International Marketing (Java House's Global Expansion) Assignment Sample

Gain insights into their approach to product, pricing, promotion, and distribution strategies across different cultures and markets.

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Introduction Of The International Marketing Assignment Sample

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Section 1 

Organizational developments are coming fast and thick across all aspects of the company as Java House experiences which can be described as a major transformation (Levine, et. al. 2020). These changes will not only be of advantage to Java House, as evidenced by the exchange logistics-driven proposal currently being pursued by the company in partnership with international logistics partners. Java House also referred as ‘Java’, the company was founded in 1999 and was operated in Nairobi. The company has the aims at introducing gourmet coffee-drinking customs in Kenya. The company’s initial outlet was a coffee shop and after that company evolved into an American diner-style restaurant and casual dining concept. The company is one of the foremost coffee brands in Africa and has developed its outlets in 15 city crossways 3 countries in East Africa i.e. Uganda, Kenya, and Rwanda. Java House has also launched 2 brands i.e. 360 Degrees pizza, a casual dining restaurant from which the specialized yogurt store is introduced by company called planet yogurt which is a tasty, healthy, and fun frozen yogurt store (Tien, et. al. 2019).

Java house is under the sponsorship of Java Foundation which feeds thousands of school children on the regular basis in partnership with the food for education programs. Yet even though this rapid expansion, Java House is only starting to leap beneath the surface of its true perspective, especially in its commissary foodstuff production unit. The board of directors of the company decided to outsource its distribution function and logistics. This concerned launching a scoping, distribution, tender, warehousing, and fleet as the 3 fundamentals the company necessary assistance with (Sinkovics and Sinkovics, 2020). Equally the company is being advanced from many countries like Oman, Dubai, India, South Africa, and China, with businesses looking to franchise the company. The company has developed a widespread, in-depth franchising management program which is gearing up its entire brand to take key steps to enter into new global markets to accomplish its objectives and goals.

The rationale for an organization and the various routes to market

The CEO of Java House, Paul Smith has led an individual vision to help the team development and growth for a self-motivated group of experts who can undertake any challenge faced by the company. The CEO has confidently impacted the lives of many employees and teams who have struggled to find the right direction (Prosser, et. al. 2021). The thoughtful analytic thinking and attitude have not only benefited their employees but also thrown rapid growth of the company expansion in the international market. Java house is famous for its broad range of Kenyan-grown tea and coffee blends. The company has drinks and coffee garnishes with a variety of international cuisines such as salads, burgers, grilled fillet steaks, shakes, and pork chops. The café chains offer a friendly, attractive, and unique ambiance where business professionals can meet, and friends and family dine (Bas?Hoogendam, et. al. 2022). The international marketing strategy of java house is to expand its business in the global market to attract young customers with top-quality services and products. The company aims to provide a relaxing meeting area with friends or colleagues and enjoy a cup of coffee. The company has franchised with new market channels and brands to develop its business operations to diversify into new market segments (Saidakhrolovna, et. al. 2021). Java house was initially a US customer setup that was brought into the Kenyan market and was instilled with African culture, by expanding their business in the international market. Java House has planned the expansion at a global level in different countries to target large customers. By adapting to varied business techniques and different cultures, the company is making its business presence in many cities and counties to attract a large number of customers and increase its revenue. However, with careful enhancement and quickness, the company's international growth has been secured.

The opportunities and challenges that marketing internationally presents to an organization

The corporation while forthcoming with something new, has focused on available resources. With this positive outlook, the board of directors of Java House has entered the African market Kenya which has a comparatively different globe of business. The director was eager to work with a new cultural team and ready to meet new challenges. The people of Africa are rich in culture and are very ethnic, which affects the way people work. The company’s staff is dynamic, skilled, talented, interest, willing to job, and eager to learn new technologies, but at the same time, the employees are from different cultures (Katsikeas, et. al. 2019). It has become a new challenge for the company to motivate and approach them, which this increases their working productivity and capabilities. The team leader should enhance their skills with new technology and organizational culture to achieve their goals and objectives. The company can adopt various strategies to motivate and encourage employees to accomplish common goals. The company believed that employees should be empowered, and a team leader must create a positive environment for employees to be able to do extremely well in their performance. Java House meet many challenges to manage 2400 people with 81 stores, but a bigger challenge that the company faced initially was to create a healthy working culture where the employees can work efficiently and increase productivity. The second challenge that the company faced has an over-rely on the foundation Java brand which is satisfying a number of the customer base. Though it was 20,101 customers a day, innovative brands and market channels had to be developed to expand into new market segments (Rasul, 2019). The third challenge faced by Java House considered the expansion of business at global heights. Java house has to adapt to different cultures and diverse business techniques to remove the hurdle; this also gave the company coverage and confidence to endeavor out into the international market. These challenges are the illustration of inspiring factors in the success of the organization that has made the company one of the leading corporations in the African food and beverage industry.

