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Lord Ashcroft International Business School
International Marketing and Brand Management
Department:
Marketing, Enterprise and Tourism
Module Code: MOD004152
Lecturer: Niall Caldwell
Level: 7
Academic Year: 2014/15
SID: 1500554
Name: Danilo
Surname: Valentino
Semester: Two
Contents
1. Introduction............................................................................................................................................... 2
2. The decision to internationalize .................................................................................................................... 3
2.1 Objectives................................................................................................................................................ 4
3. Deciding which market to enter.................................................................................................................... 5
3.1 Foreign environment analysis ................................................................................................................. 5
4. Market entry strategies................................................................................................................................. 7
5. Segmentation and Targeting ......................................................................................................................... 8
6. Marketing mix adaptation to the foreign market ......................................................................................... 9
6.1 Product .................................................................................................................................................... 9
6.1.1 S.W.O.T. analysis............................................................................................................................... 9
6.2 Place....................................................................................................................................................... 13
6.2.1 Grocery stores and supermarkets .................................................................................................. 13
6.2.2 Bar and Pubs................................................................................................................................... 14
6.2.3 Festivals and events........................................................................................................................ 15
6.3 Price....................................................................................................................................................... 15
6.4 Promotion.............................................................................................................................................. 16
7. First step and tactic ..................................................................................................................................... 17
8. Monitoring and Control............................................................................................................................... 19
9. Conclusions and Recommendations............................................................................................................ 20
References....................................................................................................................................................... 21
1. Introduction
In this task I am going to show the process of internationalization and how it can be
applied to an English product, as the “Thatchers” cider is. The country I have set as a
destination is Italy, where currently the brand does not exist. I have decided to
internationalize just one line among the several ciders that Thatchers offers, at first to
create a contact with the Italian market and start a distribution line and second in order to
avoid to take too much risk placing on the market the whole line of a very particular
product. The bottle I have chosen is “Thatchers Gold”, because its features are the closest
to the traditional cider: gold colour, lightly refined, tasty and refreshing (ThatchersCiderLtd,
2015)
Image 1, Thatcher Cider Gold, (ThatchersCiderLtd, 2015)
2. The decision to internationalize
Thatchers produces 50m litres of cider every year and it is currently exporting in
Scandinavia, Spain, Russia, Australia and US. (Buckland, 2015). As reported from
BusinessWest (2014) cider is mainly produced in South West of England and in the last
years its quality has started to be recognised on the International markets and actually
cider sales are rising rapidly around the world. UK Trade & Investment (UKTI) and
Business West have noticed this trend from the global market, and are pushing UK
producers to look at business opportunities abroad. As Buckland (2015) reports, Thatchers
has already seen a good prospective in this trend and has started international lucrative
deals. The Mediterranean area of Europe, in which Italy is placed, has not been touched
yet by these kind of exporting deals but it still represents a great source of opportunities.
Moreover, as Zekaria (2013) argues on The Wall Street Journal, “At Thatchers, cider's
growth means embracing change. It plans to add another 100 acres of apple trees over
the next five years to keep pace with demand. By then, it will also have 500 acres of fruit
supplied by contract growers”, and this is exactly what is going to happen in 2015, as
explained from the managing director Martin Thatcher (Buckland, 2015). This concept
reinforces the idea of internationalizing the product and demonstrates that Thatchers is
completely embracing this opportunity, because it is working to increase the availability of
raw material. Another reason for Thatchers to go abroad is that, according to Mintel
(2014), the alcohol consumption in UK is in decline and the prices of alcoholic drinks are
rising. At the same time a recent study of sales in UK shows that cider has lost its
momentum due to a higher amount of beer sold. (Berry, 2015) This scenario pushes the
company to look at the international market and find new consumers that will support the
sales’ growth. The objective of this project is to increase the company’s sales and to
introduce in Italy a new way to have fun and relax at the same time, and this will be
achieved by introducing a drink whose features can compete with those of wine and beer.
2.1 Objectives
 Launch one line of cider (Thatchers Gold) in Italy
 Start selling between 3-5 months
 Achieve an optimal level of product awareness within a year and gain an high level
of awareness in 2 years
 Share the market with the competitor at par in 2/3 years
3. Deciding which market to enter
3.1 Foreign environment analysis
The choice of Italy as a destination country is justified first of all in terms of country
attractiveness. In fact it is placed in the EU and, as the agreement establishes, there are
no tariffs. Furthermore the market regulation is similar to UK, it is easy to access from the
UK because it’s just one hour flight far away and it’s linked by low cost flights as well, it
represents a gateway to the Mediterranean market, which is still unexplored from the
company, and not less important, Italy has one of the world’s highest rates of household
wealth. The strengths of the Italian market itself are:
 good infrastructures; the product can reach every area of Italy with no issues;
 high level of internationalization; the cider would enter in a market already used to
foreign brands, therefore the risk that a nationalist behaviour from the consumers
restraints the product’s development in Italy is low;
 coveted tourists destination and good climatic conditions of Italy, especially in
summer, give the product and added value, by the time that it is a refreshing drink;
In terms of market size and market growth we must report also that a relevant increase
in Gross Domestic Product and internal consumption was expected in Italy in 2014, the
International Monetary Fund (IMF) estimates a growth rate of 0.6% for 2014 and 1.1% for
2015. Furthermore in order to facilitate and sustain the international relationships, in 2013
has been developed the new Foreign Direct Investment (FDI) plan called Destinazione
Italia, that will improve research and innovation processes and speed up procedures and
permits. This plan will give a “certainty package” to the foreign investors in terms of
regulation, time and fiscal aspect. Moreover Italy’s commitment regards the human aspect
as well, in fact the plan is implemented to improve the capacity to welcome foreign talents,
professionals and experts. (DestinazioneItalia, 2015)
This positive trend is reinforced by a consumer’s based marketing survey commissioned
by Heineken Italia to CRA in 2013. In particular Heineken has launched in 2010 the
English cider Strongbow Gold on the Italian market. After two years from the launch,
according to the data collected, among people aged 18-24 the cider’s use has jumped
from the 5,4% to the 27,8% from 2011 to 2012 and an increase has been recorded among
the target 25-34 (years old) whose cider’s consume has moved from the 16,8% of 2011 to
30,4% in 2012. It is possible to define the principal features of cider’s consumers as well:
male (62,7%), aged between 22 and 35 years (46,4%), living in north-west of Italy (31,4%).
