International Marketing Report: Remedy Kombucha in Japan, MKT501

This report provides an executive summary of Remedy Kombucha's international marketing strategy, focusing on its entry into the Japanese market. It details the company's approach, including market entry mode (franchising), target consumer demographics (20-60 age group), and competitive analysis against major players like Coca-Cola Amatil and Asahi. The report includes a PESTLE analysis, SWOT analysis, and discusses segmentation, targeting, positioning, and differentiation strategies. It also outlines the product, pricing, promotion, and distribution strategies. The report emphasizes the importance of adapting to the Japanese market's unique business etiquette and provides insights into the company's market readiness and strategic planning.

Running Head: MKT501 International Marketing
Remedy kombucha
Assessment Item 3

MKT501 International Marketing
Executive Summary
Remedy Kombucha is the health drink company of Australia they provide health drink that is
naturally free from the sugar. The organization is entering the market of Japan with the
franchising market entry mode and also they have targeted the consumers within the age group
of 20 to 60. The organization is having the most effective pricing strategy along with the
promotional strategy and the distribution strategy within the market that help to develop various
working function within the market of Japan. The biggest competitors of the firm in the
international market are the Coca-Cola Amatil and the Asahi. The organization is also having the
most effective and the suitable working function within the market for the development of the
firm to maintain their activity in the international market.
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Table of Contents
Introduction.................................................................................................................................................3
Objectives................................................................................................................................................3
Marketing environment Summary...............................................................................................................3
PESTLE analysis........................................................................................................................................3
Competitor Analysis....................................................................................................................................4
Market readiness..........................................................................................................................................5
SWOT analysis.........................................................................................................................................5
Mode of Entry.............................................................................................................................................6
Segmentation, Targeting, Positioning and Differentiation Strategies..........................................................7
Segmentation...........................................................................................................................................7
Targeting.................................................................................................................................................8
Positioning...............................................................................................................................................9
Differentiation.........................................................................................................................................9
International marketing strategy................................................................................................................10
Product Strategy....................................................................................................................................10
Price Strategy........................................................................................................................................10
Promotion Strategy................................................................................................................................11
Distribution Strategy.............................................................................................................................12
Conclusion.................................................................................................................................................13
References.................................................................................................................................................14
Appendices................................................................................................................................................17
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Introduction
Remedy Kombucha is the health drink company of Australia that provides effective health drink
to the customers (Remedy Kombucha, 2018). This company was established within the year
2012 and they have eventually made the effective position within the market. The market that is
being selected for the international market is Japan that eventually helps the firm to actively
provide the working function within the market. The purpose of the paper is to understand the
marketing strategy that is being utilized by the firm within the market and also it provides the
view of the working function of the firm within the market. The paper will provide a basic view
on the STPD of the firm within the market of Japan.
Objectives
The objectives are as follows:
 To understand the market entry process of the firm within the Japan market
 To develop a suitable and effective marketing strategy for the product
 To understand the business and the marketing concept of the product within the market
 To develop a marketing plan and the market entry mode for the organization in the
international market
Marketing environment Summary
PESTLE analysis
Political
The view that the product Remedy Kombucha might have to face the political pressure within
the market. It is the vital factor for the organization to enter the market where the political
influence is huge within the country.
Economic
It can be seen that the economic condition of Japan is quite strong and for that, it is effective for
the business to maintain their production and their sales within the market. The carbonated tea is
increasing their share market in various countries like Australia, Canada and Finland.
Social
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The product is the beverage item and for that, in the social life, it is a most essential part of the
people especially for the young people (Armstrong et al. 2015). This is one of the best product
for the party and also for teenage gathering and for that the social factor is essential for the
company to enter in Japan market.
Technological
In the term of technology, Japan is one of the most developed countries and it is another
beneficial factor for the firm to improve their production within the market.
Environmental
The environmental factor of the country is quite effected for the business as an earthquake is a
common issue within the country (Chaffey, and Ellis-Chadwick, 2016).
Legal
Despite the natural calamity or the disaster, the country is very much effective for the firm to
operate their business in this area.
