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    INTERNATIONAL MARKETING

    -Market Plan and Entry Strategy for TCD(Trees Can't Dance)

    STUDENT NAME: Subramanian Ramasundaram

    STUDENT NUMBER: 109243005

    MODULE NAME: International Marketing

    MODULE CODE: NBS8052

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    Table of Contents

    1 ) Organizational profile

    2) Objectives of the report

    3) Need for TCD to enter international markets

    4) Core competency analysis of TCD

    5) Screening process for TCD

    5.1 ) Screening process 1

    5.2 ) Screening process 2

    5.3 ) Screening process 3

    6) Denmark

    6.1) Danish culture

    6.2 ) Danish eating habits

    6.3) Danish Consumer segment

    6.4) Competitors and TCD's competitive positioning

    6.5) Marketing plan for Denmark

    6.5.1) Marketing objectives

    6.5.2) Entry mode in Denmark

    6.5.3) Marketing mix for TCD in Denmark

    7) Sweden

    7.1 )Swedish eating habits

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    7.3) Swedish Consumer segment

    7.4) Competitors and TCD's competitive positioning

    7.5) Marketing plan for Sweden

    7.5.1) Marketing objectives

    7.5.2) Entry mode in Sweden

    7.5.3) Marketing mix for TCD in Sweden

    8) Implementation and Control

    1 Organizational profileTrees Cant Dance (TCD) is a small organization based in Halt whistle in Northumberland, the

    business for the organization includes marketing chili sauces, marinades and chutneys. They

    grow chili and prepare chili sauces, chutney and marinades and market them under the brand

    name Trees Cant dance. The organization was started in the year 2005 by Dan May, the

    organization was successful growing chilies and has been successful in producing different

    versions of chili sauces, marinades and chutneys. The sauces where initially launched in the UK

    market through farm stores and it became instantly popular due to its authentic taste and

    variety. This growing popularity of authentic chili products was picked by retailers such as

    Fenwick's, Farton, Mason and then by Tesco and Sainburys. This growing trend for chili sauces

    saw many small organizations enter the market in UK and there has been entry of many large

    retailers such as Marks and Spencer's and food restaurants such as Nandos etc. These large

    producers were able to produce wider range of sauces with lesser prices and this has increased

    the competition in chili sauce market . Trees cant dance brand experienced problems with

    funding and development and it was rescued by John Pike a successful entrepreneur in north

    east. TCD has gained importance in North east region and it is also funded by regional

    development body in North east with a grant 35000 pounds. The current turnover of the

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    organization is half a million pound. The organization is currently looking at the international

    markets for expansion. TCD has its product presence in Germany, Denmark, Slovenia, Slovakia,

    Dubai, Qatar, Mexico, America and Australia. The most important markets are Germany and

    Middle East and it has already achieved an export growth rate of 300 % in 2010. The current

    purpose of this report is to look at the potential international markets for TCD to grow and

    expand and this report will also focus on the marketing plan for two potential international

    markets.

    2 ) Objectives of this Report

    This report aims to achieve three objectives for TCD brand in international markets.

    1) To increase revenue for TCD in international marketsThis report aims to propose a marketing strategy for TCD in international markets to

    improve its revenue in international markets.

    2) Structured expansion strategy for TCDThe major purpose of this report is to design the expansion strategy for TCD in

    international markets. This report aims to choose two markets for TCD and give a short

    and long term direction for TCD in those markets.

    3) Strategic approach to planning and screeningThis report aims to screen some of the international markets for TCD and will attempt to

    focus on one primary and one secondary market for TCD. The Screening process will

    focus on objective based on financial and culture implications of the markets.

    4) To improve brand awareness for TCD in international

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    This report aims to improve the brand awareness for TCD in international markets and

    will attempt improve its current distribution in international markets to create a

    consumer awareness of the brand.

    5) To create an market entry and sustainable positioning strategy for TCDThis report also aims to focuses propose a market entry strategy in chosen countries

    and also proposes a brand positioning for TCD in the chosen markets with respect to its

    competitors.

    To achieve these objectives it is necessary to identify the motivation for organizations to

    outsource. The next section focuses on this need.

    3) Need for TCD to enter international market

    There are many reasons motives behind organizations to look for international markets. This

    report perceives primary reasons for TCD in this regard as follows

    a) Stagnant growth in UK table sauce marketThe UK table sauce market has many competitors both domestic and international, the

    organizations range from Small and Medium enterprises to large retailers such as Marks

    and Spencer's ltd. There is also no clear cut marketing strategy for TCD in domestic markets

    and it's highly reliant on Tesco's and Sainsbury's for its brand development.

    b) To benefit from increasing trend of chili sauces in European markets.This report perceives the growing chili consumption trend in other European markets and

    TCD wants to benefit from this trend (Anon 2008). The table sauce market in European

    markets is in growth phase and TCD aims to capitalize on that as well (Euromonitor 2010).

    c) Better utilization of factory capacity

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    TCD is currently utilizing only 20 % of its total factory capacity and the current demand in

    the UK market justifies that stand and there is a need for TCD to look for better demands to

    have a better usage of the remaining 80 % of the factory's spare capacity.

