11 Pages
2724 Words
1. Introduction: Green Chef's Entry Strategy in Luxembourg: Trends & Social Media
International marketing management may be defined as a strategic process undertaken by the business unit for capitalising opportunities that are available at the global level. The company places more focus on understanding consumer behaviour by taking into account marketing principles. The current report is based on one of the leading companies, Hello Fresh, which now owns Green Chef. Now, the company is planning to develop its business operation within Luxembourg as a brand under the umbrella of Hello Fresh. By expanding the business operation, the company can attract potential customers. The report will enable the organisation to provide information about the various segmentations, cultural insights and purchasing behaviour of Luxembourg citizens. Additionally, Hello Fresh is one of the leading providers of food delivery services. The headquarters of this organisation are situated in Berlin, Germany, and it was incorporated in 2011. Apart from this, the report will highlight the market entry strategies and different international trends in the marketing environment, as well as how social media shapes the organisation's success.
2. Market Entry Strategy
The given organization is looking towards grow and develop its business operations through a channels of distribution such as direct arrangements and joint venture with Amazon.
Direct Arrangement
Direct arrangement is considered as one of the significant market entry strategies to enter the global market. This option of Green Chef demonstrates entering into international market by direct marketing via supermarket chains. The supermarket chain is one of the significant functions that defines self-service of the products in the physical stores. If the company sell its products through physical stores, then the customers will easily get the goods. The meal variations differ from country to country, that why the direct arrangement is an effective option for Green Chef to enter in the market. Selling or marketing the meals without the interruption of a third party will be beneficial for the given company to generate more revenue. Usually, direct delivery or arrangement requires the company to have their system of delivery, and all the management is done by themselves (Qi et al, 2020). Generally, this option is adopted by all the online companies, and Green Chef can be a good fit for direct arrangement. Cactus is one of the leading and largest supermarket chains in Luxembourg. The given organisation will hugely benefit by working together with the Cactus because its revenue is constantly increasing, as well as has a reputable brand image. Green Chef also uses an online delivery function with its websites for direct arrangement, which helps in attracting more customers and generating revenue. Selling the products via their websites, the customers will feel safe with the outcomes and provide opinions to others. With the help of websites, the customers will provide their suggestions and opinions regarding the meals (Shah and Soomro, 2021).
Joint Venture With Amazon
Amazon is one of the biggest e-commerce organisations in the world. The creation of a joint venture with Amazon can be cost-effective for the company. Amazon is inspiring in transporting products and services to consumers at their convenience. Choosing the joint venture option will be beneficial for Green Chef to expand its business operation in Luxembourg. Green Chef can increase its reach of customers by offering products and services to individuals who live in diverse parts all over the world (Leonard et al, 2020). With the help of a joint venture with Amazon, Green Chef can deliver the numerous meal kits to customers easily. In addition, Amazon Prime is the service that enables customers to get the products and services on the same day of ordering. Selecting the option of a joint venture can be beneficial for the organisation because it helps in scaling up with its limited capacity. The joint venture helps both organisations gain a competitive advantage to generate economies of scale. Joint venture enables access to new markets and distribution networks. It opens a vast market for the companies and provides an opportunity to grow and develop (Sadegh, Shah Hosseini and Heidari, 2020). A joint venture of Green Chef with Amazon can be useful for the business because they come up with new technologies and ideas in food to increase the satisfaction and experience of customers.
From the above both options, the second option can be most favourable for Green Chef to expand its business operations within Luxembourg. The creation of ja oint venture between Amazon and Hello Fresh can help in reaching ba roader audience all over the world. Undoubtedly, Amazon is the leading e-commerce retailer in the world, and, naturally, it can help Hello Fresh attract broader people in Luxembourg and other parts of the world, which leads to an increase in profitability.
3. Global Trends And Their Application In The Local Environment
International trends and application assist the organization to grow the local environment and their potential measurement. The international trends help the business to involve the part of preferences and resolutions. There have some major international trends which are political power, growing divergence, shifting demographics and political power.
The Coronavirus
COVID-19 majorly impacts the nutrients and food for countries. The target country has to assess the performance in purchasing approaches and stay normal state. Due to the Pandemic, the GDP of Luxembourg fell by a high percentage, and the profit maximisation rate also declined. Majorly, the rate varied from 2.92% to -0.91%, and it is bad for the country's stimulus and their internal evaluations (O'Neill, 2023). There has been a negative formation of the market size and the consumer market for the unwanted crisis. This trend will be effective for Green Chef because the individuals are likely to stay healthier and connected. After the pandemic, people are likely to consume healthy meals, which will be beneficial for them to attract customers. Apart from this, the recommendation for Green Chef in Luxembourg is to put more emphasis on marketing its meal kits. This can be done by increasing its presence in the restaurants as well as promoting its products on social media platforms (Candra, Ayudina and Arashi, 2021).
