International Marketing Management Report: Hello Fresh in Sweden

This report provides an in-depth analysis of Hello Fresh's international marketing management, with a specific focus on its potential expansion into the Swedish market. The report begins with an introduction to international marketing and Hello Fresh, followed by a discussion of the company's market entry strategy, which involves a joint venture with Amazon. The report highlights the benefits of this approach, including Amazon's market knowledge and established online presence. The main body then explores global trends such as online shopping, the snackification trend, and re-localizing production, and how Hello Fresh can adapt to these trends to enhance its business operations. The report also examines social media standardization and adaptation strategies, and the need for Hello Fresh to tailor its communication methods to different customer segments. The report concludes by reiterating the importance of international marketing and its role in expanding a company's reach and sales across borders, emphasizing the need for a well-defined marketing mix and a deep understanding of the target market. The appendices provide additional insights into segmentation, buying behavior, and cultural considerations.

International
Marketing
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Market Entry Strategy............................................................................................................1
Global trends and their application in the local environment.................................................3
Social Media standardization and adaptation.........................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
Appendix A......................................................................................................................................7
Segmentation and buying behaviour......................................................................................7
Appendix B......................................................................................................................................8
Cultural insight.......................................................................................................................8

INTRODUCTION
International marketing is defined as the application of marketing methods and principles to
more than one country; it is a company’s endeavour to reach out to a target audience in a foreign
market while growing sales. It is the globalisation of a company's local marketing strategy, with
a primary focus on market identification, targeting, and positioning beyond regional boundaries.
(Grewal, 2018). Companies use marketing mix to plan and build intensive marketing campaigns
to enable the free flow of goods and services to consumers in several countries. Hello Fresh was
launched in November 2011 with the goal of offering weekly deliveries of goods and recipes to
customers looking for an easy way to prepare meal. It is the world's largest meal kit company,
with operations in the United States, Canada, and Western Europe. It is headquartered in Berlin,
Germany. The report's goal is to determine the best market entry strategy for Sweden, as well as
channels of communication and trends that affect their expansion.
MAIN BODY
Market Entry Strategy
Brief Introduction of the company
Hello Fresh, based in Berlin, Germany, is one of the largest easy-to-cook meal kit
companies. The company was created in November of 2011 with the goal of offering weekly
shipments of goods and recipes to families, allowing them to create delicious cuisine in a short
amount of time at home without having to plan a meal or go out to buy groceries. The Hello
Fresh target market is adults between the ages of 30 and 50, who are generally working
professionals who do not have time to cook or organise meals.
Hello Fresh is currently looking to grow its customer base in additional European nations,
with the goal of delivering organic and vegan recipes, goods, and meal plans. Green Chef is a
certified company that was created in 2014 as a subsidiary of Hello Fresh that sells meal kits
plans to customers who are health concerned, including vegan, Keto, Paleo, organic, and plant-
based diets. Green Chef was founded with the goal of providing consumers with healthy and
organic meal kit plans that are simple and convenient to use while saving them money, time, and
food waste (Magno, Cassia and Bruni, 2017).
Each of Green Chef’s kits includes a fresh, organic, and well-balanced meal, as well as
recipe instructions and images to aid consumers in making and nourishing healthy dinners. Green
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Chef aspires to grow its business operations in Sweden and meet the demands of people who
wish to eat better and more balanced meals.
People in Western countries are switching from non-vegetarian to vegan diets due to the
high nutritional value and health benefits. One of the main reasons for extending business
operations into Sweden is the target audience’s high disposable income and the large demand for
organic packaged food goods. Another important issue is that individuals in Sweden are
becoming more interested in organic, plant-based foods and vegetarianism (Willems, Brengman
and Van Kerrebroeck, 2019). People are becoming more mindful of nature and concerned about
their health; thus, meat is being phased out of their diet.
