Market Attractiveness Analysis - Case Study Example

Market Attractiveness Report Name Institution Course Date Contents Contents 2 Introduction 2 Successful International Marketing Practitioners 3 Coca-Cola 4 Gillette 5 Cadbury 6 Unsuccessful International Marketing Practitioners 6 IKEA 7 Bic 7 Taco Bell 7 Conclusion 8 References 9 Introduction International marketing refers to the marketing that takes place beyond the borders of the country in which the product in question is produced. It involves, franchising, full direct entry, exporting or joint venture of the marketing organization into another country. International marketing therefore requires that the marketing organization develops a marketing mix for the country it intends to penetrate. The marketing organization may opt to use the marketing strategies, tools and mix that already exist in their country or formulate complex relationship strategies that will suit the country in which they market their products. These highly complex relationship strategies may include pricing, local product offerings, distribution, production and localization. These strategies may then be accompanied with customized offers and promotions. The marketing organization in the international context must ensure that the needs of the foreign countries they operate in are met (Keillor, 2013). All international marketing organizations operate within an international market environment. These are the environmental factors that affect the activities of the marketing organization in the foreign countries. The marketing organization must therefore conduct a thorough environmental analysis before entering these markets. This is because proper understanding of the international market environment is vital in the success of the international marketing organization in the foreign countries. In addition to that the practitioners of the international marketing must have a clear understanding of the principles of international marketing in order to succeed. This paper is aimed at compiling an analysis of three examples of international marketing pieces that have succeeded in the international context and another three that have failed in the same platform. Successful International Marketing Practitioners In order for a company to be successful in its international marketing endeavour it must recognize that people around the globe have different needs. As a result they need to act towards meeting the needs of these foreign markets. Although organizations which sell in the international market target the global market using consistence marketing mix it is important to understand that the different regions have different needs and as a result there may be need to change the marketing mix applied. This section of the paper will focus on Coca-Cola, Gillette and Cadbury which are countries that have succeeded in the international market. The paper will focus on the strategies applied by these companies in order for them to succeed in the international context. Coca-Cola The Coca-Cola Company is one which has achieved tremendous success over the years in the soft drinks market. The company which is based in the United States have operations in 230 more countries all over the world. In fact, statistics have it that the 80% of the company’s profits are acquired from these outside countries. The fact that the Coca-Cola products are available in many parts of the world is enough to prove that the drink is the world’s favourite drink. One may wonder how Coca-Cola was able to achieve such a position in the soft drinks industry and maintained it. The secret lies in the marketing strategy adopted by the company. The main marketing mix adopted by the company in its international marketing quest is pricing (Gillespie & Hennessey, 2011). Douglas Ivester a former chairman of the Coca-Cola Company once said that the secret behind the success of the brand is in the affordability of the product. According to Ivester the affordability of the Coca-Cola products has made it popular in many households in different parts of the world. Coca-Cola is able to produce affordable products by negotiating for lower prices with their suppliers. This is made possible by the fact that Coca-Cola is a market leader and thus has more bargaining power in the face of its suppliers. Customization of products is another international marketing principle that Coca-Cola has effectively applied in order to succeed in the international market. Coca-Cola is continuously adjusting its approach so that appropriate marketing strategies can be applied for consumers in different locations. This has seen to it that consumers will have different experiences with the brand based on their locations and preferences. In so doing Coca-Cola ensures that the demands of local tastes and cultures are met. Gillette The main focus of Gillette in penetrating the international market was on the product and product promotion. Gillette as a company knew too well that the product they were involved in had to be made attractive enough for the international market. As a result Gillette embarked on intensive market research in order to know what consumers were looking for in a shaving product. The company was able to gather that most men disliked shaving because the products available in the market for shaving caused irritation and at the same time took long for them to complete the task. As a result