International Marketing
Drawing on your understanding of international marketing topics, you are required to produce a report of
no more than 3000 words to fulfill the following brief.
Prepare an outline marketing plan for a foreign food or drink product or brand for entry to the UK market
(100% of marks)
The foreign food or drink product or brand must not be currently available in the UK. The onus is on the
student to ensure that the selected item is not available.
Please note:
The selected product or brand must be suitable for stocking in a supermarket or similar outlet.
Products or brands which is available via direct retail outlets are excluded (eg Dicos)
Assessment Guidelines:
- Reasons for choosing selected product 5%
- Justification and evaluation of selected target country 15%
- Justification and evaluation of selected target market 15%
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- Suitability of proposals including market entry method and marketing mix recommendations 40%
- Appearance and layout of report 10%
- Overall impression especially understanding of international marketing concepts and techniques
15%
International Marketing
Company Profile
Arcadie is a renowned fair-trade retail chain of stores founded in France and specializing
in production of aromatic and medicinal plants and species. It was established in 1950 by a
French homophile organization. They offer an ever-increasing amount of classic and emerging
brands that cover a broad range of product categories including organic, biodynamic and fair-
trade products. Currently, it is one of the leading chains of aromatic and medicinal plants and
species in France and other countries around the world offering organically produced and
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packaged spices and herbs. More people currently prefer organic products as compared to
conventional brands of enhancing beauty and reducing the ageing effects (Renfrow, 2009, p. 24).
Currently, Arcadie does not have an outlet store within London or UK. Customers willing to buy
Arcadie products can only do so online which may be time consuming since it involves shipping
of the products. Arcadie as a renowned cosmetics products company in the world has a
substantial client base within UK. Customers have been ordering products online, and the
demand has been on the rise in the recent past. This has necessitated plans for the opening of a
Arcadie Store in London to serve the UK customers more effectively. The London store will also
act as a basis for further expansion within the UK market in the near future.
Marketing Objectives
- To design market penetration strategies for Arcadie products in London
- To increase awareness of Arcadie products by 40 percent by the end of the first year of
market entry - To establish a substantial customer base by 40 percent by the end of the first year of
market entry - To build capacity and capitalize on brand equity for differentiation
- To promote customer engagement and develop a strong relationship to enhance customer
loyalty by 20 percent
Market Analysis
Despite the ongoing economic downturn and gloom that has adversely hit most
households in the UK in the recent years, survey reports indicate that spending on health and
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cosmetics have continued to observe a year-on-year increase since 2008. The total market value
in the past five years has consequently risen by about 26 percent (Research, 2013, n.p). Another
interesting fact is that many consumers now consider cosmetic products to be essential, everyday
items. This has in turn boosted the spending within this market in UK in the recent years and
analysts project that the trend is likely to continue in coming years. Moreover, the market is also
noted to have remained noticeably unaffected by trends towards the discount and value items,
one that has impacted other market sectors like clothing by eroding market value to extreme
extent, with buyers increasingly on the watch out to obtain products for the cheapest cost
possible due to looming financial constraints. Additionally, the interest in natural and ethical
cosmetics, luxury brands have played a crucial role in the striving market. In this regard,
development and introduction of new products has remained a key feature within the industry,
with companies and retailers continuously vying to tempt consumers through new introductions
and variants (Research, 2013, n.p).
Recently, as Cervellon and Shammas (2013, p. 90) note the trends have focused on
skincare with a considerable marketing activities and media attention undertaken to highlight the
need of maintaining healthy skin and complexion as well as prolonging the youthful appearance.
Again, premium anti-aging items and organic skincare remedies have equally continued to enjoy
growth in recent years. About 60 percent of 25 to 39 years olds are buying a mixture of organic
and premium products (Research, 2013, n.p). This reflects the rising disposable income that this
bracket are earning and are willing to spend on their health and cosmetics products.
Major Competitors and Market Trends
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The conventional cosmetics brands that enjoy the highest penetration are also supported
heavily with advertising. These include Rimmel, Boots No 7, Maybelline, L’Oreal Paris, and
Avon. Another reason for the high penetration of these brands is the high availability and the fact
that they are used by women across all ages. Most other cosmetics brands such as Collection
2000, Revlon, Lancome and Clarins are skewed towards a particular age group and as such fail
to connect with ladies across the board (Research, 2013, n.p). Women under 24 years are more
inclined to go for the cheaper brands such as Collection 20000, Barry M, and Rimmel. The low-
price points allow this group to indulge a love of fashion shade without pressure on their pockets
(Cervellon and Shammas, 2013, p. 91). Women over 55 women more likely buy premium brands
such as Lancome, Clarins, and Estee lauder, which has a strong foundation around the anti-aging
products. Most ladies choose cosmetic that is designed to enhance their natural colouring, rather
than one that are meant to be fashionable. Majority prefer to trend in the middle ground just like
in fashion and clothing rather than draw attention everywhere. Most 25-39 year olds will look for
staying power, and good coverage most probably reflecting their busy lives with careers and lack
of time to keep applying make-up throughout the day.
