Dale Farm: International Marketing Strategy for Ice Yogurt in Brazil

This report examines Dale Farm Limited's international marketing strategy, focusing on the potential expansion of its ice yogurt product into the Brazilian market. It begins by outlining the opportunities within Brazil, including a wealthy and adaptable consumer base, a stable government, and a growing economy. The report then details the objectives for the marketing strategy, aiming to increase market share and revenue. The core of the report analyzes the STP (Segmentation, Targeting, and Positioning) process, identifying demographic and psychographic segmentation, targeting consumers based on gender and health consciousness, and positioning the product for affordability and accessibility. The marketing mix, encompassing product, price, place, and promotion, is also discussed. Finally, the report highlights key challenges to global expansion. The report provides a comprehensive overview of the marketing plan for Dale Farm's ice yogurt in the Brazilian market.

INTERNATIONAL
MARKEITNG

TABLE OF CONTENTS
INTRODUCTION...............................................................................................................3
MAIN BODY.......................................................................................................................3
Justifying the opportunity within the country.............................................................3
Objectives for marketing strategy..............................................................................4
STP............................................................................................................................5
Marketing mix............................................................................................................7
Key challenges to global expansion..........................................................................8
CONCLUSION...................................................................................................................9
REFERENCES................................................................................................................10

INTRODUCTION
Developing a market strategy is very crucial for the company to expand its
business in other countries (Schlegelmilch, 2016). This is very necessary due to the fact
that this help the company in strategizing in advance that what steps are to be taken to
target the new market. the present study is based on the Dale Farm Limited which is a
Northern Ireland’s leading dairy company owned by cooperatives.
The present report will start by outlining the opportunities present for expanding
the yogurt product in the Brazilian market. Further the objectives of this expansion along
with the STP of the market will be outlined. In the end the marketing mix and the
challenges faced by the company due to expansion will be highlighted.
MAIN BODY
Justifying the opportunity within the country
The company Dale Farm is the one which is situated in Northern Ireland and
deals in a variety of the dairy products like cream, cheese, ice cream, spreads and other
related products in many different countries. The company has a global reach in many
countries and is owned by the cooperatives which includes more than 1300 dairy
farmers in Northern Ireland and Scotland and England. The company supplies all the
retail sectors, food services companies and to the raw material market of food with a
wide range of dairy products and services to UK and more than 45 different countries all
over the globe.
The main aim of the company is to provide its users the superior quality products
and services. It has a range of award winning brands like Dale Farm Spelga, Mullins Ice
Creams, Rowan Glen, Fivemiletown, Dromona, Loseley and many other brands dealing

in variety of other services. The company by taking the local milk as produces a wide
variety of different products to cater to the needs of the consumers. Thus, in present the
company is coming up with a new ice yogurt which will help the consumers to have
yogurt even when they are travelling. This product needs to be expanded in the
Brazilian market (Baena, 2019). The major reason for this expansion is that there are
many opportunities for the company in Brazilian market. The different opportunities
present for Dale Farm in the market of Brazil is discussed in the following points
connected below-
The first and foremost thing for the company which is an opportunity for the
company is that the majority of people within the country are rich. Thus, they will like the
new concept of ice yogurt and this will help the company in maximising the sales and
revenues for the company (De Mooij, 2018).
Another opportunity for Dale Farm in expanding its product range to Brazil is that
the citizen of Brazil is very fast and they adapt to the latest changes in the trends and
taste and preferences of the consumers. Thus, the consumer in Brazil will like the new
concept of ice yogurt as this will help the people in consuming anywhere at any time.
Moreover, another opportunity for the company is that government of Brazil is
very stable and thus, it is beneficial for Dale farm. This is majorly because of the fact
that if the government will be stable then the business will go on smoothly without any
restrictions and limitations. It is pertaining to the fact that if government will be stable
then SME can enter into the new market without much entry barriers.
Another important opportunity for Dale Farm in Brazil market is that this is a
growing economy and this will help Dale farm to have more growth options within the

