GLOBAL MARKETING AND SALES MANAGEMENT ASSIGNMENT SAMPLE 2022
Globalisation enforces business organisations to expand outward without worrying about geographical barriers and thus business strategies are evolved through the inclusion of cultures, beliefs and values in marketing management. The management of sales is quite significant for Multinational companies to achieve sustainability in the foreign market which relies upon the buying behaviour and product viability in the market trend.
Haribo, the pioneer in making gummy Candy, started its journey from Germany in 1920 which had just completed 100 years in business operation. The company outstretched its market area in more than 100 countries employing more than 7,000 employees to supply the global demand (HARIBO. 2022).
Companies have to prepare a roadmap to enter the foreign market and market analysis has made it possible to identify the key aspects and opportunities in the foreign market towards the business direction to optimize the profit generation.
This essay will portray Haribo’s international business strategies through accommodating the market analysis of the United Kingdom (UK)(Country A) and Bangladesh (Country B), market entry strategies in both countries with marketing mix decision making for business proficiency. Further marketing mix decisions over 4P of product, place, price and promotion to articulate the business routine in both countries.
2. International Outlook of the Haribo company
Haribo was born in Germany in 1920 at the hand of Hans Rigel who was a trained confectioner and now became the global market leader of fruit gummies and liquorice. Haribo products are available in more than 100 countries across the globe with manufacturing hubs in 16 locations in 10 countries to keep continuing the supply chain operation globally (Refer to Appendix 1).
Further, 1,000 different products are coming under Haribo production and supplied to the global market to keep satisfied children and grown-ups with a variety of designs and recipes for fruit candies, gummy candies liquorice and confectionaries. The identity structure of the Harbo company is monolithic named after combining the founder’s name and Bonn City which became international during the 1960s (Rongvaux, 2019).
The products of the company are categorised in fruit gummies, candies, and fizzy cola where Goldbears and happy cherries, happy cola has a popular image in the marketing operation and have helped to gain a competitive advantage in the market.
The marketing capabilities are bundles of skills and embedded knowledge of the organisation’s process and routine that is difficult for rivals to imitate. The marketing capabilities in the international market are utterly different from the domestic market operation and depend on many crucial factors of international relationships and geopolitical balances (Morgan et al., 2018).
The company has introduced several products and varieties in the market to become the market leader in non-chocolate and liquorice products which crosses the mark of sale by $3 billion in march 2019 (Igbr.org. 2022). The company has a sustainable market share in different markets and clubbing together accounted for approximately 14.5% of the global market (Refer to Appendix 2). The main market competitors of Haribo are Cadbury, Perfetti van Melle, Storck, Ferrara, Morinaga and Co., Nestle, Mondelez International and others (Refer to Appendix 3).
3. Brief analysis of the marketing environment of the United Kingdom and Bangladesh
a) Macro environment of the UK and Bangladesh
|Country- United Kingdom (Country A)||Situation||Risk|
|Political||Stable democracy and strong relations with the world order||Low|
|Economical||GDP is $3.19 trillion, and inflation is 2.5 in 2021(Data.worldbank.org. 2022), UK is a free market economy which typically presents a mixed economy||Low|
|Social||Unemployment rate 2.5 in 2021, highly educated society||Low|
|Technological||High technical adaptability, innovations and digitization, The Government has allocated around £ 25 billion spanning in next 3 years||Ease of doing business|
|Environmental||The Environment Act, 2021 needs to follow the Green economy and NetZero emission target (Parliament. uk, 2022).||High|
|legal||The cocoa and chocolate product England Regulation, 2003 where Food Safety Act, 1990 is reinforced (Legislation.gov.uk. 2022.) and Brexit uncertainties||Low|
Table 1: PESTLE analysis of the United Kingdom
|Political||Stable, democratic, friendly relations with India, U.S and others||Low|
|Economical||GDP is $416.26 billion in 2021 as it is massively affected due to the Covid-19, with an inflation rate of 5.5 (Data.worldbank.org. 2022). Bangladesh is an emerging market which is a mixed economy||Moderate|
|Social||Unemployment rate 4.4, low literacy rate, high population growth, corruption and violence, Covid-19||Moderate|
|Technological||Lack of proper technical infrastructure, and adaptability||High|
|Environmental||Environmental Conservation Act, 1995 and Environmental Conservation Rules, 1997 (Bangladeshbiosafety.org. 2022)||Low|
|Legal||Exchange rate fluctuation, business relationships forging in a political and legal way||Moderate|
Table 2: PESTLE Analysis of Bangladesh
b) Macro environment of the UK and Bangladesh
The consumers of the UK are having high purchase power parity and experience high consumerism in practice which helps the business to prosper with a growing sales margin. UK consumers are highly loyal to the brand and nearly 95% of the population spends in digital windows to engage with the physical market as online shopping.