    To enter the international markets it is necessary to understand the core competency of TCD

    and the next section of this report focuses on that.

    4) Core competency analysis of TCD.

    The core competency of TCD is identified using the SWOT analysis

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    The core competency of TCD can be inferred to be R/D activities and innovation in wet cooking

    sauce segment, however the primary weakness with respect brand awareness in UK domestic

    markets.

    5) Screening process for TCD products

    The screening process for TCD is done at three levels. The countries chosen for the preliminary

    screening are based on moderate to low political risk factors (AMB 2010). The first level of

    screening considers all the chosen markets and evaluates them based on geographical distance,

    cultural dissimilarities with UK, Euro zone agreement and English language acceptance criteria.

    The reasons for choosing Euro zone and English language acceptance as criteria in the first level

    screening is because TCD brand is relatively new and there is need for TCD to have immediate

    acceptance in new international markets and trading regulations and language acceptance

    makes this acceptance process trouble free. The second level screening considers the macro

    environment analysis of the chosen countries from the first level of screening and these

    countries are weighted against the Political, Economic, Socio cultural and Technology (PEST)

    factors and this report arrives at four countries. The third level of screening considers Micro

    environment analysis of the nine countries in accordance with the core competency of TCD and

    arrives at two potential markets.

    Preliminary Screening Elimination Criteria Political Risk Factor

    The preliminary criteria in this report consider political stability and risk factors of the country.

    The screening process has considered countries that have minimum variation from the

    optimum political risks of the world. The markets considered for screening are most of the

    European markets , North American markets namely Canada, United States of America and

    Mexico, South American markets of Brazil, Argentina, Chile etc, Australia and New Zealand

    markets, Asian Markets of India, China, Singapore, Malaysia, and other south east Asian

    countries except for South Korea are considered. In the Middle East markets such as UAE,

    Saudi, Riyadh and Oman have been considered for this screening. Other countries selected

    based on these criteria are Russia and Turkey.

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    5.1 ) Screening process 1Elimination Criteria Geographical distance, Cultural Dissimilarities

    and Euro zone trading provision.

    The screening process in this report has considered three primary markets Emerging markets,

    Emergent and Other markets.

    Emerging Markets

    The Asian Markets considered for this screening are China, India and South East Asian markets.

    The Chinese market has high potential but there are language and trade barriers for TCD to

    enter this market in short term. Indian market has some cultural acceptance for UK products

    but it is eliminated due to geographical distance factor from UK to India and due to high

    transportation costs within India and it can be potential problem for small organization like

    TCD. The Brazilian market is not considered due to transportation and logistical issues and this

    report perceives TCD organization to be risk averse due to cash crunch issues in the recent past.

    The following table shows the elimination criteria for the chosen emerging markets, these

    elimination criteria is only for the immediate future and long term internationalization plan will

    consider these markets.

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    Figure 1.1 Elimination Criteria (1 being less risky and 5 being more risky)

    Emergent Markets

    The emergent markets of North American Continent are excluded due to Geographical distance

    and Non Euro free trade options. Though these markets are culturally similar the TCD products

    may lack the novelty to penetrate the market in the beginning as there are many large scale

    chili sauce organizations within these countries (GMID 2010g). Australia and New Zealand have

    not been considered due to increased transportation costs as well as Non favorable trade

    regulations as compared to Euro zone regulations. Middle east markets are not considered

    because these markets are not part of the Euro zone trading agreement and this report

    perceives the current entry mode of TCD in middle east markets via the agent route as a viable

    option as it involves minimum risk. The eastern European markets except for Poland is not

    considered as most of the countries are not UK trading partners and entry into these markets

    can create additional risk for TCD (EU 2011). France, Italy and Spanish markets still perceive

    English as a lesser favorable language (Economist 2011) and these markets are not considered

    as language barrier can impact TCD brand labeling and these markets are not considered due to

    risk of non acceptance. From the above eliminations this report considers the Benelux countries

    (Netherlands, Belgium and Luxemburg), Scandinavian Countries (Norway, Sweden, Denmark,

    Finland), Germany and Poland for the next stage of screening.

    5.2 ) Screening 2 Elimination using Macro Economic factors

    The second screening process for countries looks at the Political, Economic, Social,

    Technological factors for all the 9 countries from the first screening and outcome of this

    analysis is the weighted score and selection of these countries.

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    The economic analysis parameters considered for this screening are Annual disposable income,

    Inflation, currency exchange and unemployment rate. The Annual disposal income and

    unemployment rate signifies the opportunities and threats in the market with respect to

    product purchase. Figure 3.0 shows the Annual disposable income of countries considered for

    screening based on the chosen economic indicators.

