This assessment will cover -
- Elaborate the micro environmental analysis of Juul Labs
- Give appropriate opportunities and challenges in the company.
International marketing refers to implication of marketing principles in multiple countries. This term basically attracts organisation towards high profit opportunities which is available at international market (Baker and Magnini, 2016). This project is based on Juul Labs, which was founded in July, 2017 by Kevin burns. This company is offering electronic cigarette which is produced with nicotine salts as its key ingredients. Present report includes discussion on different model which are used for enhancing knowledge on international marketing environment. Further it discusses about challenges and opportunities which are available for organisations at international market place.
Micro Environment Analysis
International marketing is also named as global marketing as it includes marketing activities which are applied in international market according to the preferable needs and demand of its localite customers. In relation to Juul Labs, its CEO is planning to expand its business at international level. For this, main concern of CEO is to understand actual trading difference between USA and other countries (Cavusgil and et. al., 2014). In this regard marketing consultant of the company have conducted an analysis on micro environment in order to understand opportunity as well as threat that might occur at that time. For example: if the Juul Labs is expanding business in Indonesia, then elements of micro environment are described as below:
Customers: In this factor, it is required by Juul Labs to create customer for their product in international market by enhancing knowledge of its citizen about the products. Therefore, Juul Labs, can adopt social media as it is considered as an advertisement tool in order to aware customer about its products that is e-cigarette. This marketing tactic will create curiosity among customer about product and as a result, it will influence sales of the product too. As per the given example, the company is expanding its business for e cigarette in Indonesia, whose population rate is approximately 260million which is considered as an opportunity for the Juuls Labs. This reflects more chances of customers in this selected country.
Competitors: Business organisations have to take care of its competitor who offers similar kind of product in the same market. In relation to Juuls Labs, the company is required to initially analyse its competitors in international market. This will help the company in understanding existing scenario of products in expanding country which are faced by the organisation. Along with this, it can be said that by having extensive knowledge of competitor organisation can make suitable plan for themselves while entering into the market (Baack, Harris and Baack, 2013). Knowledge of competitor also helps organisation in upgrading their products in order to make it better than the customers.
Marketing intermediaries: This factor emphasis on analysing those business houses who works as a mediator while distributing products of the company in customers. In relation to Juuls Labs, it is important for this company to identify retailers, agents, financial institution and distribution agencies who will help them in reaching to the customers. It is important for organisation to identify cost effective method like …, to reach customer in a better manner that generates high profit margin for organisation.
Business organisations analysis international market so that they can identify number of opportunities which will help them to sustain longer in new market. In relation to expansion of Juuls in Indonesia, it has been analysed that Indonesia is one among those countries who has highest smoking rates in the world. This reflects that citizen of this country are highly addicted to cigarettes. Along with this, it has been observed that cigarettes are very common mode of addiction among youngsters and adults in Indonesia and there is no penalty on organisation while selling cigarettes to minors (Exclusive: Juul sounds out Indonesia for expansion, other Asian countries in its sights, 2018). This reflects as the most favourable opportunity for Juuls as they can easily expand their business in Indonesia with e-cigarette. Apart from this, there are some other benefits for Juuls while expanding its business in international market. These opportunities are described as below:
New market: It is the first and foremost opportunity for organisation who plans to expand their business at international market (Babin and Zikmund, 2015). As they gets chance to grab attention of customers in new market which will directly enhance their sales as well as profitability ratio of the company (5 benefits of international expansion, 2018). Therefore, its an growth option for Juuls to enter into market of Indonesia so that they can achieve its increase their number of customers.
Competitive advantage: It is an another opportunity for organisation who plans to expand their business at international market. Competitive advantage can be gained by organisation while their business at international level. In relation to Juuls, it is an opportunity for this company to expand its business in Indonesia. As the country is already indulged into smoke which helps the company in taking competitive advantage as e cigarette is a new concept in the world. It can be said that there are very few companies in the world who sells e cigarettes at the market (Dibb and Simkin, 2013). This leads to market development in Indonesia as Juuls is entering with the technically advanced product in the country. This helps the company in taking competitive advantage as there are very companies who are offering E- cigarette in the same country.
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Challenges and Solution
Language and cultural barriers: Effective communication is a best part of successful business but lack of communication efficiency becomes a hazardous challenge for those companies who are expanding at international level. Communication barriers generally occurs when communicator or speaker of the organisation faces difference from culture. In relation to Juuls, language and cultural barrier is the most common barrier for its expansion in Indonesia as it will be difficult for marketing department to convey their actual message with their customers.
Solution: This challenge can be minimised by hiring marketing team from the local area while expansion. Because, new employees of marketing team is familiar with market as well as their local language which will be helpful in influencing customers and persuading them to use the same product of the company. In relation to Juuls, its important for this organisation to hire domestic people as its staff in order to connect to the local customer effectively (Griffitts, 2016). Along with this, marketing team of Juuls work can also adopt new non verbal communication methods which includes symbols, body language, usage of sensor etc. as the main objective of this company is to communicate their message to customers no matter which method they are adopting.
Supply Chain risk: Supply chain management includes management of logistics, shipping, import and export in the core areas of the company. In relation to business expansion in international market, management of supply chain considered as the major challenges for the business enterprises. In relation to Juul Labs, management of supply change is a bigger challenge for this company as well. For example: if Juuls is taking its raw material in the Indonesia with the mode of transportation then there are probable chances that this transported raw material may not deliver on the expected time. This will directly hamper work of company in Indonesia.
Solution: In order to overcome challenge of Supply change management, it is important for the company to develop an effective strategy with the help of which impact of these problems may not arise. It can be said that by having an appropriate planning, Juul Labs can easily achieve its targeted goals and objective in Indonesia and will not face any problem in supply chain area as well.
Operational risks with recruiting employees: Another problem which might be faced by Juuls, is risk of hiring new people. It has been observed that while expanding business in Indonesia, its important for organisation to hire huge number of man power in order to conduct their operational activities in the organisational work effectively (Lane, 2015). This also creates risk for the organisation as they have to trust external people and there are probable chances that hired employee may reveal their special strategies with the competitor company. It can be said that hiring new staff for operational activities might be risky as there are probable chances of leaking of confidential information.
Solution: In order to overcome this barrier, it is recommended to Juul Labs to prepare an effective team only by considering referrals from the existing staff. As it helps them hiring new trustable employees who can work with the same company in Indonesia in effective manner. Along with this, it will be beneficial for the Juuls, to take their trust worthy employees to Indonesia for senior management team (Pappas, 2017). Therefore, it will contribute in maintaining confidentiality in the company. By adopting this strategy company can also secure its essential details by not involving new employees in confidential meetings.
As per the above mentioned report it can be said that international marketing refers to the implication marketing activities in more than one country. In this report, initially elements of micro environment are elaborated in order to understand their importance in the growth of the company. Along with this, it has been identified that supply chain management, language and cultural barriers are described with their proper solution.
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