Example Of Segmentation Research Proposal

Type of paper: Research Proposal

Topic: Market, Business, France, Products, Marketing, Customers, Company, Firm

Pages: 6

Words: 1650

Published: 2020/11/05

International Marketing: Vegemite in France

[Institution Title]


Market segmentation and international marketing mix play a critical role for every firm as far as expansion and growth is concerned. In the case of Mondelez Australia, there has been the growing need to expand to the most viable market. France is deemed as one of the most qualified market as far as business and marketing strategizing is concerned. International needs to segment the France market in different variables is provided in this paper. International marketing mix entails conducting a PEST analysis for France market hence providing more standardized marketing strategies. Integrating marketing mix variables in Mondelez International in relation to offering Vegemite products to the France Market, a competitive edge can be created. Nevertheless, given the performance of France and the environmental influence that affects business, it is also in France that the appropriate marketing approach will be proven highly successful.

There are several different types of market segmentation that could fit every companies. However, among these market segmentations one must extensively study the implications and the overall effects of the marketing strategy to promoting Vegemite in France. As far as market segmentation is concerned, according to a definition provided by Kotler, it refers to the act of defining heterogeneous markets it to small distinctive homogenous markets (2006). The segmentation of these heterogeneous markets to homogeneous market is based on the products or services offered by the firm. The products or service are normally divided into several segments holding some aspects of the market, the product, the consumers, and the firm’s objectives. According to Keller, (2006), market segmentation is a structured act of dividing an existing market to a distinct group of buyers in relation to their requirements if the products or services or the marketing mixes.
In the case of Mondelez International, particularly Vegemite there are in fact a number of reasons to segment the targeted France Market. The need to segment the market can help the firm achieve numerous market and consumer advantages. Essential reasons and attached benefits under which Mondelez International should segment their market in relation to introducing Vegemite product in the potential France Market are:

Better harmonization of the customer needs

Enhances profit for the firm
Creates essential opportunities for growth and development of the firm
Helps to retain more customers as the firm expands the market
Essential for target marketing communications
Creation of competitive advantages
Specifically, Mondelez should target the housewives and the independent dwellers like the young professionals and college students. Significantly, this covers to approximately 43% of the total buying community in France. In addition, the selected demographic possess the qualities that would initially be drawn to purchase the product. The increasing awareness of the market regarding the need for a healthy lifestyle is contributory to increasing the potential of a successful expansion in France. In an analysis made by Blythe in 2012, the author mentioned that consumers in France, particularly an approximation of 68% of consumers pays close attention to what is written on the food product package before buying. Hence, Vegemite can actually capitalize on this market share and aggressively address how the product is in fact advantageous for the consumers. However, there are still large figures thrown in reference to those who would find Vegemite another option and a prime commodity worthy of being purchased. Hence, Vegemite should be market aggressively to health enthusiast and major food franchisees and restaurateur for additional potential market.
Nonetheless, the selected target market is considered among the strongest stronghold of Vegemite in France considering the capacity and buying potential of the selected demography. In addition, it is also the section of the population who have a vast knowledge of health conditions and are growing into the healthy-lifestyle scheme being promoted by the government and the society.