The product awareness is higher among male population. The 31% of the Italian
population is aware that the main ingredient is the apple, and among these “cider
connoisseurs” the 65% knows that it is an alcoholic drink. (Belloni, 2013)
Looking at the competitive forces, which are part of the marketing “uncotrollables”, the only
brand of cider that has relevance in Italy is Strongbow Gold. In fact it dominates the market
and after it was launched in 2011 it registered a 100% increasing in sales in 2012 (King,
2013). Even though the Italian market is dominated by Strongbow Gold, Thatchers has the
opportunity to take over by differentiating the product and giving the consumers an
alternative choice. Other cider producers are currently working in Italy but it is quite a small
market concentrated in some areas of north-Italy. This craft was going to take off in the
first half of 1900 but after the introduction of fascist law all the Italian cider producers had
to stop making this drink. After this restraining measure only a few cider makers survived
in Italy, even though now laws and regulations are favourable to them. (King, 2013)
4. Market entry strategies
Cider is an alcoholic drink that requires particular proceedings from the fermentation to the
bottling. Entry strategies suitable for this type of product are exporting or manufacturing.
We cannot consider manufacturing because of different reasons. The first issue is the
availability of raw material, Thatchers has its source of apple in UK and, as we have
already argued, the company is planning to expand the production of apples in 2015 in
order to be able to increase the production of cider. By planting its own apple trees,
Thatchers will be able to reduce the production costs in few years. Moreover the cost of
manufacturing in Italy is one of the highest in Europe:
Graph 1, Manufacturing cost in Europe 2014, (Wright, 2014)
The main strategy considered for the Italian market penetration is exporting, which is a
common approach and one of the strategies that helps to create a permanent relationship
with a foreign market. Adopting this strategy the product can be placed in different
channels of distribution, from grocery stores to super stores, bar and pubs. All of these
channels can be reached by an agent middleman who works on commission and
advertising, both offline and online. The good aspect of this kind of strategy is that the
company does not lose its power on policy guidelines and prices, on the other hand the
manufacturer will take all the trading risks. The suggested way for the Company to ship the
product to Italy is using Letters of Credit (LC): this procedure allows the seller to take less
risks because it gets paid from a bank as soon as the products are shipped. On the other
side, the buyer goes to a bank to arrange a LC, the bank becomes the buyer and notifies
this action to a local bank in the seller’s country. In the end the buyer will receive the
product against a payment made to bank that issued the LC. (Pervez Ghauri, 2010)
In order to accelerate the process of placing the product in retailing shops, Thatchers
could start a collaborative relationship (Pervez Ghauri, 2010)with an important Italian
brand that delivers its products in bars, hotels and clubs in Italy. The Company has already
used this approach to start selling in Australia by signing a 10-year deal with Cooper's
Brewery (BusinessWest, 2015), in this way the company will use Cooper’s distribution line
and will give the Australian brand an added value by differentiating the range of products it
offers.
5. Segmentation and Targeting
Looking at the Italian consumer’s behaviour it is possible to consider a more specific
segment instead of considering all of the people who live in the Italian borders as potential
customers (Pervez Ghauri, 2010). The segment suggested is occasional drinkers. The
regular drinkers are not targeted because it would be difficult and expensive to change
their drinking habits and convince them to replace their favourite drinks with a new one.
Moreover if the percentage of regular drinkers is characterized by a decreasing trend in
the last years, people who are consuming alcohol occasionally are increasing (ISTAT,
2014). Among the occasional drinkers it is possible to identify different targets. The first
distinction is between men and women. As we have seen from the statistics (Belloni, 2013)
the women’s consume of cider is still lower than the men’s, but the Thatchers Gold has all
the features to be suitable for female consumers. This is a great opportunity to convert a
lot of female occasional drinkers in female occasional drinkers of English cider. The
second criteria consists in the distinction between young drinkers (18-24 years old) and
adult drinkers (25-34 years old). In both of these two categories has been registered an
increase of consume of cider but they need to receive different advertising messages
because of their different needs: in the case of younger drinkers the core advertising
message will be about fun and taste, in the case of adult drinkers it will be more about the
tradition, culture and taste.
6. Marketing mix adaptation to the foreign market
6.1 Product
In order to analyse the product’s potential and features I am going to perform a SWOT
analysis.
6.1.1 S.W.O.T. analysis
The S.W.O.T. analysis allows us to monitor the external and internal marketing
environment. After performing this analysis is possible to set specific goals in terms of
profitability, sales, market share, risk management, reputation and innovation. (Philip
Kotler, 2012)
Strengths
•Strong English cultural tradition(ThatchersCiderLtd,
2015)
•100 years experience in making
cider(ThatchersCiderLtd, 2015)
•Optimal combinations with the food
•Availability of more raw material from 2015
Weaknesses
•The name of the company is not known in Italy
•No contacts with retailers
Opportunities
•Scarcity of products with similar features in
italy(Belloni, 2013)
•Just one competitor present in the Market:Strongbow
Gold(King, 2013)
•From 2003 to 2013 the percentage of occasional
consumers of alcoholic drinks has raised from 37,6% to
41,2% in Italy(ISTAT, 2014)
•cider awareness is growing among the italian
consumers(Belloni, 2013)
•The fruity taste of the drink can be appreciated from
the female population whose awareness of the cider is
still lower than the male's: implementing a correct
marketing campain is possible to convert more women
in to cider's consumers
•International event to launch the product: Expo 2015
Threats
•If the level of awareness is not raised properly the
product could be confused among a great number of
different alcoholic drinks
•Italian people's attachment to the traditional drinks as
beer and wine(ISTAT, 2011)
Thatchers Gold is brewed following a strong English tradition and its quality comes from
the centennial experience that the company has in making ciders (ThatchersCiderLtd,
2015). Another strength that is possible to attribute to the product is its optimal relationship
with food: cider elates the taste of every kind of cheese, dessert (in France the pairing
cider-dessert is really common), meat and seafood. As we can see it is a really versatile
drink and it could be an alternative to the traditional wine not only in many restaurants that
we can find all over Italy, but also on the households’ dining tables. (Sidro, 2015). The
availability of raw material insured from lots of new apple trees planted in UK supports the
Company to go international and keep the same level of English quality too (Zekaria,
2013). These strengths can support a marketing campaign and help the Company to
appreciate the opportunities it has in the Italian market: a scarcity of products with similar
features, in terms of share of market (Philip Kotler, 2012), the presence of just one “close”
competitor (Strongbow Gold), the increasing percentage of alcoholic drinks consumed by
occasional drinkers in the past decade (ISTAT, 2014) and from the introduction of the
competitor’s product, the awareness of the cider that has raised up among the Italian
population. A further opportunity is that cider’s fruity taste can be appreciated from Italian
women whose awareness of cider is still lower than men’s (Belloni, 2013). A part from the
taste, the women’s tendency to like the product is supported by the light color of the drink,
the neutrality of the logo and the emotional message given by the name itself, which
reminds of a strong and powerful historical female politician who is Margaret Thatcher. In
this way the product could be seen as a symbol of independence and emancipation for
Italian women. Moreover, from May 2015 to October 2015 Italy will host the international
event Expo, which will have as main theme the clean energy and food. This will be the
opportunity for the company to present itself to the Italian market for the first time.