The marketing environment of Australia is not very much different from that of Japan as it can
be seen that both the country is having stable political factor along with the effective legal
working condition within the market. Being the beverage company it allows the firm to
implement their product in Japan in the most effective way of the way they have provided in
Australia. One difference that can be visualized within the marketing environment of the field is
that Japan is the country where the business etiquettes are highly essential for the firm. It can be
seen that when a company from the western country entry to an Asia-Pacific country the primary
problem that they face is regarding the social factor (Baker, 2014). The marketing environment
will change drastically in the favor working function of Japan and this would help the firm to
maintain their position within the market. The market of both the country is somewhat similar
and also different and it depends on the firm for the adaptation of the market condition. The
organization is very much active in the field of Japan to provide their working function in the
field.
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Competitor Analysis
The major competitors of the firm in Japan are Red Bull, Oronamin C, VAAM. Each of the
firm operates throughout the different market segment of Japan and provides tough competition
to Remedy Kombucha (Jones, and Morgan, 2014). Red Bull is one of the fastest growing energy
drinks that has captured a large area of the market segment with the help of its product quality
and marketing strategies (Freeman et al. 2015). The R&D department of Red Bull has done
exceptional job in evaluating the growth throughout the concerned market areas (Previte et al.
2015). The Japan’s market share of the energy drink was valued at USD 4691.9 million in the
year 2017 and it was expected to register They also provide the alcoholic beverages top the
consumers and in the present time, they provide a CAGR of 2.9% during the forecast period
(2018-2023) (Mordorintelligence.com, 2018).
Oronamin C is quite famous within the market and their brand position is also high. They have
the potential to attract the customers and provide them the most suitable and quality beer along
with the beverage to drink. The level of competition is huge within the market and for this, the
organization is having very much effective for the firm to maintain their activity. There are other
competitors also within the market that have a huge impact on the beverage industry in Japan.
Each of the competitors like Oronamin C, VAAM of Remedy Kombucha is having effective
market share within the world and they are providing suitable and essential products to the
market. The organization has to make a strong position in the market where they are having
effective and suitable working function within the firm.
Market readiness
SWOT analysis
Strengths
One of the strengths of the firm is that the health drink is provided which does not contain any
kind of sugar preservatives. It is a fermented RTD tea which increasingly popular for its various
heath benefits and this adds up the desired advantage to the firm. Next strength is the Natural
products that are used within the health drink to provide better quality for the market. Moreover,
the Unique packing which is eventually recall by the customers is an added strength for the firm.
the firms also provides organic food and beverage to the market.
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Weaknesses
One of the crucial weakness of the organization is that the brand image is being damaged due to
the alcoholic presence within the product. On the other hand, another issue of the firm to
maintain their product within the firm to provide effective working function that create challenge
for the firm.
Opportunities
The utilization of the opportunities like increase within the reach of the untapped countries as
well as market to boost the Remedy Kombucha is important. One of the other opportunity to the
organization is that the market the less known products of the firm within different nation. There
needs to be proper development and enhancement of the strategies related to acquisition of the
company in the international market. Moreover, product diversity along with the innovation in
the beverage products should be utilized by the firm.
Figure: Absolute value of the carbonated team growing in various countries
Threats
There are few of the crucial threats like huge competition level in the international market from h
various competitors. Secondly, it is difficult to maintain the government rules and regulation of
different country. It is recommended that the firm needs to adapt differentiation strategy in order
to get the desired competitive advantage over the concerned competitors.
From the SWOT analysis it is evaluated that the company is having the effective working
function within the market and they have the suitability to enhance their product within the
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international market. It can be seen that the organization is market ready for entering the
international market and to expand their business.
Mode of Entry
The modes of market entry within the international market are effective for the firm to maintain
their entry process and their business in the nation. The condition of the firm clearly represent
the facts that the most suitable market entry for them is the Franchising. This is a contract based
modes of entry that is being performed by the primary company and the other company in the
market (Larson et al. 2015). In this, the primary organization is having the franchise in the
market. In the franchising modes of market entry, it provides the low financial risk along with
the low cost of the way to access the market potential of the firm. With the help of this process,
the organization can effectively avoid the tariffs along with the restriction on the foreign
investment. It is also having the suitable control over the franchise as compared with the
licensing (Knai et al. 2015). This is suitable and effective for the firm as this helps the
organization to achieve knowledge regarding the local market. It allows the firm to have an
effective working function within the market and it is essential for the business to provide
valuable market value to the firm.
