Positioning and Opportunity Assessment Report with main focus on Germany, China, USA, New Zealand

The establishment of an English Tea Company

Term Paper , 2010 , 40 Pages , Grade: 1,3

Business economics - Offline Marketing and Online Marketing

PESTLE-framework

In order to analyse the macro environmental influences which have a considerable impact on Bettys, the English Tea Company located in the north east of England, it is economically reasonable to look at the PESTLE framework. This framework is a useful tool to understand the environment in which an organisation operates. Environmental influences never influence an organisation to the same extent, for some organisations any changes in the surrounding environment will pose a threat but for others those changes might be favourable. “Also, it will affect some organisations favourably whilst posing a threat to others” (Johnson,G., Scholes,K.,2002, p.102). The PESTLE- framework categorises the influences of the environment into six types: political, economic, social, technological, legal and environmental.

Market Entry Strategies - Entering a new market is always a critical and fundamental decision due to the advantages and disadvantages of each entry strategy, which will have an influence on the organisation's performance. “Furthermore, the choice of entry method will involve the firm in a long-term commitment from which it might find it hard to extricate itself without some cost.” (Chee,H., Harris, R.,1998, p. 292). According to Chee and Harris (1998, p. 291)
“(...) it is not a practical strategy to enter all markets with one single entry method; many large companies adopt multiple entry strategies (...)”.

Indirect Exporting - As illustrated in the graphics, indirect exporting involves the lowest risk factor when entering a foreign market. This is an ideal strategy for companies that have not got any contacts to the foreign market. Bettys could sell its products to an intermediary in Yorkshire, who himself then sells this products to the German market. The intermediary possesses the know-how and the resources that are necessary when entering a new market successfully.

Direct Exporting - Direct exporting allows Bettys to gain far more control about the international activities, however, the risk of failure is higher due to the costs in marketing, administration and distribution which the company has to absorb. One of the most common direct exporting strategies is franchising.

Direct Investment - Foreign direct investment is an opportunity for Bettys to become more actively involved in the international business activities. In its classic definition, FDI means investing into building a factory abroad

Inhaltsverzeichnis (Table of Contents)

• Part 1 Opportunity Assessment
• 1.0 Glossary
• 1.1 List of Figures
• 1.2 Executive Summary
• 2.0 Introduction
• 2.1 Macro environment of international market
• 2.2 PESTLE Framework
• 2.3 Key Facts New Zealand
• 2.4 Key Facts China
• 2.5 Key Facts USA
• 2.6 Key Facts Germany
• 3.0 Market Segmentation by Industries
• 3.1 New Zealand
• 3.2 China
• 3.3 USA
• 3.4 Germany
• 4.0 Geographical Variables – Businesses Portfolio Matrix
• 4.1 Competitor Analysis
• 5.0 Recommendation
• Part 2 Market Entry Strategy
• 6.0 Market Entry Strategies
• 6.1 Indirect Exporting
• 6.2 Direct Exporting
• 6.3 Direct Investment
• 6.4 Cooperate Strategies
• 6.4.1 Joint Ventures
• 6.4.2 Strategic Alliances
• 6.5 Marketing Plan
• 7.0 Market Entry Strategy for Bettys
• Part 3 Implementation of Bettys Marketing Mix
• 8.0 Company Analysis - SWOT
• 8.1 Marketing Mix
• 8.1.1 Product
• 8.1.2 Price
• 8.1.3 Place
• 8.1.4 Promotion
• 8.2 Stimulus Response Model
• 8.3 Bettys in Germany
• 8.4 Conclusion

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This report aims to provide a comprehensive assessment of the international market opportunities for Bettys and Taylors of Harrogate Limited (Bettys), focusing on four key markets: New Zealand, China, USA, and Germany. The report analyzes the macro-environment of these markets, investigates market segmentation, and evaluates potential market entry strategies.

• Market analysis and segmentation
• International market entry strategies
• Marketing mix implementation
• Competitor analysis
• SWOT analysis for Bettys

Zusammenfassung der Kapitel (Chapter Summaries)

Part 1 of the report focuses on opportunity assessment. It begins with an introduction to the macro-environment of international markets and applies the PESTLE framework to analyze the key factors in each target market. The report further segments each market based on specific industries, specifically focusing on the hot drinks market. The chapter concludes with a geographical analysis using the Business Portfolio Matrix and a competitor analysis based on Porter's five forces model.

Part 2 delves into market entry strategies for Bettys. It explores different market entry methods, including indirect exporting, direct exporting, direct investment, and cooperative strategies like joint ventures and strategic alliances. This section also outlines a marketing plan for Bettys' international expansion.

Part 3 focuses on the implementation of Bettys' marketing mix. It begins with a company analysis using the SWOT framework and then examines the product, price, place, and promotion elements of the marketing mix. The chapter concludes with a discussion of the stimulus response model and Bettys' potential entry strategy for Germany.

Schlüsselwörter (Keywords)

The report focuses on key concepts such as international market analysis, market segmentation, PESTLE framework, market entry strategies, marketing mix, SWOT analysis, competitor analysis, and the stimulus response model. It also explores specific industries like the hot drinks market and countries like New Zealand, China, USA, and Germany. The report aims to provide insights into the potential of Bettys' international expansion and the factors influencing its success.

• College: Leeds Metropolitan University
• Grade: 1,3
• Author: Letizia Zisa (Author)
• Publication Year: 2010
• Pages: 40
• Catalog Number: V171404
• ISBN (eBook): 9783640914173
• ISBN (Book): 9783640914555
• Language: English
• Tags: positioning, opportunity, assessment, report, germany, china, zealand, english, company