Smithfield Cattle Company: International Marketing Report and Analysis

This report provides an overview of Smithfield Cattle Company's international marketing strategy, focusing on its expansion into the Argentinian market. The report begins with an introduction to international marketing and its significance, followed by a brief history of Smithfield Cattle Company. It then analyzes the Argentinian beef market, highlighting factors that favor foreign investment, including social, political, economic, and technological aspects. The report also discusses the company's strategic reasons for expansion, entry strategies (direct exportation and joint ventures), and the marketing mix, including pricing, promotion, and distribution. Potential challenges such as climatic conditions and financial crises are also addressed. The report concludes by emphasizing the benefits of international marketing and the favorable business environment in Argentina for Smithfield Cattle Company's investment.

International Marketing Management
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Introduction
• Definition: International marketing refers to the process of
creating awareness of a product in the global market.
• Reasons:
 To increase product and services sales
To maintain market share
To maintain competitive advantage among others

Smithfield Cattle Company
• History:
 Smithfield Cattle Company is family owned by Alf Smith and
Bob Levitt.
Begun operating in the 1920s by opening butcher shops along
busy streets such as Blake
Captured the attention of potential customers and started
producing grain an Feedloft for cattle that favored their growth
and development
Currently owns about 18,500 heads of cattle, supplying across
Australia and other parts of the world.

Argentina Beef Business
• Argentina a South American nation
• Was major global exporter of beef in the past decades.
• The prolonged drought in the past two decades affected cattle
farming
• Ranchers shifted to crop farming creating
• Beef consumption remained constant with reduced beef output
creating a gap for supply(Jones 2018, p.276).

Factors Favoring Foreign Investment in
Argentina
• Social and Cultural Factors
Family formed of couples and children
People are warm welcoming
Speak Spanish, , Italian and English making international
communication easy
• Political Factors
Government gaining stability hence creating new look among
investors

Cont.’….
• Economic Factors:
Currently experiencing strong economic status from the
exportation of agricultural produce resulting into increased
purchasing power.
 Technological and Infrastructural Factors:
 Improved technology provides beef storage equipment and
easy transportation .

Cont.’…
• Government Interventions:
Removal of FDI restrictions and signing of the Multinational
Agreements on Investment have facilitate international
trade(de Oliveira et al 2017, p.31).
• Economic Integration such as Mercousur have eliminated
international trade barriers.

Strategic Reasons for Expansions
and Entry Strategy
• Reasons : To increase sales volume, market share and gain
competitive advantage.
• Entry Strategy: Direct exportation and Joint venture
•

Marketing Mix
• Price will be set according to the demand and supply and
increased in the future.
• Promotion will be done through media such as TV
• Beef products will be supplied while fresh
• The business will be placed in busy streets and cities.

Probable Challenges
• Climatic conditions reduces availability of water and pasture
• Past financial crisis left the country with no business credit

Conclusion
• International marketing boost market share and competitive
advantage of business
• Argentina offers good business environment for Smithfield
Cattle Company investment.

References