Chosen Product to be marketed The chosen product to be marketed internationally is Angostura Aromatic Bitters; this product is indigenous to Trinidad and Tobago. This product was created by Dir Soggier, initially called "Dir Soggier Aromatic Bitters" and later renamed Angostura Bitters (C, 2011 )lat has maintained its unique and original secret recipe since its inception Minion. Angostura Bitters is exported to 150 countries worldwide and has maintained the classical and ultimate Ingredient for cocktails In the milling Industry.
However, its unique flavor causes it to go way beyond the bar with the ability to array flavors in the preparation of food dishes, and add aroma and a pleasant taste to soft beverages and deserts (C, 2011)While the product has an alcohol volume of 44. 7% each dash have an insignificant amount of alcohol and is labeled as non- alcoholic (C, 2011) Company Profile market leader for bitters. Besides being a Royal Warrant holder of the Queen of England. Angostura bitters have been internationally marketed to marketplaces around the globe, (Anon. N. D. ). The company vision is to advance its position as the principal producers of aromatic bitters globally. And their mission is to bring the spirit of Trinidad and Tobago to every customer experience by providing preferred products and excellent customer service, (C, 2011). Foreign Market Targeted The foreign country targeted for this product is Botswana; it is located in Southern Africa boarding Iambi and Zanzibar. This country is slightly smaller than Texas but larger than France and has a population of Just over 1. Million persons. English is the official language together with Statesman, which is used by most persons in Botswana. The climate reflects its geography with hot days and cool nights, with a any season that extends from November to March, (Ministry of Trade & Industry Botswana, 2010) Botswana has one of the fastest growth rates in per capita income in the world from independence in 1966 until 2006 and maintained a positive growth rate. World Bank data rate the country as 3rd in Africa for doing business and 52nd of 183 countries globally.
The business climate is considered fiscally sound and financially prudent together and is ranked number 1 in Africa by Transparency international (Ministry of Trade & Industry Botswana, 2010) Botswana annual GAP is $29. 7 billion with a 4. % growth per annum 2. 8% 5 year compound growth rate and inflation rate of 8. 5%, unemployment 7. 5% with a $16,030 per capita Anon. ( 2013). Key Factors Considered The term "Marketing Research" refers to the gathering, analyzing and presenting information related to a well-defined problem (Hellholes, 2011).
The growing complexities of international markets means it is critical to examine the key factors by collecting the relevant information. This information collected would form part of a successful global market strategy and becoming familiar with customers, competitors ND the broader business environment (Hellholes, 2011). The object of this report is to identify the key factors that would aid in determining how to enter international markets. It will also focus on the criteria for selecting market entry methods and reduce the risk in decision making.
The management of the organization will base its decision on a solid foundation of knowledge and strategically focus on the market rather than the product (Hellholes, 2011). When conducting business expansion strategies, identification of the right market is important for a number of reasons (Goodwill, 2011). The selection methods are critical to this organization policy, planning and budgeting processes. By using the appropriate market screening model of which a vast number exist, it can be a critical tool in arriving at a sound financial decision (Goodwill, 2011).
One approach used in selecting and screening international markets as identified by (Goodwill, 2011) is international market segmentation. In defining market segmentation the (Business Dictionary,n. D. ) identified the process as subdividing large homogeneous market into clearly identifiable segments having similar needs. Because each segment is fairly insistent in their needs and attitudes, they are likely to respond similarly to a particular business strategy, (Goodwill, 2011).
To effectively determine the criteria for market segmentation and decide the attractiveness of the market there are some a high degree of insurability, accessibility and accountability, on the hand specific characteristics has a low degree of insurability, (Goodwill, 2011). This approach of the different segmentation criteria is structured around the PEST model. The main principle of this model focuses on the following four key factors, political, economic, social and cultural combined with technological Goodwill, (2011). The factors as mentioned previously can be linked to both the general and specific features of market segmentation.