    Figure 3.0 (Data from Euro monitor 2010 reports)

    Based on the above figure it can inferred that Annual disposal income is higher in Sweden,

    Norway, Germany and Denmark, these markets can be seen as potential markets for the TCD

    Chili products . Annual disposable income does not give a complete picture as in the case of

    Germany where disposable income is moderate but the population is high (Figure7.0). So this

    screening considers other factors such as unemployment date. Unemployment rate signifies

    risk in the market as higher unemployment rate can reduce the consumer's expenditure on

    foods. The figure 4.0 shows the unemployment rate of the selected countries.

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    Figure 4.0 (Data from Euro monitor 2010 reports)

    From the above graph it can inferred that Poland and Germany have the highest

    unemployment rates but these markets cannot be ruled out as higher unemployment can be

    attributed to higher population in these countries when compared to population in Benelux and

    Scandinavian countries. This screening also considers additional economic screening on

    Exchange rate fluctuation. The economic fluctuation can have impact on the revenue for TCD in

    the chosen markets. Exchange rate fluctuation is considered because currency volatility can

    impact the revenue in international markets.

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    Figure 5.0 Exchange rates with respect to USD (Data from Euro monitor 2010)

    From the figure 5.0 it can be inferred that Sweden, Norway and Finland have the highest

    conversion rates and these currencies are relatively stable, same is the case with Euro currency

    in countries such as Germany, Netherlands, and Belgium etc. Danish Kroner has more

    fluctuations and this can be a potential problem for TCD in Denmark. From the economic

    indicators this report calculates a cumulative weightage score for these countries with respect

    to four economic indicators.

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    Figure 6.0 Weighted score of the economic indicators. (1 being low risk

    , 5 being high risk).

    From the above rating list it can be seen that Norway has the lowest risk followed by Sweden,

    Denmark, Finland, Netherlands and Norway. Luxembourg, Belgium and Poland have a higher

    economic risk. Germany however has a moderate weighted score in spite of its higher

    population.

    Socio Cultural Analysis

    The socio cultural parameters play an important part in external environmental analysis of

    these countries. The indicators used in this report for this analysis are population and

    urbanization. Increase or decrease in population can determine the demand for the consumer

    products. Figure 7.0 shows the population comparison for all the nine countries.

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    Figure 7.0 (Data from Euro monitor 2010)

    From the figure 7.0 it can be seen that Germany has highest population among the selected

    countries. The implication is that higher population can lead to higher market potential for TCD

    to capitalize on. Other countries such as Norway, Sweden, Denmark and Netherlands have an

    increasing population trend which makes these countries as viable markets for TCD in the

    immediate future. The second factor considered for screening is the urbanization population.

    Increased urbanization can lead to increased education level which can increase the disposable

    income for product purchase.

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    Figure 8.0 (Data from Euro monitor 2010).

    From the figure 8.0 it can be seen that Belgium, Denmark, Luxembourg top the list for

    urbanization. Urbanization plays an important role in market selection for TCD as urbanization

    can increase the purchasing power for premium products and TCD being a premium product

    can enter the market with less product customization. Cumulative rating for Socio cultural

    indicators are given below.

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    Figure 9.0 (1 being low risk , 5 being high risk)

    From the above figure it can be inferred that Belgium, Germany, Sweden and Denmark are the

    least risky markets for TCD to enter based on Social factors.

    Technological Analysis

    The technological indicators considered in this report are Internet penetration and Internet

    shopping percentages. Increase in Internet shopping percentage can reduce the distribution

    costs as it provides a direct channel of communication with the end customers of the

    organization and this in turn can lower the market entry cost for the organization.

    Figure 10 (Refer Appendix 1 and 2)

    From the figure 10 it can be seen that all the countries use internet extensively and also there

    is increasing trend in internet shopping with Norway topping the list followed by Netherlands,

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    Denmark and Sweden. The implication is that entry into these countries can lower the

    distribution cost and ebranding of TCD products in these markets can influence consumer

    buying decisions.

    Figure 11 (Weignted scores from PEST analysis)

    Figure 11 shows the weighted score based on macro analysis of the chosen 9 countries. From

    the PEST analysis this essay arrives at 5 potential markets for TCD products namely Norway,

    Sweden, Denmark,Germany and Netherlands. Norway, Sweden and Denmark has less political

    risk and moderate economic potential whereas Germany has moderate political risk and high

    economic potential and Netherlands has moderate risk and moderate economic potential.

    5.3) Screening 3 Micro level Analysis

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    The third level of screening considers the Micro level analysis , this screening looks at the chilli

    sauce market specific risks and opportunities. The indicators used for evaluating oppurtunity

    are Consumer expenditure on foods, Growth rate of wet cooking sauce consumption in the

    market and Consumer eating habits in the chosen markets. The common risks in the market

    include availabilty, TCD product customization level in the market, Distribution channel costs

    and product usage are perceived as risks in the market. The Norway market is eliminated from

    the screening process due to higher import taxes and higher tax rate (Irishfood 2011) and this

    report perceives this a very high risk for immediate market entry (2 years).

