BSP 6004 International and Global Market

BSP 6004:
International and
Global Marketing :
Malith Ranasinghe
MALITH SHAMINDA DANASRI RANASINGHE
BSP 6004: INTERNATIONAL AND GLOBAL MARKETING : Malith Ranasinghe
Table of Contents
Executive Summary...................................................................3
Introduction.............................................................................5
Task 1: Compare and contrast international and global business
environments in Norway and the selected Asian country ............6
The PESTEL Analysis........................................................................6
PESTEL Analysis..............................................................................9
Task 2 : Critically discuss planning and implementation issues
associated with Norway and the selected Asian country............10
Task 3: Construct a convincing and comprehensive strategic
marketing plan with accompanying costs and schedules to the
selected Asian country ...........................................................12
3.1 Key Issues...............................................................................12
Implementing a business in an Asian country which has diverse
culture and subculture influenced by traditions..............................12
3.2 Company Profile.......................................................................12
3.3 Marketing strategy..................................................................13
3.4 The Marketing Mix.............................................................16
3.5 Growth strategy.......................................................................18
Conclusion.............................................................................. 19
Reference List......................................................................... 20
Appendix 1 : The global Marketing Planning Process.......................22
Appendix 2 : Arcus US Company.....................................................23
2
Executive Summary
This assignment task requires to analyze the implementation of a well established

Business namely Lysholm Linie Aquavit, an alcohol beverage company in Norway
which hopes to expand its operation in Sri Lanka.Therefore, this report includes an
evaluation of the business environment of both the countries by stating the
similarities and differences, further the report also entails a discussion on the
implication of planning and implementing the global marketing strategies in Sri
Lanka, finally a comprehensive marketing plan is presented.
3
Introduction
In order to complete this task a case study is presented, which is Lysholm Linie
Aquavit, an alcoholic beverage made of potatoes and blend of herbs and spices to
give its taste, which is placed in Spanish Oloroso sherry casks for fermenting and
then these cases are loaded in ship which will sail and cross the equator twice. This
particular product which is made in Norway, is now intending to expand its business
to Asia, and the selected country for expansion will be Sri Lanka.
The company which produces this product is Arcus AS is Norway's sole producer of
hard alcohol. The organization additionally taps wine from wine makers everywhere
throughout the world and imports a select scope of packaged wines. With a piece of
the overall industry of around 30 for every penny, Arcus AS is the main player in the
Norwegian wine and spirits market. Further Sri Lanka is a multi cultural country with
no monopolistic competitors prevailing, and not a lenient country towards
consumption of alcohol, however the report discusses this venture in 3 parts, firstly
the business environment is evaluated, then implication of planning and
implementing is figured finally a marketing plan is presented.
4
Task 1: Compare and contrast international and global business

environments in Norway and the selected Asian country
The PESTEL Analysis

With reference to the assignment Lysholm Linie Aquavit, a beverage company based
in Hagan, Norway, looking forward to internationalize and expand its business to
Asia, the issue here is to identify and evaluate how successful will this initiative be,
hence Norway is based with in a European business environment, which will be
completely different compared to the business environment in Asia.
The internal and external factors which impacts on how a business operates is
known as the business environment. The importance of analyzing business
environment is vital hence it directly influence the operations and performance of a
business. The term Business Environment has been defined by many authors,
Arthur M. Weimers definition would be that, Business Environment includes the
-climate or set of conditions, economic, social, political or institutional in which
business operations are Conducted. (The Next Generation Library, 2014)
To easily comprehend the complex business environment, a PESTEL analysis is

conducted for both the Norway and Sri Lanka
Figure 1.1 Pestel Analysis
Table: 1.1 PESTEL Analysis for Norway and Sri Lanka
5
PESTEL Component Norway Sri Lanka
Political Environment The fundamental political The Political

component is about sourcing environment has
required raw materials to influence directly on
produce the beverage as it is business activities in Sri
made with plants and herbs. Lanka, in a unstable
This has accumulated a great political environment,
deal of the consideration often poses threats, as
from lawmakers in the an example when
Europe and from the source different political parties
nations. Hence, where fair comes to power, the
trade practice is highly legislations, rules,
encouraged all the raw policies and regulations
material required to produce are often changed
the Aquavit should stick with according to the
this policy. government which is in
power.
With reference the world A country like Sri Lanka
economic forum, Norway is is known as lower
nominated as the worlds 15 th center pay nation,
competitive economy, among specially after taking a
131 countries in 2008-2009 30-year common war
while the global financial that finished in 2009, Sri
Economic crisis existed, this means that Lanka's economy has
Environment the economy is stable with developed at a normal
easy entry to credits, 6.4 percent between
funding accessibility in 2010-2015
Norway which makes easier (Worldbank.org, 2016)
for business to operate and
generate profits
6
Drinking aquavit has been a The social environment