These critical areas would be explored to arrive at a decision by the organization to determine the attractiveness of the market for launching of aromatic bitters in the selected country. An important part of any business decision was evaluating the political environment in the country in which they choose to market a new product (Samuel, 2007). Legislation in the targeted country can impact on operations of a foreign reduce entering its local market. While companies are comfortable in assessing their local politics, the task is even more problematic when doing the same in another country (Arnold, 2013).
Political risk exist in every nation but the range of risk vary from country to country,historical the political stability of a country places it at the lower end of the risk factor. Three major political risk can be encountered they are ownership risk,operating risk and transfer risk,these risk maybe as a result of government action (Goodwill, 2011) . With significant natural resources and a market- oriented economy, Botswana has Africans highest sovereign credit rating. Botswana Democratic Party has governed this multi-party democracy since independence in 1966, (Index of Economic Freedom, 2013)).
Reduced demand for diamonds during the global economic crisis has contributed to slower GAP growth. To mitigate the impact of the economic slowdown Botswana worked with the Southern African Development Community to overcome the turmoil, (Index of Economic Freedom, 2013). A critical component is assessing the political risk factor to determine market potential and opportunities. This can be accomplished by making use of the Business Environment Risk Index(Beer) (Goodwill, 2011)Otherworld Bank data for ease of doing business index for the years 2009 to 2013 rate Botswana at number 56 nine points up from previous years.
Also the stated Botswana has consistently preserved good democratic government ,managed it natural resources and invested in its people and infrastructure. An independent Judiciary enforces contracts effectively and protects property rights, (Index of Economic Freedom, 2013). Economic Environment Factor Botswana economic freedom score is 70. 6 this is based on data obtained from 2013 Index of (Index of Economic Freedom, 2013). This makes the economy the 30th freest in the economic index and this is this is mainly due to continuing improvements in freedom from corruption and prudent government sending.
Its educated work force and political stability together with low taxes are responsible in a large part for good foreign investment. The competitiveness of the market has been supported by an efficient regulatory system and open trade policies, (Index of Economic Freedom, 2013) The tax incentives granted as follows , corporate tax 25%,corporate tax of 15% for manufacturing and financial services until 2020, Tax holiday,industrial rebate exemption from withholding taxes ,credits for withholding taxes in other jurisdiction,access to double taxation treaties and tax exemption for collective investment undertakings,(Nook, 2013).
Diamond exports have assured acceptable flows of foreign exchange. The business sector is equally well developed, with a self- governing central bank with very little government intervention (Anon. , 2013) To access tax and investment incentives foreign investors are encouraged, but not obliged, to set up Joint ventures with citizens or citizen-owned companies, Ministry of Trade & Industry (Anon. 2013). Nationally the country has no objection to investment ownership, the source of financing for investments, the marketing of products, the source of technology used by companies or the method of training used.
Foreign and private business could freely establish,attain and dispose of their interest in business enterprise Ministry of Trade & Industry, (Anon. , 2013). Secondary and Primary Research Taking into consideration Angostura Aromatic bitters is already marketed internationally to European,Eastern Asia, and some African nations (Anon. , n. D. ). It is reposed to use both research approaches to determine the attractiveness of the market. Market research can be either primary or secondary. Primary research is new research, carried out to answer specific issues or questions.
It can involve questionnaires, surveys or interviews with individuals or small groups (Arnold, 2013). Secondary research makes use of information previously researched for other purposes and publicly available. This includes published research reports in the library, surveys or the Internet. It can also include scientific reports produced by universities or government agencies (Anon. 2011). There is different ways of obtaining and analyzing information, some organization utilities a combination of both methods. Organizations often embark on secondary research first to find out what already is known about the subject.
It is more economical than setting up primary research (Goodwill, 2011). Primary research methods explained in greater details requires collecting information through questionnaires which provide answers to standard questions. These can be carried out by mail, online or face-to-face and can cover a large number of people. Interviews are usually one-to-one and focus on a list f questions and Focus groups which enable a number of people to discuss ideas or topics together and provide a range of views (Goodwill, 2011).
