Strategic Marketing Report: New Market Entry for Iceland Food Ltd

This report provides a strategic marketing executive summary focusing on Iceland Food Ltd's potential entry into the Netherlands market. It begins with an introduction to the importance of marketing and the need for effective strategies in a competitive environment. The report then conducts a PESTLE analysis to assess the political, economic, social, technological, legal, and environmental factors influencing market entry. It explores various market entry methods, including alliances, mergers, acquisitions, and foreign direct investment (FDIs), recommending alliances for Iceland Food Ltd. The report also examines market segmentation using the STP model, and concludes with an overview of Porter's generic strategies to gain a competitive advantage. This report is valuable for understanding market dynamics and developing effective marketing plans.

Strategic Marketing

Executive Summary
Marketing aspect is very important to any company or any business, because marketing give
opportunity to promote a product or service at the large scale in the market. There are top-level
management within most companies are putting their huge efforts for making their marketing
stratgeies more effective. This report mainly has involved some productive marketing strategies
which can support a company for gaining high profit within the new market.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................................3
PESTLE ANALYSIS.........................................................................................................................................3
MARKET-ENTRY...........................................................................................................................................5
MARKET SEGMENTATION............................................................................................................................7
PORTER’S GENERIC STRATEGY.....................................................................................................................9
CONCLUSION.............................................................................................................................................10
REFERENCES..............................................................................................................................................11

INTRODUCTION
Marketing is one of the major functions for a business or company, because this function
gives opportunity toa business for promoting its products and services in the market at the large
scale. In this dynamic and modern word, there are marketing aspect plays very excellent role for
different companies or businesses. Top-level management within each company or business is
highly required to make its marketing functions more and more effective, because currently only
those organisations are gaining high profit who has very effective marketing functions. Basically,
marketing team within each business is responsible to use same modern and productive strategies
for making is marketing functions more effective. Day by day market competition within each
industry or sector is increasing, that’s why existing management thin companies should develop
some productive marketing strategies for gaining huge competitive advantage. This report
mainly discusses strategy marketing aspect of Iceland food ltd. It is a popular British retailer,
headquartered in Wales, United Kingdom. There are some major marketing strategies also has
been discussed in this report which can support to Iceland food ltd. for entering the new market
with new product.
PESTLE ANALYSIS
It is very important for organization to analyse the internal and external factors of the
country and the market which the organization is expanding them into so that they can have a
better functioning for themselves. This organization has a unique factor for them and this is
going to get in more customers in the organization so that they can have high revenue for
themselves. Netherland is a small country which is why the organization first expands them and
understands and gain experience so that they can effectively expand themselves further globally.
The new product which Iceland Food Limited is coming up with is mild ice cream which is
going to be a great advantage for the company to get in more customers and increase the market
share (Forzoni, Buffagni and Guercini, 2019).
 Political factors
It is due to European Union trades there are a lot of political power change in the country
which has to be considered by the organization so that they can have a better functioning for

themselves. The taxations have been increased if the company wants to expand in United
Kingdom but Expanding in Netherland is a good idea for the company because the factors are in
favour of the organization. There is a disband which is visible in the coming years due to Brexit
which has taken place which is why there is going to be a great advantage for unemployment in
the country to reduce therefore the government of Netherland will also support the organization
to expand themselves. The raw material will not have to be got from outside which is a great
advantage for the company to expand themselves in this country.
 Economic factors
The company is going to have a great advantage in getting in employees in the organization
which are going to be cost friendly for Iceland Food Limited Company. Netherland is also
having some of the highest incomes in the world which is a great factor for the company as well
to get more customers resulting in higher profit margins (Reed, 2018). The economy in the
country is liquid form which is why any company wanting to expand in this country is going to
be very successful and have a strong portfolio for themselves. There were recessions in the
country in 2008 and 2009 on which the country has worked upon and the country has developed
a lot so that they can have a strong market for themselves.
 Social factors
There are a lot of immigrations in the country because the country is open to take in people
because that increases the business in the country and there are more than 10% immigrants in the
country. The customers have to be given what they expect out of the organization and the trends
and culture of the customers has to be followed by the companies which want to expand in this
country. There are a lot of customers which are supporting fast food because they are being
served in all the countries and because the customers do not get time to cook they prefer taking
these products which is creates a great advantage for Iceland Food Ltd (Dogu and Albayrak,
2018).
 Technological factors
Netherland has a strong connection in the world which is why getting in technological
changes is not going to be difficult for Iceland food Ltd and is going to promote the organization
as well in Netherland. There is a need for organizations to use technologies so that they can serve
the best of products and services to the customers so that there is a better functioning. Social

