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International Marketing Evaluation and Strategy Assignment
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1. Introduction- International Marketing Evaluation and Strategy Assignment
International Marketing is the use of marketing ideas to meet the requirements and desires of individuals from various countries. Just to put it clearly, international marketing means doing business in more than one country. It is sometimes referred to as "Global Marketing," which refers to establishing a global marketing strategy and tailoring it to the interests of individuals in various countries (Kotabe and Helsen, 2020). For each firm, the most important choice it must take is whether or not to enter the worldwide market; if a business is already a major player in the home market, it may not want to learn about foreign laws and regulations. One or more countries may be involved in the practise of international marketing.
Advances in worldwide marketing have made it feasible for corporations to do business in almost every nation on the planet. An international marketing strategy is one that focuses on selling products and services across borders. Goods and commodities are priced, promoted, and distributed in the same way across the globe. When it comes to worldwide marketing, organisations are no longer confined to their own boundaries (De Mooij, 2021). The financial systems are growing and allowing for more competitive marketing as consumer needs, options, preferences, and inclinations continue to evolve. As a result, businesses must implement well-defined marketing strategies in order to meet the needs of their consumers as quickly as possible.
2. Organisational Overview
In 2005, Allison and Will Abernethy determined to convert their pastime of churning butter into a company after inheriting the ability from previous decades of their family. They began by demonstrating the churning and making of butter at regional agricultural and antique exhibitions, but quickly understood there was a market for their goods. They started off in Northern Ireland, but have now expanded to supply some of the most famous restaurants and retailers in the United Kingdom and abroad (Abernethy Butter, 2021). The butter is prepared with passion and attention in County Down. Abernethy uses only the best cream from a local farm and place a high value on freshness and flavour.
Because the organisation makes them in small amounts, its butters have a unique colour and flavour from the time they're churned. The goal is to manufacture the most flavorful butters consumers have ever experienced, using only ingredients obtained from within 100 miles of the facility. In order to guarantee that our products meet our high standards, they devote a lot of time and attention to the manufacturing procedure (Gill et al., 2020). The butters they make at Abernethy Butter are blended by hand with using wooden butter paddles since they don't value efficiency. The Abernethy Butter Company, which was founded in 2005 and is based on a family farm outside of Dromara in County Down, produces rich, creamy butter every day by hand.
Will and Allison Abernethy make their butter using locally obtained cream and it has a shelf life of 12 weeks with no additions or additives. On Beechtree Farm, which has been in Will's family for generations, the industrious pair solely uses conventional practices. There is a small farm in County Antrim that raises cows on lovely green fields and supplies them with the cream they need to make the butter (Ruddock, 2021). A dash of salt is all that's required to season natural butter. After the buttermilk is drained, the cream must be rinsed in cold water to eliminate any remaining buttermilk. To avoid souring the butter, wash the butter at least five times to remove any leftover butter milk. The butter is then salted and rolled out on wooden butter pats before being cut into rounds for serving. At fairs and antique exhibitions, they've shown their hand churning butter skills, which they've continued to do effectively ever since.
3. Situational Analysis
3.1 Macro-Environmental Analysis
PESTLE Analysis
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Factors
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Description
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Political Factors
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The farmer's choice to maintain cattle and obtain milk from them will be influenced by government laws and restrictions on agricultural goods (Reinhardt et al., 2017). If government regulations and rewards are in support of slaughtering cows rather than milking them, it would be in farmers' best advantages to do so.
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Economic Factors
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Purchase power in the economy is the most visible economic issue impacting Abernethy Butter Company. Irrespective of one's financial situation, individuals always try to buy milk since it is regarded an important foodstuff (Ulubeyliet al., 2019). The revenues of butter will not be considerably affected by a family's lower income until the family's revenue falls below the basic minimum.
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Social Factors
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Butter sales may be affected by consumer attitudes regarding obesity. Because of the widespread belief that high-fat foods lead to weight gain, consumers may choose for lower-fat or skim alternatives instead(Reinhardt et al., 2017). The same may be said for other substances like salt, sugar, and gluten.
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Technological Factors
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Abernethy Butter Company is able to sell a variety of butter products thanks to modern technology. In addition to a wide variety of these items at a cheap price(Ulubeyliet al., 2019). The organization's rise is mostly due to the rapid use of new technology in agricultural operations.
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Legal Factors
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Aside from international regulations, the Abernethy Butter Company will also have to abide by local rules on advertisement and product labelling(Reinhardt et al., 2017). Nuts and gluten are only two examples of possible allergens that need to be mentioned explicitly on product labels. False advertisement statements will also be required of them.
