Clastify logo
Clastify logo
Subjects
Features
Review
HOT
Tutoring

4.6 International marketing

Practice exam-style IB Business and Management questions for International marketing, aligned with the syllabus and grouped by topic.

Verified by Azur
Verified by Azur
Paper
Difficulty
Status
Level
Question 1
HL • Paper 1
Easy
Calculator Permitted
HL • Paper 1
Easy
Calculator Permitted

Kiro Organics (KO) is a small cosmetics manufacturer based in Portugal. KO currently sells only in Portugal but is planning to sell its existing skincare products to customers in Spain and Morocco. The marketing director says KO must develop an international marketing approach rather than simply translate its current advertisements.

A

Define the term international marketing.

[2]
Question 2
HL • Paper 1
Easy
Calculator Permitted
HL • Paper 1
Easy
Calculator Permitted

BeanTrail (BT) is a chain of coffee shops in Canada. Domestic sales growth has slowed, so BT is considering opening its first stores in Chile. Market research suggests that urban Chilean consumers are increasingly interested in premium coffee, but BT has little knowledge of local suppliers and consumer habits.

A

Outline one opportunity and one threat for BT of entering the Chilean market.

[4]
Question 3
HL • Paper 1
Easy
Calculator Permitted
HL • Paper 1
Easy
Calculator Permitted

Lumo Bikes (LB), a Danish manufacturer of electric bicycles, wants to enter Indonesia. Indonesian regulations on transport products are complex and many customers buy bicycles through local dealers. LB is considering an international joint venture with a well-established Indonesian distributor.

A

Explain one reason why an international joint venture may be a suitable market entry method for LB.

[2]
Question 4
HL • Paper 1
Easy
Calculator Permitted
HL • Paper 1
Easy
Calculator Permitted

NoriTech (NT) manufactures smart kitchen appliances in Norway and exports them to Brazil through a local retailer. The Brazilian government is considering increasing import tariffs on electrical appliances to support domestic producers.

A

Describe one threat posed by protectionism to NT.

[2]

Build a Practice Exam — Business and Management HL

Test your knowledge with a custom paper containing questions from selected topics.

Practice exam question preview
Practice exams dashboard preview
Question 5
HL • Paper 1
Medium
Calculator Permitted
HL • Paper 1
Medium
Calculator Permitted

Solace Hotels (SH) operates boutique hotels in Greece. SH plans to open a hotel in Japan using the same brand name and basic service concept. However, its marketing manager is considering adapting parts of the seven Ps, especially promotion, people, processes and physical evidence.

A

Explain two reasons why SH may need to adapt its marketing mix for the Japanese market.

[4]
Question 6
HL • Paper 1
Medium
Calculator Permitted
HL • Paper 1
Medium
Calculator Permitted

VelaSkin (VS) is an Australian business selling vegan skincare products. VS has received many enquiries from customers in Singapore and the United Arab Emirates through social media. It is considering entering these markets first through e-commerce rather than opening overseas stores.

A

Explain two advantages to VS of using e-commerce as an international market entry method.

[4]
Question 7
HL • Paper 2
Medium
Calculator Permitted
HL • Paper 2
Medium
Calculator Permitted

Luma Bikes (LB), a UK manufacturer of folding bicycles, has started direct exporting to Brazil as part of its international marketing strategy. LB invoices the Brazilian distributor in Brazilian real (BRL), so its profit in pounds sterling (GBP) is affected by exchange rate changes.

Table 1: Data for one bicycle exported to Brazil

Item

Figure

Retail price in Brazil

7200 BRL

Distributor margin

20% of retail price

Variable cost and shipping per bicycle

750 GBP

Planned exchange rate

1 GBP = 6.00 BRL

Actual exchange rate

1 GBP = 5.40 BRL

A

Calculate LB's actual profit per bicycle exported to Brazil. Show all your working.

[3]
B

Comment on the impact of the exchange rate change on LB's international marketing opportunity in Brazil.