The consumers are price sensitive where competitive pricing may attract the UK population towards the brand along with the Omni channel marketing strategy. However, open-mindedness and mixed ethnic and religious groups have enriched the taste buds of the UK population for being satisfied through diverse recipes. The psychological factors of cognitive,
volitional and emotional aspects of consumers are greatly affected by the culture and practice habits of the population for making purchasing decisions (Bhaskar, 2021). The market competitors of Haribo in the UK market are Largo Food, Pwani, Khong Guan and Highgashimaru where Haribo has strong financial influence in market competition with its business rivals.
On the other hand, Bangladesh is an emerging market where consumerism is still not addicted to the common customers and more than 60% population living in the rural areas generally inherited the rich Indian culture and unique taste to savour different cuisine and recipe.
The children are fond of gummies and candies where the politico-religious nature may affect the free market consumers with cultural barriers ahead of decision-making intentions. The competitors of Haribo in the Bangladesh market are Nestle, Mondelez, PRAN and other international companies that are financially strong and may affect Haribo’s business venture negatively.
4. Market entry strategy
The joint venture is the appropriate market entry strategy for Haribo to make an entry in the UK heartland which forms through the collaboration of a domestic market player with Haribo to forge relationships and start making the business transaction with the consumers.
The joint venture strategy is beneficial for its scope of accessibility in foreign markets and distribution network of the partner, increased capacity, sharing the cost and risk with the partner along with the access to technology, finance, skilled employee and expertise knowledge. Further, the inter-partner relationship dynamics depend on collaborative communication, absorbing capacity, learning, power, symmetry and trust are the driving factors for successful joint venture operation (Bamel et al., 2019).
On the contrary, fully owned subsidiaries remain a bright strategy to make an entry into the foreign market of Bangladesh for Haribo. Governance structure, franchise network growth and performance outcome are three wide aspects of knowledge management to bring the business strategy through mitigating inter-organizational conflicts and future directions with opportunities (Iddy. and Alon, 2019). The franchising and fully owned subsidiaries have benefited from the scope of vertical integration, risk management, diversification and favourable tax structure in the foreign market.
Market segmentation is the process of business management through defining and identifying the potential consumer market from the broad population which further helps in targeting and positioning through integrated marketing advertisements. The gummy, candy and liquorice products are behaviorally popular for children, teenagers and grown-ups.
The age of potential customers is 4-24 years old while the parents of the kids are also the successive buyer of the company product to satisfy the children’s psychology with different colours, sizes, designs and toy structures. Furthermore, once the segmentation was done the company concentrated on targeting where behavioural targeting from the online marketplace is quite easier and decision-making through data-driven knowledge helps to gain market efficiency with increased awareness.
The product is intended to attract all income groups to confidently engage with the market operation and communicate with the children through designated advertisements. The positioning strategy is innovative and structural to attract the attention of young buyers with confident slogans with brilliantly advertising in both the UK and Bangladesh.
The interactive market slogans help to generate well lengthy awareness in the thought process of the consumers in the UK where the segmentation is the same in both countries as targeted customers from 4-24 with promotional value and creation of value to the customer.
The company’s presence in the market of Bangladesh as a wholly-owned subsidiary may promote different products combinedly to promote the versatility of design and recipe as a process of positioning. The company’s program for sponsorship in cultural and sports contests will highly position the company in the Bangladesh market.
6. Marketing mix decisions in both countries
Adaptation and standardisation of product management are highly important in managing international trade management and it helps in better supply chain management in a much better way. Moreover, the standardisation and adaptation procedure in Bangladesh is achieved through the process of better marketing management of the products and effective management of network techniques and helps in better management of trust in managing the diversity of products (Fregidou et al., 2022).
Figure 1: Standardisation and Adaption of Product
(Source: Fregidou-Malama et al., 2022)
On the other hand, the product standardisation and adaptation in the UK is managed well by various kinds of implementation of trial procedures for any kind of specific products by making sure that the products are suitable for adaptation and the quality of the products maintain good standards
(Businesscasestudies.co.uk. 2022). Bangladesh provided a packaging procedure for better packaging management in the country and various organisations through Packaged Food Labelling Act, 2017 where the organisation are supposed to look after the food material, food consumer, net weight and expiry date and also the labelling in the packaging that helps the consumers to identify well (Agriexchange.apeda.gov.in. 2022).
