International Market Entry Report

Assignment Brief

3 Module Title International Marketing Innovation and E-commerce

ASSIGNMENT QUESTION

Scenario

You are the international marketing director for an established brand or product. The CEO of your company has ambitions to expand the product or brand into a new international market place. You are requested to prepare a report evaluating the likely success of launch into the new market. In the second part of the report you are asked to consider the impact of consumer buying behaviour on the demand for your product or brand. NB ,You are advised to select an interesting brand or product (where possible avoid Tesco, McDonalds, Coco Cola, Apple and Samsung) and an international market of which you have some knowledge.

• Question 1. Prepare a detailed micro and macro situational analysis of your chosen international market. 30 marks

• Question 2a. Kotler ( 2012) states, “All good marketing is local. Global companies know this and are going “glocal”. Analyse this theory. 10 marks

• Question 2b. Examine the advantages and disadvantages of standardisation and adaptation of the marketing mix in international marketing. 10 marks

• Question 3. With your findings from question 1 in mind, appraise the extent to which the four P’s of the traditional marketing mix used within the domestic market should be standardised or adapted to meet the requirements of the this new market place. 50 marks

Sample Answer

International Market Entry Report: Brewtopia Coffee Expansion into Japan

Executive Summary

This report evaluates the potential success of launching Brewtopia, an established UK-based specialty coffee brand, into the Japanese market. The analysis includes a detailed situational assessment of the Japanese coffee market, consideration of consumer buying behaviour, and the implications for Brewtopia’s marketing mix. The report further examines Kotler’s “glocal” theory and the advantages and disadvantages of standardisation versus adaptation in international marketing. Recommendations are provided for strategic adjustments to ensure successful market entry.

Introduction

Brewtopia has established a strong presence in the UK through premium quality coffee, ethical sourcing, and innovative café experiences. The CEO’s ambition to expand internationally requires careful evaluation of target markets to ensure strategic alignment and operational feasibility. Japan, with its growing coffee culture and high disposable income, represents a promising opportunity. This report provides an integrated analysis to guide Brewtopia’s entry strategy.

Question 1: Micro and Macro Situational Analysis of Japan

Macro Environment Analysis

Political Factors: Japan is politically stable, with supportive regulations for foreign investment. Trade agreements between Japan and the EU facilitate imports of premium products. However, strict food safety and labeling regulations require compliance.

Economic Factors: Japan is the world’s third-largest economy, with high per capita income and significant spending on food and beverages. The specialty coffee market has grown steadily, with urban centres exhibiting a willingness to pay a premium for quality products. Currency fluctuations and import duties, however, may impact profitability.

Socio-Cultural Factors: Japanese consumers value quality, craftsmanship, and brand reputation. Coffee consumption is increasing, particularly among younger urban professionals and women. Consumer preference for sustainable and ethically sourced products aligns with Brewtopia’s brand values.

Technological Factors: High digital penetration in Japan enables online marketing, e-commerce sales, and mobile payment adoption. Coffee delivery apps and loyalty platforms present opportunities for digital engagement.

Environmental Factors: Japanese consumers are increasingly environmentally conscious, favouring biodegradable packaging and sustainable sourcing. Compliance with local environmental regulations is critical.

Legal Factors: Regulations on food labeling, health claims, and foreign investment must be carefully navigated. Intellectual property protection is essential to safeguard brand identity.

Micro Environment Analysis

Competitors: Key competitors include domestic brands like UCC and Doutor, and international chains such as Starbucks and Blue Bottle Coffee. Competition is strong in urban areas, but differentiation through premium quality, ethical sourcing, and café experience offers a niche opportunity.

Customers: Target consumers are urban professionals aged 25–45, with high disposable income and a preference for premium, ethically sourced coffee. Consumer loyalty is influenced by brand reputation, quality, and social responsibility.

Suppliers: Brewtopia sources ethically from Latin American coffee growers. Establishing reliable logistics for import and distribution in Japan is essential, including partnerships with local distributors for freshness and efficiency.

Intermediaries: Online platforms, cafés, and retail partners are critical for distribution. Local partnerships can facilitate market penetration and brand visibility.

Publics: Media, regulatory authorities, and social influencers play a role in shaping consumer perceptions. Engagement through social media campaigns can enhance brand acceptance.

Continued...