Tim Tam Biscuits: Entering Sri Lanka Market - Marketing Strategies

This report provides a comprehensive analysis of Tim Tam biscuits' potential market entry into Sri Lanka. It begins with an introduction outlining the competitive landscape and the brand's objectives. The report then details the market selection and screening process, justifying the choice of Sri Lanka as a target market based on high biscuit consumption and favorable market conditions. It establishes a mission statement and SMART objectives for the brand's expansion. The core of the report focuses on marketing strategies, evaluating various modes of entry such as franchising, licensing, and joint ventures, with franchising being the recommended approach. It also explores alternative target markets using geographic, demographic, and psychographic segmentation, identifying primary and secondary target segments. The report concludes with a summary of recommendations, emphasizing the importance of a well-defined marketing strategy to achieve success in the new market. The report is a result of the assignment brief which focuses on the customer-driven marketing strategy and the process of creating value for target customers. The report also showcases an understanding of the concepts involved and an ability to apply them in an international business context.

GLOBAL MARKETING

CONTENTS
1. INTRODUCTION.......................................................................................................................1
2. OVERVIEW................................................................................................................................1
3. MARKET SELECTION AND SCREENING.............................................................................1
3.1 Market Screening...................................................................................................................1
3.2 Reason for choosing Sri Lanka as the new market................................................................2
3.3 Mission Statement & Objectives...........................................................................................3
4. MARKETING STRATEGIES....................................................................................................3
4.1 Modes of entry into new market............................................................................................3
4.2 Alternative target markets......................................................................................................6
4.3 targeting and Positioning.......................................................................................................7
4.4 Alternative generic strategies..............................................................................................10
5. RECOMMENDATION.............................................................................................................10
6. CONCLUSION..........................................................................................................................11
REFERENCES..............................................................................................................................12

1. INTRODUCTION
In the present condition of tough competition in the market each and every organisation
seeks a way to achieve competitive advantage by either introducing new product or expanding
their business overseas. Expansion of an organisation in global market is not so easy it requires a
lot of research and strategies to successfully enter into a new target market (Lessard, 2018). The
present report is based on Tim Tam, an Australian brand of biscuits. This study will examine
how this brand will select, target and position itself in Sri Lanka. The report will include modes
of foreign market entry, objectives to enter into new market and strategy that will be used by
TimTam biscuits for achieving success in the new market.
2. OVERVIEW
TimTam is one of the best chocolate biscuits brand in Australia, they manufacture biscuits
coated and filled in thin layer of chocolate especially for children as well as other customer
segments. Arnott' organization made TimTam biscuits, in order to run business effectively and
increase profitability, they wants to expand its business in Sri Lanka. These Biscuits is created by
Lan Norris, director of food technology in Arnott. In has been identified by the brand that for
achieving high profit and increased market share TimTam biscuits need to enter into different
new markets to globally. The company plans to enter into Sri Lanka analysing the market using
various strategies and tactics.
3. MARKET SELECTION AND SCREENING
3.1 Market Screening
Five stages of market selection procedure-
Global market entry evaluation process is based on five stages, this phases help to define which
international market offer the best advantages and opportunities for company services or goods
to succeed.
Step one- International markets decision
The most essential and primary step of business expansion is to take better decision; first
decision is whether company wants to go for international marketing. The questions are: is
organization is able to successfully conduct in global marketing? (Li & Belal, 2018). Do they
want to go for global business? All the answers are based on company, overall abilities, current
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position in market and available resources. Before taking decision they can conduct market
research which helps to gather more information about new marketplace and helpful when they
take decision. They can collect information about the demand of products is higher or not in
market.
Step two- Market selection decision
Once they take decision where company wants to go for international marketing, it is
easy for them to sell their products. Selecting appropriate market is the second phase of this
procedure, which is important for overall TimTam brand. This type of decision is based on
different types of factors, such as capacity of production, current product mix etc. before
deciding which market is beneficial to enter, they need to conduct global marketing research that
supports company to identify local competition within new market place (Fenton et.al, 2019)
Step three- Market entry decision
Once company chose market and take decision of business expansion, next important
phase is market entry decision which is very difficult and challenging situation. In this stage
TimTam needs to create market entry strategy or plan and select the best and appropriate market
entry option.
