Yankee Candle's International Marketing Strategy for EU Expansion

This report examines the application of international marketing strategies for Yankee Candle, specifically focusing on its expansion into the European Union (EU) market. It begins with an introduction to the challenges businesses face in international markets, such as maintaining product quality and adapting to external factors. The report then delves into the marketing mix (product, price, place, and promotion) and how Yankee Candle can utilize it to enter the EU market. Furthermore, it explores market entry strategies like market penetration, market development, product development, and diversification, with a focus on the market development strategy employed by Yankee Candle. The report also analyzes factors affecting standardization, including changing consumer demands, trade policies, and environmental considerations. It then applies Porter's Five Forces model to assess the competitive landscape in the EU, examining competitor rivalry, the threat of new entrants, the threat of substitutes, supplier power, and buyer power. The report also considers the economic, cultural, and legal factors influencing Yankee Candle's market entry and success in the EU, providing a comprehensive analysis of the company's international marketing efforts.

APPLICATION OF
INTERNATIONAL
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY:.................................................................................................................................1
TASK 1............................................................................................................................................1
REFERENCES................................................................................................................................7

INTRODUCTION
There are a many problems faced by business in international market. These can be
related to maintaining quality of product or standards. It may occur due to change in internal or
external factors. It directly affects overall business image and goodwill. This also restricts
business to expand at global level. For overcoming this company needs to develop effective
marketing strategies. This will help them to operate in different countries. This report will show
how Yankee candle is able to expand in EU.
MAIN BODY:
TASK 1
Marketing mix- it is a marketing tool that is commonly used by companies in order to
expand their business. It contains elements that shows how business can enter in new markets by
analysing market environment. Generally, there are four P’s in this mix (Samiee, Chabowski &
Hult, 2015). They are product, price, place and promotion. So Yankee candle can use this
marketing mix to expand its business operations in European Union.
Product- It refers to product or service that the company provides to people for satisfying
their needs. People are always attracted towards new products. They want to satisfy their needs
by using new products that are available at low costs. Other than this, company should
continuously make changes in products in order to retain customers (Papadopoulos & Heslop,
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2014). Besides this, new variety in products helps in maintaining market share and customer
base. It allows business to compete in the market and remain survive for long term. Yankee
candle products are related to lights or candles that are used in restaurants or hotels.
Place – It refers to location or area in which company will provide product for. The area
is also known as target market or customers (Jean, Deng, Kim & Yuan, 2016). It is very
important to identify area so that it becomes easy to focus on that. Also, by gaining maximum
market share company can focus on other markets or area. Yankee candle wants to expand its
business in EU. So it is easy for them to fulfil needs of people.
Price –The price of product is the main element or P in marketing mix. It describes the
price at which product will be available usually, price of product depends upon its total cost.
Price should be determined in such a way that it is affordable to every one. Moreover, companies
profit is entirely dependent upon its pricing policy. More flexible pricing will be more sales
business can generate. Besides this, price should be set so that people find that product worthy to
purchase it. It will help them to become loyal customer. Yankee candle products are affordable
to every one.
Promotion- This is the second most important P in marketing mix. It states the marketing
strategy of company. Product must be promoted or marketed in such a way that it can attract a
large number of people (Demangeot, Broderick & Craig, 2015). An effective marketing
strategy will help company to create a huge customer base. Moreover, more attractive
advertisement campaign will be, more are chances of having maximum sales. The promotion of
product creates a base for company to get success and survive in long term. Business make huge
efforts in promoting its products. This is done by direct selling, giving discounts or offers, etc.
these strategies are developed according to demographics of people. Yankee candle promotes its
product via social media and internet.
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Market entry strategy – It is a marketing tool that is used by company to enter in the
market. It shows path to company by helping in making strategy to expand in different area
(Eteokleous, Leonidou, & Katsikeas, (2016). It contains four segments that describes how
business can grow and develop in the market. They are as follows :-
Market penetration – It refers to focusing on existing product in the existing market. In
this business focus on improving its product quality so as to increase its market share and retain
customers.
Market development- In this business focus on developing new market to expand its
business. This is done when business is having vast number of opportunities available to them
and they are already having strong market share (Souchon, & Oliveira, 2016). It helps in
attracting new people and increasing sales.
