International Marketing Plan Example For Olive Oil Business, UK
As with any business venture, your entry into international markets should be well planned. A detailed marketing plan should be developed to provide a blueprint for your marketing activities.
Your organization, based in Spain produces olive oil. It is planning to target the UK as a new international market and has asked you to create an initial marketing plan for this new project.
Table of Contents
|Executive Summary & Introduction||4|
|Assessment of the market environment||5|
|The Marketing Budget||9|
|The action plan||9|
|Monitoring and evaluation||10|
Executive Summary & Introduction
The following paper includes the development of a marketing plan for an organization which is into the business of producing olive oil, and is based in Spain. The organizations are planning to target the UK market as a new international marketing space and are looking for a perfect marketing plan to be developed below. The below marketing plan includes the development of the objectives of the marketing plan in order to achieve the desired results and objectives. The marketing plan also includes the identification of the market where the organizations needs to market its products. The marketing objectives has also bee developed and looked upon in order to have a perfect marketing plan. The strategies related to the implementation of the marketing plan has also been analysed which will be used to attain the marketing objectives developed under the plan. The paper also includes the evaluation of the action plan based on which the marketing plan will be implemented and performed in order to attain the objectives of the marketing plan. The marketing budget has also been developed in order to analyse the expenditure to be expensed on the overall marketing plan in order to initiate its expansion plans in UK. The monitoring and evaluation of the overall plan is also done using different methods and techniques in order to track the performance of the plan in order to attain the developed objectives and attain success of expansion in the new market place.
The main objective for the development of the marketing plan is to initiate the expansion process of the company into the UK market and target the expansion into the international market space. The objective is also to enter the UK market and develop a market space for the company and increase its approach in the international market. The company objective is to increase its sales by entering into the international market and increase its sales of its produces olive oil. The organization wants to accomplish an increase in its sales and also develop a market for its products in the international or UK market outside Spain.
Assessment of the market environment
There are several internal and external factors that will have an impact on the working of the company in the international space. The business environment can be said to be as the factors that have a bearing on the activities of the business at both the local and international level. The business environment includes those internal factors and external factors and institutions that have an impact on the activities of the business enterprise. This mainly includes the customers, creditors, government, political organizations, and socio-cultural organizations etc. these factors either affects the business directly or indirectly (Westwood 2002). Business environment is highly dynamic and uncertain and every business needs to deal with it at the national and international level. The changes in these environmental factors it is difficult to predict but it is vital that the organizations keep a watch on these factors and make their plan in a way to face them in an effective and efficient manner.
Internal environmental factors: The internal factors that have an impact on the business of the organization when it is trying to enter in the international market may include the value system of the founders of the business which has a vital bearing on the mission and the objectives of the business. The mission, vision and objectives of the business also affect the business activities when the organization is planning to go international. The structure and the nature of the management of organization is also among the internal factors that will affect the business activities and the servicing of the business in the identified market. The internal factors also include the human resource of the organization which is one of the standing pillar on which the organization has grown to the current level (Ferrell and Hartline 2010). The relationship in between the level of the business enterprise is also among the factors that have a bearing on the business of the organization at the international level. The image and the brand equity of business also has a bearing on the organizational activities the internal factors that have an impacts on the business activities at the international level also includes the physical assets, and facilities, research and development activities of the business including the financial factors.
External environmental factors: These are the factors that have an indirect affect on the activities of the business. This is divided into the micro environment this includes the existing suppliers, creditors, marketing intermediaries, customers and the public. While the macro environment includes the
Economic environment: the economic environment of UK will have a bearing on the working of the organization and this must be kept in mind by the organization when initiating the business activities in these countries.
Social environment factors: the value system of the UK market also will also affect the business activities of the business. This mainly includes the cost structures, conventions and customs, the mobility of labour etc.
Political environmental factors: the political environment will also have a bearing on the functioning of the business. The changes in the policies related to business in UK will have an impact on the business which must be kept under the preview of the business enterprise.
Legal factors: the changes in the legal factors like the change sin the rues and regulations related to imports and exports will impact the business of the organization.
Technical environmental factors: the changes in the technology has a high beaing on the business activities of the business if the advanced technology has been used by the UK competitors than this will affect the business activities and can also affect the positioning of the business.
The most suitable market that the organization can target in UK is the marketers of the olive oils that sell the produces olive oil manufactures in UK. The company can target them to sell their produce and market the product in the local market. The company can segment the whole market into the resellers, distributors and the consumers. The company can also sell its product by making a brand through developing a channel of distributors and retailers. The company can also sell its produce to the customers directly by the way of using the channel of distribution and can develop and market its product and can setup its market in UK. The market segments that are most suitable to target includes the distributors and the whole sellers of the olive oil who are already working in the UK market (Ferrell and Hartline 2010).
The main marketing objectives of the marketing plan include the attainment of the objectives that has been planned by the organization that can easily be measured, achieved, time specific and non ambiguous and are easily flexible (Ferrell and Hartline 2010).
Measurable: The main objective that has been planned for the marketing of the olive oil by the company can easily be measurable for each segment and the targeted market. The objectives for each distributor, whole seller and the local retail customers are measurable in terms of the sales done per quarter and per year.
