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International Marketing Plan

Film & Animation

Introduction

Introduction

Hello, today my team and I will present to you our international marketing plan for Loop Mission. Loop Mission started in 2016 with a simple idea: using food waste to make juice. After entering the cold-pressed juice industry, Loop expanded to smoothies, gin, soap, beer, and sparkling water. The three founders are Frederick Monet, a fresh produce importer, Julie Patrasuni, a marketing and sustainability expert, and David Cote, an entrepreneur. By 2020, sales reached 10 million dollars with over 30 employees. Loop products are sold by 40 brokers all over Canada but primarily in Quebec. Even with tremendous sales in Canada, one question arises: Is it a good idea to expand to other countries?

The Importance of an International Marketing Plan

There are many obstacles that Loop may encounter during potential expansion, which is why it is crucial to create an international marketing plan. Products may need to adapt or standardize when entering different countries due to cultural, administrative, economic, and technological differences. For Loop, procurement, packaging, and food waste are all different from place to place, making market research and analysis critical.

Choosing the First Product and Market

Since cold-pressed juice first launched the company, it would make sense to start with that product abroad. Between the choices of entering the market in the United States, France, or Australia, we recommend starting in the United States. As for the entry mode, we evaluated the option of a joint venture, a greenfield investment, or franchising, and we recommend a greenfield investment. Finally, we chose Generation Z as the target segment.

Situational Analysis

Historical Timeline

  • 2016: Loop founded and started production with a subcontractor.
  • Quickly bought their own factory and expanded their product line.
  • 2018: Started looking at markets outside Quebec.
  • 2020: Expanded to all of Canada, explored the California market, but returned home due to the pandemic.

Loop Mission describes itself as a circular economy project aiming to end food waste. They want people to see that sustainability can be a revenue generator and create an ecosystem of partners. Current trends show a growing concern for health and sustainability, and a demand for juices with less sugar and real food. Consumers are looking for brands with social responsibility and a positive environmental impact.

Competitive Advantage

Loop gets its biggest competitive advantage from its outbound logistics and procurement, allowing them to sell juice at a lower price due to low-cost produce. The firm's infrastructure focused on circular economy principles and its effective marketing resonate well with customers, differentiating Loop from other brands.

Target Market Analysis

Market Size and Distribution

The United States represents the biggest market in terms of volume and sales value. The most common distribution channels for juice are supermarkets and hypermarkets in the US, France, and Australia. Juice consumers in these countries look for 100% fruit or vegetable juices and are concerned about sugar, immune system boosts, and ingredient origin.

Market Comparison

  • United States:
    • Largest consumer and juice market.
    • Co-founders have previous market penetration (with Rise Kombucha).
    • Cons: High competition and movement towards buying local.
  • France:
    • Same language (French), growing environmental concerns.
    • Cons: Anti-sugar trend and fewer health concerns.
  • Australia:
    • Great food production market.
    • Cons: Distance from Canada and labor shortage.

Metrics and Decision Making

Based on metrics such as food waste, market growth potential, and cost, the United States is the clear winner.

Target Segment

Evaluating Millennials, Seniors, and Gen Z across aspects like intense physical activity, nutrition label attention, brand interaction, and online purchase intention, Gen Z emerged as the recommended target due to their alignment with Loop's mission and easier reach.

Entry Mode

A greenfield investment was chosen over franchising or a joint venture due to Loop's preference for full control of operations and higher profit potential.

Tactical Decisions

We recommend standardizing certain aspects like branding and social media advertising while adapting others such as packaging to meet US regulations. Specifically, we propose new flavors like "California Palm Tree" and "California Sunset" using local ingredients.

Pricing and Promotion

Regarding pricing, we standardize to US levels to penetrate the market with low prices and high quality. Promotion will involve trade shows like the Natural Product Expo and social media platforms, adapted to include California-specific visuals and themes.

Distribution

For the initial stages, distribution will focus on partnering with retailers like Whole Foods and Safeway, followed by expanding e-commerce. The supply chain setup will prioritize efficiency and minimizing perishability.

Timetable for Expansion

  • 2021: Complete international market research.
  • 2022 (first half): Adapt juice products for the US market.
  • 2022 (second half): Begin distribution through selected retailers.
  • 2023: Expand retail distribution and introduce new product lines.
  • 2024: Expand across the US with all product lines.

Conclusion

Based on our research, Loop Mission should enter the US market, specifically California, through a greenfield investment, targeting Gen Z. The expansion strategy includes adapting products and promotions to local preferences while leveraging Loop's strong brand image and mission.

Keywords

  • Loop Mission
  • International Marketing Plan
  • Cold-Pressed Juice
  • Greenfield Investment
  • United States Expansion
  • Generation Z
  • Circular Economy
  • Sustainability
  • Food Waste
  • Health Trends

FAQ

Q: Why choose the United States for Loop Mission's international expansion? A: The United States is the largest consumer and juice market globally. Loop founders have previous experience in this market, and California offers abundant food waste essential for production.

Q: What entry mode is recommended? A: We recommend a greenfield investment due to Loop's preference for full control and the higher profit potential it offers.

Q: Who is the target demographic for this expansion? A: Generation Z, as they are environmentally conscious, highly active on social media, and their values align with Loop's mission.

Q: How will Loop adapt its products for the US market? A: Loop will modify packaging to meet US regulations, introduce flavors with local ingredients, and adapt marketing strategies to resonate with Californian consumers.

Q: Which retailers will Loop partner with initially? A: Whole Foods and Safeway, as they align with Loop's healthy and sustainable brand image.

Q: What is the projected timeline for this expansion? A: The research phase will conclude in 2021, with product adaptation and initial distribution beginning in 2022. Market expansion and new product introductions will follow through 2023 and 2024.