must in a Scandinavian in Sri Lanka is
drinking culture, usually its multicultural, specially
consumed during festive get- with a Buddhist culture
togethers such as in which has high values,
Christmas and weddings, principles and beliefs
huge celebration events in who doesnt encourage
Social Environment Europe. Its important note consumption of alcohol.
Lysholm Linie Aquavit is The majority of the
famous in Norway, so as population in Sri lanka
Aalborg in Denmark and O.P comprises a majority of
Anderson in Sweden. Sinhalese population,
alcohol therefore is not
a must have in special
events
Hence Norway is a In Sri Lanka, the
developed country, It has technology is yet to
quick and easy access for develop, however the
technology such as Internet main issue will arise
and Wi-Fi, as an example, when it comes to
Norway has a famous caf or communicating among
Technological bar catalogue where some both two countries to
body can easily find a place liaise this business
to dine or relax, when people initiative.
have easy access for
information they will easily
approach this will increase
the sales for more aquavits.
Environmental activists who Similarly, environmental
is concerned about the fair activists will impact this
trade policy and business, specially if the
Environmental
environmental pollution will products are required to
be a threat for Aquavit be distributed among a
business, hence this network, where
7
particular Aquavit is sent for transporting will cause

sailing in the ship across the environmental pollution
equator, incase if there was a due to the limited
spill this will harm the natural distribution network and
resources in the sea. road system in Sri
Lanka
Hence this beverage The minimum age
contains Alcohol, the requirement to buy
Legal consumers should be 20 Alcohols in Sri Lanka is
years or above to purchase only for males over 21
these products. years and above.
PESTEL Analysis
Above listed PESTEL analysis includes few of the factors which could affect the
business environment for Lysholm Aquavit Linie in Norway and in Sri Lanka, there
are noted similarities and difference.
When it comes to the political and economical environment for Norway, both of those
aspects has quite a stable environment. Which means that Lysholm Aquavit Linie is
been operating in a stable political and economical environment, in contrast, when
they are expecting to start the business in Sri Lanka, the political and economical
business environment will not be favorable as it was back in Norway, which means
there will be many obstacles when it comes to establish the business in Sri Lanka,
as an example changing government rules & regulation due to political stability will
hinder the start of a foreign business. Further even the social business environment
are completely different, where a Scandinavian culture will encourage consuming
alcohol as a custom, however its not highly encouraged in a eastern culture such as
Sri Lanka, therefore the branding and marketing strategy should be customized and
carefully designed.
However, similarities exist between environmental and legal aspects, hence the
environmental activists will negatively influence business in Norway and Sri Lanka in
similar way, as an example, hence the raw materials used for producing the
beverage will be limited for fair trade policies, therefore Lysholm Aquavit should have
8
strategies to manage the scarce resources. With reference to the legal environment,
in order to purchase alcohol both the countries have a legal age, where as in Norway
its 20 years and above, however in Sri Lanka its 21 years above.
Task 2 : Critically discuss planning and implementation issues

associated with Norway and the selected Asian country.
Global marketing can be defined as an organizations dedication to arrange its

marketing exercises throughout national limits so as to discover and fulfill worldwide
consumer needs and stay ahead from the competition. The global marketing
process will undergo several phases. (Appendix 1 : The global Marketing Planning
Process)
The organizations reaction to the international markets business sector open doors
depends incredibly on the managements beliefs or views, about the way of working
together around the globe. This perspective of an association's business exercises
can be portrayed as the EPRG structure (Perlmutter, 1969; Chakravarthy and
Perlmutter, 1985) With reference to the given case study, Lysholm Aquavit Linie
takes the form of Polycentric and Regiocentric.
Where as polycentric refers to the customize approach to reach a country

