International Marketing Strategies: Remedy Kombucha Expansion Plan

This report delves into the realm of international marketing, using the Australian beverage company Remedy Kombucha as a case study. It examines the significance of global expansion for businesses and the need to understand diverse market conditions and consumer needs. The report analyzes Remedy Kombucha's potential for expansion into Singapore and the Philippines, considering factors such as market attractiveness, economic conditions, cultural aspects, and consumer behavior. It highlights the importance of market research, competitor analysis, and the adaptation of marketing strategies to suit the target markets. The report also discusses the role of online services, media, and government policies in facilitating international market entry and growth. Ultimately, the report concludes that both Singapore and the Philippines present viable opportunities for Remedy Kombucha's international expansion due to their strong economies, internet accessibility, and consumer preferences for organic and healthy products. The assignment emphasizes the importance of adapting to cultural nuances, understanding economic factors, and leveraging online platforms for successful international marketing.

INTERNATIONAL
MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
ASSIGNMENT 1.............................................................................................................................1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
International marketing has become much more significant in this era. Every organisation
is turning around this to expand its business for profit making. It is done to satisfy the needs of
varied people across globe. The process of pricing, distribution and marketing of goods in more
than one nation is termed as international marketing. For this, the managers should have a
complete knowledge of marketing strategies of international market to attract more number of
customers. In this assignment, the beverage company of Australia “Remedy Kombucha” is taken
into account to explain the global expansion.
ASSIGNMENT 1
In this era, it is mandatory for every organisation to connect with more number of people
across globe to set the brand image. For this, company has to grab the attention of international
consumers by serving them according to their need. One has to analyse the prevailing market
condition and customer needs to explore the business in other nation (Armstrong and et.al.,
2015). All these things have to be considered while planning the things related to it.
Remedy Kombucha is an Australian company which serves the most loved drink
Kombucha to customers. It is a natural drink made by the fermentation process. It contains
probiotics and healthy organic acids. They assist in proper digestion along with its taste. It is an
amazing drink. Today, everyone likes to have the products which are made from organic, raw,
unpasteurised and natural ingredients. This drink is a combination of all these factors and
therefore, it is liked by many people. Also, it is an officially approved drink which anyone can
enjoy.
It is served in the bottles of 330ml -750ml. Every batch of this refrigerated item is made
traditionally with an essence to directly connect with the heart of customers. It is a low sugar
product with delicious taste. This company has set forth a competition in front of the other
beverage providers like Pepsi and Coca-Cola. The managers of company are devoted to make
drink pure and authentic. Wide range of variants are there in this to serve the customers with
different flavours (Slack, 2015).
Kombucha drink is tea based. Natural culture is embedded in its fermentation process.
Healthy living bacteria is produced which helps to detoxify the body. This is the main reason
behind its liking by more number of individuals. No shortcuts are used while its production.
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Complete process steps are complied with although more time consumption is there. Only
certified organic ingredients are used for its production to maintain the quality of drink. This
results in a quality drink with adequate healing properties. Tea provides antioxidants which are
really required by the body.
Kombucha is liked by vast population of Australia. There are around forty to fifty
Kombucha brewers in Australia. Remedy Kombucha is the biggest brewer of country which
produces more than 150,000 bottles in a week. These are sold across 4000 sites in Australia
which includes cafes, supermarket, fast food chain, chemist shop, airport, etc. It has grabbed
attention of about 70-80 million people in market because of the taste and quality provided by
company. For the growth of company, repeated customers are serving as an advantage. It is
actually liked by those people who wants to have low sugar products. It is also a remedial
measure to get rid of the alcohol (Birkinshaw, 2014).
Its 750 ml bottle costs around $7 which is quite expensive. Introduction of smaller
packaging of about 250 ml is a remedial measure of this to attract more number of customers.
One has to associate with more number of customers to gain the competitive advantage. The
company has to indulge in introduction of sharp flavours with special essence to attract more
attention of the people. Proper process must be known to the people who are involved in its
production.
Today, people want to have a drink with more energy, less sugar along with the quality.
This philosophy of people is serving as a driving force for this company. Various flavours are
provided by company such as garlic and lemon kombucha. To attract more customers, recently
the new flavour, Cherry Plum, is launched by company. It is a hundred percent certified organic
drink. In this way, company is attracting more number of customers in the target market. From
the customer's feedback, company can get an idea about their likings. In this way, production
aspects can be made very clear to serve the customers as per their need.
It has many stores in Melbourne, Australia. In order to earn more profit, company has to
expand its market across various other nations. This is one of the management strategies to
globalize business. One has to understand all the aspects of other nations before establishing
business over there (Birkinshaw, 2014). Proper research must be done for this. One has to
enquire about all the competitors over there along with demographic difference in market of
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other nation. Cost and other factors have to be considered before establishing the business over
there.
Cultural aspects of the country also influence buying capacity. This must have to be kept
in mind. To cope up with the aspects related to language, proper recruitment must be there.
Again, infrastructure of company is important to attract the attention of community. Trademark
has to be registered for the same.
Online services are the best suitable options to connect with the more number of people
of the other nation. With the help of websites and other blogs one can advertise their business via
internet (Goleman, 2017). Price per advertisement also serves as a favour to attract more number
of people though investment may incur because of this. In this way the mangers can adopt the
strategies to globalise their business. For international marketing cultural aspects must have to be
considered. Language, taste, regional values, consumer habits, demographic factors have to be
kept in mind. Similarly, economic factors also influence the overall turnover. Per capita income
has to be analysed for the same. Class structure must be properly understood by the persons
involved in this. Demand and supply trend has to be evaluated before planning anything.