On the contrary, the government of the UK has put forward certain procedures that the packaging of the food has to be labelled well so that it helps the consumers to read it clearly and implement regulations on certain food such as wine and even the packaging has to contain effective symbols that help the suppliers and consumers to identify the food (GOV.UK. 2022).
The packaging labelling and managing of the products of the organisation help the organisation to flourish well and it helps the organisation establish a ground well and manage in reaching the consumers effectively. Branding in Bangladesh allows the organisation to understand the management of the products by managing the vision of the organisation and implementing better strategies in the organisation for better management (The Business Standard. 2022).
The UK on the other hand puts up a certain obligation regarding the branding of the products that helps the consumers to identify well and helps in better brand recognition for the stakeholders of the organisation by fulfilling the requirements well (Assets.publishing.service.gov.uk. 2022).
The marketing and management of the products by the countries and the organisation residing within the countries have to follow certain procedures and processes in managing the organisation quite well and it helps the organisation to flourish well. Moreover, it depends on the specific country to know the management of the branding, packaging and labelling of the products for better trade and management of the organisation and allows the organisation to stay in the competitive market.
The UK manages product management through various implementations of programmes such as Red Tractor and Lion Eggs looking after the safety of animals and welfare of the humans (GOV.UK. 2022). Thus, both the countries are able to manage the problems faced in the packaging and better management of the products of the organisation and it has provided the organisation to sustain well.
The price management of the products of the organisation has to be good and it has to be well promoted and well managed so that it allows the organisation to gain potential customers. Furthermore, the price skimming strategy of the organisation has to be managed well as it helps the organisation to gain higher profit at the time of the launch of the products.
The price skimming strategy of the UK is to understand the nature and the demands of the customers of the country which helps in managing the prices of the products and allows the organisation to manage the business well (Startups.co.uk. 2022).
On the contrary, the price skimming for Bangladesh depends highly on the maximum growth of the sales rate and the distribution costs of the products of the organisation and the way the organisation is able to manage the products’ quality leadership (Ebookbou.edu.bd. 2022).
The market penetration with the help of better management of the prices is highly similar for both the countries as both the countries are inclined to lower the prices of the products and help in drawing consumers from the competition in the market effectively. Skimming of prices has helped in managing the products of the organisation and it helps the organisation to put up suitable prices for the products in making better penetration in the market (AlJazzazen, 2019).
The pricing strategy management of the UK includes branding, effective promotion, and merchandising and helps in managing competitive sales and helps in promotional activity management and allows in managing competitive sales. Additionally, Bangladesh has been able to manage the products and prices of the country and it has helped the country to create jobs and it has helped in poverty reduction which became possible for the country to manage the prices well (Worldbank.org. 2022).
The pricing strategy on the other hand for the UK has been able to manage effective strategies by lowering the cost and helps in managing the trade and tariff quite well and it helps the organisation to grow well (Ofcom.org.uk. 2022). The competitor-based pricing helps the organisation to manage the development of the products quite well and it helps in managing the marginal prices of the products and helps in managing the business cost management well.
The marketing management of the products of Bangladesh through competition policy management helps in marketing share in managing the competitive market quite well through the demands from the consumers’ management.
The place or the channelling of the organisation helps the organisation to flourish well and it allows the organisation to establish a good marketing situation for the organisation and provides the organisation to gain better profit. Moreover, the increase in the trade management of the organisation allows the UK to increase the Gross Domestic Product (GDP) of the country which has helped the country to establish good management of the imported and exported goods and services of the country (Data.worldbank.org. 2022).
Figure 2: GDP of UK
(Source: Data.worldbank.org. 2022)
The channelling of the product management and the promotion of the products becomes possible through franchising, joint ventures, direct marketing and effective delivery services of the organisation in Bangladesh (Refer to appendix 4). The age of the process of digitalisation of marketing has helped various organisations to manage production management and it has helped the organisation to establish a better position in marketing. Moreover, the online shopping habits of the consumers have led to product price management that provides benefits for the organisation and helps in better trade management and provides better management of the consumers’ demands (Cao et al., 2018).
The trade management and other product promotional management of the products has allowed the countries to incorporate effective strategies for better management of the organisational growth and it has helped the organisation to flourish well. Furthermore, the quality and the quantity of the product management put the organisation into a better position in the market through various policy implementations by making collective activity management (Kushwaha et al., 2020).
The government of the UK has implemented several schemes for better management of the country’s effective trade practice for managing economic and technological developments through Balance of Payments Manuals (BPM), European System of Accounts (ESA), and the Manual on Government Deficit and Debt (MGDD) (Ons.gov.uk. 2022).
