UNIVERSITY OF WESTMINSTER

ASPECTS OF INTERNATIONAL MARKETING

LONDON CRISP COMPANY:

MARKETING EXPORT PLAN TO ITALY

Course Leader: Mr. Richard West

Sumant Khetan – w1672858

Yash Agarwal – w1684422
Rishabh Goyal – w1667733
Sabari Ravi – w1670309
Ganesh Kotappa Manjunatha – w1670094
Yash Agrawal – w1678527
 TABLE OF CONTENTS
1. EXECUTIVE SUMMARY………………………………………………………………. 3

2. GLOBAL MARKET OVERVIEW……………………………………………………… 4

3. UK MARKET OVERVIEW……………………………………………………………... 5

4. COMPANY BACKGROUND……………………………………………………........... 6

5. SITUATIONAL ANALYSIS – SWOT…………………………………………….……. 7

6. PEST ANALYSIS (UK MARKET) ………………………………………………….…. 8

7. CAGE ANALYSIS………………………………………………………………….…… 9

8. CHOICE OF COUNTRY – ITALY……………………………………………………. 10

9. PEST ANALYSIS (ITALIAN MARKET) ……………………………………...…...… 11

10. PORTER’S 5 FORCES………………………………………………………………… 12

11. MARKET OPPORTUNITIES ……………………………………………………….… 13

12. MARKET ENTRY STRATEGY…………………………………………………….… 14

13. MARKET SEGMENTATION……………………………………………………...…...15

14. BRANDING – BRAND ONION………………………………………………………...16

15. PERCEPTUAL MAPPING……………………………………………………………...17

16. MARKETING MIX – 4 P’s………………………………………………………...……18

17. CONCLUSION…………………………………………………………………….……21

18. BIBLIOGRAPHY………………………………………………………………….……22

2
 EXECUTIVE SUMMARY

London Crisp Company was formed in 2015 by Tom Lock for all the followers of
London. The CEO, Tom Lock understood the drawbacks in the crisps market and
launched a new brand specially targeting the people of London. Its basic strategy
after the launch of the crisps was a tie up with Fuller’s Brewery to make available
the crisps in the Fuller’s Pubs around London. London Crisp Co. also supplies its
crisps to some airlines to provide the crisps to their customers as a snack.
After a few researches and a basic study using the CAGE ANALYSIS, the potential
country that we have decided to export the London Crisp Co.’s product is Italy.
Further, a detailed study about the various influencing factors either internal or
external, a supportive situation for the launch of London Crisp Co. in Italy will be
done with the use of SWOT and PEST analysis.
We will also explain the marketing mix or the 4 P’s i.e. Product, Price, Place and
Promotion for the Italian Market.
At last, we will end our report with the conclusions and other Marketing Techniques
to enter the Italian Market.

3
 GLOBAL MARKET OVERVIEW

Potato chips and crisps are a standout amongst the most frequent snack consumed
around the world. From its unintentional birth in 1853, the potato chips market has
grown with time. Throughout the years, the potato crisps market has seen generous
development, transforming it into a multibillion-dollar industry. Nevertheless, the
potato crisps are showcasing a move in the utilization pattern, a variance in cost of
raw materials, and serious competition from its substitutes. Manufacturers in the
market are relied upon to meet accomplishment by creating new products and
flavours and rapidly modifying the ingredients of the existing items to take care of
changes in customer demand. The creation of new flavours to meet taste preferences
of different buyers is the way to having a market share in the worldwide potato crisps
market. (Reportlinker, 2017)

Buyers are looking for a healthier snack which they can enjoy during the day in their
busy lifestyle. Consumers prefer smaller packs of crisps because they are easy and
convenient to carry. Crisps are the most affordable and popular snack demanded by
all the age groups, especially the youth.
Among all age groups, premium product potato chips are famous because of its
cheaper price and easy affordability. The potato chips are mainly consumed by the
young growing generation i.e. below 15 years. Growth of emerging markets and
value addition are also predictable to propel the requirement of this market. Global
potato chips market has grown at a Compound Average Growth Rate of around 4%
during 2009-2016 and reached a market value worth US $26 billion according to the
IMARC Group. (Reportlinker, 2017)
The segmentation of the Global Crisp Market varies according to various features.
According to the Geographic features, the crisps market is segmented based on –
i. North America
ii. Europe
iii. Asia
iv. Middle East and Africa
(TransparencyMarketResearch, 2018)

