Peatreekers French Market Entry: E-commerce Business Expansion Report

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BUSINESS EXPANSION
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Contents
LIST OF FIGURES.............................................................................................................................3
INTRODUCTION............................................................................................................................. 4
EXPANSION.................................................................................................................................... 5
E-COMMERCE............................................................................................................................ 6
B2C ROUTES............................................................................................................................... 8
CONSUMER PROFILE......................................................................................................................9
TARGET CUSTOMERS FOR PEATREEKERS.................................................................................10
CONCLUSION............................................................................................................................... 11
REFERENCES.................................................................................................................................12
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LIST OF FIGURES
Figure 1: Peatreekers Logo, 2019.................................................................................................. 4
Figure 2: GDP of European Countries............................................................................................6
Figure 3: French E-Commerce Market...........................................................................................7
Figure 4: B2C E-Commerce Turnover and Growth Rate of France.................................................8
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INTRODUCTION
Business expansion refers to the process adopted by an organization to grow its business
through various routes so that they can increase their customer base and profitability. To
match up to the increase in the level of competition in the market, it is essential for a firm to
take strategic decisions so that they can sustain in the market for a longer period of time
(HEROLD, 2019). In the following report, various e-commerce routes and the customer base
have been identified and studied for the company named Peatreekers, a whiskey
manufacturing company. This report would cover the key areas of business expansion how the
organization can adopt different routes to develop its business in France.
Peatreekers is a whiskey manufacturing firm which was established in the year 2017 and is
headquartered in Edinburgh, United Kingdom (Peatreekers, 2019). The organization is known
for producing the finest whiskey in the land. It is considered to provide innovative whiskey with
the use of a secret blend of various components and challenges various existing firms in the
nation.
Figure 1: Peatreekers Logo, 2019
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[Source: Peatreekers, 2019]
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EXPANSION
Business expansion is a process through which Peatreekers can sell their unique manufactured
whiskey in France. Through the process of business expansion, Peatreekers can tap a new
customer market in France and create a wider market for their whiskey. There are various
measures that can be adopted by a firm for their expansion (Jackson et al., 2008). The
organization can introduce new products in its product mix, expand into new markets and
customer territories, utilize different distribution channels, etc.
Peatreekers can expand its business in France and gain various benefits of the country. France
is one of the largest economies in the world and covers a huge economic area. France has also
developed very strong business routes across the nation through which Peatreekers can
strengthen its supply chain and the distribution channel. Through these existing established
routes, Peatreekers can save the costs of development of new distribution channels and utilize
this to increase their profitability (Sealy et al., 2010). Also, France has developed its economy
with the heavy usage of information technology in its systems through which Peatreekers
would be able to access their business through the route of e-commerce. Another major
benefit of expanding the business in France is the easy availability of fund. Being a hub for
numerous large businesses in the world, the country is one of the largest receivers of finances
in the world because of which it provides huge opportunities for the growth of the
organization. Peatreekers would be benefitted through the availability of investment and funds
in France through which they would easily establish their business (La Rocca & Snehota, 2017).
For successful establishment of business through e-commerce routes, it is essential for
Peatreekers to develop an effective and efficient communication system with the use of
internet and information technology. Through this route, the cost of establishment of business
in a new country would be reduced by Peatreekers and would lead in the increase of efficiency.
Also, the workforce available in France is highly skilled and educated through which the
organization would be able to hire skilled employees to operate the e-commerce business so
that it can grow rapidly in the new environment (Weil & Woodall, 2005). Also, Peatreekers can
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gain the cultural and environmental advantage in France as the environment in the country is
mostly cold which would lead to the continuous consumption of the whiskeys produced by
Peatreekers all around the year. France also has a varied food culture through which
Peatreekers can easily establish their brand and due to an innovative product, the market in
France would respond positively to the brand (Hennekam et al., 2018). France has been rapidly
increasing its spending in comparison to other countries in the United Kingdom which can be
benefitted to Peatreekers. Also, a huge tax revenue percentage represents the healthy business
conditions in the country through which Peatreekers can expand their business.
Figure 2: GDP of European Countries
[Source: The Economist, 2014]
E-COMMERCE
Internet and digital technology have brought out a new revolution for expansion of business by
organizations. Through the implication of internet into business, organizations are able to
manage and expand their business easily without incurring higher costs (Colla & Lapoule, 2012).
The use of the internet in the business operations by an organization is known as e-commerce.
Peatreekers holds a huge opportunity by adopting e-commerce routes.
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France is one of the largest e-commerce markets in the world have various big stores are
serving their customers through the mode of e-commerce (Rolland & Freeman, 2010). The
online retail market has expanded widely in the country and has grown by 14.3% by the year
2017. France also conducts various e-commerce events through which the customers are
educated for the use of e-commerce and provides platforms to various organizations for the
expansion of its business (Murphy & Bruce, 2003). Peatreekers can be benefitted by adopting e-
commerce in France as its e-commerce market has been reported to have a value of USD 104
Billion in the year 2018. The robust growth in the fr5ance's e-commerce market would assist
Peatreekers to tap a high percentage of customers.
