International Marketing Strategy | Assignment Assistance
International Marketing Research
Academic Journal Article
Nyukorong, R. (2017). Conducting Market Research: An Aid to Organizational Decision Making. European Scientific Journal, ESJ, 13(10), 1. doi: 10.19044/esj.2017.v13n10p1
Credible media article
Podolsky, M. (2020). Understanding Market Research For Your Business Plan. Retrieved 25 September 2020, from https://www.forbes.com/sites/theyec/2020/02/28/understanding-market-research-for-your-business-plan/#7078ea886458
Working Link – https://www.forbes.com/sites/theyec/2020/02/28/understanding-market-research-for-your-business-plan/#7078ea886458
Critical Evaluation
The chosen journal and media articles are relevant to the international marketing research that organizations have to undertake to in order to expand globally. The journal highlights the strategic importance of information technology in conducting international marketing research. It also discusses the other integral quantitative and qualitative sources that can be used to gather both primary and secondary data. The journal also illustrates in the market research process that spans from defining the information need to designing the research, analyzing data and making informed decisions. Media article discusses the four variables including the demand, pricing, economic indicators and consumer trends, that should be identified via the market research. It also reiterates the market research process and the available sources of information that can be used.
The Distillery market in the United States, South America has been experiencing massive growth since people started consume more alcohol during COVID’19. A thorough research will further analyze the international growth opportunities in this market. 1919 Distilling will initiate the market research by first listing down the competitor, industry and resource information that is required from the research of the North American market. The distilling company will also highlight the research questions i.e existing winery prices, present demand and the market entry strategies that needs to be answered via research. Further, the company will shortlist the advanced primary and secondary research techniques that will be used to gather quantitative and qualitative data regarding winery and Gin customer preferences (Fletcher and Crawford, 2017)
This will be followed by a cost-benefit analysis that could measure the value of the research. A research methodology will be backed by a triangulation technique through which data will be gathered via multiple sources in order to increase it’s reliability and validity (Carter, Bryant-Lukosius, DiCenso, Blythe & Neville, 2014). The research findings will then be analyzed via conjoint analysis and the final decision will be taken.
This research will enable 1919 distilling to uncover the target audience’s needs and wants and would also enable the company to assess the competitor and industry trends in the United States. This will enable the Distillery to comprehend it’s scope for internationalization in United States.
Recommendations
1919 Distillery is a New-Zealand-based Whiskey & Gin Distillery that aims to internationalize their operations into the United States. The distillery market has proved to be an increasingly popular market in USA due to rapid product innovations, increasing consumer demand and exclusive regional production (Harffman, 2020). Hence, 1919 Distillery should carry out thorough market research before internationalizing their operations.
The company should conduct international marketing research by using the qualitative data analysis facilitated by primary research (Fletcher and Crawford, 2017)For this purpose, the organization should choose a random sample of 150 individuals of ages 25-45 from the city of New York in the United States. A sample from New York is selected since there is high diversity of Americans, which thereby increases the generalizability of the results. Hence, in accordance with the research, the company should then design semi-structured interviews that are brief and concise, considering the busy lifestyle of people residing in New York. These interviews should be conducted via phone in order to enhance the quality of information obtained (Jamshed, 2014).
The organization can also use social media and the internet to attain the primary data. 1919 Distilling can use digital channels such as online surveys and chat rooms that are launched by market research online communities on facebook and instagram. Through these surveys, the organization should gather information about the customer preferences regarding gin and whiskey. The organization should also launch real-time online focus groups via the web-conferencing service (Kite & Phongsavan, 2017). However, these focus groups should be short and timed, since the country has a rigid culture and New-Yorkers may get furious if a lot of their time is consumed (Chasan, 2020). The qualitative research is then analyzed via conjoint analysis in order to estimate the different features that consumers prefer in an alcohol. Further transcription is performed in order analyze the general demand and consumption patterns. This method will be costly, however it is more reliable.
The second recommendation is that the company can entirely conduct it’s research via secondary sources. It can use secondary research platforms such as New York’s distilleries annual reports, news releases, US census Bureau and other government-controlled websites (Dorożyński & Urbaniak, 2016). The company can also analyze the research papers and industry reports conducted on New York’s Distilling Industry. The secondary research will act as a useful tool in finding out the industry and the competitor trends existent in the New York city (Dufour, Richard & Li, 2019).
Hence, it can be asserted that 1919 Distilling can employ both primary and secondary research techniques in order to carry out extensive research.
