MG628 International Marketing Management

Student Name:Florian Cristian Gavrila

Student Id:21918271

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 Executive summary
The report presents the risk and opportunities that Graze can utilize to understand its
potential threats and consumer preference in the Netherlands market. Various
analysis has been conducted to ascertain the market position of Graze and also to
ascertain the expected market acquisition of Graze in the Netherlands. The potential
threat of diverse cultural wants and demands have obtained through Hofstede's
Cultural Dimension Model. The basic understanding of the much-needed aspects of
market positions has been evaluated through marketing mix and STP analysis.

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 Table of Contents
1. Introduction............................................................................................................4
2. Discussion.................................................................................................................4
2.1 Market Entry Strategy.............................................................................................4
2.1.1 Analysis of the chosen market chain...................................................................4
2.1.2 Assessment of the reason for the supermarket chain.........................................4
2.1.3 Investigation of the Consumer and retail environment.......................................5
2.1.4 The description of the market entry strategy.......................................................5
3. Global Trends and Their Application in the Local Environment...............................6
3.1 Two key global trends.............................................................................................6
3.2 Trends Relevant to Graze Company......................................................................6
4. Country-Specific Communications...........................................................................7
4.1 Segmentation, Target and Positioning (STP) Strategy..........................................7
4.2 Cultural Needs and Wants......................................................................................8
4.3 Marketing mix.......................................................................................................10
4.4 Social media communications..............................................................................11
5. Conclusion..............................................................................................................11
6. Referencing............................................................................................................12

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1. Introduction

Graze was invented by Graham Bosher during the period of 2007-2009 and the main
dealing of the business is related to the production of healthy snacking options for all
age groups. The initial dealing of the company is done through nuts and porridge
supply to the doors of the consumers and also incurred loss in various product
launches but in recent times, it emerged as a prominent snacking brand in the UK
and it wishes to expand its operations to the Netherland and Saintsbury has been
chosen as the retail supply line for the company (Raina and Gupta, 2022). The report
would evaluate various expansion criteria and analysis of the Netherlands for a clear
understanding of the consequences of expansion.

2. Discussion

2.1 Market Entry Strategy

2.1.1 Analysis of the chosen market chain

Graze has been a UK-based snack enterprise headquartered in London and founded
in 2008 by Graham Bosher. Moreover, Graze provides more than 200 snack
combinations via subscription boxes of snacks, an online shop along with retailers.
At graze.com, the audience composition could expose the present market share of
the site to different audiences. The audience of Graze comprises of 50.83% women
as well as 49.17% men (similarweb.com, 2023). The total number of staff working at
Graze is 500.
In the Netherlands, the Foreign Direct Investment (FDI) inflows associate towards
1.4% of GDP in 2021 greater than the Western European average of 0.6% the
similar year. Furthermore, the savoury snack market has enhanced by 13% in the
Netherlands as such. The average volume of each individual at the healthy snack
food market has been expected to amount towards 8.23kg by 2023 (statista.com,
2023).

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2.1.2 Assessment of the reason for the supermarket chain

Sainsbury’s has been one of the biggest chains of supermarkets in the UK founded
in 1869 by John James Sainsbury and headquartered in London. The stores of
Sainsbury’s provide fresh vegetables, fruits, eggs, dairy items, fish, meat, juice, wine,
spirits, beer, baby items, frozen and chilly foods and many more (globaldata.com,
2023). The present market share of Sainsbury’s has been 15.2%. The total number
of staff working in Sainsbury’s is 175000.

Figure 1: Sainsbury Global Revenue generation

(Source: statista.com, 2023)

2.1.3 Investigation of the Consumer and retail environment

The consumers in Holland have enjoyed the facilities of a powerful economy along
with current infrastructure as well as public services. Furthermore, the average Dutch
consumer emphasizes cost and quality in regard to making any buying. The
individuals in the Netherlands enjoyed a healthy lifestyle.
The retail sales in the Netherlands increased by 11.3% year by year in January 2023
which remains unchanged from an upwardly corrected figure in the past month.
Moreover, retail sales rise by 4.1% in March 2023 easing from a downwardly
corrected 8% increase in the past month (tradingeconomics.com, 2023).

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2.1.4 The description of the market entry strategy

The market entry strategy in the Netherlands could be classified towards direct
export, indirect export, joint venture and FDI.
Direct export- When an export activity has been carried out directly by the
manufacturer of the commodities, it has been known as direct export.
Indirect export- In this exporting, the manufacturer recruits the services of an export
middleman agency for exporting his items through middlemen.
Joint venture export- The export joint ventures have been subjected towards laws
that have been considerably and methodically somewhat different from such
pertinent to joint ventures.
FDI- An FDI has been an ownership stake in a foreign enterprise or project made by
a firm, investor and government from another nation (Zhang and Tian, 2021).
FDI has been chosen since FDI could develop along with improve the capital inflow,
and exchange rate stability as well as creates a competitive market in Holland as
such. The products produced via FDI could be exported to foreign nations and can
generate another effective income stream.