4
 UK MARKET OVERVIEW

The advancement in the lifestyle of the consumers are pushing them to skip dinners
and get snacks to go with the pace, which is an incredible news for the snacks
industry. Britishers are evading crisps to bring down the calorie and give out
nutritious choices to the consumers.
According to Andy Verney, the head of impulse at Kettle Foods, 42% of the
households in the UK had purchased healthier crisps and snacks in the last year and
60% of the food shoppers preferred healthy food options.
“Wellbeing is a mega-trend that is changing consumers’ eating habits,” says Nash.
This change in the eating habits of the consumers has enabled large business houses
of the Crisps Market to change their traditional deep-fried crisps to baked crisps to
keep stable the market share that they have around the globe. (Rowland, 2016)

(Statista, 2018)

5
 COMPANY BACKGROUND

The London Crisp Co. was established in 2015. The CEO of the organisation, Tim
Lock, had understood the loophole in the market for a snack connecting to the
London city. In the long run, the organization has aimed to export their products to
the rest of the world. (Crunchbase, 2018)
The initial strategy used by the company was a tie up with the Fuller’s Brewery to
distribute their products to various pubs around London. Also, the company had tied
up with a third party to take hold of the stocks, process their orders, etc. The third
party was also responsible for the invoicing and collection of cash. The main reason
of the tie up was to reduce the operating cost and make use of the expertise skills of
the workforce with the third party. (Seedrs, 2018)

Source: (Seedrs, 2018)

6
 SITUATIONAL ANALYSIS – SWOT

STRENGTHS WEAKNESS
1. Local Enterprise - Better Knowledge about 1. Lack of competitiveness with global
the Consumer Preference competitors
2. Exclusivity with Fuller Brewery 2. Limited Availability
3. Caters to various Airline Companies 3. Limited Budget

OPPORTUNITIES
SWOT THREATS
1. Decline in the value of British Pounds will 1. Low Barriers to Entry of new competitors in
enhance exports. the Market.
2. Healthier options such as Baked Crisps 2. Increase in Health Awareness amongst the
instead of fried. Population

London Crisp Co. has an advantage over London Market because it a local enterprise
and they have a better understanding about the taste and preference of the consumers.
London Crisp Co.’s strategy where the company has tied up with Fuller’s Brewery
to supply its products over various bars and cafés around London. The company also
supplies its products to various airlines where they serve the crisps to the passengers
which helps in a better promotion of the product.
London Crisp Co. can also take advantage of the devaluation of the British Pounds
to enhance their exports.

London Crisp Co. is a small enterprise with limited availability of resources and
funds which highlights its incapability to face global competition with the global
market leaders.
The manufacturing of Crisps is highly competitive as new enterprises can enter the
market easily. Also, an increase in the awareness of healthy products amongst the
youth has become a challenge for the London Crisp Company to survive in the
market.

7
 PEST ANALYSIS (UK MARKET)

• Crisp Production is being largely affected because

of the labour shortage caused because of Brexit.
POLITICAL • Government has incorporated a 20% VAT on
Crisps which has lead towards increase in the cost
of the crisps.
• The prices of crisps are expected to increase by
10% because of Brexit.
• Bank of England may increase rate of interest for
the first time in 10 years and bank’s MPC i.e.,
ECONOMICAL Monetary Policy Committee have kept the rate at
0.5% since 5th March 2009, to increase spending
and decrease saving.
• Since, there has been an increase in the minimum
wages rate in UK, it will enhance the purchasing
power of all the class of the consumers.
• Over the past 10 years, an increasing number of
individuals are choosing to follow healthy diet
SOCIAL programmes.
• The crisps market is growing years by years
because of increase in the demand of the crisps
industry globally.
• IT is the fastest growing sectors in the UK.
TECHNOLOGICAL • Increase in the use of Internet.
• Advancements and changes in the Promotional
Methods and Techniques

