International Market Entry and Marketing Report: Yankee Candle in EU

This report provides an in-depth analysis of Yankee Candle's international marketing strategy, focusing on its planned expansion into the European Union (EU). It examines the impact of globalization on the business, highlighting the need for market research and the assessment of international business environments. The report explores various market entry strategies, including exporting, franchising, licensing, joint ventures, and partnering, evaluating their challenges and benefits. It also discusses the influence of cultural and social factors on consumer buying behavior, emphasizing the importance of adapting marketing strategies to local preferences. Furthermore, the report delves into the marketing mix (7 Ps) and its application in an international context, concluding with an overview of the challenges and obstacles faced when launching a business on a global level.

International Marketing-
Individual
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Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
1. Impact of globalisation on the business..............................................................................3
2. Critically evaluating the new market entry and the challenges in international markets...5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9
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INTRODUCTION
International marketing is quite useful for the company to promote its products globally.
Present report deals with Yankee Candle company which is an American manufacturer od
scented candles, dinnerware, candleholders and is planning to expand its operations in EU.
Globalisation impact can be seen in today’s scenario and as such, various marketing strategies,
international market entry strategy are listed in this report. Furthermore, social and cultural
conventions with respect to customer buying behaviour is discussed as well.
1. Impact of globalisation on the business
The organisation expands its reach to new markets so that it may be able to garner more
revenue and as such, objectives are met in effectual manner. However, global business
environment has to be taken into account so that no wrong decision is made which might be
dangerous for the company. Thus, it is required to carry out the market research in order to
construct and implement strategies which would help business to flourish in the best possible
way. Yankee Candle, which is an American manufacturer, is planning to expand its reach to EU
(European Union) for garnering revenue and increased its market share up to high extent. In
relation to this company requires to accomplish market trend so that maximum benefits can be
extracted and objectives can be easily met with much ease (Leonidou, Katsikeas, Samiee and
Aykol, 2018).
International business environment is greater aspect which is required to be assessed in
the best possible manner. Yankee Candle, which is planning to expand its operations in the
emerging EU market, is require to assess whether it will be fruitful for it or not. for overcoming
this, market research plays crucial role so that product may be sold in relation to preferences of
customers and as such, marketing of scented candles dinnerware and other products of the
company may be sold with much ease (Katsikeas, 2018).
The company should assess international business environment so that it may be able to
gain competency in the best possible manner. To expand globally, company should assess costs
and as such, it is required to implement strategy for accomplishing goals. Expanding to EU is a
costly affair for Yankee Candle and as such, it is essentially required that company should grow
in the region where demand for the products are high and competition is comparatively less.
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Thus, it will be able to expand in effectual way and achieve presence in global reach quite
effectively.
The major trends in the global business must be accomplished in order to gain market
share. As the home economy weakens, firm tries to sell products internationally so as to remain
profitable in effective manner (Sapouna, Dimitratos, Larimo and Zucchella, 2018). There are
major trends which impact business decision such as innovation, communication, more
competition, clean technology with respect to environment. This implies that innovation is
prevailing in the global market and as such, company is required to be innovative so that it may
be able to grab market share by reinventing products in global market. Furthermore,
communication is another major trend in the international business. This is evident from the fact
that when customers purchase products, they can easily access information from the globe and
buy the same goods at lower prices. Thus, business set lower prices for attaining customers
globally. Moreover, clean technology is another trend in the business as normal operations may
not harm the nature. Thus, it is required that Yankee Candle should take into account this aspect
so that environment friendly technology can be used in effective way.
Cultural and social factors affect consumer buying behaviour. This means that cultural
factors such as ideology and beliefs of EU will impact buying pattern and behaviour of the
customers quite adversely. It implies that when company will look for selling its products, it is
needed that preferences and buying behaviour should be evaluated so that goods can be sold with
much ease. Moreover, it will provide company to make EU market specific products so that
profits can be garnered in the best possible manner. This will help Yankee Candle to attain
customer preferences in effective manner, which are beliefs of people, and as such, company will
overcome this barrier as it may be harmful when not fully assessed by it. Thus, the firm for
achieving success should evaluate social factors.