Product development – In this business emphasis on developing new products. This is
either due to change in taste or preference of people or to retain its customers. By modifying
product features or specification business attracts customers and retain them.
Diversification- It is followed when company is having enough capability to enter in
new market with new product. A high amount of risk is involved in this as its failure will lead to
affect overall business profits and sales. It is done by bigger companies who are having its
operation in different countries (Skarmeas, Zeriti, & Baltas, (2016).
Yankee candle have applied strategy of market development. They are expanding
business in EU. So they needs to analyse various factors that can affect them. Also, expansion in
one country will automatically lead to expansion in other country. This will help Yankee candle
to grow and develop in Europe.
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Standardisation refers to process in which company implement process and develop
technical standards that are based on different parties. It may include firms, internet, etc. it helps
in improving efficiency or maximising profits (Papadopoulos & Heslop, (2014). The factors
that can affect Yankee candle are describes below :-
Reasons – It can be related to change in people demands and need. Also, it may be due to
change in policies related to trade in business.
Conditions – EU is having different conditions as compared to US. So it is difficult for
Yankee candle to maintain its degree of standardisation. Also rules and regulation differs.
Besides this, it is having different market condition. EU is far behind from US in terms of
technology. So this affects them in doing this (Demangeot, Broderick & Craig, 2015).
Environmental factors – There are lot of environmental factors that can also affect
Yankee candle standards. It may be due to protecting environment. Also, government may have
focused on providing safety to people who go in there. They might have emphasised on using
lights as a substitute.
APPLICATION FOR INTERNATIONAL MARKETING FOR YANKEE CANDLE US
VS EU MARKET:
In case of Yankee candle company, there are numbers of marketing theories are presented
here by which its professional could identify the relevant issues in order to getting entered into
EU new emerging market towards candling and dinnerware products and services effectively.
With the help of Porter’s five forces model, they could examine proper assessment of analysis in
the market sufficiently.
Competitors rivalry: In case of Yankee candle company, there are numbers of issues are
being arisen in this new market related to its competitors in the market in relevant form. The firm
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need to analyse that, how many competitors are being existing in the EU country’s market
effectively (Aaker, Kumar, Leone and Day, 2013). It has been seen that, varied of candle stand
making and dinnerware companies are running in the new market and there are large numbers of
competitors are presented in EU. In order to compete them in new market sufficiently, its
professionals need to formulate an effective competitive strategy in order to compete its various
competitors in the market effectively.
Threats of new entrance: Various companies are operating in this segment and Yankee
candle company always have threats of entrance of new companies in this sector in EU market
efficiently. In case of enter into EU new emerging market, there are numbers of issues are being
observed in terms of entering in this market effectively (Al-Jabri and Sohail, 2012). They must
need to build customer loyalty in new market which could assist them to compete its competitors
in the market efficiently.
Threats of substitute: Varied of new entry entrance threats are always there, apart from
it, new companies towards this sector can introduce new product and services at cheaper rate,
which can make negative influence on Yankee candle company’s products effectively. The
organisational customer could easily switch from one part to another part in the business in
relevant form. The company must have some product which has level of differences in the
market efficiently (Tiago and Veríssimo, 2014).
Supplier power: Supplier of Yankee candle company’s product and services have
efficient bargaining power by which they can decrease the dal rate in the market effectively. If
there are fewer suppliers in the market, then they have more power on the organisation properly.
Supplier power can decrease the profitability rate of the company in new emerging market
effectively.
Buyer power: This is also one of the essential element for Yankee candle organisation, if
they have high bargaining power of suppliers in EK new market, then there is possibility to
decrease the rate of profitability of the company in the industry efficiently. There are numbers of
issues are being arisen in the company concerning of buyer bargaining power (Armstrong,
Kotler, Harker and Brennan, 2015). They have power to decrease organisational product and
services in the market in relevant format. The company need to offering attractive rate rather
than its competitors in EU market in order to sustaining in the new market in more sufficient
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manner. Yankee Candle Company must have large difference from its competitors’ products in
the market sufficiently.
Yankee candle company competitors in EU market:
There are multiple numbers of competitors are existing in EU new emerging market
effectively such as following:
 Aromatic fillers
 Patrician
 Candle lite company
 Cathedral Candle Company
 Continental Candle Company EAP innovations etc.
