International Marketing Report: Amcor Limited's Mexico Strategy

This report provides a comprehensive analysis of Amcor Limited's international marketing strategy, specifically focusing on its potential expansion into the Mexican market. The report begins with an introduction to Amcor's business and its packaging operations, followed by a summary of previous assignment findings. It then delves into the screening process for market selection, outlining the stages involved and the rationale for choosing Mexico. The report examines alternative market entry strategies, including target market selection, positioning, and generic strategies. It analyzes market selection processes and various entry modes, culminating in recommendations for market entry mode, target market, positioning, and generic strategy. The report highlights the importance of considering market factors, competitive analysis, and organizational environmental analysis to achieve Amcor's international marketing objectives. The report also explores the use of SMART objectives and the advantages of Amcor's antimicrobial packaging in the Mexican market. The report concludes with a discussion of the unique challenges and opportunities present in the Mexican market for Amcor Limited.

Running Head: International Marketing
AMCOr limited
International Marketing

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Table of Contents
1.0 Introduction...........................................................................................................................2
2.0 Summaries from Assignment 2............................................................................................3
3.0 Screening of Market Selection..............................................................................................4
3.1 Stages of Selection Process....................................................................................................4
3.1.1 Reason to choose country................................................................................................5
3.2 Objectives...............................................................................................................................5
4.0 Alternative Market entry strategy.........................................................................................7
4.1 Alternative target market selection, positioning....................................................................7
4.2 Market Selection Process.......................................................................................................7
4.2.1 Alternative entry modes..................................................................................................8
4.3 Positioning Strategy...............................................................................................................8
4.4 Alternative Generic Strategies...............................................................................................8
5 Recommendations.......................................................................................................................10
5.1 Market entry mode...............................................................................................................10
5.2 Target Market.......................................................................................................................10
5.3 Positioning Strategy.............................................................................................................10
5.4 Generic Strategy...................................................................................................................10
Conclusion.....................................................................................................................................11

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References......................................................................................................................................12

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1.0 Introduction
The basic business activity performed by Amcor Limited is the packaging of unique types of
goods. From flexible to the inflexible plastic packaging is provided to various companies in
order to provide them sustainable management of the companies’ products. Its headquarters is
situated in Australia and for the growth and expansion purpose; they are planning for the
expansion of the business. For the same purpose, Mexico is selected and in relevance, to the
market situation of the Mexico, appropriate measures will be analyzed before adopting this place
for the expansion. Under this report, all the realistic market entry options available in Mexico
will be discussed in order to attain organizational goals and objectives. Apart from this,
advantages and the disadvantages will also be discussed in relevance to select an adequate
market entry option with a view of long run survival in the Mexico. As Amcor Limited is
involved in the packaging field hence; the most appropriate way to reach the success in the new
market conditions will be setting up their business outlet nearby to the industrial area of the
chosen market. This will help the industrialists to reach to Amcor Limited easily and the chances
of getting contracts of packaging from the new market will be more. The activities performed by
the Amcor Limited helps them to fall down in the B2B type of business market. Amcor Limited
helps the other organizations, generally manufacturing organizations in packaging their finished
goods through various types of packaging as required by the product or the organization.

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2.0 Summaries from Assignment 2
In the first part of this assignment, market factors and the opportunities available in the Mexico
were discussed in order to set up a unique position in the business environment of the particular
place. Adequate risks and the opportunities were discussed with the help of competitive analysis,
market analysis, and the organizational environmental analysis. This was performed with a view
to understanding the organizational position adequately in the Mexico (Fletcher & Crawford,
2013). Apart from these factors, Amcor Limited's strengths, weaknesses, opportunities, and the
threat factors were discussed with various methodologies such as Porter's five forces, BCG
matrix, and value chain analysis and through the SWOT analysis. While evaluating all these
factors in relation with the Amcor Limited, it was analyzed that the legal system of rest world
except the Mexico differs a lot (Kaufmann, Czinkota & Zakrzewski, 2015). Various rules and
regulations come along in the path while establishing their effective position in the Mexican
market with a view to getting involved in the B2B type of organization. Apart from this, it was
analyzed while developing the path to enter into Mexican market for performing the business
functionalities; Mexico has the most attractive market across the globe in terms of expanding the
business with a view to increasing the profitability of the organization. Along with these factors,
management of the Amcor Limited performs the marketing mix functionality in order to attain
maximized profits. While developing the international marketing plan for the Amcor Limited, it
was analyzed that their number of organizations are available which are involved in the same
process as Amcor is involved. In this industry, the main success motive is providing adequate
qualitative packing. This assures the manufacturers in relevance to their products' safety. Price is
a great factor which influences the customers. Hence, Amcor Limited has also analyzed the