Social and cultural conventions may also affect strategic marketing policy of the firm
(Kozenhow, 2018). This is required to be taken into account by the business while creating and
formulating marketing policy. Cultural factors such as education, language and beliefs of the
society. Whereas, social factors such as reference group, family and role of the society. The
education and language plays important role while making marketing strategy. For instance, if
Yankee Candle wants to operate in EU, then it has to prepare marketing tactics in the EU
language so that direct impact can be made on customers. Furthermore, education shall also be
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taken into account as organisation cannot fool people and market products. Moreover, reference
group influence to take decisions which affect strategy of business. This all these aspect affecting
marketing strategy.
Marketing mix approaches such as 7 P’s of marketing are important such as product,
price, place, promotion, physical evidence, processes and people. The product implies that
Yankee Candle has to make goods in accordance to demand of people and more goods, which
will provide them maximum satisfaction (Zeneli, Czinkota and Knight, 2018). Price means to
implement new pricing strategy to attract customer usually low prices should be quoted. Place
states that products should be available at exact and proper locations where people may easily
come to purchase. On the other hand, promotion implies that how customers may be attracted by
advertisement in television, newspapers, social media platform and many other marketing tools.
Physical evidence means to provide assistance to customers for reassuring effectiveness of
services. Processes means techniques to make products and delivering services to consumers.
People are employees and they should possess necessary skills so that company may be able to
produce profits by marketing products. Thus, international marketing is crucial for the business
to expand its reach and earn profits by promoting its products in effectual manner.
2. Critically evaluating the new market entry and the challenges in international markets
In accordance with ever changing business environment in last fifty years of period, there
have been drastic economical reforms which have impacts over production, marketing and
selling techniques. Therefore, to improve the business performance, efficiency and profitability,
every entity tends to implement the changes in the operational activities. The professionals of
firm aim at attaining the targets in the most prominent ways and have the accurate outcomes
from their efforts (Watson IV &. et.al., 2018). The main target of every business is to serve the
society at global level. Thus, globalization is the main target of the business as to have
appropriate numbers of investors, large consumer retention as well as bigger operational
activities. In relation with various factors which affect the globalization such as new entry in
market. Therefore, in consideration with various economies and companies it will be understood
as:  Exporting: In accordance with business policies adopted by various nations such as
China, UK, USA etc. there have started making the direct sell of their products in the new
location or country. Therefore, it ascertains that if an organization is capable of having
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the adequate amount of resources such as material, funds and human resources than they
must started operations. Therefore, with the help of agents and distributors of the
organization. They will present the business and represent the owner which will be
helpful to the entity in terms of saving the approximately more time and make proper
utilization of all the resources (Ripollés & Blesa, 2017). For instance various
manufacturing companies such as Ford, BMW etc has developed their plants and started
making the business process. Franchising: This concept has been followed by the North American businesses. Under
this process they used to open another store at different places with the same name and
ownership. They lease the business to a person on franchise of that particular store.
Therefore, the entire amount gathered and collected by such industries will be utilized by
them in the improvements and expenses of that premises (Weerawardena, Mort & Liesch,
2017). It is the main approach in terms of bringing up the business turnover as well as
marketing the business at large level. Fore example, McDonald’s, KFC, Subway etc. are
the food and beverage restaurant chain they have started spreading their organization
throughout the world and have the unique brand value. Therefore, it will be attractive to
the consumers, investors and various individual to take positive advantages from such
organizations. Licensing: This is the process of transferring a right of a person to another person in
relation with operating the business. In relation with operating the business in new
location of developing it n the global extent there is need to spread and plan the
expansion of the business (Zhao & Priporas, 2017). There are various operations which
will be helpful and beneficial in improving operational efficiency. The transfer of rights
and ownership to the local individual who will be helpful in operating the business as
well as having the favourable amount turnover from the market. Joint venture: this is a kind of partnership which presents or develops the third
independent business. Moreover, here two or more organization get together and make
the productive efforts with the influence of each other in the business activities.