8
 CAGE ANALYSIS

COUNTRIES CULTURAL ADMINISTRATIVE GEOGRAPHICAL ECONOMIC

DISTANCE DISTANCE DISTANCE DISTANCE
Diverse Languages (23 Common Law Physical Distance – 4758 kms Specialized Labour
official languages);
English is commonly Political Friendship Connectivity – Seaways and Labour Intensive
spoken Airways
(NewWorldEncyclopedia, Lower Long Run Risk Snack Market
2017) Turnover – $ 4.59
INDIA Common Colonizer Millions
More driven towards
Western Culture Forecasted Annual
Growth – 11.8%
Traditional Snacks are
more preferred such as
Bhujia, Namkeen, etc.

ITALY Different Language – Absence of shared monetary or Physical Distance – 2426 kms Difference in cost and
Italian political association. quality of Natural
Connectivity – Roadways, Resources,
More attached towards the Railways, Airways and Infrastructure, Human
Italian Culture Waterways Resource.

Lack of connective ethnic (SaylorAcademy, 2016)

or social network

Common Language – Different Currency – AUD Dollars Physical Distance – 15181 kms Snack Market
English Turnover - $ 1424
AUSTRALIA Connectivity – Seaways and Millions
Reason for Snacking: Airways
Finding Balanced Diet Forecasted Annual
with Healthy Snacks Availability of Natural Growth – 4.7%
Resources

Common Language – Uncertain Trade between UK and Physical Distance – 6827 kms Snack Market
English US Turnover –
USA Connectivity – Seaways and
Similar Culture Different Taxes and Import Duties Airways Forecasted Annual
Growth – 2.1%
Different Government Regulations (Statista, 2018)
and Policies

Different Currency – US Dollars

(Ghemawat, 2013)
The consequence of the CAGE investigation exhibits Italy as the most alluring
business sector for London Crisps Company. There are no dialect hindrances
alongside a typical lawful framework and the two societies are comparative as per
Hofstede's measurements. These similitudes require less adjustment procedure of the
product in the picked nation than in alternate choices, which implies simpler fare
design and less cost for the organization. Additionally, the Italy exhibits high GDP
per capita which is a positive sign for the utilization of premium items like London
Crisps Company in the nation. Ultimately, Italy is a potential market for the
organization because there is a determined yearly increment of 6% in the utilization
of snacks by millennial - the intended interest group of the London Crisps Company.

9
CHOICE OF COUNTRY –
ITALY

10
 PEST ANALYSIS (ITALIAN MARKET)
Political
• In European Union (EU) one of the establishing member country is Italy.
• Among all the European countries Italy has the least political threat. (Gadd, 2017)
• Government taxation will affect the business firms directly and decrease the sales
of the product.
• Business firm depends on the government policies to trade with other countries,
where barriers may be favourable and unfavourable. (RitikaYadav, 2018)

Economic
• Business organisation have a close relation with economic growth where both are
simultaneously increased or decreased.
• Inflation Rate effects the growth and failure.
• Cost of Products is dependent on Inflation Rate which simultaneously affects the
business firm.
• The main factor effecting the organisation is national income of the country.

(RitikaYadav, 2018)

Social
• The consumer must be educated to differentiate the products with other brands.
• The purchasing power of each customer varies according to the lifestyle they live.
• Business Firm must differentiate the market according to the consumer profile in different
sectors.

(RitikaYadav, 2018)

Technological
• Increase in production level, decrease in input and maximum profit are achievable
from instalment of new technology.
• Research and development department plays a vital role for the organisation to
sustain in the market.
• Organisation must have better quality of goods production and installed latest
technologies to stay competitive in the market.

