International Marketing Strategy Report: Boss Brewing in Lithuania

This report provides an in-depth analysis of the international marketing strategy for Boss Brewing, a UK-based small business, focusing on its potential expansion into Lithuania. The report begins with an overview of the company and its achievements, followed by an assessment of the opportunities in Lithuania's macro and micro environments. It then outlines specific objectives, strategies based on the Ansoff Model (market development, diversification, market penetration, and product development), and tactics including the marketing mix (product, price, promotion, and place). Key aspects such as the favorable political environment, skilled workforce, and the cultural acceptance of international brands are discussed, alongside challenges like competition and the threat of substitute products. The report concludes with recommendations for Boss Brewing to successfully establish its business in Lithuania, emphasizing the importance of organic production, price sensitivity, and promotion strategies to cater to the Lithuanian market. The report aims to provide practical application of international marketing principles.

RUNNING HEAD: INTERNATIONAL MARKETING
INTERNATIONAL MARKETING
Student ID Number:
Student Full Name: John Smith
Date: 25 August 2019

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Contents
Introduction........................................................................................................................2
Company overview............................................................................................................2
Opportunity Assessment....................................................................................................2
Macro environment.........................................................................................................2
Micro environment..........................................................................................................3
Objectives..........................................................................................................................5
Strategies...........................................................................................................................5
Tactics................................................................................................................................6
Marketing Mix.................................................................................................................6
Key aspects.......................................................................................................................7
Key challenges..................................................................................................................8
Conclusion.........................................................................................................................9
Bibliography.....................................................................................................................10

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Introduction
The research report is prepared on the title ‘Marketing strategy’. It is a plan of action
designed to promote and sell a product or service. It is a long term approach for
achieving competitive advantage (Baker, 2014). The report deals with developing global
marketing strategies for a UK based company named as ‘Boss Brewing’ (Caldwell,
2018). The report initiates with a brief overview of the Boss Brewing Company. It
includes the assessment of opportunity based on environment analysis. In order to
achieve the set objectives, applicable tactics and strategies are also included.
Moreover, it also comprises of the key aspects and possible challenges for establishing
business in Lithuania by Boss Brewing Company. The key purpose of the report is to
upgrade the knowledge based on international marketing. Additionally, it also provides
an opportunity to practically apply the learning to a real business enterprise.
Company overview
Boss Brewing is a UK based Small business enterprise founded by Sarah John. It was
awarded ‘Amazon growing business award’ for the year 2018. It was listed in one of
largest growing micro-business because it has been successful in making a turnover
growth of ‘248%’ within the last three years (Caldwell, 2018). It is analyzed that within a
short span it has won around 20 awards (Boss Brewing , 2019).
Opportunity Assessment
It is analyzed that there is number of opportunities prevailing for ‘Boss Brewing’ in
external as well as internal environment of Lithuania.
Macro-environment
In relation to the previous assignment, it is assessed that the Lithuania government
attains a strong relation with the foreign country (Stanev , 2018). Thus, it will make it
easy for the Boss Brewing Company to establish its business in Lithuania. Thus,
political environment of Lithuania is attractive for establishing business. Further, it builds
an opportunity to enhance its brand recognition in the global world.
As mentioned previously, Lithuania is among the list of top economies. Its high Gross
Domestic product states that people attain more disposable income (Anon., 2019).