(Expo2015, 2015). On the other hand the company’s name is not known in Italy yet, thus
it has to invest resources in advertising and getting contacts with already existing retailers
such as pubs, bars and clubs. These weaknesses become threats if the marketing
campaign is not conducted properly and the level of product’s awareness remains low, as
a consequence there is the risk that the product is not recognised from the consumers and
they keep choosing their traditional drinks. Moreover in terms of share of heart, it has to
face the great attachment of Italian population to the two main alcoholic drinks such as
wine and beer, considered in this case as “distant” competitors (Philip Kotler, 2012), the
following chart shows the consumption of these two products in Italy in 2010:
Vino = wine
Birra = beer
Altri alcolici = other alcoholic drinks
Totale = total
Maschi = men
Femmine = women
Graph 2, Use of alcoholic drinks in Italy in 2010, (ISTAT, 2011)
These threats can be faced by adopting a proper marketing campaign that provides
advertising and raises the level of awareness. Moreover being able to be different from its
competitor, Thatchers Gold could gain its portion of market and improve the level of “minds
share” (Philip Kotler, 2012), and this is actually possible because it wants to be a good
quality drink, full of cultural meaning and reach of personality as well, due to its name and
its long tradition.
6.2 Place
As P. Ghauri et al (2010,p. 396) argue “in every country and in every market, urban or
rural, rich or poor, all consumers and industrial products eventually go through a
distribution process. The process includes the physical handling and distribution of goods,
the passage of ownership, and – most important from the standpoint of marketing strategy
– the buying and selling negotiations between producers and middlemen and between
middlemen and customers”. The strategy chosen for Thatchers’ market penetration is
exporting and once the product arrives in Italy it will get to the consumers through the
distribution channels. These will be grocery stores, pubs, bars clubs and supermarkets.
6.2.1 Grocery stores and supermarkets
The Italian distribution is characterized by a consistent number of supermarkets chains. In
order to try to reach the highest number of sales it is suggested for the company to start
selling through those chains that are more popular in Italy. In particular as Euromonitor
(2015) argues, Coop Italia led grocery retailers in Italy in 2014 with a 10% value share
followed by CONAD with 9%. These supermarkets are homogeneously distributed
throughout the country and would give the cider the proper visibility. In order to keep the
consistency of the product, Thatchers will sell its cider in the same type of bottles or cans,
as it happens in England and the packaging will be adapted to the size of the store that is
retailing. These distributor will assure the product a proper coverage for the market
penetration and a first touch point for Italian consumers with the merchandising of the
English cider. (Pervez Ghauri, 2010)
6.2.2 Bar and Pubs
As many other countries, Italy has lots of bar and pubs available all over the country. Two
main approaches are suggested in order to reach them:
 In Italy the company has the opportunity to use the distribution line of “Peroni”, an
Italian brand of beer, that currently is independent from Heineken Italia (the brand
that supports sales for the competitor Strongbow Gold) (Heinekencompany, 2015).
 Selling independently to pubs that will buy a minimum quantity of product and will
have Thatchers’ logo where the cider is served.
Image 2, Italian Pub, Private Source
6.2.3 Festivals and events
A further occasion for Thatchers to deliver its product is the several festivals and medieval
celebrations that take place in Italy (ItalyHeaven, 2015). This part of the market is more
difficult to analyse and reach but in terms of sales it is really relevant, the company will be
able to consider this market when the level of brand awareness will be higher.
6.3 Price
In order to define the best price for Thatchers Gold, I focus on the opportunities offered by
the product and the whole economic situation of Italy. The segment is composed by
occasional drinkers and particular importance is given to the women. For this reason the
product does not have to be really cheap because it is not going to be part of the everyday
shopping. Moreover as I have already said, Gov.Uk (2014)’s forecast about the Italian
market are positive. After these considerations the price for the product sold on the
grocery store’s shelves would be €1.20 per bottle/can, which would be €8.00 for an eight
cans package in supermarkets, lightly higher than the average price for a bottle of beer
which is € 1.11. The price for pubs, bars and clubs would be higher because of the
location. The bottle’s price will be € 2.50 and a pint will cost € 4.50 (Numbeo, 2015).
According to these considerations it is possible to state that the final price, seen as part of
the whole market, would be not really high and the price policy claims to sustain a rapid-
penetration strategy with the support of a consistent promotion. (Pervez Ghauri, 2010)
This type of strategy will allow the brand to gain market share more quickly and it is
suggested because the influence of traditional drinks in Italy is really relevant (ISTAT,
2011), therefore high price, linked to a skimming strategy, would stop Italian consumers
from buying an expensive product that has similar features (in terms of occasions in which
one would have an alcoholic drink) of those that they are already purchasing regularly.
6.4 Promotion
In order to promote the product Thatchers will use different channels:
Pubs: for the first months that an Italian pub will be spilling Thatchers cider the company
will send gadgets like t-shirts and keychain, these gadgets will reach both the retailers and
the customers.
Social Media: the company will use Facebook and Instagram to let customers share their
experience about the product. The benefits given by these Social networks are relevant in
terms of engaging consumers and raising awareness. In fact the images posted by the
users are directly linked to the emotions and are able to overcome those cultural limits that
would restrain the growth of the product in a new country (Hubert, 2015). Moreover the
costs of these channels are more competitive than the traditional television and radio
advertising. These advertising channels will always be used from the company in order to
keep a touch point with those young consumers aged between 18-24, furthermore
Thatchers could decide to introduce a new line of cider in the next years and the social
networks can work as a shortcut for new products to penetrate the market, in terms of
product awareness at least.
Fashion and Food Magazines: Thatchers can also advert the product on fashion
magazines as “Donna Moderna” or “Gioia”, two among the Italian magazines more bought
in UK in the last years. In this way the Company could use this advertising channel to
target a female audience and raise the women’s awareness in both Italy and UK (CISION,
2011). In the same way, Thatchers could be able to underline the optimal relationship that
cider has with food, by advertising the drink on Italian food magazines as “La cucina
italiana” and “Italianicious” which provide an English edition and could be sold in both
England and Italy again, with relevant benefits in terms of brand and products awareness
(MadeinItaly, 2015).
