Question 1

a)

42Below is a dynamic company which is constrained by the unique feature of its products
and the small size of its local market. 42Below has built on its 'Kiwi-ness' its reputation. It
uses a different approach for consumer growth, marketing to a small market a concentrated
group of goods. Around the same time, they are using a different approach for product
growth. Short-term strategy looks at the company's current features and creates plans to
enhance them. The abilities of the workers and their behaviours are examples. Short-term
considerations are often the state of manufacturing facilities or product safety issues. In order
to do so, they continue product creativity with preferences that are closely related to New
Zealand. They should concentrate on experiences that fit the tastes of local markets to move
down this path. This will encourage them, in one or two lines in each sector, to retain their
basic range, extend and explore. Two strategic growth paths, which are new product
development (NPD) and new market development (NMD), can both deliver growth. The
medium-term solution if there are quality concerns is to revise and improve the quality
management policy of the organisation. In its social , economic and political climate, long-
term strategy responds to the company's strategic condition and creates plans for adjusting
and manipulating its position to accomplish long-term goals.

b)

42Below has a well-established commodity that has an existing presence. They have a rather
limited scope within this sector at the premium end. In order to sustain sustained expansion,
the demand is limited and would need a large geographical distribution. They made the best
quality vodka and then incorporated flavours to give the drink a special 'kiwi-ness'. In the
industry, the brand name of every commodity is worth its profit. As far as the case of 42
Below Vodka is concerned, it has become a worldwide benchmark in the spirits industry,
showcasing the significant emblem of the image of purity, imagination, individuality and
cleanliness of New Zealand. It stresses the purity of ingredients used, first from New
Zealand, to distil the perfect and unique flavour of world-class premium vodka. 42Below, the
commodity has been made pricey so that it preserves exclusivity. They have leveraged New
Zealand's clean , green picture. Initially, there would be no need to widen the variety because
its 'Kiwi-ness' is the draw and they are able to homogenise the market with this.
c)

Initially, the benchmark would be the bottom line due to the limited scale of the business, but
a metric of market penetration would be more appropriate in the longer term. It is acceptable
because it calculates and takes a balanced perspective of the market share of its rivals. Any
market is carefully picked and reached only where the brand has scope to become
meaningful. Using premium price points and highly targeted delivery platforms, their
penetration into new markets has consistently focused on branding as a premium brand. The
price policy of 42Below is consistent with the positioning. It sells in the US at about $30 a
bottle. 42Below, followed closely by the UK and the US, spread first to the Australian
market. As these markets were considered to be close, 42Below was able to use the same
method of viral marketing across the three markets. After having received two premium
awards in Brussels and Paris, they joined the Italian, German and French markets. All the
bars they supply powerfully promote their goods in these nations. 42 Below, the world's taste
tests are consistently performing. They also received numerous prizes, including 42Below
Pure Vodka's 2004 Gold Medal at the Brussels Monde World Collection. In 2006, at all big
spirit competitions, they had a grand slam of gold medals, a tribute to their excellent
positioning and unique knowledge of prospects they so aggressively sought.

d)

The marketing strategy approach of 42Below deviates from conventional marketing practises.
Long before they were domestically founded, they abused foreign possibilities. Typically,
this strategy involves the use of networks to reach separate niche markets and encourages the
use of personal knowledge as a means to reduce risk and confusion (Chetty and Campbell-
Hunt, 2004). They had a very good idea of what business they were in when they headed to
the market: the discerning category of beer. This was used for each nation to push the
segments they would target. 42 Below is a competitive business which is limited by the
specialised quality of its sector and the small scale of its local market. They will never have
been able to fulfil their voracious appetite for growth and likely dominance over the world.
Their limited budget pulled them out of the normal sales outlets which suggested they
decided to use a team of 'kiwi ambassadors' instead of relying on the consumer to reach the
barmen which owners of the locations their business segment congregates. This meant they
could more cost-effectively reach their clients across the sphere of power of barmen and
shareholders.
Question 4

Technology, which provides opportunities for penetration into new markets, also remains one
of the major business forces for foreign marketing. In the decade ahead, a number of
emerging innovations impacting connectivity, wellness, safety and manufacturing will have
an effect on foreign marketing. Environmental issues such as wellbeing, pollution,
conservation and extremism play a growing role, but they also provide foreign advertisers
with both resources and constraints. A fiercely debated political and public discussion about
whether something could be done about global warming and what might be done cost-
effectively to mitigate or reverse potential warming, or to deal with the predicted effects, has
yet to be settled. Technological factors are variables that are used in reference to
technological capacities for the comparison of available alternatives (Kadile, 2017). It is
viewed by organisations as an essential instrument for enhancing processes and functions.
Technological variables are one of the external environmental indicators that have a direct
effect on industries and are also an important part of the PESTLE analysis. Technological
factors will have more impact on company processes and performance worldwide than ever
before in the current scenario, utmost reliance on machinery. Technology trends influence
organisations on multiple ways. He turns out to be effective when an employee is successful.
In comparison, as an organisation is more in contact with its existing and future clients, the
more likely it is to create a solid foundation of customer loyalty. This will be made possible
by advancing technologies. Within the technical climate, strategic leaders are continually
searching for progress and changes.

