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International Business Marketing

Contents

1 Executive Summary

2 Introduction

3 Marketing Audit

4 Marketing Objectives

5 Marketing Entry Strategy

Market Strategy

Perceptual Map

Marketing Mix

Conclusion

References

Executive Summary of Alpro 

Alpro is a UK based food production company that deals with both organic and non-organic food products. The company has non-genetically enhanced code with plant and dairy-based food products like soya milk, nutrient supplements, yogurt, protein biscuits etc. The company is looking for expanding its business in the Chinese market with an increase of greener and healthier protein sources. The main market is focused on targeting young people who are much concerned about the health and climate changes. Alpro requires joint venture to explore the market of China and then expand it for better business purpose.

Introduction to Alpro 

Alpro is a UK based food production company that deals with both organic and non-organic food products. The company has non-genetically enhanced code with plant and dairy-based food products like soya milk, nutrient supplements, yogurt, protein biscuits etc. The increasing health concerns among people have popularized the notion of veganism in their lifestyle. The increasing demand for protein-rich food has been seen in the market for quite a few years. Alpro was founded in the 1980s and managed to provide quality food products which are rich in protein and are not derived from animals like, beef, pork, chicken and fishes. Their products like veg tofu resemble the same texture and similar taste to that of beef (Pettigrew 2016). People in large numbers are severely concern for their health and company like Alpro is providing them with green and healthy food products.

The company specializes in soy-based products for vegetarian purposes with soy yogurt, soy milk which have quite a reputation in the European markets. The main reason for this to grow was also due to urbanization which led to an increase in demands of these protein food products. This concern has been seen globally among the peoples and they too are looking for these similar options. Alpro is looking for expansion in the Asian markets and China is the appealing option. The increase in vegetarian demands has increased in the markets of China. In this assessment, there will be brief analyses in the markets of China with the overall aspects of macro and micro environments, favourable and unfavourable conditions and also the future of Alpro in the Chinese food market (Bragg et al. 2018).

Marketing Audit of Alpro

The marketing audit is defining the favourable conditions and resistance that will be faced by the Alpro during marketing in the Chinese market. The macro-environment denotes to the overall situation, which could impact the functioning of the Alpro business. The macro factors are not organization controllable rather the company has to make changes with themselves in accordance with policies and guidelines of that market. The microenvironment will define the direct environment in which the Alpro business will be functioning. These environmental factors will affect the company directly and their impacts could be seen regularly.

1) Macro Environment

Political & Legal Factors

· The communist party allows foreign direct investment FDI)

· The laws of China are flexible to the labours and working class

· The production cost investment is relatively low in China and resources are abundant.

· Agriculture machinery, fruits, dairy and vegetable manufacturing have a proper and favourable structure (Davis et al. 2016).

Economic Factors

· The economy of China is the second-largest in the world.

· Availability of cheap labours.

· Big countries like the UAE, UK, Indonesia and the US have dominant foreign investors.

· The general tax charge for the business is reduced to 15 % which is relatively lower than in other markets.

Socio-Cultural Factors

· The population of China is more than 1.5 billion and is increasing every day.

· It is a great market as it contains massive consumers.

· The Chinese market is dominant of young people that demand a better lifestyle and good products.

· The literacy rate of China is 96% which reflects the amount of awareness an individual has.

Technological Factors

· China is benefitted from foreign investments and industrialization and urbanization with ample growth in technological departments.

· China is becoming leading to technological advancements (Englund et al. 2020).

Competitor Analysis

· The competition in China is quite high

· The local companies have enough customer loyalty

· Penetration in such markets will require more investment and approach to attract consumers and make them customers in the long run.

· The food market is one of the largest in China and providing a unique product is beneficiary.

Political & Legal Factors

China is being governed by a communist party and most of the control is under the ruling government. There are stable political concerns around the country. The laws for external business investment are open and favourable for foreign organization. The tax on production and manufacturing are quite to low. The air traffic control and transportation comes under strict restrictions and must be authorized. Alpro needs to consider their transportation of products to the market also the company need to regularize mass production with quality and quantity. The Alpro need to carefully go through the framework and structure of the governance in various parts of the country (Kraak et al. 2017).