    Opportunities / Potential in the markets

    Consumer expenditure on food and Sauces

    The Figures 11 given below indicates the food expenditure on sauces in Germany, Denmark,

    Sweden and Netherlands and also gives the percentage of those expenditure spent on wet

    cooking sauces. From the graphs it can be inferred that Netherlands ,Sweden and Denmark

    have the highest consumption for wet cooking Sauces. From the below data it can also be

    inferred that wet cooking sauce market in Germany is declining inspite of increase in market for

    cooking sauces and this can be potential risk.

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    Figure 11 (Data refer appendices 4,5,6)

    Consumer Eating habits in markets

    Consumer eating habits is considered as an opportunity in this report. Sweden and Denmark

    chosen in this screening are Scandinavian countries and drawing from research done by Olsen

    et al (2010) on Scandinavian eating habits it can be said that these countries have similar eating

    habits. Both these food cultures have fish in their regular diet , Chili sauces tend to compliment

    sea foods and these countries can have higher consumption of chili sauces and to add to this

    both these cultures are experimental with their cuisine which can go well with current variety

    of TCD sauces (GMID 2010a, GMID 2010b). Netherlands food habits are quite similar to

    Scandinavian countries (Davidson and Jaine 2006) but there is slow trend of eating out setting

    in and there is an increased popularity for wet cooking sauces and this essay perceives a similar

    rating as that of Scandinavian countries based on that evidence(GMID 2010c). On the contrary

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    German eating habits are undergoing a slow transition back towards communist cuisine in

    which intake of chili sauces is limited (DeutcheWelle 2011) and based on this fact this report

    allocates a slightly lower ranking when compared to the other countries (Figure 12.0).

    Potential risks in market

    The common risk parameters considered in these markets are competition, cost of distribution,

    and price sensitivity of consumers. It is essential for TCD to understand the competition in wet

    cooking sauces markets of countries as it is not feasible for TCD to enter into a highly

    competitive market.

    Risks of Competition

    The German market is considered to be highly competitive for chili sauces as there are many

    domestic and multinational organizations in the market and the competition in the market is

    based on price (Economist 2010) and also German market has many substitutes for chili sauces

    (Foodblog 2010). Netherland market is also considered to be highly competitive due to

    emergence of many multinational players and it is possible for TCD to enter the market as the

    market still has potential for premium products (Anon 2006). Sweden and Denmark have

    moderate competition as the chili consumption is still in growth stage (GMID 2010, GMID

    2010a). Based on the above evidence this report perceives Sweden and Denmark to be less

    risky markets.

    Cost of Distribution

    Cost of distribution can play an important role in market entry as very high distribution costs

    can affect the profit margin for TCD in the new market. Germany can have very high

    distribution costs as the food retailers are wide spread and transportation within the

    distribution channels can increase the cost for SME's such as TCD. In the case of Netherlands

    there are many food distribution retailers and many competitors for shelves (Anon 2010e) and

    this report perceives this market to have higher risk ranking. The Sweden and Denmark can

    have moderate distribution and this report perceives these markets to be less risky.

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    Price conscious consumer behavior

    TCD as it currently stands is considered to be premium product and price conscious consumer

    behavior can have impact on market entry decisions. Germany is considered to be price

    sensitive market drawing from the evidence of wall mart entry failure in Germany (Anon 2010c)

    and hence it is considered to be high risk market. Denmark , Sweden and Netherlands are not

    considered to be price sensitive markets but the rising trend of health awareness makes this

    market price sensitive for Non organic products and TCD chili sauces are non organic and this

    report perceives this as a risk in all the four markets. The figure 12.0, 13.0 shows the cumulative

    rating based on the above discussion of all three opportunities and risks for these four markets.

    Figure 12.0(Ratings of opportunities in the market 5 being high opportunities and 1 being less

    opportunities)

    Figure 13.0 (Ratings of risks in the market 5 being high risky and 1 being risky)

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    From the figure 12 and 13 this report eliminates Germany due to market risks and this report

    also eliminates Netherlands due to higher market risk though Netherlands has a high potential.

    The countries considered are Denmark (High potential and low risks) and Sweden (Moderate

    potential and low risk). This report will now focus on these two countries in detail. The report

    will focus on culture, eating habits, consumer segmentation, competition along with marketing

    plan for the immediate future.

    Denmark

    Denmark is one of the potential market for Chili sauces, the chili sauce markets is expected to

    grow 2 % every year and this makes this a high potential market for TCD (GMID 2010a). For TCD

    to enter the Danish market it is important to understand the Danish culture.

    6.1) Danish Culture

    Denmark is considered to be an egalitarian society where both genders are equally respected.