3. Global Trends and Their Application in the Local Environment

3.1 Two key global trends

Two global trends are:-

Faster progress in technology- The technological progress and development in
the Netherlands would be enhanced by a stronger digital infrastructure. The
Netherlands ranks second in the entire universe concerning online connectivity with
98% of households possessing a broadband connection (trade.gov, 2023). In
addition, the government of Holland assist the ICT industry with its digital agenda
along with its online digital strategy that fosters, knowledge, education,
modernization, rapid as well as open infrastructure, confidence, security, opportunity
for Graze and online digitalization of industry, healthcare, firm along with mobility as
well. Furthermore, from beginners to internationals, Information and Technology
firms of every size along with the snack industry could tap towards the technological
environment of Holland.

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Shifts in production and labour markets- As stated by Dix-Carneiro and Kovak,
(2019, p.126), a rise in the number of firms producing a provided item would
enhance the demand for the workers resulting in a shift towards the right in the
Netherlands. Moreover, the fall in the number of firms producing a given commodity
could minimize the demand for employees resulting in to shift towards the left. The
different approach and pattern of consumption among the consumer group has
increased the demand of various industries whereas there are many industries that
may experience downfall due to the change in the consumption pattern. The demand
for a healthy alternative to consumption is becoming important for the young
generation which can further result in a positive trend for health and fitness-based
food companies.

3.2 Trends Relevant to Graze Company

Technological advancement at the global level has presented various challenges in

front of companies that are operating outside their own domain country. The
technological factor is highly influenced by the attempt of making human work easy
to perform and faster delivery of work. Graze is a newly emerging company in the
UK which is looking forward to operating in the Netherlands. A proper understanding
of what technology can ease the production process is important for the company.
Graze can analyse its competitor's strategies regarding the new technology
implementation and then make its own strategy influenced by the competitor's
competitive advantages in the technology field. There are various technologies that
are available in the market and hold the potential to make a precise approach for the
production process of the company.
The shift in the production and labour market can be a threat to the organisation.
Graze is a newly-emerging organisation that is highly sensitive to competitors and
production disability threats. The slighter negative shift in the labour market
regulations can hamper the proper conduct of the company in the Netherlands. But a
good analysis of the future consumer market and production techniques shifts can
create a huge opportunity for the company. The external environment analysis of the
Netherlands is a helpful tool for the analysis of the opportunity and favourable field of
operation of the country. The shifting of the labour market demands and needs can

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create a crisis situation for Graze and can also result in the expected production
failure of the company.

4. Country-Specific Communications

4.1 Segmentation, Target and Positioning (STP) Strategy

Segmentation
The applicable segmentation on the Graze is geographic and demographic
segmentation. The geographic segmentation of the operation of the company will
provide a wider view of the expansion consequences to the company. This
segmentation is also helpful in the understanding of the consumer market on a
global level and in the initiation of consumer interaction. As per Jaiswal, et al., (2020,
p.730), demographic segmentation is most suitable to understand the demographic
diversity of the Netherlands and consumer behaviour and trend of the country. The
demographic segmentation will be helpful in ascertaining the density population who
prefers a healthy and fitness-inspired lifestyle. Healthy eating preference tracking
can also be done through demographic segmentation.

Targeting

Income group Middle to upper-income group.

Age 18 to 85 years.

Location Emergence has been done in the United

Kingdom but the operation will be
carried out in the whole of Europe.

Positioning

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 Figure 2: Positioning Map of Graze
(Source: Developed by the learner)

4.2 Cultural Needs and Wants

The cultural needs and wants are varying on a regular basis as the diversity among
the population is resulting a high variation in the cultural chives and preferences of
consumers from different regions (Turner, 2019). For a business to expand in a new
region, understanding cultural diversity and formulation of a good inclusive cultural
strategy can only facilitate the proper and smooth running of the business. The
cultural need and wants of the Netherlands for the Graze are ascertained through
Hofstede's Cultural Dimension theory (Huang and Crotts, 2019). The model
efficiently highlights the important aspects or dimensions that are important to the
proper conduct of the business. The dimensions are consisting of
Power Distance
The power distance index reflects the inequality of power tolerance of the
organisations that are operating in a country (Bruyneel, et al., 2019, p.708). The
power distance index in the Netherlands is 38 which is lower and indicates a highly
decentralized decision-making and flat organisational structure. This would help
Graze to operate with a flat organisation structure along with high employee loyalty
and contribution.
Individualism