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Environmental Factors
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Livestock health and availability are critical to the success of Abernethy Butter Company. Another consideration is the kind of environment in which a dairy farm decides to function(Ulubeyliet al., 2019). The Abernethy Butter Company will have to seek at ways to preserve their goods in a warm environment so that they can keep their products fresh for longer periods of time.
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(Source: Castañeda-Ayarza and Godoi, 2021)
4. Marketing Objectives
4.1 Rationalisation or Significance of Objectives
Objectives for marketing are quantifiable targets that specify what the marketing approach of Abernethy Butter Company must accomplish. They are designed to help business achieve certain goals in the marketing strategy. Additionally, the most successful objectives are those that compliment your company strategy. There is a major distinction between "marketing aim" and "marketing goal" when the phrases are used simultaneously (Kari,Masud and Saifullah, 2017). It is common for marketing objectives to be high-level, providing a broad picture of what a company aims to accomplish. It is common for objectives to have S.M.A.R.T goals, which means that they are defined in terms of being "specific", "measurable", "attainable", "realistic" and "time-bound" (see appendix 1).
Smart marketing goals may also aid in increasing the effectiveness of the company. Having all of the workers working toward the same, defined objectives can help the team operate as a cohesive one. The marketing staff will be held to a higher standard of performance if they are held to specific goals (Bonsuet al., 2021). As a result of this sort of objective being very quantifiable, it automatically enables Abernethy Butter Company to generate key performance indicators (KPIs) that indicate whether or not businesses are functioning successfully or whether modifications ought to be performed.
4.2 Justification of the Objectives
It's important to emphasise the significance of both income generation and building the company's brand from the outset of the marketing strategy. The organisational marketing approach of Abernethy Butter Company to content production, technical SEO, demand marketing, and other areas will be shaped by these considerations. Setting the plan up for success is the key. As an aside, it's critical to remember that explaining findings clearly is just as critical as discovering them (Kissová, 2021). Revenue and brand KPIs should be reported on to convey the full scope of business activities and show how they are impacting the overall brand. Establishing marketing objectives is a piece of cake. Whether or if the organisation will be able to achieve its goals is another matter entirely.
Individuals don't want to create objectives that are so difficult that Abernethy Butter Company will never achieve them, or that are too simple that the organisation will never do anything. Present this reasoning to the team and solicit input, along with a description of the time-sensitive aspect of these objectives (Shin Legendre, Warnick and Baker, 2018). Its then time to begin constructing a goal-oriented marketing plan after the organisation has matched established objectives and KPIs with real time-sensitive expectations in the following phase. It is certain that some of their marketing objectives will be met in the near term (3/6/9 months) while others will take longer (12/18/24 months). That's why addressing delivery expectations is critical when establishing objectives.
5. Marketing Strategy
5.1 Portfolio Analysis
5.1.1 The Attractiveness of Allocated Country
For overseas investors, Iran is a great place to put their money. Iran is a land of opportunity, not only in traditional sectors like "mining", "oil" and "gas", and "petrochemical", but also in newer sectors like IT and other technology-based enterprises. Iran is able to keep up with the newest technological advancements because of its highly educated and committed population. Iran is also a highly affordable nation to invest in, with a minimum wage of $ 150 per month and an expert pay of $ 600-1000 per month, making it a great place to start a business (NajafiNasabet al., 2018). According to other nations with similar business appeal, the service cost is comparatively low. Abernethy Butter Company, as a foreign operator, may form a corporation in Iran without the need for an Iranian partner, contrary to popular belief.
"FIPPA License", which is meant to ease foreign investment in Iran, may be applied for quickly. In a previous post, they detailed the many advantages of obtaining a "FIPPA License." Iran's commercial market does have several qualities that may be seen as possible hazards, in spite of the benefits listed above. Iran's enormous customer market, skilled population, varied economy, infrastructure investment requirements, capacity as a regional centre, and new paradigms of privatisation and foreign direct investment are some of the main reasons to conduct business in Iran (Aali, Javani and Zendeh, 2019). The "Foreign Investment Promotion and Protection Act 2002" (FIPPA) provides a range of benefits and safeguards for individuals who get a license underneath that Act. "Iranian law" currently enables full foreign ownership in most economic sectors. To name just a few: safeguards regarding confiscation and nationalisation; fair and equitable treatment; assured restoration of business revenues; and an accelerated visa application process.