media is also highly used in the country so promoting the product to the customers is also going
to be very effective for the organization.
 Legal factors
The taxation policies in 2017 were not followed by the organization but it is due to
experience the company maintained their portfolio strong which is why the company has a great
advantage to expand themselves. The policies and laws which have been made by the
government for the employees are the customers are being followed effectively. There is a
complete transparency within the organization so that there is a better functioning of the
company which is a great advantage for the company. The laws and legal aspect has changed
over years because of the change in power which is being followed by the company and updated
to the employees as well about their rights. The safety and security of the employees is making
the company has a strong base for themselves because the demands of the customers are being
met on time.
 Environmental factors
Netherland has been marked as a low country which is making the country very prone to
flood risks in the country which is not a good factor for the company to expand themselves in the
country (Mishra, 2018). The climate and the environment of the country have to be well
maintained and the companies in the country also have to follow the rules of environmental
factors effectively so that the risk can be reduced. Iceland Food Ltd is an experienced
organization which is going to help the company have a better functioning for them and the
organization will be able to expand them successfully.
MARKET-ENTRY
There are a lot of methods which are present in the organization through which the
organization can expand themselves in other countries. This is a very essential factor because
this is going to make the company grow and make more revenue so that the company can invest
and increase their market share. The competitors in the market are increasing which is why it is
very essential for the company to expand themselves and have a better functioning for them
which is going to be getting the company a competitive advantage (Chandra, 2019). Iceland
Food Ltd wants to expand them in Netherland which can make the company have a great

advantage for a long run in the market. Following are the options which the organization can use
to enter market.
 Alliances
It is very important for the organizations which are not having experience or not wanting to
take high risks with their products to enter the market using this strategy. Getting in partnership
with the local companies of the country can get in a lot of advantages and disadvantages for the
organization. Advantage is that understanding the customers and their needs is easier for the
companies but trusting the local people can be a risk for the company because they can capture
the market for themselves as well.
 Mergers
The decision making in this factor is lost control on when two companies come together for
entry market. This is not an effective way of functioning because the company is not going to
have a say for the company but everyone will who have taken a partnership in this factor
(Adhikari, 2018). The culture of the organization is going to be disturbed and the productivity
and demands of the company can also reduce which needs to be well maintained.
 Acquisitions
This is going to require a lot of investment because the company will have to buy the
maximum shares or all the shares of another company so that they can expand themselves. This
is going to help the company be able to enter the market by locals which is going to make the
company have a strong workforce and understand of the market which is a great factor for the
organization when they have lack of experience. The results are going to show very quickly in th
market.
 FDIs
Foreign direct investment is going to make the companies which want to expand have al lot
of risks for the growth in the market. There is not going to be better understanding of the
customers and the company will have to invest a lot to promote themselves and then slowly
understand the customers and improve according to them (Usman and Okafor, 2019). The
company is not going to grow as fast as they expect and have to make a market all by themselves
which is going to be time consuming and more investment.

Recommendation
It is because the organization is not having a lot of experience and is expanding in a small
country, expanding by alliance in new market is going to be very effective for the organization.
This is going to get in more experience and a local help to understand the market in which the
organization is expanding into. The local market is already established and having to expand in
this market the company will have to understand the expectations of the customers as well.
Netherland have a high expectation from the companies and prefer local companies as well
which is why the company can expand themselves with this mode in this country which is going
to make the company get a lot of advantage for a long run.
MARKET SEGMENTATION
There are market segmentation and targeting are two major aspects of marketing which
plays very excellent role while a company enter the new market segment. There STP model of
marketing has used below. STP model is very helpful in analysing market segmentation,
targeting and positioning (Christopher, 2016). Basically, these are three main stages of this STP
model. Currently different businesses or companies are taking lots of advantages through STP
model, because this model helps in divide whole market into small market segments. On the
other side, model supports in targeting different customers also in the market. At the end, this
model gives facility of product positing as well. That’s why top-level management of Iceland
food ltd also should take huge advantages from this model. There are three stages of STP model
has been discussed below;
Segmentation
Segmentation is the first stage within the STP model where marketing team if Iceland
company sis responsible to divide its whole market into small market segments. For example;
currently company has planned to enter the Netherlands with its new product called ‘milk ice
cream’. In this situation, marketing team should divide whole food retail market of Netherlands
into small markets segments. By taking this step, company can deeply understand the actual
demand of customers within this country. The marketing team of company need to divide its
whole market on the basis on geographical structure, demographical structure, culture, living

