International Marketing Plan
Executive Summary
VBites is a popular plant-based meat alternative company and has a popular image in the global market and looks to expand plan for expanding market to a new location in the future. The report provides an international marketing plan focusing on expanding the products of VBites in the new market of China. There is presence of huge amount of opportunities prevailing in the market of China that will help in improving the productivity of the organization. The organization focuses on providing a wide range of crispy and nourishing juicy meat-free pizzas and other vegetable products for the customers in China. In this report, there was development of SWOT and PESTLE analysis for evaluating present market conditions in China and create adequate growth in the market. There has been a formulation of joint venture strategy for entering and positioning the firm as a renowned company in U.K. market. The firm has developed suitable targeting strategy by focusing on young, food-loving consumers in the Chinese market and uses appropriate promotional plans for customers. Thus identifying possibilities of sales and growth VBites has decided to invest in Beijing City for its venture in China.
Macro-Environment
| Political and Legal Forces
· Presence of weakness in the overall stability of political conditions in China · Lack of political freedom provides direct effect on operations · Increase in the restrictions imposed by Chinese Government such a licensing and other venture provides direct effect on business · Development of various types of laws and regulations including protection, intellectual, and labor laws in the country. · Imbalance in overall growth due to political instability |
Economic Forces
· Development of steady growth in the GDP rate of China with an increase to over 10% in the current year. · Formulation of a systematic foreign direct investment policy · Increase in the overall consumption of alternate meat products industry · Presence of a high buying power among customers in China · Development of high growth in the industry contributes to the overall economy |
| Socio-Cultural Forces
· Constant changes in the preferences and tastes of customers in china · Ability of high purchasing power developed by Chinese Consumers · Increase in the spending pattern of the customers · Availability of high amount of population in the literacy rates that helps in attracting young and food-loving customers · Formulation of appropriate procedures for focusing on the modernization principles in the country. |
Technological Forces
· Development of innovation in the technological advancement in China · Increase in the overall influence of the various type of modernization and e-commerce platforms · Increase in the overall development of adapting to various features used in maintaining various features like standardization, labeling, etc · Procurement of wide range of innovation in the technology for managing the preferences of customers |
The table representing PEST analysis depicts various conditions present in the Chinese market and helps to provide a suitable analysis of the overall conditions in the country. It can be analyzed that launching the protein-based plant veg products like pizza, burgers, and sausages produced by VBites provides a wide range of growth opportunities in the market of China. Also, growth in the consumption of alternate meat-based products provides extra opportunities for expanding the products in the Chinese market (Chang and Hu 2020,). There is also the development of a suitable high spending buying pattern developed by Chinese consumers and innovation in the latest technologies adds stability in the operations of VBites and throws light on managing to influence business opportunities in market of China.
However, presence of large amount of political instability and restrictions developed by the Chinese government creates suitable threat for carrying on and launching products in the market. Hence, the adoption of strict laws and the effect of imbalance in the existing political stability in the existing market of China provides a direct effect on conducting expansion plan for launching products of the firm in the country (Hu, 2018). There is suitable evaluation of the appropriate factors developed for creating appropriate strategies for launching products in China and develops suitable position in the future. [Refer to Appendix 1]
Competitor Analysis
There are number of competitors that provide a direct effect on the operations of VBites after entering the market of China. It can be analyzed that presence of competitors has provided a direct effect on the operations of the company. The competitors of VBites present in the Chinese market are as follows:
Beijing Huiyuan Group
Beijing Huiyaun group is one of the leading and top rivals providing a fresh range of alternate based meat products for the customers. The firm provides wide range of products for providing suitable products for customers and has a strong edge in the Chinese market.
Haiyang Haiyang Food Co Ltd
The organization is one of the popular and traditional based organizations providing alternate based meat products in china and looks to create suitable products for the customers. The organization provides a wide range of products for providing affordable and quality vegetable products for a large number of customers.
In this regard, it can be evaluated that VBites have to face several challenges while operating in the market of China and develop a strong position in the market. According to the findings, it can be established that the organization needs to develop an innovation strategy for providing suitable vegetarian and natural-based products for the wide range of people in China and provide strong competitive edge in the market (Qi et al. 2020).
