Cafe Pod Coffee: International Marketing Strategy and PESTLE Analysis

This report examines the global marketing and sales development strategy for Cafe Pod Coffee, a UK-based company, focusing on its potential entry into the Dominican Republic market. It begins with a PESTLE analysis of the Dominican Republic, evaluating political, economic, social, technological, environmental, and legal factors to identify opportunities and challenges. The report then analyzes the competitive landscape, including key players like Nestle, and applies Porter's Five Forces to assess the industry dynamics. An international marketing strategy outline is developed, considering product modifications, pricing, and promotion. The report also addresses key challenges for SMEs expanding globally and concludes by connecting the PESTLE analysis with the marketing strategy to justify the company's decisions. The report highlights the country's coffee consumption habits, tourism, and foreign investment potential while acknowledging the challenges related to language, corruption, and environmental concerns.

GLOBAL MARKETING AND
SALES DVELEOPMENT

Table of Contents
INTRODUCTION.....................................................................................................................................2
TASK..........................................................................................................................................................2
Analyzing the Pestle analysis of Chile and different opportunity at the time of developing the business 2
Examining the Overview of competitive landscape in Dominican Republic country along with the
porters five forces....................................................................................................................................5
Developing and designing an outline international marketing strategy....................................................6
Assuring that PESTLE and international marketing strategy are connected to justify choices &
decisions................................................................................................................................................10
CONCLUSION........................................................................................................................................10
REFERENCES........................................................................................................................................12

INTRODUCTION
The present report is based on the topic global marketing and sales development. The
chosen form of the report Cafe pod coffee company that is situated in London United Kingdom.
The report will discuss about the opportunity of launching you coffee product in the Dominican
Republic. It will also discuss about the overview of competitive landscape at the time of offering
the product in the developing country. the report will also discuss about the development design
of international market strategy which will also include discussion of the product and
modification which will allow them to enter the market that is related to the pricing decision,
promotion efforts by all this it will also include discussion about the key challenges that are
faced by the company at the time of global expansion for the SMEs in this market. at the end of
the report it will also evaluate about the how pestle and international markets strategy along it’s
totally linked together that is to justify the decision that are taken by the company.
TASK
Analyzing the Pestle analysis of Chile and different opportunity at the time of developing the
business
In the Dominican Republic country they are known as the producer of coffee that have high
level of per capita consumption along with this coffee is also known as some distance that is the
largest part of the different types of hot drinks that have volume sales along with this they are
also a longstanding cafe culture in the country that all revolves around the consumption of
coffee. But at the time of COVID-19 they have to increase the prices of the coffee that is to say it
a significant shape that is related to demand in 2020. In the country coffee praise an important
role for this the UK Careful that is known as café pod coffee is expanding their business in
Dominican country that is to give knew items and products that are made of coffee which will
also result in developing their country. The different opportunity data faced by the cafe at the
time of expanding their business are octane from generally that is related to political, economic,
social, technological, environmental and legal environment (Cvetanovski and et.al., 2018).
Political factor
The political factor of the company focuses on building the regulatory framework where the
company is liable to. The Café will have different opportunity because Dominican Republic is

also known as is stable Democratic Republic in wish Danilova Medina is the president of the
company who was reelected in 2016 and separate all its power into three branches that are
executive, legislative and judicial. In the country there are multiple political parties and the
election held every two years just alter between the president election and the congressional and
multiple elections. The few opportunity and issues that are faced by the company at the time of
expanding their business in the country is they have to face prevalent corruption threat that is to
state of institution because indeed there are corrupted politics who do not allow entry of new
business because they want to grow their business in their country. The press freedom is also
restricted in the company because of criminal defamation law and journalism persecution.
Economic factor
It helps the firm to find out different opportunities at the time of competing in the market
they will face at the time of operating their business. The company’s the nation of 2/3 of the
islands of Hispaniola along which is also the part of Greater Antilles arc hip Lego in the
Caribbean region. The GDP per capita income of the country is dollar 6.7222 in 2016 and it is
known as the 76 worldwide in the index of economic freedom (Akopova, and et.al., 2017). The
company had to face issues at the time of increasing in the international price that is related to
petroleum which result in affecting the delivery and have direct impact on the transportation post
and construction sectors. The company will face high amount of opportunity because the country
is known for their tourism, agriculture, free trade for manufacturing and services industry. Along
with this all the people of the country loves to drink coffee because it is very famous there along
with this all foreign investment in the tourism infrastructure will also resulted in keep increasing
in the country.
Social factor
As the country is known as the Republic so there are different choices and attitudes of the
people towards the food they want to have at the time of going for outing or any other thing. All
the members of the company want new and innovative things which will they love drinking. The
café will have higher opportunity because they have new and innovative drinks that are made up
of coffee which is a very innovative and are not sold in the Dominican Republic country. They
issued the company will face is different language as in UK the people is still pure English but

