8 pages/≈2200 words
Business & Marketing
International Marketing Plan (Essay Sample)
i had to analyse the product TimTam its company and the new market to be ventured in Saudi Arabiasource..
International Marketing Plan
Tim Tam, a brand of chocolate biscuit, is a food company, known as Arnott, from Australia, and is available in many countries in the world.
The biscuit has two layers of chocolate malted on cookies, and they are separated by a light filling of chocolate cream, as well as, being coated in a thin layer of chocolate. The product was first introduced in the international market in 1964, and the name was suggested by Ross Arnott. It came from a horse that won, and the name was decided to be the best for the new line of the biscuits.
There are various brands of the product and the most common three flavors include Chewy Caramel, Original and Classic Dark. However, the varieties are dependent on the nature of the region they are being marketed. For instance, the most common products in the US are Choco Cappuccino and Choco Chocolate, which are also marketed for the South East Market. In order to increase sales for the product, Arnott Company has decided to shift its market to Saudi Arabia, which is a potential market for the product. This can be attributed to the features the potential market has in order to attract sales for the company (Doole & Lowe, 2008).
The Company can trace its inception long back in Australia more than 100 years ago. It is considered as the icon of Australia in the food industry. It has been regarded as not only the parent food company for all other food companies, but also a piece of the history of Australia. Campbell Soup Company is behind the support that has enabled the growth of Arnotts because of its investment in the food company as well as its brands. The company has more than 2500 employees across all territories and states whose main region of employment is the Asia Pacfic.
This growth has been enabled by the investment the company has made on the cost of materials. Over the past decade, the company has spent over $3 billion in purchasing raw materials and getting services from local businesses and farmers. Some of these raw materials include flour and grains from areas such as Riverina, Liverpool Plains and South Australia. This is one reason why the company has experienced success since it does not limit its sources of raw materials. Its involvement with the local farmers and businesses has helped in creating market for the company. It has exported in countries including Canada, USA, Tahiti, United Kingdom, and Indonesia. Currently, the company targets Saudi Arabia as the new market for its sales (Mühlbacher, Dahringer & Leihs, 2006).
Through the Arnott’s foundation, the company aims at creating a positive environment in order to allow families to form, maintain, as well as enjoy a good quality of their lives. From the statement, the foundation has been inspired to carry out several projects which include the Fairy Sparkle Garden Project, which has built a garden for children and Food bank Australia which will help welfare agencies to provide food to needy people. So far, the company has been able to donate more than 200,000 kilograms since 2008 in Australia.
The company has its strengths, weaknesses, opportunities, as well as threats as discussed below.
wide product line
The company enjoys a broad product line from different countries and markets. Apart from biscuits, the company also has other products that are a favourite of people who do not eat biscuits. For this reason, the company has maintained a broad market and competition has been low. The company has held strong customer loyalty in most countries where it has established its roots in the country. In addition, whenever there is a low production of one product, another product can be used as a substitute to help the company maintain its sales high until the other product is back to its normal marketing patterns.
Strong global presence
Arnott’s Australia has a strong global presence in the countries that it has already established its market. In this context, most of the countries which the company has introduced its market are economically stable, and its sales are not disrupted by economic and political issues. Therefore, it is normal that the company extends its markets in the countries and invests more. This creates more markets in these countries and the reputation of the company increases every time. In addition, the company is ready to adapt to the policies of the countries it establishes its markets, and for this reason, it gains more market and respect. Its participation in social responsibilities increases its markets in all areas where it is known for its products. Its investment in new countries has always been welcomed by the countries because of the worldwide presence it has created (Baumann, 2010). Therefore, this counts as a strength since there is ease in its way of operation as a company.
Because of its diversified marketing and production, the company incurs extremely high costs that require intensive sales for it to break even and create profits for the company. For the company to establish markets in other countries, costs of establishments are high such that the company has to increase its marketing in other countries (Stauble, 2000). The legal requirements of a country may be very expensive during the start, and the company may destabilize if it does not have adequate marketing strategies. Production of the company may tend to be expensive for the company is in the food industries. The farmers have to meet their expensive needs for the produce, which are shifted to the company. In addition, the company faces higher costs of storage of the food products before they are manufactured to be the final products. However, despite the high costs, the company has to monitor the products ’prices, since too high prices will make the customers shift to the competitors.
75% of population under 35 years old
The target market for most of the products of the company is people under the age of 35 years. In the target market, Saudi Arabia, a three quarter of the total population is people under 35 years old, and hence, this constitutes the market of the company (Bennett & Blythe, 2002). In the current situation, the highest population in the market is about people below the age of 35 years, and this helps in making them find the biscuits good for them
High demand on biscuit
There has been a high demand on the biscuit because of the nature of its preparation. The biscuit has two layers of chocolate malted on cookies, and they are separated by a light filling of chocolate cream, as well as, being coated in a thin layer of chocolate. This makes it favorable for the young population to like it because of the ingredients used in making the biscuits.
Too many competitors
The presence of the competitors in the food industry has been a big threat to the company. They have controlled the prices of the food products for the company, and this makes it difficult for the company to control the prices beyond what the competitors define. In addition, the company spends a lot in marketing and product promotion of the products, since it has to beat its competitors. Intensive research has to be done on the market so that the company understands more about the market and gets opportunities for any market gap in the market.
Since the competitors control the prices, it has been quite hard for the company to have a say. At times, the costs of production are too high for the company to bear and this may prompt it to increase the costs, though it is not possible or else it loses its market.
Monarchy. Saudi Arabia is a country that is ruled by a monarchy, which is headed by a king. Therefore, the company must ensure that its business is in line with the policies of a monarchy, and understands all the regulations that regulate a business in a monarchy.
Business-attractive government laws. Saudi Arabia has been providing a comfortable environment for establishment of businesses in the monarchy. It has been known for thriving of businesses in the past, and hence, having a food company in Saudi Arabia is a better option to make sure that there are sales for the biscuits in the country.
The King rules through a Council of Ministers. The King has been given the power to govern the country through a council of ministers. The ministers represent various sectors of the economy and they act as advisors of the king in every matter pertaining the country.
Saudi Arabia is divided into thirteen provinces. These provinces are all over the country and have administrators who are answerable to the king.
The provincial boards have been given the authority
Since oil was unearthed in 1938, Saudi Arabia has enlarged to be among the wealthiest countries. Therefore, there is ready market for the food products such as biscuits that are not basic products. Companies that are formed in the country quickly raise and establish their markets easily.
The country earns over 5% of the whole production of petrochemicals in the world.
Capitalist Economy. Being a capitalist economy, Saudi Arabia encourages investment of individuals and corporates in the country. This means that Arnotts’ Australia should find it comfortable establishing a company in this country since its economic system is capitalistic.
GDP represents $622 Billion and Growth has a percentage of 3.7%. This percentage of growth of the country is reasonable enough in a way that it encourages investment from other companies including foreign ones. Foreign investment is encouraged so that more foreign income is exchanged and growth is experienced in the economy.
More than 40% of the entire G...
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