Television advertising: in the final part of the campaign, Thatchers Cider will be advertised
on televisions. As the Company has already done in UK, the advertising will be adapted to
the different seasons, from summer to winter, in order to communicate to the consumers
the suitability of the drink not just for summer but for all the kind of climatic conditions. It is
suggested to support the brand’s promotion on the televisions with the Harp’s music that
will create an engaging atmosphere and will differentiate the product from the traditional
wine and beer (Black, 2013). In this way the company could manage to underline the
cultural and mystical aspect of the drink and intrigue a sophisticated part of occasional
alcohol consumers.
Through these advertising channels the company will position its product as high level,
sophisticated and not expensive. According to the quality of the advertising and the
messages given, Thatchers will get on the market with a focused campaign (Pervez
Ghauri, 2010), that has the chance to be enlarged, adapted and designed to be accepted
from the whole market in a few years, and become in this way a product suitable for a wide
range of consumers.
7. First step and tactic
In 2015 Italy will host the international event Expo 2015. The main theme of this event will
be “Feeding the Planet, Energy for Life”, a really hot topic that is also linked to the food
distribution in some areas of the world in which people still die because of malnutrition. UK
is joining this event with a pavilion dedicated to the role of bees in the global ecosystem
(Gov.Uk, 2015). Thatchers has the opportunity to participate to this event by underlining
the fact that they will add 100 acres of apple trees to their farming. This is strictly linked to
Expo’s main theme because of many benefits that trees provide to the environment such
as regularization of the climate, cleaning the air and providing oxygen, saving water and
air from pollution and many others. (TreePeople, 2015)
Therefore the company has the great chance to move its first steps in Italy, advertise the
product and present itself on the market as high quality company that cares about ethical
values, a part from revenues.
In the long term the company’s commitment is to raise awareness of the product, be one
of the favourite drinks for women, be the right alternative to beer and wine and compete
with Strongbow Gold at par. Once the marketing mix has been adapted to the Italian
market the company needs to develop its marketing plan for two main reasons:
 Be aware of when to move each step
 Be able to control the marketing plan once it is started
The campaign will be structured as it follows:
Table1, Gantt chart
While the first step is moving Thatchers will work parallely on two different sides:
implementations of social media channels and strategic relationship with another brand in
order to get quicker on the distribution line. The sales will be supported by the advertising
Ganttchart Costpermonth May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16
EXPO2015
Facebook 10,000.00€
Instagram 20,000.00€
BrandRelationship
Magazineadv 8,000.00€
GrocerystoresandSupermarkets
TOT 38,000.00€ 116,000.00€
that will take place on the social networks for € 30,000 per month and on both the type of
magazines for € 8,000 per month (costs of advertising calculated as an average after
consulting different online sources). Once the level of awareness has increased the
company will place the cider’s cans on the supermarkets shelves. At this point, one year
after the first step, the brand will start to go deeper in the Italian culture by proposing the
English cider in festival and local celebrations.
Table2, Gantt chart
Finally Thatchers will be on the Italian televisions, which are expensive but reach a lot of
different consumers. According to the Italian agency Auditel (2014) the channels
suggested are Rai 1 at 12:00 p.m., when people are about to have lunch and 20:30 pm on
Mediaset Italia 1 when families have relax before going to sleep. The cost for the TV
advertising has been estimated around € 720,000 for three months and calculated as an
average crossing data coming from different online Italian sources. In any case it does not
exceed the company budget as the Company was able to invest £4 million on Tv
advertising in Uk in 2013. (Pescod, 2013)
8. Monitoring and Control
In order to have an overall view of the international marketing campaign and be able to
define if all the objectives have been hit we need to consider marketing metrics that will
help to measure all the relevant information (Philip Kotler, 2012). One important tool that is
available is Instagram stats: using this control approach the company is able to analyse
the customers’ feedback by tracking number of posts, different type of posts and images
Ganttchart Costperspot May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17
Festivals
TVadvertising 60,000.00€
TOT 60,000.00€ 720,000.00€
shared, which one is more relevant than another, how many people have joined a certain
event, in this way Thatchers will manage to keep a good level of relevance towards its
customers (Hubert, 2015). Instagram stats will be relevant to track mainly the response of
young consumers (18-24 years old). An added value given by this tool is the possibility to
track the consumer’s activities that are difficult to be registered because of size and
position of retailers as in the case of festivals and traditional celebrations.
A further way to monitor the international campaign is to insert in the magazines chosen to
advertise the product, a voucher that will led the consumers to grocery stores,
supermarkets, bar, pubs and clubs, giving the company the possibility to understand how
many consumers have seen the advertise and how many are becoming aware of the new
product.
In this way the Company would be able to monitor the Return on Investments (number of
sales) and the Return on Marketing (awareness of the product).
Moreover the data coming from online and offline interactions of users with the product will
help Thatchers to elaborate a database and improve the customer relationship
management towards those user that will demonstrate high attachment to the brand.
In terms of market share the first comparison will be with the direct competitor Strongbow
Gold: the task is to record a 33% of growth rate in the first year.
9. Conclusions and Recommendations
In conclusion the international marketing plan undertaken and implemented by Thatchers
gives the Company the possibility to grow in terms of sales and brand awareness. The
variables considered, both controllable and uncontrollable, revealed the existence of a
potentially positive market that is still unexplored. The plan is organized for two years, but
the objectives are long term and once the market is penetrated the company will adapt the
tactic and take decisions according to the data coming from sales and consumers’
feedbacks. It is recommended to evaluate carefully the costs of promotion through all the
different channels chosen, furthermore the terms and costs of the important relationship
with the local brand Peroni. A further recommendation is to invest part of the budget for a
market survey before starting to operate in Italy: the theme of the survey would be the
“level of tendency of Italian consumers to try a different drink which is not wine or beer”.
This preliminary step could give Thatchers a lot of important details about the market and
the consumers with which they are going to deal.