Another emerging trend is on anti-aging skincare products, which continue to enjoy
increased investment through product innovation. With the UK’s aging population and the
increased preference of organic products, the demand for organic beauty products segment will
continue to enjoy increased demand especially on premium and preventative products. Market
reports show that the growth in premium anti-ageing consumption is responsible for the overall
boost in sales within the sector with a 6 percent year-on-year increase across the anti-ageing
category over the past year (Cervellon and Shammas, 2013, p. 92). This is also linked to the view
that the aging population is also a category with the largest disposable income and the rise in
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media attention directed towards the significance of maintaining the youthful appearance for as
long as it is possible. Within the anti-ageing sector, there has been another growing trend, the
preventative treatments. The preventative products are targeting younger age groups especially
younger adults aged 25 to 34 years and the pre-mid-lifers between ages 35 and 44 years
(Research, 2013, n.p). This growing proportion is seeking preventive skincare products to avoid
premature ageing. Consumer behaviour when purchasing health and cosmetics products depend
generally on what they want or need to buy at the time. With organic products, the idea is that
they are able to give a good outcome without risks of any health risks posed by most
conventional products. Market reports have also revealed that very few will go for conventional
products when organic options are available and have the potential for the same outcome.
Target Audience
The marketing will target women of ages from 18 to 65 years and men ages 18 to 65
years. The two groups constitute the largest proportion of customers for health and cosmetics
products.
Target Products
The Arcadie products that are to be introduced are to be introduced are organic,
biodynamic, and fair-trade products including species, dried mushrooms, teas, herbs, and natural
aromas. The spice category consist of garlic, saffron, pepper, tomato, cloves, different mixtures
of pizzas, and stinging nettle while mushroom categories consist of chanterelles, morels, and
trompette de la mort (Renfrow, 2009, p. 22). These products are currently only available in the
UK through online channels, which involve shipping (Research, 2013, n.p). This may take time
and considering the high competition with other recognized brands in the market customers
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might not be willing to undergo the process of online buying. The UK market is dominated by
several other brands that are available in many retail outlets (Cervellon and Shammas, 2013, p.
95). Customers willing to buy Arcadie products have to wait for shipment arrangements, which
may take time. With an outlet or more within UK, the customers of Arcadie who have been
experiencing challenges will be pleased to start buying from the stores.
Surveys have shown that more people currently prefer organic products as compared to
conventional brands. In addition, Arcadie products are quite competitive since it is a renowned
brand across the globe and recognized for high quality and other benefits that the company offers
to their customers. Unlike other brands in the UK market that are not very generous with their
customers even in terms of discounts, Arcadie customers can enjoy a wide range of benefits and
discounts by buying the products or being loyal to the company through their loyalty program.
This program offers clients with special products, all-access pass to personalized products, and
exclusive information. The Cosmetics Insider program in Arcadie stores offers clients with
exclusive gifts, early access to selected products, and event invitations (Renfrow, 2009, p. 24).
PEST Analysis of the UK market
Political Factors
The major political factors affecting the cosmetics business is the one on Regulation on
cosmetic intervention. That seeks to promote high-quality care and empowered public through
information. It also provides for an ethical framework within which cosmetic companies should
operate (Research, 2013, n.p). These regulations directly affect the company’s UK operations
and are likely to shape the way business is conducted.
Economic Factors
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The global economic meltdown has equally put the economy in the UK into a deep
recession. The deficit ratio on the GDP has, for instance, reached 13 percent in the UK arousing
increasingly more fear on the policy makers and investors. Numerous jobs have also been lost in
turn jeopardizing people’s purchasing power. The changing trends in the buying behaviour of
consumers, where people are not willing to spend on the less essential goods, has a negative
impact on the overall purchasing power of customers (Research, 2013, n.p). However, the
cosmetics industry is not adversely affected by this trend although effective measures should be
put in place to cushion the company of any potential changes in market trends.
Social Factors
Various cultural studies have demonstrated that culture directly impacts the buying habits
of consumers. The emergence of the social networking platforms like Twitter has provided the
young generation with another medium of interaction. With the UK’s aging population, anti-
ageing cosmetic products continue to experience increased demand especially on premium and
preventative products. Market reports show that the growth in premium anti-ageing consumption
is responsible for the overall boost in sales within the sector with a 6 percent year-on-year
increase across the anti-ageing category over the past year appearance for as long as it is possible
(Research, 2013, n.p). This implies a business opportunity for the company.
Technological Factors
The nature of the cosmetics industry is in such a way that technology is the major
determinant of any company’s competitive edge. As such, Arcadie has strategically placed itself
as an innovation hub through continuous innovation and development of new organic products
(Research, 2013, n.p). The company has an investment substantially in research and development
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in commitment to continue developing new innovative services and products to the competitive
market.
Market Penetration Strategies
A market penetration strategy is designed to enter into new markets in this case with
existing products; Arcadie cosmetics products (Luke, 2013, p. 20). This will be achieved with
frequent messages conveying incentives and reaching out to the best potential new customers
within London. This will entail diversification of the market on the basis of the market research
within London. Gaps identified within the market such as high prices and lack of discounts and
other benefits for customers will be used against the existing companies to win the confidence of
customers to our products. By introduction of Arcadie stores in London, products will be made
available at a much cheaper price than when shipped through customer online requests.