The procurement of the competitive edge in alternate meat-based products provides increase in the overall growth to over 10% in the Chinese market. There is the development of suitable brad image developed by VBites for improving current operations in the market of China and provide a strategic edge in the market. This implements that the evolution of the appropriate strategy provides additional advantages for developing operations and develops appropriate strategies for entering the new market of China (Andersson et al. 2018). Besides, there is presence of strict competition faced by the organization to expand its operations in China.
Opportunities and Threats
| Opportunities
· Development of an increase in the total consumption of the alternate meat-based products by consumers in China · Rapid effect of modernization in the present culture affects attitude of customers · Innovation in the growth opportunities or managing the specific needs and wants of customers in China · Preference of large amount of consumers in China for adopting plant-based meat products like pizza, sausages in the country · Creates a wide range of innovations in procuring appropriate process for improving ventures in China
|
Threats
· Development of large amount of restrictions imposed by the government of China for procuring new ventures in operations. · Fluctuation in the systematic formulation of policies and procedures for managing business in the country · Constant changes in the preferences and tastes of Customers · Presence of large amount of threats from local branded competitors residing in the local region
|
Opportunities
There are rapid development and preference of customers by providing a suitable preference for the adoption of the customers for procuring alternate based vegetable products for VBites. In this regard, innovation in the existing procedures provides direct effect for creating a wide range of standardization in the techniques and provides quality products for the customers in the country (Alon and Kruesi, 2019). The procurement of modernization affects minds of customers and helps in creating positivity for reducing inefficiency and attracting bulk amount of customers in the existing market of China. This is useful for attracting large amounts of population and creates suitable position in the market for expanding operations by VBites.
Threats
In China, there is procurement of several restrictions imposed by the government which provides direct effect on the operations and reduces expanding opportunities for establishing suitable policy for expanding for VBites. Besides, the growth of local renowned competitors providing alternate meat-based veg products provides a direct effect on operations and weakens current position in the market(Aslam, 2019). The constant changes in the tastes and preferences of consumers in China provides direct effect on the operations and reduces profitability for managing appropriate operations in the existing market for VBites.
| Strengths
· Presence of a global brand over various countries · Provides a wide variety of meat-based products and creates a strong brand image · Enhancement in procuring appropriate measures for improving a wide range of satisfaction among customers · Development of divestment policy in the existing product folio
|
Weaknesses
· Inefficiency in adopting systematic structure for managing procedures within the organization · Lack of affordable policies for standardizing products and provide quality products for customers · Necessity for providing strong innovation policies in managing technological aspects in operations. · Inability to maintain suitable adoption policy |
Strengths
From the above analysis, VBites has a strong global presence in the market that helps to improve existing positions in the market. The utilization of a suitable presence by the company in various parts of the global scenario provides a direct impact on the brand image and helps to attract a large number of customers (Watson IV et al. 2018). The organization creates adoption of divestment policy for managing the current product portfolio and provides a suitable competitive edge in the market.
Weakness
VBites lacks in procuring affordable policies for creating standardization in the various ranges of products that provide a direct effect on the operations. In this regard, the failure of systematic adoption of policies and procedures results in developing inadequate policies for providing suitable products for the large brand of customers (Cateora et al. 2020). This creates sense of indispereancy in operations and provides quality products for a large number of people in various parts of the market. [Refer to Appendix 2]
Marketing Objectives
The development of appropriate marketing objectives created by the organization for establishing an overall position in the Chinese market is as follows:
- To increase brand image by over 15% in the time span of over 5 months
- To develop an appropriate range of satisfaction among the customers by over 12% over the next period of over 3 months
- To create a better observation among the customers by developing an increase in product usage over 10% over the next time of over 4 months
- To improve existing growth pattern in the market of the organization by a total of over 7% in the coming 3 years
Market Entry Strategy
The management of VBites needs to adopt a joint-venture strategy for procuring expansion in the new market of China and develops systematic growth in the market. The adoption of the strategy ensures that the firm should develop a strategic partnership with a renowned local organization residing in Beijing region in China. This strategy provides equal effect on balancing the operations and provides a systematic strategy for improving popularity of the company in the local market (Prange and Zhao, 2018).
Besides, the utilization of a joint-venture strategy provides adequate opportunities for VBites to share risks and profits in operations with the local and renowned competitors in China. This is a suitable procedure for entering in the market of China and spread popularity among the customers in the market. The utilization of a joint-venture strategy is useful for reducing inefficiencies in operations and provide suitable enhancement in creating a systematic financial structure and improves popularity in the exiting market of the country (Agarwal and Wu, 2018). Hence, this joint-venture strategy is the best strategy adopted for VBites for entering in the existing market of China.
