International Expansion Of An Australian Juice Company - samples

Question: Discuss about the International Expansion Of An Australian Juice Company. Answer: Introduction International marketing is a good opportunity for the domestic business organizations, as this allows them to explore new markets in the host countries and increase the customer base. As the demand and expectations of the customers in the host country changes with time, the market becomes saturated thereby, stalling the business (Killing 2012). Therefore, international expansion is the best option business organizations can avail for sustaining in the competitive market. This report highlights the international expansion of an Australian juice company of named The Daily Juice Company in the UK. The Daily Juice Company used to manufacture orange juice solely since their establishment. Additionally, the report also consists of the target customers, product positioning, and the suitable market entry strategy. The Daily Juice The Daily Juice is an Australian juice company that produced only orange juices when the company started. The company started in 1989 with only 12 people committed to a big vision. The vision of the company was to produce delicious orange juice that melts in the mouth of the customers. Since the establishment of the company, the orange juice of the company has been highly favored by the Australian customers. As the demand for the orange juice increased over the years in the Australian market, they introduced new fruit juices in their collection. The different types of juices produced by The Daily Company include Nourish Berry, Nourish Green and Nourish orange. The juices produced by the company come in the family pack as well as breakfast bottles. The Daily Juice Company has successfully served the Australian market for the past 25 years and has become a well-loved staple in the Australian household (Dailyjuice.com.au, 2017). PESTLE analysis justifying the selection of the UK Political Stable political environment Proactive government working towards the betterment of the country Economical Worlds 6th largest economy Worlds first industrialized country Social High rate of obesity Unhealthy lifestyle Technological Leading center of scientific revolution Extensive use of technology in daily life Legal Change of legal policies after Brexit Suitable tax policies Environmental Renewable energy market Sustainable business options Political: The UK is the country with stable political environment thereby, facilitating foreign investors and business organizations. The political scenario of the UK hardly signifies any corruption, as the political decisions of the country are still influenced by the British monarchy. Moreover, the proactive nature of the government makes it feasible for the international investors and business organizations. The government of the country is readily involved for the betterment of the country and the people (Howarth and Quaglia 2013). Therefore, launching of healthy fruit juice by the Australian company will be completely supported by the UK government. Economical: The UK has the sixth largest economy in the world that is extremely stabilized since the past years. Moreover, the UK is one of the first industrialized countries in the world thereby, making it one of the most suitable options for foreign investors and international business organizations. According to reports, the current GDP of the UK is $2.62 trillion thereby, facilitating the growth of various business organizations (Bateman et al. 2014). Social: The social environment of the UK states high rate of obesity and different types of diseases. This is due to the unhealthy lifestyle of the country along with lack of awareness about a healthy lifestyle. Moreover, the majority of the UK population depends on fast food that thereby, resulting in high-calorie intake (Buccafurri et al. 2013). Therefore, the unhealthy eating habits of the country provide suitable opportunities for business organizations providing healthy food options. Additionally, the UK is the country with highest literacy rate. Technological: The UK is the country that has facilitated most scientific innovations over the years. The use of technology in the UK is highly facilitated that is beneficial for the business organizations and the foreign investors. The technological advancements of the UK can be used by the foreign business organizations to explore the market thereby, expanding the business by increasing the customer base. Moreover, competition with the companies of the host country is also possible due to technological advancements of the country (Keirstead et al. 2012). Legal: The legal framework of the UK is strict thereby, making it difficult for the international business organizations. The foreign business organizations need to pay taxes that are considerably higher compared to the tax of pay by the local companies. The international business organizations need to maintain the intellectual property rights strictly for conducting business in the UK (Aiyar, Calomiris and Wieladek 2014). However, after Brexit, there have been some changes in the legal policies in the UK for the foreign investors and business organizations that might be difficult to follow. Environmental: The UK government favors sustainable business opportunities that are beneficial for the environment as well as for the people. The UK is the country that is highly concerned with environmental preservation and has undertaken various steps for the benefit of the environment (Keirstead et al. 2012). Target customers in the UK Reports suggest that majority of the people in the UK are living an unhealthy lifestyle and consume mainly fast foods. As a result, obesity and various diseases due to unhealthy eating and living habits are noticed in the UK with a staggering 24.9% (Nhs.uk, 2017). According to reports, in 2014, around 65% of men and 58% of women were obese in the UK that indicated almost 26% increment of obese people in 2014. Additionally, more than one child in every five children has been diagnosed with obesity (Health and Social Care Information Centre, 2017). Based on the current statistics of the UK, the target customers of The Daily Juice Company includes the children, young adults, and adults. As unhealthy lifestyle is noticed within the majority of the UK population, the company has selected a wide range of target customers. Therefore, the healthy properties of the juice along with the availability of different fruit flavors will help in attracting the target customers in the UK. Product Positioning As the UK has previously existed and established healthy fruit juices for the people, The Daily Juice Company needs to position the Nourish Green and Nourish orange fruit juice in a way that helps in attracting the majority of the customers. Initially, providing free samples of the new product to the people is the best option (Sweeting 2013). The employees of the company can set a stall in a market place and provide free samples of the juice to the customers. This will allow the company to reach out large number customers of different ages thereby, communicating with the customers personally. This will help the customers in gaining a better understanding of the healthy properties of the product thereby, influencing their purchase decision. Moreover, the company can distribute brochures containing the details of the products along with advertising both Nourish Green and Nourish orange through television, newspapers, and billboards (Huettl and Gierl 2012). This will help in letting the customer know the health benefits and effects of the product thereby, influencing their purchase decision. Suitable market entry Based on the analysis of the UK market, The Daily Company has decided to enter the UK market by using franchising as the market entry strategy. As commented by Ogutu and Samuel (2012), franchising is defined as the type of ownership in which different owners shares a single brand name. Therefore, The Daily Juice Company will allow the franchisee to use their strategy and trademark in exchange of monetary terms. Therefore, the franchisee of The Daily Juice Company will have to pay some initial fees and royalties based on the generated revenues. However, as a part of the franchise agreement, The Daily Juice Company will provide required support such as training and advertising to the franchisee. As franchising is a cheaper and faster form of expansion than owning new stores in the UK, The Daily Juice Company has selected this market entry strategy (Leitmannslehner and Windsperger 2012). Conclusion In this report, it can be concluded that, after serving the Australian market since the establishment, The Daily Juice Company has decided to emphasize on international expansion. Based on the rate of the unhealthy lifestyle, obesity, and diseases, The Daily Fruit Juice Company has decided to expand their business in the UK. After analyzing the UK environment, the company has observed proactive nature of the government along with the potential requirement of healthy food options. The company has also observed that unhealthy lifestyle is mostly practiced by among the children, young adults, and the adults. Therefore, based on the food habits, the company has selected children, young adults, and adults as the target customers. The launch of delicious and flavor some fruit juice will provide a healthy alternative for the customers. In order to make a mark and attract the attention of the potential customers, the company will communicate the products to the customer by providing them fre e samples of the fruit juice along with advertising it. The Australian company selects franchising as the market entry mode, as it is cheaper and easy to expand. References Aiyar, S., Calomiris, C.W. and Wieladek, T., 2014. Does Macro?Prudential Regulation Leak? Evidence from a UK Policy Experiment. Journal of Money, Credit and Banking, 46(s1), pp.181-214. Bateman, I.J., Harwood, A.R., Abson, D.J., Andrews, B., Crowe, A., Dugdale, S., Fezzi, C., Foden, J., Hadley, D., Haines-Young, R. and Hulme, M., 2014. 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