standard, ethnicity, interest level and attitude. This is really too important steps for the company,
because market segmentation stage of STP model give opportunity to a company for
understanding accurate demand of existing market segments. For example; when marketing team
divide its while market of Netherlands on the basis of people’s living standard, then it will be
bale to provide its product to customers on the of basis their buying capacity. Suppose most
people has higher living standards in one market segment of the Netherlands’, in which company
can easily sell its new product within that market segment. On the other side, people have lower
living standard within another market segment of Netherlands, in which Iceland food ltd
(Ahmadi and O'Cass, 2016). will need to put some efforts for selling its milk ice cream product.
That’s why segmentation stage will play very excellent for the Iceland food ltd.
Targeting
Targeting is the second stage within the STP model. In this stage, marketing team of
company should take some productive steps towards targeting its customer on the basis
segmentation results. Targeting stage give opportunity to a company saving its lots of time and
money, because with the support of this stage company can directly offer its new product on
those people who really wants to buy that product. In his stage, marketing team should target its
customers on the basis of their income status, attitude, interest level etc. Mainly lots of people
within the Netherlands really like to consume ice cream products, specially kids, teenagers and
young, so this factor may help to Iceland food ltd for gaining very excellent results from this
market segments. Currently many companies within marketing are using this targeting market
strategy for effectively targeting lots of customers within the market. There are existing food
retailers of Netherlands may give very tough competition to Iceland food ltd. but employing
targeting stage of STP model, this company will achieve very effective results from the new
market.
Positioning
Positioning is the last6 stage within the STP model, in which marketing team of Iceland
food ltd highly need to consider this stage also with segmentation and targeting, because
company can easily promote its new product in new market with the support of this strategy
(Ketter, Mansfeld and Avraham, 2016). Basically, in this stage, marketing team of company is

responsible to make effective relations within people within new market. This step of marketing
team will support to company for making its brand trustable in initials of that market. On the
other side, marketing managers should use some modern and productive marketing strategies
also for gaining very effective results from the Netherlands. These all marketing strategies will
defiantly support to company for highly promoting its milk ice cream product in initials stage of
Netherlands. The marketinbg manager should run informative and fancy advertisements within
new market to attract lots of customers. For example; company can inform people about its good
quality product in different advertisements. In this stage, top-level management of company
should boost its distribution channel also for properly providing its new product within various
market segments of the Netherlands.
PORTER’S GENERIC STRATEGY
Basically, there are four major strategies has involved in the Porter’s generic strategies
which uses by many businesses in the market for gaining huge competitive advantages within
their respective market segments. These stratgtegies mainly provides a speck framework to a
company for systematically dealing within existing competitors. In this situation, Iceland food ltd
also can take huge advantages from these stratgeies. These four porters’ generic stratgeies has
been discussed below;
Cost leadership strategy: Cost leadership strategy helps to a company for leading the market by
cost wise. This strategy can support to Iceland food ltd also for attract lots of customer in the
new market segments (Hair, Harrison and Risher, 2018). According to this strategy, a company
should offer its milk ice-cream product on very low rate while entering the food market of
Netherlands. On the other side, company should maintain excellent quality of product as well,
because most customers always like to products and services from only those companies which
provides products and services on low rates with excellent quality.
Differentiation strategy: Differentiation strategy is also very productive in gaining large
customer base within the new market. According to this strategy, Iceland company should
maintain some exclusiveness in its new milk ice-cream product while entering the Netherlands’
food retail market. With support of this strategy, the company will be able to gain huge

competitive advantages within market. Reason, customers always like to buy some different and
exclusive products.
Cost focus strategy: Cost focus strategy is the next version of cost leadership strategy.
According to this strategy, top-level management of company should use some productive cost
managements techniques, like; competitive price technique, value-based price technique etc.
These techniques can support to company for providing its product on the most favourable price
in the new market (Sahni, Wheeler and Chintagunta, 2018). Top-level management should
highly consider this strategy within its business operations of Netherlands.
Differentiation focus strategy: There are differentiation focus strategy is the next version of
differentiation strategy where company need use some highly productive strategies for maintain
differentiation and exclusiveness within the product. For example; it can hire an effective
research and development team which can support to company for developing an exclusive or
different product.
Critical Analysis
In these stratgeies, top-level management of company should use cost leadership strategy,
because this is one of the finest stratgeies within the porter’s generic strategies. By using cost
leadership strategy, Iceland food ltd. will be able to gain huge competitive advantages within the
market. Of course, other stratgeies are also very productive but they can’t give effective results
in initial stage of new market as compare to cost leadership strategies. The company can use rest
stratgeies when it will be systematically established in Netherlands within its new product (Boso
and et.al., 2019). But in initial stage, the company should focus on only implementing this cost
leadership strategy, because this strategy will support to Iceland food ltd. for providing customer
friendly or favourable price of new product in the new market.
CONCLUSION
It can be concluded that there are various productive marketing strategies available which
can support to Iceland food ltd. for systematically entering the new market called Netherlands.
According to the STP model, there are most people within this new market like buy milk ice-
cream, in which company should take advantages from this factor. On the other side, marketing

team of company needs to be more active in its existing job role for effectively promoting
company’s new product within the new market. Iceland food ltd. is highly required to use cost
leadership strategy, because this strategy will help to company for gaining huge competitive
advantage in new market segment.