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Internationalization of the English brand Tatcher to Italy

  • 1. Lord Ashcroft International Business School International Marketing and Brand Management Department: Marketing, Enterprise and Tourism Module Code: MOD004152 Lecturer: Niall Caldwell Level: 7 Academic Year: 2014/15 SID: 1500554 Name: Danilo Surname: Valentino Semester: Two
  • 2. Contents 1. Introduction............................................................................................................................................... 2 2. The decision to internationalize .................................................................................................................... 3 2.1 Objectives................................................................................................................................................ 4 3. Deciding which market to enter.................................................................................................................... 5 3.1 Foreign environment analysis ................................................................................................................. 5 4. Market entry strategies................................................................................................................................. 7 5. Segmentation and Targeting ......................................................................................................................... 8 6. Marketing mix adaptation to the foreign market ......................................................................................... 9 6.1 Product .................................................................................................................................................... 9 6.1.1 S.W.O.T. analysis............................................................................................................................... 9 6.2 Place....................................................................................................................................................... 13 6.2.1 Grocery stores and supermarkets .................................................................................................. 13 6.2.2 Bar and Pubs................................................................................................................................... 14 6.2.3 Festivals and events........................................................................................................................ 15 6.3 Price....................................................................................................................................................... 15 6.4 Promotion.............................................................................................................................................. 16 7. First step and tactic ..................................................................................................................................... 17 8. Monitoring and Control............................................................................................................................... 19 9. Conclusions and Recommendations............................................................................................................ 20 References....................................................................................................................................................... 21 1. Introduction In this task I am going to show the process of internationalization and how it can be applied to an English product, as the “Thatchers” cider is. The country I have set as a destination is Italy, where currently the brand does not exist. I have decided to internationalize just one line among the several ciders that Thatchers offers, at first to
  • 3. create a contact with the Italian market and start a distribution line and second in order to avoid to take too much risk placing on the market the whole line of a very particular product. The bottle I have chosen is “Thatchers Gold”, because its features are the closest to the traditional cider: gold colour, lightly refined, tasty and refreshing (ThatchersCiderLtd, 2015) Image 1, Thatcher Cider Gold, (ThatchersCiderLtd, 2015) 2. The decision to internationalize Thatchers produces 50m litres of cider every year and it is currently exporting in Scandinavia, Spain, Russia, Australia and US. (Buckland, 2015). As reported from BusinessWest (2014) cider is mainly produced in South West of England and in the last years its quality has started to be recognised on the International markets and actually cider sales are rising rapidly around the world. UK Trade & Investment (UKTI) and Business West have noticed this trend from the global market, and are pushing UK producers to look at business opportunities abroad. As Buckland (2015) reports, Thatchers has already seen a good prospective in this trend and has started international lucrative
  • 4. deals. The Mediterranean area of Europe, in which Italy is placed, has not been touched yet by these kind of exporting deals but it still represents a great source of opportunities. Moreover, as Zekaria (2013) argues on The Wall Street Journal, “At Thatchers, cider's growth means embracing change. It plans to add another 100 acres of apple trees over the next five years to keep pace with demand. By then, it will also have 500 acres of fruit supplied by contract growers”, and this is exactly what is going to happen in 2015, as explained from the managing director Martin Thatcher (Buckland, 2015). This concept reinforces the idea of internationalizing the product and demonstrates that Thatchers is completely embracing this opportunity, because it is working to increase the availability of raw material. Another reason for Thatchers to go abroad is that, according to Mintel (2014), the alcohol consumption in UK is in decline and the prices of alcoholic drinks are rising. At the same time a recent study of sales in UK shows that cider has lost its momentum due to a higher amount of beer sold. (Berry, 2015) This scenario pushes the company to look at the international market and find new consumers that will support the sales’ growth. The objective of this project is to increase the company’s sales and to introduce in Italy a new way to have fun and relax at the same time, and this will be achieved by introducing a drink whose features can compete with those of wine and beer. 2.1 Objectives  Launch one line of cider (Thatchers Gold) in Italy  Start selling between 3-5 months  Achieve an optimal level of product awareness within a year and gain an high level of awareness in 2 years  Share the market with the competitor at par in 2/3 years
  • 5. 3. Deciding which market to enter 3.1 Foreign environment analysis The choice of Italy as a destination country is justified first of all in terms of country attractiveness. In fact it is placed in the EU and, as the agreement establishes, there are no tariffs. Furthermore the market regulation is similar to UK, it is easy to access from the UK because it’s just one hour flight far away and it’s linked by low cost flights as well, it represents a gateway to the Mediterranean market, which is still unexplored from the company, and not less important, Italy has one of the world’s highest rates of household wealth. The strengths of the Italian market itself are:  good infrastructures; the product can reach every area of Italy with no issues;  high level of internationalization; the cider would enter in a market already used to foreign brands, therefore the risk that a nationalist behaviour from the consumers restraints the product’s development in Italy is low;  coveted tourists destination and good climatic conditions of Italy, especially in summer, give the product and added value, by the time that it is a refreshing drink; In terms of market size and market growth we must report also that a relevant increase in Gross Domestic Product and internal consumption was expected in Italy in 2014, the International Monetary Fund (IMF) estimates a growth rate of 0.6% for 2014 and 1.1% for 2015. Furthermore in order to facilitate and sustain the international relationships, in 2013 has been developed the new Foreign Direct Investment (FDI) plan called Destinazione Italia, that will improve research and innovation processes and speed up procedures and permits. This plan will give a “certainty package” to the foreign investors in terms of regulation, time and fiscal aspect. Moreover Italy’s commitment regards the human aspect