The intended distribution techniques and channels of distribution for the goods and
services for the products and services produced by the company can be regarded as market entry
strategy. Green Chef chose a joint venture with Amazon, the world’s largest e-commerce
company, when entering a foreign market. Amazon has a large and well-established market
across the globe, with a clear understanding and strong hold on local markets, which is a huge
benefit for Green Chef when partnering with Amazon.
With the rise of online shopping and the introduction of COVID, it has become necessary
for businesses to have contactless business services and supply chains. According to the survey,
about 75.2 percent of all commerce in Sweden is conducted online, making internet commerce a
perfect choice for Green Chef to market their products and services to their target audience.
Furthermore, the development of the pandemic has caused a temporary interruption in the supply
chain, with supermarkets closing temporarily, forcing customers to purchase supplies through
online platforms with simplicity, comfort, and safety (Ulker-Demirel and Demirel, 2018).
The main motivation for forming a joint venture with Amazon is to share risk and
investment. Because, when engaging into a joint venture, both parties contribute equally to the
projects and work together to complete them using their skill and knowledge. Green Chef chose
to enter a foreign market through a joint venture with Amazon for a variety of reasons, including
Amazon’s comprehensive knowledge of the local market and greater awareness of the
demographics and purchasing tendencies of the target audience (Preikschas and et. al., 2017).
Green Chef will benefit from the Joint Venture not just because of the significant market share,
but also because of the knowledge and experience that Amazon has accumulated over time.
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As a result, by forming a joint venture with Amazon, Green Chef will be able to offer its
products on the world’s largest e-commerce platform via Amazon Prime membership and their
official website.
Global trends and their application in the local environment
Many organisations are embracing some globalisation trends in the local market with
the goal of growing and expanding their business worldwide. It is critical to analyse current
marketing trends and attempt to use all of them in a specific firm in order to attract client’s
attention. In the case of Hello Fresh, they implemented various global trends in their local
market, which are detailed below:
Online Shopping: Every company should provide their products online because it is the
most basic and popular trend. Customers can order their products while sitting at home, and
companies will deliver the meals to them within a certain time frame. Hello Fresh allows this
trend in their business because it is a good time for Hello Fresh to provide their customers with
fresh food items that boost their immune systems and help them maintain their health, and all of
these products will be delivered to customers via the internet at a time when the Covid 19
pandemic is negatively impacting people's health (Letunovska and et. al., 2021). People’s need
for online shopping is growing as a result of the fact that no one wants to leave their house to
shop. Customers nowadays feel confident ordering things from the comfort of their own homes.
As a result, adopting this trend in their local market to grow is beneficial for Hello Fresh.
Snackification trend: The majority of consumers like to have a snack at home once a
day, especially when they are hungry in the evening. Snacks are now available at a greater cost
in most organisations, and they are also unhealthy to ingest because most snacks are fried. As a
result, Hello Fresh should develop a new product for their business in order to improve profits,
and the product should be baked snacks including natural components. This will assist them in
attracting new clients to their brand (Chandel and Vij, 2019). It is also suggested that they keep
the pricing of their snack cheaper than those of other snacks on the market. They must also pay
close attention to the quality of their food. This is not going to happen to them, where they take
corners on the quality of their snacks in order to save money. Customers in the period of the
Covid epidemic require high-quality items, particularly eatable products. As a result, it is
advantageous for them to offer natural ingredients in their baked snacks to enhance taste and
flavour to delight clients. This trend of providing nutritious snacks would assist them in
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expanding their market in their local area (Yu, Hudders and Cauberghe, 2017). Second, they can
persuade other neighbourhood vendors to sell their foods at their establishments. This will aid in
the promotion of their new product by raising awareness of it.