Achievable: The objectives of the organization related to the entry into the UK market based on different targeted market can easily be achieved. This can be said that the targets planned or based on the sales figure can be achieved if activities are performed as per the plan prepared by the organization (Berry and Wilson 2000).
Time Specific: The objective that has been planner is time specific and are to be achieved in the specific time period. The targets developed for each group is for quarter or for per year and are to be measured in these criteria only.
Flexible: The objectives that have been planned by the organization are flexible and can be moulded based on the circumstances. The organization needs to make alterations from time to time due to the environmental factors and this flexibility aids the organizations to maintain the level of performance the organization seeks to attain in the given period of time.
The best combination of the marketing mix for the targeted market includes the four P’s of marketing mix. The four P’s includes product, price, palace and promotion.
Product: The product which the organization is dealing in is Olive oil which the company produces and sellers in the market. The company needs to sell by making some brand and channel it using the distribution channel including of the distributors, whole sellers and the customers.
Price: The prices of the product are the moist vital factor that determines the success and failure of the organization. Initially the organization needs to use the penetration strategy and penetrate the UK market by fixing cheaper prices in order to provide competition to the local players. The price is the vital factors for the long term success of the organization so the organization must keep the prices of the olive oil at lower levels in the initial period and capture the market and keep it to the period up to when the organization has a hold in it (Doole and Lowe 2008).
Place: The place is one of the vital marketing mix factors that has a bearing on the success and failure of the organization in the local and the international market. The selection of the place also holds a vital position for thee success of the organization.
Promotion: This is also one of the vital mix factors. The organization needs to use several marketing mix strategies like advertising, online marketing in order to capture the market. The company can also use the distribution of free samples of olive oil to the distributors and the local customers in order to provide them with the quality of the product and make an entry in the market (Ferrell and Hartline 2010).
The action plan
The action plan includes the overall actions that need to be taken in order to make the plan work. This mainly includes the organization and overall development of the setup in UK that will be required to manage the business. The development of the teams of the sales force and the operation staff needs to be developed in the new country where the organization is planning to initiate its business operations. The organization activities will be done by the sales force and the operation staff that will be recruited in order to manage the activities of the business in the foreign country. All the actions need to be done at the time when the over all planning phase has been accomplished and the staff recruited are ready for actions (Doole and Lowe 2008).
The Marketing Budget
The organization needs to spend a proportion of the amount of the total budget which its plans to invest in the overall operations in order to start the operations in the foreign market. The organization needs to spend an approximate amount of 30 % of the overall budget of the company in the marketing plan and its operationality. The resources will be allocated depending on the importance of the activities in the marketing plan. The most of the investment of the budget will be done on the establishment of the office and the recruitment of the staff for the organization. This is vital because these are the factors based on which the operations of the business will be implemented (Brooks 2011).
Monitoring and evaluation
The performance of the marketing efforts will be measured in terms of the sales and the revenue generation which the company will record in the first year of the operations. The monitoring of the activities will be done on a quarterly basis based on which the success of the activities of marketing will be measured. The marketing efforts will also be measured on the basis of the distribution network which the organization will establish initially and from time to time. The marketing efforts will also be measured based on the level of network and the popularity of the company brand in the new or foreign market. The marketing efforts will also be measured based n the increment in the level of sales from quarter to quarter. The marketing efforts will also be measured by the increase in the popularity of the product of the company and the increase in the distribution channel of the company in the first year of the establishment of the operations of the company in UK (Doole and Lowe 2008).
The critical issues that the organization may face in the initiation of the operations in UK include the rules and regulations related to the initiation of the operations of business by a foreign company. The company has to complete all the procedures and requirements as per the government rules which are required to be accomplished by a foreign company. The critical issues also include the competition which the organization needs to face while initiating operation in UK. The existing players must have command over the market and the company needs to manage some factors that will be required to be as an advantage for the company. The critical issues also include the establishment of the price and the quality of product which the company needs to offer in order to capture the market in the initial period of its operations in UK. The critical issues which the organization needs to face also includes the external environmental factors like the economic and social factors that the organization needs to take care of while initiating operations in UK , all these factors also includes the legal and technological factors which can impact the operations of the business in UK in the coming period. the rules or the economic policies may impact the existence of the business in UK market and thus are critical for the organization.
From the analysis of the above marketing plan it can be concluded that the organization needs to analyse the environmental factors of UK and then initiated its operation in the foreign country. It can also be concluded that with the targeting of the distributors and the whole sellers of the olive oil in the UK market the company can easily establish its brand in the foreign market and can easily sustain for long beating competition easily.
Westwood, J. 2002. The Marketing Plan: A Practitioner’s Guide. Kogan Page Publishers.
Ferrell, O.C. and Hartline, M. 2010. Marketing Strategy. Cengage Learning.
Berry, T. and Wilson, D. 2000. On Target: The Book on Marketing Plans: How to Develop and Implement a Successful Marketing Plan. Palo Alto Software, Inc.
Brooks, G. 2011. Marketing For Dummies. John Wiley and Sons.
Doole, I. and Lowe, R. 2008. International Marketing Strategy: Analysis, Development and Implementation. Cengage Learning EMEA.