Marketing management at international level is a practice for the sale of goods and services from one country to another keeping in mind the rules and regulations. The report will state the Irn- Bru soft drink products that going to sell its products in the market of Austria through supermarket chain. The report will state the modes of entry through which the company can enter to Austria market. The report will cover global trends in technology and sustainability that help to increase Irn Bru`s brand proposition. The report will also cover the segmentation, target and positioning strategy, and marketing channels to promote products in new markets to engage more customers.
Main Body
Market Entry Strategy
In today`s time expanding a business is an important requirement for any company. The company wants to sell its Irn-Bru products in the form of physical stores in Austria. For this, the company has to enter into the markets of Austria. There are several ways to enter as follows:
Joint Venture- To enter into a new market Irn Bru products can enter by forming a joint venture with Austria Company to sell products in the global market. The company reduces the risk of entering into a new market by creating a joint venture. In this, both companies agree to use resources to achieve the objectives of the company. In this mode, there is more capacity to earn revenue and each company is responsible for sharing profits, loss and cost.
Partnership- In this market entry strategy a company can enter into a new market by making a partnership or alliance with the existing company of a target market. This mode of entry provides an opportunity for the company to reach a new market and aid in gaining new customers (Wu and Wang, 2021). Partnership with a well-known company provides a good customer base and market knowledge with the help of existing distribution channels.
Greenfield Investment- It is a dynamic market strategy to enter a new market. In this, the company purchases land and resources in another country to run a business internationally and hires employees to operate the business. In this mode, the company has to follow government regulations of the new market. There is a high risk and cost involved in this mode, which is advantageous for established companies.
Merger and Takeover- In this entry mode, the company purchases a local business in the Austria market and can gain access to the market and sales. It allows the company to take over the existing business with technology and controls. In this mode, the company has to invest a huge amount of capital as an investment (Loehde, et al., 2020). This mode is used by companies who have enough market knowledge and clear strategies. This entry mode aids a company to achieve a huge footmark in a foreign market within less time.
Franchising- In this mode, the franchisor gives the right to the franchisee to sell their product and grants the right to use the brand name. The franchisee pays a fee or commission and part of the revenue to the franchisor.
Acquisition- Acquisition is an international entry mode in which a company can gain control over other foreign companies by buying its stock and assets. It is a joint agreement between the acquiring and foreign company where the target company submit assets to the acquiring company. Acquisition aids the company to increase its revenue by increasing market reach and the customer base. The acquisition increases market power, access to more capital and increase competitiveness of the company.
The joint venture is an appropriate entry mode for the Company to sell Irn Bru products in the foreign market of Austria because with the help of this the company easily access to new market with greater resources in terms of technology and finance and can increase revenue for the company.
Identifying global trends and their application within the local environment
The global trends assist the company in understanding the troublemaking forces that faces by the company and guiding them to pull the benefits of the opportunity. The global trend for the Company of Irn Bru products in its supermarket business is digitalization and technology. The use of technology is increasing in every field of business. In the Irn Bru supermarket business the trend of using technology increases to enhance the shopping experience of the customers. This trend is relevant for Irn Bru because it helps the company in effective inventory management and other related processes (Matyushok et al., 2021). The company use technology to record stock to improve the supply chain. To reduce waste and utilize energy the supermarket uses the Internet of Things. Technology use is also important for Irn Bru because nowadays all payments are made in digital form and customers prefer this mode of payment.
In future, the pressure will increase on the soft drinks offering company, therefore smart technologies become essential for the production of drinks, for detecting products of the supply chain and for marketing products. The use of technology helps the Irn-Bru soft drink business to grow vastly and rapidly. Automation and Internet of Things technology aid drink manufacturers and bring efficiency by reducing costs. The company should use technology to promote the Irn-Bru soft drinks in the Austria market, it help the company to make a footprint in new markets by engaging customers. The use of technology helps to connect the right person at the right time.
The other global trend is sustainability. Sustainability means maintaining and building the policy for businesses that restrict the exhaustion of natural resources so that the resources available for a long period. This trend is relevant for Irn Bru because, in the supermarket business, there is a lot of wastage of food, energy and water. Sustainability aids the Irn Bru in reducing wastage of food, water and energy. The company brings sustainability by using eco-friendly products. The uses of sustainable practices by Irn Bru assist the company in increasing its brand proposition because, in today`s time, the customers are eco-conscious they give priority to environmentally friendly products (Coelho et al., 2020). The consumer is keen to pay more for this kind of product as a result it increases revenue and the brand of the company. The trend is emerging because the company is switching to better options for less emission while delivering their products from the supermarket. This sustainability trend is important for the company and for this the Irn Bru products the Company in its environmental sustainability program namely No Time to Waste taking steps to strengthen the net zero promise by recycling plastic 100% for all 500ml IRN- BRU and other Rubicon products (IRN-BRU and RUBICON packs now in 100% recycled plastic, 2024).The company should focus on serving drinks which are good for the health of the consumers because in soft drinks have a lot of sugar and nowadays consumers are very conscious about their health.
The STP strategy is essential for building a plan so that able to engage or connect new customers for the Irn-Bru products. Segmentation assists the company in accessing the customers at the right time with the relevant information. The company focuses on psychological segment such as the priorities of customer their personality traits, beliefs and values. This helps the company produce information and preferences of the targeted customer and what goods the buyer buys (Jewel and Kalam, 2020). After segmentation, the company focuses on targeting the audience. The company focus on young people aged of 18 to 29, the age group people consume soft drinks more than other age groups. To achieve the target market the company must research the Austria market to know the customer tastes and preferences related to soft drinks. In positioning the company focus on the fact that how the company communicate with the target audience for its product. For the positioning of the Irn-Bru product in the Austria market, the company use various platforms to advertise its product so the consumer is aware of the new product in the market. It also helps the company influence and builds a customer base relative to the competitors in the existing market.