company. Also, as the economy of Brazil is growing it means that the company will find
some relaxations and benefits which will encourage the business to expand its product
in Brazilian market.
However, the other opportunity for Dale Farms is that the resources in this
market are at cheaper rates as compared to the other countries. Thus, this will be
beneficial for company as they will get the raw material and other inputs at the cheaper
rates. This will reduce the cost of raw materials for the company and this will increase
the profits for the company.
Another important opportunity for the company for investing in Brazilian market
for expansion is that the country is working on improving the technology within the
country. Thus, this will help the company in improving the technological state of the
country. Hence, for this also the company will get some benefits and discounts.
Moreover, there is another opportunity for the company in expanding the
business in Brazil is that many other countries are also investing in Brazil in form of ICT
that is Information Communication Technology which will develop the country
(Grigorescu and Zaif, 2017).
Objectives for marketing strategy
Before entering into the new market, it is very necessary for the company to form
some objective to give direction to the working. This setting up of objective is very
important for the company because if the objectives are not set then the company will
not know which area they have to work. Hence, this will help the company in planning
the whole process of expanding in the market. Thus, it is very essential for the company
to make the objectives and then make strategies for the development of global

marketing plan. The objectives of global marketing strategy for Dales Farm Limited are
as follow-
 To expand the ice yogurt in the Brazilian market by 50 % till February 2020.
 To increase the revenues by 40 % by middle of 2020.
 To market the product in Brazilian market to increase sales by 50 % till April
2020.
These objectives are necessary to be established because of the fact that the
company is expanding with the motive of the earning more profit (Solberg, 2017). Thus,
all these three objectives will help the company in increasing their profits and the market
share. Thus, all the three objectives are aiming for the growth and development of the
company. Hence, if company makes the strategy in accordance with these objectives
then definitely they will attain profitability.
STP
This is an acronym which stands for Segmentation, Targeting and Positioning.
This is a strategic process through which the company tries to focus on the marketing of
the goods and services in which they are working. This tool is helpful for the company in
order to plan for the area which they need to focus for their product or the services and
target that only. This is very necessary because of the fact that in overall there are
many types of consumers. But it is not necessary that all the different range of
consumers will like the new product of the company. Thus, for this the it is very
necessary for the company to develop plans for communicating to the only those
consumers who are specific and interested in the product and services of the company.

Thus, the STP plan of Dales Farm Limited is discussed in the following points
connected below-
Segmentation- this is defined as the dividing of the consumers in different types
of groups so that marketing can be easily done for those group. This segmenting the
consumers in particular group on basis of some common characteristics and beliefs.
This is done with the intention of minimising the efforts of company in marketing the
product. It is so because of the fact that with clubbing the consumer all the focus of the
company will be on particular group only and not on individual consumers (Kanagal,
2017). Thus, this will help the company in preparing one marketing plan for the whole
group. The segmentation is being done on the basis of grouping of common people in a
particular group.
The segmentation for the marketing of ice yogurt in the Brazilian market is
majorly done on the basis of demographic and psychology of the consumer. Under the
demographic segment the major focus area is the segment on basis of gender, age,
education, income, profession and many others (Hadjikhani, Lee and Park, 2016). Also,
in the other segment that is the psychographic is a segment which is done on the basis
of the attitude, lifestyle, beliefs, personality and other related things of the human
behaviour. The segmentation is chosen by the company because of the fact that this will
help the company in analysing the needs and preferences of the consumers. Focusing
on the psychology of the consumer will help the consumer in getting the knowledge of
what the consumer is demanding or expecting form the company.
Targeting- this is defined as the specific target which will be made by the
company in that particular segment. This is majorly because of the fact that focusing on