Economic Factors

The GDP os China is growing because of its foreign investment policies and favourable business environments. The population and density of this country are quite high and provide cheap labour which has the ability to produce quality products. Alpro will be benefitted by the labour forces and vision it implants to achieve for the company in the coming years. The rapid development in the country is a powerful reason why foreign brand chooses as their manufacturing hub. The government has imposed a minimal tax on the production market and foodstuff to keep the prices nominal and for reach. The company will be benefitted by their pricing schemes and can easily attract market (Pulker, Scott and Pollard 2018).

Socio-Cultural Factors

China is the most populated country in terms of numbers and density. It offers a great opportunity for the companies to attract ample amount of consumers with their products. The literacy rate of China is 96 % and which contribute majorly young people who are seeking better options and selections which can make their lifestyle much better. The statistics and reports over the years mention that China is rising their poverty and the majority population is being privileged with modern needs. The concern of better product has been in demand in such areas which let the competition in the market to be high and complex (Folkvord 2019).

Technological Factors

China is leading when it comes to technological advancements. The country made its fortune through global investments by big brands for production and manufacturing. The awareness for technology is much effective among the people of China. The government has planned to provide exposure to scholars via internship to understand and learn about the latest technologies and derive useful applications. Alpro will be benefitted from the technological advancement that will be needed to mass-produce products in the market. Also, with cheaper labour and machinery it will add to a huge bonus and ROI of the company (Tobey et al. 2017).

Competition

With the presence of a huge brand in every sector, it will be tough for the company to survive without any timely updates and products. The customer base has already been made in the market by various organizations. The Alpro need to come up with tactical marketing techniques and target buyers with specific requirements. The product is an alternative source for the protein despite its better nutrition and health values many people prefer beef and pork as it has become their tradition and cultural food. Alpro, in order to outshine from the competition, must mass-produce their quality products otherwise the market is competitive and tough enough to crack (Bryan, Yeager and Hinojosa 2019 ).

2) Opportunities and Threats

Opportunities

· The new alternative protein product

· Brand establishment as a European company

· Demands for healthy food items

· Low tax in trade and business

Threats

· Already established companies.

· Hectic authorization for production and establishment.

· People’s huge inclination on beef and porks.

· Production speed and availability in regions

Opportunities

The company have ample opportunities in the market. Alpro with its notion of providing a vegetarian option of proteins is a huge unique selling point. The company is of European origins which will create quite an impact on the people of China as they value Europian products much more. The young generation of China has been inclined to much greener and healthier options for their lifestyle. The government foreign business laws and tax are in favour of the company for lesser capital investment in setups and products. Thus resulting in huge profits and ROI. The market of China is dense and company have the chance to grab this market with their products line-ups and philosophy. 

Threats

The company is in a major disadvantage from the already settled food-based companies. These companies have a loyal customer base. Some legal factors like authorization of the manufacturing and production might not suit the company’s policies. The socio-cultural food of people is mainly made out of beef and pork which might be complicated for the company. In order to market the product, the company need to initially mass produce the protein food items and make available to masses which in turn will increase the capital investment by a huge amount (Harris 2020).

Microenvironment Analysis

Strengths and Weaknesses

Strengths

· The company philosophy of providing greener and healthier alternative protein food products will help to capture huge consumer as the youth in China is looking for better healthier products.

· The company holds a good reputation in the European market and a wide variety of food items that provide protein in huge amount.

· The exclusive products line-ups have the ability to attract premium consumers.

Weaknesses

· Alpro is weak in mass production when it comes to the density and population of China.

· The company has only focused their food products based only on soya.

· The network reaches out and communication of the company is not at par or standard sophistication level (Hanks, Just and Brumberg 2016).

Marketing Objectives

The aim of the company Alpro is to expand in the market of China. The main philosophy that will be carried out by the company will provide high protein food sources which are greener and healthier with the alternative of beef and porks. 

