Strategic Approach To Employ Successful Into International Market Marketing Essay

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A prominent Brand named Lori pasta decided to go in foreign markets , which must choose an entry strategy, the decision taken by internal operational management reflects an analysis of market characteristics, such as potential sales, strategic importance , strength of local resources, cultural differences and country restrictions.

Most of small companies appears to simply mimic other parameters in the industry or repeat their old fashioned entry strategies. Which are not recommended .

A new company named like LORI PASTA Brand decided to approach foreign markets with range of services from minimal investment appointing an overseas distributor company by supporting all meaning to capture and maintain permanent presence in the new markets.

Which is entirely depends of the company's objectives and growing marketing trend either approaches can be beneficial for long term stable developments.

There is mode of entry into global market is the channel which company employs to gain access for new international market.

This report can be considered a number of key alternatives, but recognize these alternatives may be numbers and diverse.

Here , there are few modes of entry into Global market such as following.



Licensing / Franchising rights

Appointing International Agents / Traders

International Distributors

Strategic Alliance

Ventures and collaborations

By establishing manufacturer unit or international sales subsidiaries

Finally, Lori Pasta decided to consider stage of internationalization. Here , one can point out that all mode of entries sites not possible to apply on any particular international marketing entering into new markets.

For example , Franchising may be a profitable mode of bulk supply because it's part of licensing if Lori pasta intends to supply in the tune of ready to serve concept marketing mode.

lustration by taking LORI -Pasta Manufacturing company in Italia

LORI Brand of Pasta must have following tools to jump start its products into Asian markets.

LORI 's presence with The Internet & E-Commerce :

In the modern marketing environment e-commerce -part of internet a famous channel for large number of big organisations . Internet & Ecommerce has emerged in fast pace to tap global market within the specified time frame set by management team. Also a useful gateway to receive fast result oriented feed backs from several markets . which helps operational team professionals to select and employ mode of strategic approaches remotely.

Now a days e-marketing approaches are important tool of overall marketing plan developed by operational & management professionals within the company. E-commerce has replaced old fashioned traditional system of marketing approach. At the same time , e-commerce has provided vast opportunities to promote company's products online helping organization to reduce their communication cost and adding more revenue to their growth and developments.

LORI Pasta's Exporting Approaches:-

There are several approaches like indirect and direct exporting to many countries .

Direct export can be defined as straightforward, in which company makes a commitment to market overseas on its behalf may be more costly but effective approach for long term establishments. This term of approach has greater control on its brand promotion and operations.

On the other hand . over an above indirect exporting Like LORI PASTA intends to deploy overseas Distributor like Fusion worldwide Impex Pvt.Ltd in India networked among urban and rural channel distribution partners. At this stage , LORI Pasta may be having greatest advantage to approach end customers and achieve it's sales growth and developments.

There are several other examples of indirect exporting like LORI Brand is appointed an EU exporting company- which handles exporting on LORI's behalf to get products into global market , then one needs to understand it well that LORI would be exporting indirectly. Here there are several examples for indirect exporting include:

Low cost marketing called piggybacking whereby a new product like LORI Brand PASTA is used the existing distribution and logistic network of another business volume in association with Indian based company named Fusion Worldwide Impex Pvt.Ltd.

LORI PASTA is involving the small distributor / dealer companies , restaurants, and hotel chains to promote brand under the franchiser concept. Here, we can say the management tends to controlled by the franchiser. Examples include coffee Costa, Pizza HUT, Mc Donald's Restaurants.

LORI Brand is also looking for turnkey contracts under its major strategies to build large plants to manufacturer pasta under the Brand name of LORI India. This practice often include the training and development of key employees where skills are sparse. Like Mc Donald's and COSTA Cofee Carrefour distribution. These types of outlets or distribution can never own once it is handed over in other way like entering into joint ventures under the contractual, legalities and royalty agreements.

Lori Brand Seeks:- International Agents and international Distributors:-

Individuals called agents are often early step into global marketing , put simply, agents, import companies/ organizations that are connected to distribution , business developments , growth and market on the exporting company's behalf in a particular country. They are bound to take early ownership of products, and more commonly take a commission on goods sold out in their network. Agents , individuals usually represent more than one company. They are a low cost , but low control option . Hereby LORI PASTA is recommended to make sure that the contract allows LORI BRAND to regain direct control on products. Of course LORI PASTA needs to set trargets since no one never know the level of commitment of appointed agents. Because agents always represents several other brands and Pasta brands manufacturers competitors. So LORI Brand Needs to beware conflicts of interest. They always tend to be expensive to recruit and train the team professionals.