the whole segment will be more problematic for the company. thus, it is necessary for
the company to focus on a particular target from the whole segment as well. The
targeting can be done in two different ways that is differentiated targeting and
undifferentiated targeting. Thus, for the Dale Farms opts for the undifferentiated
targeting. This is majorly because of the fact that this provides for a large option of the
consumers to target for the product of the company.
For the purpose of targeting the segment of demographic and psychology was
chosen. In the demographic segment the major focus that is target is on the basis of
gender that is male and female. This is majorly because of the fact that females need to
have more protein intake as compared to the males. So, the major focus is on the
females of the country. Another segment which is being used by the company is on
basis of psychology that is now the consumers have become more concerned towards
their health and related issues.
Hence, the yogurt is a good source of health drink which will help the consumers
in satisfying the needs of health drinks. Also, another target of Dales Farm is on the
basis of the lifestyle of the consumers. The lifestyle brings a major change within the
consumer and their demand. Thus, it is important for Dales Farm to provide the product
in respect of the needs of the high-end consumer groups who are having high
expectations from the company (Schlegelmilch, 2016).
Positioning- this is the last step in the STP process wherein the product or the
services are positioned in the market so that the consumers can learn about the product
and services of the company. This includes the perception of the target market relating
to the major benefits and features of the product and services which are being brought

in the market. It can also be defined as the designing of the product and services in
accordance to what the consumers are requiring to satisfy the needs of the consumers
(Mosca, ed., 2016). Under this the company position its product in such a way that the
consumer will like the product and services of the company. for this company places the
product in the market in such a way that the consumer can easily reach to the product
and are at affordable prices to the consumers. This is because of the fact that if the
prices will be affordable and in budget of the company then this will attract more of the
consumers.
Marketing mix
This is defined as the combination of the different elements of marketing which
are being used in promoting the goods and services among the above discussed target
market. It is very necessary for the company to have an appropriate method of catering
to the need of the promotion of the product. It is crucial as it contains the different
actions and tactics which the company can use in order to promote its brand within the
market. this includes four different elements that is product, price, place and promotion.
The detail of the application of these elements is discussed in the following points
connected below-
Product- this is defined as the item or the service in which the company is
dealing and is very necessary for the company to take care of the product. This is
pertaining to the fact that if the product will not be good then the consumer will not like
the company and will not purchase the product of the company. Thus, this may lead to
loss for the company and also a loss in the sales and revenue of the company. For

expanding the business in Brazil. Dales Farm is using the product of ice yogurt which is
a yogurt which is in form of ice and can be stored for a longer period of time.
Price- this is referred to as the money which is charged by the consumer in
exchange of providing the product or service to the consumers. The price is the
essential thing for the company because if the price will be charged very low then the
company will not earn much and if the prices are too high then the consumers will not
buy the goods and services of the company (Fuchs and Köstner, 2016). Thus, it is very
essential for Dale Farms to charge the price accordingly that it is advantageous to both
the company as well as the consumer. For the launch of ice yogurt, the company is
charging the price with help of penetration pricing method. Under this method the
company first charges low price and as the consumer like the product the company
increases the price with a slight difference. The price is increased a little as this will not
much affect the consumers as they are used to the product and now they will be willing
to pay a slight higher price also (Knight and Liesch, 2016).
Place- this is the place or medium through which the product or services is
delivered to the consumer or is made available to the consumers. This is very important
to be taken care because if the delivery of the product is not in proper way then the
consumer will not like the product or the service. Thus, for meeting this requirement
Dale Farm is using both physical store method and the online sales of the product. It
means that the consumer can find the ice yogurt in both the stores and online as well.
Promotion- this is the most crucial part in the marketing mix because it is very
necessary for the company to have effective promotion. This is majorly pertaining to the
fact that if the promotion of the good and services will not be efficient then the company

will not be able to reach to many consumers. Also, another reason for having a good
promotion of the product and services is that the competition is at peak and to face it the
company has to promote the good and services to gain a competitive advantage. For
this Dale Farm is using the latest technique of digital marketing. Under this the company
market the product of ice yogurt with the help of the social media networking websites.
This is very helpful for the company as it is of low cost and covers a large consumer
base at a single time.
Key challenges to global expansion
Expansion is a form of business growth and development strategy which is being
used by the company in order to increase their business to other countries as well. The
expansion is very helpful for Dales Farm as this will increase the operations of the
company to other country as well and will increase the consumer base of the company.
But with these positive impacts there are also some challenges being faced by the
company when opting for expansion in new country (Beck, Chapman and Palmatier,
2015). The challenges which are being faced by Dale Farms are discussed in the
following points connected below-
The major challenge faced by Dale Farm while expanding in Brazil market is that
they have to follow the foreign laws and regulations. This is very important because in
the international market there are many different international laws which are applicable
over the business. Thus, this is the major challenge faced by Dale Farm to gain
knowledge of all the rules applicable over the business.
Another challenge is the risk of changes in the foreign exchange rate (Lieb and
Szymanski, 2017). This is a major challenge because of the fact that all the countries

