Unit 40 Aspect of International Marketing Assignment

Introduction

Aspect of International Marketing delves with the aspect of international marketing in which the market selection of a sugar free sweet is done that has been approved by the dentists. The name of the sweet is Tingz that contains ‘xylitol’. In this regard, two aspects are being focused upon which are selection of the appropriate market as well as strategy associated with market entry. This requires drawing on wider research into the potential market, its potential competitors and customers.

Task 1

Explain why you have chosen those particular four countries from the list.

The four countries that have been chosen are Germany, Holland, Norway and Denmark for developing a set of screening criteria for identifying the most suitable country for the Tingz test market. The reason for choosing these countries are mentioned as under, Screening Criteria for the Tingz test marketing strategy.

Germany:

1. The market in Germany which is considered to be the largest in EU continues to be a huge attraction in different sectors as because there exist the possible attributes such as increased productivity levels, a very efficient labour force, quality engineering, an infrastructure of high standard and a very appropriate location in the heart of Europe that might be considered as the perfect test market for Tingz.

2. There is decentralization as well as diversity in the German market with difference in interests and tastes from one German state to another. This will be a good opportunity to conduct an efficient market research here for the Tingz brand as because there are diversified target audiences towards which the brand will be focusing on, to understand the tastes and preferences of different individuals. (Lancaster, 2010)

3. Germany is considered to be the largest market for consumers in the European Union with a population of approx. 82 million, therefore, this can be considered as the perfect scenario for the screening criteria of the test market for Tingz.

4. Being the largest market for food and drink in Europe, and also because of the highly tough competition as well as war on prices in the retail sector it is the ideal test market in respect of the screening criteria for Tingz since this will scenario will be fuelling innovation as Peppermint will be continuously requiring innovative ideas since the market players require bringing out fresh concepts for having relevance as well as adding value for differentiating their contributions in the present market. 

5. Consumers in Germany are continuously trying to seek out new taste sensations which Tingz is able to provide by developing the flavour technologies for establishing the steady growth of exclusive flavours that will open up new scopes in respect of the screening criteria for the Tingz test market. (Lancaster, 2010)

Population Growth	81.78 million (2010) 81.8 million (2011) 80.43 million (2012) 80.62 million (2013) 80.21 million (2014) 81.24 million (2015)
GDP Growth rate	4.1% annual change (2010) 3.6% annual change (2011) 0.4% annual change (2012) 0.1% annual change (2013) 1.6% annual change (2014) 1.7% annual change (2015)
Fertility rate	1.39 births per woman (2010) 1.36 births per woman (2011) 1.38 births per woman (2012) 1.38 births per woman (2013) 1.40 births per woman (2014) 2.4 births per woman (2015)

Holland:

1. In 2015, the economy of Holland rose by 2.0% and in 2016, it will be 2.4%. This is because of the demand associated with Dutch exports, the forecasting of the household consumption to be increased by 2.0% in respect of the real disposable income in 2016 and an increase in public spending. All these attributes are considered to be perfect for the screening criteria for the test market of Tingz.

2. In 2014, the food and drink industry in Holland was worth €66.6 billion. Retail accounted for €46.6 billion as well as food service accounted for €20 billion. The per capita spending was €2, 352. All these are considered to be good opportunities for Peppermint in respect of the screening criteria for Tingz test market. (Ramaswamy, 2013)

3. Holland is considered to be the 8th most competitive global economy and advantages for using Holland as the screening criteria for the Tingz test market are that it is a member of EU Single Market, having an identical cultural aspect to the UK as well as perfect test market for different products. 

Population Growth	In 2010, the population growth was 16.62 million. In 2011, the population growth was 16.69 million. In 2012, the population growth was 16.75 million. In 2013, the population growth was 16.8 million. In 2014, the population growth was  16.9 million In 2015, the population growth was  17 million
GDP Growth rate	In 2010, the GDP Growth rate was 1.1% annual change In 2011, the GDP Growth rate was 1.7% annual change. In 2012, the GDP Growth rate was -1.6% annual changes. In 2013, the GDP Growth rate was -0.7% annual change. In 2014, the GDP Growth rate was -0.5% annual change. In 2014, the GDP Growth rate was -0.5% annual change.
Fertility rate	In 2010, the fertility rate was 1.79 births per woman. In 2011, the fertility rate was 1.76 births per woman. In 2012, the fertility rate was 1.72 births per woman. In 2013, the fertility rate was 1.72 births per woman In 2014, the fertility rate was 1.70 births per woman In 2015, the fertility rate was 1.70 births per woman

Norway:

1. Norway is considered to be one of the richest nations in the world depending on the terms of per capita and there is an even distribution of income where every individual is a consumer so it is ideal for the screening criteria for the Tingz test market.

2. In 2010, the bilateral trade in products and services exceeded $15 billion which is another strong reason for the screening criteria in respect of Tingz test market. (Ramaswamy, 2013)

3. Norway is part of the Schengen Agreement that provides the guarantee for free movement of individuals and the internal border control amongst 22 EU member states is absent which is also another strong reason for the screening criteria in respect of the test market for Tingz.

4. Norway does its positioning as a small test market for organisations that search for a place for developing their market. Although, Norway is having a population of around 5 million individuals, this country is considered having one of the highest purchasing capabilities throughout the world. (Lancaster, 2010)

5. Norway has a small population but is considered having the highest life quality which is another strong reason for the screening criteria in respect of the test market for Tingz.

Population Growth	4.889 million ‎(2010) 4.953 million (2011) 5.019 million ‎(2012) 5.084 million ‎(2013) 5.167 million (2014) 5.245 mullion (2015)
GDP Growth rate	0.5% annual change ‎(2010) 1.3% annual change ‎(2011) 2.9% annual change ‎(2012) 0.6% annual change ‎(2013) 1.1% annual change (2014) 1.2% annual change (2015)
Fertility rate	1.95 births per woman (2010) 1.88 births per woman ‎(2011) 1.85 births per woman ‎(2012) 1.85 births per woman ‎(2013) 1.73 births per woman (2014) 1.98 births per woman (2015)

Denmark

1. Denmark is considered having one of the most comprehensive as well as well-developed economy in the world that is an important reason for conducting the screening criteria for the test market in respect of Tingz.

2. Also the Danish people, according to a research study are considered to be some of the worlds’ fastest for adopting new technological aspects as well as new products that might be considered to be a strong reason for conducting the screening criteria in respect of the test market for Tingz. (Ramaswamy, 2013)

3. Also, the strong Danish traditions in respect of partnerships that are public and private will be decision making Denmark an ideal test market for Tingz.

4. According to a study that was conducted, the customers in Denmark are faster than the consumers in other parts of Europe for adapting to new products. An average of 4 years is taken for new products for gaining a market in Denmark that will be giving Denmark an exclusive position for a test market since organisations are faster in seeing in what ways their solutions can function practically. (Clay, 2013)

5. Organisations are also able to receive faster feedbacks as well as have the ability to rectify their flaws before the product is finally launched in bigger markets.

Population Growth	5.548 million ‎(2010) 5.571 million ‎(2011) 5.592 million ‎(2012) 5.614 million ‎(2013) 5. 569 million (2014) 5.657 million (2015)
GDP Growth rate	1.6% annual change ‎(2010) 1.2% annual change ‎(2011) -0.7% annual change ‎(2012) -0.5% annual change ‎(2013) 1.3% annual change (2014) 1.2% annual change (2015)
Fertility rate	1.87 births per woman ‎(2010) 1.75 births per woman ‎(2011) 1.73 births per woman ‎(2012) 1.68 births per woman ‎(2013) 1.69 births per woman (2014) 1.73 births per woman (2015)

Discuss and justify the choice of criteria.

For Germany, the market in Germany which is considered to be the largest in EU continues to be a huge attraction in different sectors as because there exist the possible attributes such as increased productivity levels, a very efficient labour force, quality engineering, an infrastructure of high standard and a very appropriate location in the heart of Europe that might be considered as the perfect test market for Tingz. There is decentralization as well as diversity in the German market with difference in interests and tastes from one German state to another. This will be a good opportunity to conduct an efficient market research here for the Tingz brand as because there are diversified target audiences towards which the brand will be focusing on, to understand the tastes and preferences of different individuals. (Clay, 2013) Being the largest market for food and drink in Europe, and also because of the highly tough competition as well as war on prices in the retail sector it is the ideal test market in respect of the screening criteria for Tingz since this will scenario will be fuelling innovation as Peppermint will be continuously requiring innovative ideas since the market players require bringing out fresh concepts for having relevance as well as adding value for differentiating their contributions in the present market.

For Holland, in 2015, the economy of Holland rose by 2.0% and in 2016, it will be 2.4%. This is because of the demand associated with Dutch exports, the forecasting of the household consumption to be increased by 2.0% in respect of the real disposable income in 2016 and an increase in public spending. All these attributes are considered to be perfect for the screening criteria for the test market of Tingz. In 2014, the food and drink industry in Holland was worth €66.6 billion. Retail accounted for €46.6 billion as well as food service accounted for €20 billion. The per capita spending was €2, 352. (Clay, 2013) All these are considered to be good opportunities for Peppermint in respect of the screening criteria for Tingz test market. Holland is considered to be the 8th most competitive global business economy and advantages for using Holland as the screening criteria for the Tingz test market are that it is a member of EU Single Market, having an identical cultural aspect to the UK as well as perfect test market for different products.

For Norway, it is considered to be one of the richest nations in the world depending on the terms of per capita and there is an even distribution of income where every individual is a consumer so it is ideal for the screening criteria for the Tingz test market. Norway does its positioning as a small test market for organisations that search for a place for developing their market. Although, Norway is having a population of around 5 million individuals, this country is considered having one of the highest purchasing capabilities throughout the world. Norway has a small population but is considered having the highest life quality which is another strong reason for the screening criteria in respect of the test market for Tingz. (Kotler, 2014)

For Denmark, it is considered having one of the most comprehensive as well as well-developed economy in the world that is an important reason for conducting the screening criteria for the test market in respect of Tingz. Also the Danish people, according to a research study are considered to be some of the worlds’ fastest for adopting new technological aspects as well as new products that might be considered to be a strong reason for conducting the screening criteria in respect of the test market for Tingz. According to a study that was conducted, the customers in Denmark are faster than the consumers in other parts of Europe for adapting to new products. (Kotler, 2014) An average of 4 years is taken for new products for gaining a market in Denmark that will be giving Denmark an exclusive position for a test market since organisations are faster in seeing in what ways their solutions can function practically.Critically evaluate how your chosen countries perform against the criteria and suggest a rank order for the four countries. Germany is considered to be of the first rank, followed by Denmark, then the next rank is of Norway and last but not the least it will be Holland.

Rank 1 

In respect of the ranking, Germany is considered to be placed in number one position because the market in Germany which is considered to be the largest in EU continues to be a huge attraction in different sectors as because there exist the possible attributes such as increased productivity levels, a very efficient labour force, quality engineering, an infrastructure of high standard and a very appropriate location in the heart of Europe. Germany is considered to be the largest market for consumers in the European Union with a population of approx. 82 million. (Harrell, 2011) Being the largest market for food and drink in Europe, and also because of the highly tough competition as well as war on prices in the retail sector it is the ideal test market in respect of the screening criteria for Tingz since this will scenario will be fuelling innovation as Peppermint will be continuously requiring innovative ideas since the market players require bringing out fresh concepts for having relevance as well as adding value for differentiating their contributions in the present market.

Rank 2 

In respect of the ranking, Denmark is considered to be placed in number two position because Denmark is considered having one of the most comprehensive as well as well-developed economy in the world that is an important reason for conducting the screening criteria for the test market in respect of Tingz. Also the Danish people, according to a research study are considered to be some of the worlds’ fastest for adopting new technological aspects as well as new products that might be considered to be a strong reason for conducting the screening criteria in respect of the test market for Tingz. (Harrell, 2011) According to a study that was conducted, the customers in Denmark are faster than the consumers in other parts of Europe for adapting to new products. An average of 4 years is taken for new products for gaining a market in Denmark that will be giving Denmark an exclusive position for a test market since organisations are faster in seeing in what ways their solutions can function practically.

Rank 3 -

In respect of ranking, Norway is considered to be placed in number three position because Norway does its positioning as a small test market for organisations that search for a place for developing their market. Although, Norway is having a population of around 5 million individuals, this country is considered having one of the highest purchasing capabilities throughout the world. Norway has a small population but is considered having the highest life quality. (Fernando, 2011)

Rank 4 -

In respect of ranking, Holland is considered to be placed in number four position, because in 2015, the economy of Holland rose by 2.0% and in 2016, it will be 2.4%. This is because of the demand associated with Dutch exports, the forecasting of the household consumption to be increased by 2.0% in respect of the real disposable income in 2016 and an increase in public spending. Also, in 2014, the food and drink industry in Holland was worth €66.6 billion. (Fernando, 2011) Retail accounted for €46.6 billion as well as food service accounted for €20 billion. The per capita spending was €2, 352. Hence, from the above discussion it can be clearly elucidated as to why Germany is considered to be the most suitable for the test market in comparison with the other three countries.

Task 2

Market Entry and Distribution Strategy

The country that has been chosen for market entry and distribution strategy is Germany. In this respect, Peppersmith has primarily chosen the ‘clicks’ strategy in which there will be the availability of Tingz in the online market with the support of a local equivalent of amazon.co.uk. The online retailers are finding the “bricks and clicks” strategy to be a productive method of serving as well as engaging the shoppers. Data that is found online can be used in respect of offline selling as well. For example, when there will be an increase in the sale of Tingz in the online e-commerce website of Amazon, then it can be applied to the offline promotional aspects as well. Information that is qualitative like the frequently asked questions of the shoppers as well as concerns can be used as well for improving the online business of Tingz. (Frydman, 2013) Then there will be the bridging of the gap between bricks and clicks by providing the customers as well as staffs of the offline stores accessibility for information that is available online. This will assist in the enhancement of the experience in respect of shopping as well as driving the sales.

Peppersmith might also be using the technological aspects for sending customised offers in respect of customers depending on their online behavioural aspects. For instance, Peppersmith is keeping track of the products that were liked (via Facebook) by the customers on its website and then alerts are sent whenever customers are in Peppersmith’s offline store that is carrying those products. (for instance, Tingz in this respect). Also, the online marketing does the enabling of remaining open around the clock without having to worry about store opening hours or paying the employees for overtime work. It also provides convenience for the customers to receive the products online since they have the option of browsing the online store at any time as well as do the placement of orders when there is convenience.  Another aspect of choosing the marketing of products online is the less cost in comparison to marketing that is done through an offline store. (Furnham, 2012) The offers can also be personalized to the customers with the help of online marketing by building a profile of the customer’s purchasing pattern as well as preferences. This can be done by keeping a track of the web pages and information related to the products that are visited by the prospects by focusing on the offers that will be reflecting their choices.

Conclusion

This case study is associated with international marketing in which it has been explained as to why some particular countries are chosen for the screening criteria for Tingz test market. Then those criterions are discussed and justified and post that the four countries are placed in a particular rank and considering the reason as to why one country is more appropriate for the test market than the other is done. Lastly, the market entry and distribution strategy is taken into consideration by following the ‘bricks and clicks’ strategic aspect.

References

Clay, M. (2013). Sales Strategies for Business Growth. Thorogood Publishing
Frydman, R (2013). Rethinking Expectations: The Way forward for Macroeconomics. Princeton University Press.
Furnham, A (2012). The Psychology of Behaviour at Work: The Individual in the Organization. Psychology Press
Harrell D., G. (2011). Marketing Management.  Simon and Schuster Pub.
Lancaster., G and Massingham., L. (2010). Essentials of Marketing management. Routledge.
Ramaswamy., N. (2013). Marketing Management. Tata McGraw-Hill Education.