Step four- Marketing mix decision
Marketing mix is the set of decisions related to marketing area such as price decision,
promotion decision, and product as well as place decision. In this stage, company takes decision
and chose which promotional strategy is best for them. While formulating the best marketing
mix for commercial purpose, organization carefully studies their new client’s behaviour and
target market group (Howells & Lowe2018). Success of global business expansion is depending
on effective marketing mix plans.
Step five- Implement and control organization decision-
The last and final stage of international marketing process is implementation of decision
taken by Company. They are accountable to manage all activities and operations of foreign
market. Structure and design of company is based on various factors including number of
consumer, entry options and type of goods realties of host nation.
3.2 Reason for choosing Sri Lanka as the new market
TimTam brand select Sri Lanka as international market to expand their business because in
Australia the growth opportunity is limited. Sri Lanka is one of the largest biscuit consuming
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countries in Asia. The per capita biscuit consumption is almost 4kg. According to research it is
identified that even tough Sri Lanka has 58 biscuit manufacturers, there is space of another 10%
to enter within the biscuit market. The main reason for choosing Sri Lanka as the new market
was high consumption or high demand of biscuits. Also the country is a popular tourist
destination so the company can target both local as well as foreign customers. The modes of
entering in Sri Lanka are also easier due to not so strict rules of export and import by the
government. Therefore, TimTam brand selected this country with high demand of biscuits to
increase its market share and profit of the businesses.
3.3 Mission Statement & Objectives
Mission – “To become the top biscuit seller globally”
Smart objectives
1. Specific – TimTam will increase its revenue while cutting down the expenses by selecting
the most effective mode of entry in new market (Miranda et.al, 2019). The company will
try to increase its revenue by reducing expenses by 10%.
2. Measureable – The brand will increase sales 5% over the next 5 months opening 10 new
franchisees globally.
3. Attainable – TimTam brand will improve its customer relationships and promote the
business through networking, referrals and modes of marketing. This will assists in
searching for new leads.
4. Relevant – Entering into a new market will increase the sales and market share which will
give room to the growth of revenue.
5. Time bounds – TimTam will have increased the sales by the end of the coming the five
months.
4. MARKETING STRATEGIES
4.1 Modes of entry into new market
TimTam brand wants to enter into different market, in order to increase profit margin which
is beneficial for overall business. Therefore, there are different kinds of international market
entry modes that they can use -
Franchising- it is a system or process in which independent business like TimTam owner pay
fees to franchiser, a parent organization in return for right to sell their goods in new market
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effectively, to become determined with their appropriate trademark and often to use system and
framework of its business (Watson et.al, 2018). Franchising is longer term agreement based
procedure, as compare to other modes of entry into global market. According to this, process
franchisor provide the wider package of resources and rights that typically consist with
managerial systems, initial trainings, equipment, manual of operations and all necessary support
for company to run their business in similar way which is completed and used by franchisor.
International franchising mode, is helpful for firm if they can used it. It has low political risk,
low cost procedure, permits Simulations expansion into several regions of world (Armstrong
et.al, 2018). Via franchising, organization can work with well selected business partner that helps
to bring many opportunities for them in further success and growth of brand.
Licensing- it is another mode of entry into international market, which TimTam brand can BE
used. Licensing agreement permit foreign companies to manufacture their products and offer
services for fixed term in particular market. Licensor, in this market entry mode makes limited
resources available to licensee in new nation. They also makes limited rights which may include
trademarks, technology, patents, managerial skills and other things that make it possible for
company to produce and sell its goods which is similar to another licensor who already been
selling in home nation since for so long. If TimTam biscuits select this mode, they can produce
products within new market place without required to open new operation and provide it to
customers effectively (Long & Sitkin, 2018). According to this mode, transference of knowledge
between licensee and parental firm is strongly available, decision of taking global license
agreement is totally depend on TimTam brand and decision of making this agreement is rely on
host government reflect on ability of licensor and for intellectual property. Through exporting
procedure, company cannot be able to reach at new market efficiently and gain competitive
advantages effectively. Licensing is the best way that can chose by firm for entering into
Singapore.
Joint venture- it is the third, mode of entry into global market, can uses by TimTam chocolate
biscuits brand of Australia in order to enter into new nation that is Singapore for commercial
purpose. Market entry, joint products development, reward and risk sharing are the five
objectives in this mode. Joint venture in simple words, is the most essential business agreement
used when organization wish to enter into International market (Connelly et.al, 2018). In this
process two or more companies agree to merge their resources for purpose of return investment.