Market Entry Strategy

The company need to broadly understand the scope of penetration which can affect the current market. Understanding the macro and microenvironment factors that will affect the current market strategies will lead to better decision making. With given circumstances and environmental factors, the company need to focus on the ways in which it can focus on young generations with minimal effort. The most tactical approach for the company will be to joint venture with already established companies that have a reputation in terms of quality and elegance. This approach will teach the Alpro around the basics and fundamentals of the market they are heading in with the appealing notion of healthier and greener food products (Ramirez et al. 2017).

Marketing Strategy

Segmentation, Targeting, and Positioning

The young people of China are getting more and more aware of their health and climate. The markets of China have seen a quite jump in the health and fitness areas. The areas where it most impacted where the 61 per cent gain in the dairy products, RTD soy milk by 63 per cent which accommodates to favourable likeliness towards alternative protein sources. Through psychographics of China, the company must segment their products as an impactful brand which delivers greener and healthier products. The most beneficial category to focus on will be the young people of China which are independent and capable enough to buy such products. Alpro has an opportunity to be a unique brand which separates from others by providing essential nutrients and protein items that will be the best alternative to the meat (Išoraitė 2016).

Perceptual Map

Healthy

Almonds

Cashews

Walnuts

Soya Milk

Yogurt

Cheese/Milk

Meat Tofu

Mayonnaise

Eggs

Fish

Chicken

Pork/Beef

Unhealthy

Marketing Mix

Product

Alpro company specializes in providing high quantity protein soy-based food products. The majority of sales comes from soya milk and dairy products derived from it. The people demand a much healthier option in the market which is scarce. The products like soya tofu, soya milk and protein biscuit show immense potential in the market of China. The company has to adapt according to market situations and government policies for minimal complications in the product distribution. The products need to be produced in bulk amount as compared to that of Europe, the production capacity and capability must be high for distribution of the products in every potential market of the China (Blut, Teller and Floh 2018). 

Pricing

The material pricing is a dominant factor of choosing a particular product, the company can competitively put prices near to their competitors for creating options for the buyers and then expand their product ranges. Alpro is not at the liberty of charging a premium on their food products as the competition is high and penetration capability seems weak. The company must price their dairy products between or near the average prices of local dairy products (Ismail et al. 2018).

Promotion

 Alpro has the potential to change the food industry in China but all it needs is better advertising of the products and also better reach for the masses. The company must solely focus on producing and making accessible in local markets where the population of youth is quite high. The strong point of proving greener and healthier protein food products can be an appealing tagline for making consumers to customers. The company must hold campaigns with their joint venture partnership to spread awareness on health and climate change via the consumption of meat products (Marsuki et al. 2019).

Place

China is dense and populated country but most of its population lives near the east coast of China near metropolitan cities. Alpro must build their strategy of focusing on the young market and must have cleared permit to mass-produce and distribute products in every potential market of China. Through a joint venture, the company can learn the basic and ethics of Chinese markets. This partnership has the potential to explore the markets at a much more sophisticated level. The product lineups could also be placed nearer to the markets of beef and pork for better display of concerns of health by a brand, which will surely attract people to have the option for consideration (Sheraj 2017).

Conclusion on Alternative Protein Products

Alpro is a UK based food production company that deals with both organic and non-organic food products. The company has non-genetically enhanced code with plant and dairy-based food products like soya milk, nutrient supplements, yogurt, protein biscuits etc. The aim of the company Alpro is to expand in the market of China. The main philosophy that will be carried out by the company will provide high protein food sources which are greener and healthier with the alternative of beef and porks. The market of China has a lot of potentials to establish a food company that could provide a greener and healthier options for protein which will be favoured by the young people. The foreign investment policies are favourable in the market and the taxes and duties are quite low as compared with other countries. The company needs to face the issue of mass production like never before and must follow the strict distribution and production guidelines of the market. The joint venture is an optimum solution for the company to penetrate the complex market and understand the basics and ethics of it. The products like soya milk and soy-based food products are a good option as an alternative protein source instead of beef and pork and its potential market displays its increasing demands.