    In Danish society both the partners work and women are allowed to work with flexible timings

    to have fair share of work life balance similar to that of United Kingdom's culture. In Danish

    society both men and women share equal responsibilities, this reflects in child rearing activities

    where both the partners are equally responsible. Most Danish families are small and many

    families are nuclear. Danish children have independent living after a particular age and in many

    instances they have part time employment for their earning, this makes them potential

    customers for all type of organizations (Anon 2004), this again strikes a similarity with the UK

    culture. Research by Intersperience organization (2008) has revealed that there are more

    cultural similarities between UK and Denmark than Denmark and other Scandinavian countries.

    English is the second favored language in Denmark and this aspect increases the ease of doing

    business in Denmark by UK organizations.

    6. 2 ) Danish Eating habits

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    Denmark has cold climate similar to that of UK and their food habits partially similar (Anon

    2004). The Danish people prefer to have breakfast and dinner at home and due to modern

    urban life style lunch is primarily from office canteens. Danish diet consists of foods with high

    nutritional values such as vitamins, minerals and proteins. Danish breakfast consists of cereals

    or wheat bread with butter or cheese followed by a Tea or Coffee. English breakfast is quite

    popular in Denmark. The Danish lunch consists of Pork sausages or meat with brown sauce and

    there is also a Buffet lunch called Cold Buffet in which food is taken in several stages, apart

    from pork and meat, salmon fish is also popular. The Danish dinner consists of pork, beef mince

    and there is also influence of Italian and American foods namely Pizza's and Pasta and even the

    Asian cuisine is popular for dinner due to multicultural influence (Anon 2008). The Danish

    people are considered to be experimental with their eating habits (GMID 2010a). Christmas and

    Easter times have an increased consumption of marinated sea foods and meat and there is also

    increased consumption of chili sauces in that period (Anon 2008). There is also increasing

    awareness among Danish consumers for organic foods and consumers prefer organic foods

    due to obesity problems and can pay premium price for organic products (GMID 2010a).

    Implication of Danish eating habits for TCD

    The multi cultural influence has increased the intake of chili sauces among Danish people. The

    Danish consumers prefer chili sauce with Pizzas, Pastas and even with Asian foods. The

    evidence of this consumption can be seen with increasing trend of chili sauce market in

    Denmark. There is also a potential market for TCD with respect to day to day foods for instance

    Chili sauces compliments with Sausages and TCD can target this consumer usage segment. TCD

    also has high potential with respect to marinates in Christmas and Easter eves in Denmark.

    6.3) Danish Consumer segments

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    Drawing from the presentation of Hamann (2011) Danish consumer segment can be divided

    into four types they are Idealists, Enjoy life, Doubting and price conscious. The figure 14.0

    shows the broader classification of Danish consumers.

    Figure 14.0 Segmentation of Danish Consumers (Adapted from the presentation of

    Hamann in 2011)

    Idealists Consumer segment: Idealist consumer segment refers to families with children and

    their earnings range from medium to high income. They purchase foods based on quality of

    foods and this consumer segment prefer organic foods and can pay premium price for them.

    Enjoy life Consumer segment: This segment refers to couples with no children. The average

    group ranges from 30 to 39 , they live primarily in Copenhagen and have high incomes and 44 %

    of this consumer segment eat at home and this consumer segment prefer organic food same as

    the idealists consumer segment.

    The other consumer segments are categorized as doubting and price concerned, both these

    consumer segments are combination of all age groups except for children and tweens (12 to 14

    age group).These consumer segments have a moderate to medium income and both these

    segments are price sensitive in their shopping decisions (Hamann 2011).

    Implications for Danish Consumer segment for TCD

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    TCD can primarily target Idealist and Enjoy life consumer segments as these customer segments

    are not price sensitive and both these customer segments have the habit of home cooking and

    this can create TCD brand awareness as home cooking can create brand awareness. This

    consumer segment can also have multi cultural food influence and TCD chili sauces can go well

    with American, Italian and Asian foods. To analyze the TCD product positioning in Danish

    market this report will look at the competitors in the Danish market

    6.4 ) Competitors and TCD's competitive positioning

    The table sauce market in Denmark is dominated by multinational players namely Unilever

    which is the brand owner for Knor, Santa Maria A/S, Beauvais A/S , Kraft foods Danmark A/S

    and Kraft foods Danmark A/S. (GMID 2010). The market shares for these competitors are given

    below in figure 15.

    Figure 15.0 (Data please Appendix 6)

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    Unilever is the major chili sauce competitor with 10 % of the market share, followed by Santa

    Maria and Beauvais. Major chili sauce products for Unilever are ketchup based chili sauces and

    Sweet and Sour sauces. The main differentiators of Unilever sauces when compared to other

    competitors are price and brand name . The Santa maria has the second highest share and its

    main differentiator is with respect to price and variety. Beauvais position can be inferred to be

    based on variety and innovation (GMID 2010). Other competitors are also positioned based on

    low price and higher quantity. One notable similarity for most of the table sauce players in

    Denmark is low price, high quantity. The price range of table sauces are around 22 Danish

    Kroner (2.5 pounds) and the quantity available is around 250 milliliter range (Anon 2010). In

    comparison TCD price in UK market is slightly higher and this can be potential risk (Anon

    2010a). On analyzing some of the competitors this report perceives that competition in

    Denmark's table sauce market is based on price, quantity, spice level and variety. The current

    differentiator in the Danish market is based on variety.