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Thus, it builds an opportunity of achieving higher sales. Additionally, Lithuania's skilled
employees also act an opportunity for Boss brewing. This is because it will be able to
easily recruit efficient and skilled labor.
The population strength of 2.7 million brings a chance for the company as it can have
access to large customer base. Lithuanians acceptable nature towards international
brands would help the company in easily acquiring potential countries in a newer
international market (World Population Review, 2019).
Lithuania attains supportive infrastructure necessary for business transactions. It assists
in reducing its manual requirements in business activities. The facility of high-speed
internet access builds an opportunity as it can easily connect with its customers through
online channels. Thus, Luthainia will act as a business-friendly environment for Boss
Brewing Company (Invest Lithuania , 2019).
As mentioned previously, Luthainia is facing a certain issue with respect to its
environment (EPHA, 2018). However, Boss Brewing Company is not involved in
production that requires natural resources in abundant quantities. Additionally, it does
not engage in production that has a harmful effect on the natural environment of
Lithuania. Thus, it suggests that boss brewing company will find ease in establishing its
business in Lithuania.
Lastly, it is assessed that Boss brewing will not face a legal issue in setting a business
in Lithuania as the country’s government favors new business establishments (Invest
Lithuania , 2019).
Microenvironment
Microenvironment analysis is the assessment of internal factors that has effect on
business performance. It focuses on elements like competitors, industry and suppliers.
It assists in evaluating the opportunities and threats prevailing in the internal
environment (Fleisher, 2015). As per the Porter’s Five Model, the microenvironment of
‘Boss brewing’ in beer industry states the following:
1. Industry Rivalry: It states the level of competition is prevailing among the
companies in the industry. It is analyzed that there is large number of beer

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companies operating in Lithuania. However, there are only specific recognized
breweries that are famous among individuals. Additionally, Boss brewing is
engaged in wide variety of unique and limited beer (Boss Brewing , 2019). Being
a UK based company, its beer will have a different essence from the Lithuanian
based beers. Moreover, it is assessed that Lithuanians consider foreign
company’s products as a mark of high quality (SOCIETE GENERALE, 2019).
Thus, it will help the company in earning competitive advantage in Lithuania.
Figure1: List of top-rated breweries
Source: (Rate Beer , 2019)
2. Bargaining power of customer: It states the power of the customer to drive
down the product price. It is analyzed that Lithuania attains a population of
around 27 lakhs (Worldometers , 2019). Additionally, it is assessed that beer is a
highly consumable beverage among the population (Lonely Planet , 2019).
Therefore, it is analyzed that high numbers of customers result in low bargaining
power. Thus, it is considered as a positive factor for the Boss Brewing as it will
have high control over the price of its products.
3. Bargaining power of suppliers: This factor focuses on the power of the
suppliers to affect the price. As mentioned above, beer is a common alcoholic
drink in Lithuania. Therefore, there is high number of suppliers. Thus, it suggests
that bargaining power of suppliers is low (Petraškevičius, 2017).

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4. The threat of substitute products: It is risk associated with alternate products
that offer similar benefits to the customers. It is analyzed that the company
attains low threat of substitute. This is because from the initial time Lithuanians
are opting for beer as an alcoholic drink (Lonely Planet , 2019). However, it is
examined that gradually Lithuanians are preferring Non-alcoholic beer
(EN.DELFI, 2018). Thus, Boss Brewing Company beers can be substituted by
non-alcoholic beers. However, it brings a chance for the company to develop
additional beer of non-alcoholic nature. It will aid the Boss Brewing Company to
meet the rising demand in Lithuania.
5. The threat of new entrants: It is risk associated with the emergence of a new
competitor in the market. It is examined that Boss brew attain some degree of
threat from new entrants. This is because Lithuanian government welcomes
international business to invest in country (Invest Lithuania , 2019). Additionally,
it has low tariff barriers that make it easy for the new entrant to establish
business in Lithuania. Hence, it does not brings further opportunities for Boss
Brewing Company.
Thus, after analyzing the external and internal environment it is assessed that the
external environment is much favorable for the Boss brewing company.
Objectives
Following is the list of objectives for Boss Brewing Company to establish its business in
Lithuania:
 Developing high demand Thus, one of the major objectives of Boss Brewing is to
raise product demand among Lithuanians.
 One of the key goals of the business is to avail high profit. Similarly, Boss
Brewing Company also attains an objective of generating high profits by
amendment in business activities.
 Recruiting the right workforce is mandatory for successful business as it has
direct effect on overall sale and customer relation. Likewise, Boss brewing
company attains a goal of employing right workforce in Lithuania (Crossley,
2013).