Customers will be glad to acquire the same products, but a much lower cost and in most cases
get some other benefits in addition. The stores will stock all the products that Arcadie has to
offer ensuring customers of the convenience of not having to wait for products to be shipped.
Marketing Strategy
Understand Consumers
This helps the company to identify the unmet needs of consumers and hence come up
with a product that will meet them. This enhances the competitive advantage of products brought
into the market (Westwood, 2013, n.p).
Analyze Market
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It is important to analyze the market as it will guide the company in learning of the levels
of competition which are available as well as other threats which can affect the successful
implementation of products into the market (Luke, 2013, p. 20).
Research Distribution
The products of a company cannot be placed anywhere in any market. It is critical that
the Arcadie conducts research on the various markets available, and identify which one will be
perfect to ensure the product thrives.
Define Marketing Mix
Marketing Mix is essential for any product. It plays a crucial role in ensuring that the product
does not fail even after it is implemented. It helps a company to avoid extra costs (Westwood,
2013, n.p).
Financial Analysis
This is important because the company will be able to choose which processes will be
affordable for the promotion of the product. Some advertisement techniques are more expensive
than others (Westwood, 2013, n.p).
Review and Revise
Once a product is taken into the market, it does not mean that it has become successful. Some
things change constantly. For example, consumer needs can change from day to day. The
company will be better placed to make changes that will ensure it flourishes (Westwood,
2013, n.p).
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Positioning Strategies
The positioning strategy will focus on brand positioning strategy, product positioning
strategy, and pricing strategy. In terms of the product positioning strategy, the marketing team
plans to focus on harmonizing all the aspects of the differentiation strategy and maximizing on
the Arcadie brand. By positioning Arcadie as a destination of choice offering a unique and
luxurious experience, the team will easily reach out to existing and potential customers with this
new message and subsequently win their loyalty.
Market positioning is about the way a firm wants their customers to perceive their
product in relation to the perception of the competitors and the marketing strategy adopted to
reach this perceptual goal (Luke, 2013, p. 21). Westwood (2013, n.p) contends that market
positioning entails giving the message about the product that we are trying to introduce as how
we plan to achieve that. Through this marketing campaign, the main aim is to positively
influence the perceptions of our customers by developing and implementing strong and
deliberate market positioning strategies. The positioning will be implemented in line with the
differentiation strategies adopted for the campaign and in relation with how our competitors are
positioning themselves.
Positioning takes three basic dimensions; relevance, and differentiation. The pricing
positioning strategy will emphasize on allowing for opportunistic situations to prove value and
prestige for the long-term relationship (Westwood, 2013, n.p).
Pricing strategies
The main pricing objectives are to maximize profits, to survive, as well as to gain the
market share. As such, the pricing strategy ought to aim at squeezing as much money from the
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sales of the tickets as possible. The price should be such that it is competitive enough in the
market and gains the firm a substantial share in the market (Luke, 2013, p. 21). Additionally,
clients will be offered discounts and other benefits and privileges, as is the case with Arcadie
products in other countries. This will also be reinforced with subtle cues to justify the brand
reputation.
Communication Strategy
The marketing strategy will use online sources as the main communication channel to
reach out to potential customers such as Twitter, Facebook, Flickr, and YouTube. This is aimed
at reaching specific targets identified as the most potential users of cosmetics products, ladies
and men between 18 and 65 years. Increased use of internet across this age group will make the
marketing campaign a great success. Other posts will be created in magazines, TV, and
Newspapers.
Conclusion
When implemented correctly, the marketing plan will by far achieve the intended
outcome of Arcadie Company penetrating into the UK market. It will also help in gaining and
maintaining new clients, as well as the existing ones. The marketing strategies offer a platform
for the company to win new customers and engage them through real-time conversations
concerning their products as well as receiving feedback about what excites the customers and
what does not. The marketing strategy will be used for the purpose of creating differentiation for
the company’s products, communication, distribution, as well as maintaining strong relationships
with the customers.
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References
Cervellon, M, & Shammas, L 2013, ‘The Value of Sustainable Luxury in Mature
Markets’, Journal Of Corporate Citizenship, 52, pp. 90-101.
Luke, K 2013, ‘5 Steps to a New Marketing Plan’, Journal Of Financial Planning, 26, 12, pp. 20-
21.
Renfrow, J 2009, ‘Cosmetics’s On the Inside at Arcadie. (cover story)’, Response, 17, 7, pp. 22-
28
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Research and, M 0007, ‘Research and Markets: Health & Cosmetics Retailing in the UK –
Verdict Market Report: Health & Cosmetics Market Expected to Grow By 2.6% in 2013,
and Increase by 3bn Between 2012 and 2017′, Business Wire (English), May, Regional
Business News.
Westwood, J 2013, How To Write A Marketing Plan, London: Kogan Page