    These are the core differentiators of TCD with rest of its competitors

    1) Freshness of table sauces as there are no artificial ingredients.2) TCD has higher variety of sauces in comparison to competitors (African hot, Sweet and

    Sour, different degrees of chili sauces from mild to high).

    TCD can position itself in the Denmark based on quality (No artificial ingredients) and variety as

    innovation is a major strength of TCD brand in UK. This report will look at marketing objectives,

    entry modes and marketing plan for Denmark.

    6.5) Marketing Plan for TCD in Denmark

    To present the marketing plan for TCD in Danish market this essay first looks at the marketing

    objectives and then discusses the preferred entry modes in Denmark and then gives the

    marketing mix and short term, middle term and long term vision for TCD in Denmark.

    6.5.1)Marketing Objectives

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    The marketing objectives for TCD are defined as follows

    1) To attain 1 % of market share in table sauce segment for TCD products in Denmark in 2years

    2) To attain .5% of market share in marinade sauces in Denmark in 2 years3) To enter .4 % market share in mayonnaise segment in Denmark in 3 years4) To create TCD brand awareness to 10 % of urban households in Denmark in 3 years.These objectives are based on TCD core competence arrived from Value chain analysis refer

    Appendix. TCD is currently is considering flavored mayonnaise production and this report

    considers that as a high potential market for TCD as mayonnaise has a higher market

    potential (GMID 2010).

    6.5.2) Entry mode for TCD in Denmark

    The current entry mode for TCD in Denmark is Strategic partnership with retail organization in

    Denmark, this entry mode is focused on all customer segments but however this entry mode

    does not position TCD specific to any particular customer segments. This report focuses on

    adding TCD chili sauces in regular eating habits and also increase consumer awareness of TCD

    brand .To achieve this TCD can also have a strategic partnership with Organizational canteens in

    Denmark , as urban working population in Denmark have lunch at canteens , this route can

    create brand awareness among urban working Danish population. Chili sauces can go well with

    sausages and chutneys and sausages are a part regular Danish lunch cuisine.

    There can be potential distribution problems with this approach however existing strategic

    partnership distribution channel can be used. On long term TCD can consider entering the

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    Danish food market through a subsidiary and this is a cost effective option in the long term (5

    years).

    6.5.3) Marketing Mix for TCD in Denmark

    Product Strategy

    TCD can position itself in the market based on quality and variety. These are some of changes

    TCD can consider with respect to table sauces in the Danish market.

    1) Flavored mayonnaise can bring novelty to the Danish mayonnaise market and TCD canalso consider chili mayonnaise internet option and this can additional potential for TCD

    to exploit.

    2) Chili sauces There is no changes required for chili sauce in the immediate future buthowever TCD can look for novelty in chili sauce design

    Product Packaging and labeling : TCD can consider packaging 250 ml packaging as that of its

    competitors and can consider multilayered labeling with facts about fat content and also food

    recipe for dishes with the chili sauce as there is growing heath conscious trend among Danish

    consumers (GMID 2010a) . The figure 15 shows the product and consumer segment targeted

    with

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    Pricing Strategy

    TCD need not consider any changes to the current pricing strategy for chili sauces but can

    reduce the price of marinades as marinades can take the catering route which is price sensitive.

    TCD can follow the current pricing strategy in UK, the current UK pricing strategy is given below

    for 100 ml of wet sauce with cost split (Fixed cost , Variable cost and other cost are assumed

    based on selling price and profit margin).

    Figure 16 (Price adaption from TCD website and Dan may's class presentation)

    The current pricing strategy can be retained but however it can be assumed that cost of retailer

    can be less in Denmark when compared UK market (Tesco and Sainburys).

    Place

    Place has already discussed as a part of entry mode section in Denmark market

    Promotion

    TCD can consider the following promotions in Denmark.

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    1) TV Cooking shows: TCD can consider its product promotion via the TV cooking shows,drawing from evidence of Euro monitor report (2010) it can be inferred that TV cooking

    shows are popular and also 80 % of working population cook at home and this TV

    cooking route can influence consumer buying decisions in Denmark.

    2) Brand Story surrounding the tree: This report perceives that there is a need for TCD tohave a universal brand story and there is enough of evidence on fairy tale influence on

    Danish culture (Philips 1999) and stories can be perceived towards brands.

    3) Advertising via Google adwords : The there is increasing trend of internet usage andfood blogs (http://verygoodfood.dk/) and advertising TCD brand via google adwords can

    be considered as a option as google is the most sort after search engine.