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Strategies
As per the Ansoff Model, it is examined:
1. Market Development: It focuses on developing strategies for entering a new
market. It is assessed that before initiating its business on the physical platforms,
Boss brewing company should initiate its business by selling beer through the
online channels in Lithuania. This strategy will lower down the financial risk of the
company (Daykin , 2018). Additionally, it will assist in gain knowledge about the
preference of the Lithuanians over the Boss brewing company beers. This will aid
in developing better strategies for the future in Lithuanian market.
2. Diversification: It deals with developing strategies for entering a new market
with new product/service. It includes initiation of more channels to foster
product/service growth in newer market. As mentioned above, there is a growing
demand for non-alcoholic beer among the Lithuanians (EN.DELFI, 2018). This
generates a key opportunity for boss brewing company in Lithuania. It should
exploit the opportunity through product diversification. Thus, it suggests that it
should modify some of its beer by making them non-alcoholic nature.
Additionally, it can also adopt on product development strategy by developing
organic beers as these also preferred by Lithuanians (EN.DELFI, 2019). Hence,
it will most probably foster the product sell in Lithuania.
3. Market Penetration: Market penetration deals with enhancing market growth
rate by enhancing customer loyalty and improving the customer value in a
business (Han, 2013). It focuses on gaining high market growth in existing
market (United Kingdom). However, it will help the company in gaining brand
recognition and establishing goodwill in UK. This factor will not directly help Boss
Brewing Company in enhancing sales in Lithuania. However, established
goodwill and brand recognition can have a positive effect on Lithuanians.
4. Product development: It relies on strategies to develop and modify existing
products/services. It deals with adding more value to the existing product. It is
analyzed that it is one of the best practice that results in positive product
development. It is suggested that boss brewing company should lower down its
beer price without compromising on the product value. Modifying the price of the

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beers will help the company in generating high demand as Lithuanians are price
sensitive (Llkeviciute, 2017).
Tactics
In order for Boss Brewing Company to establish its business in Lithuania, it must focus
on the key points described below.
Marketing Mix
It is a marketing strategy used by the company for the promotion of a product and
service in a competitive market. It is analyzed that marketing mix strategy helps the
company in providing right product with right price through right channels to the
potential customers (Lee, 2011).
Product: It is a merchandise that satisfies the customers. It is stated that quality is one
of the important elements in product demand (Baker, 2014).
It is examined that Lithuanians show a high preference for organic products (EN.DELFI,
2019). Thus, it is suggested that Boss Brewing Company should lay prior attention in
producing the beer more through organic methods. This step will directly enhance the
sale of the company’s beer among the customers. It is examined that there is
prevalence of high degree of individualism among the Lithuanians. Thus, it is suggested
that Boss Brewing Company should focus on offering beer in smaller quantities to
match the customers’ requirements and country’s culture (Hofstede Insight , 2019).
Price: It is the amount charged from the customer for the product/service. It is very
crucial to set effective pricing as it directly regulates the product demand. Moreover, it
acts a competitive weapon and is considered an element of profitability (Baker, 2014).
It is analyzed that Lithuanians are price sensitive. However, this does not mean that it
should offer heavy discounts to gain market share. Instead, it should monitor its
competitors and charge accordingly. Additionally, Boss Brewing Company should focus
on selling its beer at a reasonable rate (Llkeviciute, 2017). This would enable the
company to attract potential customers without consuming much time. As mentioned
above, Lithuanians are the followers of individualistic culture. Thus, Boss Brewing
Company should rely on offering discounts at a smaller quantity to match with the

