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X-Culture Report Draft

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Baqir Ali
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0% found this document useful (0 votes)
198 views13 pages

X-Culture Report Draft

Uploaded by

Baqir Ali
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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REPORT SECTION 1

TEAM 300

1. Investigation of the client company's industry


2. PESTEL analysis
3. Competitors + FMCG sector
4. SWOT analysis
5. Identify your client’s most promising new market

1. INVESTIGATION OF MASTERMEDIA’S INDUSTRY


Mastermedia is a Polish company that works in food exports. The company delivers
goods directly to retail stores from Poland. Mastermedia offers a large variety of products for
their customers, including cold cuts and meats, dairy products and fats, vegetables and
fruits, ready meals, juices and drinks, and an assortment of beauty and cosmetics products.
After the pandemic control measures ceased, the food service sector is expected to grow in
the next five years by a compound annual growth rate (CAGR) of 2.5%. The top products
exported to the United States include wine and spirits, processed seafood, breakfast cereals,
healthy snacks like nuts and dried fruit, condiments, confectionery, and vegetables. Poland’s
exports to the European Union (EU) include a large amount of tobacco products, poultry
meat, and dairy products.

2. PESTEL Analysis

a. Political -
i. Government regulation
1. Must adhere to food safety, labeling, and licensing laws within Poland
and other countries they distribute to.
ii. Trade policy
1. Fluctuations between countries' geopolitical interests could come to
conflict with trade policies, such as tariffs. This could affect operations,
supply chain continuity, and overall confidence within Mastermedia.
b. Economic -
i. Inflation and currency fluctuations
1. Inflation and exchange rate values may impact the cost of imported
food products and raw materials.
ii. Consumer behavior
1. Economic conditions may influence consumer spending on food
products. Economic downturn could lead consumers opting for
lower-priced or essential food items.
c. Social -
i. Dietary trends and preferences
1. Cultural preferences and consumer demand for healthy, organic, or
ethically sourced food can help Mastermedia tailor its product to meet
consumer needs. Understanding these trends can help bolster
Mastermedia’s image and presence.
ii. Health and wellness awareness
1. Lifestyle changes could see increased demand for nutritional and
functional food items.
d. Technological -
i. E-Commerce
1. With the growth of E-commerce in recent time, Mastermedia are
provided with an opportunity to reach a wider consumer network, and
can offer ordering and delivery options for its food products.
ii. Supply chain
1. Technological advancements to supply chain management can
enhance overall efficiency in its food distribution. Investing in such
efficiencies include inventory tracking systems and logistics
optimization tools. In doing so, Mastermedia can streamline
operations and reduce costs.
e. Environmental -
i. Carbon footprint reduction
1. Implementing measures to prevent and cut back on carbon emissions
to minimize negative environmental impact.
ii. Sustainable shipping and packaging
1. Promote eco-friendly food products and packaging.
f. Legal -
i. Food safety regulations
1. Compliance with food, hygiene, and labeling standards to ensure
overall food quality
ii. Contract and supplier agreements
1. Sustaining healthy business agreements regarding product quality,
pricing, and distributing channels.

3.

Competitor 1: Unilever

Name: Unilever

Business Model: British multinational consumer goods company with global presence.

Products/Services: Offers food products, personal care, home care, and renewables. Major
brands: Hellmann's, Knorr, Lipton, Magnum, Rexona, Omo, Dove.

Pricing Strategy: Varies by category and region, but generally mid-to-high prices.

Market Position: Global leader in FMCG, operating in over 190 countries.

Brand Archetype: Classic, Caregiver.

Unique Selling Proposition (USP): Diversified portfolio, strong R&D and innovation
investment.

Competitor 2: Nestlé

Name: Nestlé
Business Model: Swiss food and beverage company, the largest in the world in this sector.

Products/Services: Nescafé, Nespresso, KitKat, Maggi, Nesquik, Purina.

Pricing Strategy: Wide range from budget to premium products.

Market Position: Global leader in food and second largest in FMCG.

Brand Archetype: Nurturer, Caregiver.

Unique Selling Proposition (USP): Highly diversified portfolio, strong global presence and
image.

Competitor 3: Procter & Gamble

Name: Procter & Gamble

Business Model: American multinational consumer goods company, especially personal and
home care.

Products/Services: Pampers, Ariel, Pantene, Gillette, Old Spice, Oral-B.

Pricing Strategy: Has sub-brands for premium and budget segments.