Segmentation, Targeting, Positioning and Differentiation Strategies
Segmentation
The segmentation of done on the basis of geographic, demographic, psychographic and
behavioral approach. According to the geographic approach the organization selected the
different market segments of Japan for their development of business in the international market.
The organization according to the demographic approach where the selection is done by
analyzing the lifestyle along with the income and another factor of the people it can be seen that
they generally approach the people of 20 to 40 years of age of females for their product (Mialon
et al. 2015). Their product is made in the form of segmentation so that it became suitable for
developing the market and the working process. It can be seen that their product is the health
drink and for that, it is based on the psychographic approach where the food habit and the
lifestyle of the people are vital to understanding. Basically, the people between the ages 16 years
to 24 years will be provided in different segment category and people from 24 years to 36 years
will be offer different category and these categories will help in dividing the market segment into
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smaller ones where the products can be sold easily. The behavioral approach provides the view
on the facts that consumers within the market are in search for the superior quality of products
and this could help them to maintain their activity in the field (Studdert et al. 2015). With the
effective segmentation within the market, it can be seen that the organization is having a suitable
working function for the market of Japan.
Figure: Consumption of Energy drinks
(Source: remedykombucha.com)
Targeting
The target market of the company depends on the products and the ingredients that are suitable
for the consumers. It can be seen that the product Remedy Kombucha is the health drink and the
company is providing food and beverages to the market and the target areas as per the
geographical location would be those people living in South-east Australia. In this, the primary
target market of the firm are the people with the age group of 20 to 40 years of females and they
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should be well educated who have the potential for maintaining their health and the activity
within the market (Friis et al. 2014). Moreover, the targeting will be done on the basis of choices
and classifying people on the basis of their gender as male will be offered different drink and
women will be offered different drink. The product is basically for the adults and this makes the
suitable market for the firm in Japan. It can be seen that the organization have also targeted the
businessman along with the party people like the young adults and also the female as their
secondary target market for the product (Shortt, and O'Brien, 2016). They can target the audience
and the consumers those are health conscious in the most suitable way for their product.
Positioning
The positioning of the firm in the market of Japan is quite complex and this is due to the facts
that the organization is facing huge competition within the market. It can be seen that the big
brands are the primary competitors of the firm and this effectively help them to maintain their
activity and provide they valuable position within the market. From the competitor analysis, it
can be seen that the organization in Japan is going to have the most competitive market due to
the presence of big brands within the market (Piercy, 2016). The working function of the firm is
quite effective and for this, it can be seen that the organization is holding almost a good position
within the market with around 10 to 15 percent of the market share. The fact is that the
organization with the development of working process within the firm allow making suitable and
effective delivery of the products within the market (Savell et al. 2016). The position of Remedy
Kombucha is complex and they have to maintain their effective position within the market with
suitability and working function.
Differentiation
The differentiation is the process which describes the working function and the products of one
company from the other company within the market. This is the primary source for the
competitive advantages of the firm in the market and this also help to maintain the effective
position of the firm. The quality along with the sales promotion is the major source of the
differentiation within the market (Grant, 2016). Remedy Kombucha is using organic products as
their ingredients for the health drink and this is highly effective for the firm to capture various
customers within the market. The product differentiation in this phase is that they are providing a
drink that is from the natural sources and does not contain any sugar preservatives
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(Facebook.com, 2018). Moreover, there will be differentiation in the pricing strategy as to
evaluate the selling of the products as per he low, high or medium income of the people (Baker,
2014). It is the essential facts for the firm to maintain their position by targeting those people
who s 201eeks luxury products within the market and this also help them to attract the customers
of the market (Willems et al. 2018). The sales promotion utilized by the organization is also
effective for the firm to maintain their products and the quality of the business for making the
brand awareness within the market.
International marketing strategy
Product Strategy
The product is Remedy Kombucha that is the health drink which is naturally free from the sugar.
