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International%20Marketing%20Strategy

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Title: International Marketing Strategy Author: Miami Libraries Last modified by: Miami Libraries Created Date: 4/5/2005 11:52:38 PM Document presentation format – PowerPoint PPT presentation

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Title: International%20Marketing%20Strategy


1
International Marketing Strategy
  • Lauren Colvin
  • Patrick Lynch
  • Megan Revoldt
  • Kate Turkcan

2
International Entry
  • Identify a target market in the UK
  • Adapt the product to fit target market
    preferences
  • Design a supply chain that accounts for
    production and distribution
  • Implement a communications strategy to reach
    target market and induce trial of product

3
Segmenting the Market
  • 2029 age group
  • Metropolitan
  • University students
  • Young professionals, single
  • Need for convenient and inexpensive food option
  • Parents
  • Metropolitan Suburban
  • Middle to Upper class
  • Young childrenAge distribution between 514
    7,581,000
  • Age distribution between 2539 12,915,000
  • Influenced by children
  • 60 age group
  • Retired
  • Need for convenient food options

4
Target Market
  • 2029 Age Group
  • Age distribution 7,599,000 people
  • Single, working professionals
  • Students attending universities
  • Fast-paced lifestyle
  • Seeking convenient, inexpensive alternatives to
    eating out and cooking
  • Very brand conscious developed at an early age
  • The Student Pound 14 billion annually
    26,864,766,335
  • 43 of 18 24 year olds experience a form of
    higher education
  • Spend a good deal of time
  • At pubs and bars
  • At the cinema
  • In restaurants (mostly fast food)
  • Participating in sports

5
Target Market
  • VALS 2 Category
  • Experiencers
  • Young and compulsive
  • Excited about new products that will give them
    the edge, or new experience they desire

6
Target Market
  • PRIZM Segments
  • Young Influencials
  • Traditionally referred to as yuppies
  • Middleburbs, college graduates, young
    professionals
  • Up and Comers
  • City centers, more mature, athletic activities,
    and night life
  • Boomtown Singles
  • 2nd city, young working class, high value on
    functional and convenient things in their lives

7
Adapting Uncrustables to the Market
  • Modifying product to meet consumers preferences
    in the UK
  • Replace current peanut butter jelly and grilled
    cheese filling with the combined ingredients
    pizza sauce, cheese and pepperoni
  • 60 of frozen pizza salescheese and pepperoni
  • Replace white bread with thin layer of pizza
    dough
  • Pizza is one of the nations top 10 most
    frequently consumed foods.

8
Marketing Objectives
  • Expected Sales (dollars and units)
  • Frozen pizza sales US2004 2,782,254,592
  • Uncrustables sales US2004 27,500,000
  • Ratio 10.12 / 1
  • To account for first-year product introduction in
    a new market, estimated sales will be 2 of UK
    frozen pizza sales
  • Frozen pizza sales in the UK2004
    645,478,720.95
  • 645,478,720.95 (.02) 12,909,574.42
  • Estimated retail price 3.44 per unit
  • Total units sold 3,752,783

9
Marketing Objectives
  • Extent of Market Penetration
  • Population of Target Market 7,599,000
  • Objective is to induce trial and repeated
    purchase in 15 of target market.
  • 7,599,000 (0.15) 1,139,850 consumers
  • In order to reach expected sales value, each of
    the 1,139,850 consumers will have to spend
    approximately 10 on the product in 1 year

10
Brand Equity Positioning
  • Creating a strategic alliance with Goodfellas
    Pizza, produced by Green Isle Foods and owned by
    Northern Food Plc
  • Goodfellas is the leading frozen pizza brand in
    the UKowning 23 of the market.
  • 2004 sales--148,472,836.31
  • Average price range per unit1.942.99
    (3.695.69)
  • Positioned as a quality pizza, made with the
    finest ingredients and designed to create a
    fresh-baked pizza experience in your own home.

11
Brand Equity and Positioning
  • Partnership Agreement
  • Green Isle Foods responsible for producing
    product in Naas facility
  • Smuckers responsible for contracting
    distribution and storage
  • Specific marketing team responsible for the
    co-branding of product
  • Coordinate strategy consistent with Goodfellas
    and Smuckers image and reputation

12
Brand Equity Positioning
  • Top competitors
  • Chicago Town Pizzaowned by Schwans (US)
  • 2004 sales--109,435,758
  • Dr. Oetker Pizzafamily owned enterprise (GR)
  • 2004 sales--53,852,413.24
  • Positioned against the competitionGoodfellas
    Stuffed Pizza Pocket are an affordable,
    convenient, on- the-go, single serving of that
    great pizza taste that you expect from
    Goodfellas.

