Introduction
Globalization has taken an essential role in many businesses, companies, and people’s lives today, based on International Products’ utility for daily use and leisure. Additionally, many consumers tend to choose products from other countries over the local products based on different perspectives, facts, and logic. The main reason for this is the quality of products. Many consumers say that the products from other countries have a high quality in their formation compared to the local ones. Other reasons that lead to the globalization of products are the branding and prices despite the sophistication of quality improvement by the local industries. Malaysia Company Operating in the Food and Beverages have grown steadily and now it has decided to sell its products internationally. This company’s leading brand is the Tealive bubble Tea to South Korea. With the help of the local government and other International Organizations, the company will be able to cope with the challenges of globalization and economic liberations to defeat its competitors and serve the customers of South Korea. (Fahy et al. 2019)
The company will create a competitive analysis to get the global understanding and the global scale. It will have to follow the standardization strategy to cope in international markets. The company will have to differentiate and mix the tea branding advertising strategies, defeating the other companies or industries with similar production. Furthermore, for the company to get more customers from South Korea, it will have to raise the quality of Tea because other local markets have low-quality products and brands, thus leaving the customers unsatisfied. Moreover, the pricing rate of products in South Korea is higher for customers, thus leaving people from low families unserved. Still, this company will have to lower the prices to attract customers to purchase the products. (Gillespie et al., 2021)
Environmental Analysis
In South Korea, the population has improved compared to other years, brought by a low death rate and an increase in the birth rate. According to the Korean Culture, minority groups share a common language, live in a common area, and share social values. In context to this, the minority are highly populated compared to the majority group. The government has developed strategies to develop minority groups, positively impacting the company. A company will benefit from introducing the Free Trade Agreement, a passion for UK goods. In this case, the goods from other countries like British are ranked high by Korean consumers, thus giving opportunities in exports. In context to this, Malaysia Company can get a chance to export its product, leading to its growth.
Furthermore, the economy of South Korea has grown by a rate of 3.6%, and it has been rated being the fastest in Organization for Economic Support and Expansion. The higher the economy, the higher the increase of market opportunities. In addition to this, this country has a hi-tech economy. It is the leading country with the manufacture of electronics. For instance, Samsung’s most significant company for producing electronics started in South Korea.
Furthermore, it has the uppermost level of wideband infiltration globally. It has the highest speed in the network; thus, the company can benefit by advertising its products online, and more people will get the message. (Hecht et al. 2020)
Despite the country having opportunities for external markets, it has challenges and risks. Firstly, the government has confusing rules and regulations, thus being difficult for the company to market its product and remain compliant with all pertinent laws. Before the company market its products, it must navigate and explore the regulations and do testing. Secondly, there is a deep respect for tradition in South Korea, making it hard for the company to set market there because it is deeply rooted in heavily Korean Culture, which Confucianism and male-dominated emphasize. Additionally, foreign businesses perceive the employment law system as inflexible because it is hard to terminate a Korean employee (Shtal et al., 2018).
Global Market Entry Strategy
To engage in foreign investments, it should analyze the market prospect and its competencies to determine the best strategy. Businesses begin with a lower-risk approach and progress to other methods by involving additional investment and risk and additional opportunity after having proven the previous success. The following are main markets strategies and firstly is, exporting is where goods are produced in one country and then sold to the other country. Many businesses and companies find exporting a low-risk strategy and see it as attractive. Additionally, the domestic products find a new growth chance in the other country, enabling the company to sell the existing products and avoid developing new ones. Some effects find a cyclical internal demand and decide to export them overseas, which helps them balance their seasonal need in their revenue streams. In addition, a company may choose to ship its product because the competition is low in the other country. Smaller businesses majored in exports because the risks are low and reasonable costs. Secondly, the different strategy is licensing. Here, the licensor gives the licensee the product by granting the right to use the firm’s manufacturing process, brand name, copyrights, and sale ideas in return for payment. The good thing with this strategy is that the firm enters the foreign market quickly. In context, the firm may use this strategy if it has inadequate capital, rules, and regulations being rigid or government restrictions.
Furthermore, it is a risky market strategy for a firm hence being a long-term contract. If the licensee does not produce the approved products or is marketed ineffectively, the original product’s image tarnishes. (Watson et al., 2018)
Malaysia Company Operating in Food and Beverages should use export market strategy because it is less risky and controls costs. Additionally, if the company faces competition in the local market, it may export the products overseas with less stiff competition (Terech et al., 2018).
Market Analysis
Segmenting the marketplace into position groups is vital because the company can identify the profitable market segment and imperative to new firms and new products before other companies select the profitable marketing segments. Customers are different in terms of desires, wants, and anxieties. However, segmentation activities are essential because the potential and current customers are reached out effectively; thus, they can match their communication products offered with the needs of different customers. The company must use four basic questions in segmenting the market and include; “who has the need?, Do they have money for product?, Who is the decision-maker? Do they have distinction needs as a segment?” In context to this, there are segmentation variables which are geographic, demographic, psychographic, and behavioral characteristics.
Demographic segmentation is one of the common forms of marketing segmentation, and it involves dividing the buyers based on observable and people-based differences. The qualities in these segments include; sex, marital status, race, religion, etc. It is the greatest generally used variable because the collection of data and information is accessible, thorough interaction of customer one by one, tally data logical computer software among others. However, it is essential to use this approach because it can help to narrow the market downward. Additionally, the information is easily accessible, and the cost needed is meager. Data is placid directly from the customers, which helps establish and aim the market campaigns.