[2]
Question 8
HL • Paper 2
Medium
Calculator Permitted
HL • Paper 2
Medium
Calculator Permitted

PureSip (PS), an Irish producer of flavoured water, plans to enter Canada by exporting. Canadian regulations require new bilingual packaging and a tariff is charged on imported drinks. PS wants to know whether protectionism and adaptation costs will reduce the attractiveness of the market.

Table 2: Forecast data for one bottle exported to Canada

Item

Figure (EUR or %)

Selling price to Canadian retailers

3.10 EUR

Production cost per bottle

1.80 EUR

Shipping cost per bottle

0.25 EUR

Tariff rate on production plus shipping cost

10%

Bilingual packaging adaptation cost per bottle

0.15 EUR

Target contribution margin

30%

A

Calculate PS's contribution per bottle after the tariff and packaging adaptation cost. Show all your working.

[3]
B

Comment on whether the Canadian market meets PS's target contribution margin.

[2]

Build a Practice Exam — Business and Management HL

Test your knowledge with a custom paper containing questions from selected topics.

Practice exam question preview
Practice exams dashboard preview
Question 9
HL • Paper 2
Medium
Calculator Permitted
HL • Paper 2
Medium
Calculator Permitted

SolarPack (SP), a Danish manufacturer of reusable food containers, is considering FDI by opening a sales subsidiary and warehouse in Country M. The marketing director is concerned about political risk, including possible import restrictions and civil unrest.

Table 5: Forecast annual profit outcomes for the proposed subsidiary

ScenarioProbabilityAnnual profit or loss
Strong growth and stable regulation25%1200000 EUR profit
Moderate sales with minor delays55%600000 EUR profit
Political unrest and import restrictions20%800000 EUR loss
Initial investment in subsidiary and warehouse100%4000000 EUR

Forecast scenario

Probability (%)

Annual profit/loss (€)

One-off initial investment (€)

Strong growth and stable regulation

25%

1,200,000

—

Moderate sales with minor delays

55%

600,000

—

Political unrest and import restrictions

20%

-800,000

—

Initial investment in subsidiary and warehouse

100%

—

4,000,000

A

Calculate the expected annual profit from the proposed subsidiary. Show all your working.

[3]
B

Comment on one threat of using FDI for SP's international marketing in Country M.

[1]
Question 10
HL • Paper 2
Medium
Calculator Permitted
HL • Paper 2
Medium
Calculator Permitted

PixelQuest (PQ), a mobile gaming business from Australia, is launching in South Korea. PQ is choosing between a standardized global advertising campaign and a localized campaign using Korean influencers and culturally adapted messages.

Table 7: Forecast results of two promotional strategies in South Korea

Item

Standardized campaign

Localized campaign

Campaign cost (AUD)

70000

110000

Forecast new users

50000

70000

Average revenue per user in first month (AUD)

2.20

2.60

Variable server and support cost per user (AUD)

0.40

0.50

A

Calculate the forecast first-month marketing profit for each campaign. Show all your working.

[4]
B

Comment on the financial impact of adapting PQ's promotion for South Korea.

[1]
Question 11
HL • Paper 1
Medium
Calculator Permitted
HL • Paper 1
Medium
Calculator Permitted

FreshFold (FF) is a South Korean business that operates small laundrette cafes where customers wash clothes while buying drinks and snacks. FF wants to expand into Mexico. Instead of owning all outlets itself, FF is considering international franchising to Mexican franchisees.

A

Analyse the possible benefits and drawbacks for FF of using international franchising as a market entry method in Mexico.

[6]
Question 12
HL • Paper 1
Medium
Calculator Permitted
HL • Paper 1
Medium
Calculator Permitted

UrbanPulse (UP) is a British sportswear brand known for humorous advertising and bold images of athletes. UP plans to enter the United Arab Emirates. Its marketing team is debating whether to use the same promotional campaign worldwide or adapt the campaign for the local market.