If market research questions are not adequately answered to determine feasible market entry, it may be necessary to investigate for further information in primary data (Anon. , 2011)This additional data can be collected using quantitative and qualitative research. Quantitative research presents information numerically, for illustration, by use of percentages. All respondents in interviews or questionnaires answer the same questions to ensure reliability. While on the other hand qualitative research gathers, analyses and interpret the data through observations of what people do and say (Goodwill, 2011) . Search refers to the meanings, concepts, definitions, characteristics, images, symbols, and descriptions of things. To further identify the difference between both approaches can be described as quantitative research is objective qualitative is subjective (Anon. , 2011) Internationally many decisions must be made to determine market readiness. Distribution is one of the ups of marketing or marketing mix variables. The others are price, product and promotion. The process of bringing a product or service to market, the ups is one way or probably the best-known way of defining the marketing mix, (Goodwill, 2011).
A good way to understand the ups is by the questions that you need to ask in defining your marketing mix (Anon. , 2013). Product, answers to the question of what does the customer want from the product? , what need does it satisfy? How and where the customers will use it? Place, takes into consideration, where do buyers look for our products? How to access the right distribution channel for our product? Or do we need a sales force? Price, the value of our product to our errs? Should discounts be offered to our trade customers or other specific segment of our market?
Comparing prices with our competitors? Promotion, what communication medium will be used to get across the marketing message? Will it be press, TV, radio, billboards or using social media, such as faceable, and other technological mediums? Or execution of holistic education programmer through the use of brand ambassadors (Anon. , n. D. ) . Market Analysis This study and business plan would illustrate the power of the Angostura Industry and the role of the marketing research along with information gathered which soused on the international market (Goodwill, 2011). T would also include information in reference to the target market, if there are any barriers that hinders market entry, strength and weaknesses, market share and the window of opportunity to enter the market (Anon. , n. D. ). Locally Angostura plans to invest approximately $30 million in the coming months to upgrade the equipment used to bottle its world famous aromatic bitters. This is expected to increase output by at least 25 percent in the month of September to October, 2013 (Sash, 2012). The chairman report for the ear 2011 indicated after profit tax of $102. Million which included $2. 1 million in foreign exchange. We continue to actively monitor the exchange rates of the Trinidad and Tobago dollar against the Euro and the United States dollar with a view to risk mitigation in light of the options available to us (Anon. , n. D. ). Botswana is considered a favorable market for exporting aromatic bitters because its real GAP growth rate averaged 9. 2% over the last three decades with the highest sustained growth rate in the world and has been matched only by China's performance in the asses.
The country advanced from being one of the ten poorest countries at independence in 1966 to being one of only four upper middle income countries in continental Sub- Sahara Africa, according to the World Bank. On the down side this growth rate has been reduced by the cost of combating HIVE/AIDS (Ministry of Trade & Industry Botswana, 2010) World Bank data rate the country as 3rd in Africa for doing business and financially prudent together and is ranked number 1 in Africa by Transparency international (Ministry of Trade & Industry Botswana, 2010). He country has no objection to investment ownership, the source of financing for investments, the marketing of products, the source of technology used by companies or the method of training used. Foreign and private business could freely establish business in Botswana. The key factors of the PEST approach used in determining the market attractiveness for aromatic bitters were Botswana robust economic conditions, in concurrence with a stable political and legal environment. The positive reviews coming from the World Bank and Transparency International together with its low corruption scores were also factors considered.
With Angostura already being involved in international trading of bitters only a secondary research was done with a view to have a primary research conducted prior to launching the product. The purpose of global marketing research function is to provide management with relevant information to determine the best options available. Taking into consideration all the data obtained on the market size, degree and type of competition, price, promotional differences, as well as barriers to trade has been analyses alongside the cost-effectiveness of various types of marketing variables.
The many consideration for placing and positioning aromatic bitters to the Botswana market is recommended, this would result in significant growth for the business (Goodwill, 2011). Conclusion The recommendation for Angostura Aromatic Bitters to be marketed to the country of Botswana was as a result of an analysis of the key factors involved in market research. International business attractiveness was the primary goal of this report. Initially, the report identified the product and target market and next focused on the factors that are directly relevant to the chosen product and business.