Global Marketing Product Market Strategies

Question: Describe about the Global Marketing for Product Market Strategies . Answer: Introduction: In the present business environment, every organization is looking utilize the benefits of globalization in order to maintain its position in the market. Globalization has provided organizations the opportunity to achieve greater market share. Therefore, it creates direct impact on the revenue level of the organizations. In this report, the focus will be on an Australian organization namely Dick Smith Foods. The company is named after its owner Dick Smith. Over the years, the company has able to grow its revenue level largely. The unique marketing strategy of the organization has able to capture the attention of the expected customers. However, Dick Smith Food is trying to expand its business in the global market so that it can able to enhance its revenue level largely. In this report, the focus will be on market penetration strategy of Dick Smith Foods to enter in the Vietnam market. Market Analysis Size of the market and growth rates: As per the article by Piercy (2014), analysis of market size and potential growth rate of the market is critical at the time of introducing any product in the market. It has been assessed that Vietnam is facing increase demand in the packaged cheese foods. Furthermore, consumers of Vietnam are also becoming very conscious regarding the quality of the provided food products. As a result, it is providing organizations the opportunity to implement effective penetration technique in order to gain competitive advantage in the market. As mentioned by Spann, Fischer Tellis (2014) Vietnams packaged cheese product market has increased by 8% over the past few years. Therefore, it also providing Dick Smith Foods bigger market share to gain expected level of revenue. Population: As per the article by Kapferer (2012), the liberalization of the market have helped Vietnam to emerge as one of the fastest growing economies in the Asian region. The countrys GDP growth rate has been assessed 7.8% in the last decade. For that reason, Vietnamese population has been able to experience strength economic growth. For that reason, it is providing Dick Smith Foods the opportunity consider the entire population so that it can able to fulfill all the requirement of entering in the new market. Market Barriers and Market Drivers: As per the article by Foxall (2014) market barriers and drivers is another crucial factor that can make significant amount of impact on the new market development strategies of the organization. In order to penetrate Vietnam market, Dick Smith Food will have to consider government rules and regulations at the time of importing products in the market. Furthermore, the organization also has to consider the local taste and preferences in order to get close to its potential customers. On the other hand, per capita income of Vietnam people is increasing in a consistent manner. Therefore, it will help the company to establish its packaged cheese products effectively in the market. Organizational Analysis Customer Behavior: Dick Smith Foods deals in packaged cheese products industry. Therefore, the organization has to target children and household customers in order to gain fare share of the market. It has been assessed that the customers in Vietnam is more focusing towards the quality of the product. For that reason, Dick Smith Foods will have to ensure that the quality of the product has able to meet the satisfaction level of the customers. Furthermore, customers buying behavior heavily depended on the pricing structure of the organization. Therefore, Dick Smith Foods also will have to impose the pricing structure in such a way so that it can influence the people to spend for buying their product. 4Ps of marketing: Product Dick Smith Foods primarily deals in providing packaged cheese products. The company has able to gain popularity in the Australian market due to its exceptional quality. Furthermore, the company is continuously trying to develop new products in order to maintain its position in the market. Price The organization is focusing on implementing low pricing structure so that it can able to grab the attention of the new customers. Furthermore, the company is looking to initiate different seasonal offers so that people can able to recognize the products in a much more effective way. Place As per the article by Schmidt, Spann Zeithammer (2014) Vietnam does not have too much competition in the packaged cheese products as compared to any other economy. Therefore, it can be regarded as an ideal place to initiate market penetration strategy at the time of introducing new products in the market. Promotion In present business environment, promotion has become an integral part of the organization. Since, it helps to get close to the organization customers. Dick Smith Foods also will have to utilize unique strategy like direct marketing, social media marketing in order to impose its products in an effective way. Table 1: 4Ps of marketing (Source: Ryan, 2014) Competitor Analysis: As per the article by Berthon et al. (2012) organizations have to implement a systematic procedure in order to analyze all the competitors effectively. Therefore, Dick Smith Foods also have to implement systematic procedure in order to counter the strategies of its competitors. In Vietnam, Vinamilk is the largest packaged dairy product supplier. Therefore, Dick Smith Foods will have to impose its packaged cheese products in such a way so that it can able to gain fare share of the market. Figure 1: Competitors analysis (Source: West, Ford Ibrahim, 2015) Competitor Advantage of your Product: As Dick Smith Foods in planning to impose its product in the new market, it will have to include certain additional benefits in the product. For instance, Dick Smith Foods offers different size package for cheese products. Therefore, it will allow consumers to select any size according to their convenience. Furthermore, the company is focusing on offering different types of cheese products like pennant cheese, butter cheese so that customers can have more options to select a particular product from the market. In addition, Dick Smith Foods is also trying to utilize low pricing structure so that people does not have to face too many