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As international marketing consultant of Mackie's of Scotland, the ice cream maker, it is my duty to consider the possibilities of expanding the business

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Introduction

INTERNATIONAL MARKETING OUTCOME 1 By: DANIEL CAPARROS ILLESCAS As international marketing consultant of Mackie's of Scotland, the ice cream maker, it is my duty to consider the possibilities of expanding the business into new overseas markets, successfully. The Scottish ice cream market will be researched thoroughly. The UK target market of Mackie's will be analysed. Finally a suitable country will be chosen to market the product to. The countries that will be selected from will be Saudi Arabia, Germany or Ireland. The UK ice cream market is estimated to be worth �1.25 billion. Mackie's of Scotland have been making ice cream in Aberdeenshire since the 1960's, although they have been farming since before the turn of the century. Ice cream has been in existence since 618A.D but is rumoured to have been invented in 200B.C in China. The first documentation of ice cream in Britain is dated in 1672 during the reign of Charles II. The uniqueness of Mackie's ice cream is that firstly it is made in Scotland, it is made with the help of Jersey and Angus cows, it is run by a Scottish family/workforce, Mackie's is the market leader in Scotland with 45% of the market and has an 11% UK wide market. Mackie's aim is to strengthen its UK market position and then look into potential export opportunities. These factors mean that the company and product are idea and ripe for expansion into foreign markets. Mackie's trademark symbol is a milkmaid milking a cow in a field. The traditional flavour of the ice cream is represented by blue packaging. It is not called vanilla but simply traditional. No flavours are added to Mackie's Traditional. Other flavours in the range include Honeycomb Harvest, Strawberry and Cream, Caramel Choc Mint, Absolutely Chocolate as well as Organic Ice Cream. Traditional is available in 120ml tubs, 500ml, 1 litre, 2 litre, 5 litre and 10 litre tubs. ...read more.

Middle

Yet progress is made very quickly with these types of countries as their previous technology was so primitive, they can adapt quickly to a completely new system. The wealth of the nation means modernisation can take place quicker than in poorer countries, and quicker than countries that have to have legislation and funding go through a tedious governmental process. However advances in technology have benefited the military forces in Saudi Arabia. Germany is another country that Mackie's ice cream could possibly be sold in. Germany is a democracy whose head of state is a president who has a 5 year term. The president appoints a chancellor who is responsible to the Bundestag, the lower house of parliament. Law is passed in Germany by a Bundestag majority vote. Germany has many political parties and therefore elections are not usually won outright because of proportional representation. Political parties have to form coalition governments, much like Labour and Liberal Democrats in Scotland. Germany's major trading partners are France, Holland, Italy, the United States of America, UK, Belgium, Luxembourg, Austria and Switzerland. Germany is politically divided into 16 states. Economically Germany is one of the strongest countries in Europe. Even though the division of Germany from 1945-1990 damaged the country's economy badly, the recovery has been remarkable. It was East Germany that was the main problem, this is because West Germans had to pay high taxes to fund infrastructure, environmental and industry improvements. Now Germany is a powerhouse again with a gross domestic product of $1.87 trillion. Germany now uses Euros as its currency. 1.57 Euros are equivalent to �1. Major imports include road vehicles, food products, clothing and accessories, petroleum and petroleum products, electrical machinery, office machines and data processing equipment. The major exports of Germany are machinery, transportation equipment, chemicals, textile yarn and fabrics, clothing, iron and steel, power generating equipment, precision instruments, office machines and data processing equipment. ...read more.

Conclusion

The Irish would have no problem with the product whatsoever. Distribution channels would have to be considered. It could be extremely difficult to transport large amounts of ice cream to Saudi Arabia as land and sea transports would have to uses, which is not ideal. Ice cream delivered to Germany would most likely be in an articulated lorry, which would take a number of days and relatively small amounts of the product could be delivered at a time. The ice cream delivered to the Irish would be through road and sea transport. As Ireland is quite close there is little chance of the product being ruined in transport. Currency exchange rates would have to be monitored in order to make sure Mackie's don't go into a market that can't afford the product. If the product is too expensive by the export country's standard then no-one will by the product. The product should be competitive within the market. The Saudis use Riyals the Germans and Irish operate on Euros. The country that I would choose to market the ice cream to would be Ireland. Politically Scotland and Ireland use similar techniques, they trade with similar countries, agriculture and industry are the main sources of income. Economically Ireland is stable. The amount of tourists that visit Ireland is quite phenomenal and it would be an opportunity wasted if Mackie's don't enter the market there. Ireland has a low population which could be seen as a good attribute, this is because Mackie's are already market leader in Scotland, which has a population of 5 million. Therefore 2.8 million people to target would be relatively cheap, and another market could belong to Mackie's. Technologically Ireland is advancing. However only ice cream giants like Wall's will have far superior ice cream making equipment than Mackie's. Technology advances in the country could help Mackie's in Scotland. I feel that Saudi Arabia would not accept the product with specific Scottish branding. Germany being a very nationalistic country would also reject the ice cream as they would favour German brands of ice cream. ...read more.

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