Evaluation

Choosing the appropriate marketplace and the scope in learning to attain selection process when considering international market can conclude the feasibility of the company’s expansion strategy. The right market will shape Java house’s business planning, international expansion and growth potential (Czinkota, et. al. 2022). Effective international market choice shows business a critical position at the global level. It is based on an estimate of the diverse markets with orientation to definite precise criteria, given the company objective and resources. The international market selection process requires a market target and segmentation strategies for the effective performance of an organization. The following are the stages concerned in the international market selection process:

  • International marketing objective: The very first step the company should do is to conclude the export promotion purpose of the business. The market chosen is to serve a particular international marketing objective which need not be unavoidably for the best suitable to accomplish some other marketing objective.
  • Parameter for assortment: For good selection and estimation of the market. It becomes necessary for the company to put behind the criteria and parameters for estimation (Calof and Viviers, 2020). The different parameter for the assortment of a market is the company's international environment, resources, nature of competition, market situation, government policy, and other factors.
  • Preliminary screening: The parameter used for the preliminary screening may vary from product to product. Though, per capita income, parameters like the infrastructural factors, size of the population, the structure of the economy, and political conditions should be concerned by the company.
  • Short listing of market: Preliminary screening stage enables the manager to abolish market which does not meet deliberation. They are more screens with the assistance of more in order data than what was applied at the beginning selection step.
  • Selection and assessment: The short-list markets are then more assessed with orientation to the cost-benefit examination and viability study.
  • Test Marketing: marketplace is examined on a slighter level by introducing the manufactured goods in a part of the new markets. This provides opinion to the company about the new market. At the same time, it also assists the organization in assessing in general response of the consumer from a selected market, after creation can be taken on a collection level.
  • Marketable Production: the manufactured goods are experienced in the segment market; the organization goes in advance with group creation. Slight modification, if any, are brought into the merchandise mix in this phase.

Recommendation including advantages and disadvantages of market entry strategies

Java house needs to identify its new target market, where the product can be beneficial for the company. The effective strategy depends on the type of company that the companies are in and their marketing background. The company should adopt a strategy based on available resources and the lifecycle phase of the company's product which already has attained. A wide diversity of factors will conclude the company’s choice of strategy (Khatab, et. al. 2019). Different international market strategies would help the company to expand its business in new markets. The first one is market concentration which focuses only on some selected markets. This approach will facilitate the company to combine its existence in these markets, with the intent of securing steady sales growth. This will help the company to gain in-depth information and knowledge of the market and adapt the product. This also benefits cost reduction across management, logistics, and operational management. The company can dedicate more resources to the market endorsement and increase risk control of the international operation. Factor affecting concentration strategy is international demands on a small number of markets with stable performance. The company needs to adapt which suits specific market tastes. The second strategy/approach is market diversification which introduces the company's product to new markets with small shares in markets. This helps the company in rapid sales growth and risk diversification. The company can sell its products at different prices and take benefit of the exchange rate fluctuations. The international demand for the company’s product or service is increasing across many new markets with irregular behavior. This strategy reduces the number of likely customers in the market and the product has a long lifestyle.