Figure 3: French E-Commerce Market
[Source: Modor Intelligence, 2018]
The numbers of online shoppers have also rapidly increased in France and the organizations are
relished by adopting the method of e-commerce in their businesses. Due to the adoption of e-
commerce by the global as well as the local brands of France, the e-commerce market has
rapidly increased in France (Modor Intelligence, 2018). Though the level of competition in the
e-commerce market of France is very high due to existing organizations and their large scale of
operations, Peatreekers might gain a competitive advantage in the market through providing an
innovative product having whiskey made with a historic taste and secret ingredients.
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B2C ROUTES
B2C is an abbreviation used for a business model based on “business to consumer” through
which the organizations sell their products directly to the customers through various platforms.
The most commonly used platform for B2C business in online platforms through either the
organization's website or through a mobile application. The selling of products and services
over a website is a route of e-commerce (Todorov & Akbar, 2018). The sale of products and
services through mobile applications is known as m-commerce. Through m-commerce is
considered as a part of e-commerce, both the concepts have been widely exercised by the
customers and are assisting the firms in expanding their customer base.
B2C channel can be utilized by Peatreekers to tap its customer base in France so that it can
easily sell its product through online platforms. Due to the direct contact between the
organization and the customer, the additional costs added in between the various individuals
would be reduced and would increase the rate of profitability of Peatreekers (Louvieris et al.,
2003). Revenue generated by the use of e-commerce in France has been increasing swiftly and
can benefit Peatreekers through easy development and establishment of e-commerce
platforms.
Figure 4: B2C E-Commerce Turnover and Growth Rate of France
[Source: Ecommerce News, 2018]
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B2C routes in France have allowed the population of France to utilize the benefit of internet
penetration and have represented a positive growth rate by rapidly increasing the turnover
generated from the B2C routes (Ecommerce News, 2018). Peatreekers can make use of the
established platforms of cross border business through e-commerce by France so that it can
also serve its products to foreign customers. With the introduction of the concept of B2C e-
commerce in France, the shopping habits of the customers in France have expeditiously
changed. Instead of walking down to the store manually, customers have preferred the option
of online shopping where they can view various products and get it delivered within a specified
period of time (Patier & Alligier, 2004).
Peatreekers can provide its range of whiskeys through an online platform in France through
which the customers would not be required manually go to the store and can explore all the
options as per their convenience. France has reviewed the opening of numerous online retail
websites within a year through which Peatreekers would also be assisted in the development of
an easy channel of connection with the customers.
CONSUMER PROFILE
Customer profiling is a process adopted by the organizations through which they categorize
their customers based on certain factors. The concept of e-commerce has assisted the
organizations in focusing highly upon marketing its products and services one-to-one with the
customers (McLean & Blackie, 2004). Also, organizations have been focusing on maintaining
healthy customer relationships for a longer duration. Thus, through customer profiling,
organizations are able to segregate the customers based upon a specified profile so that they
can easily be studied and any type of shift can be quickly noted.
The Internet has allowed the organizations to easily access customer data and derive the
relevant information out of it. Peatreekers can use various virtual pathways to visualize the
various customer interests and their pattern and behavior of consumption of whiskey in France
(Singh, 2002). With the use of the internet, Peatreekers can derive and study extensive data
and frame the strategies to enter into e-commerce market of France. Through studying the
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databases of France, Peatreekers can understand the needs and perception of people in France
so that they can create a target market and develop strategies accordingly to increase the
consumption and create brand value in the French market (Patier & Alligier, 2004).
The data collected by making customer profiles by Peatreekers, it can be processed in various
ways so that their characteristics can be observed. However, the process for storage of data of
created customer profiles is required to be secured by Peatreekers so that the privacy of this
data is maintained and is not being used for any unethical purpose (Desai et al., 2003). The
market of e-commerce is very huge in France and thus for determining the customer profiles of
the individuals in the French market, Peatreekers has to take all the respective measures to
keep it secured and use the data for the best of its interest.
TARGET CUSTOMERS FOR PEATREEKERS
Peatreekers can target the youth and premium customers for selling the whiskey produced by
the organization. The French market can be considered very promising in the sale of whiskeys
due to large consumption of various whiskeys in the country. Since Peatreekers are providing
whiskeys with a unique taste, they can target the youth as a shift in the preference of youth has
been noted in France from the past few years (Singh, 2002). Also, it can target the premium
customers through its products like Double Standard Whisky which would provide them with
the authentic taste of dark whiskey and can gain a huge customer base in this particular target
market. Being part of Europe, the largest manufacturing hub of whiskey, Peatreekers can easily
set up its market targeting the people of France as the consumption of whiskey is very frequent
and thus the e-commerce business of the same can be successfully established.
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CONCLUSION
Hereby it can be concluded that business expansion is an essential step to be taken for the
growth of an organization. Peatreekers, a whiskey producing organization can expand its
business by adopting the concept of e-commerce, which has been rapidly increasing. Through
this report, the importance and benefits of the establishment of e-commerce business with the
assistance of online platforms have also been evaluated and how Peatreekers can use it for
developing its business in the French market has been evaluated. To expand the business in
France, it has been found that the e-commerce market has already evolved and thus
Peatreekers would be benefitted by providing a unique product in the e-commerce market and
would lead towards the growth of the organization.
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