on the other hand the people of Dominican Republic country you speak Spanish. The gum tree is
also selected into the category that is related to high human developing country and was rank as
99 worldwide in human development index that is related to progression in terms of social
development. The company will also face the opportunity because they do not have to invest a
lot of money by asking what coffee is the coffee is produced in the country.
Technological factor
All the companies and firms of the country believe in adopting new technology that arrives
because they know it is the main drivers of the economic success and also helps in determine the
framework for the companies that is to complete competition from one region to another. the
graphic and get different types of opportunity by using the technology 'cause if they will have
new and innovative technology then they can easily find out by doing research that what are the
needs and desires of the customers they want in their country along with this this will also give
new goals and objectives for the companies to achieve on the faster basis (Steenkamp, 2017).
Along with this they also have good communication infrastructure network because of their
income inequality's between the regions which is not evenly distributed throughout the country
Environmental factor
It gives the opportunity to the café because it helps in identifying what are the internal
external needs all the elements that can affect the company's performance. As they have to face
different impacts that are related to climatic events that are his storms and hurricanes along with
this it is also followed by periods of increase frequency and intensity. The country is very clean
and focus on green environmental cycles along with this it is also ranked as 58 out of 100
countries that are related to environmental performance index. All the company another project
R mainly focused on environmental concerns because that is the most important factor in the
country.
Legal factor
All the laws and regulation of the country are made up too French legal system. The country
adopts different types of French quote that is to adapt Spanish language along with including
modification letter forced by the constitution that is the Spanish court system. The company will
get different types of opportunity if they follow all the rule and regulation set by the country in

manner instead of this if they will not follow this the company will be sued again high penalty in
the country on the other hand they can also take the license of them later they cannot work on the
same business again. The cafe also have to focus on that the Working hours are restricted in the
country and are very rigid as compared to non-salary cost of the employees is moderate in
nature.
Examining the Overview of competitive landscape in Dominican Republic country along with
the porters five forces
The country is known as the well-known producer of the company that has high levels of
per capita consumption. The café have to face higher coffee prices in the world. The competitive
landscape of the café will beat Nestle who was the leader in terms of coffee in 2010 that have
around 29% of their chairs that is because of their a strong presence in coffee and which is
dominated around 69% value shares. It offers coffee at competitive pricing that and instant
coffee and also gives benefits from the strong global brand name of the range (Pogrebova,
Konnikov and Yuldasheva, 2017). the cafe also have different types of products so that they can
grow their business in the country like they have different cold coffee styles that have different
fruit fragrance along with this they have unique shapes that are made up of coffee.
Porter five forces model
 Competitive rivalry
By having more than 5% growth around all the industry in the world are facing great competition
to the product of coffee. As in the coffee Starbucks is the leading coffee industry that have
around 22.38 billion U.S. dollar revenue collection and along there are so many types of
computer who are named as number one in the world. As the competitive landscape the cafe
have to focus that there are high level of competition in the country (Novikov, 2018)
 Bargaining powers of buyers
as the country is known as the best and well known producer of coffee all the producer have to
bargain power of their buyers because hi presence of large number of radical Differentiation this
all bargain is done by the cafe because to build up loyalty in the mind of the customers end
switching the behaviors of them in the coffee industry which is high with the low or no switching
costs. In this field the buy beginning power of the buyers are very hi in the view of strength