Furthermore, it allows the company to clarify its visualization, getting more direction with its future advertising plans, thus optimizing its properties, stretch, and budget. In addition to that, Geographical segmentation is another used approach by companies and businesses, and it involves dividing the marketing according to the location of customers. It helps in understanding the customers’ needs better and therefore sending the products to a different site. The best method in this segmentation is identifying the buyers in their state-run, region, and zip-code. It is very critical to use this approach because it requires the company to choose a specific AD to use in different locations.
Key Competition Analysis
The beverage sector is the most demanding business around the World. In South Korea, a number one leading food and beverage company makes a sales revenue of approximately 2.8 trillion. However, many companies have declined, led by the CJ Cheiljedag Corporation. The corporation is well known for producing most food brands around the country. Additionally, it acquired the food manufacturing company Kahiki foods. The company has quality products, which attracts most of the customers in the company. Also, their product pricing is not severe compared to other local markets. The sales values of the corporation improve day by day, whereas the country itself benefits a lot because of the taxes it collects from it. Furthermore, the consumers of food and beverages have entrusted the corporation’s products, which may be hard to convince them about our products. (Morgan et al. 2020)
What makes the business to be successful is its unique selling proposition. The CJ Cheiljedag cooperation has a unique selling proposition compared to other local and foreign markets. What they consider most is the prices and quality of their products. If a corporation produces goods of high quality and prices are at equilibrium, the more it will attract the customers to the products. Furthermore, the cooperation has put more health considerations on its customers. Before the products are taken to the customers around the country, they check if they are in an excellent state to consume them.
Additionally, the methods used in advertising the products are highly digitalized and hi-tech. The core reason for using these methods is that conveying the message will reach more customers globally. Furthermore, another unique selling proposition is that the company promotes its customers. For instance, if an individual purchases product worth 25 Seoul and above, they provide a gift to the customer, hence attracting more people to buy to be gifted (Khan et al. 2020).
Marketing Strategies
Global marketing is marketing products across international borders to meet the critical needs of consumers around the World. Before creating or selecting global marketing strategies, every department in the company should begin a long time before drafting the marketing materials. Using the right global marketing strategies is essential because of their effectiveness. The more the company gets more skills and knowledge, the more the company will produce new products effectively and give services. Secondly, there will be a definite competitive advantage when a company markets its products in the Worldwide market where its competitors cannot, thus making it a strong force in the marketing sector. However, a good marketing strategy should incorporate the countries around the regions in the World and coordinate its marketing accordingly. There must be a branding name, identical packages, similar products, and standardized advertising. (Samiee et al. 2019)
In addition to that, most companies use two marketing strategies internationally. Firstly, it is creating a strong brand culture. It should make a strong brand familiar to the target customers to grow globally. An effective brand should reflect the customers’ culture, and if the brand’s culture is compromised, it can be very damaging. Secondly, the other strategy is marketing, bearing in mind there are no borders. There are many digital platforms and brands, and the company cannot adopt them in each country. The best thing for a country is to adopt a good marketing approach that is more or less unified (Alon et al., 2020).
Furthermore, there is an export strategy, where the company is primarily concerned with its domestic operations. The intention of the company to use this method is that it does not have any need to expand globally, but it exports its products to take advantage of international chances. In conclusion, there is a standardization strategy where the company treats the whole World as a common market with minimal variations. This strategy assumes that one product can meet the requirements of consumers everywhere. Using this strategy produces efficiencies by centralizing many activities in common; hence, the products are not customized.
References
Alon, I., Jaffe, E., Prange, C., & Vianelli, D. (2020). Global Marketing: Strategy, Practice, and Cases. Routledge.
Fahy, J., & Jobber, D. (2019). EBOOK: Foundations of Marketing, 6e. McGraw Hill.
Gillespie, K., & Swan, K. S. (2021). Global marketing. Routledge.
Hecht, A. A., Perez, C. L., Polascek, M., Thorndike, A. N., Franckle, R. L., & Moran, A. J. (2020). Influence of food and beverage companies on retailer marketing strategies and consumer behavior. International journal of environmental research and public health, 17(20), 7381.
Khan, R. S., Surkov, V. V., Fedosenko, A. A., & Olatalo, O. A. (2020, August). Construction enterprises’ marketing activities in the economic turbulence period. IOP Conference Series: Materials Science and Engineering (Vol. 913, No. 5, p. 052013). IOP Publishing.
Morgan, N. A., Feng, H., & Whitler, K. A. (2018). Marketing capabilities in international marketing. Journal of International Marketing, 26(1), 61-95.
Samiee, S., & Chirapanda, S. (2019). International marketing strategy in emerging-market exporting firms. Journal of International Marketing, 27(1), 20-37.
Shtal, T. V., Buriak, M., Ukubassova, G., Amirbekuly, Y., Toiboldinova, Z., & Tlegen, T. (2018). Methods of analysis of the external environment of business activities.
Terech, A. (2018). An introduction to marketing and branding. Generations, 42(1), 45-49.
Watson IV, G. F., Weaven, S., Perkins, H., Sardana, D., & Palmatier, R. W. (2018). International market entry strategies: Relational, digital, and hybrid approaches. Journal of International Marketing, 26(1), 30-60.
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