Reference List for Alternative Protein Products

Blut, M. Teller, C. and Floh, A. 2018. Testing retail marketing-mix effects on patronage: A meta-analysis. Journal of Retailing, 94(2), pp. 113-135.

Bragg, M. A. Roberto, C. A. Harris, J. L. Brownell, K. D. and Elbel, B. 2018. Marketing food and beverages to youth through sports. Journal of Adolescent Health, 62(1), pp. 5-13.

Bryan, C. J. Yeager, D. S. and Hinojosa, C. P. 2019. A values-alignment intervention protects adolescents from the effects of food marketing. Nature human behaviour, 3(6), pp. 596-603.

Davis, E. Wojtanowski, A. Weiss, S. Foster, G. Karpyn, A. and Glanz, K. 2016. Employee and customer reactions to a healthy in-store marketing intervention in supermarkets. J Food Res, 5(1), pp. 107-1113.

Englund, T. R. Zhou, M. Hedrick, V. E. and Kraak, V. I. 2020. How Branded Marketing and Media Campaigns Can Support a Healthy Diet and Food Well-Being for Americans: Evidence for 13 Campaigns in the United States. Journal of nutrition education and behaviour, 52(1), pp. 87-95.

Folkvord, F. 2019. The Psychology of Food Marketing and Overeating. London: Routledge.

Hanks, A. S. Just, D. R. and Brumberg, A. 2016. Marketing vegetables in elementary school cafeterias to increase uptake. Pediatrics, 138(2), pp. 25-72.

Harris, J. L. 2020. Targeted Food Marketing to Black and Hispanic Consumers: The Tobacco Playbook. American Journal of Public Health, 110(3), pp. 271-272.

Ismail, M. Zainol, F. A. Daud, W. N. W. Rashid, N. and Afthanorhan, A. 2018. Application of Entrepreneurial Marketing to the Marketing Mix: Why it Matters to SMEs in Malaysia?. International Journal of Academic Research in Business and Social Sciences, 8(12), pp. 788-878.

Išoraitė, M. 2016. Marketing mix theoretical aspects. International journal of research granthaalayah, 4(6), pp. 25-37.

Kraak, V. I. Englund, T. Misyak, S. and Serrano, E. L. 2017. A novel marketing mix and choice architecture framework to nudge restaurant customers toward healthy food environments to reduce obesity in the United States. Obesity Reviews, 18(8), pp. 852-868.

Marsuki, R. K. Syah, T. Y. R. Indradewa, R. and Pusaka, S. 2019. Implementation Marketing Mix Strategy in the New Frozen Food Business: Nugget Duck-Duckan. Journal of Multidisciplinary Academic, 3(3), pp. 6-10.

Pettigrew, S. 2016. Pleasure: an under-utilised ‘P’in social marketing for healthy eating. Appetite, 104(1), pp. 60-69.

Pulker, C. E. Scott, J. A. and Pollard, C. M. 2018. Ultra-processed family foods in Australia: nutrition claims, health claims and marketing techniques. Public health nutrition, 21(1), pp. 38-48.

Ramirez, A. S. Rios, L. K. D. Valdez, Z. Estrada, E. and Ruiz, A. 2017. Bringing produce to the people: implementing a social marketing food access intervention in rural food deserts. Journal of nutrition education and behavior, 49(2), pp. 166-174.

Sheraj, S. 2017. A Comparative Analysis of the Marketing Mix of KFC in China and Bangladesh. International Journal of Science and Business, 1(2), pp. 78-87.

Tobey, L. N. Schrumpf, E. Johnson, T. Mouzong, C. Veith, R. M. Braverman, M. T. Wong, S. S. and Manore, M. M. 2017. Can healthy recipes change eating behaviors? The Food Hero social marketing campaign recipe project experience and evaluation. Journal of Nutrition Education and Behavior, 49(1), pp. 79-82.

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