course material

1. MG628 International Marketing Management
Answers:
Introduction
The company Green Chef, is a US based company that delivers organic meal kits. It delivers a
wide range of products for the consumers that require organic, vegan, paleo, and keto
dietaries. They provide fresh ingredients and easy to make home recipes, mainly focusing to
promote a sustainable and healthy lifestyle (Green Chef, 2022). To expand the company into
the global market, this report discusses the market entry strategies and compares direct
association to the joint venture discussing the factors that affect the choice of the market
entry mode. It discusses Green Chef’s joint venture with Amazon as a to-be successful mode
of entry into the market of Germany. It then discusses about the global trends like home
seclusion, e-commerce and the climate and sustainability awareness how does it impact the
local market of Germany for Green Chef. It also states the marketing mix strategies Green
chef needs to standardize or adapt for promotion in the German Market.
Market Entry Strategy
In today’s era, where MNCs rule over the global economic market, it is important as well as
necessary for a business to expand its boundaries and move towards internationalization
for further growth of its organization. In order to make the best use of the resources of an
organization, it must select the best strategy to enter into a market. A company can select
the suitable mode of entry after analyzing the risk involved, the resources required and the
degree of control the company would be able to exercise in the market (Robidas et al.,
2021). For our case, the green field can either choose to enter into the German market by a
direct arrangement with a leading supermarket chain or by entering into a joint venture
with Amazon.
Some of the factors affecting the consumer and retail environment in Germany for choice of
market entry mode:
Size of market: A company is on a higher chance to involve into a joint venture rather than
solely-owned sales if the market size is large since it will require monitoring over larger
population size and will require large amount of investment and resources for the channel

2. of distribution. Small markets on the other hand can be channeled via licensing or
exporting. Since Germany has a large market size, 83,166.7m Green Chef can consider
operation through joint venture (Passport, 2021).
Government Regulations: Government imposes certain regulations on the entry of a new
firm which may prove a potential barrier. For example, many gulf countries restrict direct
entry mandating the firms to have local partners. EU provides preferential access of local
products. Certain non-tariff barriers like traceability requirements and phytosanitary
restrictions can make direct entry mode risky (Food Export Assoication, 2021). Also,
Germany ranked 22nd in ease of doing business in the year 2020. Thus, considering these
points, joint venture is a preferable option.
Economic and political stability: Political turmoil and instability in the GDP of the economy
can cause hassle for the company to invest its resources and manage the operations. The
greater unstable these factors, more likely the company is to distance from direct
investment and favors joint ventures since it will enhance the firms’ flexibility to withdraw
its association from the market (Hollensen, 2009). Germany scores 0.7 in terms of political
stability (Passport , 2021). It has a FDI driven Economic Growth with GDP of 4536,620
which is quite stable. This point favors non-intermediary expansion.
International Experience: Previous experience with an international market helps the firms
to commit extra resources into the foreign market thus investing in direct arrangement.
Since Green Chef does not have sufficient international experience it is preferable to operate
as joint venture with Amazon that has quite experienced supply base channel.
Green Chef’s Joint Venture With Amazon
By considering the above factors of market entry mode, it can be decided that most of the
factors favor Green Chef’s entry into Germany via a joint venture with the leading
multinational ecommerce company, Amazon. Amazon offers features like Fulfillment by
Amazon (FBA) and provides prime badge to the seller which helps in building customer
trust (Amazon, 2022). A variety of services facilitated by Amazon like cross-market place
advertising tools, budgeted adds solutions, will help the firm to reach the right target
audience (Amazon, 2022). It also offers fast same day delivery services to its prime
customers. Along with this Green Chef will continue selling on its own website. The joint
venture will facilitate attraction of varied population that uses and trusts Amazon.
Advantages Of Joint Ventures
Green Chef can take advantage of Amazon’s knowledge of the local market of Germany.
Since the net revenue of Green Chef is moderate, $12.84 million, this joint venture will not
create any type of burden in the overpayment.
Potential Threats In Joint Venture
Since neither of the partners have full control over decision making, it can result in conflict

3. between the partners.
It will hinder full proprietary ownership status of Green Chef by Hello Fresh.
Global Trends And Their Application In The Local Environment
Three Key Global Trends Are:
1) Home seclusion- The COVID-19 era is has witnessed and is still witnessing lockdown and
home isolation in many parts of the world. With schools, offices, outings shut, people have
been restricted stay indoors (Rees, 2020). As a result it has been observed that people are
living isolated and avoiding large family stay/ gatherings. Also people having more leisure
time are exploring their hobbies. This has led to indulgence of many people towards
cooking as a hobby. This increase in trend of home seclusion and social distancing is
beneficial for Green Chef as it provides packaged fresh ingredients and easy-to-make
recipes that people staying alone can easily follow to prepare their own healthy meals. Also
spike in cooking hobby is also increases the market for Green Chef. The trend of nuclear
living or isolating is not so new in Germany. Germans are self-reliant since childhood and
have a culture to stay independently during adulthood. They move out and prefer to live
individually (Incluude, 2022). Hence, packaged deliverable items ease the job of self-
cooking German youth. About 52% of German households cooked daily in 2021 whereas
30% Germans cooked twice or thrice a week (Statista, 2021).
2) Focus On Climate Change And Sustainability-
Sustainability focuses on reducing harmful impact on environment by present generation
keeping in mind the needs of future generation. The aftermath of COVID-19 has enlarged
the social purpose of sustainability promoting corporations to display socially responsible
behavior over monetary benefits, i.e. purpose over profit. 2020 was expected to be a crucial
year towards transition to a low-carbon emissive economy (Euromonitor International,
2022). Green Chef being #1 Sustainable Meal Kit is committed towards safe environment
and sustainable practices. USDA (U.S. Department of Agriculture) certified, Green Chef is
determined to produce organic products with less food waste, provide 100% carbon
emission offset with less than 25% of carbon footprint in their meal boxes. They are the first
meal kit providers to use ClimaCell, a recyclable insulation in their meal packaging and aim
to recycle more ocean bound plastic than used by them in their packaging (Green Chef
Corporation, 2022). Hence they are committed to show a socially responsible behavior and
abide to sustainability practices. Germany is highly concerned towards sustainable
practices and awareness regarding climate and environment change. It aims to expand
renewable energy to more than 80% by 2050. Germany’s Sustainable Development
strategy focuses towards providing circular economy, climate protection, pollution
reduction, and sustainable food and agricultural practices (OECD, 2022). Therefore,
Germany and Green Chef both follow a same path towards climate protection and
sustainable behavior.
3) E-commerce- Restaurants and physical outlets being closed during the pandemic, e-