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factors relating to the price to set the price of their products as minimum as possible in order to
attract a high number of consumers (Knight, 2015).

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3.0 Screening of Market Selection
Screening of market selection involves the procedure to adapt the most appropriate and effective
market for the Amcor Limited for achieving better results (Marchi, et. al., 2014). The basic
motive for the expansion for Amcor Limited is to increase their profitability as well as to
separate their unique identity in the global market. Below discussed aspects are the parts of the
market selection process:
3.1 Stages of Selection Process
Global Marketing Objectives: This is the basic route to analyze an adequate way to reach to
destination for expansion in the abroad countries. Evaluation of the marketing objectives allows
the organization to evaluate the certain methods to enter into the country and in their market.
Through performing this methodology, an organization is able to determine all the positive as
well as negative resources which could benefit the organization or which could harm the
organizational performance. The market needs to be selected after determining all marketing
factors such as macro as well as micro environmental factors of the particular market. For
instance, if Mexico does not believe in the production activities and they only believe in the
export of goods than the demand of packaging material and the packaging organizations will be
less. Hence, this could be a negative factor for the organization and this will impact
organizational motive of expansion (Katsikeas, 2014).
Factors of market selection: Before selecting the appropriate mode of entry or the appropriate
market for performing the business activities for achieving the organizational objectives, it is
necessary to set the parameters so that comparison could be done easily. The basic elements

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which are included in the selection process of market entry are internal and external factors of
the business, macro as well as micro environmental factors, competition, legal parameters,
resources available with the firm, etc. This helps the organization to determine the most
appropriate market entry mode to for setting up the firm’s position in the international market as
well as to determine the success factors involved in the selected market. Technology, Culture,
Free markets, peace, economy, market demand, etc. are some of the aspects which should be
included in the selection process in order to attain the adequate growth (Schu & Morschett,
2017).
(Source: Winter, B., 2017)
Initial Screening: This action is performed at the time of selecting the potential markets for
developing the adequate image in the market. Non-potential markets are disqualified at the initial
step only in order to save the time of the organization. This eases the organizational process to
select the adequate market to perform their functionalities. For performing this step, appropriate
methods need to adopt such as measures for performing the screening needs to remain

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unchanged for every market. Markets could be measured on the basis of a size of the particular
area, a population of that area, average income group people in that area, infrastructure of the
area, political considerations, etc. All these factors become the part of the screening process
(Armstrong, et. al., 2015).
Shortlisting of a market: After performing the step of screening, the remaining markets needs
to be evaluated again on the advanced measures in order to determine the benefits of the markets.
These functionalities play very crucial role while selecting a market for the organization. While
performing the screening process, advanced aspects will opt in order to achieve the expected
growth rate for the organization (Majaro, 2013).
Assessment and Selection: After shortlisting the available markets, the further assessment
process will be conducted for selecting one of the best markets with an assumption of long run
survival, from the growth perceptive, etc. Generally, this step is performed while organization
launches any new product but this step is also feasible in the launching the new business or the
existing business in the new market. As per this scenario, markets are assessed for Amcor
Limited to expand its business functionalities in an international market and for now, Mexico is
chosen as the preferred country to operate its business (Choi & Yeniyurt, 2015).
3.1.1 Reason to choose country
There are a number of reasons available in the Mexican market which is responsible for the
selection of the country:
 The market condition, as well as the size of the Mexican market, is quite favorable for
businesses like Amcor Limited.