Marketing mix is a strategy used by the company to make its product different from the product of its competitors in the market. In this, the company use the 4 P`s strategy like product, price, place and promotion.
Product: To engage customers in new markets the company Irn-Bru introduces its products by presenting it’s distinguish features like good for health-conscious people, fat-free and without sugar drinks. This makes the product different from its competitors and because of this, the company can attract a good customer base.
Price: The company can use various price policies for its products such as premium, penetration, Economy and Skimming pricing. The best pricing policy for Irn-Bru is penetration pricing because in this the company can capture the Austria market share by offering low prices for its products as compared to its competitors. This pricing policy aids the company in attracting customers and makes customers change their preference for current market products. This policy targets price-sensitive customers.
Place: In the marketing mix, the third one is place. In this, the company focus on places in the Austria market where the company sell its product and easily get a good customer base. The company can sell its products through supermarket stores, grocery stores and local shops where the target audience is shopping.
Promotion: The next step is promotion, it is an essential requirement in today`s time because there are several products available in the market with great substitutes. Promotion helps the company in bringing the product to the notice of the target customer (Lim and Guzmán, 2022). For this, the marketing channels play a crucial role. The marketing channel uses various tools and platforms and helps the Irn-Bru company to effectively communicate with its target audience. The marketing channel contains digital channels like social media, and websites and some offline channels like networking events and word of mouth. Through posting on social media the company can grab the attention of customers. it can be done through platforms like Facebook and Twitter. Email helps to drop messages in the subscriber's inbox regarding the promotion of the product and helps in building relations with customers. Word of mouth is best for promotion in this consumers communicate about the product and recommend it to others. These channels are effective because it is the best way to attract more customers in the new market help in easily communicating with the potential customers and also provide feedback that helps the company to improve and grab more and more customers.
To promote the Irn-Bru products in the Austria market, social media is the best platform to engage the potential customer base of the young youth. In today's time, the youth is using social media platforms like Facebook, Twitter and LinkedIn. Advertising of products on this platform helps the company to grab the attention of young people and this influences youth to try the product once and recommend it to others (Rehman, Gulzar and Aslam, 2022). Marketing through this platform engages more people. It is the best way to build a customer base. With the help of social media the Irn-Bru Company get a chance to create brand awareness among customers by explaining how the brand is different from the competitors (de Oliveira Santini et al., 2020). Also, the company must take into account the cultural-specific needs of the customers, as there are differences in the language, culture and taste of the two countries the knowledge of these factors is required to grab the customers.
Conclusion
To sum up it is concluded that international marketing management is essential to expand the market internationally. The report stated some entry modes to sell Irn Bru products in the Austria market such as joint venture, partnership and franchising. The report also covered global trends such as the use of technology and sustainability to increase the brand proposition of IrnBru products. The report contained the STP strategy to create a marketing communication plan to know the kind of customer base for the product. The report highlighted that the company use a penetration pricing policy to attract customers for the product in the market. It started some social media platforms like Facebook and Twitter to do marketing and promotion of the product.
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References
Books and Journals
Coelho, P.M., Corona, B., ten Klooster, R. and Worrell, E., 2020. Sustainability of reusable packaging–Current situation and trends. Resources, Conservation & Recycling: X, 6, p.100037.
de Oliveira Santini, F., Ladeira, W.J., Pinto, D.C., Herter, M.M., Sampaio, C.H. and Babin, B.J., 2020. Customer engagement in social media: a framework and meta-analysis. Journal of the Academy of Marketing Science, 48, pp.1211-1228.
Jewel, M.M.H. and Kalam, K.K., 2020. The Importance and Level of Adaptation of STP Strategies for Growth in Foreign Markets: In the Case of Soft Drinks Company. Asian Journal of Economics, Business and Accounting, 19(2), pp.13-23.
Lim, W.M. and Guzmán, F., 2022. How does promotion mix affect brand equity? Insights from a mixed-methods study of low involvement products. Journal of Business Research, 141, pp.175-190.
Loehde, A.S.K., Calabro, A., Torchia, M. and Kraus, S., 2020. Joint (Ad) ventures—Family firms' international entry mode choices for emerging markets. International Journal of Entrepreneurial Behavior & Research, 26(6), pp.1235-1258.
Matyushok, V., Vera Krasavina, V., Berezin, A. and Sendra García, J., 2021. The global economy in technological transformation conditions: A review of modern trends. Economic Research-Ekonomska Istraživanja, 34(1), pp.1471-1497.
Rehman, S.U., Gulzar, R. and Aslam, W., 2022. Developing the integrated marketing communication (imc) through social media (sm): the modern marketing communication approach. SAGE Open, 12(2), p.21582440221099936.
Wu, Y. and Wang, S., 2021. Sustainable market entry strategy under a supply chain environment. Sustainability, 13(6), p.3046.
Online
Global Soft Drink Concentrates Market, 2024. [Online]. Available through: <https://www.databridgemarketresearch.com/reports/global-soft-drink-concentrates-market>
IRN-BRU and RUBICON packs now in 100% recycled plastic. 2024. [Online]. Available through:https://www.agbarr.co.uk/about-us/news/irn-bru-and-rubicon-packs-now-in-100-recycled-plastic/