Market Position: One of the largest FMCG companies in the world by revenue.

Brand Archetype: Innovator, Caregiver.

Unique Selling Proposition (USP): Strong R&D investment, excellent marketing and global
distribution.

4.

SWOT ANALYSIS

STRENGTHS WEAKNESSES

- Reputation for quality products.


- Market dominance in Polish export - Facing competition from various
of food and everyday products. domestic and international players.
- Family ownership fostering quick - Vulnerability due to dependency on
decision-making and flexibility. the export market.
- Provision of professional solutions - Potential limitations in product
for partners. range.
- Expertise in international export
markets.
OPPORTUNITIES THREATS

- Expansion into new geographic - Regulatory changes impacting


regions or product lines. operations.
- Utilizing e-commerce for broader - Economic instability affecting
market reach. consumer demand.
- Investing in product innovation to - Supply chain disruptions.
meet evolving consumer demands. - Changes in consumer preferences
necessitating adaptation.

5. IDENTIFY YOUR CLIENT’S MOST PROMISING NEW MARKET

We look at two companies are parallel to master media. which has been providing services
for a long time. I search two companies which are here:
- Walmart
- Sam’s club

Walmart/Sam's Club U.S. & Int'l Consumables/Food Executive Committee Supplier


Application:
https://corporate.walmart.com/suppliers/apply-to-be-a-supplier
Walmart's website is the second most trafficked eCommerce site. With such stats,
Mastermedia products would gain enormous exposure, which provides access to newer
customers as well as increased brand loyalty. Since COVID-19, Sam's Club has increasingly
become a more popular choice for shoppers, and their year-over-year growth has hit nearly
10%. This places Mastermedia in a significant lead to generate revenue. Because sales
have increased, expectations for supplier partners of the big-box store have also increased.
Would suggest filling out a supplier application and fulfilling all requirements to become a
supplier. Face-to-face meetings do not appear to be necessary. May be a waiting period. If
necessary, email the corporate office to push product distribution.

Section 2 - Marketing

1.) Who are the key decision-makers with respect to buying Mastermedia’s
products/services?
a.) Procurement Managers: Responsible for purchasing goods and services for
the company, procurement managers often have significant influence over
purchasing decisions.
b.) Category Managers: These professionals oversee specific product categories
within the company and are responsible for deciding which products to stock
and promote.
c.) Marketing Managers: They play a crucial role in evaluating and selecting
products to meet consumer demand and developing marketing strategies to
promote those products.
d.) Sales Managers: Sales managers negotiate contracts and agreements with
suppliers, so they often have a say in selecting distribution partners.
e.) Supply Chain Managers: Responsible for managing the movement of goods
from suppliers to customers, supply chain managers may be involved in
selecting distribution partners to ensure efficient delivery of products.
f.) Finance Managers: They evaluate the financial implications of purchasing
decisions and may be involved in negotiating pricing and payment terms with
suppliers.
g.) Senior Management/Executives: Depending on the size and structure of the
company, senior executives may also have input into purchasing decisions,
particularly for strategic partnerships.

2.)

How to promote and engage with a new market:


To enhance Mastermedia Megazyn’s overall market share, the following considerations may
help assist the food distribution company to reach new heights in their search to operate in
all available continents:

a. Market Research
i. By gathering information and insight on decision-makers within different
markets, Mastermedia can tailor their offerings based on these consumers. In
doing so, they will understand market trends and how they fluctuate among
consumers. In addition, they can gather valuable information on how their
competitors behave to counteract and prevail against them.
b. Partnerships & Alliances
i. By aligning with a market leader in a new market, Msstermedia can
collaborate efforts with another company to leverage their network and
ultimately expand beyond it in the future. This will allow the Polish company to
assimilate itself with ease in a new market.
c. Direct Engagement
i. By showcasing the quality and reliability of their work, Mastermedia can gain
the trust of decision-makers within a new market to successfully gain market
share within it. This can be done by offering first hand experiences that
showcase the company’s capabilities and operational capacity.