  • 6. as well, in fact the plan is implemented to improve the capacity to welcome foreign talents, professionals and experts. (DestinazioneItalia, 2015) This positive trend is reinforced by a consumer’s based marketing survey commissioned by Heineken Italia to CRA in 2013. In particular Heineken has launched in 2010 the English cider Strongbow Gold on the Italian market. After two years from the launch, according to the data collected, among people aged 18-24 the cider’s use has jumped from the 5,4% to the 27,8% from 2011 to 2012 and an increase has been recorded among the target 25-34 (years old) whose cider’s consume has moved from the 16,8% of 2011 to 30,4% in 2012. It is possible to define the principal features of cider’s consumers as well: male (62,7%), aged between 22 and 35 years (46,4%), living in north-west of Italy (31,4%). The product awareness is higher among male population. The 31% of the Italian population is aware that the main ingredient is the apple, and among these “cider connoisseurs” the 65% knows that it is an alcoholic drink. (Belloni, 2013) Looking at the competitive forces, which are part of the marketing “uncotrollables”, the only brand of cider that has relevance in Italy is Strongbow Gold. In fact it dominates the market and after it was launched in 2011 it registered a 100% increasing in sales in 2012 (King, 2013). Even though the Italian market is dominated by Strongbow Gold, Thatchers has the opportunity to take over by differentiating the product and giving the consumers an alternative choice. Other cider producers are currently working in Italy but it is quite a small market concentrated in some areas of north-Italy. This craft was going to take off in the first half of 1900 but after the introduction of fascist law all the Italian cider producers had to stop making this drink. After this restraining measure only a few cider makers survived in Italy, even though now laws and regulations are favourable to them. (King, 2013)
  • 7. 4. Market entry strategies Cider is an alcoholic drink that requires particular proceedings from the fermentation to the bottling. Entry strategies suitable for this type of product are exporting or manufacturing. We cannot consider manufacturing because of different reasons. The first issue is the availability of raw material, Thatchers has its source of apple in UK and, as we have already argued, the company is planning to expand the production of apples in 2015 in order to be able to increase the production of cider. By planting its own apple trees, Thatchers will be able to reduce the production costs in few years. Moreover the cost of manufacturing in Italy is one of the highest in Europe: Graph 1, Manufacturing cost in Europe 2014, (Wright, 2014) The main strategy considered for the Italian market penetration is exporting, which is a common approach and one of the strategies that helps to create a permanent relationship with a foreign market. Adopting this strategy the product can be placed in different
  • 8. channels of distribution, from grocery stores to super stores, bar and pubs. All of these channels can be reached by an agent middleman who works on commission and advertising, both offline and online. The good aspect of this kind of strategy is that the company does not lose its power on policy guidelines and prices, on the other hand the manufacturer will take all the trading risks. The suggested way for the Company to ship the product to Italy is using Letters of Credit (LC): this procedure allows the seller to take less risks because it gets paid from a bank as soon as the products are shipped. On the other side, the buyer goes to a bank to arrange a LC, the bank becomes the buyer and notifies this action to a local bank in the seller’s country. In the end the buyer will receive the product against a payment made to bank that issued the LC. (Pervez Ghauri, 2010) In order to accelerate the process of placing the product in retailing shops, Thatchers could start a collaborative relationship (Pervez Ghauri, 2010)with an important Italian brand that delivers its products in bars, hotels and clubs in Italy. The Company has already used this approach to start selling in Australia by signing a 10-year deal with Cooper's Brewery (BusinessWest, 2015), in this way the company will use Cooper’s distribution line and will give the Australian brand an added value by differentiating the range of products it offers. 5. Segmentation and Targeting Looking at the Italian consumer’s behaviour it is possible to consider a more specific segment instead of considering all of the people who live in the Italian borders as potential customers (Pervez Ghauri, 2010). The segment suggested is occasional drinkers. The regular drinkers are not targeted because it would be difficult and expensive to change their drinking habits and convince them to replace their favourite drinks with a new one. Moreover if the percentage of regular drinkers is characterized by a decreasing trend in
  • 9. the last years, people who are consuming alcohol occasionally are increasing (ISTAT, 2014). Among the occasional drinkers it is possible to identify different targets. The first distinction is between men and women. As we have seen from the statistics (Belloni, 2013) the women’s consume of cider is still lower than the men’s, but the Thatchers Gold has all the features to be suitable for female consumers. This is a great opportunity to convert a lot of female occasional drinkers in female occasional drinkers of English cider. The second criteria consists in the distinction between young drinkers (18-24 years old) and adult drinkers (25-34 years old). In both of these two categories has been registered an increase of consume of cider but they need to receive different advertising messages because of their different needs: in the case of younger drinkers the core advertising message will be about fun and taste, in the case of adult drinkers it will be more about the tradition, culture and taste. 6. Marketing mix adaptation to the foreign market 6.1 Product In order to analyse the product’s potential and features I am going to perform a SWOT analysis. 6.1.1 S.W.O.T. analysis The S.W.O.T. analysis allows us to monitor the external and internal marketing environment. After performing this analysis is possible to set specific goals in terms of profitability, sales, market share, risk management, reputation and innovation. (Philip Kotler, 2012)
  • 10. Strengths •Strong English cultural tradition(ThatchersCiderLtd, 2015) •100 years experience in making cider(ThatchersCiderLtd, 2015) •Optimal combinations with the food •Availability of more raw material from 2015 Weaknesses •The name of the company is not known in Italy •No contacts with retailers Opportunities •Scarcity of products with similar features in italy(Belloni, 2013) •Just one competitor present in the Market:Strongbow Gold(King, 2013) •From 2003 to 2013 the percentage of occasional consumers of alcoholic drinks has raised from 37,6% to 41,2% in Italy(ISTAT, 2014) •cider awareness is growing among the italian consumers(Belloni, 2013) •The fruity taste of the drink can be appreciated from the female population whose awareness of the cider is still lower than the male's: implementing a correct marketing campain is possible to convert more women in to cider's consumers •International event to launch the product: Expo 2015 Threats •If the level of awareness is not raised properly the product could be confused among a great number of different alcoholic drinks •Italian people's attachment to the traditional drinks as beer and wine(ISTAT, 2011)
  • 11. Thatchers Gold is brewed following a strong English tradition and its quality comes from the centennial experience that the company has in making ciders (ThatchersCiderLtd, 2015). Another strength that is possible to attribute to the product is its optimal relationship with food: cider elates the taste of every kind of cheese, dessert (in France the pairing cider-dessert is really common), meat and seafood. As we can see it is a really versatile drink and it could be an alternative to the traditional wine not only in many restaurants that we can find all over Italy, but also on the households’ dining tables. (Sidro, 2015). The availability of raw material insured from lots of new apple trees planted in UK supports the Company to go international and keep the same level of English quality too (Zekaria, 2013). These strengths can support a marketing campaign and help the Company to appreciate the opportunities it has in the Italian market: a scarcity of products with similar features, in terms of share of market (Philip Kotler, 2012), the presence of just one “close” competitor (Strongbow Gold), the increasing percentage of alcoholic drinks consumed by occasional drinkers in the past decade (ISTAT, 2014) and from the introduction of the competitor’s product, the awareness of the cider that has raised up among the Italian population. A further opportunity is that cider’s fruity taste can be appreciated from Italian women whose awareness of cider is still lower than men’s (Belloni, 2013). A part from the taste, the women’s tendency to like the product is supported by the light color of the drink, the neutrality of the logo and the emotional message given by the name itself, which reminds of a strong and powerful historical female politician who is Margaret Thatcher. In this way the product could be seen as a symbol of independence and emancipation for Italian women. Moreover, from May 2015 to October 2015 Italy will host the international event Expo, which will have as main theme the clean energy and food. This will be the opportunity for the company to present itself to the Italian market for the first time. (Expo2015, 2015). On the other hand the company’s name is not known in Italy yet, thus it has to invest resources in advertising and getting contacts with already existing retailers