A

Analyse UP’s decision whether to standardize or adapt its promotional strategy for the United Arab Emirates.

[6]

Build a Practice Exam — Business and Management HL

Test your knowledge with a custom paper containing questions from selected topics.

Practice exam question preview
Practice exams dashboard preview
Question 13
HL • Paper 2
Medium
Calculator Permitted
HL • Paper 2
Medium
Calculator Permitted

KaiKitchen (KK), a Singaporean casual dining chain, is considering two international market entry methods for Thailand: franchising or foreign direct investment (FDI). KK's directors believe that franchising offers faster expansion, while FDI gives greater control over the service experience.

Table 3: Forecast first-year data for Thailand

Item

Franchise option

FDI option

Number of outlets

8

5

Initial franchise fee per outlet / SGD

40000

Not applicable

Average annual sales per outlet / SGD

600000

1000000

Royalty rate on franchisee sales

5%

Not applicable

Contribution margin on company-owned sales

Not applicable

35%

First-year setup cost / SGD

Not applicable

2200000

Annual local marketing fixed cost (SGD)

Not applicable

600000

A

Calculate KK's total first-year revenue from the franchise option. Show all your working.

[3]
B

Calculate the first-year profit or loss from the FDI option and comment on one implication for KK's international marketing decision.

[3]
Question 14
HL • Paper 2
Medium
Calculator Permitted
HL • Paper 2
Medium
Calculator Permitted

NaturaGlow (NG), a Spanish cosmetics business, plans to enter Japan. NG must decide whether to use its standardized European packaging and promotion or adapt the product names, packaging colours and social media campaign to Japanese customer preferences.

Table 4: First-year forecasts for Japan

Item

Standardized strategy

Adapted strategy

Forecast units sold (units)

40000

55000

Selling price per unit (EUR)

16

17

Variable cost per unit (EUR)

7.00

8.20

Local promotion cost (EUR)

120000

180000

One-off redesign and translation cost (EUR)

0

90000

A

Calculate the forecast first-year profit for each strategy. Show all your working.

[4]
B

Comment on whether NG should standardize or adapt its marketing strategy in Japan.

[2]
Question 15
HL • Paper 2
Medium
Calculator Permitted
HL • Paper 2
Medium
Calculator Permitted

FitFlex (FF), a Canadian fitness clothing business, plans to enter Mexico using e-commerce rather than physical stores. FF expects online selling to be fast and low cost, but managers are concerned about delivery subsidies and product returns.

Table 6: Monthly forecast for Mexican e-commerce sales

Item

Figure

Website visitors from Mexico

120000

Conversion rate

3%

Average order value

45 CAD

Product variable cost

40% of sales revenue

Delivery subsidy paid by FF

6 CAD per order

Return rate

8% of orders

Return processing cost

12 CAD per returned order

A

Calculate the forecast number of monthly orders from Mexico. Show all your working.

[2]
B

Calculate FF's monthly net contribution from Mexican e-commerce after return processing costs. Show all your working.

[3]
C

Comment on one opportunity or threat of e-commerce as an international market entry method for FF.

[1]
Question 16
HL • Paper 2
Medium
Calculator Permitted
HL • Paper 2
Medium
Calculator Permitted

MilanStep (MS), an Italian shoe manufacturer, is considering indirect exporting to the United Arab Emirates through a local distributor. The distributor offers market knowledge and access to retailers, but MS is concerned that the channel will reduce its margin.

Table 8: Data for one pair of shoes sold in the UAE

Item

Figure

Recommended retail price in the UAE

550 AED

Share of retail price received by MS after retailer and distributor margins

55%

Exchange rate

1 EUR = 4.00 AED

Manufacturing cost per pair

65 EUR

Export documentation cost per pair

4 EUR

Minimum desired gross profit margin

40%

A

Calculate MS's gross profit margin per pair from indirect exporting to the UAE. Show all your working.