5.1.2 Competitive Strength of Selected Company
In this year's Irish Food Writers' "Guild Food Awards", which honour Irish manufacturers, "Abernethy Butter of Dromara" earned the "Food Award". It has been about a decade since Allison and Will Abernethy started making their own butter in Ireland, which is a near-lost practice of handcrafted, "Hand-Rolled Butter". "Dulse Butter," "Black Garlic Butter," "Smoked Butter," "Chipotle Chilli& Smoked Paprika Butter," and homemade chocolate and lemon curd are some of the flavours created by the pair, who have two children (Savytska, Chmil and Redka, 2018). It is a completely distinctive Irish dairy product since it is created at Beechtree Farm, where they reside, using a procedure that is unlike any other. Beechtree Farm's small-batch, slow-churned, hand-rolled butter is prepared using Draynes Farm grass-fed and individual herd’s cream, which is fashioned with wooden pats. All Allison Abernethy stated in an interview with the Irish News today was that she and Will were "over the moon" to have won the prize.
To be acknowledged with the "Irish Guild" for all their tough effort is a great honour for everyone. Abernethy Butter Company is ecstatic to have this opportunity. "The Fat Duck in Bray, Berkshire," the Michelin-starred chef Heston Blumenthal's new restaurant, used to be looking for a local supplier of hand-made butter when he contacted the family firm, the hospital worker recalled. As the chairwoman of the "Irish Food Writers' Guild Food Awards", Kristin Jensen remarked, "The last year has witnessed a seismic change in how people are thinking about their food, with a renewed emphasis on provenance; conservation; and, most significantly this year, supporting local" (Wazir et al., 2020). In terms of positives, this epidemic has put a bright light on some of Ireland's most innovative and imaginative food manufacturers, who have reacted to the problem by contributing back to their communities and assuring that they have accessibility to the maximum home-grown products.
5.1.3 Mode of Entry with Justification
There are different kinds of international market entry modes followed by different organisations during their organisational business operation throughout the world. Generally, the market entry modes like exporting, licensing, partnering and strategic alliance, acquisition, joint venture, wholly owned subsidiaries, contract manufacturing and outsourcing and foreign direct investment. International marketplaces may be reached by exporting, which is a well-established strategy. It does not need expenditure in international manufacturing capabilities since it does not demand that the commodities be manufactured in the target nation (KILIC and ATLURI, 2018). Companies in the target nation are granted access to the intellectual property of the licensor when they license their product. Trademarks, patents, and manufacturing methods are examples of intangible property. In addition, franchising is a logical way for corporations like McDonald's to expand internationally, given they function locally under a franchise model. To save money, many American corporations outsource their manufacturing to nations with cheaper labour costs, such as China and India.
Global manufacturing or outsourced is a term for this scenario. There has been an increase in the use of strategic partnerships and joint ventures. To enter foreign markets, they let enterprises to combine the hazards and assets necessary. There are three ways to acquire another business: by acquiring its shares, swapping it for its own, or by giving its proprietors a purchase cost for their shares. When a firm sets up shop in a foreign country, it is referred to as "Foreign Direct Investment." This means that the company sets up factories, sales subsidiaries, and supply channels in order to service local markets (Pittino,Visintin and Lauto, 2018). A new, completely owned company may be difficult and expensive to set up, but it gives the company complete ownership and the best chance of generating above-average results. Considering the significant expenses of starting a new company operation in a new nation, the costs and risks are substantial.
In this aspect, generally, Abernethy Butter Company will utilise exporting method as a mode of international market entry. During the consideration of this international market entry mode, the organisation can significantly negotiate with the local retailers of Iran in order to sell their products in the Iranian market (Kozlova,Skrypnikov and Kozlov, 2019). Through this, the supply chain system of the organisation plays the most significant role for exporting or transporting the butter items in the Iranian market. In this way, exporting as a market entry mode for Abernethy Butter Company will be appropriate and justified in order to operate the organisational business throughout the international market.
5.1.4 Segmentation, Targeting and Positioning
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Segmentation
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General consumers are the company's target market, and its products are loved among people of all ages and ethnic backgrounds (Camilleri, 2018). The reason for this is because Abernethy Butter Company is present in a wide range of butter items, includes "Dulse Butter," "Black Garlic Butter," "Smoked Butter," etc. products.
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Targeting
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Because it has a large product variety, it does not distinguish itself in the eyes of its consumers and instead employs a mass marketing strategy (Shahet al., 2018). Furthermore, to this day, this idea has proven to be quite effective in Abernethy Butter Company's marketing strategy. In a similar vein, the target audience consists of normal middle-class individuals.
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Positioning
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This is due to the fact that higher end clients have a large number of high quality items to choose from when it comes to ice cream. Other items, such as butter and cheese, are targeted at both high-end and low-end clients, depending on the commodity(Camilleri, 2018). According to position, Abernethy Butter Company has top of the mind placement since it is the first brand that comes to mind when people are talking about milk-based items such as butter, or any other dairy variations.