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The individualism index reflects the higher self-incrementation priority of the
workforce in the country. The individualism index of the Netherlands is 80 which
reflects higher level of individualism in the country and this can be used positively by
Graze with policies that facilitate the individual risk and reward system which will
promote innovation in the organisation.
Masculinity
The masculinity index indicates the concentration on material wealth-building and
distinct roles based on gender. The masculinity index of the Netherlands is low (14)
which indicates higher femininity and promotion of fluid gender roles and higher
quality of life concentration this would facilitate the company to efficiently introduce
healthy snacking in the country.
Uncertainty avoidance
The positivity of uncertainty management can be reflected in the graph, which is
showing a high uncertainty avoidance index of 53 which implies that the country is
very ahead in the management of the future risk that may affect the growth of the
country and this would help Graze to operate with safety in the country.
Long-term Orientation
As expressed by Chun, et al., (2021, p.353), the long-term Orientation index of the
Netherlands is reflecting a high value of 67 which implies that the country is leaning
towards the long-term objectives and vision more than the short-term objectives and
visions and this can mark a good position for the Graze.
Indulgence
The higher indulgence index of 68 is reflecting a free gratifying society in the
Netherlands that can help the company to indulge in various social activities and
improve the market reputation and images through that.

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 Figure 3: Hofstede Cultural Dimension Of Netherland
(Source: hofstede-insights.com, 2023)

4.3 Marketing mix

The marketing mix or the 4 Ps of the Graze can help the company in understanding
and formulation of an effective marketing strategy related to its products, price, place
and promotion. This is also effective for the ascertainment of the market position of
Graze and how it can implement changes to get the greatest benefit during its
operation in the Netherlands market. The 4 Ps of Graze can be explained as follows
Product
The product of Graze would be the final offering of the company to its end consumer
and this product must have the ability to satisfy the variable demand of the consumer
market of the Netherlands. The product that could be sold in the Netherlands is a
healthy snacking option, different combinations of snacks and different ranges of
healthy flavouring in these snacks.
Price
The price of the Graze product is the value that the final output possesses in the
consumer market. Competitive pricing is the popular choice among newly launched
businesses and this will also benefit Graze. Apart from this market-oriented pricing
strategy and promotional activities and subscription-based pricing are also
applicable.
Place
The place is the final offering destination of the produced output and the place that
are applicable for Graze would be online merchandisers and retailers.

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Promotion
The promotional activities produced evidence and orientation of the final offering in
the marketplace among the interested consumer group and Graze can use
Advertising campaigns, and social media advertisements along with sales and public
association promotions.

4.4 Social media communications

The social media works as a feedback and review site for Graze where the various
consumer recommendations and reviews are taken into consideration for product
development and the company uses Instagram, Facebook and Twitter as social
media platforms.

5. Conclusion

Graze is a UK-based healthy snacks business that has been trying to expand its
business operation in the Netherlands and for this, the report has been prepared to
give a logical insight into the possible opportunities and threats that the company
face while the expansion process. Various analysis has been conducted along with a
certain overview of the current position of the company in the UK market. For
deciding the proper market target, the STP has been done along with the marketing
mix. The cultural needs and wants have been defined through Hofstede's Cultural
Dimension.

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6. Referencing

Websites

globaldata.com, 2023, Available at: https://www.globaldata.com/company-profile/j-

sainsbury-plc/#:~:text=Sainsbury's%20stores%20offer%20fruits%20and,and
%20frozen%20food%2C%20among%20others (Accessed on May 18th, 2023)

hofstede-insights.com, 2023, Available at:

https://www.hofstede-insights.com/country-comparison-tool?countries=netherlands
(Accessed on May 18th, 2023)

similarweb.com, 2023, Available at: https://www.similarweb.com/website/graze.com/

(Accessed on May 18th, 2023)

statista.com, 2023, Available at:

https://www.statista.com/outlook/cmo/food/confectionery-snacks/snack-food/
netherlands (Accessed on May 18th, 2023)

statista.com, 2023, Available at:

https://www.statista.com/statistics/386342/sainsburys-retail-sales-united-kingdom
uk/#:~:text=In%202021%2F22%2C%20annual%20retail,the%20fifth%20of
%20March%202022. (Accessed on May 18th, 2023)

trade.gov, 2023, Available at:

https://www.trade.gov/country-commercial-guides/netherlands-netherlands-
information-and-communication-technology#:~:text=The%20Dutch%20rank
%20second%20in,the%20world%20for%20technological%20readiness (Accessed
on May 18th, 2023)

tradingeconomics.com, 2023, Available at:

https://tradingeconomics.com/netherlands/retail-sales-annual#:~:text=Retail
%20sales%20in%20the%20Netherlands%20grew%2011.3%25%20year%2Don
%2D,5.8%25%20in%20December%202022 (Accessed on May 18th, 2023)

Journals

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