[4]
B

Comment on whether indirect exporting is financially attractive for MS.

[1]

Build a Practice Exam — Business and Management HL

Test your knowledge with a custom paper containing questions from selected topics.

Practice exam question preview
Practice exams dashboard preview
Question 17
HL • Paper 1
Hard
Calculator Permitted
HL • Paper 1
Hard
Calculator Permitted

OceanBite Foods (OBF) is an Irish manufacturer of plant-based seafood alternatives, including “tuna-style” spreads and frozen “fish” fillets made from peas and seaweed. OBF’s domestic market is becoming saturated and two large European food businesses have recently launched similar products. OBF’s directors are considering international market development by entering Japan and Norway within the next 18 months.

Japan has a large seafood market and a growing number of younger consumers interested in sustainability. However, market research suggests that Japanese customers expect subtle flavours, small portion sizes and detailed packaging information. Food labelling rules are strict and most supermarket chains prefer to work with local distributors. Norway has high average incomes, strong environmental awareness and well-developed supermarket distribution. However, it also has established local seafood producers and many consumers are sceptical about highly processed foods.

The operations director wants OBF to use a standardized global marketing strategy: the same products, English brand name and “Save the oceans” advertising campaign in both countries. This would reduce packaging, production and promotion costs. The marketing director argues that OBF should adapt flavours, packaging and promotional messages for each country and work with local influencers and retailers, even though this would delay entry and increase costs.

A

Using the stimulus, discuss whether OBF should standardize or adapt its international marketing strategy when entering Japan and Norway.

[10]
Question 18
HL • Paper 2
Hard
Calculator Permitted
HL • Paper 2
Hard
Calculator Permitted

Maya Meals (MM) is a UK manufacturer of chilled plant-based ready meals. In the UK, MM uses humorous advertising, English-only packaging and large family-sized packs. UK sales growth has slowed, so MM is considering international marketing in Germany and Japan.

MM's operations director wants a standardized global marketing strategy to protect the brand and reduce costs. The marketing director wants to adapt the product names, packaging sizes, recipes and social media promotion to local customer preferences.

Table 1 gives MM's first-year forecasts for entering Germany and Japan.

Item

Standardized strategy

Adapted strategy

Forecast units sold in Germany

180000

225000

Forecast units sold in Japan

70000

120000

Average selling price per unit

£4.20

£4.50

Variable cost per unit

£2.10

£2.55

International launch and distribution costs

£520000

£690000

Additional packaging, translation and market research costs

£40000

£210000

Estimated probability of product recall

12%

4%

Estimated cost of recall if it occurs

£300000

£250000

A

Evaluate MM's decision to use an adapted rather than a standardized international marketing strategy for Germany and Japan.

[10]
Question 19
HL • Paper 1
Hard
Calculator Permitted
HL • Paper 1
Hard
Calculator Permitted

SunTrail Energy (STE) is a South African manufacturer of portable solar chargers used by hikers, campers and small businesses in areas with unreliable electricity supply. STE currently sells mainly in South Africa through outdoor equipment retailers and online platforms. Its production facility has spare capacity, and managers believe international marketing could help STE increase output and reduce average costs.

STE is considering entering Kenya and the United Arab Emirates (UAE). In Kenya, demand for affordable solar products is growing, but customers are price-sensitive and distribution outside major cities can be unreliable. Some counties require foreign businesses to work with local agents. In the UAE, consumers have higher average incomes and outdoor leisure tourism is growing, but international brands already dominate the market and promotional costs are high. The UAE also has strict certification requirements for electrical products.

STE would initially export from South Africa. The finance director is concerned about exchange rate movements and the cost of meeting different product certification rules. The marketing director argues that international expansion would reduce STE’s dependence on South Africa and strengthen its brand. However, the operations manager warns that longer supply chains, after-sales service problems and different customer expectations may damage STE’s reputation.

A

Using the stimulus, evaluate the opportunities and threats for STE of entering and operating internationally in Kenya and the UAE.