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Figure 2: STP Analysis
(Source: Shahet al., 2018)
6. Marketing Tactics
6.1 Product
Abernethy Butter Company has a wide variety of products to choose from in its advertising strategy. All the dairy products that are now available are included. Abernethy Butter Company obtains milk from their main source and then processes it into a variety of products has a long history of developing cutting-edge goods for a wide range of markets. These items show us how it categorises its products into distinct niches as per customer need (Dörnyei, 2020). Every product category has many rivals, yet no one has been able to surpass Abernethy Butter Company due to its very diversified and inventive dairy goods. More than a thousand people work for the firm, which relies on more than three million dairy farmers for its supply.
6.2 Price
They've adopted a low-cost pricing plan as part of their overall marketing strategy. It was necessary for them to do this in order to implement this approach (Fulgoni, 2018). When compared to rivals, everyday items like various types of butter were offered at cheaper prices to customers than those in specialty markets, while products that covered a far larger market share were more expensive. Market-oriented approach is the norm for Abernethy Butter Company.
6.3 Place
A large distribution network that reaches almost every corner of the United States helps Abernethy Butter Company maintain its leadership position in such a turbulent industry with fierce competitiveness. The Abernethy Butter Company's whole business strategy is based on acquiring the raw resources in bulk and then reducing it to a manageable size until it reaches the customer as a single item(Dörnyei, 2020). In Abernethy Butter Company, there are two main marketing routes. In the procurement channels, dairy co-agents are responsible for acquiring the product. It's also important to have a method for getting the finished product to customers.
6.4 Promotion
Advertising for Abernethy Butter Company often utilise current events in a humorous way, which ties the customer to the product. Butter is the primary focus of their marketing efforts. To maintain its position at the top of the market, Abernethy Butter Company doesn't invest more than 1% of its income on advertising(Fulgoni, 2018). For this reason, the Abernethy Butter Company has developed an online app for the e-commerce system that allows customers who purchase items from the corporation via e-commerce to have them delivered to their doorsteps. As a result of using this app, Abernethy Butter Company has been able to promote their brand on a variety of social media platforms.
4Ps of Marketing Mix
(Source:Cruz-Milán, 2021)
7. Marketing Action Plan
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Tasks
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Purpose
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Cost or Expense
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Date of Initiation
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Date of Closing
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Negotiation with the Stakeholders
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To gain a significant knowledge regarding Iranian market for marketing and operating the business of Abernethy Butter Company.
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Expenses for arranging foods for the stakeholders during meeting.
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1st December, 2021.
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1st December, 2021.
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Preparation of the Marketing Plan
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To appropriate utilise the marketing approaches for develop organisational brand awareness.
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Expense for the marketing plan.
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2nd December, 2021.
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End of the execution.
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Adoption of Strategies for Business Development
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In order to proficiently develop the business in the new international market of Abernethy Butter Company.
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Expense for generate new strategies for the business.
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3rd December, 2021.
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25th December, 2021.
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Implementation of Strategic Approaches for Marketing
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To extensively develop the organisational marketing ability during their organisational business operation.
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Expense for utilising different strategic approaches.
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27th December, 2021.
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11th January, 2021.
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Utilisation of Approaches for Advertisement or Promotions
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To reach each area of both the domestic market and the international market (Iran).
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Expense for using different medium for marketing and advertisements.
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12th January, 2021.
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Still during organisational business.
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Application of Strategies for Entering a New Market
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In order to legally and prominently enter in the international market of Iran for operating the business.
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Investment for exporting and taxes.
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14th January, 2021.
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31st January, 2021.
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Formation of a Plan for Budget Estimation
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In order to get sufficient and appropriate knowledge regarding the requirement of financial resources for international business operation.
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N/A.
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13th January, 2021.
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5th February, 2021.
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Execution of the Plan
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To successfully and potentially operate the organisational business in the Iranian market.
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N/A.
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6th February, 2021
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Conclusion
In Iran, the growth strategy is conceivable, encouraged, and tactically advantageous. To begin with, Iran will serve as a centre for this entrance. When Abernethy Butter Company focuses on prospective customers that it can best serve via a tailored marketing campaign, it will establish significant consumer connections that benefit both the client and the corporation, resulting in increased ROI. Marketing strategy would be transformed into genuine value for both parties if the marketing mix parts were integrated in a well-planned manner. Consequently, Abernethy Butter Company should also perform solid consumer relation administration with its clients in order to maintain a strong partnership. This value proposition will then be communicated to potential customers by Abernethy Butter Company, who will subsequently be persuaded to act on the market opportunity. Abernethy Butter Company's development strategy in the Iranian market will be a success if it positions itself as a store, which has the ability to increase the organisational 5% market share.
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