accordingly hence each country is unique and therefore the marketing plans should
be suitable for the Asian culture, which means that the aquavit should recognizes
that there are different conditions of production and marketing in different locations
and try to adapt to those different conditions in order to maximize profits in each
location. Further regiocentric refers to the firms The firm tries to incorporate and
organize its promoting program inside areas, yet not crosswise over them.
When considering the challenges for Lysholm Linie Aquavit planning and
implementation, one of the major issue will be the cultural conflict, hence when the
sri Lankan and Norwegian cultures meet and mix together. Individuals from these
societies will confront difficulties to convey messages because of dialect boundaries
9
as well as social contrasts. Further, prior to do business with Sri Lanka, Lysholm
Linie Aquavit should do a top to bottom learning of existing business sector channels
and suppliers, of purchaser inclinations and current buy conduct, to gain required
knowledge to plan its marketing strategies, how ever the main issue is accessing
required data and information remotely will be another major challenge.
As any business will have to face a risk, in this case when it comes to
implementation there will be a certain risk component involved, such as general
market risk, commercial risk, and political risk. General risk may include the
challenges to find the ideal distributor and whole sellers to market the product, the
time and money involved with complex shipping services, commercial risks will be
the fluctuations in foreign currency, and disputes arises by exporters for Lysholm
Linie Aquavit, and political risk will be sri Lankan government restrictions on policies
in national export, payment limitation from in and out of the country.
Amidst all the above highlighted risks, often Lysholm Linie Aquavit will also confront
issues when implementing the marketing plan, such as failure to control and commit
to the marketing plan, and inability to reduce external risks which will have an impact
to the marketing such as forces from the above discussed forces from the external
business environment which will negatively impact the business are few to mention.
The prominence of these risks factors need not to be exaggerated, however a

carefully observed and planned global marketing strategy should considers
similarities and differences between there two markets; and identify the best
approach and apply the knowledge and best practices from the Norway market to
sri Lankan market after customizing them accordingly.
Task 3: Construct a convincing and comprehensive strategic

marketing plan with accompanying costs and schedules to the
selected Asian country
Prior to construct a marketing plan the key issues in implementation should be

analyzed.
10
3.1 Key Issues
Implementing a business in an Asian country which has diverse culture and

subculture influenced by traditions
Unpredictable economical and political business environment in Sri Lanka
which will have negative impacts due to instability in the new business
Finding reliable and efficient third party to get information and remotely
operate
The language barrier as the official language spoken in both the countries are
not the same
Introducing a new product which is not a norm with in the Sri Lankan culture
3.2 Company Profile

Arcus AS is the principal alcohol organization based in Norway with tailbacks in
Denmark, Sweden and Finland. Arcus AS was initiated in 1 January 1996 and has a
rich history.
The organization has sold eminent Norwegian alcohol brands to Vinmonopolet,

obligation and lodging/eatery industry in Norway. This position speaks to an
incredible potential for gainful development. The best potential lies in our brands, for
example, aquavits Gammel Opland and Lysholm Linie and Braastad cognac and
Vikingfjord vodka. Arcus AS likewise speaks to worldwide brands, for example,
Label 5, Bardinet, Negrita, Buffalo Trace, Fireball, Glen Moray and Clontarf in
Norway, and offers an extensive range of items from all the primary spirits
classifications. These brands are disseminated through the organization Det Danske
Spiritus Kompagni. Arcus marks Lysholm Linie and Braastad cognac disseminated
through Arcus accomplice Hans Just.
3.3 Marketing strategy
the marketing strategy to market the Lysholm Linie Aquavit should first consist of
accurate statistical surveying and concentrate on the outcomes by keeping in mind
the end goal to accomplish the most extreme benefit and support the business.
11
Therefor, the first and foremost this company should determine the appropriate
market entry strategy. By following the below mentioned steps as presented in figure
2
further, a below mentioned questionnaire can be used to analyze if the Sri Lankan
market is competitive or not, as illustrated in figure 3
12
Once this company has decided and determined the consequences of the market in
Sri Lanka now they are required to develop the marketing strategies, these
strategies should be meet the SMART requirements, examples of marketing
objectives for this company will be as follows.
13
Marketing aims
Successfully enter the Asian market by developing brand awareness of the

Lysholm Linie Aquavit, and keep steadily increasing this goal.
Increase sales of Lysholm Linie Aquavit across all the market segments in Sri
Lanka, including in restaurants, bars and pubs
Financial aims
Increase profitability in the Sri Lankan market and expect at least 2% of

contribution from the Sri Lankan market towards the total profitability of the
company.
Minimize the unwanted expenses which may occur in the last minute such,
hence plan all the costs which will be involved in advance.
3.4 The Marketing Mix
below is the illustration of the components of the marketing mix.
14
Figure 4 the marketing mix
Product:
Arcus AS should ensure that they have the right kind of item that is sought after for
by the Sri Lankan market. So amid the item advancement stage, the advertiser must
do a broad examination on the life cycle of the item that they are making.
Price:
When deciding the price, there will be three strategies to consider such as market
penetration, market skimming and neutral pricing. However hence this is a new
product to the sri Lankan market, it can be suggested that the market penetration
pricing strategy will be ideal hence this is a new type of product for the sri Lankan
culture.
Place:
Situation or appropriation is an essential part of the item blend definition. Hence it is
a position that convey the item in a spot that is open to potential purchasers. This
accompanies a profound comprehension of the objective business sector. It should
15
be Comprehend to find the most productive situating and conveyance channels that
specifically caters to the relevant business sector.
The distribution options for this product can be listed as follows.