[10]
Question 20
HL • Paper 1
Hard
Calculator Permitted
HL • Paper 1
Hard
Calculator Permitted

MysaCare (MC) is a Danish business that designs wearable monitoring devices and a mobile app for elderly people living independently. The devices alert family members or care providers if the user falls, misses medication or shows unusual activity patterns. MC sells successfully in Denmark and Sweden, where customers trust digital health technology and local care providers recommend the product.

MC wants to enter Singapore, where the population is ageing and many families are willing to pay for technology that helps elderly relatives remain at home. However, Singapore has strict data protection rules, high customer expectations for technical support and a culturally diverse population speaking several languages. Some families may be concerned that monitoring devices reduce personal contact with elderly relatives. Hospitals and private care providers strongly influence purchasing decisions.

MC is considering an international joint venture with CareLink, a well-established Singaporean private healthcare provider. CareLink has relationships with hospitals, knowledge of local regulations and a multilingual customer service team. However, CareLink wants the app to use its own brand name alongside MC’s, and it wants significant influence over pricing and promotional messages. MC’s founder is worried about loss of control and possible damage to MC’s brand if service quality is inconsistent. An alternative would be for MC to enter Singapore through direct online sales from Denmark, supported by a small outsourced technical support team.

A

Using the stimulus, recommend whether MC should use an international joint venture with CareLink to enter Singapore.

[10]

Build a Practice Exam — Business and Management HL

Test your knowledge with a custom paper containing questions from selected topics.

Practice exam question preview
Practice exams dashboard preview
Question 21
HL • Paper 2
Hard
Calculator Permitted
HL • Paper 2
Hard
Calculator Permitted

AquaSense (AS) is a US manufacturer of smart home water filters. AS has strong brand awareness in the United States, but most sales are now replacement purchases. AS is considering entering Brazil, where demand for water filtration products is growing in large cities.

AS is considering two international market entry methods:

  • Option 1: direct exporting from the US to Brazilian retailers
  • Option 2: an international joint venture with LimpaLar (LL), a Brazilian household appliance business with an established distribution network

Table 2 gives forecast data for the first year of selling in Brazil.

ItemOption 1: direct exportingOption 2: joint venture with LL
Forecast units sold2400040000
Selling price received by AS or the joint venture per unitUS$82US$76
Manufacturing cost per unitUS$42US$40
Shipping and insurance cost per unitUS$9US$4
Import tariff per unitUS$10US$3
Fixed marketing and compliance costs (paid by AS; for Option 2, treated as a joint-venture cost deducted before profit is shared)US$360000US$520000
Share of joint venture profit received by ASNot applicable55%
Minimum first-year profit target for AS from BrazilUS$300000US$300000

Item

Option 1: direct exporting

Option 2: joint venture with LL

Forecast units sold

24,000

40,000

Selling price received by AS or the joint venture per unit

US$82

US$76

Manufacturing cost per unit

US$42

US$40

Shipping and insurance cost per unit

US$9

US$4

Import tariff per unit

US$10

US$3

Fixed marketing and compliance costs (Option 1: paid by AS; Option 2: paid by the joint venture and deducted before profit sharing)

US$360,000

US$520,000

Share of joint venture profit received by AS

Not applicable

55%

Minimum first-year profit target for AS from Brazil

US$300,000

US$300,000

A

Recommend whether AS should use direct exporting or an international joint venture to enter Brazil.

[10]
Question 22
HL • Paper 2
Hard
Calculator Permitted
HL • Paper 2
Hard
Calculator Permitted

NordPlay (NP) is a Swedish subscription-based educational technology business. Its app teaches coding to children aged 8 to 14. NP currently sells only in Scandinavia using e-commerce app stores and online promotion. Domestic growth is slowing, and NP is considering operating internationally in Turkey and Saudi Arabia.

