Reasons For Going International Marketing Essay

There are many grounds for traveling planetary, nevertheless the major ground is to acquire more income by spread outing gross revenues and make public cognizant that there is a cocoa called Kandos, which is really originative. This can be achieved by diversifying the merchandise line in other states due to different environmental state of affairs. Therefore, same criterion of goods with minor alterations can be sent in to the suited markets. Besides when come ining planetary, the buying power additions due to the addition in population.

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As cocoa industry is at a grown-up phase in Sri Lanka, it is difficult to achieve gross revenues unless by advancing to aliens in tourer topographic points like Kandy, Galle. Therefore by traveling to another state where the fabrication is at a turning phase or introductory, it is easy to catch the attending of clients easy.

At the same clip, by traveling planetary, the concern can cut down hazards like force per unit areas from domestic rivals the company can be overcome easy. As in Sri Lanka, the competition is reasonably high for cocoas. Therefore if we do n’t increase gross revenues the Kandos does non turn, and as an affect the rivals will turn. This will bring forth a awful state of affairs for the concern due to the licking of clients for rivals.

Market Cleavage

This can be done in two ways: merchandise signifiers and client based.

With Respect To Product Forms

Molded Chocolate Segment

This section constitutes 25 % of the whole market place. Kandos flagship trade name has 25 % of this section market. To place Kandos in this section Kandos used the conventional demographic variables of socioeconomic groups, age, and usage strength. Kandos was positioned as a merchandise that seniors bought for childs. Kandos has really connected itself to emotional values and enduring of love, parental fondness, sharing, and recompense. Sing that Kandos about acts as a tendency compositor for all the trade names in this section, this limited the placement of the whole group towards kids merely. Kandos attempted to enlarge the group by conveying in adolescents, but it was non successful.

The Kandos trade names in this section are CDM, Fruit & A ; Nut, Crackle, Bournville. Cadbury is the taking trade name at India, and others take action as an subscriber basket for the concern.

Cadbury have 25 % of this section, the company ‘s most of import trade names are CDM, Fruit & A ; Nut, Bournville, and Crackle.

From around 1992, this section began testing marks of adulthood. This was aching Kandos. This led to Kandos trying to regenerate the section. They distorted their nucleus buyer from childs to that of the universe both grownups and kids. This enterprise at redefining the market to alluring all age sections helped to convey about alterations in this section. Now the construct associated with the usage of cocoas is that of carelessness alternatively of merchandise ingestion.

Now this section grows at 30 % per annum and is possible to stay a important section for extra growing.

Countline Bars Segment

This section forms 33 % of the cocoa market. This section is typically targeted to adolescents.

Major Kandos trade names are 5-Star, Break, Real, Krisp, and Double Decker. 5-Star is making good at India about 30 % of the section. While the other trade names proceed as subscriber trade names.

Kandos has a minor presence in this class with its merchandise Bar-One.

Growth of a Sub Section: Cocoa Wafers

Cocoa wafers are the new merchandises being offered by cocoa companies nowadays in order to increase the market portion. Kandos and Cadbury launched hththtjj and Perk. These were wafer covered with cocoas in a new context and offering a different benefit. Both cocoas had a bite placement. Perk offered the anytime anyplace snack proposition – ‘Thodi si Pet Puja ‘ , whereas KitKat tried to advance noshing through ‘Have a interruption, Have a KitKat.

The growing rate of the section is 20-25 % yearly and it is estimated to be deserving of Rs. 100 crores making it a really profitable section.

Globally confectionery goods like wafer cocoas have a bigger hereafter than basic normal cocoas. Success and Market research of these two trade names propose that Indian clients are ready for accept the wafer cocoa proposition. The strong belief of both Kandos and Cadbury section can be gauged from the information that both the trade names are seeing extraordinary part of fundss to the melody of 50 % to 60 % of the full advertizement fiscal program of both companies on cocoas.

Choco Panned Sections

This subdivision forms 5 % of the full market and Kandos has 100 % of the market portion in this section. The major trade names are Nutties, Caramels, Butterscotch and Tiffins.

All of these trade names have been used by Kandos to drive assortment induce endowing patterns and serve to some specific gustatory sensation penchants. Kandos does non publicize these merchandises. They have been used as flanker merchandises.

The opportunity for growing in this section is really high with the looming entry of transnational companies like Hershey ‘s and Mars. This is besides likely to pretense a hazard to Kandos, what with its complacence.

Sugar Panned Segment

This section organize 20 % of the whole market and Kandos has approximately 50 % of this section. Its major trade names are Gems and Eclairs.