    This report has identified Denmark as the primary market and will now look at Sweden as the

    secondary market for TCD.

    7) Sweden

    Sweden has the fourth largest population in UK with population of around 8. Million, Sweden

    has a potential market for sauces and table sauces are still in growth phase (GMID 2010).

    Sweden has close cultural ties with Denmark and eating habits are similar to that of Denmark

    and thus marketing strategies in both these markets can be similar.

    7.1 Swedish eating habits and Lifestyle

    Swedish eating habits are similar to that of Danish, majority of the Swedish population prefer to

    have home cooked food similar to Danish but Swedish working population prefer to carry home

    cooked food to office. The Swedish people prefer dine out for dinner occasionally and there is

    popularity of Mexican, Asian and American foods (Kitler et al 2001). This trend increases their

    exposure to chili sauces. The Swedish breakfast consists of cereals, bread and egg similar to

    that of English breakfast. The lunch and dinner are composed of meat and sea foods. Cray food

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    is a popular sea food in Sweden. Potato is part of regular eating habits and marinated salmon is

    also a popular dish. Recent research by Swedish website in 2011 indicates that many traditional

    Swedish dishes are reinvented with American influences

    (http://www.visitsweden.com/sweden/Sweden-Facts/Worth-knowing-about-Sweden/Food-

    culture/). The Swedish consumers are health conscious with diet similar to that of Danish and

    most of the convenient food organizations have positioned themselves as healthy (Anon 2009).

    On the life style front Swedish people use internet extensively and evidence of highest social

    networking usage emphasizes this fact (TNS 2010). Swedish people are voracious readers and

    this reflects from the evidence as Swedish people are top consumers of news papers in Europe

    (GMID 2010d). Swedish people love to party similar to that of Danish people and Christmas and

    Easter periods and food organizations are benefitted during this period as Swedish people dine

    out during those periods (GMID 2010d). Swedish people are largest mobile phone users and

    there is a popularity of Short Messaging Service (SMS) based promotions.

    Implication to TCD

    TCD can capitalize on the growing trend of multi cultural influence of Swedish cuisine and most

    of these cultures have intake of chili sauces. TCD can position their products differently in this

    market like marinates for parties, sauces for every day food (Sauces with Cray fish) and

    chutney with potato and this helps TCD to concentrate on wider customer segments.

    7. 2 Swedish Consumer segments

    The following figure shows the Swedish consumer segments

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    Figure 17 (Data from Euro monitor reports 2010)

    Implication to TCD

    Sweden has 34 % of middle aged adults who are health conscious and also have the highest

    purchasing power with high paying jobs and similarly Adult in 20's population refer to working

    population who are either unmarried or married and have high purchasing power and can have

    consumption of convenient foods. TCD can target middle aged adults customer segment as

    primary and Adults in 20 as secondary as both these segments are influenced by multicultural

    cuisine (GMID 2010d).

    7.3 Competitors in Swedish table Sauce Market

    The Swedish table sauce has been primarily dominated by domestic markets owned by

    Multinational players they are Unilever (Knor), Santa Maria, Felix, Bla band and ICA. The

    unilever has positioned itself based on low price and higher quantity. Santa Maria can be

    inferred to be based on price and variety. The figure shows the market share of competitors in

    the Swedish market. The other brands such as Felix have positioned themselves based on

    innovation and variety (http://www.kaywhymarketing.com/postcards/felix-sauces.htm).

    http://www.kaywhymarketing.com/postcards/felix-sauces.htmhttp://www.kaywhymarketing.com/postcards/felix-sauces.htmhttp://www.kaywhymarketing.com/postcards/felix-sauces.htmhttp://www.kaywhymarketing.com/postcards/felix-sauces.htm
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    Figure 18 (Data refer appendix 7)

    From the figure it can be inferred there is potential market available for TCD in Sweden and TCD

    can position itself based on freshness, quality and variety as there is a trend for healthier sauces

    with no artificial flavors (GMID 2010h). Having discussed about the competitors this report will

    look at the marketing plan in Swedish sauce market.

    7.4 Marketing Plan

    The marketing objectives for TCD are defined as follows

    1) To attain .5% of market share in table sauce segment for TCD products in Sweden in 2years.

    2) To attain 2 % of market share in chutneys in Sweden in 3 years.

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    3) To attain 2% of market share in marinades in Sweden in 3 years4) To create TCD brand awareness to 5 % of middle aged working population.

    This report perceives chutney to be a novelty in Swedish market and aims for higher market

    share in that market segment.

    7.4.1 Entry mode for TCD in Sweden

    The preferred entry mode for TCD in the Swedish market is strategic partnership with retailers

    for chili sauces and chutneys. Research by Internet stats website (2010) indicates that Sweden

    stands fourth in internet usage and shopping and it can be safely assumed that home cooking

    population can be reached by this entry mode. Another potential advantage with this entry

    mode is that variety of chili sauces and chutneys offered currently by TCD can be a novelty in

    these retail stores and entry to these stores can be cost effective option when compared to

    other retail stores however there are risks with respect to logistics which TCD needs to

    consider. The marinade sauces can have entry mode through strategic partnership with fast

    food restaurants as TCD marinade products do not offer novelty in particular and marinade

    packaging option (4 pieces of meat in one bag) can suit the catering entry mode.