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 Rules and the regulations in the Mexican market in relevance with the commercial
operations as they are quite efficient in relation to other countries’ regulations.
 The quality of the packaging provided by the Amcor Limited helps them to stay unique
from its competitors.
 The current population of the Mexico is equivalent to the 1.73% of the total population of
the world and along with this figure of a population, they have a satisfactory GDP which
provides the Mexican public the adequate power of purchase. Hence, chances of
antimicrobial product packaging will be high in Mexico.
 Apart from the market barriers such as the unique legal system, numerous market drivers
are present in the Mexico which helps the investors and the marketers to perform their
business activities in the Mexico (Oh & Contractor, 2014).
3.2 Objectives
Amcor Limited is involved in the packaging of the various products. For determination of risks
and the opportunities in the international market, Amcor Limited has decided to move towards
the Mexico in order to attain adequate objective and the goals for the organization. Expansion of
the organization is conducted on the expectation of achieving growth and to set up its
international image in the global market. Following are the objectives set up by the Amcor
Limited in order to attain their target for setting up business in the international market:
 The product provided by Amcor Limited is the antimicrobial packaging. They provide
this packaging for every type of products manufactured such as household items,
perishable and non-perishable goods, etc. Apart from this, the specialty of their

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packaging is that it is chemical resistant and coating with the alcohol pads builds the
packaging strong and reliable.
 In order to attain the adequate position in the Mexican market, the price of the
antimicrobial packaging is set to the cheapest one. This will help them to gain the number
of consumers and their objectives will also get fulfilled (Czinkota & Czinkota, 2013).
 They have adopted various techniques to spread awareness in the Mexican market in
relevance with their products. They have adopted the strategy of promotion and
advertisement such as sponsorship, digital media platforms as well as the print media
platforms (Sekaran & Bougie, 2016).
 Development or adaptation of adequate competitive strategies is very necessary for
Amcor Limited in order to develop a unique image in the competitive business
environment. Visy Industries, Pact Group, and Sealed Air Australia are the primary
competitors of the Amcor Limited through which consumers needs to perform various
steps while choosing the adequate product for them (Demangeot, Broderick & Craig,
2015).
 Amcor Limited uses the environmentally friendly material to produce their products, this
becomes the major reason through which Amcor Limited's products become the bit costly
in relevance to its competitor’ products. Despite being costly, Amcor Limited’s
packaging provides the assurance of safety of products.
SMART objectives of Amcor Limited
 The first aspect of SMART objective is the specific and significant goals, these goals
help the organization to attain an effective position in the global market. Amcor

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Limited’s specific goals are to deliver adequate packaging to the manufacturers of
Mexico in order to expand their business in the global market (Atzori, Iera & Morabito,
2014).
 Amcor Limited has gained an adequate position in Australia and with this effect; they
have decided to move towards the global market. Hence, their products are marked as
global standard.
 The products provided by Amcor Limited have the enough capability to attain the
effective market image in the global market and as per the analysis was done on the
purchasing power of customers, and the market size of the Mexico helps the Amcor to
attain the adequate position in global market (Eteokleous, Leonidou & Katsikeas, 2016).
 The packaging provided by Amcor Limited is highly qualitative for preserving various
types of products. Despite being the harsh market of Mexico in terms of rules and
regulations, Amcor Limited has assumed the high demand for their products and this is
due to the attainability of its products.
 The goals developed by the Amcor Limited are capable enough to create a distinctive
image in the Mexican market. The major source through which the goals developed could
be turned into the reality is the timely production of the packaging as well as the timely
delivery of those products to the Mexican industries to provide them the great experience.
This will develop the trust on the Amcor Limited by Mexican industrialists.