Market Entry Strategies
Academic Journal Article
Ofili, O. (2016). Internationalization: Choosing The Right Entry Mode: Lessons From Ebay’s Strategy In China. European Scientific Journal, ESJ, 12(1), 202. doi: 10.19044/esj.2016.v12n1p202
Credible Media Article
Risen, C. (2019). Liquor Taxes Could Go Up 400%, Thanks to Congressional Dysfunction. Retrieved 26 September 2020, from https://www.nytimes.com/2019/12/16/business/economy/craft-distilling-liquor-tax.html
Working link: https://www.nytimes.com/2019/12/16/business/economy/craft-distilling-liquor-tax.html
Critical Evaluation
The chosen journal and media article are relevant in providing sufficient intelligence that will be used to decide the optimum market entry strategy for 1919 Distilling. The journal illustrates the process of competitive environmental analysis that should be conducted before developing an effective international market entry strategy. It discusses the entry modes that organizations choose depending on their current resources and the extent of operational involvement they want to pursue.
The article also highlights some barriers like lack of adaptation and limited product and market knowledge that may hinder a firm’s success in a foreign market. Some of the market entry modes discussed in the journal include Export, licensing, Joint Venture, Foreign Acquisition and Greenfield. The advantages and disadvantages of all the market entry strategies are highlighted and hence, their relevance according to different market conditions can be assessed. 1919 Distilling can choose the optimum market entry strategy after conducting a thorough environmental analysis of the USA distilling market and after assessing the pros and cons of these market entry modes in relevance to the USA market (Fletcher and Crawford, 2017).
The media article explains how the liquor taxes are forecasted to increase by 400% due to the congressional paralysis. The America’s distilling and craft brewing industry will completely destroy due to this tax inflation and many small breweries will be forced shut down. This information is essential to 1919 distilling since it explains the current and the future predicament of the industry. It also explains how only big brewing companies like AB InBev will benefit from the tax savings, thereby guiding 1919 distilling on the safest market entry strategy to adapt.
In accordance with the journal, 1919 Distilling will analyze the competitive dynamics of the distilling industry in order to devise the correct market entry strategy. More than 2000 new craft distilleries have recently opened in USA, which indicates that the industry is pursuing a path of stellar growth (Micallef, 2020). This also shows that 1919 Distilling being an authentic New Zealand based Distillery can easily internationalize their operations in this market. Furthermore, the media article shows that the leveraged excise duties will paralyze the distillery industry in the coming years. 1919 Distilling should avoid using the market entry strategy of acquisitions and mergers since this strategy would involve the business to be established as an independent unit, thereby being subject to excessive tax inflations in the long term.
Recommendations
New Zealand has a rapidly growing brewing and distillery industry that offers the finest collection of whiskey, gin, beer etc. 1919 Distillery also embraces the exclusive tradition of New Zealand’s finely craft whisky and Gin and hence, has a dynamic scope for expansion in the overseas markets (Emen, 2018). Based on the articles, it is evident that USA’s distilling industry is experiencing dramatic growth which shows that the market has several emerging opportunities. Hence, the company can adapt to two market entry strategies that would ensure the company’s survival and productivity in the long run.
1919 Distillery can enter the USA via an exports agreement that would allow both direct and indirect exports into the country (Pearl, 2017). This strategy is viable due to the free trade agreement established between the USA and the New Zealand, which thereby eliminates trade barriers. The NZ-based distillery can send direct exports to restaurants and hotels as the Americans are attracted by the exclusive and hand-crafted quality of Distillery (Risen, 2014)
This strategy would serve beneficial for 1919 Distilling since it would enable the company to enjoy complete control over production with a low foreign investment. It will also protect the organization from foreign governmental pressures such as inflated tax duties that would reduce the profitability of the organization. However, the USA government is getting stringent about the tariffs in the recent year, which can pose as a significant barrier in the 1919’s export framework (Dingwall, 2019).
1919 Distillery can also enter USA via a Joint venture agreement with a medium-sized distillery. As per the journal article, this step will enable 1919 Distilling to easily overcome the cultural and social barriers and attain the local product knowledge which is essential to successfully operate an international set up. As per the media article, the governmental regulations like the increased tax impositions are hurt-full to small enterprises, however the market entry as a joint venture will enable the distillery to share the taxes with a local partner, thereby mitigating the financial burden. However, recently the craft-based distilling industry has been impacted by COVID-19 due to which many small-sized distilleries are collapsing (King, 2020). Hence, 1919 Distillery should strategically find an accurate medium-sized enterprise so that the company can effectively integrate their activities and leverage the operations.