  • 12. such as pubs, bars and clubs. These weaknesses become threats if the marketing campaign is not conducted properly and the level of product’s awareness remains low, as a consequence there is the risk that the product is not recognised from the consumers and they keep choosing their traditional drinks. Moreover in terms of share of heart, it has to face the great attachment of Italian population to the two main alcoholic drinks such as wine and beer, considered in this case as “distant” competitors (Philip Kotler, 2012), the following chart shows the consumption of these two products in Italy in 2010: Vino = wine Birra = beer Altri alcolici = other alcoholic drinks Totale = total Maschi = men Femmine = women Graph 2, Use of alcoholic drinks in Italy in 2010, (ISTAT, 2011) These threats can be faced by adopting a proper marketing campaign that provides advertising and raises the level of awareness. Moreover being able to be different from its
  • 13. competitor, Thatchers Gold could gain its portion of market and improve the level of “minds share” (Philip Kotler, 2012), and this is actually possible because it wants to be a good quality drink, full of cultural meaning and reach of personality as well, due to its name and its long tradition. 6.2 Place As P. Ghauri et al (2010,p. 396) argue “in every country and in every market, urban or rural, rich or poor, all consumers and industrial products eventually go through a distribution process. The process includes the physical handling and distribution of goods, the passage of ownership, and – most important from the standpoint of marketing strategy – the buying and selling negotiations between producers and middlemen and between middlemen and customers”. The strategy chosen for Thatchers’ market penetration is exporting and once the product arrives in Italy it will get to the consumers through the distribution channels. These will be grocery stores, pubs, bars clubs and supermarkets. 6.2.1 Grocery stores and supermarkets The Italian distribution is characterized by a consistent number of supermarkets chains. In order to try to reach the highest number of sales it is suggested for the company to start selling through those chains that are more popular in Italy. In particular as Euromonitor (2015) argues, Coop Italia led grocery retailers in Italy in 2014 with a 10% value share followed by CONAD with 9%. These supermarkets are homogeneously distributed throughout the country and would give the cider the proper visibility. In order to keep the consistency of the product, Thatchers will sell its cider in the same type of bottles or cans, as it happens in England and the packaging will be adapted to the size of the store that is retailing. These distributor will assure the product a proper coverage for the market
  • 14. penetration and a first touch point for Italian consumers with the merchandising of the English cider. (Pervez Ghauri, 2010) 6.2.2 Bar and Pubs As many other countries, Italy has lots of bar and pubs available all over the country. Two main approaches are suggested in order to reach them:  In Italy the company has the opportunity to use the distribution line of “Peroni”, an Italian brand of beer, that currently is independent from Heineken Italia (the brand that supports sales for the competitor Strongbow Gold) (Heinekencompany, 2015).  Selling independently to pubs that will buy a minimum quantity of product and will have Thatchers’ logo where the cider is served. Image 2, Italian Pub, Private Source
  • 15. 6.2.3 Festivals and events A further occasion for Thatchers to deliver its product is the several festivals and medieval celebrations that take place in Italy (ItalyHeaven, 2015). This part of the market is more difficult to analyse and reach but in terms of sales it is really relevant, the company will be able to consider this market when the level of brand awareness will be higher. 6.3 Price In order to define the best price for Thatchers Gold, I focus on the opportunities offered by the product and the whole economic situation of Italy. The segment is composed by occasional drinkers and particular importance is given to the women. For this reason the product does not have to be really cheap because it is not going to be part of the everyday shopping. Moreover as I have already said, Gov.Uk (2014)’s forecast about the Italian market are positive. After these considerations the price for the product sold on the grocery store’s shelves would be €1.20 per bottle/can, which would be €8.00 for an eight cans package in supermarkets, lightly higher than the average price for a bottle of beer which is € 1.11. The price for pubs, bars and clubs would be higher because of the location. The bottle’s price will be € 2.50 and a pint will cost € 4.50 (Numbeo, 2015). According to these considerations it is possible to state that the final price, seen as part of the whole market, would be not really high and the price policy claims to sustain a rapid- penetration strategy with the support of a consistent promotion. (Pervez Ghauri, 2010) This type of strategy will allow the brand to gain market share more quickly and it is suggested because the influence of traditional drinks in Italy is really relevant (ISTAT, 2011), therefore high price, linked to a skimming strategy, would stop Italian consumers
  • 16. from buying an expensive product that has similar features (in terms of occasions in which one would have an alcoholic drink) of those that they are already purchasing regularly. 6.4 Promotion In order to promote the product Thatchers will use different channels: Pubs: for the first months that an Italian pub will be spilling Thatchers cider the company will send gadgets like t-shirts and keychain, these gadgets will reach both the retailers and the customers. Social Media: the company will use Facebook and Instagram to let customers share their experience about the product. The benefits given by these Social networks are relevant in terms of engaging consumers and raising awareness. In fact the images posted by the users are directly linked to the emotions and are able to overcome those cultural limits that would restrain the growth of the product in a new country (Hubert, 2015). Moreover the costs of these channels are more competitive than the traditional television and radio advertising. These advertising channels will always be used from the company in order to keep a touch point with those young consumers aged between 18-24, furthermore Thatchers could decide to introduce a new line of cider in the next years and the social networks can work as a shortcut for new products to penetrate the market, in terms of product awareness at least. Fashion and Food Magazines: Thatchers can also advert the product on fashion magazines as “Donna Moderna” or “Gioia”, two among the Italian magazines more bought in UK in the last years. In this way the Company could use this advertising channel to target a female audience and raise the women’s awareness in both Italy and UK (CISION, 2011). In the same way, Thatchers could be able to underline the optimal relationship that cider has with food, by advertising the drink on Italian food magazines as “La cucina