This product is effective for the people as this is a health drink and also does not contain sugar
can be intake by most of the people (Boban et al. 2016). The product strategy is to make it in
such a way that it provides numerous health benefits for the customers within the market and this
is effective for the firm to maintain their working function in the market (Facebook.com, 2018).
In this product, the natural, as well as the unpasteurized materials, are being utilized within the
drink and this is the primary reason that the product is very much popular within the market
(Buck, Rinler, 1993). The organization is providing various range of product within the market
like the organic Kombucha that is the sparkling live cultured drink in various flavors like the
ginger, raspberry, apple, and lemon. Moreover, different age group of people will be offered
different energy drinks as this will help in evaluating the overall selling of the products.
It provides a suitable option to the customers to select the best product and the flavor from the
market (Soleimani, and Mirjavadi, 2016). The quantity of the products is provided within the
bottles of 250ml then the 330ml as well as the 700ml. The quality along with the packing is
effective for the firm to maintain their products within the market and this help to create the
brand awareness within the market. The entire market is effective for providing the valuable
products within the market and this is vital for the firm to maintain their products as well as
development policy within the market. The product is effective for Japan as the people of this
country prefer to have health drink and various beverages as their side dish or the party food
items.
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Price Strategy
The product is having the suitable and effective price within the market that allows them to
attract the consumers in the market. Differentiation in the pricing will be adopted and various
types of discounts will also be provided to the customers. The organization has their price
according to the international market and for this, they do not need to change or modify their
price to the vast according to the region (Ricca, Stephanie, 2014). The organization is having the
most effective and the suitable pricing strategy for their product which help to provide their drink
to the vast areas of the nations. According to this pricing strategy the organization is providing
the drink in the most suitable and effective price and also the product is organic which eventually
increase the quality of the product (Anon, 2013). It can be seen that the organization is using the
economy pricing strategy for their products and this help them to grab the attention of all the
customers within the market. It can be seen that this strategy is effective for the firm and also for
the customers in the market where the economic condition is not well (Mathijssen et al. 2017).
It can be seen that the organization is providing 330ml of the Kombucha drink at the price of 5
dollars that is in the market of Japan it is of 547 yen. This is quite effective for the market to get
suitable and best health drink in the field and this is also essential for the firm to maintain their
product quality along with the raw materials that are utilized within the organization (Janssen et
al. 2015). It can be also seen that the organization change the pricing strategy according to their
competitors within the market and also the working function in the firm. The organization have
targeted the young adults of the society and also the people who have the urge for the health
drinks. The organization is also utilizing the competitive pricing strategy within the firm that
eventually helps the organization to maintain their competitors (Bhalla, 2017). It can be seen that
high level of competition is very much impacting the firm to perform their activity within the
field. It is quite effective for the firm to maintain their working function within the market with
the valuable products.
Promotion Strategy
The organization is placing their steps in the international market and for that, they have to
maintain the promotional strategy according to the international level. It can be seen that the
organization have eventually adopted various above the line as well as the below the line
marketing strategy for the creation along with the maintenance of the brand awareness within the
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consumer market. The use of organizing various cultural events and sponsoring them will be a
useful promotional strategy. Another will be to hire some popular celebrity that will help in
getting the trust of the consumers on the product. The organization need to follow the integrated
marketing communication policy with the customers for making the strong bond and connection
to sale the products in the market (Crane et al. 2016). This is the best process for the
development of promotional strategy within the market. In this, the organization can also
effectively use the celebrity for their promotional campaign of the product in Japan that will
allow the customers to get connected with the product. Moreover, the organization have
launched advertisement that is effective to attract the customers and also provides the view on
the health drink that is being provided by the firm (Nair et al. 2015). The promotional strategy
that is being utilized by the organization is the advertisement then the television channels along
with the radio and also the newspaper. It can be seen that they are providing valuable products to
the market with the suitable and effective marketing and promotional strategy which allow the
firm to grab the attention of the customers in the market.
