The paper “ Innocent Drinks Global Marketing - Indirect Exporting, Product, Price, Place, Promotion Mix, and Global Management Structure” is a brilliant variant of case study on marketing. The number and size of companies operating in a global marketing perspective have increased in the recent past. However, many of them have tried to enter into the international market in vain. Hundreds have closed down their international market operations soon after launching their penetration. This paper provides a global marketing plan for Innocent Drinks, which can be applied by many companies with the objective of operating in an international market.
The literature addresses issues such as entry strategies, PESTLE analysis, and international operational management strategies. Choosing the mode of entry of an organization is a crucial function of an international marketing manager. A poorly selected market entry will always let fail all the other aspects of marketing, despite how appropriate and effective they can be. In selecting a market entry strategy, there are five key factors to consider. These factors include the company’ s characteristics, market size, government regulation, competitive environment, risks in the market, and infrastructure (Cateora & Graham 2010).
There are three main marketing entry strategies including direct exporting, indirect exporting, and production in a foreign country. Direct exporting is an entry strategy where a company directly performs exporting functions without delegating. Such a company establishes a fully functional exporting department with units such as market contact, market research, distribution, and pricing, among others. This is a risky marketing entry strategy, but most effective in increasing sales, enhancing control, and first-hand market information. This mode of entry is appropriate for companies with sufficient financial and human resources.
In addition, the size of the market should be sufficient to promote large scale production, which enhances efficiency. Government policies such as the quota system, tariffs, and restrictive importation, may hinder the application of direct exporting. To successfully implement direct exporting strategy, Innocent Drinks Company may adopt either, or a combination of four may ways. First, the company may send sales representatives in the foreign market. These representatives will act on behalf of the company in establishing contacts and negotiating sales contracts. Secondly, the company can select a local representative to negotiate on its behalf and contact customers in the local market.
Thirdly, independent local distributors, who buy goods from the company and sell them in their local market, can effectively be applied. Lastly, Innocent Drinks can establish a fully owned subsidiary in a foreign market, to control its operation in the market. Indirect exportingThis strategy is considered to be of the lowest risk as compared to others. This is the simplest entry strategy in the international market. In this case, the company’ s participation in the international market is limited.
There are three means through which a company can undertake an indirect export entry strategy. First, a company may sell its products in a local market to another company, which resells the products in a foreign market through exportation (Cateora & Graham 2010). The producing company does not in any way participate in international marketing. Secondly, a company can approach an international company with operational offices and units in the global market. The international company through its distributors undertakes marketing functions in the foreign market. Thirdly, a company may select an export management company located within the local market as the producing company.
The producing company concentrates on the production of goods and services, while the export management company undertakes exportation function independently.