(RitikaYadav, 2018)

11
PORTER’S 5 FORCES

12
 MARKET OPPORTUNITIES

Italians are very close to their culture and practices. Eating crisps is turning into a piece of their
way of life, which is same as of Britain. In Italy, crisps are normally served during late evenings
in the bars and are an absolute necessity for pre-supper at home.
Italy was not picked randomly for the potential development of London Crisp Co. Salty bites are
the second most prominent nibble with its consumption levels developing each year. As indicated
by various investigations directed upon the dietary patterns of Italians, it was discovered that most
of the young incline towards eating crisps while drinking, while watching films, and hanging with
loved ones. (ExpatFocus, 2018)
The Italian crisp market is worth of GBP1077 million. Almost 53% Italians eat snacks once every
day and 39% of adults consume snack more than once.
Another key pointer is that 61% of Italian customers in 2017 endeavored to nibble healthier
contrasted with a year ago. The solid idea of London Crisps could appear to be exceptionally
appealing on the nibbling inclinations of the Italians.
Besides crisps stands second most devoured nibble in Italy.
Every one of these highlights add to the conclusion that the Italy advertise is great for the dispatch
of the London Crisp Co. The developing levels on the fame of crisps and in addition the colossal
size of the Italian market can be the essential explanations behind an effective extension.

Italy's anti-trust body on fined the biggest potato crisps brand a sum of more than €1 million for
falsely recommending their deep fried and salty crisps had some healthy or high-quality products.
The four brands hit with the fines by rivalry and markets body AGCM were San Carlo (€350,000),
Amica Chips (€300,000), Pata (€250,000) and Ica (€150,000). (TheLocalItaly, 2015)

13
 MARKET ENTRY STRATEGY

Direct Exporting and Strategic Alliance

Direct Exporting is offering straightforwardly into the target market utilizing our own resources.
Numerous organizations, once they have set up a business program attract the agents as well as
the wholesalers to represent them in that market. Agents and Distributors work intimately with the
business enterprise in representing their interests. They turn into the face of the organization and
in this way, it is imperative that your selection of agents and wholesalers is handled with like the
procurement of a key staff person. (Stenzel, 2018) A strategic alliance is a business course of action
in which at least two firms collaborate for their shared advantage. Firms may join their endeavors
for an assortment of purposes including, however not constrained to, sharing learning, mastery,
and costs and in addition to pick up section to new markets or to pick up an upper hand in one.
Further, production of a vital union may transform genuine or potential contenders into
accomplices towards a shared objective. Use of strategic alliances has turned into a noteworthy
apparatus for organizations that are internationalizing their activities. (TradeStart, 2018)

How we use these tools to enter the Italian market?

The packages are ready in the manufacturing unit in London, UK and then is exported to Italy
through means of transport such as Railways and Shipping. The goods are then transported to the
3rd party firm with whom we are in alliance with at their warehouse where they handle our back-
office tasks. Not only this they take care of our sales and distribution and cash collection. All our
channels in our distribution network get their supply for this 3 rd party. Our crisps are finally
available to our consumers.

14
 MARKET SEGMENTATION
DEMOGRAPHIC
• Target Customers - 18 - 55 years
• 96% of the population are Italians
• For families where the head was aged between
55 and 64 years, the Annual Net Income was the
highest with over 36.5k euros.
PSYCHOGRAPHIC
• Independent lifestyle and they earn their own
money.
• Italians prefer to try new flavours
• Italians are more health conscious and prefer
healthy food habits.
GEOGRAPHIC
• People of Rome and Milan prefer both online and
offline because Rome has a major tourist attraction and
Milan is a IT hub.
• In Napoli, the people prefer offline channels because of
less population as compared to the other major cities of
Italy.
BEHAVIOURAL
• Italians prefer eating together with the family
• Italians prefer to go to supermarket for their
daily purchases.
• Packaged foods are marketed as traditional, local
and part of the culture.
• People in Milan prefer consuming snacks as a
part of their break during their work hours.
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BRANDING – BRAND ONION

BRAND ESSENCE: The essence of our brand is OVEN BAKED POTATO CRISP
in ITALY.

BRAND VALUE AND PERSONALITY: We believe we are UNIQUE and

CREATIVE in the approach we are out in the market with.