 bargaining power of suppliers
The company does not have to face different types of issues that are related to but getting powers
of suppliers because suppliers are low in the country as the companies are stronger (Graham,
Hjorth, and Lehdonvirta, 2017). The sales that happens in the companies their strength of the
company at the time of bargaining with the suppliers because all the suppliers in the country
want to come in the contract that is to generate massive economics of the scale
 threat of new entrants
The new entrants of the coffee in the country are very high because it is known as the well
producer and have to face number of hurdles at the time of market entry. The orders that are
available for the coffee industry are not very complex but on the other hand they easily possible
to eliminate which is the reason for easy entry in the market. The growth in the coffee industry
attract large number of entrants and he says the situation for the newcomers along with this the
threat of new entrants are very high in the coffee industry.
 Threat of substitute
There are high number of substitute of the coffee industries that is because the availability of
multiple substitute. The number of substitute of the coffee is increasing day by day which is the
threat of the off industry. It affects the local hot beverages that also offer different types of
threads of substitutes that are related to coffee industry that is related to acceptance of local hot
beverages (Falahat, Knight and Alon, 2018).
Developing and designing an outline international marketing strategy
While taking decision and entering into new market place each company, whether it is
large or small has developed and appropriately designed their international marketing strategy,
which play crucial role in unexpected success and growth of a venture like CafePod Coffee that
has operated its business as SME in London, with only 15 workers, who attempt to work hard in
order to satisfy their regular and new customers. A successful global marketing strategy enable
marketer to obtain varied benefits in term of generate web traffic, increasing customer base,
generating revenue and sales, even more than rivals that has operated in similar sector such as
Food & beverage from so long, just to make money, by selling or offering same product and
service with good brand image in market.

CafePod and its marketer may develop effective marketing strategy, which they may
implement at global level in term of entering into Dominican Republic as new nation. Here,
marketing mix model use to define each element that marketer may take into their consideration
while developing international marketing strategy, which is quite essential for them in term of
organizational success and popularity in new market.
Product-
It is one of those component that marketer may take into consideration before offering
Coffee to customers in new nation and promoting into global market, via international marketing
strategy. Firm may focus on this factor in term of making preparation for making coffee
according to the taste and preference of new consumers in Dominican Republic. They may take
initiative to make it better and offer in effective and influencing manner, which help to gain the
attention of customers in bulk. It is the main key for business success, and progress that help
CafePod to sustain for long in chose country.
Price-
Here, marketer may take appropriate decision related to their product pricing, after
considering new environment, income level and other factors related to Dominican Republic as
new nation, where company attempt to enter. They may choose competitive pricing strategy,
among existing. The success of venture is depending on this element as well after the above one,
because majority of customers visit specific restaurant or enterprise after considering their
product or service pricing. It makes consider as customer attraction tool, which provide them
satisfaction after buy and also allow to revisit firm again for repurchasing that is really a quite
beneficial for venture success.
Place-
Another element that marketer may consider while developing their international
marketing strategy is distribution or place, through which they may supply product and conduct
more activities related to it. For purpose of selling Coffee, company may choose an outlet, where
skilled people according to taste and needs of customers prepare Coffee, and serve in ethical
manner. Management may take strategic decision to open own center in Dominican Republic,
where customer may reach and place their order, which in return increase profitability of

company that is important to maximize for each firm, while operating in any industry to gain
competitive edge.
Promotion-
Marketer may take initiative to promote their company and product in effective manner,
by using the best marketing channels or platforms for example, Instagram, where millions of
customers has created their account for the purpose of data collection in the context of those
service and product as well as other things in which they are highly interested to purchase. It the
main and for most important part of international marketing strategy, which marketer may
implement into practical manner after entering into new nation, successfully. In term of efforts,
by utilizing chosen platform, marketer may generate awareness about their Coffee as product in
market, which grab the attention of new target segment.
Physical evidence-
It is quite important for any brand to establish and show their business presence in
market, which help to aware people about their offerings and quality products successfully that
help increasing profits margin. Management may show, firm physical evidence by creating logo
or placing name at upper corner of store, which enable customer to know more about their
existence in market and what it may plan to produce or offer. There are varied ways that manger
may choose to show their physical existence in new nation. For example, they may create a
social media account or develop a web site.
Changes to allow entry and market establishment-
In case of business expansion or entrance into new market, certain changes may allow
any firm like CafePod Coffee to enter and establish its market appropriately and run in
unexpected manner. They may make modifications related policies and regulations, which
company may follow in UK to sustain for longer time period in Food and Beverage sector, to
earn profit and grow even better than any other small companies that has operated in same
industry. They follow rules which other brand has been followed in Dominican Republic and
make changes accordingly, which enable management to conduct practice related to market
establishment.

