The business environment of the 90s is a world of constant change, where new ideas, stiffer competition and improved communications create a need for organisations to make strategic decisions which help them to grasp and develop business opportunities wherever they exist.
When companies market their goods within the UK they are targeting their products at a domestic market of 60 million people. However, the need to market their products overseas is an economic necessity for ambitious companies.
International marketing refers to the marketing of goods and services across national boundaries and helps UK companies to:
- reduce their dependence on a single domestic market
- reduce costs through higher sales volumes
- improve profit margins
- counter activities from global competitors
- develop new business opportunities
- globally compete with other internationally competitive businesses.
Until recently a true world economy did not really exist. The Soviet Union, its East European satellites and China opted out due to communism, leaving more than half the world's population living outside the free world's economy.
The situation today is different as many of these countries have gone through the process of reform and, with markets totalling nearly 3 billion people, they represent a challenge and an opportunity for British companies.
Cadbury Schweppes describes itself as a 'British-based, but internationally focussed food and drinks business, operating primarily in the "impulse purchase" or "informal consumption" segment'. The company has a commitment to:
A) Continue to focus operations in the market sub-sectors of confectionery and soft drinks and specifically:
- aim for a "top three" position in the global confectionery market
- consolidate its soft drinks position worldwide as the largest and most
- successful non-cola brand owner.
B) Aim for profitable growth via a flexible but carefully selected use of organic
development, acquisitions and alliances.
C) Monitor positively and regularly growth opportunities in adjacent market sectors where acquisitions or alliances could bring real gain through synergy.
In summary, the company is ambitious. It will achieve its aims via growth, acquisition and alliances, whilst maintaining its profitability.
In the global confectionery market Cadbury Schweppes has established businesses in the UK, India, South Africa and Australia, to name but a few and has grown some of its businesses still further through exports.
Additionally, the company has acquired businesses in countries such as France and Canada and built factories to support its growth strategy in Argentina, China, Egypt, Russia and Poland.
This study is about Cadbury Schweppes' investment in a greenfield site in Poland and its entry into the Polish confectionery market.