Shani is a very popular fruit drink manufactured by PepsiCo. This drink is generally produced for the Middle Eastern markets, and has a very limited exposure of the western consumer market. Although the product is almost anonymous in the western markets, it is one of the most popular beverage brands in the Middle Eastern market, and is enjoyed buy a diversified customer market. The product is marketed as a very refreshing and light drink, which can enable the consumer to clear their minds and simply enjoy the drink. This paper in relation to the Shani Drink, will prepare a market expansion report for the company to expand its operation in United Kingdom as host country.
International Market Segmentation
Description of Host Country
The UK consumer market is very well diversified, and it consists of a complex and multi cultural groups. The well integrated and diversified nature of the UK market means, that the companies can seek to offer a variety of products to the national market (Mitchell & Bates, 1998, pp. 220). Even the native UK population is variable open to consuming the oriental and exotic food related items. This general demand for the food related items, has given the Asian community an opportunity to introduce various food and beverage related products.
Preliminary Screening
Considering the diversified nature of the UK consumer market and the general demand for Middle Eastern and Asian food and beverage products; the Middle Eastern entrepreneurs should seek to capitalize on this opportunity using the strategic marketing tools. These entrepreneurs have to realize that they are offering an innovative and different product to the market, and must utilize the appropriate branding strategies. They cannot rely on the traditional marketing approaches, to be able to form the adequate brand value and the consumer market.
Environmental Analysis
PESTEL Analysis of the Macro Environment
Political and Economic Factors
The UK government policies are very equitable and fair to the majority of the companies that seek to establish their business functions within the region (Mitchell & Greatorex, 1990, pp. 19). However Shani drink would not have to experience any difficulty related to the respective UK government policies or procedures, because the parent company PepsiCo already has a massive existence in the region. In the economic perspective the UK market is very active, and although the consumer activity has decreased due to the recent global financial recession, the national market can still be considered one of the most lucrative global markets.
Social and Technological Factors
As mentioned the UK market consists of the adequate bland of multi cultural groups, which makes an ideal target market fort the product. Hence the social factors in the region will generally favour the launch of Shani drink, and will allow the company to initially attract the Asian and the Middle Eastern population. However the marketing will not be specific to only these groups, so as to isolate the considerable native population. The technological factors would be utilized to enhance the branding and marketing ...