The IMC process helps the organization to play with the mind of the consumers that the famous
celebrity is also supporting the brand and for that, it have some of the quality of it. This is the
most effective promotional strategy that is being followed by the organization within the market
to maintain their activity and the working function in the field. This is the best way for the firm
to deliver the valuable product in the market and to get the suitable working function for the firm
(Yarbrough, 2017). It can be seen that the organization is very much effective for the
maintaining their campaign within the market.
Distribution Strategy
The Remedy Kombucha have widespread as well as well distribution policy which makes the
products easily available within the market. They have the powerful channel in the international
market and this allows the firm to provide the effective products within the market with better
quality and availability. The product will be distributed with the help of online and offline
partners lie through various retail outlets, shopkeepers and malls in order to make it available for
the customers (Morrissey, Brian, 2009). The brand is the Australian brand and they have
captured effective marketplace in Australia. The organization is planning for the distribution of
their products in the market of Japan. The firm is having effective suppliers of the raw materials
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that provide organic materials for the formation of the products within the market and this is the
primary facts that the organization need to maintain in their working function of the productivity
and the development of the organization (Begunca, 2017). It can be seen that the place and the
distribution strategy that is being followed by the organization is quite effective to develop
effective business within the market. It can be seen from the various facts that the organization is
different making the working process within the market and for that, they are having the valuable
market in the place. The level of competition is huge and for that, it became essential for the firm
to maintain their supply chain as well as their distribution strategy in the most effective and
suitable way. The product is effective for the firm to maintain their activity and this helps the
organization to maintain their working function in the market (Ono, and Ono, 2015).
The working function of the firm is very much effective for providing the valuable products in
the market and this is essential to develop their business in the market. It is the most beneficial
and the effective way for the firm to provide valuable market within the global market like Japan
(Hafiz et al. 2016). The distribution level of the firm is quite suitable and this helps them to
maintain their working function in the country like Japan. The place and the distribution channel
allow the product to develop the most effective and the valuable working function within the
market in the better and the suitable way.
Conclusion
The paper eventually concludes the facts that the organization can effectively enter the market of
Japan with the help of franchising market entry mode. It is clear from the various facts that this
mode is effective and it shows the potential development of the working function within the
market. For the organization, the best working function is to capture the market of Japan and
provide quality products to the customers. The paper also concludes the facts that the
organization is developing suitable working function in the market that eventually help them to
maintain the activity in the field and they have developed valuable working function within the
market. Furthermore, it is evaluated from the paper that the organization can effectively maintain
the firm and their function in the most suitable way which basically helps the organization to
develop their b8usiness within the international market.
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Appendices
Figure: Remedy Kombucha
Table 1: Segmentation of the product
Segmentatio
n approach
consumers characteristics / facts Justification
Geographic Japan for their development of
business in the international
market
Japan
Demographi
c
lifestyle along with the income
and other factor of the people
people of 20 to 60 years of age
Maintain the product for the
people
Psychograph food habit and the lifestyle of the Products are organic; research
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ic people is vital to understand states that people who are
concerned about their health are
more likely to buy organic
products
Behavioral superior quality of products Prices more expensive; website
talks about ‘luxury’;
Table 2: Product range and group
Product range
or group
Product Characteristic
or flavour or
features
Size or volume
or weight
Price (AUD)
Remedy
Kombucha Organic
Kombucha
ginger 75 g, 150 g 10.50, 18.75
Kombucha rashberry 300ml 8.50
Remedy
Kombucha Kombucha Light weight
linen
80.00
Table 3: Facts of the firm
Facts Note (relevance)
1. Founded in 2012 Long standing business with
experience; could be
relevant for SWOT
2. Products can be found at different stores Distribution via supermarket
3. Focusses on ethical or healthy or organic Relevant for consumer
profiles and STPD analysis
4. 20 to 60 who have the potential for maintaining For STPD
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MKT501 International Marketing
their health
5. good position within the market Relevant for consumer
profiles and STPD analysis
6. quality along with the sales promotion Relevant for consumer
profiles and STPD analysis
7. health drink which is naturally free from the sugar Marketing strategy
8. economy pricing strategy Marketing strategy
9. promotional strategy that is being utilized by the
organization is the advertisement then the
television channels
Marketing strategy
10. market of Japan Marketing strategy
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