4.7 International Marketing: Exam Practice Question
2. Explain two different reasons why Zumposa would want to enter new international
markets.
Zumposa wants to make their brand a global brand to reach a larger customer base, which
could be by entering new international markets so as to have a better chance in attracting
more customers. This, in turn, could also increase Zumposa’s chance of maximizing their
sales and increasing their profitability.
By entering new international markets and operating in multiple markets, the responsibility
become shared to the point that if one operation is not profitable, other operations in
different markets may still function properly and is profitable. Therefore, entering new
multiple international markets can be seen as an advantage to a company because it does
not put too much burden on a certain branch of the company.
3. Outline three different strategic options for entering Asian and South American markets
that Zumposa could consider.
One strategic option Zumposa could adopt is international franchising. Considering that
Zumposa is seen as a Spanish drink, using international franchising allows Zumposa to
understand more about the cultural differences of the country they are aiming for through
the franchisee. This would then allow global localization to happen, where changes to
products will happen so as to fit the taste of the consumers in a specific country. By
collaborating a franchisee, though some control may be lost, Zumposa can have a better
understanding of the country.
Another strategic option would be direct exporting. This is because with the advancement
of technology, exporting goods can be done in a short period of time, without having to pay
the extra expenses for storage. Lastly, they could also adopt joint venture, where they can
obtain information regarding the cultural differences of a certain country so as to
understand the needs and taste of the consumers better.
2. Explain two different reasons why Zumposa would want to enter new international
markets.
Zumposa wants to make their brand a global brand to reach a larger customer base, which
could be by entering new international markets so as to have a better chance in attracting
more customers. This, in turn, could also increase Zumposa’s chance of maximizing their
sales and increasing their profitability.
By entering new international markets and operating in multiple markets, the responsibility
become shared to the point that if one operation is not profitable, other operations in
different markets may still function properly and is profitable. Therefore, entering new
multiple international markets can be seen as an advantage to a company because it does
not put too much burden on a certain branch of the company.
3. Outline three different strategic options for entering Asian and South American markets
that Zumposa could consider.
One strategic option Zumposa could adopt is international franchising. Considering that
Zumposa is seen as a Spanish drink, using international franchising allows Zumposa to
understand more about the cultural differences of the country they are aiming for through
the franchisee. This would then allow global localization to happen, where changes to
products will happen so as to fit the taste of the consumers in a specific country. By
collaborating a franchisee, though some control may be lost, Zumposa can have a better
understanding of the country.
Another strategic option would be direct exporting. This is because with the advancement
of technology, exporting goods can be done in a short period of time, without having to pay
the extra expenses for storage. Lastly, they could also adopt joint venture, where they can
obtain information regarding the cultural differences of a certain country so as to
understand the needs and taste of the consumers better.