EMOTIONAL BENEFITS: Having such delicious and mouth-watering flavours

we believe consumers shall relate to the Italian taste.

FUNCTIONAL BENEFITS: Our crisps help you to stay healthier without killing
your cravings and it also connects to the consumers so fast that it gives a unique
customer experience.

BRAND’S PHYSICAL ATTRIBUTES: Following are the brand’s physical

attributes such as our brand is approachable, delicious, on the go snacking, easy to
consume and very attractive.

16
 PERCEPTUAL MAPPING

The London Crisp Co. falls under the High Quality and High Price Segment
because of the premium quality product offered by them. Unlike its competitor
Amica Chips which are highly priced but are low in quality.

17
MARKETING MIX

PRODUCT

For the Italian Market, London Crisp Co. will have to redesign their product in accordance to the
cultural and taste preference of the local population.

The new flavours that we propose to suggest are: Oregano & Thyme, Paprika and Ranch.

We suggest the above flavours to be introduced in the Italian Market because those are the flavours
that the Italians prefer regularly. According to our research these are the flavours the Italians
consume on a regular basis and have the most likeliness to succeed in their market.

Further, the flavours that London Crisp Co. offers in London can also be offered in Italy to have a
wider range and variety of products which would attract a larger target market and leave a positive
impression on them. (SpicesInc, 2018)

The USP of our products and brand will be that our products will have low fat contains. It will
target the customers who want to enjoy crisps, but at the same time want to live a healthier life.

Below, you can see the packaging we are proposing to be made available in the Italian market.

18
 PLACE
Initially, we will target the cities of Roma, Milano and Napoli because of their tourist attraction
and major population as compared to the other smaller cities.

The target market of London Crisp Co. in the above cities should be super markets, traditional
grocery stores and convenient stores because the Italians prefer more of traditional shopping as
compared to the modern techniques of shopping.

PRICE

The average price of the crisps offered by the competitors of London Crisp Co. in Italy are a price
of £1.30 but we suggest London Crisp Co. to sell their products with an average price of £1.60 in
Italy because we are lunching the products in the premium category.

At the initial stages, the cost of transportation of goods from UK to Italy will be more and thus
company might have slimmer profits. With time, as the company reaches the Growth and Peak
Stage of the Product Life Cycle, profits will increase.

19
 PROMOTION
• Product Combination – Combination of smaller packs with different flavours to be sold
as one in a family pack which will make all the flavours available to the target market
which will help to enhance all the flavours and not only one. Apart from this, smaller packs
are more convenient for the consumers to carry along.

• Promoting Marketing Campaigns & Cultural Events – London Crisp Co. will have to
sponsor various cultural events to have an impact on the local people and organise
marketing campaigns so that they could interact with the target market and promoting the
brand through word-of-mouth.

• Advertisements on Television, Magazines and Newspapers

• Social Media Campaigns – Social Media is a trend in today’s world. 73% of the youth
today use social media platforms to have a social life around the globe. Various Interactive
Campaigns on Facebook, Instagram, Snapchat and Twitter can attract new target
consumers towards the brand because of social media interaction. (Smith, 2018)

• Free Sampling

• Celebrity Endorsements – Italian trending celebrity should be hired to endorse the

brand to achieve the target.

20
CONCLUSION
To finish up, the worldwide snacking industry and the dietary patterns of individuals
around the globe has changed significantly in the previous years. Competition from
globe players postures new difficulties for new businesses. The principle qualities
of The London Crisp Company in moving to an alternate nation are: adjusting to
various economic situations and building up and advancing the brand In Italian
bistros. London Crisp Company has great chances to extend its market to Italy.
Italian culture sees UK brands as premium products which enable British brands to
adjust and be acknowledged in the market. Because of the high expectations for
everyday comforts and the monetary security of Italy, it makes it simple for The
London Crisp Company penetration.

Besides, by adjusting the packaging to the theme of Italy, the organization will have
the capacity to present the crisps with another look and feel of the brand stressing
the most alluring spots around London that are known in universal markets.

21
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