NP's directors believe that international marketing offers market development and economies of scale. However, teachers in both countries have requested local-language content, culturally appropriate examples and local customer support. Data protection regulations also differ from Sweden.

Table 3 gives first-year forecasts for two international marketing strategies.

Item

Strategy A: standardized app and global online promotion

Strategy B: localized app, local-language support and adapted promotion

Forecast paid subscribers in Turkey

18,000

28,000

Forecast paid subscribers in Saudi Arabia

9,000

22,000

Annual subscription price per subscriber (US$)

28

30

App store commission

25% of subscription revenue

25% of subscription revenue

Content, translation and local support costs (US$)

80,000

260,000

Country-specific data protection compliance costs (US$)

40,000

90,000

Promotion cost (US$; complete first-year cost for each strategy)

120,000

160,000

Estimated probability of negative social media criticism due to cultural misunderstanding

18%

5%

A

Discuss whether NP should operate internationally in Turkey and Saudi Arabia using Strategy B rather than Strategy A.

[10]
Question 23
HL • Paper 3
Hard
Calculator Permitted
HL • Paper 3
Hard
Calculator Permitted

AwaWear (AW)

Read the resources and answer the questions that follow.

Resource 1 — Background of the social enterprise

AwaWear (AW) is a Kenyan social enterprise that designs and manufactures reusable period underwear. Its mission is to reduce period poverty and plastic waste. AW sells at low prices to schools and health charities in Kenya and reinvests surpluses into free menstrual health workshops. AW has a strong ethical brand, but its managers have limited experience of selling outside East Africa.

AW is considering international marketing for the first time. Two possible target markets are Sweden and the United Arab Emirates (UAE). In both countries, AW would sell through e-commerce and selected health retailers. AW’s directors are debating whether to use a standardized global campaign based on the message “dignity without waste” or to adapt product packaging, promotion and distribution for each country.

Resource 2 — Selected international market information for AW

A table compares Sweden and the UAE using indicators including estimated annual demand, average disposable income, cultural sensitivity of advertising, preferred online payment methods, regulatory approval time and forecast first-year marketing adaptation cost.

Resource 3 — Social-media statistic

AW’s short video showing its workshop programme reached 3.8 million views globally in one month. However, 62% of comments from outside Kenya asked whether the product was “medically approved” or “culturally appropriate”.

Resource 4 — Extract from an interview with AW’s founder

“Our product can support girls and reduce waste anywhere, but we cannot assume that the way we discuss menstruation in Kenya will be acceptable everywhere. If we enter the wrong way, we could damage trust in our social mission.”

Market

Estimated annual demand (pairs/year)

Average disposable income (US$/year)

Cultural sensitivity of advertising (1=low, 5=high)

Preferred online payment methods

Regulatory approval time (weeks)

Forecast first-year marketing adaptation cost (US$)

Sweden

180000

37000

2

Swish, debit/credit card, Klarna

8

60000

UAE

240000

49000

4

Credit/debit card, Apple Pay, cash on delivery

14

110000

1

Describe one opportunity for AW of entering international markets.

[2]
2

Explain two threats to AW of using international marketing in Sweden and the UAE.

[6]
3

Using all the resources provided and your knowledge of business management tools and theories, recommend a possible international marketing plan for AW over the next three years.

[17]
Question 24
HL • Paper 3
Hard
Calculator Permitted
HL • Paper 3
Hard
Calculator Permitted

BrightBridge Learning (BBL)

Read the resources and answer the questions that follow.

Resource 1 — Background of the social enterprise

BrightBridge Learning (BBL) is a social enterprise based in the Philippines. It produces low-cost solar-powered learning tablets loaded with offline educational content for children in areas with unreliable internet access. For every tablet sold to a private school, BBL donates one year of free software updates to a community learning centre. BBL’s main customers are schools, NGOs and local government education departments.

BBL has grown rapidly in the Philippines and is considering international expansion into Peru and Ghana. Managers believe BBL’s product has a universal social purpose, but they are uncertain about the best market entry method. Options include indirect exporting through education equipment distributors, an international joint venture with a local NGO, or foreign direct investment through a small overseas service and training office.