Exclusive distribution
Selective distribution
Intensive distribution and
Franchising
With reference to this product, they have to deal with selective distribution hence the
alcohol beverage cannot be sold in each and every place, their dealers should have
a liquor license or a permit to sell them.
Promotion:
There are many ways to approach the general public to inform this product, such as
advertising and doing sales promotional activities, and engaging in public relations.
However, the only issue will be the marketing budget, hence the promotional part will
be limited and dependent on the marketing budget which is left to spend.
Promoting normally covers specialized techniques that are paid for like TV notices,
radio ads, print media, and web commercials. In contemporary times, there is by all
accounts a movement in center disconnected to the online world.
Advertising, then again, are interchanges that are regularly not paid for. This
incorporates public statements, shows, sponsorship bargains, courses, gatherings,
and occasions.
Verbal exchange is likewise a kind of item advancement. Verbal exchange is a

casual correspondence about the advantages of the item by fulfilled clients and
customary people. The business staff assumes an imperative part in advertising and
informal.
16
3.5 Growth strategy
figure 5 growth strategy
according to the above mentioned mentioned theory, the relevant applicable aspect
will be market penetration and market development, hence in market penetration
there is an exisisting product which is the drink and its going to be introduced for a
market which consumes alcohol for a minimum level, however this product will also
be introduced for a new market.
Conclusion
It can be concluded that a European product made by a well established company in

Norway is hoping to introduce that to Sri Lanka, this will be successful if Arcus AS
does a extensive and deep research before they enter in to the market to understand
17
the opportunity and strengths. if the feasibility studies deemed to be positive then the
implementation and marketing the Lysholm Linie Aquavit will not be complex, further
hence after the research, they may have a knowledge of the market behavior in Sri
Lanka, and this will assist them to mitigate any risks involved at an earlier stage.
Reference List
Anon, (2016). 1st ed. [ebook] Available at: http://www.market2win.com/blog/wp-

content/uploads/2012/09/Implementation-issues-and-examples.pdf [Accessed
18 Aug. 2016].
18
Eats, S. (2016). Aquavit Primer: the Scandinavian Spirit. [online]

Drinks.seriouseats.com. Available at:
http://drinks.seriouseats.com/2010/02/serious-cocktails-aquavit-scandinavian-
spirit-alcohol.html [Accessed 17 Aug. 2016].
Linie.com. (2016). Original. [online] Available at:

http://linie.com/aquavits/original/ [Accessed 18 Aug. 2016].
Linie.com. (2016). Original. [online] Available at:

http://linie.com/aquavits/original/ [Accessed 18 Aug. 2016].
MarketingProfs. (2016). Top 10 Challenges Interactive Marketers Face. [online]

Available at: http://www.marketingprofs.com/8/challenges-interactive-
marketers-face-kahlow.asp [Accessed 18 Aug. 2016].
Meiss.com. (2016). Neutral Pricing Strategy Meissner Research Group. [online]

Available at: http://www.meiss.com/blog/tag/neutral-pricing-strategy/
[Accessed 18 Aug. 2016].
Mplans.com. (2016). Coffee Bar Sample Marketing Plan - Marketing Strategy -

Mplans. [online] Available at:
http://www.mplans.com/coffee_bar_marketing_plan/marketing_strategy_fc.ph
p [Accessed 18 Aug. 2016].
Services, S., Strategy, S., Audit, S., Publishers, S., Marketing, C. and Linkbuilding,
O. (2015). Using PESTLE to Develop a Strategic SEO Vision | Polemic
Digital. [online] Polemic Digital. Available at:
https://www.polemicdigital.com/2015/11/pestle-strategic-vision-future-seo/
Smallbusiness.chron.com. (2016). [online] Available at:

http://smallbusiness.chron.com/growth-strategies-business-4510.html
The Marketing Mix. (2016). Marketing Mix Definition - 4Ps & 7Ps of the
Marketing Mix. [online] Available at: http://marketingmix.co.uk/ [Accessed 18
Aug. 2016].
Toni Chang, J. (2016). Report writing. [online] Monash.edu.au. Available at:

http://www.monash.edu.au/lls/llonline/writing/general/report/index.xml
19
Worldbank.org. (2016). Sri Lanka Overview. [online] Available at:

http://www.worldbank.org/en/country/srilanka/overview [Accessed 17 Aug.
2016].
YourArticleLibrary.com: The Next Generation Library. (2014). Business

