Overseas Market Analysis: Thomas Foods International

2.0 International Marketing Mix Strategy

Thomas Food International is an Australian-based firm that has operations in several international markets from all over the world. It operates within the consumer staples sector, in the consumer staple products industry and the food sub-industry. The following detailed analysis looks at marketing mix (product, price, place, and promotion) and explains the marketing strategies that the company employs. The analysis will also provide a recommendation regarding market feasibility for the company.

2.1 Product

Thomas Foods International has a wide array of products ranging from variant meat varieties to different types of seafood. The company currently retails different meat products that are value-added. These products include minced and diced meat product, rissoles, meatballs, and sausages. The company also tailors different products to the needs of its markets and consumers. Other products that are available for sale in different markets include boneless beef, grass-fed beef, veal, lamb, goats, and mutton, as well as other products (Thomas Foods International, 2021). The company has also diversified its product range to include special soaps, cosmetics, and medical capsules related to different consumer needs. Over the recent years, the food industry has been hit by a variety of health-related issues concerning the use of processes and products that do not contribute to sustainable food production processes. The use of genetically modified products, for example, has led to a raging debate on whether these products are safe for human consumption. In response, Thomas Foods International has created a new line of grain-fed beef, free of GMO and similar products, to substitute the expensive grass-fed product line and to provide an alternative to its core products. As one of the largest meat producers in the world, Thomas Foods International has products tailored for different markets to ensure that it caters for the needs of all of its customers.

2.2 Place (Market Entry & Distribution)

For Thomas Foods International, place in its marketing mix refers to where the organization’s products are offered and how they are availed to consumers. Thomas Foods International has, over the years, developed a significantly wide distribution network (Thomas Foods International, 2021), with an intensive distribution strategy as well. Therefore, the company has built a strong reputation and brand as an organization with the ability to deliver high quality seafood and eat products as well as other types of fresh produce to more than 85 countries globally. The main distribution centres are set up in Australia, in the USA, Europe, China, and in Japan. In the Netherlands, Thomas Foods International partners with Luiten Food to provide a range of products to the European market. The same strategy is applied in the US and in Japan. The idea for the company is to have products available in almost every major market in the world. By partnering with other leading brands from different markets, Thomas Foods International is able to avail products to different markets as well as using partnerships as a market entry strategy into international locations. In other markets such as in Japan, Shanghai, and the US, Thomas Foods International uses a direct entry method, supplying its own products through retail and wholesale options.

2.3 Promotion

Promotion is defined by Tong, Luo, & Xu (2020) as the methodology used by a company to communicate to the consumers and other stakeholders. Thomas Foods International uses a variety of approaches to communicate to customers in different markets. Additionally, different media types are used for advertising needs and campaigns. The Internet, social media, digital marketing, television, and newspapers are all used by the company to target different customers in different markets. For example, the company uses print media to offer special incentives to retailers and distributors. Thomas Foods International also sponsors various events, projects, and organizations, both for promotional purposes and for corporate social responsibility.

2.4 Price

Business marketers have a number of pricing policies and strategies available (Draganska & Jain, 2006). For example, companies can employ discrimination pricing, loss leader pricing, competitor pricing, value pricing, and cost-plus pricing (Johansson et al., 2012). Depending on the market, market size, and market conditions, Thomas Foods International applies different pricing strategies. For example, it prices some products competitively in its Australian and American markets to compete more effectively. This is a competitor pricing approach that also works well for its seafood market in Japan. The company also applies value pricing to ensure that the products are within the reach of every average customer. Additionally, the company is careful not to reduce prices to a point of giving an impression of low quality goods. Additionally, discriminatory pricing is applied in various markets for some special category products such as seafood and tailor-made products. Prices are also different from one country to the other and amongst cities depending on market conditions. I areas where competition is high, such as in Australia and in the USA, the prices are set up in a competitive pricing, to not only penetrate the market but also to ensure that the target market is able to afford different products.

2.5 Recommendation of Market Feasibility

Thomas Foods International has the ability to occupy more markets and to penetrate using various strategies. In the place factor, the strategy that Thomas Foods International currently uses is effective. However, it is recommended that the company uses a dual strategy involving partnerships with domestic brands and acquiring new ones to take on their already established markets. In terms of products, the company should focus on including more varieties to remain competitive. Currently, the product offering opens the company up for competition and does not assure it of market dominance. In promotion, the current strategies have been effective in reaching consumers and to communicate with major stakeholders. However, a majority of firms are moving towards more reliance on social media marketing, an area that Thomas Foods International should exploit fully to gain more footing in the newer European, Japanese, and Chinese markets. In terms of pricing, the approach used is effective. It is recommended that the three pricing strategies (discriminatory, competitive, and value pricing) be used in all future markets depending on relevance to the market and product.

ReferencesDraganska, M., & Jain, D. C. (2006). Consumer preferences and product-line pricing

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Johansson, M., Hallberg, N., Hinterhuber, A., Zbaracki, M., & Liozu, S. (2012). Pricing

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Thomas Foods International. (2021). Available at http://thomasfoods.com/Tong, S., Luo, X., & Xu, B. (2020). Personalized mobile marketing strategies. Journal

of the Academy of Marketing Science, 48(1), 64-78.