have different currencies and this may impact the profitability of the business as it is
possible that when the deal is done the rate is some else and at time of execution the
rate is somewhat different.
However, another challenge is the unfamiliar culture as the culture of both the
countries may not be same. There is also a possibility that the product of Dale Fam is
popular in one country but it is not possible that they are also popular in Brazil if it is
launched.
Another challenge for expansion in Brazil is that the corruption is too high in
Brazil and this is a challenging situation for the company. This is majorly pertaining to
the fact that for getting entry in the Brazilian market company may have to bribe the
regulating authorities to open the company in Brazil.
In addition to this another challenge is that the tax rate is high in Brazil and for
this the company has to pay high taxes to the government of Brazil (Koh and Wong,
2015). This is a challenge because of the fact that now company has to pay more tax
and the profit will decrease for the company.
CONCLUSION
From the above discussion it can be concluded that making a marketing strategy
and implementing it in real is very important. This is majorly because of the reason that
if the planned things are implemented in the same manner then the expected results are
being achieved. Thus, the present report also started by outlining the opportunities in
Brazilian market and then making of the objective for launching the product was made.
Further the STP was used to segment the consumer in different group and then
to target some specific consumer and position the product in front of them. Next the

marketing mix including the 4 P that is product, price, place and promotion was done. In
the end the discussion outlined the different challenges faced by company for
expansion like different rules and laws, high taxes and many others.

REFERENCES
Books and Journals
Baena, V., 2019. Global marketing strategy in professional sports. Lessons from FC
Bayern Munich. Soccer & Society. 20(4). pp.660-674.
Beck, J.T., Chapman, K. and Palmatier, R.W., 2015. Understanding relationship
marketing and loyalty program effectiveness in global markets. Journal of
International Marketing. 23(3). pp.1-21.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural
paradoxes. SAGE Publications Limited.
Fuchs, M. and Köstner, M., 2016. Antecedents and consequences of firm’s export
marketing strategy: An empirical study of Austrian SMEs (a contingency
perspective). Management Research Review. 39(3). pp.329-355.
Grigorescu, A. and Zaif, A., 2017. The concept of glocalization and its incorporation in
global brands’ marketing strategies. International Journal of Business and
Management Invention. 6(1). pp.70-74.
Hadjikhani, A., Lee, J.W. and Park, S., 2016. Corporate social responsibility as a
marketing strategy in foreign markets: the case of Korean MNCs in the Chinese
electronics market. International Marketing Review. 33(4). pp.530-554.
Kanagal, N.B., 2017. Strategic Marketing Issues for an Emerging Market Firm to go
Global. International Business Research. 10(6). pp.35-45.
Knight, G.A. and Liesch, P.W., 2016. Internationalization: From incremental to born
global. Journal of World Business. 51(1). pp.93-102.
Koh, A.C. and Wong, J.K., 2015. The Impact of International Marketing Research on
Export Marketing Strategy: An Empirical Investigation. In Proceedings of the
1990 Academy of Marketing Science (AMS) Annual Conference (pp. 172-175).
Springer, Cham.
Lieb, R. and Szymanski, J., 2017. Content-the atomic particle of marketing: the
definitive guide to content marketing strategy. Kogan Page Publishers.
Mosca, F. ed., 2016. Global marketing strategies for the promotion of luxury goods. IGI
Global.
Schlegelmilch, B.B., 2016. Global Marketing Strategy. Management for Professionals.
Schlegelmilch, B.B., 2016. The Future of Global Marketing Strategy. In Global
Marketing Strategy (pp. 221-249). Springer, Cham.
Solberg, C.A., 2017. International Marketing: Strategy development and
implementation. Routledge.