The trade management of the organisation of Bangladesh with effective traditional commercial equipment provides value and size management to the business for better trade preference management and helps in managing the liability of the assets of the organisation quite well.
The management of the outsourcing of the products and the way the products are established well in the market and the position of Bangladesh in the process of outsourcing is quite well managed and helps in sustaining a competitive market. On the contrary, the UK trade business is preferring more on the outsourcing of the organisation as it helps in the growth of the business and manages the service activities on managing the offshoring of the organisation in managing the profit maximisation well (Ifs.org.uk. 2022).
Personal selling is the way the consumers and the salesman have a face-to-face interaction with one another for buying and selling the product and making a better profit. Moreover, the consumers have to be aware of the pricing of the products and the kind of rates the products hold and management of the professional support the customers are provided in Bangladesh with better business management (Refer to appendix 6).
The distribution and sales management in the UK believe that certain skills are required to understand the sales techniques for better functional management and help in better target development in product management (Ocr.org.uk. 2022).
The direct marketing management of the organisation becomes possible with the help of better sales and product and service management of the organisation quite well. Direct marketing management in Bangladesh is the distribution of the products through marketing model management with basic services while the government of the UK implements certain laws such as the Marketing Code of Practice and the UK Code of Non-Broadcasting, Sales Promotion and Direct Marketing.
The promotional understanding in the case of customer demand management through environmental management helps in managing the complexity management and it helps in better purchasing of the customers (Sarkar and Bruyn, 2021).
The sales promotion of the organisation is through the help of effective management of the products and the way the products are delivered well in Bangladesh however, the sales promotion becomes possible with the help of radio, television, billboards and exhibitions.
On the other hand, sales promotion in the UK becomes possible through various promotional activities such as programmes and other promotional deals through which the customers are attracted well.
The public relations of Bangladesh become possible with the help of public affairs and the management of the crisis which helps in managing communication and even helps in better employee relation management.
Public relations management in the UK becomes possible through mutual understanding of the organisation and the consumers and the way the consumers are able to convey to the organisation the demands and better maintenance of the relations with the help of community development.
The UK has a good advertising market for the promotion of the products of the organisation through brand management and helps in better competitive standard management effectively with the help of social media management and search engine optimisation quite well.
Moreover, the promotion in Bangladesh is quite different as the sales management has effectively helped through better promotion management through radio, and television media quite well and it helps the organisation to grow and helps in direct management of the products of the organisation.
It may be concluded that globalisation helps in making closer links to people and it helps the company Haribo to manage a better outlook in both Bangladesh and the UK for better profit maximisation and has helped in managing the business well. Moreover, the macro and micro environmental analysis has helped the organisation to think of establishing a better marketing situation as it has helped in making better financial management and helps in better market entry management.
- The company has to develop better organisational management through the help of a marketing mix and it helps in better management of the product and price management.
- The pricing strategy of the organisation has to be managed well in establishing a better market in both the UK and Bangladesh and it manages the organisation to grow an effective positioning in the competitive marketing situation.
- The organisation has to manage the channels and networking of the organisation and the way the organisation is able to promote the products well in the global market situation.
- Haribo has to manage the marketing management and effective promotional circumstances for the organisation and it helps the organisation to grow well and it helps the organisation to flourish in both Bangladesh and the UK.
Agriexchange.apeda.gov.in. 2022. [online] Available at: <https://agriexchange.apeda.gov.in/IR_Standards/Import_Regulation/BangladeshissuesPackagedFoodLabellingAct2017DhakaBangladesh03042021.pdf> [Accessed 12 July 2022].
AlJazzazen, S.A., 2019. New Product Pricing Strategy: Skimming Vs. Penetration. In Proceedings of FIKUSZ Symposium for Young Researchers (pp. 1-9). Óbuda University Keleti Károly Faculty of Economics.
Assets.publishing.service.gov.uk. 2022. [online] Available at: <https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/460891/BIS-15-460-packaging-essential-requirements-regulations-gov-guidance-notes.pdf> [Accessed 12 July 2022].
Bamel, N., Dhir, S. and Sushil, S., 2019. Inter-partner dynamics and joint venture competitiveness: a fuzzy TISM approach. Benchmarking: An International Journal.
Bangladeshbiosafety.org. 2022. [online] Available at: <https://bangladeshbiosafety.org/wp-content/uploads/2017/05/Bangladesh_Environmental_Conservation_Act_1995.pdf> [Accessed 12 July 2022]
Bhaskar, H.L., 2021. Understanding the market landscape and consumption behaviour: a case study. International Journal of Business Innovation and Research, 25(4), pp.537-564.