Conclusion

The Java house should conduct market and environmental analysis by putting jointly a short list of countries that present a good potential concentration of the new target market. The discussion made above develops an understanding that the case company is conducting a preliminary international market selection process using the strategies approaches in the specific market criteria. After that, the company needs to analyze the variable of each country such as GDP growth, political factors, country risk, and many other factors that affected market expansion. GDP growth includes the country's development prospectus for demand and infrastructure for tourism products or services. The country's risk includes social and political insecurity, unrest, and currency depression. Political factors include the degree of political interference in brand decisions, social and political constancy and trade agreement with the origin country. Other factors include geographic closeness and the comparison of the company's source market in terms of social culture and business. The company needs to do market appeal which includes the demand for the company's product and the risk associated with it. The company should go through operational difficulties in business such as legislation, taxes, administrative costs, and the strength of local competition. Java house should analyze the competition by identifying its main competitors and their economic evolution. The company should detect factors such as channel, price, financial position, market maturity, expansion strategies, and development potential of their competitors before expanding business in new markets. The company needs to adopt appropriate distribution channels to determine market expansion. The company can path the supply chain of the company's produce, from its origin to its final customer. The company can develop a clear idea of the intermediary operator and their price. By analyzing the accessible sale composition in the country and how this could be modified to a product or service. There are several distribution channels in the international market such as the internet, subsidiary company, joint venture, local distributor, commercial agents, and international distribution (Ooi and Ramlee, 2021). The company can rely on demand analysis by analyzing the potential and current demand for the company's product in the market and its predictable evolution. It is concluded from the evaluation and recommendation that the company should prove the pre-selection process was victorious and chosen markets are suitable for business. The company can achieve its objectives and goals by implementing the best strategies while concerning market factors. It is recommended that initial analysis will help the company in further market research and help in accessing correct actions.

References

Bas?Hoogendam, J.M., Groenewold, N.A., Aghajani, M., Freitag, G.F., Harrewijn, A., Hilbert, K., Jahanshad, N., Thomopoulos, S.I., Thompson, P.M., Veltman, D.J. and Winkler, A.M., 2022. ENIGMA?anxiety working group: Rationale for and organization of large?scale neuroimaging studies of anxiety disorders. Human Brain Mapping43(1), pp.83-112.

Calof, J. and Viviers, W., 2020. Big data analytics and international market selection: An exploratory study. Journal of Intelligence Studies in Business10(2).

Czinkota, M.R., Ronkainen, I.A. and Cui, A., 2022. International marketing. Cengage Learning.

Katsikeas, C., Leonidou, L. and Zeriti, A., 2019. Revisiting international marketing strategy in a digital era: Opportunities, challenges, and research directions. International Marketing Review.

Khatab, J.J., Esmaeel, E.S. and Othman, B., 2019. Dimensions of service marketing mix and its effects on customer satisfaction: a case study of international Kurdistan Bankin Erbil City-Iraq. TEST Engineering & Management4846, pp.4846-4855.

Levine, A., Rhodes, J.M., Lindsay, J.O., Abreu, M.T., Kamm, M.A., Gibson, P.R., Gasche, C., Silverberg, M.S., Mahadevan, U., Boneh, R.S. and Wine, E., 2020. Dietary guidance from the international organization for the study of inflammatory bowel diseases. Clinical Gastroenterology and Hepatology18(6), pp.1381-1392.

Ooi, S. and Ramlee, A.A., 2021. Marketing Mix in International Marketing: The Strategy of Gano Excel Industries Sdn Bhd.

Prosser, L., Lane, E.T. and Jones, R., 2021. Collaboration for innovative routes to market: COVID-19 and the food system. Agricultural Systems188, p.103038.

Rasul, T., 2019. The trends, opportunities and challenges of halal tourism: a systematic literature review. Tourism Recreation Research44(4), pp.434-450.

Saidakhrolovna, K.N., Lutfullayevna, F.M. and Saidakhrolovich, K.S., 2021. HISTORY OF THE DEVELOPMENT OF TRANSIT ROUTES THROUGH CENTRAL ASIAN COUNTRIES. ??????????????? ?????????: ?????????? ?????? ? ?????????3(1), pp.91-98.

Sinkovics, R.R. and Sinkovics, N., 2020. The Internet and international marketing–from trigger technology to platforms and new markets. International Marketing Review37(3), pp.437-446.

Tien, N.H., Phu, P.P. and Chi, D.T.P., 2019. The role of international marketing in international business strategy. International journal of research in marketing management and sales1(2), pp.134-138.

Section 2

Overview of key arguments in global vs. local debate

  • The behavior of companies in global markets has been considered for a decade to appreciate which major factors can manipulate the choice between standardized global and local marketing (Cavallo, et. al. 2019).
  • The center of international marketing is the alternative between selling the goods across all boundaries and the implementation of a local marketing strategy to react to local differences.
  • Global products can also contain confined values to give trade activity a higher grade of recognition.
  • The global and local difficulty affects international companies in many areas.By regulating the marketing mix across different countries, a global strategy led to a massive cost-managing benefit due to the economic level. While the local marketing strategy lesser cost benefits which affects the particular area of targeted customers.
  • The international companies have to arrange with even superior pressure, by showing thought for the major difference in the need and demand of customers and the character of the particular country.

