International Marketing Strategy Assignment Sample

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Introduction of International Marketing Strategy

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Sannegen Housing Solutions, a Swedish company known for its environmentally friendly and custom-made roofing materials, will be profiled in this research to better understand the breadth and potential of the rapidly growing construction industries in Egypt and New Zealand. The primary goal of this research is to do a comparative analysis of the target market's present situation before exploring the various options for successfully entering that market which has a market demand for green roofing solutions. Market segmentation will be analyzed with a focus on target customers to identify and explain potential customers (Tien et al., 2019). Also included in this research is an assessment of the marketing tactics and associated risks/benefits of this endeavour. It will then attempt to combine foreign marketing and communication tactics and a thorough analysis of its product's potential for success in the chosen market into the report's findings. The final recommendation will be included in the report (Katsikeas et al., 2019).

Also, it saves more than 13.14% of annual energy, which is constituted of air conditioning as because of green roofing the temperature falls down by 16 degrees Celsius making sure that no solar radiation is absorbed by the contents of the building (Samiee and Chirapanda, 2019). This product also reduces the stormwater running off and retains the infrastructure stormwater pipes, which helps the infrastructure and the sewers as it does not overflow but slowly accumulates into the sewer with time or better in the rainwater conserve tanks.

Background

Sannegan started manufacturing and supplying their 3D modelled Green Roofing System in Sweden but soon realized how much it is needed in countries such as Egypt. Egypt being generally hot and humid geographically, it needs this product more than usual and now Sannegan is looking to expand in Egypt and New Zealand And then into Middle East (Katsikeas et al., 2019).

Sannegan established its reputation into the industry with specialized floorings and roofing units in Ukraine, Scotland and India. Here this paper also discusses implementing the specific marketing strategy for global expansion in two different countries, associating how they utilized their international market strategies and how further they would be implementing it while making their way into the many other countries (Samiee and Chirapanda, 2019).

They also have managed to gain global recognition nominating themselves for various business awards and innovative ventures in roofing technology and also have managed to make a decent revenue according to the 2019 financial report. But their main motive of spreading all throughout New Zealand is because of the rainfall with an average of 640 mm and helps with the extreme temperature during the summertime in Egypt by absorbing most of the solar radiation (Katsikeas et al., 2019).

Opportunity

Egypt is looking for green roofs and their subsequent use because not only does it help with the air quality problems and is making sure that the electricity demands are lowering in the urban areas. Also, global warming is at a peak, especially from 2015 to 2019 and because of this reason, a place like Egypt, which lies very near to the equator along with having the Sahara Desert not only is very humid but retains much heat in its soil and its urban structures. This is one of the reasons that air conditioning is a must for Egypt's urban centres (Samiee and Chirapanda, 2019). Increasing energy efficiency has to be one regulation making sure that global warming does not affect the cities as much as it usually oxide and others which are regulated from the vehicle emissions are regulated into the urban settlements and are controlled along with making institutional power cuts trying to conserve energy (Loiola et al., 2019). However, now they have a rate of mitigation with a green roofing system as it not only reflects the solar radiation but also makes the entire building reflect radiation back into the atmosphere where it can escape and not be absorbed by any concrete material.

It also offers a wide economic benefit and environmental benefits, including stormwater management in places like New Zealand and airborne particulate matters to be reduced and it largely reduces the solar radiation absorbed by concrete making the temperature lower by approximately 10-16 degree Celsius in Egypt. This is one of the reasons that Egypt is getting into the transferable context of using more potential green roofing systems along with solar energy panels for potential scaling up in an energy-efficient process (Rosaco and Perini, 2019). The company reached out to start their product from New Zealand as the roofing technology is worldwide known. Also, with the fact that New Zealand has a weather pattern that is humid enough, it has a prolonged rainy season. So, in the summertime, it is easier for urban centers and buildings to reflect solar radiation letting the building be much cooler and, in the summertime, it is easier as the potential roofing material helps in implementing an effectively extended reservoir for stormy and rainy weather (Manso et al., 2021).

Analysis

From survey and model analysis, it shows that the current market of green roofing is in Egypt and New Zealand as the political situation and environmental causes serves the reason of such a business to start. Certain factors like, how much economically energy is costing and it is growing to develop the highly complex need for energy into these countries were used to relate how the products would be helping them economically and environmentally by reduced the need for air conditioning in places like Egypt which will save the environment and energy and provides a solution for heavy rainfall storm sewer clogging in place like New Zealand (Rosaco and Perini, 2019). Along with those environmental protocols where all of these countries were in deep need of environmental factors and the creating activities not only helps specific manners of rainwater harvesting but also help with the lesser observation of solar radiation ultimately leading to lesser energy being used on the air condition. This also sustains the forest as they are a means of nuclear power plants to create energy and electricity (Manso et al., 2021).