Moreover, it can be said that the two of more business get together to serve the society
with their products and make the satisfactory level of earning from the business.
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 Partnering: To meet the appropriate requirements of the funds for the operations as well
as accurate sources of recourses the partnership will play main role. Moreover, to develop
the business on global extend the various organization or individual collaborate the
business activities to gathered and form a new brand which will be known as partnership
brand (Watson IV &. et.al., 2018). It will be helpful to the partners in terms of making the
adequate utilization of resources which were available to them. It helps in meeting the
appropriate number human resources, material requirements as well as capital fund
requirements. Piggybacking: This is the most helpful and beneficial techniques that will be helpful in
raising the capital structure and financial stability of the firm. In consideration of this
technique it can be said that the business will become able to manage the debtors and
creditors of the entity. Moreover, to meet the requirements of the funds here the
professionals asks debtors to make payments to run the further business operations.
Moreover, it is the most helpful and favourable technique that provokes appropriate
circulation of funds in the business. Therefore, the liquidity and short terms efficiency of
the business will be meet.
However, these are the most helpful and beneficial techniques which will enhance
the efficiency and business performance for the long terms operations. Therefore, there
will be adequate increment in the growth and profitability as well as the large number of
investors will be attracted to make the capital investments in the firm (Ripollés & Blesa,
2017). In relation with having the internal level of development the professionals of the
entity need to have appropriate analysis over the requirements in the local area. There
will be observation over consumer’s needs and wants which will be helpful in increasing
the consumer retention.
CONCLUSION
On the basis of above report it can be said that there has been various challenges and
obstacles in terms of launching the business on global level. Moreover, there will be need to
analyze the resources available for the business as well as accessing the needs of the local
people. There will be fruitful development of the business in relation with various strategies and
models to operate the business. Use of such techniques and approaches in raising the business
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efficiency as well as making the appropriate development of entity. Further, to have the
appropriate growth and development there is need to have increment in the managerial
techniques and adaptation of marketing techniques.
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REFERENCES
Books and Journals
Katsikeas, C. S., (2018). Special Issue on the Future of International Marketing: Trends,
Developments, and Directions.
Leonidou, L. C., Katsikeas, C. S., Samiee, S. and Aykol, B., (2018). International Marketing
Research: A State-of-the-Art Review and the Way Forward. In Advances in Global
Marketing (pp. 3-33). Springer, Cham.
Ripollés, M., & Blesa, A. (2017). Entry mode choices in the international new ventures context.
A study from different theoretical perspectives. International Entrepreneurship and
Management Journal. 13(2). 465-485.
Sapouna, P., Dimitratos, P., Larimo, J. and Zucchella, A., (2018). Market Withdrawal,
International Orientation and International Marketing: Effects on SME Performance in
Foreign Markets. In Advances in Global Marketing (pp. 281-303). Springer, Cham.
Watson IV, G. F. &. et.al., (2018). International Market Entry Strategies: Relational, Digital, and
Hybrid Approaches. Journal of International Marketing.
Weerawardena, J., Mort, G. S., & Liesch, P. W. (2017). Capabilities development and
deployment activities in born global B-to-B firms for early entry into international
markets. Industrial Marketing Management.
Zeneli, V., Czinkota, M. R. and Knight, G., (2018). Terrorism, competitiveness, and international
marketing: an empirical investigation. International Journal of Emerging Markets, (just-
accepted), pp.00-00.
Zhao, S., & Priporas, C. V. (2017). Information technology and marketing performance within
international market-entry alliances: A review and an integrated conceptual
framework. International marketing review. 34(1). 5-28.
Online
Kozenhow, 2018 Sociocultural Factors That Affect Marketing [Online] Available Through: <
https://yourbusiness.azcentral.com/sociocultural-factors-affect-marketing-4471.html>
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