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Submitted by ccfw1980 on March 1, 2008
Category: Business
Words: 8376 | Pages: 34
Views: 289
Popularity Rank: 31,374
Average Member Grade: N/A (Add a Comment / Grade this Paper)
1.0 Executive Summary
Saturation of Walkers Snack Foods home market in the UK has encouraged the company’s Executive Directors to examine the option of launching internationally. After analysing the internal and external environment, the decision was taken to launch the Walkers’ brand into East China. China was identified as a significant growth market for foreign branded snack foods. Walkers has put in place a plan to enter the market through Foreign Direct Investment with the establishment of a wholly owned subsidiary. In order to coordinate Walkers’ operations in China, a series of marketing objectives have been established. These objectives will be achieved through the implementation of a tactical Marketing Mix, which has been adapted for local market conditions. Implementation of set marketing objectives will be monitored by control mechanisms, with adjustments initiated where necessary. Walkers’ investment into the Chinese market provides good short-term opportunities with a long term potential for growth throughout East Asia.
2.0 Introduction
2.1 Context and Reasons for the Firms Internationalisation Decision
Walkers Snack Foods Ltd. , originally Walkers Ltd., launched its first brand of crisps in 1948. Since the early days Walkers has grown dramatically in size, today employing more than 4,000 people in fifteen locations around the UK. It is estimated that 11 million people in the UK eat a Walkers product everyday. Walkers Snack Foods Ltd. is now a wholly owned subsidiary of PepsiCo Inc , but still has control over its own operations.
Despite a number of new product launches and a variety of innovative marketing techniques, Walkers is beginning to see saturation of the UK snack foods market. Walkers’ current market share in the UK stands at 44.5%, based on 2002 figures. Walkers has had great success in the UK, but there has been no attempt to internationalize the...
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