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4.0 Alternative Market entry strategy
There are a number of market entry options available in the business. Market entry options for
entering into a domestic market and in international market differ from each other. As per this
scenario, Amcor Limited is traveling to Mexico with the view to expand its business and to
increase its profitability. For entering the Mexican market, they need to evaluate all the available
market entry options such as joint venture, partnership, direct exporting, etc. Following is the
description of relevance with the market entry options available in the Mexican market for
Amcor Limited:
4.1 Alternative target market selection, positioning
Direct Exporting: This is the source which is invented by the organization only through its own
sources. Own sources may be contacts with friends, relatives, etc. in order to deal in the
particular country through their help. In the scenario of Amcor Limited, they do not have any
contacts in Mexico; hence this option will not be preferred one for them (Ang, Benischke & Doh,
2015).

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(Source: The Yucatan Times, 2014)
Licensing: This is included in the foreign entry modes and this is a preferable option for most of
the organization. Under this, an agreement is signed by the host country as well as the
organization who is interested in performing the business activities in the particular country. The
organization gets the right to secure their intangible assets such as patents, trademarks,
techniques, etc. This is the official entry mode while expanding the business in the global
market. The license is provided for a certain period of time and for executing their operations
after that period, renewal of the license is must in order to avoid the glitch in the operations of
the organization (Bond & Saggi, 2014).
Franchising: This type of business is quite famous in the food chain industry. Under this type of
business, parent company (franchiser) provides their trademarks to the interested organization,
who wants to operate their activities (franchisees) in return for royalties, or fees. For instance,
Mc Donald’s is an American fast food chain and they have various outlets across the globe and
all they are operated on the basis of goodwill. This type of business is beneficial to the firm
which has goodwill in the domestic as well as international market. The fees paid by the
franchisees to the franchisor are for the goodwill only (Burton & Cross, 2015).
Amongst the available foreign entry modes, Amcor Limited should choose the licensing as their
preferred option for entering into Mexican market for the purpose of trading. Apart from this,
franchising type of business requires goodwill and brand image in the international market,
whereas they have their goodwill in the Australia only. Hence, the best option for Amcor
Limited will be the licensing and through this, they will get the rights to secure their trademarks,
patents, etc. and along with these options, organization will get the certain period in order to set

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up their goodwill and to perform their business functions in order to achieve adequate goals and
the objectives.
4.2 Market Selection Process
Under this method, an adequate market will be selected in order to conceive the factors of the
organization. Mexico is selected amongst the number of countries available for the business
expansion across the globe (Andersson & Xiao, 2016).
4.2.1 Alternative entry modes
The most suitable market entry for the Amcor Limited in Mexico will be licensing whereas there
are other market entry modes are also available such as direct exporting, franchising, joint
venture, partnership, indirect exports, etc.
Amongst them, the next suitable entry mode will be the joint venture and the partnership type of
business. Whereas joint venture type of business will be operated for a certain period of time or
say for a contract only while, partnership type of business could be operated till the time all the
partners show their consent. Hence, Amcor Limited could choose the partnership type of
business with the local organization of the Mexican market. This will help the Amcor to gain the
goodwill on behalf of the local organization and apart from this, less investment, sharing of
losses and risks will also be beard by both the partners. While conducting business activities
through the sole proprietorship, all the losses, risks, etc. will be beard by single owner only
(Johanson & Mattsson, 2015).

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(Source: theworldfolio.com, 2017).
4.3 Positioning Strategy
Positioning strategies are used to establish the product's or business' image in the new market
conditions. As per the current scenario, Amcor Limited which provides unique packaging
facilities to almost all types of industries has decided to expand their business in Mexico.
Amongst the seven approaches of positioning strategies, product’s characteristics will be the
most beneficial for Amcor Limited. Under this approach, products’ characteristics will be
promoted in the new market conditions to establish their brand value. Along with the product
characteristics, Amcor Limited could also choose the price-quality approach for the developing
unique identity in the Mexican market (Solomon, 2014).