Financial banking and planning aspects also must be considered.
Political and legal factors also influence the international marketing. One has to be abide
by the laws and the regulations of the another country for smooth functioning. License and
permit must be acquired before doing so. Tax rate, tariff and the currency risk are another factors
which influence the global expansion of the business.
After considering all the above factors, it is evaluated that Singapore and Philippines are
two possible markets for the company ' Remedy Kombucha' where it can expand its business.
The above factors are in the favour of organisation to expand the business over there. Market
attractiveness and the challenges cover up by the company serve as an advantage to attract the
consumers over their (Bocken and et.al., 2014). Since the economy of both the countries is
strong, the people can easily afford the products which are offered by the company. In this way
we can say that both these markets are suitable for the company to rise in the international
market.
Almost all the people over there are accessible to the internet, with the help of online
websites and the advertisement, the company can easily make the people aware about their
products. Special schemes and discount coupons can be offered while starting up to grab the eyes
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of more customers. In this way the company can gain the competitive advantage to set an image
over the customers of another nation. The managers have to pay attention over all these aspects.
Taste also plays an important role. Since the company wide range of products all the
consumers can take the advantage as per their taste buds. People over there are of positive
mentality to accept the change and this is serving as a driving force for this beverage industry.
Also, the company has taken suitable steps to beat the foreign competition and make the
packaging and the quality much more attractive. In this way the company can serve many people
residing in these countries. Also, the stake holder trend of the company is in favour to set a
positive image of the company profile. People of Singapore and Philippines really do believe in
this (Drucker, 2017).
Demand has also been increased because of the increasing population. This will be
helpful for the company to gain more advantage. People over there are educated enough to
understand the usage and benefits of using organic and healthy products which the company is
providing. This will lead more customers to buy the drinks made from old fashioned traditional
methods. This way, we can say that these markets are beneficial for the company to expand the
business. More demand figures can be predicted if the business is set over there also.
People are becoming much more careful about their diet plans at present. The drink
served by the company has less sugar content. The managers can make the people aware about
the same via advertisement or other policies to attract more number of customers.
The cultural aspects also play an important role. Usually, the teenager’s trend in these
countries shows that they are diverging more towards the energy drinks whether they are in the
class room or in the play ground. It was analysed that 80% of the teenagers really like to have
drinks which helps to boost them up (Remedy kombucha details, 2018). This drink can serve
effectively to meet the needs of the community because of healing capacity provided by it.
Risks factors are associated with many other drinks like Coca-Cola because of their
content. Since, Remedy kombucha is made up of organic ingredients, no such risk is associated
with it (Sia and et.al., 2016). This is the reason behind liking of individuals. People of these Asia
Pacific can avail advantage of this. All these factors are favourable for company to rise in
market of Singapore and Philippines.
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Weather condition over there also plays an important role. People used to drink more
water to avoid dehydration. This drink is a quality and energy substitute of the normal drinking
water. This factor helps the company to rise in these geographical regions.
Transportation is now become very easy aspect for any organisation to serve the goods in
the other nations. Aviation and shipping cost are quite affordable to deliver the products in these
regions. On time delivery plays a vital role for the business growth. Tariffs and taxes are also
affordable because of the good market condition over there. In this way we can say that because
of this reason the company can easily deliver the product without any quality deterioration.
In Singapore and Philippines, there is no chance of warehouse problem since, it is spread
over wide area with less crowd. This serves as an advantage to cover delivery and consumption
gap. Government policies are also in the favour of these business. They have given permission to
service providers of other nation to propagate their business. The service providers have to
follow some rules and regulations to maintain values of another nation (Reim and et.al., 2015).
Media also plays an important role for business expansion. Since these countries have
effective media policy, company can take advantage of the same. In this way, we can say that
these markets are suitable for the growth of company. With the help of suitable strategies, one
can do so (Williams and et.al., 2018). Company has to take help of online services to connect
with more customers and to get their feedback which help to serve them efficiently.
CONCLUSION
From above it can be concluded that one has to understand all the aspects related to
another country, such as, cultural, social, political, environmental, etc. to explore an efficient
business over there. This is one of the way to connect with more number of people and to satisfy
them according to their requirements.
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REFERENCES
Armstrong, G. and et.al., 2015. Marketing: an introduction. Pearson Education.
Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.
Birkinshaw, J., 2014. Do we still need managers?. Business Strategy Review. 25(2). pp.6-6.
Goleman, D., 2017. Leadership That Gets Results (Harvard Business Review Classics). Harvard
Business Press.
Bocken, N.M. and et.al., 2014. A literature and practice review to develop sustainable business
model archetypes. Journal of cleaner production. 65.pp.42-56.
Drucker, P.F., 2017. The Theory of the Business (Harvard Business Review Classics). Harvard
Business Press.
Sia, S.K. and et.al., 2016. How DBS Bank Pursued a Digital Business Strategy. MIS Quarterly
Executive. 15(2).
Reim, W. and et.al., 2015. Product–Service Systems (PSS) business models and tactics–a
systematic literature review. Journal of Cleaner Production. 97. pp.61-75.
Williams, R.I. and et.al., 2018. Family Firm Goals and their Effects on Strategy, Family and
Organization Behavior: A Review and Research Agenda. International Journal of
Management Reviews. 20(S1).
Online
Remedy kombucha details, 2018. [online] Available through:<https://www.google.co.in/search?
q=remedy+kombucha&oq=rmedy+kombuc&aqs=chrome.1.69i57j0l5.8230j0j7&sourcei
d=chrome&ie=UTF-8>
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