Distributors are always similar to agents, with the main difference that distributors always take ownership of the products. Therefore they always have an incentive as well as advantage to market products and to make profit from manufacturers. Otherwise pros and cons are similar to those of global agents. Here, LORI PSATA has done carefully selection of importers having strong distribution across the target markets .


LORI Brand has established strategic alliances- which is a term that describes a whole series of different relationships between companies that market internationally. Sometimes the relationships are between competitors. There are few examples are given below to understand LORI's SA.

LORI is planned to manufacture dry pasta to ready to deliver pasta in the tune of e.g. PIZZA Hut and KFC marketed by franchisers across the globe.

LORI is planned to establish Research and development (R&D) agreements.

Distribution alliances e.g. Noddles initially marketed by reputed food distribution company worldwide.

LORI intends to sign marketing agreements among several other SA companies.

More essentially, all strategic alliances are non equity based agreements i.e companies remain independent and separate under such kinds of strategic alliances.

Joint Ventures:-

Lori Brand seeks joint venture in the field of manufacturing pasta marketing, distribution . These kinds of Joint ventures tend to be equity based i.e a new company is set up with parties owning a proportion of the new business . For example Tesco ventures with TATA in India.

Overseas manufacture or International Sales Subsidiary:-

LORI Brand seeks a business that none of the other options are a viable as actually owning an overseas manufacturing plant. i.e the LORI invests in plant , machinery and Labour in the Overseas market . This is also known as foreign direct investment. This can be a new build or the LORI might acquire a current business that has suitable plant & machinery available at manufacturing site .

Of course LORI can assemble products in the new plant, and simply export raw material from the home market or another country. The key benefit is that LORI business localised. A LORI brand manufacturer for customer s in the market in which LORI's Network intend to trade the products. At this level LORI will gain local market knowledge and be able to adapt products response and services to the needs of local consumers. The downside is that LORI might involve in the risk associated with the local domestic markets.

LORI PASTA can reduce element of risks and have the same key benefits of course by choosing an international sales subsidiary. However, it acts like a distributor that is owned by any associated company.

Internationalization stage:-

There are several stage of key modes of entry into international markets. So having considered the key modes of the entry, we conclude by considering the stage of Internationalization. Some companies will never like trade their products in overseas market and so do not go through a single stage. Others like to start a later or even final stage. Of course some Like LORI goes through each stage as summarized now.

Indirect exporting / licencing

Direct exporting via Local Importer/ distributors

LORI's own foreign presence

Home based manufacturers and foreign assembly

Foreign manufacturers

Final Conclusion :- a new starter company needs to follow dynamic tools like LORI entered to jump start in new international market. Most powerful strategic approach was designed to employ successful entry into international market. Above report may help new companies to establish a strong presence in international market.

Finally , few of wise opportunities are explained undersigned.

Business opportunities by establishing overseas network: how this report can help new companies.

If new company is looking for to grow it's business in international market? Or thinking about new markets in Latin America, Africa or Asian countries? Markets in these regions are among the fastest pace of growing in the world.

New companies always have their own products that have value beyond the domestic market. But company doesn't know hot to go about exploring these potential opportunities?

Above report may be helful to identify international opportunities and develop and implement a market entry strategy that is results oriented with measurable metrics of success.

Report propagator has wast experience working in the international markets, following assistance including wide range of services may be helpful below.

Market Information

Funding options

Export programs

Identification and Vetting of agents

Marketing and Strategic Alliances

Export/Import Regulations

New Company's methodology:- New company needs to employ and advisory and consultative approach to project and have access to an international network of more than sufficient professionals in over most of countries. Which can allow any organization / company to bring appropriate expertise and business culture knowledge that is needed to identify and qualify market opportunities. When market opportunities are identified , a consultant advisory company must coordinate the array of activities that must be undertaken for successful market entry and establishing an overseas network including.

Legal services


Banking Services

Marketing/ Sales

Distribution & Network


Identification and Vetting of agents

Marketing and strategic alliances

Export / Import Regulations

How to over come Uncertainty:-

The primary reasons most companies are apprehensive about doing business in international market are:

A lack of knowledge and understanding of overseas markets

A perceived lack of demand of their products.

A belief that exporting and importing are too complicated to implement

Finally, above elements will help new company to employ professional consultant company to address these concerns and access whether or not overseas markets represents an opportunity for new company to grow it's traditional markets.