MG628 International Marketing Management Assignment Sample

MG628 International Marketing Management Assignment

Introduction of Market Entry Strategy of Graze

The report is made to discuss the market entry strategy of Graze which is exploring an option of entering into Aldi which is the leading supermarket chain in Germany. The report will critically evaluate on reason and evidence of graze entering the Aldi supermarket chain and the consumer and retail environment in the country. The key feature of the report will highlight international trends and their submission in the local environment. The report will highlight two global trends relevant to graze and the brand's marketing mix (Amin and Smith, I., 2018). To achieve the objectives of the report country-specific communications will be discussed based on segmentation, target, positioning, culturally-specific requirements and needs, and marketing mix, particularly focusing on marketing channels and social media communications.

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Market Entry Strategy

Leading supermarket chain Aldi has exclusive rights to sell Graze products

Aldi is the ordinary corporation brand name of 2 Germany international family-owned price cut supermarket chains functioning over 11,000 stores in more than 19 countries. This supermarket is not a characteristic chain grocery store. The company focuses on quantity purchasing of the products consumers require most, so prices stay low and individuals are for no reason left penetrating for what they require. The case company Graze is focusing on entering this leading supermarket chain in Germany so that they can increase their sales at low cost and can gain competitive advantages (Kotabe and Helsen, 2022). ALDI also present most goods in its provisions in their unique shipping containers, economy major resources, and time and ensures effectiveness and excellence. The brand Graze was founded in 2008 by Graham Bosher and operates in London, UK. The corporation has around 600 workers and is a Subsidiary Corporation of Unilever. The corporation offers nearly 98 snacks with high protein low calories, low sodium, and many other health benefits which include seeds and nuts, crackers, dried fruit, dips and dippers, and other snacks. The business sells its snack boxes to clientele in the UK and the company is planning to enter its product in the market of Germany with the leading supermarket chain Aldi.

Figure 1 Unilever’s Graze adds to Crunch snack line with two new flavours

(Source: FoodBev Media Ltd, 2022)

Critically appraise the above option. (How, why – Reasons and evidence)

As the major brand manufacturer, Unilever’s subsidiary Graze is now focusing to enter the Aldi supermarket chain in German product and price ranges. Aldi has operated its doors for the main brand manufacturer for a while now: the tough discounter hoping that this will assist in the increased opposition and attract a wider audience (Watson et. al. 2018). Germany’s most popular thrilling customer good brands will now hit Aldi’s shelves. It is extremely improbable these will ground the stores to be infested with individuals, but it is still an extraordinary turn of events. Unilever had forever resisted Aldi’s approach and even explicitly complain about the price corrosion caused by discounters.

Consumer and retail environment

The German public is wealthy and present trends point to sustained development and enlargement. The country’s customers are more and more following unusual value-for-money concepts. The characteristic to German customer is as evenly accessible to the discount retailer as to set up brand names across various product segments. As the major customer group with the maximum purchase power, the age group of customers aged 49+ is prove primarily attractive as a target group. Individuals of this group are in good health, more quality conscious, and more demanding than their parents at the same age. Flexible hours, E-commerce, and innovative sales services help improve demand (Rottig, et. al. 2019). Consumer-friendly and modern structures carry both volume trade and niche suppliers comparable. Consumer buying tendency levels are also up with customer orders now being met with equivalent consumption opportunities in the food service, retail, and tourism sectors. Enlarged enthusiasm to relate is also the consequence of enhanced income expectations among the trade public. Retail flexibility and service are very important in both the offline and online markets. Consumers are enhanced informed than ever before, and with the growth of the strong e-commerce business, people can expediently switch retailers with the click of a button. This can be seen in the elevated percentage of individuals who switch retailers when not content (Baker, et. al. 2020). Millennials are particularly prone to switch from motionless retailers to their online counterparts.

Global trends and their application in the local environment

TWO key global trends and their relevance to Graze’s brand proposition

Conversational Marketing is a Must:

Conversational marketing is advertising that engages consumers through dialogue that put the concern on communications with the consumers through cooperative communications in concurrent conversations. This type of marketing is a procedure of interacting with website companies and converting leads via dialogue-driven performance (Nunes et. al. 2020. For production, like food chain manufacturing, some chat bots are especially fun. In order to ensure smooth functionality, a chatbot would require the ammunition store it requires. A conversational chatbot can keep up with the customer's interaction and conversation. It can also create and remove doubts, as well as carry out order duties with a guarantee of 100% accuracy. It can penetrate the company’s email list and attract an existing client base with discounts, new offers, and other deals. The customers can order to get a product through multiple repeat trades; they can also work on a social media platform and even on websites (Niedermeier, et. al. 2021). It helps the company to exaggerate sales and get a better conversation rate. It also assists in speeding up the client service process. Chatbots are more and more becoming popular – 68% of users have a preference over another channel of communication as they give immediate and precise responses 24/7.

Globalization of food supply chains:

More food is being traded crossways borders than ever before. The companies are starving for expansion and are looking to produce revenue in overseas markets. The companies are fronting from low-cost suppliers around the globe. Globalization is growing quality risks and food safety, and is creating traceability and organizes over supply chains more demanding. The Global food supply chain is accountable for processing, transporting, and advertising global food. It has made this procedure more practicable in today’s economy. worldwide food chains are accountable for carrying sufficient amounts of superior foods from across the globe to feed one out of every 9 people that live on this globe. Globalization brings a massive amount of profit to those that it affects within the food supply chain. This also brings more superior food that is readily available to several and allows stride in bettering agricultural technique and transport all through the globe.