Rethinking Sustainability – No Purpose No Gain
Another significant global trend in the international market is rethinking sustainability. This trend demonstrates the valuation of no purpose and no gain circumstances. Implementation of this trend can be beneficial for Green Chef because it is a better implementation in the new brand appearance and health resolution. In current times, rethinking sustainability is considered one of the significant global trends because the customers are likely to eat organic foods to protect their health and environment (Vermeir et al, 2020). There is evidence for the increasing significance of sustainable and organic food in Luxembourg. Europe has a major contribution to organic agricultural land worldwide. In 2022, the trade sales of organic food in Europe reached 927 million British pounds (Statista, 2024). So it can be beneficial for Green Chef to provide organic meal kits to customers in Luxembourg, which leads to an increase in sales and profitability. Apart from this, it has been suggested that Green Chef can focus on the marketing of organic food products. For this, the organisation can be required to increase its presence in ecological and organic food stores as well as market its products through social media channels.
COVID-19 – Effect on Packaged Food
Another significant trend for Green Chef is COVID-19, which is relevant to its brand proposition. The section on consumer behaviour enhances the capabilities of organisational measurement and qualifications. COVID-19 has shown that individuals need to utilized high management formation to keep the cleanliness of food and maintain the health of the customers at high peak hours. Hello Fresh also offers a packaging kit for a meal, which will be fish or vegan. Due to the pandemic, the lifestyles of people have been changing and which are changing on social channels, stockpiling, home seclusion and preventative health (Din et al, 2022). At the time of the pandemic, the GDP rate of Luxembourg drastically fell and reached -0.91%. But Hello Fresh can use this trend for its global influence to better sell. Apart from this, to market the products within the new country, the organisation may need to focus on the marketing mix. This can be done by increasing the presence in that country in retail stores within the country. To market the products and increase the customers, the given organisation can use the various social media platforms.
4. Country-Specific Communications
Social Media, Standardisation and Adaptation
Internet community is one of the significant platforms for marketing and promoting products in the market. It is the platform that helps the organisation to collect the consumers and raise the brand value from lower to peak. The social media platforms consist of Facebook, Instagram, Snapchat, Twitter and others. These platforms are useful for the organisation to increase the reach of the audience and advertise the goods and services, as well as increase the variety of information. Luxembourg is a country where Hello Fresh has spread its kit meals to the customers. People within Luxembourg are spending the majority of their time on Facebook, so it can be beneficial for the given organisation to promote its food products in the competitive market. This social media platform can be valuable for this company because it standardises the quantity and qualifications (Wibowo et al, 2020). During observation of social media, it can be crucial for developing the marketing mix. Social media includes diverse processes to obtain the right channel. Along with this, portable values, mobile and computer are also comprised in the adaptation management on social media platforms (Zollo et al, 2020).
Social media platforms are useful for the business because they helps the customers to spread feedback and opinions. With the help of social media platforms, spread its process of advertising process, which will offer standard situations (Ebrahim, 2020). In Luxembourg, technology is disapprovingly standardised, and the internet community is not a new concept, so the individuals have previously adopted the technological aspects. Adaptation of social media can be useful for Green Chefs to promote the business operations within Luxembourg. As of 2023, the most popular and used social media platform in Luxembourg is Facebook and with more than 62% (Jo Dixon, 2023). Apart from this, the cultural values of Luxembourg are different from other countries. The cultural values of this country include openness, trust and exploitation-free culture, so these requirements can be met by Green Chef and it can run its business operation transparently and ethically.
To promote the brand effectively, the given organisation need to use Facebook as its major medium to foster its contributions and ultimately reach the broader audience. Green Chef previously had a Facebook page where it constantly posts content to provide information regarding the kit meals and new offerings. This organisation does not use the other social media channels to promote the products in the new country because the proportion of active users on Instagram and Twitter is relatively low, i.e. 12.04% and 10.7% in comparison to Facebook. The Facebook page can also comprise a large portfolio of organic food items in the offering because in this country, the large proportion of people are likely to consume healthy and organic food.