Environment: Nature and Significances of Business Environment. [online]
Available at: http://www.yourarticlelibrary.com/business/business-
environment-nature-and-significances-of-business-environment/23367/
20
Appendix 1 : The global Marketing Planning Process
Source : https://www.gliffy.com/pubdoc/3101838/L.png
21
Appendix 2 : Arcus US Company
Arcus AS
Type Private
Industry Alcoholic beverages
Founded 1996
Headquarters Oslo, Norway
Area served Norway
Key people Otto Drakenberg (CEO)
Parent Ratos
Website www.arcus.no
Arcus AS is Norway's largest wholesaler of wine and liquor. It was created when it was
demerged from the state ownedwine and liquor retailer Vinmonopolet on January 1, 1996 to
differ between the retailing, kept in Vinmonopolet, and the import, export, production and storage
that was transferred to Arcus.
In July 2001 the Norwegian Ministry of Trade and Industry sold 66% of the company to Sucra,
who were also granted an option to purchase the rest of the company, a transaction that took
place in 2003. In 2005 Sucra sold Arcus to the Swedishinvestment company Ratos, including the
partial ownership of Braastad. Arcus has both storage of beverages from when it was demerged
as well as recipes from Vinmonopolet, some of which date back a long time, including the recipes
taken over from the purchase of Litens Brnderi in 1927.
22
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BSP 6004:

This assignment task requires to analyze the implementation of a well established

Task 1: Compare and contrast international and global business

The PESTEL Analysis

To easily comprehend the complex business environment, a PESTEL analysis is

Figure 1.1 Pestel Analysis

Table: 1.1 PESTEL Analysis for Norway and Sri Lanka

PESTEL Component Norway Sri Lanka

Political Environment The fundamental political The Political

Drinking aquavit has been a The social environment

particular Aquavit is sent for transporting will cause

Task 2 : Critically discuss planning and implementation issues

Global marketing can be defined as an organizations dedication to arrange its

Where as polycentric refers to the customize approach to reach a country

The prominence of these risks factors need not to be exaggerated, however a

Task 3: Construct a convincing and comprehensive strategic

Prior to construct a marketing plan the key issues in implementation should be

3.1 Key Issues

Implementing a business in an Asian country which has diverse culture and

3.2 Company Profile

The organization has sold eminent Norwegian alcohol brands to Vinmonopolet,

3.3 Marketing strategy

Successfully enter the Asian market by developing brand awareness of the

Increase profitability in the Sri Lankan market and expect at least 2% of

3.4 The Marketing Mix

below is the illustration of the components of the marketing mix.

Figure 4 the marketing mix

The distribution options for this product can be listed as follows.

Verbal exchange is likewise a kind of item advancement. Verbal exchange is a

3.5 Growth strategy

figure 5 growth strategy

It can be concluded that a European product made by a well established company in

Anon, (2016). 1st ed. [ebook] Available at: http://www.market2win.com/blog/wp-

Eats, S. (2016). Aquavit Primer: the Scandinavian Spirit. [online]

Linie.com. (2016). Original. [online] Available at:

Linie.com. (2016). Original. [online] Available at:

MarketingProfs. (2016). Top 10 Challenges Interactive Marketers Face. [online]

Meiss.com. (2016). Neutral Pricing Strategy Meissner Research Group. [online]

Mplans.com. (2016). Coffee Bar Sample Marketing Plan - Marketing Strategy -

Smallbusiness.chron.com. (2016). [online] Available at:

Toni Chang, J. (2016). Report writing. [online] Monash.edu.au. Available at:

Worldbank.org. (2016). Sri Lanka Overview. [online] Available at:

YourArticleLibrary.com: The Next Generation Library. (2014). Business

Appendix 1 : The global Marketing Planning Process

Appendix 2 : Arcus US Company

Industry Alcoholic beverages

Headquarters Oslo, Norway

Area served Norway

Key people Otto Drakenberg (CEO)

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