difficulties at the time of introducing the packaged cheese product in the market. Positioning Map of Competitors: As per the article by McDONALD (2016) positioning of the product is very important for gaining success in the market. Particularly, in order to impose a new product in the market successfully, positioning play a critical role. Thus, promotional campaign of Dick Smith Foods will have to be imposing in such a way so that it can able to grab the attention of the customers. Furthermore, positioning of packaged cheese product will have to be imposed in such a way so that customers can able to recognize it in the market effectively. Macro environment Porter five forces model: As per the article by Proctor (2014) Porter five forces help organizations to analyze the market situation in an effective way. The Porter analysis is analyzed as follows: Thereat from new entry: In Vietnam, developing new businesses have to go through several rules and regulations. Therefore, majority of the new businesses have faced lot of difficulties in order to place itself in an appropriate manner. Therefore, market entry rate is relatively low in the market. For that reason, it will be easier for Dick Smith Foods to penetrate in the market in an appropriate manner. Threat of substitutes: In present time, food industry has to face immense threat of industry competition. Furthermore, every organization is looking to introduce new product in order to sustain its position in the market. Therefore, different types of dairy product have came up in the market in recent time. For that reason, organizations have to face threat of substitute. Supplier power: In order to impose a product in the new economy, suppliers have to face a critical role. For that reason, suppliers possess huge amount of power that can affect the business strategies of the organization. Buyer power: As per the article by Turnbull Valla (2013), buyers do not possess too much power that can actually affect the business strategy of the organization. Furthermore, as the companies do not have to face challenges of new entrants, it can implement its business strategy in a much more effective way. Competitive rivalry: Competition in the packaged cheese product is intense in the world market. Therefore, all the companies are trying to expand its business to capture as much market as possible. As a result, Dick Smith Foods have to face lot of challenges at the time of introducing its product in the market. Figure 2: Porter five forces (Source: Majaro, 2013) Value Chain: As per the article by Kanagal (2013) value chain analysis helps organizations to utilize its internal activities in a much more effective way. Now, Dick Smith Foods also have to focus on several factors like infrastructure, procurement, human resource so that it can able to fulfill all the requirements of the organization. As the company is looking to introduce packaged cheese product in the Vietnam market, it will also have to focus on the cost effective logistic operation. Dick Smith Foods also have to focus on the quality of raw materials and after-sale services to develop an effective value chain for the organization. Figure 3: Value chain analysis (Source: Vilim Botterud, 2014) BCG Matrix: High Low High Star Vietnam is among one of the fewer Asian countries that is yet to be explored in a massive way. Therefore, it actually represents huge amount of opportunity for the organizations to penetrate effectively in the market. Furthermore, lesser amount of competition will also provide more opportunity for the organization. Thus, it represents higher possibility to gain success in the market. Question mark It has been assessed that many packaged food product organization has fail to increase its revenue level in the market. Now, as the competition level is comparatively low, it is expected that companies will able to have consistent growth in its revenue level. Thus, it actually creating question mark regarding the marketing strategies of the organization. Low Cash Cow In past few years, Vietnam has faced drastic change in the packaged dairy product industry. Due to liberalization, companies are presently facing more competition to sustain its position in the market. For that reason, it actually can cause challenges for Dick Smith Foods to penetrate successfully in the Vietnam market. Dog Several companies have failed considerably to handle the newly developed challenges of Vietnam market. As a result, many organizations has face drop in the revenue level. Thus, Smith Dick Foods also have to implement its market penetration plan in such a way so that it can actually able to fulfill the requirements of the customer in an effective way. Table 2: BCG Matrix (Source: Basu, 2014) SWOT Analysis: Strengths Weaknesses Dick Smith Foods is a popular name in the Australian market. Therefore, it will help the organization to grab the attention of the Vietnam people in a much more effective way. The company has able to develop a strong relationship with its customers and suppliers. For that reason, it can be expected that the company will able to fulfill requirements of the Vietnam market in an appropriate manner. Dick Smith Foods is trying to impose its package cheese product in a completely new market. Therefore, it has to face the challenges to new market. The company also has to invest huge amount to maintain the quality of the products. Opportunities Threats As mentioned earlier, Vietnam is among the few country that is yet to be imposed in a proper way. Therefore, it represents huge potential market for Dick Smith Foods to enhance its revenue level in an effective way. Due to liberalization, different policies and procedure has been relaxed. This will help Dick Smith Foods to export raw materials in Vietnam economy in an effective way. Competition is increasing in the packaged food product industry. Therefore, it is increasing the risk level for the organization. Different organization is utilizing low pricing strategy. As a result, revenue level is decreasing considerably. Table 3: SWOT Analysis (Source: Vahl, Rther Casarotto Filho, 2013) Conclusion: From the above analysis, it can be assessed that Dick Smith Foods have to consider several factors in order to introduce new product in the Vietnam market. 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