Note: The arguments are based on the globalizing race worldwide debating on global vs local. The companies aim to function on an international scale, by following the objective of operating the business globally, they also have to be accountable for local differences (Cavallo, et. al. 2019). Uniting prices, products, distribution channel, and promotion program create the eventual form of consistency and global marketing to achieve the target worldwide.

International marketing mix

  • Product: The global marketing involve taking into concern several different factor including belief, customers cultural background, buying habit, and level of personal disposable income. In several circumstances, businesses will have to adapt their marketing mix strategy and product to meet local desire, needs, and want that cannot be changed. 
  • Promotion: promotional activities in countries may have to be adapted positioning the political climate, cultural attitudes, language, and religious practices. Every feature of promotional details will need planning and research. Many companies adopt promotion strategies in a target markets as cultural practices and backgrounds that influence what appeals to consumers.
  • Pricing: The price of products on an international level is a difficult task. As well as enchanting into account traditional price consideration such as variable and fixed costs, target groups a company needs to consider extra factors such as cost of transport, exchange rates, import duties, disposal income and economic situation of different countries.
  • Place: In an international market there are many parties involve because the products need to be stimulated around a global market where production practices will be different in local markets (Katsikeas, al. 2019). Companies will need to examine allocation chains for each country they want to operate in for the distribution of products. The company will also need to examine who they would like to trade their products and services to retailers, businesses, wholesalers, and consumers.

Note: While introducing a product into international markets a company can use a set marketing mix, to suit the country carrying out its trade activities (Katsikeas, et. al. 2019). . The international marketing mix strategies engage the use of different marketing techniques to accomplish positive economic results by a business operating on international markets. These elements include price, product, distribution, and endorsement. 

The circumstances in which Java House should adopt a global or local approach while highlighting the implications.

  • Java House has immense growth opportunities in the fresh juice and tea marketing products mix. The company must stay significant to the customer to grow its markets.
  • The company’s management team should have the liberty to function within their overall structure to introducelocal price and product mix points to the lifestyles, need, and taste of each customer segment.
  • With orientation to the case company’s overall approach, it should move its core capabilities and competencies to various countries and then steadily build profit growth in African countries as it continued its expansion in an organic method.
  • The company can build up products with the same line of core coffee products. Also as customer lifestyle and tastes changes toward more beverage and snack option, the company should modify its menu and enlarge it to give improved product aid in its marketing mix.
  • Coffee beans are an important input into a company's value chain and at present, there has been a wide fluctuation in the international market prices of higher-quality coffee beans.

Note: The Company can moderate price instability risk by applying an effective strategy to increase their sales and quantity inputs at a lower price so that the expenses can easily be managed to a greater extent. An organization’s growth strategy in the market should focus on receiving additional saturation into rural markets. The company has invested in very lower amount in promotion and marketing strategies.

International marketing mix of Java House

  • Product: A good quality coffee or cappuccino attracts a large number of customers to the company's product. The company's menu should offer excellent products that customers want to buy and drink.
  • Price: the company has a family-run coffee and high-end coffee house outlet. The price of the company's products is based on the quality of products and services and it is also based on competitors' pricing strategies (Ooi and Ramlee, 2021). Once the company set its pricing strategy, it can use it to determine the effective marketing strategy and goal market.
  • Promotion: java house owners should adopt effective promotion and advertising strategies to gain a competitive advantage. This will enhance and grow their sales from time to time, and this should be part of the company's plan for pricing their coffee products.
  • Place: The place is not as easy as finding a location that fits the company’s budget. The company must consider its customer base and its wants, demand, and needs.

Note: A marketing mix is a strategy and plans that drag pricing strategy, together with social media marketing, word-of-mouth marketing, and another marketing strategy to build customer loyalty and make sure that more new customers come through the door of the java house outlets (Ooi and Ramlee, 2021).