Re-Localizing Production: This trend of supplying local items, particularly those that
are well-known in their home nations, is one that should continue to expand. Most customers in
the Covid era demand to eat local products from their own countries since they are aware of how
they are produced and the benefits of their use (Le, Scott and Lohmann, 2019). As a result, it is
advantageous for Hello Fresh to embrace the cooking of items that are well-known in their
operating nations. Second, most customers prefer to support companies that make domestic items
over those that manufacture international items. As a result, it is beneficial for the indicated
company to develop local eatable products in order to obtain client confidence and support.
When a company adopts a good packaging system, all three trends will operate together.
To gain client trust in purchasing items, a corporation must use a clean and acceptable packaging
system. In the case of online shopping, customers will refuse to buy things that are not wrapped
safely and hygienically (Sánchez-Núñez, De Las Heras-Pedrosa and Peláez, 2020). When it
comes to snacks, it is required to list all of the ingredients that go into making them, which may
be seen on the packaging’s packets. Good packaging labelling will also enable the company to
reach out to more clients. Re-localizing production also necessitates suitable packaging. As a
result, incorporating all of the aforementioned worldwide trends in their local marketplaces will
help the organisation achieve more profit and popularity.
Social Media standardization and adaptation
In the context of international market management, it is essential to maintain strong
contact with customers in order to determine their needs and wants so that the company can
develop its products properly. There are two strategies that are used to define how firms might
benefit and which plan will bring the most profit to the company, and they are listed below:
Standardization: It involves sticking to a single plan for a long time without changing
anything from a business standpoint. In the case of Hello Fresh, they can use this method to
engage with their clients via social media and for a longer period of time. This will assist the
organisation in reducing the amount of money spent on various advertising materials (Cheung,
Pires and Rosenberger, 2020). However, this will prevent the organisation from learning about
recent industry trends. As a result, this method is a little improper for Hello Fresh.
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Adaptation: This approach states that promotional tools and customer communication
methods will vary on a regular basis. This strategy will help the organisation get greater
consumer trust by allowing them to grasp their requirements and wants more readily by adopting
new means of communication tailored to their generation (Nyström, Ramstrom and Törnroos,
2017). In the case of Hello Fresh, they use this method to promote their products on various
social media sites such as Instagram, Facebook, and others. They use social media in a variety of
methods to interact with their customers, such as posting photographs and videos of their new
product to alert their followers, and sending feedback forms to their consumers via their websites
and social media accounts to learn about their experiences. As a result, Hello Fresh should use
this method to communicate with a variety of customers that have diverse mindsets.
CONCLUSION
From the preceding discussion, international marketing is involved with managing a
company's expansion of its operations in more than one country. It is the extension of domestic
marketing methods into a foreign market with the goal of reaching the widest possible target
audience and selling goods and services across national borders. International marketing
develops methods for entering a foreign market, including the creation of a marketing mix that
includes product, pricing, location, and promotion, as well as understanding the target market
and determining the best potential ways to meet their demands.
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REFERENCES
Books and Journals
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Appendix A
Segmentation and buying behaviour
Green Chef is a vegan and organic meal kit company that caters to a variety of lifestyles,
including plant-based, organic, vegan, and Paleo diets. The concept is to cater to Swedish
customers between the ages of 18 and 45, who are generally working professionals and students
who live independently and do not have time to prepare meals or arrange a dinner. Almost 80%
of the target audience is made up of working women who want a stress-free meal that doesn't
require any planning or grocery shopping.
People in western regions are accustomed to eating packaged and frozen foods that take less
time to prepare and are simple to use. The Green Chef's meal kits include healthy, organic,
vegetarian, and balanced nutrients, as well as recipe cards and illustrations to make the dinner
more appealing and appetising.
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Appendix B
Cultural insight
The Swedish market’s target customer is primarily made up of working professionals and
students who live alone and have less time to plan and prepare meals. These folks are between
the ages of 18 and 45, and they prefer to eat healthy and vegan food because it contains healthy
and balanced nutrients. People in western culture, on the other hand, consume packaged foods
that can be made quickly with less time, money, effort, and resource waste.
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