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individualistic culture of the customers. However, in order to sell the product to price-
sensitive Lithuanians, boss brewing company must not compromise with its product
quality because it will directly effect its brand status in the market. Thus, I should be
compelling and competitive in its pricing strategy (LUMINA DATAMATICS , 2019).
Promotion: It refers to the methods used for boosting the sale of the product/service. It
is analyzed that it will help the company in enhancing its brand awareness among the
Lithuanians. It will also increase the customer traffic that will directly foster the
company’s overall sales and profit (Baker, 2014).
In order to promote the beers of Boss Brewing Company in Lithuania, it should rely on
television and radio marketing. This is because these media have a high engagement
rate among the Lithuanians. Additionally, it will help the boss brewing company in
developing positive image, brand recognition and building trust among the customers
(STARTUP OVERSEAS, 2019). Moreover, it should also opt for digital marketing as
there are around ‘1.41 million’ e-shoppers in Lithuania (SOCIETE GENERALE, 2019).
Additionally, Lithuania’s high internet access will aid in marketing. It will help the
company in targeting customers through various channels including social media
(STARTUP OVERSEAS, 2019)
Key aspects
After analyzing the macro environment and as per the McKinsey 7s model, the following
points are analyzed:
1. Structure: It should adopt an organization structure with less power distance.
This will help the company in matching with the intermediate level of power
distance in Lithuania. Enabling decentralization of power in the organization will
help the Boss Brewing Company to establish high employee morale within the
company. This is because Lithuanians prefer less hierarchal control and favor the
decentralization of power. Instead they prefer open management style and
working in teams (Hofstede Insight , 2019).
Decentralizing power will help the company in taking fast decision and it will be
able to serve its customers timelier as teamwork results in less wastage of time.

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It will generate the creativity of ideas within the work environment. Moreover, it
will the company to establish cordial relations with its workforce that ultimately
results in better and quality output from employee. (Hofstede Insight , 2019).
2. Staff: It is analyzed that Boss Brewing Company should recruit fewer staff
members at the initial setup. This will help the company in cutting operational
costs (Carpenter , 2017). Additionally, to serve its customers more effectively,
Boss Brewing Company should lay prior attention in recruiting individuals with the
skills described below.
3. Skills: It is analyzed that it should retain employees with the best effective verbal
communication skills. This is because Lithuanians do not rely on non-verbal
communication and use verbal communication for the expression of their
thoughts. It is examined that employee should have knowledge of Lithuanian,
English and German. It is mandatory to retain employee with language expertise
as Lithuanians are multilingual (Business Culture , 2019). It will help the boss
brewing company in understanding its customer’s needs and wants more
accurately. It will further assist in maintaining positive customer relationships as
good communication is a sign of better interpersonal relation (Strategic
Management Insight , 2013).
Key challenges
Time schedule: the key challenge is to focus on time schedule. It is analyzed that
Lithuanians are punctual by their nature (Rowell, 2014). Therefore, it should emphasis
on aligning with the Lithuanians behavior pattern. It should lay prior attention in
delivering its products and solving customer queries timely. It is assumed that failure in
following the time schedule will bring a threat of poor customer relationships that will
ultimately result in losing customers.
People: It is analyzed that Lithuanians are highly patriotic by their nature (Orange Smile
, 2019). As mentioned above, Boss Brewing Company is a UK based. Therefore, it must
focus on not to deal with any aspect that can affect their patriotism. It will affect a poor
effect on the business process as it can directly disturb its product sales and will result
in poor customer relations.

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Budgeting: Another challenge that can face by the Boss brewing company is to
develop a budget. A budget is an estimation of revenue and expenses that may incurred
in future for a specific period of time (Bierman Jr, 2012). As Lithuania is a new
international market for Boss Brewing Company, therefore the company will experience
difficulty in developing a budget as it will have no past experience about the business in
Lithuania. However, it orders to avoid the challenge it should rely on developing budget
after examining the Lithuania market.
Conclusion
The research report summarizes on the title ‘Marketing Strategy’. Environment analysis
of Boss brewing states that macro environment is much favorable than
microenvironment. Additionally, it is assessed that there is high number of opportunities
prevailing in Lithuania. In order to utilize the opportunities mentioned above, Boss
brewing company should rely on the objectives, tactics and strategies mentioned above.
However, despite opportunity, it is analyzed that are certain challenges that a company
must face to establish its business in Lithuania. Thus, the above discussion concludes
that Boss Brewing Company can attain success in Lithuania.

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