When launching a budget-conscious good into an overseas market, an international firm can
consult the technological factors. For instance , it is difficult to foresee factors such as
technological progress and cultural and foreign government rules to get an organisation to be
stable in a new international arena (Zwan et al. 2016). In retrospect, when the implications of
the international economy have not earned too much reference and analysis, the implications
of the international marketing environment on entrepreneurs in the developed economies
should not be overemphasised. On the international level, with more global orders coming
from there, as some country markets tend to become increasingly appealing, the business can
reach countries on an ad hoc basis, for instance each country can be entered sequentially, but
with very little learning and promotion activities being exchanged across countries (Biraglia
and Kadile 2017). Any efficiencies are pursued in the multi-national process by standardising
around an area (e.g., Central America, West Africa, or Northern Europe). Finally, the
multinational process reflects on the whole international economy, with decisions taken to
maximise the role of the commodity around countries where the home country is no longer
the nucleus of the commodity. Coca Cola is one example of a genuinely multinational
company.

In the light of this revolution, the mechanisms of introduction and dissemination of new
goods, services and technology need to be presented. A specific risk and incentive for
businesses is the recognition of lead consumers in overseas markets. A significant part of
evaluating the information and technology landscape is an awareness of how relevant
business dynamics are evolving, both internationally and in national and regional markets.
Health, geography, consumerism, technology, environmentalism, extremism and ethics are all
contemporary factors that influence the choices of foreign advertisers, which contribute to the
complexity of developing opportunities for businesses in the evolving international
marketplace.
Question 5

The products that are ideally suited to a geocentric pricing approach in general, electronics,
food and clothes are consumer products with a global appeal to differing degrees. How these
goods are consumed is also dictated by each country's dominant culture(s). Similarly, with
global appeal, accommodation and transportation are marketable goods globally. Again, how
these goods are used is dictated by the infrastructure available that exists within each country.
In foreign marketing, the function of pricing is similar to the collection and purchase of
luxury wines. The international price setting needs analysis to decide the most acceptable
price to charge in the same manner as wine to be sampled is sipped rather than gulped
(Keegan warren, 2012). Almost as producing fine wine is a negotiation between both the
winemaker 's goals and the consumer's wishes, the determination of prices in international
markets is a balance between the company's strategic goals and the estimated demand at
different price levels. Because of the need to add excise or sales taxes, the winemaker may
not entirely monitor the price to be paid and rates charged for goods sold in other nations are
also controlled by legislatures. On market entry and on new product releases, it is common
for UK and US firms to require a fast payback, this being dictated by stock market pressures.
In the other hand, Japanese businesses also have a much slower demand for initial earnings.

Geocentric pricing attempts to establish a pricing policy that would be consistent in all
national markets. Coherence could be based on antitrust policies, it could be measured to
mitigate the risk of emerging grey economies, or it could be based on separate groupings of
regions around the world. Geocentric pricing is concerned with the creation of a large and
coherent approach through which necessary changes can be made by distinct country
management (Khalil, Tarek, 2006). Pricing has an influence on the other ingredients that
make up the foreign marketing blend. The concept of price inflation in the supply chain is a
facet of pricing in foreign marketing. There are a variety of possible extra costs associated
when selling goods across foreign borders compared to solely domestic marketing, such as
increased transportation and insurance costs or more intermediaries participating in the sales
networks (Denise Johnson, 2014). Elements such as export paperwork and the need for more
advanced packaging and import duties are also subject to extra charges. The result, for a
longer value chain in foreign markets, is that costs and, thus, premiums are also raised. This
means that, for example, a commodity which is price-competitive on the domestic market
will be entirely uncompetitive on the foreign market in terms of price. Therefore, in
evaluating the feasibility and potential of foreign markets, the organisation must closely
consider the degree to which price inflation is likely to occur and its potential effect on
demand.

There are a variety of pricing tactics that companies employ. Bundle, subscription,
competitive, market, discount, and psychological pricing are some models. Ideally, a
consumer price approach that begins with what the international competition offers
comparable competitive goods for (which is where all marketing effort can begin). Then both
the importing company and the exporting company are working back on their costing systems
in order to allow a sufficient margin between the actual retail sale price and their individual
unit costs. Transfer pricing is perceived to be a threat to a country's national sovereignty
where the issues posed above are not reached. For example, it was feared that Shell would
prevent or at least reduce tax by 'transfer pricing' (Harper 2001) by the merger between the
Australian corporation Woodside and the Dutch-UK multinational Shell.
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