Economic state of EU: EU is the second largest economy in the world effectively and there
are large numbers of organisation and multinational companies are making contribution in great
manner in order to proper development of some areas in more relevant form. The current GDP
growth of the company 2.9% in 2017, its better growth of economic condition of the country also
major attraction point for Yankee candle company in order to entering into its new emerging
market with developed economy condition of the country (Donovan and Henley, 2010).
Economic condition of the company plays major role in respect to entering the company its
existing new market in more effective form. There are numbers of issues are being faced by the
company in entering into EU country economy effectively. Because it is hard to entering into
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developed country’s economy, because they have to face many challenges in the market
appropriately.
Cultural factor: Cultural factor of EU countries also make great impact on the performance
of the market in more relevant form. In case of EU, there are numbers of religions and various
cultural people are living there and they have different types of living standard, in case of
Yankee candle company (Smith and Zook, 2011). Its products are using by all religious peoples,
because of Candle is mostly used for spiritual purpose and most of the Christian communities
utilise candle stand and candle in church properly, so it makes great impact on sales of
company’s product in relevant manner, which could increase the profitability of the company in
new market sufficiently.
Legal factor: legal factor of EU also plays major role in order to entering new business in the
market sufficiently. Varied of legal provisions and norms are provided by EU government in the
country regarding to its corporate sector in the nation effectively. Yankee candle company must
need to follow all instruction as per legislative provision in the country concerning about its legal
factor in the industry in relevant form. Legal factor needed to be considered by Yankee candle
firm in respect to entering into new market in proper way (Shenkar, O., Luo, Y. and Chi, T.,
2014). Its professionals needed to execute each business activities in the country according to
legal norms and also making sure that, it’s all functions are functioning in the industry in
appropriate form.
CONCLUSION
From this investigation, it is concluded that, there are several international marketing mix
and a proper strategy of entering into global market in order to compete them sufficiently.
Yankee candle company require to utilisation of Porter's five forces marketing theories as
suggested above in order to getting more effective response from the international market of EU
properly. Moreover, this assignment also defines about Yankee candle company' competitors,
economic, cultural and legal factor influences on the dynamic industry in the EU market
efficiently.
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REFERENCES
Books and Journals
Aaker, D. A., Kumar, V., Leone, R. P. and Day, G. S., 2013. Marketing research: International
student version. John Wiley & Sons.
Al-Jabri, I. and Sohail, M. S., 2012. Mobile banking adoption: Application of diffusion of
innovation theory.
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction.
Pearson Education.
Donovan, R. and Henley, N., 2010. Principles and practice of social marketing: an international
perspective. Cambridge University Press.
Shenkar, O., Luo, Y. and Chi, T., 2014. International business. Routl
Smith, P. R. and Zook, Z., 2011. Marketing communications: integrating offline and online with
social media. Kogan Page.
Tiago, M. T. P. M. B. and Veríssimo, J. M. C., 2014. Digital marketing and social media: Why
bother?. Business Horizons. 57. 6. pp. 703-708.
Demangeot, C., Broderick, A. J., & Craig, C. S. (2015). Multicultural marketplaces: New
territory for international marketing and consumer research. International Marketing
Review, 32(2), 118-140.
Eteokleous, P. P., Leonidou, L. C., & Katsikeas, C. S. (2016). Corporate social responsibility in
international marketing: review, assessment, and future research. International Marketing
Review, 33(4), 580-624.
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Jean, R. J. B., Deng, Z., Kim, D., & Yuan, X. (2016). Assessing endogeneity issues in
international marketing research. International Marketing Review, 33(3), 483-512.
Papadopoulos, N., & Heslop, L. A. (2014). Product-country images: Impact and role in
international marketing. Routledge.
Samiee, S., Chabowski, B. R., & Hult, G. T. M. (2015). International relationship marketing:
Intellectual foundations and avenues for further research. Journal of International
Marketing, 23(4), 1-21.
Skarmeas, D., Zeriti, A., & Baltas, G. (2016). Relationship value: Drivers and outcomes in
international marketing channels. Journal of international marketing, 24(1), 22-40.
Souchon, A. L., & Oliveira, J. S. (2016). Spontaneity and international marketing
performance. International Marketing Review, 33(5), 671-690.
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