The various international marketing approach company can adopt

  • Functioning with Java House on innovation and long-term brand strategy constraints to design a precious relocation, customer experience, and re-launch the company into new international markets and expand toolkit to scale the company across Africa.
  • The sun is an iconic symbol of the java house. The company remains careful to keep this acquaintance with a slight tweak. The company has enhanced its physical features, which make the java house more feminine and African. It also reveals that the African courage of care, warmth, and hospitality.
  • The retro font symbolized a recognized brand name but was not implemented in long term. The company has designed a cleaner and more modern font that borrowed from the previous logo layout (Walubengo, 2019). It enabled a smoother changeover to a fresh look.
  • The necessary brand character of attraction and gratitude was successfully retained. The Company's new look and experience are attractive to create a good-looking and functional experience across the large number of customer touch-points.

Note: Redesigning of company’s menu involves a systematic study of the accessible customers to understand what worked, and in which area the company needs improvements. The resultant new menu enhanced legibility, usability satisfying flow, and brand position(Walubengo, 2019).

Evaluate various marketing approaches and competitor analysis in relation to an organization

  • The Company can moderate price instability risk by applying an effective strategy to increase their sales and quantity inputs at a lower price so that the expenses can easily be managed to a greater extent.
  • An organization’s growth strategy in the market should focus on receiving additional saturation into rural markets(Barbosa, al. 2019).
  • The company has invested in very lower amount in promotion and marketing strategies.
  • The company should choose a crowded area where people travel on daily basis. This strategy will attract a large number of customers with innovative products for the distribution of company’s product worldwide.

Note: The importance of individual studies is diverse from particular elements of the marketing mix of the company`s surrounding business strategy. Java house marketing mix has four main components i.e. price, product, promotion, and place. Each one of these works jointly, the company will be able to develop loyalty with existing customers and attract new ones (Barbosa, et. al. 2019).

Recommendations on how Java House should be structured to maximize the opportunity in an international context

  • It is recommended that the case company can make an important investment inadvertising and marketing strategy initiatives in the face of enlarged competition in the international market.
  • Additionally, it builds and retains purchaser loyalty, by constructing on the beta concept of home delivery of products (Allate, 2018). It becomes important for the company to sustain its standard and at all times be constant around its outlet in different areas to maintain its brand image, oppose competition and also preserve its position in the global market.
  • Due to its stage of fame, and to manage its customers effectively, Java House needs to enlarge its expansion and speed and also maintain the franchise rule for constancy purpose
  • Java House restaurants are on the rise rapidly in the new and existing market indicating the development of the industry and mainly the coffee restaurants. This indicates the overall growth of the company and the challenge for the strategy maker to extend policies that will promote a healthy and growing franchise industry among the existing competitors and probable newcomers.

Note: The license bodies like the ministry of tourism and the city council should be concerned in make sure that there are more actions for any participant to start a business (Allate, 2018). This is to make certain that the new restaurant and cafe business being new set up are up to ordinary in terms of its hygiene product and capacity to stay in the large market.

Conclusion

  • The presentation shows the marketing plan that the company can adapt across global markets and how it can evaluate and organize marketing efforts.
  • The presentation has also included an overview of the company's operation in global and local markets. This has also discussed the marketing mix of the company in international markets.

Note: The presentation highlights the local and international orientation which assesses competitors outline approach.

References

Allate, B.M., 2018. Competitiveness Evaluation of West Africa Coastal Countries Ports: Structure Conduct Performance Approch. Open Journal of Applied Sciences8(9), pp.381-397.

Cavallo, A., Ghezzi, A. and Balocco, R., 2019. Entrepreneurial ecosystem research: Present debates and future directions. International Entrepreneurship and Management Journal15(4), pp.1291-1321.

Escandon-Barbosa, D., Rialp-Criado, J., Fuerst, S., Rodriguez-Orejuela, A. and Castro-Aristizabal, G., 2019. Born global: the influence of international orientation on export performance. Heliyon5(11), p.e02688.

Katsikeas, C., Leonidou, L. and Zeriti, A., 2019. Revisiting international marketing strategy in a digital era: Opportunities, challenges, and research directions. International Marketing Review.

Ooi, S. and Ramlee, A.A., 2021. Marketing Mix in International Marketing: The Strategy of Gano Excel Industries Sdn Bhd.

Walubengo, W., 2019. Corporate brand Identity And Customer Satisfaction At Java House, Nairob (Doctoral dissertation, University of Nairobi).

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