Discuss how distant that trend seems to be rising or already significant

Globalization brings a multitude of profits to those that affects inside the food supply chain. It also brings more superior foods that are enthusiastically available to many and allow stride in better-undeveloped technique and transport all through the globe. Conversational marketing allows the brand to join with potential leaders more naturally without interrupting their knowledge with barriers (Moguluwa, 2022). By engaging in conversation with the lead, the company can gradually move them through the sales channel while also attaining valuable insight along the way.

Country-Specific Communications

Segmentation, Target, and Positioning (STP)

Segmentation: The growth of Graze's marketing strategy requires identifying the segmentation on the basis of Aldi in Germany to appreciate the detailed buying behavior of customers. The prospect, needs, and buying activities of customers are varied and depend on many-side factors which include age, gender, income, value, way of life, and many more. The Graze can use one or new of this segmentation strategy to prefer the right market segments and develops an efficient marketing strategy in the leading supermarket chain, Aldi. The geographic segmentation divides the marketplace according to area, like cities, countries, and region.

Targeting: Graze should sensibly prefer the target segments whose expectations and needs match the firm’s possessions and capabilities. The targeting can be completed by evaluating the business charisma and growth potential of recognized segments (DeSarbo, et al. 2017. This segmentation is based on the appropriate size, concrete difference, estimated profits, and easily accessible segments.

Graze require setting an apparent position statement that might produce a positive image of the offered snack meal product in the customers' mind. The case corporation can follow the subsequent steps in Aldi supermarket to build up an efficient positioning strategy by measuring its brand standard, needs, and wants of the Germany market and the brand’s major competitor.

Any culturally-specific needs and requirements

In the period of globalization, the marketplace provides customers with a widespread and varied palette of resources from which they can build their identity. Germany has a rich cultural history dating back over a millennium, so it is not speculated that the country’s culinary culture is complex and rich. In element due to its historically strong wealth and global presence, German foods have been extensively exported globally. German concession supermarket stores are usually cheaper than other countries. German supermarkets offer a good assortment of meats, dairy products, snacks, groceries, and vegetarian foods. In the discounter, customers can often find offers at the lowest prices, which decreases the costs of living in Germany (Spiekermann, 2009). There is an essential assortment of veggies and fruit; a self-service market chain for bread and baking supplies, and a range of dairy products, cold cuts baked goods and more. Often, consumer service leaves much to be needed. At peak periods, concession supermarkets are frequently crowded and have long lines shaped in front of the cash registers.

Outline the marketing mix focusing on marketing channels

Product: Aldi claims to offer reasonably priced food products that are of the same superiority as other branded products. This can help Graze expand its product in the leading supermarket chain and make its product recognized in the German market.

Price: Aldi has a well-built customer base because of the cheap price and quality that it offers for its brand products which are not available from the competitors. The Graze can extend its affordable product in this supermarket and increase its sales. The company can also use a unit pricing strategy for foodstuff so that the customers can easily evaluate.

Place: Aldi supermarket has more than 10,000 provisions in 19 countries and approximately a new store open every week in Britain. This can help Graze expand its business in the global market with the strong brand value of a leading supermarket chain.

Graze's complex marketing model is completely diverse from what they offer on their website. The first box is part price and for that, the purchaser has to fill up the details and then give it to the graze box. The contribution is for a weekly interval, month, or more and can be altered. The company also offers freebies to prospective customers and the company also generates attention around the place of work and gets people talking (Khan, 2014). The company by offering tasty snacks and great offers incentivized its customers to get online and talk about it beyond the office walls.

Social media communications

Aldi is the leading private supermarket chain in Germany. The company is a discount superstore chain that pays close concentration to customer relations, cost control, technical advancements, and expansion.

In its digital advertising initiative, the firm uses Youtube, Twitter, Facebook, and Google social media platforms to reach its customers rapidly and in real-time. Graze is a snack company that provides healthy snacks in thin cardboard payment boxes that have become a usual match in homes, offices, and supermarkets. The firm maintains a fun and interactive social media occurrence and keeps a lively blog with nutrition tips and recipes, to create trade partnerships and direct-mailing offers. The company has used about every channel obtainable to maximum effect. the most inspiring of all is its reliable and attractive use of email marketing to keep customers coming back to its goods (Schivinski and Dabrowski, 2016). Email marketing is the most efficient marketing channel, and the brand has put a lot of instance and concentration into making sure that things work. The company also uses information about its customer's habits and past purchases to modify its email marketing and attract them to buy replicate boxes.

Conclusions

The report is made to discuss the market entry strategy of Graze which is exploring an option of entering into Aldi which is the leading supermarket chain in Germany. The report will critically evaluate on reason and evidence of graze entering the Aldi supermarket chain and the consumer and retail environment in the country. The key feature of the report will highlight international trends and their purpose in the local environment. The report will highlight two global trends relevant to graze and the brand's marketing mix. To achieve the objectives of the report country-specific communications will be discussed based on segmentation, target, and positioning, culturally-specific requirements and needs, and marketing mix, particularly focusing on marketing channels and social media communications.

References

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4. FoodBev Media Ltd, 2022. Unilever’s Graze adds to Crunch snack line with two new flavours(Online). < https://www.foodbev.com/news/unilevers-graze-adds-to-crunch-snack-line-with-two-new-flavours/> accessed on 20.12.2022.
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