Key challenges to global expansion for CafePod in Dominican Republic-
Global expansion encompasses key stages, procedures, activities and methods. While
conducting this practice into practical manner chosen SME may face varied challenges, which
may put negative impact on its international marketing strategy and other operational activities
(Thoman, Lloyd and Milstead, 2020). Here, key challenges discuss below;
Export fees-
The biggest challenge that emerge, while expanding business into another country is
current one. It may affect negatively in term of increasing demand for pay related to exporting
and importing fee, which is not possible for CofePod to pay as it operates at small level and
unable to give high tax rate, because it impacts its financial performance negatively. Just like
Dominican Republic, other nations also have certain form of tariff, according to that each firm
while entering into new market, each company need to pay. Just because of this factor, global
expansion become challenging and bring challenge in organizational context.
Intense competition-
Global expansion is complicated and challenges for several reasons or factors, in which
high competitive environment or competitive rivalry between existing companies is included. It
brings challenge for CofePod to enter and sustain for longer, in term of increasing pressure on its
manager to develop strategy which allow them to enter into Dominican Republic, successfully.
Fluctuation in economic factor-
Chosen SME might face another challenge due to fluctuation related to economic factor,
which directly impact production, marketing, sales and other operational and functional
activities, in negative manner or positive. For example, pandemic is one of those economic
factors that in recent time has affected whole world. It may put negative impact on CofePod in
term of making changes in their business practices.
Assuring that PESTLE and international marketing strategy are connected to justify choices &
decisions
As discussed about, PESTLE model is used in the context of CafePod Coffee, which
enable management to determine key factors that has impacted their venture in negative and

positive manner. Each factor put direct impact on operational success, practices and activities of
business, as well as strategic management tactics. Just because of this reason, chose concept is
linked with international marketing strategy of company. As it also affects this tactic that has
been discussed above. The interconnection between both terms, allow firm to choice appropriate
approach, technique and way in regard to overcome impact of each factor.
Their connection plays vital role in the context of business growth and success within
new nation, where terms and policies related to corporate sector and enterprises are quite
different from home town, where CafePod operated from longer time period. Pestle is one of
those strategic frameworks that has been used in regard to many companies, whether small or
large, who take initiative to enter into new profitable market across home boundaries (AKMAN,
2020). It contributes to identify and analyze those elements that affect international marketing
and other operational strategies, and also support to aware which method is better to handle the
situation. Just because of this model, management may get all the information about which factor
affect their global marketing strategy in negative manner and which one impact positively. Pestle
provide data about each factor, which help to take better action and make decision according to
situation.
The overall justification, appropriately define linked between international marketing
strategy and Pestle, which provide a lot of benefits to organization in term of increasing sales,
productivity, productivity and operational efficiency, even better than other brands.
CONCLUSION
From above study, it has been concluded that organization, while operating venture at
small level within food & beverage sector has gained competitive advantages by offering quality
product in term of coffee within new market place in new nation. It has gained key opportunity
in country for its item, which in return increased sales, productivity, profits margin and
customers base. Furthermore, it has been identified that firm has overcome the negative impact
of intense competitive within market by taking appropriate decisions and converting it into
practical manner, in which organization workers contributed. Management has taken varied
initiatives to enter into new market in term of conducting market research. Competitive pricing
strategy, enable marketers to gain the attention of new customers and retained existing for longer
time period. Moreover, from above analysis, it has been summarized that by using Instagram

marketer has successfully introduced their Coffee product in new market. They have overcome
each challenge related to business expansion at global level by following terms, conditions, rules
and regulations appropriately.

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