International Market Entry: Peppersmith Expansion Strategies Report

This report examines Peppersmith's international market entry strategy, focusing on the expansion of their XYLITOL-based mints. The report begins with an introduction to market entry strategies and their importance for business growth, particularly in the context of increasing competition in the UK market. Task A details the market selection process, outlining criteria such as economic conditions, competition levels, market needs, and operational costs, and then evaluates potential markets like France, Denmark, Czech Republic, and Finland against these criteria. Task B explores market entry and distribution strategies, discussing the use of distributors to reach dentists and the implementation of both "bricks and clicks" distribution channels, including specialist distributors and online sales. The report concludes with a summary of the findings and recommendations for Peppersmith's international expansion.

Market Entry:Planning
And Selection
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK A...........................................................................................................................................3
Market Selection for expansion of Peppersmith..........................................................................3
Criteria for selecting the countries...............................................................................................5
Country performance against the criteria.....................................................................................5
TASK B...........................................................................................................................................7
Market entry and distribution strategy.........................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Market entry is considered as planned method that helps in business expansion by
providing effective delivery of goods or services to the new target market. It is necessary for
business entities to focus on effective establishment of the activities that can provide sustainable
development. Market entry strategy is well organized way of rendering product and services to a
new potential market and distributing out there (Ahmed, 2013). With an improved focus on
international expansion the business can easily attain better opportunities in the market. It is
beneficial for advancement in market share and attain better success. Company can also have
better brand recognition in the market by accessing market entry strategies (Samiee, 2013). It is
also advantageous for continuous development and meeting goals and objectives. However,
classification of market entry strategy can be as direct foreign investment, licensing, franchising,
joint venture, outsourcing etc.
Current report will focus on various factors that need to be consider during selection of
new market so that Peppersmith can have better expansion in the international market. Company
is looking forward to have business expansion in many nations. Current report will provide
evaluation of different markets so that Peppersmith can have better opportunities in the market. It
will also focus on selection of market key strategies that company can adopt for better
opportunities in the market.
TASK A
Market Selection for expansion of Peppersmith
As per the detailed study every business firm is looking to expand business in different
nations so that their profit and aspects can be improved. In other aspect, it can be contended that
the expansion in international market provides a better opportunities to the organisations and
enhance the potential to attain better profit. With an improved focus on international market
entry the business firm can improve its brand image and lead business to impressive level of
success. It has been identified that the international market entry strategy will facilitate
Peppersmith to improve its market share (Bechara, 2013). Moreover, the business entity can also
enhance its customer base for sustainable development. Foreign market entry is also important
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for enterprise due to increasing rivalry in home country. It has been identified that company also
faces high ratio of competition in the UK market so to provide better rivalry it is necessary for
organisation to expand business in global market (Barclay, 2012). In this respect, company can
expand its business in new market so that market share can also be enhanced.
Organisation is currently mainly focuses on the product name Tingz. It contains
XYLITOL, which is considered as low sugar ingredient. Other than this, it provides number of
benefits such as the continuous use of XYLITOL facilitates in reducing the damage that teeth
faces. It provides prevention from the mouth issues by dissolving the energy of bacteria. It also
reduces the bacteria’s ability to stick to your teeth so plaque is easier to remove (Fleisher, 2008).
It is also considered as personal dental care product that helps in issue of cavities. Person who
have issue of high sugar diet and snacks during the day can also use the XYLITOL mint. This is
because it helps in overcome the health issues like diabetes. It is also dentist approved product
that attracts more customers and provide benefits to organisation (Hoppner, 2013).
Concept of product is unique that also enhances the opportunities for the company in
international market. In respect to this, customers are also more focused towards sugar free gums
and mints so that they can have better health. XYLITOL is also considered as a replacement of
the sugar that provides number of dental health benefits (Woods, 2013). In UK market the
product is performing extremely well because there are number of issues has occurred in regard
to diabetes and dental problems. People are becoming more concern about product because high
amount of sugar affects their diet habits in negative manner (Ahmad and Yusoff, 2015). It
means the management can have its business expansion in global market with an assistance of
the product.
In this regard, it is also necessary for business firm to consider appropriate criteria so that
selection of market can be accomplished in most desired way. One of key criteria can be
selection of nation that cover most of age group of 15 because mints and gums are mostly used
by children's (Paltayian, 2012). In order to have expansion, it is also significant for business
entity to focus on such market where mints and gums are most commonly used. Nations that
have high ratio of issue in regard to diabetes and dental aspects can be appropriate target market
for the company.