Market Segmentation Analysis

Segment revolution, Segment evolution, and Segment mutation are three approaches to Market Segmentation Analysis that are based on organizational restraints that prevent them from targeting a certain market (Morgan et al., 2018). Common sense segmentation, convenience group segmentation and a posteriori and data-driven segmentation all fall into this category. The other is influenced by the type of segmentation variable(s) at play –

 Different stages of market segmentation analysis for international expansion

According to a Environment and energy survey it shows that Buildings consumes more than 40% of the energy used in the world for air conditioning and lighting and other facilities. Now, the green roofing system and scientifically provides triple layers of green plants and grass system which acts as a barrier between concrete and the direct sunlight. Then, the solar radiation is lesser absorbs making the temperature inside the building go down by 10–16-degree Celsius which means the energy consumption will come down and environment will be in benefit. This is one of the major reasons for selective implementation and exporting of the product Egypt is chosen. Also, access to the Egypt market with such a patented product could only open more opportunity for expanding towards Middle East. (Asseraf and Shoham, 2019). Similarly, a lot of energy is consumed to collect rainwater for harvesting as well as for water pumps in sewer due to heavy rainfall clogging of the sewers in many countries. This is one of the reason new Zealand is chosen as the foothold for the business with heavy rainfall and here the product can receive their fame from and it can be easily controlled by the company if anything goes wrong.

An effective targeting strategy is used to identify the ideal customers for product sales after segmentation. Sannegan, which has a wide range of products, has opted to sell recycled 3D green roofing material to specific markets in New Zealand and Egypt because of the recent increase in the construction business. Another option is to collaborate with other small businesses to have access to their knowledge and experience in the field of local sustainable housing and the policies that go along with it. Geographic and psychographic segmentation are two of the segmentation modules in use by Sannegen (Morgan et al., 2018).

Three different target markets for Sannegen

Niche/ concentrated marketing: Only a small fraction of the market is the focus of niche/concentrated marketing. Sangen Housing Solutions would be more profitable if it had a well-defined and precise customer base whose specialized needs could be satisfied at the outset of launching. In addition, recycled roofing materials are underutilized in New Zealand's otherwise booming construction industry. Sustainable long-term planning is a potential opportunity here, and this is in accordance with Swedish regulations on this matter (Loiola et al., 2019).

Advertisement and Promotional strategy analysis

Sangen will have to wait a while to get a handle on the prevalent market trends in a new country because advertising and marketing in a new country comes with its own set of costs and dangers. A narrow customer base would be the most successful marketing segmentation since its requirements and expectations would give Sannegen a better understanding of local market demands and allow it to expand from there. For advertisement and promotion. Greenwashing is an efficient marketing strategy for environmentally friendly and environmentally sustainable products. An eco-friendly brand would use this strategy to promote its products and services by using a few solid selling principles that will resonate with its target audience. From advertising to delivery and thanking customers, they will be guided by the same system. It is possible for a brand to successfully enter the foreign market if it does not overemphasize its green positioning (Kazemi and Courard, 2020).

Findings

These four possible modes of international market entry are viable for the target company (Shafique et al., 2018).

Direct Selling

In New Zealand, direct marketing is a common method of promoting a product or service. NZ Post's liberalization and privatization has sparked competition for special mailing services in New Zealand. There are a number of basic services offered by New Zealand Post, including bulk mailing rates and data processing. All of these services can be provided by private enterprises, except for mail processing. Modern distribution infrastructure in New Zealand is capable of supporting any supply-chain or inventory-control strategy. Trade, transportation, packaging, manufacturing, and distribution at both wholesale and retail levels are handled by a number of well-established enterprises with national networks. Even though they typically import products to supplement existing lines, these companies are ideal representations for new products looking to break into the New Zealand market (Kazemi and Courard, 2020). The reason is financial exhaustion due to exporting rates and differentiation in needs and production. The only possible outcome is investing in a subsidiary venture into the countries which will not only help the high market demand but also preference analysis for the customers upon the company (Jahanfar et al., 2018).

Strategic alliances

Strategic alliances or partnerships are very important to ensure the distribution of financial stability and expertise in a new country, but at the same time construction units would be needed for assembling different products for suitable aggregation of materials. New Zealand is good for Strategic alliance/partnership rather than Egypt. Joint venture or licensing agreements between Egyptians and foreign partners are defined by their contract, not by a specific piece of Egyptian law. Any money invested in the country can be returned to investors without permission from the government's investment authority, the General Authority for Investment and Free Zones (GAFI). Restricting foreign investors' ability to convert Egyptian money into U.S. dollars or Euros would essentially prevent capital from being returned to their home countries. Depending on mutual agreement, foreign equity in joint ventures can be as little as a few percentage points. Egyptian Law No. 8, the Investment Incentives and Guarantees Law, allows foreign investors to own any percentage, up to 100%, in projects in a wide variety of industries (Jahanfar et al., 2018).