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Most JV is incorporated, when two or more entrepreneurs come together to form the temporary
partnership for specific purpose, this type of partnership is called joint venture, where both
parties work together and are co ventures.
Preferred strategy – TimTam biscuits should choose Franchising in order to enter into Sri Lanka
as does not include high cost. Franchising can help the brand to speed its growth for attaining the
business objective. This strategy is also effective and beneficial for organisation because it
includes limited risks and liability (Mani, Wathne & Antia, 2019). The capital requirement is less
which is a major advantage of franchising.
Table 1: Alternative market Entry Strategies
Market Entry
Strategy
Examples Advantage Disadvantage Justification
Franchising McDonald’s
KFC, Domino’s
 Easy
expansion
capital
 Minimum
Growth risk
Less control over
managers
Challenges
related to
innovation
TimTam
company
should use
strategy as it
requires
focusing on
expansion.
Licensing
Company using
the design of a
popular
character, e.g.
Mickey Mouse,
on their
products.
 Low
financial
risks,
 Avoid
Tariffs
Limited
opportunities in
the market
Potential
conflicts with
licensee
Company can
face
consequences
due to conflicts
and can not
explore better
opportunities .
Joint venture
Google and
NASA
developing
Google Earth.
 Easier to
terminate
 No cultural
clashes
Less control on
policies
Profit sharing
TimTam should
not use this
strategy as its
already a well
known brand.
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4.2 Alternative target markets
Market segmentation is defined as a procedure of dividing a market for instance Sri Lanka
into different group of consumers who have similar needs, characters or behaviour for choosing
or buying a product? (Camilleri, 2018). Various organisations have their own capabilities to
serve their target markets effectively. TimTam biscuits can target on different segments in the
new market as discussed below –
1. Geographic segmentation - Urban and semi urban areas , Tier 1 cities and bunch of tier2
2. Demographic segmentation - Age - 6-18 , 18 -24, 24-39, Education - literate as well as
illiterate, Income level - middle to upper income (Saad et.al, 2018).
3. Psychographic - readiness to try new products or services, outgoing, comfortable lifestyle,
people who don't mind spending a little extra on snacks (Mohanty, 2018)
TimTam biscuits can target the following market segments –
1. Primary target segment
2. Secondary target market
1. Primary buyers - The primary segment refers to the group of customers for whom the
product is actually made (Hisrich & Ramadani, 2018).The maximum of the revenue is
generated by this segment. Customers in this segment share common behaviours and
characteristics. The TimTam brand can target children, teenagers and college going
students. These can be the primary buyers of TimTam in Sri Lanka.
2. Secondary buyers - This segment includes future primary buyers, these customers are
one who buy at a high rate within a small segment and also influence primary buyers
(Yayla et.al, 2018). In the case of TimTam biscuits this market segment is Adults, Parents
and Office going people.
TimTam can use the following positioning strategies while entering into the Sri Lanka –
1. Using product characteristics - Offering unique products to customers (Elliott & Galeotti,
2019).
2. Pricing as a positioning strategy – offering low prices to attract customers.
3. Positioning strategy based on product process – Creating product with unique process.
In order to gain customer attraction and increase the market value in Sri Lanka, TimTam
should use product characteristics as the positioning strategy for entering into new market.
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TimTam already uses this strategy by offering different flavoured biscuits that assist in attracting
customers from every age group (Harper et.al, 2019).
4.3 targeting and Positioning
Marketing objectives: the objectives of TimTam biscuits will be gain consumer base and attain
competitive advantage within 6 months.
1. Parameter of selection: The market will be selected on consumers buying pattern and
preferences.
Screening: The market will be screened on the basis of differentiated product in
comparison to competitors (Comerton-Forde, Malinova & Park, 2018).
2. Short listing market: The market will be shortlisted on the basis of market research and
consumers willingness to accept change in product and brand.
3. Evaluation and selection: The market will be selected on the basis of sample distributed
and acceptance by consumers.
There are three strategies to target market in a new market as discussed below –
1. Undifferentiated marketing or Mass marketing –It targets a market providing whole
market with one offer.
2. Differentiated marketing or Segmented marketing – It focus on deciding to target many
different segment (Lim et.al, 2018).