Cheap and Free Promotion:

The power of promotion is immense and by utilizing a popular social media platform to its
fullest potential can be crucial in finding success within a new market. Furthermore, it allows
for consumers to connect with Mastermedia and engage in their offerings. These
connections can lead to relationships that help sustain the company within a new market.
This will ultimately allow Mastermedia a cheap alternative compared to ordinary marketing
practices. These considerations may allow Mastermedia to have an advantage within any
market against their competitors:

a. Social Media
i. Create engaging accounts on platforms such as Instagram, Tiktok, LinkedIn,
and Facebook.
ii. Join relevant groups that are tied with decision makers to establish discussion
and connection that ultimately provide credibility to Mastermedia.
iii. Share valuable content that spreads the mission of Mastermedia and that
provides success stories to attract and engage potential customers.
b. Email Marketing
i. Create an opt-in email list that provides insights into the company’s
operations to keep consumers engaged.
ii. Send targeted email campaigns to potential consumers that provide
promotions, offerings, and deals
iii. Utilize analytics from emails to understand the preferences of consumers to
further streamline their operations and effectiveness within the market.

4.) Message

1. The most effective way to persuade clients to purchase our goods is to concentrate
on providing outstanding value and cultivating enduring connections. Above all, we
collaborate with partners to create cutting-edge food products that are suited to
certain market demands and preferences. By meeting client needs and providing
distinctive solutions, the business can improve its competitive position and the growth
of its partners. In addition to supporting applications, campaigns, and monitoring
actions, we offer partners marketing and branding support. increasing brand benefits
and product sales with your partners by strategically pushing products at the end.

2. In its marketing efforts, Mastermedia emphasizes its commitment to enable export


success through specialized expert solutions and continuous support. Mastermedia
uses eye-catching images, authentic testimonials and engaging information to
highlight its credibility, experience and commitment to building lasting relationships in
the global marketplace. Creating interesting content and implementation of an email
marketing campaign that informs potential partners about the benefits of working
with Mastermedia is a special way to convey this marketing message. These can be
articles, films, infographics and blog posts that highlight success stories, best
practices and industry insights.

3. When creating a comprehensive marketing campaign for Mastermedia, it is important


to emphasize the company's commitment to enhancing export success through
customized professional solutions and unwavering support. Mastermedia strives to
demonstrate its credibility, expertise and commitment to foster long-term partnerships
in international markets using a combination of compelling messages, engaging
images and strategic marketing elements. For instance:
● Digital Content: Interesting social media content that demonstrates Mastermedia's
expertise and commitment to partner success.
● Events and Webinars: Plan an event, lecture or workshop to deliver valuable
information and a chance for cooperating and networking with partners.
● Partnership Program: Establish a formal partnership program that offers partners
access to premium resources, special privileges, and discounts

4. To increase product demand, consider adjusting your brand name or presentation to


better suit consumer tastes. This includes understanding market preferences and
tailoring them to better suit your audience, increasing product demand and customer
engagement.
● Develop a unique brand: The current brand, “MasterMedia”, does not really reflect
the company's focus on food exports. Consider developing a unique brand that
reflects your company's expertise and values, such as "Tasty Exports" or "Global
Gourmet Products".
● Product quality: Consider posting high-quality photos of products on the website
along with information about the origin, ingredients and production process.
● Increase food safety: Food safety is a priority for consumers, so it's important that
the company maximizes its performance to food security. Consider displaying
information about your company's food safety certification and quality control
procedures on your website.

Promotional materials:

Make a sample marketing/promotional brochure or video or online ad.

To interest the potential distributors or large customer to distribute or buy your client’s
product, your client will need to present information about its products.

Illustrate your knowledge of the target consumers in your chosen new market by developing
a mock-up locally tailored marketing brochure, web page, or social media post that your
client’s sales personnel could bring to a sales meeting or share online.

You can also consider developing a script for a short promotional video, but text-and-graphic
based promotional materials are preferred.

It does not need to have the perfect graphic design. It should only serve as a concept or
sketch for what the brochure or online post should say. How to say it in a way that is
adjusted to the local culture and will capture the attention of the potential distributors or
customers in the proposed market.