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4.4 Alternative Generic Strategies
Generic strategies were invented by Michael Porter in 1985 and there are the three approaches
for these strategies through which organization could gain some competitive advantage while
setting up the business in international market. These approaches could be fitted in all types of
industries irrelevant with the size of the business. Cost Leadership, Focus, and the Differentiation
are the three approaches of generic strategies and the focus approach has been segregated in two
parts i.e. cost focus as well as differentiation focus (Greckhamer & Gur, 2015).
 Cost Leadership Strategy: Under this technique, an organization has two options i.e.
increasing sales through reducing costs and increasing profits by reducing the selling
price of the products and work at the reasonable rate of profit. These both options will
provide the competitive advantage to the organization. Amcor Limited could adopt one of
the strategies to compete with its competitors in the new market conditions as well as to
build the market image. Adaptation of these approaches will help the organization to
become the leader of the cost because with the changes in the price of the products done
by one organization would influence the competitors’ to adopt the same change (D.
Banker, Mashruwala & Tripathy, 2014).
 Differentiation Strategy: This approach requires amendments in the products or the
services provided by the organization in order to make it different or unique from its
competitors. As per the scenario of Amcor Limited, they can adopt this strategy in their
workplace with the view to update or make the product unique from its competitors
available in Mexico. This will help them to gain the competitive advantage as well as it

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will also help the organization to build the trust amongst the consumers towards the
organization (Zehir, Can & Karaboga, 2015).
 Focus Strategy: As per this strategy, an organization needs to concentrate on the
specialty of the product, concentrating on the unique needs of the customers are also
included in the focus strategy. As per the Michael Porter (1985), the adaptation of the
focus strategy will help the manufacturer to build the customer oriented products which
could fulfill their demands, as well as adequate satisfaction, could be obtained from the
utilization of that product. In other words, the Amcor Limited needs to raise the
packaging standard in order to fulfill the demands of the customers as well as the
products provided to them needs to be valuable as per the price of the product
(Angeloska-Dichovska & Mirchevska, 2017).

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5 Recommendations
5.1 Market entry mode
As per the scenario, it has been recommended that Amcor Limited needs to choose the licensing
type of entry mode in terms of moving towards the international market. As per the market
research analysis, Mexico has been finalized in terms of the expansion of their business hence;
adaptation of the appropriate techniques is necessary in order to gain the adequate place in the
Mexican market.
5.2 Target Market
The country has been chosen in order to expand the Amcor Limited’s business in international
market. The major reason for choosing the market of Mexico is the attractive purchasing power
of the consumers and the rapid increase in the GDP of Mexico enhance the chances for
expanding the business for Amcor Limited. The main concern of Amcor Limited will be the
manufacturing industries as they will be the major utilization of packaging offered by the Amcor
Limited. Hence, it is recommended that Amcor Limited needs to consider towards the
manufacturing industries.
5.3 Positioning Strategy
As per the scenario of Amcor Limited, they are seeking for the expansion of the business in the
international market and for the same; it has been recommended to Amcor Limited that amongst
the seven approaches of positioning strategy, utilising products’ characteristics and the pricing
strategy will be most successful for them to establish the market position in the Mexico.

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5.4 Generic Strategy
As per the situation of Amcor Limited and the generic strategies provided by Michael Porter
(1985), the adaptation of the generic strategy will be done on the basis of SWOT analysis
because it has three approaches i.e. focus, differentiation and the cost leadership. Till the time, an
organization would not be able to gain the adequate knowledge in relevance with the strengths,
weaknesses, opportunities and the threats of the organization, adaptation of the appropriate
strategy for making the unique identity of the organization will be the bit difficult task.

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Conclusion
From the above analysis, it has been concluded that for the expansion in the international market,
adequate marketing plan needs to be developed. This part is the addition to the assessment one
and under this report, appropriate market entry option is evaluated in order to enter into the
Mexican for the business expansion in the international market. First of all, market selection
techniques were defined and additionally stages of the market selection were described for
evaluating the most appropriate market that could be suitable for Mexican industry. The main
concern for developing international marketing plan was to determine the scope of the Amcor
Limited’s business in the global market. As they have already the huge brand image in the
Australian market and taking this as an inspiration, organizational management decided to
promote their business in the international market with the objective of attainment of the goals
and the targets. Furthermore, alternative market entry options, generic entry modes, and the
recommendation parts were discussed in order to make the international business more
successful.

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