value addition of the
export services will be meet to low foreign
exchange. Local service will be affected by
hiring the payroll companies to the other
countries.
Similarities – However both of the export and import involves the sending and receiving the
goods from another countries globally. Foreign exchange is performed under the dealing of
goods and services. All tariffs and taxes are paid for such exchange of goods. This helps in
generating a large amount of emp0loyement in both of the cases which may be profitable to
the country in both of the systems.
With the help of above advantages and disadvantage Hallmark mayonnaise can easily
access through international market with its new product 'Mayo'. By using merchandize
exports and import company can easily access through globally and avail its new product
'Mayo' into foreign marketplace. They will manufacture the good 'Mayo' in the UK and then
sold them globally across the world. Thus, they can also maintain the quality of product as it
is important because it can have an impact on the reputation of the country's economy.
Internal factors which is helpful for Hallmark mayonnaise to expand across world by
applying local and global approach are as follows -
Financial factors – Financial factor plays a major role for Hallmark mayonnaise to expand
globally as they should have an appropriate fund to conduct further business activity and thus
the business plans and strategies will be formed according to that.
Cultural factors – Cultural factor also somehow affects as Hallmark mayonnaise should
concentrate on the beliefs, culture, social requirement of such countries where the product
'Mayo' gonna to be delivered and thus they can design their packaging according to that, so
they can easily attract the large number of consumers.

7 Ps of International Marketing -
4 Ps of International Marketing are also known as the Product Mix. It is the tool to determine
the product's offering by the company to their consumers. These are described below-
Product -
In International markets different factors are considered which includes the consumer's
religion, background, level of personal disposable income and their buying habits. The
Hallmark mayonnaise to explore its product 'Mayo' among international market then they
should first assume the market conditions of SRILANKA where the product is to be sale and
the product must be manufactured according to the requirement of the international market
where the company is going to expand its product. The standardization approach to the
company's marketing mix where the product are triggered globally with similar group.
Promotion -
In the International product decisioning the companies can standardize or adapt their
promotional activities according to the international market. Advertising should be adopted
while expanding the product in other country because of political climate, language, religious
practices and cultural attitudes. Hallmark mayonnaise should plan the promotional strategy
on the basis of research and a set of plan to analyse the cultural background and practices
which affects the consumer's directly. The research about the market and planned strategies
according to the SRILANKA marketing activities helps the company to plan the promotion
the promotional strategies(Gerschewski , Rose. and Lindsay, 2015).
Pricing -
It is the complex task of pricing on the international scale. Traditional price considerations
which are variable and fixed costs, target groups and competition can be taken in account
then the Hallmark mayonnaise will also need to include the additional factors with it such as
transportation costing as it will expand to the another country, tariffs or import duties to be
paid while conducting the business activities, fluctuation in exchange rate, personal
disposable income of the target market, economic situation of the SRILANKA which can
influence the pricing of the product of the company.

Place -
It is the important element product mix where products and services are distributed to the
consumer, at right time and at right place. Hallmark mayonnaise while exploring its product
'Mayo' to SRILANKA had to consider different parties which are involved because the
products need to be sell in the foreign market where the business practice for international
market is different from national market. They company had to investigate all parties which
are involved in the distribution which will help the organization to sell their product to
businesses, wholesalers, retailers or directly to the customers. The distribution strategy may
be different for each country where a business is operating that can be contrary because of
transportation cost and profit margins.

People
Hallmark mayonnaise have well-trained staff and workers which are highly
experienced to provide the world-class facilities and services to their customers.
Process
This company uses a well-defined process of supply chain where their products goes
through a thorough processing and thus have a structured delivery process
Positioning
Hallmark mayonnaise generally uses price positioning and provide their customers
with price-quality combination. They focus on the price of the product along with providing
quality services.
Hallmark mayonnaise should follow the standardization approach as company is emerging its
product into the overseas market, so they can sell the same product across the international
market without any modification. The company can attain economies of scale in
manufacturing, and thus the large quantity is produced leads the company to be more advance
with the huge experience(Pham, Monkhouse. and Barnes, 2017).
Adoption of global or local approach and its implications -
Global approach is the approach which is used when the company is going to expand its
business among overseas market. This approach is very helpful for a company to develop the
product mix strategies according to the requirement of the countries marketplaces.
Local approach is the approach used by a common to conduct the business activities within
the country. This approach is followed up with in the country by any type of business this can
be avail through simple market strategies to compete with other rivals in the market.
Hallmark mayonnaise should adopt the global approach as the company is going to introduce
its product 'Mayo' to the foreign market. The company will follow up the standardization
approach and the products features will be same as it was before only the product will be sold
among the international market. With the help of global approach company will use the 4 Ps
of marketing Price, place, product and promotion after the investigation of the overseas
market so that they can form strategies regarding that factors and can compete with other
companies and can sustain globally for long term(Zarantonello , Formisano and Grappi,
2016).