Section 3 - Operations Management

1. Market Entry Modes

a. Optimal Market Entry Mode


- B2B: Given Mastermedia's involvement and skill within the trade of nourishment
items and ordinary utilized things, coordinating B2B deals may be a reasonable
showcase passage mode. This approach would include building up connections with
neighborhood distributors, wholesalers, or retailers within the target showcase, and
offering items straightforwardly to them.
- Joint Venture: A joint venture with a nearby accomplice may be another potential
advertisement section mode for Mastermedia. This approach would include joining
forces with a nearby company that has solid information of the target showcase, and
leveraging their mastery and assets to set up a nearness within the advertisement.
Preferences of a joint wander incorporate shared dangers and costs, get to the
partner's nearby information and assets, and the capacity to explore social and
administrative contrasts more successfully.
- Franchising: Franchising may be a reasonable market entry mode for Mastermedia
in case the company includes a solid brand and demonstrated commerce show that
can be imitated in other markets. This approach would include authorizing the rights
to the company's brand, items, and commerce demonstrated to free administrators in
trade for expenses and sovereignties. Focal points of diversifying incorporate lower
speculation costs and more prominent showcase scope.
- Wholly-Owned Subsidiary: Setting up a wholly-owned backup within the target
advertisement may be another potential market entry mode for Mastermedia. This
approach would include setting up a modern company within the target market that's
completely owned by Mastermedia. Advantages of a wholly-owned backup
incorporate more prominent control and adaptability, as well as the capacity to use
the parent company's assets and ability. In any case, this approach can too include
critical speculation and administrative obstacles.

Overall, the optimal market entry option for Mastermedia depends on a range of criteria,
including the company's goals, resources, target audience, and special characteristics of the
target market.
Based on the information provided, Master Media suggests that he pursue B2B direct sales
or joint ventures as potential market entry strategies.
These tactics will enable the company to create relationships with local partners and more
successfully manage cultural and legal differences, while leveraging its expertise and
experience in exporting food and consumer items.
However, before making a selection, it is crucial to undertake extensive market research and
analysis to identify the most attractive prospects and potential problems, and carefully
assess the benefits and disadvantages of each method.

b. A partnership with a local company may be a suitable market entry mode for
Mastermedia. Here are three potential candidates for such a partnership:

- Emperia Holding SA, a significant Polish retail firm, manages various supermarket
brands, notably Biedronka, Poland's largest discount grocery chain. Emperia Holding
SA could be a potential choice to partner with Mastermedia because it has a
significant position in the Polish retail market and an extensive branch network, which
would help Mastermedia expand its reach.
- Żabka Poland is a top Polish convenience store business with over 6,000 locations
nationally. Żabka Poland could be a potential choice to partner with Master Media
because it has a significant position in the Polish convenience store sector and an
extensive store network, which would help Master Media increase its reach.

2. Partnership & Alliances

a. Noble Foods - India


i. https://noblefoods.in
ii. Phone: +91 - 9867680096
iii. Email: info@noblefoods.in
iv. Noble Foods is formidable within the Indian market and has many
connections across the country. The company is strong in their efforts to
become a leader within India and have many connections abroad.
Furthemore, the company seeks out collaboration with other foreign
companies to also expand themselves.
v. Approach Tips
● Emphasize Mastermedia’s distribution capabilities and how they could
support Noble Foods
● Collaboration
○ Both companies could benefit one another and collaborate to
streamline their services
b. Agithia - United Arab Emirates
i. https://www.agthia.com
ii. Phone: +971 2 596 0600
iii. Email: N/A
iv. With connections and partnerships with companies throughout the Middle
East and Eurasia, Agithia is a formidable company in food distribution. They
are similar to Mastermedia as they too seek was to expand. The company is
also well established and diverse, making a partnership and alliance feasible.
v. Approach Tips
1. Open dialogue by providing goals of benefits of partnership and be
enthusiastic in mission to expand
2. Express interest in leveraging relationship to aid each other in
operations
c. McLane - United States of America
i. https://www.mclaneco.com
ii. Phone: +1 (254) 771-7500
iii. Email: N/A
iv. Based in Texas, USA, McLane serves as one of the largest distributors in the
country. Their location is ideal as it sits in the middle of the US and close to
Mexico, making it possible to enter within Mexico and expand south into Latin
America. The company is an industry leader and is partnered with many
beloved brands throughout the world.
v. Approach Tips
1. Mention opportunity for McLane to expand their services into the
larger market of the European Union
2. Showcase pride when speaking about Mastermedia, will appeal to
their pathos by showing how passionate the mission is.
3. Logistics
1. Air Freight: If Mastermedia needs fast delivery and is shipping high-value or
time-sensitive products, air freight could be the best option despite being
more expensive. It offers quicker transit times compared to sea freight and is
well-suited for smaller shipments or urgent deliveries.
2. Sea Freight: Sea freight is often the most cost-effective option for shipping
large volumes of goods over long distances. If Mastermedia's priority is to
minimize shipping costs and they can tolerate longer transit times, sea freight
might be the preferred choice.
3. Courier Services: International courier services like FedEx, DHL, or UPS offer
a balance between speed and cost for smaller shipments or urgent deliveries.
If Mastermedia needs reliable and time-definite delivery to the new market,
courier services could be a suitable option.
4. Freight Forwarders: Freight forwarders can provide comprehensive logistics
support, including customs clearance and coordination of transportation
modes. If Mastermedia requires assistance with complex shipping logistics,
freight forwarders can be valuable partners.
5. When shipping products to a new market, Mastermedia may encounter import
tariffs, customs duties, and other fees depending on the destination country’s
regulations and the nature of the products being shipped. These fees are
typically imposed by the customs authorities of the importing country and are
designed to generate revenue and regulate trade. Import tariffs are taxes
imposed on imported goods and are calculated based on factors such as the
product’s value, quantity, and classification according to the Harmonized
System (HS) code. Customs duties are similar to import tariffs and are levied
as a percentage of the product’s declared value or a specific amount per unit.
In addition to import tariffs and customs duties, Mastermedia may also need
to pay other fees, such as:
a. Value-added tax (VAT): Many countries impose VAT on imported
goods, which is calculated based on the product’s value, including
shipping and insurance costs.
b. Customs clearance fees: Customs brokers or freight forwarders may
charge fees for handling the customs clearance process on behalf of
Mastermedia.
c. Excise duties: Certain products, such as alcohol, tobacco, and luxury
goods, may be subject to excise duties in addition to import tariffs and
customs duties.
4. Trade regulations