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Organisation can have expansion of business in nations like Czech Republic, Denmark,
Finland and France. Selected marketplaces are most appropriate for the company because it
reduces the risk of cultural difference (Proctor, 2014). It will facilitate in having sustainable
efforts so that business can have impressive level of success. Issue of cultural gap can also be
reduced by considering these markets. Regional policies are also beneficial for the organisation
because it provides a support in form of monetary and non monetary aspect (Pettit, 2010). These
nations are also part of EU that also creates a better opportunities for the entity. Lifestyle of these
nations is also familiar with the UK that means the issues are also same. Engaged life of people
also enhances the use of snacks that also enhances the cavity and diabetes issues. It also reflects
that the selected nations are most appropriate for business expansion.
Criteria for selecting the countries
Economic conditions: It is necessary for Peppersmith to consider economic conditions in
appropriate manner so that proper decisions can be taken for sustainable development. Economic
policies of nation must provide a support to expansion activities (Simkin, 2013). Factors like
GDP and GNP must have stability so that company can have better opportunities.
Competition level: It is also significant for business firm to make sure that the level of
competition is low in the market so that goals and objectives can be accomplished effectively.
Low level of competition also allows to target market in more appropriate manner.
Market need: Company must ensure that the market needs is appropriate and matches the
product. It is significant for management to make sure that market is having stability and it will
provide number of benefits to the organisation (Hlavinka, 2007).
Cost of operation: Operational cost must be low in the nation so that activities can be
performed in appropriate manner. It will also cut down the expense level and provide better
opportunity to attain advance profit margin.
Country performance against the criteria
As per the detailed study, there are very less barriers in the selected nations that provides
better opportunity to the organisation. All these nations have stable economic conditions and tax
rates are also low which means the selection is appropriate as per criteria. France will be first
presence of the organisation because most stable economic aspects provides better opportunity
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(Marshment, 2009). It is considered as one of leading economic system in the world. GDP of
France is also stable, in year 2013 it was measured as 2.806 trillion USD (Economic trends of
France, 2016). Tax rates are also low that enhances the suitability aspect. The inflation of
country is also negative with 0.7% and unemployment rising with 10%. It means the human
resource availability is also easy in the nation. On the other side, the Denmark also provides
better opportunities because its GDP is continuously growing in recent years. It also covers huge
ratio of population which enhances the target market size for the company (McDonald, 2012). It
is also well known for the agriculture activities that means the XYLITOL can also be produced
at fewer expenses. Key resource's availability provides better expansion opportunities (Economy
of Czech Republic, 2016). After words, the Czech Republic is also having stable economic
aspects and people life is also engaged in current scenario. People prefer to consume snacks
more that enhances the dental issues so management can consider it as one of critical aspect
(Economy of Denmark, 2016). Interest rates in Denmark are also low that means the business
can easily take loan for sustainable expansion (Ranchhod, 2007). Exchange rates also stable in
the nation that will cut down the expense of company. There are very few companies who
provides mints and gums in the market. At last, Finland is also one of stable nation and literacy
level is also high. It means the access to the skilled human resource is easy and it enhances the
opportunities. It is among the most favourable options available to company as it have mixed
economy.
Country Rank order Reason
France 1 Suitable economic conditions
Denmark 2 High ratio of population
provides better market size
Czech Republic 3 Less competition and
optimistic economic trends.
Finland 4 Competition more however,
cost of operation is low.
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TASK B
Market entry and distribution strategy
It is necessary for management of Peppersmith to have improved focus on market entry
strategies so that gaols and objectives can be accomplished in appropriate manner. It has been
identified that the market entry is considered as strategy that facilitates in business expansion.
With an assistance of this, company can sell its products and services in the new market for
sustainable development. It also provides a better opportunity to meet goals and objectives in
appropriate manner and lead business to impressive level of success (Yannopoulos, 2011). It
further showcase the different methods through which corporation can sell, deliver and dispense
its offering in other country. As per the given case study, the management of Peppersmith is
looking forward for business expansion with an assistance of distributor. Company has made its
decision by analysing and identifying various methods that are beneficial for business expansion.