Implications of using global approach -
 Strong and consistent brand is created as company seems to be familiar with their
customers and it is their first priority. Expanding internet, more risings in the market,
and creating a strong brand culture helps the company to attain a huge profit.
 Unified marketing approach will help the companies to perform the market operations
fluently.
 It will help the company to adopt the different strategies according to the overseas
market conditions, tariffs that to be paid while commencing the export of the
products.
 Company can easily grow and expand their business among the global countries and
raise their profit margin and can develop the brand reputation globally(Montgomery,
2017).
Application of Marketing Mix -
Marketing mix would be applied for the Hallmark mayonnaise to explore its business
activities among the international market. The product would be manufactured according to
the business market condition of that foreign country so that they can perform well in that
country if it is not done than they can not sustain in the market for long term. The pricing of
the product must be decided by concluding the other extra expenses which will be bear by the
company while exporting the products to the foreign country. If it is not included than the
company can not earn up the profit margin which as other tariff expenses, transportation cost
etc. are not included in the cost of the products. The promotion activities of the product must
be according to the religion, belief, language and culture so that the consumers are easily
attracted to the company. Consumer will not be attracted if it is not according to their
circumstances and it will have a bad impact on their customers. Place should be decided first
as the product should be delivered to the customers at the right place and the right time. If it
is not done than the needful customers will not be getting through their products and thus the
consumers will move on to other similar option. In order to implement Marketing mix
elements across international market, marketing manager has to ensure that the entire
marketing plan will be equally implemented across the international market. Hence, strategies
will be followed accordingly(Gregory, Ngo and Karavdic, 2017).

Task 4
Various Marketing Approach -
There are different types of approach of marketing that can be used by companies to market
their products and services among the rivals. These are as follows -
 Franchising the brand – In this entry method company can easily avail business
activities among the foreign market without establishing their company in the oversea
country. This is the very common method used by the companies to expand their
business globally. For example, McDonald has expanded globally and has it
franchise in many countries and running successfully among the international market
and had become a huge brand.
 Direct exporting – This is the method where company can directly export their
products and services among the Foreign countries by establishing their company in
the overseas marketplace. There is no profit sharing and company can run their
business independently with their own marketing strategies and operation activities.
For example, Flipkart is exporting directly globally among the different countries and
had access thorough huge brand image among the consumers and performing well in
the market(Kaleka and Morgan, 2017).
Pros and Cons of Marketing approaches -
Franchising the brand
Pros Cons
There will be no barriers for the company as
they had already given the franchise to the
company which already exist in the
representative company.
Company had to share their profit with the
other company with home they are
conducting business globally.
Brand does not have to open the company in
the foreign market they can conduct their
business with already existing company.
Company's goodwill can be affected if the
quality product and services are not render
by that franchiser.

Direct exporting
Pros Cons
The company can easily select their foreign
representative in the foreign marketplace.
It is the high cost strategy which for offline
products.
The patent, trademark, goodwill and other
tangible assets can be protected(Bowie and
et.al., 2016).
It is the rapid expansion strategy for the
online products and it can take a huge time
for recruiting, market research and hiring in
the oversea country.
Comparison between home and international orientation -
Home Orientation International Orientation
Home orientation is selling the products and
services of the company along within the
local marketplace (Luecking and et.al.,
2017).
International orientation is the sale and
promotion of the product and services of the
company to the customers in different
countries.
There is no language barrier in the local
market and data can easily obtain and
interpret on local market trend
There is always a language barrier while
expanding the business globally and the data
are not easily interpreted as it is the global
market trend that should be followed.
It helps the company to make and develop
decision and marketing strategies more
efficiently and effectively.
Consumer taste and preferences can also
differ, so the marketing strategies should be
formed according to the needs of the various
customers.
Export and Import process -
The export and import process of UK is described below-

 The trade documents of the Hallmark mayonnaise should be archived for the further
documentations and formalities.
 In UK its has an Automatic Licence Verification System which is helpful in availing
whether the company has an appropriate or valid licence or not.
 It controls dual-use goods that can be done through various stages and documentation.
 Custom procedure must be followed by transporting the good by roads.
 Should know the export licensing policy for Liberia(Surdu, Mellahi and Glaister,
2018).
Recommendations -
 It is achieved through oral presentation, Hallmark mayonnaise can franchise
their brand to the foreign countries so that they can easily trade globally, and
they don't have to open any company in the foreign country.
 This will help company to easily access their product to other countries
without any barrier. They don’t had to form any market strategies any market
investigation as the already established company is going to sell their 'Mayo'
on behalf of the company.
 This is very common method now s days used by most of their companies to
expand their business globally. The company can also directly export their
product to international market by setting up their company in the
international market and develop their organizational unit in the overseas
market so that they have their own circumstances and no profit sharing with
any other company, and they can independently run their business.
 Company can easily get a huge amount of profit margin and run their business
for long term by adopting these strategies which are mentioned above.
 Can attract the wide number of consumer towards their product and manage
the uniqueness of their product effectively.

CONCLUSION
From the above study it can be concluded that international expansion is the agenda of
most of big companies, firm always market strategies to develop its global brand image.
Franchise and joint venture as considered as most effective strategies that support enterprise
in successfully establishing itself into new market. Product, price, promotion and placing
strategies help business in gaining attention of potential buyers and enhancing their
satisfaction towards the brand., By using correct marketing mix strategies enterprise can
make people positive and can sustain in the global market for longer duration successfully.

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