  • 17. italiana” and “Italianicious” which provide an English edition and could be sold in both England and Italy again, with relevant benefits in terms of brand and products awareness (MadeinItaly, 2015). Television advertising: in the final part of the campaign, Thatchers Cider will be advertised on televisions. As the Company has already done in UK, the advertising will be adapted to the different seasons, from summer to winter, in order to communicate to the consumers the suitability of the drink not just for summer but for all the kind of climatic conditions. It is suggested to support the brand’s promotion on the televisions with the Harp’s music that will create an engaging atmosphere and will differentiate the product from the traditional wine and beer (Black, 2013). In this way the company could manage to underline the cultural and mystical aspect of the drink and intrigue a sophisticated part of occasional alcohol consumers. Through these advertising channels the company will position its product as high level, sophisticated and not expensive. According to the quality of the advertising and the messages given, Thatchers will get on the market with a focused campaign (Pervez Ghauri, 2010), that has the chance to be enlarged, adapted and designed to be accepted from the whole market in a few years, and become in this way a product suitable for a wide range of consumers. 7. First step and tactic In 2015 Italy will host the international event Expo 2015. The main theme of this event will be “Feeding the Planet, Energy for Life”, a really hot topic that is also linked to the food distribution in some areas of the world in which people still die because of malnutrition. UK is joining this event with a pavilion dedicated to the role of bees in the global ecosystem
  • 18. (Gov.Uk, 2015). Thatchers has the opportunity to participate to this event by underlining the fact that they will add 100 acres of apple trees to their farming. This is strictly linked to Expo’s main theme because of many benefits that trees provide to the environment such as regularization of the climate, cleaning the air and providing oxygen, saving water and air from pollution and many others. (TreePeople, 2015) Therefore the company has the great chance to move its first steps in Italy, advertise the product and present itself on the market as high quality company that cares about ethical values, a part from revenues. In the long term the company’s commitment is to raise awareness of the product, be one of the favourite drinks for women, be the right alternative to beer and wine and compete with Strongbow Gold at par. Once the marketing mix has been adapted to the Italian market the company needs to develop its marketing plan for two main reasons:  Be aware of when to move each step  Be able to control the marketing plan once it is started The campaign will be structured as it follows: Table1, Gantt chart While the first step is moving Thatchers will work parallely on two different sides: implementations of social media channels and strategic relationship with another brand in order to get quicker on the distribution line. The sales will be supported by the advertising Ganttchart Costpermonth May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 EXPO2015 Facebook 10,000.00€ Instagram 20,000.00€ BrandRelationship Magazineadv 8,000.00€ GrocerystoresandSupermarkets TOT 38,000.00€ 116,000.00€
  • 19. that will take place on the social networks for € 30,000 per month and on both the type of magazines for € 8,000 per month (costs of advertising calculated as an average after consulting different online sources). Once the level of awareness has increased the company will place the cider’s cans on the supermarkets shelves. At this point, one year after the first step, the brand will start to go deeper in the Italian culture by proposing the English cider in festival and local celebrations. Table2, Gantt chart Finally Thatchers will be on the Italian televisions, which are expensive but reach a lot of different consumers. According to the Italian agency Auditel (2014) the channels suggested are Rai 1 at 12:00 p.m., when people are about to have lunch and 20:30 pm on Mediaset Italia 1 when families have relax before going to sleep. The cost for the TV advertising has been estimated around € 720,000 for three months and calculated as an average crossing data coming from different online Italian sources. In any case it does not exceed the company budget as the Company was able to invest £4 million on Tv advertising in Uk in 2013. (Pescod, 2013) 8. Monitoring and Control In order to have an overall view of the international marketing campaign and be able to define if all the objectives have been hit we need to consider marketing metrics that will help to measure all the relevant information (Philip Kotler, 2012). One important tool that is available is Instagram stats: using this control approach the company is able to analyse the customers’ feedback by tracking number of posts, different type of posts and images Ganttchart Costperspot May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Festivals TVadvertising 60,000.00€ TOT 60,000.00€ 720,000.00€
  • 20. shared, which one is more relevant than another, how many people have joined a certain event, in this way Thatchers will manage to keep a good level of relevance towards its customers (Hubert, 2015). Instagram stats will be relevant to track mainly the response of young consumers (18-24 years old). An added value given by this tool is the possibility to track the consumer’s activities that are difficult to be registered because of size and position of retailers as in the case of festivals and traditional celebrations. A further way to monitor the international campaign is to insert in the magazines chosen to advertise the product, a voucher that will led the consumers to grocery stores, supermarkets, bar, pubs and clubs, giving the company the possibility to understand how many consumers have seen the advertise and how many are becoming aware of the new product. In this way the Company would be able to monitor the Return on Investments (number of sales) and the Return on Marketing (awareness of the product). Moreover the data coming from online and offline interactions of users with the product will help Thatchers to elaborate a database and improve the customer relationship management towards those user that will demonstrate high attachment to the brand. In terms of market share the first comparison will be with the direct competitor Strongbow Gold: the task is to record a 33% of growth rate in the first year. 9. Conclusions and Recommendations In conclusion the international marketing plan undertaken and implemented by Thatchers gives the Company the possibility to grow in terms of sales and brand awareness. The variables considered, both controllable and uncontrollable, revealed the existence of a potentially positive market that is still unexplored. The plan is organized for two years, but
  • 21. the objectives are long term and once the market is penetrated the company will adapt the tactic and take decisions according to the data coming from sales and consumers’ feedbacks. It is recommended to evaluate carefully the costs of promotion through all the different channels chosen, furthermore the terms and costs of the important relationship with the local brand Peroni. A further recommendation is to invest part of the budget for a market survey before starting to operate in Italy: the theme of the survey would be the “level of tendency of Italian consumers to try a different drink which is not wine or beer”. This preliminary step could give Thatchers a lot of important details about the market and the consumers with which they are going to deal. References Auditel, 2014. Auditel. [Online] Available at: http://www.auditel.it/media/filer_public/ca/df/cadf651c-38c5-4ae1-8b01- 2cd233a97ffc/sintesi_annuale_2014_fascia_standard.pdf [Accessed 28 4 2015]. BBC, 2014. Thatchers signs 10-year deal to sell cider in Australia. [Online] Available at: http://www.bbc.co.uk/news/uk-england-somerset-27895875 [Accessed 26 4 2015]. Belloni, M., 2013. In Italia è Strongbow Gold il sidro al sapore d'estate. [Online] Available at: http://www.informacibo.it/Rubriche/Non-solo-moda/in-italia-strongbow-gold-il-sidro-al- sapore-destate [Accessed 19 3 2015]. Berry, M., 2015. The big internview: Martin Thatcher, Thatchers Cider. [Online] Available at: http://www.morningadvertiser.co.uk/Drinks/Cider/The-Big-Interview-Martin-Thatcher- Thatchers-Cider [Accessed 3 5 2015]. Black, R., 2013. First Christmas campaign for Thatchers cider. [Online] Available at: http://www.morningadvertiser.co.uk/content/view/full/853286 [Accessed 30 4 2015]. Buckland, R., 2015. Thatchers hosts UKTI boss to showcase how it takes cider from the West to the world. [Online] Available at: http://www.bristol-business.net/ukti-boss-brings-in-cider-knowledge-to-hear-now-thatchers- has-taken-it-from-the-west-to-the-world/ [Accessed 30 3 2015]. BusinessWest, 2014. Cider to conquer the world in British export drive. [Online] Available at: http://www.businesswest.co.uk/press-office/news-and-press/2014/10/23/cider-to-conquer- the-world-in-british-export-drive [Accessed 27 3 2015].
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