It facilitates business firm to reach its target customers in more appropriate manner (Ranchhod,
2007). In this respect, the distributor can be arranged to attain better reach to dentist so that
business can have better advancement. It is also beneficial to have improvement in sales and
advance the brand image in the market. In addition to this, there are two distribution channels
that can be adopted by the organisation to advance its opportunities. Classification of channels
can be named as bricks and clicks. Bricks means the company can hire specialist distributors so
that the products can be delivered effectively to the pharmacies and health food stores
(McDonald, 2012). These kinds professionals help in increasing sales such as they can have
direct meetings with health care professionals. Awareness in regard to the product also need to
be created so that goals and objectives can be accomplished in desired manner. It will also allow
business to attain better profit and lead business to impressive level of success.
On the other side, online sales is also one of beneficial technique that can be adopted by
the organisation for sustainable development. In this, business firm needs to distribute its
products with an assistance of various websites. It also creates better brand image in the market
and reduces the cost of operation (Marshment, 2009). Customers can purchase products directly
from the websites that may creates convenience factor and provide better opportunities. It will
also facilitate brand recognition as marketing through online medium is also convenient. As per
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above statements, it can be suggested that the company can focus on use of online medium so
that goals and objectives can be accomplished in desired form (Hlavinka, 2007). Selected
channel is most appropriate because it cut down the cost of operation. Moreover, the customers
can also be targeted in easy way for better opportunities.
CONCLUSION
As per above study, it can be concluded that the market entry strategies plays vital role in
development of organisation. With an assistance of this, companies can easily expand its
business in international market. It is also beneficial for advancement in sales and brand image.
It has been identified that the Peppersmith needs to focus on effective selection of market so that
goals and objectives can be accomplished in desired form. Moreover, France, Czech Republic,
Denmark and Finland can be most appropriate market for the organisation.
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REFERENCES
Books and Journals
Ahmad, N.E.Q. and Yusoff, N.M., 2015. The Effects of Xylitol on Body Weight Loss
Management and Lipid Profile on Diet-Induced Obesity Mice. Journal of Biosciences and
Medicines. 3(10). pp.54.
Ahmed, K. P., 2013. Internal marketing and the mediating role of organisational competencies.
European Journal of Marketing. 37(9). pp.1221 – 1241.
Barclay, I., 2012. New Product Development: Theory into Practice. Leadership & Organization
Development Journal. 11(6). pp.24 – 30.
Bechara, A. 2013. Risky business: emotion, decision-making, and addiction. Journal of
Gambling Studies. 19(1). 23-51.
Fleisher, S., C. F., 2008. Business And Competitive Analysis: Effective Application Of New And
Classic Methods. Pearson Education India.
Hlavinka, K., 2007. Choosing the right tools for your relationship banking strategy. Journal of
Consumer Marketing. 24(2). pp.110-117.
Hoppner, J., 2013. Global marketing managers: Improving global marketing strategy through
soft skill development. International Marketing Review. 30(1). pp.21 – 41.
Marshment, J., 2009. Political Marketing: Principles and Applications. Routledge.
McDonald, M., 2012. Market Segmentation: How to Do It and How to Profit from It. John
Wiley & Sons.
Paltayian, N. G., 2012. An integrated framework to improve quality and competitive positioning
within the financial services context. International Journal of Bank Marketing. 30(7).
pp.527 – 547.
Pettit, S., 2010. Principles of Marketing. Prentice Hall.
Proctor, T., 2014. Strategic Marketing: An Introduction. Routledge.
Ranchhod, A. 2007. Marketing Strategies: A Contemporary Approach, 2/e. 2nd ed., Pearson
Education India.
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Samiee, S., 2013. International market-entry mode decisions: Cultural distance's role in
classifying partnerships versus sole ownership. Journal of Business Research. 66(5).
pp.659-661.
Simkin, L., 2013. Market Segmentation Success: Making It Happen!. Routledge.
Woods, A., 2013. Managing for growth: decision making, planning, and making changes.
Journal of Small Business and Enterprise Development. 10(2). pp.144 – 151.
Yannopoulos, P. D., 2011. Impact of marketing strategy formulation. International Journal of
Business and Social Science. 2 (18). pp. 23-30.
Online
Economic trends of France. 2016. [Online]. Available through:
<http://www.tradingeconomics.com/france/age-dependency-ratio-young-percent-of-
working-age-population-wb-data.html>. Accessed on [20 May, 2016].
Economy of Czech Republic. 2016. [Online]. Available through:
<http://www.oecd.org/eco/outlook/czech-republic-economic-forecast-summary.htm].
Economy of Denmark. 2016. [Online]. Available through:
<http://www.forbes.com/forbes/welcome/denmark>. Accessed on [20 May, 2016].
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