3. Concentrated marketing or Nice marketing - It focus or concentrated market.
Option Target market Positioning strategy Marketing mix
Undifferentiated Rural graphical area Pricing strategy as
per the rural area by
offering low to high
price range of
biscuits.
Product – Product of
medium quality
which can attract
people in rural area.
Price – The pricing
will be low to high
range from which
people can select the
product to buy.
People – People will
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be the rural
population.
Place – The rural
geographical area
will be the place to
position the TimTam
biscuits.
Differentiated Particular age group For particular age
group Product as
positioning strategy
can be used by
offering products
with characteristics
which can attract the
age group targeted.
Product – The
product for this target
market will be
different from those
offered by
competitors. For
example – flavoured
biscuits.
Price – Pricing will
be medium range.
People – The age
group targeted will be
the people.
Place – TimTam will
position itself in
urban as well semi
urban areas to target
using differentiated
strategy.
Concentrated Only one particular
area or income level
People as positioning
strategy can be used
to target one
particular are, income
level or group of
Product – Biscuits
will be the product.
Price – Price will be
high.
People – People will
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people who are not
target the
competitors.
be specific group of
people such as kids
only below age of 6
years.
Place – Particular
area urban or rural.
For example – a city
in Sri Lanka.
Preferred strategy – TimTam should use differentiated target market strategy by focusing on
product, the company should provide its different flavoured biscuits to target customers from 6
to 39 age people. Product as positioning strategy should be used in order to target the customers
from the selected age group. Pricing strategy can attract people from any segment but can lead
to decreased profit margin, on the other hand people factor also be a barrier in achievement of
company’s objectives of increasing sales by 5%. At last process of company cannot be changed
as its already following a process which is profitable for the company and a reason for
expansion.
Possible positioning for each target market
Figure 1: Positioning strategies for each target market
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(Source: Elliott & Galeotti, 2019)
4.4 Alternative generic strategies
The porter generic model assists in deriving strategy to enter in new market. It is focused on
3 diverse areas which are as follows:
1. Cost Leadership: the strategy is useful in attaining competitive advantage and sales.
In accordance with this strategy, TimTam Biscuit can increase profits by reducing cost.
This aid in competitive pricing and gaining attention of buyers of new market. As per this
it can be said that the strategy can assist in stabilising operations in Sri Lanka and gaining
customer base.
2. Differentiation strategy: In this focus of firm is on making products different from
competitors. In this company can focus market research and new product development.
3. Focused differentiation: In this company focuses on two criteria that are low cost and
innovation in product. Tin Tan biscuit will focus on launching biscuits at competitive
pricing and innovation in product range. Like the biscuits will be offered in mix flavours
and in one pack (Caldieraro et.al, 2018).
In order to gain competitive advantage in the new market TimTam should use Differentiation
strategy by offering.
5. RECOMMENDATION
TimTam Biscuit has chosen franchising as market entry mode because it is safest mode of
expanding as it requires minimum capital investment. This reduces the risk of loss in case the
product lacks consumer acceptance. Also, the entry of company via franchising will assist
TimTam business in managing speedy growth with already motivated and effective managing
workforce. This process is highly beneficial for entering into new market because with this Tin
Tan Biscuit will be able to increase brand equity which play crucial role in gaining consumer
acceptance and loyalty. TimTam target different age of customers such as Children, Adults,
Office going people etc with respect to demographic segmentation. On the other hand, it can be
said that target strategy of TimTam biscuit that is Differentiation will be highly advantageous
because it aids in targeting a narrow market on the basis of segmentation. This strategy of
targeting consumers of new market will help in gaining loyalty. Further, it is highly efficient for
attaining success as it allows company to manage earnings on higher margin. The strategy of
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targeting helps the company in overcoming competition and assist in increasing consumer
awareness for particular product of company.
6. CONCLUSION
The above study concluded that organisations seek to enter in a new market for enhancing
its profit and market share. TimTam can successfully enter Sri Lanka by using franchising as a
entry mode and implementing differentiation strategy to target different age of customers such as
Children, Adults, Office going people etc with respect to demographic segmentation. The brand
will focus on semi urban areas. Furthermore, the report concluded that TimTam biscuits can
position itself using product using product characteristics as positioning strategy which will be
done through offering biscuits with different flavours attracting the target market segments.
These strategies can assist the brand to increase its profitability and market value effectively.
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