Topic 4.6: International Marketing Questions

Harbour Knitwear, a small maker of wool sweaters, wants to start selling in other countries. State two methods Harbour Knitwear could use to enter an international market.

Brightfield Cereals plans to sell its sweet breakfast cereals in Country Z, where most families eat a hot, savoury breakfast together. Describe one cultural difference that Brightfield Cereals may face when marketing its cereals in Country Z.

Pelago Swimwear, a clothing brand, is about to launch its swimwear in three new countries. State two differences between countries that could threaten a business marketing its products abroad.

Brightwater Juices plans to sell its fruit juice in Country R. Table 1: Country R, selected market information | Population | 8 000 000 | |---|---| | Fruit juice drunk per person per year (litres) | 12 | | Brightwater’s estimated market share | 1.5% | Using Table 1, calculate Brightwater’s estimated sales of juice in Country R, in litres per year (show all your working).

Pebble Games makes board games in one workshop and sells them only in its home country. Describe e-commerce as a method for Pebble Games to enter international markets.

Define the term foreign direct investment.

Rosaleda Flowers grows and packs fresh cut flowers. It plans to export them to supermarkets in a country 2 000 km away, which charges a 15% tariff on imported flowers. Explain one disadvantage for Rosaleda Flowers of entering this market by exporting.

A producer enters a foreign market through a local agent. What is the main advantage?

SunArc Solar installs solar panels in its home country. To enter a country where foreign firms need government permits, it plans a joint venture with Duna Build, a local construction firm. Each would own half of a new company and share its profits. Explain one advantage and one disadvantage for SunArc Solar of entering this country through a joint venture.

Veloria Bikes makes bicycles in its home country and exports 30% of them to a large neighbouring country. That country has just raised its tariff on imported bicycles from 5% to 25%. Veloria’s board is considering building its own assembly plant there for $12 million. Explain one advantage and one disadvantage for Veloria Bikes of entering the neighbouring country through direct investment.

Hartwell Games sells board games at home with long written instructions and jokes built on English puns. It plans to sell them in Country Q, where English is not spoken. Explain one threat to Hartwell Games from language differences in Country Q.

How can selling in several countries lower a manufacturer's unit costs?

What is a cultural challenge a business may face when marketing a product in a new country?

What is an opportunity for a business of marketing its products internationally?

What is the difference between a standardised and an adapted international marketing strategy?

Why might a business enter an overseas market through a joint venture rather than by exporting?

Explain two reasons why a business might enter an overseas market through a joint venture rather than by exporting.

Brickwise makes building toys for children aged 6 to 12 and plans to advertise in Country A and Country B. Table 1 shows two of Hofstede’s cultural dimensions for each country. Table 1: Hofstede scores | Dimension | Country A | Country B | |---|---|---| | Individualism | 85 | 20 | | Masculinity | 70 | 30 | Suggest two ways in which Brickwise’s adverts could differ between Country A and Country B.

Verdant Juice sells cold-pressed juices at home in 250 ml bottles, with English labels and the claim "detox in a bottle". It is entering Country W, where fruit is usually eaten fresh at family meals and health claims such as "detox" are banned on food labels. Explain one advantage and one disadvantage for Verdant Juice of adapting its marketing mix for Country W.

Outline two ways in which a business could reduce the risk of cultural mistakes when marketing its products in another country.