13
Product Branding Decisions
  • Brand Name
  • Goodfellas Stuffed Pizza Pocket
  • Product Decisions
  • Important factors
  • Convenience
  • Taste
  • Price
  • Cooking method
  • Portion size

14
Core Product Decisions
  • Stuffed Pizza Pocket
  • 6 inch diameter
  • Round in shape (like a small baked pie)
  • Thin layer of pizza dough stuffed with pepperoni,
    mozzarella and provolone cheese, Goodfellas
    specialty sauce and sprinkled with parsley

15
Packaging Decisions
  • Packaging Materials for Stuffed Pizza Pocket
  • Cardboard box
  • 1 stuffed pizza pocket wrapped in plastic
  • Package Design
  • Rectangular box
  • Size takes into consideration small freezers in
    the UK
  • Package Colors
  • Primarily red, white and greenconsistent with
    Italian cuisine

16
Labeling Decisions
  • Content
  • Brand Name
  • Visual of Stuffed Pizza Pocket
  • Nutritional Information
  • Ingredient List
  • Preparation Instructions
  • Shelf Life
  • Storage Conditions
  • Contact information for Green Isle Foods
  • Place of Origin
  • Bar Code

17
Distribution Decisions
  • Manufacture of Product
  • Green Isle Foodswholly owned subsidiary of
    Northern Foods plc
  • One of the UKs largest food manufacturers
  • Produce frozen convenience foods for the Irish
    and UK retail markets

18
Distribution Decisions
  • Green Isle Foods operates facilities in Ireland
  • State-of-the-art manufacturing technology in
    plants
  • Described as a specialist in food conversion /
    assembly, with manufacturing capability as its
    core competence.
  • Flagship facility for pizza is the plant in Naas,
    Co. Kildare
  • Recently expanded under a 25 million investment
    projectincorporated the most advanced baking,
    topping and packaging technology.

19
Distribution Decisions
  • Distribution of Product
  • McBurney Refrigeration Ltd
  • Full range of refrigeration haulage
  • Depots in Dublin and Liverpool
  • Cold storage and chilled food distribution center
    on a 12 acre site in Liverpool to service
    increasing food import traffic from Ireland

20
Distribution Costs
  • Trucking from production facility in Naas to port
    in Dublin (17 miles)
  • 2.11 per mile (17 miles) x 2 for refrigeration
    71.74
  • Round trip 143.48 per truck
  • Each truck can hold 10,000 lbs
  • One box 0.8 lbs
  • Each truck can transport 12,500 boxes
  • Need to transport 308,430 boxes per month
  • 308,430/12,500 25 trucks per month
  • 25 trucks x 143.48 3,587 month x 12 43,044
  • 43,044 34 markup 57,679 per year
  • Source Freight Transport Association of UK

21
Distribution Decisions
  • Distribution of Product
  • Dublin Port Company
  • The Gateway between Ireland and the World
  • Principal port in the Republic of Ireland
  • Positioned at the hub of national road and rail
    network
  • Has terminals and facilities to the highest
    industry standards

22
Distribution Decisions
  • Distribution of Product
  • Derek Horner Agencies Ltd.
  • Customs clearance is performed in-house
  • Full port agency services
  • Containers provided to suit all types of cargo
  • Temperature controlled containers
  • 1 sailing weekly from Dublin to Liverpool

23
Distribution Costs
  • Ferry from Dublin to Liverpool
  • 6 trucks per week holding 60,000 lbs of product
  • Shipping 60,000 lbs 22,800
  • Includes refrigeration and markup
  • 22,800 x 52 weeks per year 1,185,600 per year

24
Retail Distribution Regions
  • Shipping to 12 regions throughout the UK
  • Each region maintains 100 trucks, which operate
    through a centralized warehouse equipped with
    frozen storage facilities
  • Trucks then disperse to assigned retail outlets
    using a just-in-time inventory system

25
Distribution Decisions
  • Retail Outlets within UK regions
  • Tesco10 depots supply to 779 stores
  • Somerfield15 depots supply to 1,275 stores
  • Sainsbury12 chilled depots supply to 498 stores
  • ASDA19 depots supply to 258 stores
  • Safeway18 depots supply to 481 stores

26
Distribution Costs
  • Trucking from Liverpool to regions, then regions
    to retail outlets
  • 1,200 trucks total
  • Cost per truck 1,564
  • 1,564 x 1,200 trucks 1,876,800 per year
  • Storage costs throughout the 12 regions
  • 10,000 per warehouse in each region x 12 regions
    120,000 (markup and refrigeration included)
    per year