International Marketing Mix

The notion attached to the international marketing mix is based on some of the undertakings that a firm should enact when launching a product into the foreign market. Thus, the firm uses the standard marketing mix towards suiting the country that the company seeks to carry out the business activities in the foreign market. The following analysis presents Mondelez International marketing mix in the international market in relation to introducing Vegemite product into France market.
2.1 Product Strategy
The concept reflects undertakings aimed at examining some of the aspects that are applicable to the foreign market by building on the features of the product in the local market. Vegemite has created a competitive advantage in the local market evident on the wide range of customers that the company enjoys in the regional market. The customers backgrounds, religion, levels of disposable income, and the buying behaviors. Vegemite product is likely to blend in the France’s market as it is synonymous to marmite in British, South Africa, and also New Zealand. The 10 million customers that the company serves depicts the competitive edge that the company has created in the market hence reflecting such entities in France Market.
The consumer loyalty created by the company creates an environment where competitors are unable to competitive competitively in the market. Furthermore, the legacy of Mondelez International in Australia as ranked an integral societal part by the use of a business model that has been consistent in delivering domestically essential products can be reflected in France Market hence indicating the essence of using this element to venture into French market. The high level of disposal income in every household at 29 322 EUR, a year reflects a significant entity in relation to creating a competitive edge of Vegemite product. Thus, reflecting such aspects of the firm’s operations is likely to create a competitive edge into the market hence product mix element being the most feasible.
2.2 Promotion
These reflect some of the international decisions that Mondelez has to enact towards ensuring they adapt some of the undertakings aimed at offering Vegemite product to the France Market. France uses different advertising approaches aimed at ensuring the intended message to the consumers is availed. However, despite the element being effective, a comparison with product mix elements positions the prior element as more feasible in the respective settings. Some of the largely used advertising tools are; Radio, TV, and also the Internet. The language, the political climate, religious practices, and the cultural attitudes play a critical role in the respective aspects. The official Language in France is French with other dialects being English. Thus, enacting promotional strategies entails correlating language and culture into the Mondelez International marketing strategy in France Market. For this reason, the food products industry is viewed as one of the most affected by social, cultural trends to a larger extent as compared to other industries (Edelstein, s2011). Through conducting a PEST analysis some of the factors likely to affect the firm can be evaluated. Thus, despite the element being essential, product mix elements offer more dynamic aspects that align with some of the significant features in the French market.
As far as promotion is concerned, Vegemite can take advantage of the growing popularity of electronic technology in France and the growing breakthroughs in e-commerce. Based on statistics, France is among the selected countries in Europe with a highly progressive technology that is being taken advantage of by the business sector. In fact according to the graph presented in Figure 1, e-Commerce has significantly helped many industries in France. It identifies that this technology has helped France raise sales through a well-managed online stores that offers various products and services.
Figure 1: Performance of Industries through E-Commerce.
2.3 Pricing
This forms a complex task on the international scale hence the need to embrace the product mix element. The cost of transportation, import duties or tariffs, exchange rates fluctuations, level of disposal incomes in the France Market, currency in the region performance, and also economic situations of the France market are dynamic hence forming a significant aspect in relation to enacting an effective pricing strategy. People in France tend to live healthy lifestyle with the social factors of the people staying in France indicating essence of enacting an effective pricing strategy. The disposable income in France is at 29 322 EUR a year reflecting the high percentage of people likely to afford the product. The changes in VAT in relation to the food industry in France are likely to affect the price of Vegemite product. However, incorporating these factors in proposed, price of food products that is applied to the vegemite sold per tin will thus increase from 7% to 9% this will negatively affect the consumers who buy the food product. Under the reduced rate, this will go down to 5% from 5.5% hence, attracting a large number of France consumers. On the other hand, reduced rate may lead to a decrease in the consumer price of the food products and thus lead to higher sales. Government laws also dictate the distribution and the production of the food products in France hence likely to affect the price of the Vegemite product. The depicted aspects indicate the essence of using product based element based on the competitive edge created with sensitivity in price element posing a challenge on applicability towards venturing into the selected market.
2.4 Place
The distribution aspect forms a critical element in relation to the marketing mix towards offering customers with the product in the right place and at the right time. The current France distribution on the markets entails goods being transported from the chain manufacturer to the wholesalers and onto the retailers where the consumers buy from. There are different parties used in France Market hence applying an effective transportation. However, current supply chain strategy embraced by the company in Vegemite distribution in Australian Market has been effective for years hence making it feasible in the France market. Thus, there is need to embrace the recommended product based aspect towards creating a competitive edge in the France market.


After reviewing the potentials of Vegemite in France, this paper propose that Mondelez International choose market penetration to be adapted to market their product in France. From the initial review and analysis of the external environment it revealed that French consumers have a well-defined consumer-based characteristics. The way to promote the product in France is to actually penetrate this sector and motivate them to see the benefits and rewards of product.


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