Eclairs has been used intentionally to further chocolate ingestion among kids every bit good as grownups by offering a bantam ‘guilt free, eat no more than a biteful ‘ at a convenient monetary value point. ( 65 % of Eclairs feeders are from the families gaining less than Rs. 4000/- per month. )

Gems is still Kandos ‘s primary tool to protect its franchise in the kid section. It was antecedently associated in its commercials with the international undercover agent character, James Bond. Around 1995, Gems was repositioned to wide base its entreaty from 3-6 old ages olds to adolescents every bit good. However this failed due to the merchandise signifier which has become profoundly frozen with childs and hence the company has reverted back to the mark section of childs with a new offering of ‘Chocogems ‘ .

With Respect To The Consumer Buying Power

These are:

High income clients ( monetary value greater than Rs. 25 for 40 gram. ) who will travel in for premium cocoa trade names.

Middle income clients ( monetary value between Rs. 10 – 25 ) who are monetary value sensitive.

Children, who are largely monetary value driven and will devour more of brittles in the monetary value scope of Rs. 0.50 – 1.

Psychographics And Demographics

This is attempted in footings of the consumers.

High income clients – it is estimated the age group purchasing the cocoas will be 22 onwards. The income degree is estimated to be Rs. 8000 per month. The clients are largely urban, and are largely professionals ( applied scientists, physicians, executives, etc. ) The psychographic profile:

They can either be persons indulging themselves, or they could be indulging their kids. They are interior directed people who form their ain values and norms and believe in non adhering blindly to societal norms. They are slightly occasion driven in their purchasing behavior.

Middle income clients – it is estimated that the age group in this section will be 15 plus. The income degree is estimated to be around Rs. 5000 per month. The consumers can be urban, semi urban, and is presently distributing to rural countries.

The psychographic profile: they are likely to be assortment seeking in their behavior. They are self showing by nature and inner directed to an extent. They like to indulge themselves.

Children – the upper age bound is estimated to be 12 old ages. They largely purchase their cocoas with their pocket money. The consumers can be urban, semi urban, and rural, though their is a slightly greater accent on urban.

The psychographic profile: they are novelty seeking in behavior. They are besides fun loving.

Pricing Scheme

Since we are new to the market we planned to utilize incursion pricing stratergy. A incursion pricing policy is used to excite market growing and gaining control market portion by intentionally offering merchandises at low monetary value. This stratregy seeks to accomplish a lower monetary value than the rivals whilst keeping similar perceived merchandises benfits to those offered by rivals. Competitive advantage through incursion pricing startegy might be achieved by concentrating on a market section that is unattractive to rivals and so avoiding competitory force per unit areas gnawing monetary value. After six months we have planned to give the merchandises in competitory monetary value where we can last in the market.

The following option is non competive pricing it is a wide differenciation stratergy supplying merchandises that offers benefits different from those of rivals and that are widely valued by purchasers. The purpose is to accomplish competitory advantage by offering better merchandises at the same clip monetary value or heightening borders by pricing somewhat higher.


Under merchandise startergy we are traveling to look in to marketing mix. It is a good tool to implement the stratregy.

Selling MIX OF ODEL:

Merchandise: –

When speaking about our merchandise, it is traveling to fulfill our clients by supplying comfy and likely merchandises. We ever used to bring forth new tendency merchandises which clients like most.

Already Kandos have foreign purchasers at Sri Lanka even though our mark is to accomplish Indian market. These are our bing merchandise lines in Sri Lanka now we are exporting the merchandises to India,

Ladies wear

Meanss wear

Childs wear

Home wear


Perfumes & A ; Cosmetics

Books & A ; Music

Shoes & A ; Handbags


Gift Wraps & A ; Souvenirs

All our merchandises are designed after research and development at India. All the merchandises are designed in different manners and different Tastes which will be attract immature aged people. Normally Indians love to eat more Sweets. We have prepared the merchandises harmonizing to the Indians gustatory sensation. Largely we designed in the cotton stuff which will be really cool and comfy.

Besides we designed the jewelry and pocketbooks in different forms and colorss. We chiefly designed this harmonizing to the age section. So we can pull all age of people.

When we consider about quality we use high quality merchandises. At the same clip we recruit merely good experient Labours. So the end product will be extremely quality for low monetary value.

Monetary value: –

A hard facet of export pricing is the determination about what currency the monetary value should be quoted in. we has the undermentioned options:

The foreign currency of the purchasers state ( Indian Rupees )

The currency of 3rd state ( normally UD dollars )

However we have benefits by citing in foreign currency:

Quoting in foreign currency is a status of a contract.

It could entree to finance at lower involvement rates.

Good currency direction it means of deriving extra net incomes.

Customers usually prefre to be quoted in their ain currency in order to be able to do competitory comparings and cognize precisely what the eventualy monetary value will be.