Import Tariffs and Customs Duties:


● There is a 10% ad valorem import tariff on your product category when importing into
the suggested market. This tariff is applied to the declared customs value of the
goods.
● In addition, there is a 5% customs processing fee charged on the total value of the
shipment, including the product value and the import tariff.

Technical Requirements and Inspections:

● Your product is required to undergo testing and certification by the national standards
agency before it can be legally sold in the proposed market.
● The certification process involves submitting samples for laboratory testing to verify
the product meets all mandatory safety, quality, and technical standards. This can
take 4-6 weeks to complete.
● Once certified, your products will need to display the national quality mark on
packaging and labeling. There is an annual fee to maintain the certification.
● All shipments are also subject to customs inspections upon entry. Inspectors may
randomly select containers for detailed physical inspection of the goods.

To comply with these rules, your company will need to:

1. Factor the import tariffs and customs fees into your pricing for this market.
2. Initiate the product certification process well in advance, allowing enough time for the
testing and approval.
3. Ensure your packaging and labeling is updated to include the required quality marks
before shipping.
4. Be prepared for potential customs inspections and delays when importing the first
few shipments.

Pricing

A pricing strategy is basically a model or a method used to establish the best price for a
product or a service.

Cost Margin & Markup in Pricing:

Cost

Cost refers to the fees you incur from manufacturing, sourcing, or creating the product you
sell.
Margin

Margin refers to the amount your business earns after you subtract manufacturing costs.

Markup

Refers to the additional amount you charge for your product over the production and
manufacturing fees.

Mastermedia products:

There is a wide range of cold cuts and meats, dairy products and fats, vegetables and fruit,
ready meals, juices and drinks, as well as cosmetics and cleaning products and many more.

Pricing strategy for profits

Mastermedia’s Food Plus chain operates at the meeting point of wholesale and retail.
Everyone benefits here – manufacturers, distributors, retailers, and consumers.Food Plus is
increasing its share in international markets, where over 200 outlets were opened in the last
5 years. Food Plus stores are visited by around 55 000 customers each day.

Target market:

•Possible pricing strategy for Mastermedia's products and services in the Swedish market
that could result in the highest profits . It Increase market share and brand awareness
Achieve profitability and revenue Attract and retain customers Align prices with customer
perceived value.

• Swedish consumers who are interested in Polish food Ethnic food enthusiasts
Health-conscious consumers Consumers who are looking for high-quality food products
Budget-conscious.

Set prices based on value:


Once Mastermedia has quantified the value of its products and services, it can then set
prices accordingly. This may involve setting prices higher than competitors, but this can be
justified if Mastermedia is confident that its products and services offer superior value.

Pricing recommendations:

Mastermedia should initially use a penetration pricing strategy to attract customers to the
Swedish market. Once Mastermedia has established a customer base, it should use a
premium pricing strategy for its products and services that are targeted at health-conscious
consumers or consumers who are looking for high-quality food products.

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