Marketing Strategy
Segmentation
In the current aspect, it is vital for segmenting entire Chinese market and dividing whole range of customers into various groups based on the overall preferences in the market. This procedure is vital for VBites to procure an appropriate strategy for entering the new market of China and identify most appropriate bases of customers (Checchinato et al. 2017). The procurement of appropriate market segmentation based on the segments present in the Chinese market is as follows:
| Segment | Characteristics (demographics, psychographics, media habits, etc.) |
| Demographic Segmentation | There is an entire division of the customers based on the age and income levels of the young sections of adults and the income levels in China. This helps in identifying suitable needs of customers by analyzing various aspects of the market. Most of the citizens in China belong to high-class sections in the market and affords to buy wide variety of luxury products (Liu and Atuahene-Gima, 2018). |
| Psychographic Segmentation | In China, bulk of the customers procures various types of patterns in creating suitable products for the customers (Tsai et al. 2020). The management of VBites has to develop a systematic strategy for dividing the entire market into various segments and procure products in the country of China. |
| Behavioral Segmentation | Most of the people in China prefer to adopt wide range of sustainable and innovative products in the market. This provides a direct effect on evaluating existing buying patterns of the customers regarding buying of the products and provides a sustainable edge in China. The people living in the country prefer to adopt various types of alternative substitute based products and improve popularity (Fragouli and Nikolaidou, 2019). |
Targeting
There has to be development of appropriate strategy by the management of VBites for launching products in the existing market of China. Hence, there should be utilization of differentiated marketing strategies for reaching a large number of people residing in the current market. The management should develop suitable strategies for reaching out to the young and food-loving sections in the current society living in the country. This provides procurement in formulating affordable strategies for increasing efficiency and establishes popularity in the market by focusing on providing products for the veg sections in the existing country (Sminia, 2017). Thus, procurement of systematic strategy creates an appropriate range of popularity in the operations and develops competitive advantage for providing suitable products to the appropriate customers.
Positioning
The management of VBites needs to develop an appropriate strategy for reaching out to the customers in China by selling the veg products at various stores related to grocery products at low prices for the customers (Kotabe and Helsen, 2020). This provides procedure for procuring a systematic unique selling proposition for reaching out to the various sections in the market. In this aspect, the bulk of the customers present in China tends to prefer various types of non-meat based products and position itself as a strong organization.
Perceptual Map
According to the evaluation of perceptual map for total number of veg food consumers present in China depicts that there is presence of an intense amount of competitive rivalry among the competitors in the industry. This procedure depicts that bulk of customers prefers in adopting suitable branding of the products and provide high personalization in managing the various attributes of the products in suitable process (Keegan, 2017). It provides an extensive analysis for creating a positive perception of the people in China towards buying of the veg products in the future and improving overall productivity. [Refer to Appendix 3]
Marketing Mix
Product
VBites focuses on providing wide variety of substitutes large amounts of meat-free based products for the customers. The procurement of plant-based meat-free sausages, pizzas, and burgers is made from natural ingredients and creates freshness in the products. The product line of the firm adopts variation in adapting to the local tastes and preferences of the local people in the Chinese market. Hence, there is adoption of standardization in creating innovation in labeling style for providing a unique proposition for the large section of the people (Peng, 2018).
Price
The management of VBites should look to develop a suitable pricing strategy for developing tough competition for competitors in china and reach out to the customers. There should be a focus on adopting penetration pricing strategy helps in creating low prices of relative products to the people and gain popularity (Chyi et al. 2019).
Place
There should be a selection of an appropriate network for distributing and transporting various products of VBites in an efficient process to various markets (Zhu and Gao, 2019). This procedure provides an effective network for managing transportation framework and quickly reaches out to various sections of customers in China. Thus, there is a development of intensive strategy for managing perspectives of customers and attract more people in the Chinese market.
Promotion
In the existing era, VBites should focus on procuring innovative promotional methods for reaching out to the targeted sections in the market in China. There should be utilization of social media platforms and also various forms of media for attracting wide number of customers in the existing market of China. This is a suitable promotional strategy for reaching out to appropriate sections in China and develops popularity. [Refer to Appendix 4]
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Appendices
Appendix 1: PESTLE Analysis
Appendix 2: SWOT Analysis
Appendix 3: Perceptual Map
Appendix 4: Marketing Mix