27
Total Costsper unit
  • Production costs 15 of 2.50 retail price (US)
    0.38
  • Truck from Naas to Dublin 0.02
  • Ferry from Dublin to Liverpool 0.32
  • Trucking throughout UK 0.50
  • Storage in UK 0.03
  • Total cost per unit 1.25
  • 50 markup
  • Total revenue 1.87
  • 60 markup 1.12
  • Retail before tax 2.99
  • 15 markup 0.45
  • Retail after VAT 3.44 1.80

28
Promotional Budget
  • Profit per unit 0.62
  • Total profit 2,326,725
  • Northern Foods receives 55 of the profits
  • 35 of profits go towards compensation for
    production costs which are 30 of the total costs
  • Payment for use of Goodfellas brand name 20
    of profits
  • Northern Foods profits 1,279,699
  • Smuckers profits 1,047,026

29
Promotions Decisions
  • Communication Objectives
  • Create awareness of the Goodfellas Stuffed Pizza
    Pocket among 25 of the population between the
    age of 2029, specifically those in need of a
    convenient, affordable and quality product within
    one year.
  • We hope to stimulate trial among 15 of target
    population.

30
Promotions Decisions
  • Overall Message
  • Stuffed Pizza Pocket is an affordable, easy to
    prepare and consume product for those on-the-go
    and time-constrained members of the target
    market.
  • Purpose of the productmake the daily hassles of
    cooking less of a burden for the target market.
    Allows them to focus their energies elsewhere.
    The size and quantity of the product make it a
    reasonable substitute for a traditional meal.

31
Promotional Decisions
  • Creative Strategy
  • Deliver clear, compelling message
  • Emphasize what is important to target market
  • This age group cares about saving money
  • Consistent message
  • The Big Idea
  • Keeps you and your wallet stuffed

32
Media Vehicles
  • Outdoor Advertising91 of promotional budget
  • 952,794
  • Objective Create awareness and stimulate
    interest in product among the target market
  • Reach and Impact
  • Increases product credibility
  • Strategically placed in high traffic areas and
    easily viewed
  • Creative and memorable

33
Media Vehicles
  • Outdoor Advertising
  • Billboards
  • Contract with ClearChannel Billboards
  • Purchase campaign type National Cover A which
    allows for 100 billboards throughout the UK
  • The budget will not allow for continual display
    of billboards throughout the one year period
  • Billboards will appear at the introduction of the
    product to create awareness and will reappear
    throughout the year to serve as a reminder to the
    target market
  • Billboard expenditure 688,745

34
Media Vehicles
  • Outdoor Advertising
  • Ambient Media Expenditure 264,049
  • Viacom Media offers general site packages for
    Tube display

35
Media Vehicles
  • Sales Promotions9 of promotional budget
  • Objectiveto engage and motivate potential buyers
  • Supplementing advertising and facilitating
    personal sellingpromotional giveaways
  • Goodfellas and Smuckers brand reps distribute
    t-shirts at local pubs/bars in each region
  • 12,000 t-shirts x 0.33 ea. 3,960 per month
  • Annual cost 47,520
  • Generate buzz and word-of-mouth
  • Sales promotion expenditures 47,520

36
Media Vehicles
  • Public Relations
  • Objectiveto promote a positive image, generate
    publicity and foster goodwill
  • Promotion on Green Isle Foods website
  • Promotes that product is available and relatively
    inexpensive method of communication
  • Other Examplesmedia coverage, hosting special
    events and sponsoring charitable campaigns
  • Disadvantagescost, lack of control
  • Not feasible at this time beyond website
    publicity

37
Media Vehicles
  • Direct Marketing
  • Objectivethis form of advertising is aimed
    directly at target consumers, usually in their
    homes, attempt to get them to take action
  • Examplescatalogs, coupon mailers and letters are
    common forms of direct marketing
  • Not an effective approach to reaching target
  • Not feasible at this time

38
Media Vehicles
  • Event Sponsorship
  • Objectiveopportunity to reach niche market,
    create awareness and enhance image
  • Relatively new product and Insufficient funds
  • Not feasible at this time

39
Media Vehicles
  • Advertising
  • Any paid form of media communication
  • Televisionhigh absolute cost, high production
    cost, short message life
  • Radiolow attention getting, audio only
  • Print
  • Magazineslong lead time for placement, visual
    only
  • Newspaperspoor reproduction quality, selective
    reader exposure
  • Disadvantagescost, lack of feedback
  • Not feasible at this timewill pursue options
    upon growth of product

40
Summary
  • Target market20-29 years old
  • Strategic alliance with Goodfellas Pizza
    (Northern Foods plc)
  • Stuffed Pizza Pocket Keeps you and your wallet
    stuffed
  • Produced in Ireland and distributed throughout 12
    UK regions
  • Product promoted through outdoor advertising,
    ambient media and sales promotions
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