Petroliva Products and the UK Market

Résumé du document

Presentation of the case: It is Monday, 15th October 2007 and you have just completed three weeks of your studies in International Marketing Strategy (IMS) as part of your studies at Napier University Business School in Edinburgh. Your tutor, John Thomson, has been asked to engage the students in IMS in a six week study to critically analyze and evaluate the information in the Olive Oil case study with a view of recommending an international marketing entry strategy to launch the Petroliva products into the UK. The market entry strategy will be based on your own market research of the UK market using secondary information and data. Petroliva is a Spanish company established in the Olive Oil industry from the past 60 years. The range of products, such as Olive Oil, Extra Virgin Oil and Sunflower oil allows it to sell its products under the Petroliva brand name in twelve countries such as China, Japan, the US, Mexico, Brazil, Germany and others. Today, the firm wants to develop its activities in the UK.

Extraits

[...] Moreover, Petroliva can not focus itself only on the UK market. The firm is present on twelve's countries abroad and can not take risk either for the financial aspect or the firm itself. It had to stay flexible, reactive in all its foreign activities and protect its resources. To finished, the co-branding strategy allow to Petroliva to enter in all expectation of the whole of consumers. It is a good quality of Olive oil which comes from Mediterranean countries (premium price consumers) and shares its packaging with a supermarket brand of the market share). [...]

[...] In this market, olive oil demand would benefit from a dual positioning strategy: different categories of olive oil for different markets” (García Martínez et al., 2002). Decline in home cooking and baking At first, the UK population has a high dependency in butter and product using cake, biscuits (fat & oil). Moreover, the population in the UK works more and longer especially the women . This trend illustrate the fact that people want to spend less time doing cooking and use modern cookery technology as micro wall. [...]

[...] The main exporters are Italy and Spain with 76% of the total of UK importation. This trend illustrates the importance that take the Olive Oil in the UK market dominated by the top five of the UK supermarket (Appendix VI). In the UK, the Olive Oil is now recognizing as a product of quality thanks to its origin and benefice; and the effort of the manufacturers to build a lot on healthcare. The liquid Oil is the most important product in the UK through the Olive oil product (premium price and benefit on health). [...]

[...] However, non traditional olive oil producers such as Australia and the United States are interested in the UK market until 2000. The independent brands, earlier brand”, have more and more market share (sales and their products and brands are recognized by the consumers. Moreover, the top five supermarket sales represents 80% of the total Olive oil product and 50% of these products are selling on their own label. Thus, the access to the distribution is hard especially in the top five. [...]

[...] Its product is exported in 70 countries within UK market with Carbonell UK, subsidiary of Koipe SA. Carbonell has made many promotional strategies to promote Spanish olive oil in the UK using recipe books with packaging gem lettuces. The use of this traditional Mediterranean format has worked on the UK consumers. The supermarket own-label has made a strong progress in the olive oil market with an evolution of in 2 years. Distribution: Grocery multiples dominate the market: the majority of edible Olive oil is launching the biggest number product in the market. [...]