Resource 2 — Comparison of possible market entry methods

A table compares indirect exporting, an international joint venture and foreign direct investment for BBL using indicators including start-up cost, speed of entry, control over customer training, access to local education decision-makers, risk of brand inconsistency and exposure to political or legal risk.

Resource 3 — Extract from a pilot project report

In a six-month pilot in Peru, teachers praised the tablets but requested Spanish and Quechua content, local examples in science lessons and face-to-face teacher training. In Ghana, a charity partner reported that after-sales repair support was more important than price for many schools.

Resource 4 — Quotation from BBL’s operations manager

“If we simply ship tablets abroad, we can grow quickly. But our social impact depends on teachers using them well and communities being able to repair them.”

Market entry method

Start-up cost

Speed of entry

Control over training

Access to local decision-makers

Risk of brand inconsistency

Political/legal risk

Indirect exporting

Low

Fast

Low

Low

High

Low

International joint venture

Medium

Medium

Medium

High

Medium

Medium

Foreign direct investment

High

Slow

High

Medium

Low

High

1

Describe one difference between global marketing and international marketing for BBL.

[2]
2

Analyse two possible market entry methods for BBL.

[6]
3

Using all the resources provided and your knowledge of business management tools and theories, recommend a possible international marketing plan for BBL over the next four years.

[17]

Build a Practice Exam — Business and Management HL

Test your knowledge with a custom paper containing questions from selected topics.

Practice exam question preview
Practice exams dashboard preview
Question 25
HL • Paper 3
Hard
Calculator Permitted
HL • Paper 3
Hard
Calculator Permitted

FairPlate Foods (FPF)

Read the resources and answer the questions that follow.

Resource 1 — Background of the social enterprise

FairPlate Foods (FPF) is a social enterprise in Denmark that produces frozen plant-based meals using vegetables that supermarkets reject because of their appearance. FPF’s mission is to reduce food waste and provide affordable healthy meals. In Denmark, FPF sells to supermarkets and donates meals to food banks when monthly sales targets are met.

FPF is considering international expansion into South Korea. The directors believe South Korea offers growth because of rising interest in convenient healthy meals, but they are concerned about cultural preferences, local competitors, import requirements and the environmental criticism of shipping frozen products long distances. FPF is considering two broad options: exporting frozen meals from Denmark through a South Korean distributor, or creating an international joint venture with a South Korean food manufacturer to adapt and produce meals locally.

Resource 2 — South Korea market information

A table shows selected information for FPF, including forecast demand for plant-based frozen meals, number of major local competitors, estimated import duties and cold-chain transport cost, expected cost of adapting recipes and packaging, and forecast percentage of consumers preferring locally produced food.

Resource 3 — Social-media statistic

When FPF posted a Korean-language advertisement translated from its Danish campaign, engagement was high but 48% of negative comments said the meals looked “too foreign” or questioned the carbon footprint of importing frozen food.

Resource 4 — Quotation from FPF’s marketing director

“Our brand is built on sustainability and affordability. If international expansion makes us look wasteful or expensive, we will lose the trust that made FPF successful.”

Market factor

South Korea forecast

Forecast demand for plant-based frozen meals (million meals/year)

12.0

Major local competitors (number)

5

Import duty on frozen meals (%)

18

Cold-chain transport cost (DKK per meal)

6.40

Adaptation cost for recipes and packaging (DKK million)

3.2

Consumers preferring locally produced food (%)

65

1

Describe one threat posed by protectionism to FPF if it enters South Korea.

[2]
2

Explain two reasons why FPF may need to adapt its marketing mix for South Korea.

[6]
3

Using all the resources provided and your knowledge of business management tools and theories, recommend a possible international marketing plan for FPF over the next five years.

[17]

4.5 The seven Ps of the marketing mix