We set up a unsmooth thought about monetary value construction to place the degree of profitableness. The tabular array below showed chief two prduct line budget:

Monetary value Structure – Discounts


Ladies and Work forces wear

Jewelery and Cosmatics

Volume ( Unit of measurements )

1 to 5

6 to 10

11 & A ; above

1 to 5

6 to 10

11 & A ; above

Price ( $ )

Discount ( $ )

Gross ( $ )

$ 100

$ 1

$ 99

$ 100

$ 10

$ 90

$ 100

$ 20

$ 80

$ 150

$ 0

$ 150

$ 150

$ 10

$ 140

$ 150

$ 20

$ 130

Table 1 pricing construction

Topographic point: –

Since we planned to travel Australia we are traveling to make transit by sea. At the minute we have planned to set two warehouses. Once we send the merchandises our Australian employees will transport the goods to warehouses and shop. At the minute we have planned to set warehouses at Sydney and Melbourne. For the clip been, merchandises will present to end-user in the undermentioned ways: –

Gross saless at point

Door-to-door gross revenues

On-line services


Mail orders

Promotion: –

We are publicizing in Television, wireless and newspaper that will distribute through out the state. We have announced that freshly opened Kandos is giving particular price reductions for all merchandises for the one month period. This sort of publicity will do the clients to buy more merchandises to have the price reductions.

Chiefly we are making this sort of publicity to do cognizant to people about the Kandos, persuade them to purchase the merchandises by giving price reductions, to inform them about the merchandises and to remind them often about the Kandos.


Aim of the promotional mix is to increase consciousness of the Kandos by 50 %


While advertisement we should see Indian leagal state of affairs, linguistic communication, cultural facet and media restrictions. Our advertisemnet should non be miscommunicated.

Analysis of Media

First we should do analysis of Indian channels like handiness, free channels, paid channels, how often it is watched and the figure of people watch etc. Then we select free channel to publicize which the more figure of people watch. Besides we will publicize in newspapers, broachers, magazines and painted coachs etc.


We contact to the advertisement company which has local and international subdivisions so we made understanding with them. Now we paid a portion payment for the advertisement company they will make all the agreements for all advertizement including choosing a theoretical account and the topographic points for the Television advertizement. After making this all we have to pay them in Indian Rupees.

Gross saless Promotions

As I mentioned in marketing mix Kandos is offering particular price reduction for one month period from the beginning day of the month.

Public Relation

Kandos will go on to portion information and keep a close relationship with its clients through Facebook and Twitter.


Kandos ‘s scheme is to make robust and sustainable regional places in its two nucleus markets, confectionery and drinks, through organic growing, acquisitions and disposals. It has exited markets where its believed it did non hold or could non construct, sustainable concern theoretical accounts. It has strengthened bing places and extended its presence in higher border, faster turning merchandise classs or geographicss within its nucleus markets. The company follows a multi branding scheme i.e. holding more than one trade name cater to a peculiar section that may even take to the cannibalization of gross revenues of one trade name. The game program for the company is to increase the ingestion of cocoa and confectionery among grownups by offering merchandises in convenient battalions at low-cost monetary value.

Future Plan: –

Following are the aims of Kandos to develop in future

Distribute better stockholder incomes on the support of superior concern public presentation

The company ‘s significantly and productively heighten its portion of the international confectionery market

Productively protected and so bring forth its portion of the country beverages markets in which the company has selected to lend.

To back up its name as a Company which inspires, expands and wagess employees for higher public presentation and make a disparity in the societies in which it does trade.

To spread out trade names with throng franchise and widen out its distribution system extra into the rural division

Keeping among the reactivity that new merchandise development offers the key to increase in this market

Initiate one new merchandise each twelvemonth and widen its sugar confectionery pick.

Consumer Buying Behaviors: –

This merchandise is normally bought as a expedience good and this merchandise type come under Fast Moving Consumer Foods ( FMCG ) .

Kandos is a low engagement merchandise, but there are of import fluctuations in different trade names in market. The subsequent matrix may help in larning the behaviour of consumer pro this demanding merchandise group.

High Involvement Low engagement Considerable fluctuations multifaceted purchasing behaviour Variety seeking behaviour Cocoas

among with trade names

and few fluctuations conflict cut downing Routine purchasing

between trade names purchasing behaviour behaviour

In this class, consumers are on a regular basis established to make a batch of trade name altering. While the consumer expecting some benefits from cocoas, nevertheless he decides a trade name missing much appraisal, and measure it during passing merely. But later clip, reasonably habitually he may achieve for an extra trade name out of ennui or a hope for a particular gustatory sensation. Brand altering arises for the interest of diverseness somewhat than letdown.

While Kandos has 25 % of market portion, this diverseness looking for public presentation had non affected its gross revenues unconstructively. This had been possible due to different factors. Though, by the fresh rivals in the market, there has been inflexible competition. There are small sections like wafer cocoas section where company permit well-built competition from Cadbury, the foremost participant in the market. The company needs to heighten trade name dependability for its trade names for this section.

This improved consumer trueness will besides execute as bar towards enlargement of well-built rivals in other sections. Additional to enlarge the by and large size of market, company should try to raise consumer ‘s part with cocoas.

“ The hereafter scheme of the company is to keep its laterality. ”


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