Franchising

Franchising is always a good option, especially for manufactured products that can be easily transferred, but such strategic construction-based products may be needed in aggregate for purposes that effectively needs local construction materials and manufacturing plants. It will take between three and nine months to register a business in Egypt through the Egyptian General Authority for Investments and Free Zones (GAFI) one-stop-shop, depending on the type of business and industrial licence it needs. Over the past three decades, Egyptian franchising has grown significantly, particularly in the fast-food industry. More than 600 food and non-food franchises are currently operating in Egypt, with hundreds of individual units. More than two-thirds of them are multinational brands, according to EFDA, the Egyptian Franchise Development Association (Morgan et al., 2018). Around 20% of international brands and 30% of Egyptian franchise revenues are attributed to the U.S. market share. EFDA is Egypt's voice for the franchising business. Franchise investment is encouraged, quality control and training are encouraged, and frequent difficulties in the business are addressed. Every spring or early summer, the EFDA sponsors a local franchise show. (De-Ville et al., 2018). So, comparatively Egypt is good option for franchising,

Recommendations

Considering that Sannegen Housing Solutions' principal focus is on 3D-modelled roofing tiles in order to attract the international market, it is the most effective way to make its unique approach to roofing and drainage systems available in the target market. Because of this strategy, the only competitors they will have to contend with will be the suppliers and manufacturers of roofing materials (De-Ville et al., 2018). When compared to locally used roofing materials, Sannegen has an advantage because their products are made from recycled materials, are extremely cost-effective (costing nearly 5 percent less than the most common roofing substances used in the target local markets), and can ensure that local construction companies and individual customers will be eager to include their products in their construction plans (Jahanfar et al., 2018). Additionally, Sannegen's green roofing materials are specially engineered to collect rainfall and store it in a system of distinct reservoirs, which significantly outperforms the local/traditional roofing system. Their primary focus should be on a specific niche market, and this strategy will assist them in obtaining a far better position in the roofing material market (Jahanfar et al., 2018).

In order to implement the differentiation emphasis approach, the following techniques can be utilized (De-Ville et al., 2018):

  • Exporting roofing materials as single units to the foreign market, where they can be purchased and used in individual or industrial construction sites.
  • Product distribution through the use of local market vendors in exchange for a profit-sharing arrangement.
  • Partnerships with established local construction companies to employ certain roofing materials in their projects are examples of collaborative enterprises.
  • Identifying individual dealers who will sell the products in the respective local marketplaces.
  • A number of environmental project owners can be approached about the possibility of using roofing material as a sustainable and ecologically friendly choice for offices and dwellings.

Reference

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

Samiee, S. and Chirapanda, S., 2019. International marketing strategy in emerging-market exporting firms. Journal of International Marketing, 27(1), pp.20-37.

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 Sales, 1(2), pp.134-138.

Asseraf, Y. and Shoham, A., 2019. Crafting strategy for international marketing: outside-in or inside-out?. International Marketing Review.

Morgan, N.A., Feng, H. and Whitler, K.A., 2018. Marketing capabilities in international marketing. Journal of International Marketing, 26(1), pp.61-95.

Rosasco, P. and Perini, K., 2019. Selection of (green) roof systems: A sustainability-based multi-criteria analysis. Buildings, 9(5), p.134.

Manso, M., Teotónio, I., Silva, C.M. and Cruz, C.O., 2021. Green roof and green wall benefits and costs: A review of the quantitative evidence. Renewable and Sustainable Energy Reviews, 135, p.110111.

Kazemi, M. and Courard, L., 2020. Modelling thermal and humidity transfers within green roof systems: effect of rubber crumbs and volcanic gravel. Advances in Building Energy Research, pp.1-26.

Jahanfar, A., Drake, J., Sleep, B. and Gharabaghi, B., 2018. A modified FAO evapotranspiration model for refined water budget analysis for Green Roof systems. Ecological Engineering, 119, pp.45-53.

Loiola, C., Mary, W. and da Silva, L.P., 2019. Hydrological performance of modular-tray green roof systems for increasing the resilience of mega-cities to climate change. Journal of Hydrology, 573, pp.1057-1066.

De-Ville, S., Menon, M. and Stovin, V., 2018. Temporal variations in the potential hydrological performance of extensive green roof systems. Journal of Hydrology, 558, pp.564-578.

Cascone, S., 2019. Green roof design: State of the art on technology and materials. Sustainability, 11(11), p.3020.

Shafique, M., Kim, R. and Rafiq, M., 2018. Green roof benefits, opportunities and challenges–A review. Renewable and Sustainable Energy Reviews, 90, pp.757-773.

Dibb, S. and Simkin, L., 2008. Market segmentation success: making it happen!. Routledge.

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