    7.4.2 Marketing Mix of TCD in Sweden

    Product Strategy : The product strategy can be similar to that of Denmark and TCD can look for

    entering the market with flavored mayonnaise product and can reduce the fat levels in the

    sauces and mayonnaise as the target consumers are health conscious, TCD needs to give the

    fat levels in the label and can consider multi layer labeling. The labeling can also include recipes

    of products which can be made from chili sauces as this will educate the consumers. TCD on the

    long run can look to make the product organic as health conscious consumers look for organic

    products.

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    Price Strategy: The price strategy can be similar to that of Denmark and TCD can share the same

    premium price and focus on freshness and variety as its differentiating factors.

    Place Strategy: The place strategy has already been discussed in the entry mode section.

    Promotion Strategy: TCD can consider the following promotional strategies

    1) Google Adwords: As Sweden is the fourth largest users of internet google adverts are agood option for promotion and it also brings in novelty in promotion of sauces when

    compared to competitors (GMID 2010d). TCD needs a brand story as Sweden has a fairy

    tale story telling culture similar to Denmark and TCD can promote using this option.

    2) Social media marketing: Sweden is the largest users of social networking websites inEurope (GMID 2010) and TCD can promote its products via its social networking pages

    (http://www.facebook.com/pages/Trees-Cant-Dance-Chilli-Sauces/112646318748336) as the

    entry mode is online retailers it can be possible to capture the customer details and those

    customers can be targeted this way.

    3) Newspaper ads on Dan may Chili recipe book: Swedish are the largest subscribers ofNewspapers and promoting TCD products along with a mention of Dan may recipe book

    in news paper can be option which TCD can consider.

    8 ) Implementation and Control

    This essay perceives a common implementation and control for both the markets.

    1) The problems perceived in the marketing strategy of the Denmark and Swedishmarket is with respect to imitability of competitors as competitors such as Unilever

    and Santa Maria can reproduce the novelty of TCD and this report perceives a risk in

    that regard.

    http://www.facebook.com/pages/Trees-Cant-Dance-Chilli-Sauces/112646318748336http://www.facebook.com/pages/Trees-Cant-Dance-Chilli-Sauces/112646318748336http://www.facebook.com/pages/Trees-Cant-Dance-Chilli-Sauces/112646318748336http://www.facebook.com/pages/Trees-Cant-Dance-Chilli-Sauces/112646318748336
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    2) Consumer education: Consumer education is a potential risk in both the markets forTCD and as TCD novelty in chili sauce segment might not reap the potential benefits.

    3) Growing Consumer awareness of organic products : As TCD is not an organic productthis essay perceives this to be a potential risk if TCD does not consider organic product

    positioning.

    This report presents a comprehensive screening process and marketing strategy for

    TCD products.

    Appendix 1 - Internet shopping population

    Appendix 2 Internet usage statistics (http://www.internetworldstats.com/stats4.htm#europe)

    http://www.internetworldstats.com/stats4.htm#europehttp://www.internetworldstats.com/stats4.htm#europehttp://www.internetworldstats.com/stats4.htm#europe
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    Appendix 4 Table sauce market in Germany

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    Appendix 3 - Sauce market in Denmark

    Appendix 5 Table sauce market in Sweden

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    Appendix 6 Table sauce market in Netherlands

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    Appendix 7 Table sauce competitors in Danish market

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    Appendix 8 Competitors in Sweden Table sauce market

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    Appendix 9 Value chain Analysis for TCD.

    Inbound logistics : Drawing evidence from the case study (2011) it can inferred that Inbound

    logistics forms an important aspect for TCD as most of the chili are grown internally and some

    are outsourced and this large value to the production of chili sauces.

    Operations : Drawing evidence from the case study (2011) it can be said that operations

    constitutes to major activities as the activities in the operations are chili sauce preparation,

    bottling, labeling etc and this adds maximum value and this can be considered to be core

    competency of TCD.

    Outbound Logistics : Drawing evidence from the case study (2011) it can be said that TCD

    products are sent to retailers such as Tesco , Sainsbury's , Fenwick in North east region and it

    can be said this involves the least value to be added to the product as only transportation

    Marketing & Sales : Drawing evidence from the case study (2011) it can be said that TCD foods

    are highly reliant on Tesco and Sainsbury's for their promotional activities and these retailers

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    play in an important role in consumer buying of the product and hence there is 20 % of value

    added in this activity.

    Support activities : All other support activities apart from procurement as there are nosupport departments. Procurement adds 5 % of values as apart from chili TCD needs tomato

    puri's and some foods required which needs to be purchased before chili sauce production.

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