Gillette came up with its Gillette Mach3 which guaranteed consumers that it would only take a few strokes to complete shaving. The Gillette Mach3 was made with double blades such that there was no irritation on the skins of the users. Gillette had to make sure that the adjustments made to its products were communicated to its consumers. It was as a result of this that Gillette embarked on a worldwide product promotion of its product. The company mainly relied on television adverts to pass the information to consumers. In the adverts information was structured in a way that it appealed to the shaving habits of the locals that the adverts were run. The combination of these strategies by Gillette in an understandable manner has enabled the brand to achieve international success. This is manifested by the fact Gillette has a market share of 70% of razors in the world (Ferrell, 2010). Cadbury Cadbury is another example of an international marketing organization that has made it in the international market context. The Cadbury Dairy Milk has made it in the international context mainly due to the intense product promotion that has been conducted for the product. The brand has perfected its products by having an exceptional unique taste which consumers prefer. The Cadbury dairy Milk brand has an assorted array of products from which consumers can choose from. The company knows that the chocolates are preferred all over the world since Cadbury is the world’s leader in the chocolate industry with over 70% of the market share (Paliwoda & Thomas, 2013). As a result the promotion campaigns emphasize on encouraging the consumers to continue buying the product while at the same time luring potential customers. As a result the Cadbury Dairy milk adverts are always accompanied by slogans such as “The secret is joy” “real taste of life” and “Those who want to eat will find a reason for it.” Unsuccessful International Marketing Practitioners There are a number of organizations which have failed in their bid to enter the international market. This has mainly been caused by lack of a clear understanding of the principles of international marketing. The next part of this paper will be aimed at looking at three examples of international marketing organizations that have failed in their bid. IKEA IKEA is a furniture retail business. It was established in 1943 and is based in Sweden. The company tried to venture in international marketing by opening stores in various countries. The company started in Europe and then advanced to other continents. The reception in Asia for IKEA was not good. The company failed miserably when it started its operations in Japan. Having entered the European market IKEA adopted the same strategies used for the European market in Japan. In so doing IKEA disregarded the fact that the cultural practices in Japan are very different from those in Europe. In the same way the tendencies of the Japanese furnishing practices and lifestyle are different from those in Europe (Aarhus University, 2009). As a result they were not able to make products that would appeal to the culture of the Japanese and as a result failed. Bic The Bic brand is one that has gained international recognition. However, the brand has recently failed to understand the product positioning and one of its recent campaigns was a complete failure especially in the United States (Turpin, 2014). The “Bic for Her” campaign elicited negative reactions from consumers in the United States. The aim of the marketers at Bic were clean but the manner in which the consumers perceived the message was as though Bic was promoting male chauvinism by advocating for pens for ladies only. Taco Bell This is a fast food chain that has not made it in the Asian market as it has in other parts of the world. Taco Bell opened outlets in China that were closed later due to the poor performance they recorded. The marketers at Taco Bell failed to realize that it is a difficult task to market Mexican food in Asia which is the main specialty of Taco Bell (Garcia, 2010). Conclusion There are many factors that determine the success or failure of marketing organizations in the international context. In order for a company to be successful in the international market then it has to understand the international market environment as well as the principles of international marketing. A lack of a clear understanding of these concepts will be a sure way of failure for the organization. References Aarhus University. (2009, April 15). Ikea's Failure and Success on the Japanese Market. Retrieved April 22, 2015, from pure.au.dk/portal/files/7566/Afhandlinger Ferrell, W. (2010). Marketing. Boston: Cengage Learning. Garcia, C. R. (2010, June 30). Can Taco Bell thrive this time? Retrieved April 22, 2015, from The Korea Times: http://www.koreatimes.co.kr/www/news/biz/2013/07/602_68552.html Gillespie, K., & Hennessey, D. (2011). Global Marketing. Boston: Cengage Learning. Keillor, B. (2013). Understanding the Global Market: Navigating the International Business Environment: Navigating the International Business Environment. Santa Barbara: ABC-CLIO. Paliwoda, S., & Thomas, M. (2013). International Marketing. London: Routledge. Turpin, D. (2014, March 1). The No. 1 Reason Why Brand Extensions Fail. Retrieved April 22, 2015, from IMD: http://www.imd.org/research/challenges/TC016-14-why-brand-extensions-fail-dominique-turpin.cfm Read More