Furthermore, Green Chef can also adapt its social media by providing complementary food for dinner and lunch to new customers, so that they visit again. Adaptation of social media platforms is beneficial for organisations because it helps in providing complete information about the products to customers. If the organisation is using social media platforms, then the customers have complete updates regarding products, and they make a purchase (Manzoor et al, 2020). Promoting the products on the social media platforms can beneficial for the business it helps in increasing the profitability and sales, which ultimately positively impacts the brand position and image. With the help of social media platforms, Green Chef can increase the brand awareness of its products and effectively communicate with its customers regarding its products.
Facebook post of Green Chef
Facebook Followers of Facebook
Conclusion
From the above report, it has been concluded that Hello Fresh can grow and develop its business operation within Luxembourg. A joint venture with Amazon can be the most useful option for expanding the business operation within Luxembourg because it helps Green Chef improve its entire e-commerce operations. This organisation implement three global trends, such as Coronavirus, rethinking sustainability and Covid-19 packaging relevant to its brand proposition, and it has a massive impact on the local environment. This organisation can use Facebook to promote and market its products in the market.
References
Books and Journals
- Candra, S., Ayudina, M. and Arashi, M.A., 2021. The impact of online food applications during the Covid-19 pandemic. International Journal of Technology, 12(3), pp.472-484.
- Din, A.U., Han, H., Ariza-Montes, A., Vega-Muñoz, A., Raposo, A. and Mohapatra, S., 2022. The impact of COVID-19 on the food supply chain and the role of e-commerce for food purchasing. Sustainability, 14(5), p.3074.
- Ebrahim, R.S., 2020. The role of trust in understanding the impact of social media marketing on brand equity and brand loyalty. Journal of Relationship Marketing, 19(4), pp.287-308.
- Leonard, T., Pakpahan, E.F., Heriyati, L.K. and Handayani, I.G.A.K.R., 2020. Legal review of share ownership in a joint venture company. International Journal of Innovation, Creativity and Change, 11(8), pp.332-45.
- Manzoor, U., Baig, S.A., Hashim, M. and Sami, A., 2020. Impact of social media marketing on consumer's purchase intentions: the mediating role of customer trust. International Journal of Entrepreneurial Research, 3(2), pp.41-48.
- Qi, X., Chan, J.H., Hu, J. and Li, Y., 2020. Motivations for selecting cross-border e-commerce as a foreign market entry mode. Industrial Marketing Management, 89, pp.50-60.
- Sadegh, M.H., Shah Hosseini, M.A. and Heidari, A., 2020. Extracting the Effective Factors on Corporate Governance Formation in Strategic Alliances with Focus on International Joint Ventures through Systematic Literature Review. Journal of Business Management, 12(1), pp.64-93.
- Shah, N. and Soomro, B.A., 2021. Internal green integration and environmental performance: The predictive power of proactive environmental strategy, greening the supplier, and environmental collaboration with the supplier. Business Strategy and the Environment, 30(2), pp.1333-1344.
- Vermeir, I., Weijters, B., De Houwer, J., Geuens, M., Slabbinck, H., Spruyt, A., Van Kerckhove, A., Van Lippevelde, W., De Steur, H. and Verbeke, W., 2020. Environmentally sustainable food consumption: A review and research agenda from a goal-directed perspective. Frontiers in Psychology, 11, p.1603.
- Wibowo, A., Chen, S.C., Wiangin, U., Ma, Y. and Ruangkanjanases, A., 2020. Customer behavior as an outcome of social media marketing: The role of social media marketing activity and customer experience. Sustainability, 13(1), p.189.
- Zollo, L., Filieri, R., Rialti, R. and Yoon, S., 2020. Unpacking the relationship between social media marketing and brand equity: The mediating role of consumers' benefits and experience. Journal of Business research, 117, pp.256-267.
Online
- Jo Dixon, S, 2023. Most popular social networks in Luxembourg. [Online].Available through: <https://www.statista.com/statistics/1424434/netherlands-leading-social-networks-share-visits/ >. [Accessed on: 7th February, 2024].
- O'Neill, A., 2023. GDP of Luxembourg. [Online].Available through: <https://www.statista.com/statistics/381053/gross-domestic-product-gdp-growth-rate-in-luxembourg/>. [Accessed on: 7th February, 2024].
- Statista,2024. Organic food market in Europe. [Online].Available through: <https://www.statista.com/topics/3446/organic-food-market-in-europe/#topicOverview >. [Accessed on: 7th February, 2024].