4. commerce has replaced the traditional shopping trend. Also shift to healthier lifestyles has
promoted customers to order groceries online and prefer home cooked meals over
readymade food items. One more reason towards growth of e-grocery shopping is the
notion of people to save money due to the negative economic impact of COVID. This shift in
trend is beneficial for Green Chef as it provides home delivery of fresh ingredients.
Germany, having one of the biggest e-commerce customer base in Europe, penetrating upto
74 % is only expected to rise even in future. The total sales in the year 2020 amounted to
USD 83.1 billion. Also expectation has been made of increase in the online population up to
68.4 million in 2025 from current 62.4 million in 2020 (International Trade Administration,
2021). Green Chef should built and support easy-to-use mobile friendly websites as in 2020
54% of the purchases were made via phones. As seen in the passport analysis Germany
consists of a wider aging population, Green Chef must focus on customer support services to
facilitate and guide the elderly.
Social Media, Standardization And Adaptation
Marketing across borders increases the complexity of marketing strategy for the company
since the diverse and new foreign environment brings more cultural, regional and
geographical differences compared to the home environment which becomes harder for the
business to cope up with. Company may either standardize the marketing procedure as in
the previous (home) market or else might adapt to the local market of the targeted country.
Both standardization and adaptation are two extremes of same continuum; hence if
standardization has to increase, adaptation will decrease (Kraus et al., 2016). Studies
suggest that none of the two are self-sufficient. Hence a company must adopt a mix of the
two marketing methods.
Figure 1: Cultural Framework
Source: (Terpstra et al., 2012)
Some of the following factors that affect Green Chef’s marketing mix strategy in the external
environment, Germany are as follows:
Population: since the German population is mostly aged, featuring the middle age group in
its promotional areas will relate to the customers better.
Language barrier: Germany is an intercultural nation that consists of varied population
including refugees. Green Chef needs to take care of the language barriers in the nation.
Cultural Diversity: Green chef needs to represent the food culture of Germany in its recipes
and provide staple products to the local population instead of standardizing to its recipes.
Technology Driven: They need to take care of the advanced 5G scenario in Germany and
offer highly technological and advanced websites.

5. Green Chef Would Need To Adapt To The Following Things: Message
Germans are very particular when it comes to their language. If the communication channel
whether it be promotion videos, emails etc., are not appropriately written/spoken in
Germany, the customers might develop a negative image of the company, since they didn’t
value their native language. The citizens also speak Danish, Frisian, Sorbian, and Romani
since the country is a mix of all these people. A good customer helpline service with German
speakers and also speakers fluent in these minority languages would also be required.
Hence, Green Chef needs to adapt to the linguistic practices of Germany. It will need to hire
a native speaker for even its youtube channel videos and include these languages in
subtitles.
Figure 2: Green Chef Youtube Channel
Source: (Green Chef, 2017)
2) Execution Style
Implicit execution style uses more visuals rather than the words. Explicit execution Style
focuses on the words primarily. In high context communication the speaker focuses onto
the meaning rather than to the words whereas in low context communication, the case is
opposite. Cultures that opt for low context communication are more attentive to the literal
words than to the context (Singh & Nordin, 2016). From the data it can be seen that
Germans are more particular about the low context explicit execution, Green Chef’s slogan,
name and the words it uses to deliver the message will attract the German population more
than the images.
Figure 3: Difference in context among cultures
Source: (Bernier & Meyer, 2010)
Green Chef can standardize:
3) Social Media Platforms:
Social media platforms are the most important medium to reach to the customers in the
modern era. Germany, as advanced it is in its technology, is actively engaged in various
social media platforms. 87% of the German population is active on whatsapp, followed by
69% of youtube users. Facebook and instagram also comprises of 63% and 41% users

6. respectively (Statista Research Department, 2021). Green Chef can open a common
company profile on instagram and facebook to share its add promotions and seasonal
promotion codes worldwide or regionally.
Figure 4: Green Chef Promotion Codes
Source: (Green Chef, 2022)
Conclusion
From the report we can conclude that the meal kit deliver company Green Chef can expand
its operation in Germany, by entering into the local market through a joint venture with
Amazon, an e-commerce company. It will need to take care of the global trends like home
seclusion, e-commerce and cultural insights that will affect its operation in the local market
of Germany. By reviewing the population bifurcation of Germany that comprises of middle
aged people and the cultural insights of Germany focusing on the lifestyle of people,
languages and technology drive, a marketing mix strategy of standardizing social media
platforms and adapting to the message and delivery style is suggested for the brand, Green
Chef.
References
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