Businesscasestudies.co.uk. 2022. Businesscasestudies.co.uk. [online] Available at: <https://businesscasestudies.co.uk/product-adaptation-vs-standardization-which-approach-is-right-for-your-business/> [Accessed 12 July 2022].
Cao, K., Wang, J., Dou, G. and Zhang, Q., 2018. Optimal trade-in strategy of retailers with online and offline sales channels. Computers & Industrial Engineering, 123, pp.148-156.
Data.worldbank.org. 2022. Inflation, consumer prices (annual %) – Bangladesh | Data. [online] Available at: <https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG?locations=BD> [Accessed 12 July 2022]
Data.worldbank.org. 2022. Inflation, GDP deflator (annual %) – United Kingdom | Data. [online] Available at: <https://data.worldbank.org/indicator/NY.GDP.DEFL.KD.ZG?locations=GB> [Accessed 12 July 2022]
Ebookbou.edu.bd. 2022. [online] Available at: <https://ebookbou.edu.bd/Books/Text/SOB/MBA/mba_3313/Unit-10.pdf> [Accessed 12 July 2022].
Fregidou-Malama, M., Chowdhury, E. and Hyder, A., 2022. Innovative Marketing Strategy : Multinational Companies in Bangladesh. [online] DIVA. Available at: <http://hig.diva-portal.org/smash/record.jsf?pid=diva2%3A1315394&dswid=1314> [Accessed 12 July 2022].
GOV.UK. 2022. Food labelling and packaging. [online] Available at: <https://www.gov.uk/food-labelling-and-packaging> [Accessed 12 July 2022].
HARIBO. 2022. Milestones throughout HARIBO’s unique success story. [online] Available at: <https://www.haribo.com/en/about-us/history> [Accessed 12 July 2022].
Iddy, J.J. and Alon, I., 2019. Knowledge management in franchising: a research agenda. Journal of Knowledge Management.
Ifs.org.uk. 2022. [online] Available at: <https://ifs.org.uk/bns/bnoffshoring.pdf> [Accessed 12 July 2022].
Igbr.org. 2022. [online] Available at: <https://www.igbr.org/wp-content/uploads/2021/03/Haribo-Case-and-IN-d31154aeded5c1314023dfa63de9d254.pdf> [Accessed 12 July 2022]
Kushwaha, S., Ghosh, A. and Rao, A.K., 2020. Collection activity channels selection in a reverse supply chain under a carbon cap-and-trade regulation. Journal of Cleaner Production, 260, p.121034.
Legislation.gov.uk. 2022. The Cocoa and Chocolate Products (England) Regulations 2003. [online] Available at: <https://www.legislation.gov.uk/uksi/2003/1659/made> [Accessed 12 July 2022]
Morgan, N.A., Feng, H. and Whitler, K.A., 2018. Marketing capabilities in international marketing. Journal of International Marketing, 26(1), pp.61-95.
Ocr.org.uk. 2022. [online] Available at: <https://ocr.org.uk/Images/139912-personal-selling-in-business.pdf> [Accessed 12 July 2022].
Ofcom.org.uk. 2022. [online] Available at: <https://www.ofcom.org.uk/__data/assets/pdf_file/0013/222331/Pricing-trends-for-communications-services-in-the-UK.pdf> [Accessed 12 July 2022].
Ons.gov.uk. 2022. UK Trade – Office for National Statistics. [online] Available at: <https://www.ons.gov.uk/economy/nationalaccounts/balanceofpayments/methodologies/uktrade> [Accessed 12 July 2022].
Parliament.uk, 2022. [online] Available at: <https://bills.parliament.uk/bills/2593> [Accessed 12 July 2022]
Rongvaux, C., 2019. Multinationals’ marketing techniques aimed for children in France and in the United States.
Sarkar, M. and De Bruyn, A., 2021. LSTM response models for direct marketing analytics: replacing feature engineering with deep learning. Journal of Interactive Marketing, 53, pp.80-95.
Startups.co.uk. 2022. The 7 pricing strategies every business owner has to know. [online] Available at: <https://startups.co.uk/strategy/pricing-strategies-price-skimming-penetration-pricing-and-premium-pricing/> [Accessed 12 July 2022].
The Business Standard. 2022. Branding Bangladesh. [online] Available at: <https://www.tbsnews.net/supplement/branding-bangladesh-359914> [Accessed 12 July 2022].
Worldbank.org. 2022. Worldbank.org. [online] Available at: <https://www.worldbank.org/en/country/bangladesh/overview> [Accessed 12 July 2022].
Know more about UniqueSubmission’s other writing services: