Drivers for Internationalisation 42Below
42 Below Inc.’s drivers to internationalize come from two sources i.e. Internal and external motivators. Within internal motivators or rationales, there are proactive and reactive forces. 42 Below is an innovative company, with dynamic leadership that understands the business and market dynamics.
Internal Drivers
Unique Offering
42 Below possesses the world’s most fine/purest vodka with a competitive advantage of having access to New Zealand’s pristine environment. The advantage is sustainable as it is not easy to replicate. Hence, naturally, the confidence in the product with multiple awards backing it up motivates the management to challenge the world.
Management desire and Risk Diversification
The confidence in the product with a strong brand identity solidifies management desire to internationalize and diversity risk to effectively achieve sustainable organic growth.
Local Market Size
The local market is $2.6 billion however, 42-Below’s target market is effectively outside of Local market. They have to grow organically by exploring new markets. The management has decided to grow by pursuing new product and market development at the same time.
External Drivers
Attractive Foreign Market
42 Below has experienced the pull as its unique product is ravishing many tongues. It’s a strategic choice to capitalize on it.
Lessons Learnt from 42 Below internationalization Strategy
The effective element of 42Below’s marketing strategy to present itself as a truly global brand. The company has primarily capitalized on its strategic advantage, where the organization has created a true brand recognition. Many scholars agree that a brand without a clear position cannot effectively rule minds, hearts or wallets of their customers. 42Below doesn’t have a simple substitution as it has positioned itself as a premium product that is exceptionally different from its competitors. The brand positioning is very clear its inputs and processes are purely superior and with the help of management statements and awards 42Below has effectively marketed the word.
Furthermore, the organic growth strategy adopted by the company is aggressive and very suited to its circumstances. The brand stands tall on its unique inputs hence, it is natural to capitalize on available resources, developing new pure tastes to enchant consumers is the right dance. Furthermore, creating a pull international market where Prestigious Hotels like Ritz are pulling 42Below in the limelight is a robust way to leading the market. A mix of new product and market development is need of the market. The lesson here is to solidify the core and expand on it so product is never shaken.
Assume you have been appointed as a consultant by this firm. Outline strategies the firm may use in the near future to capture other international markets.
42Below is a unique brand, acting as its marketing consultant I believe that consumer contact in marketing process is critical to success of 42Below. They have effectively positioned their product so far in the market however, they need to create an experience that users cannot forget. The brand effectively engages promotional mix components and organizes events involving bartenders and other stakeholders.
These are effective ways of connecting with user, but I would like to recommend creating customer experience at the bar. Marketing campaigns as 42Below Nights can be arranged that focus on highlighting inventiveness and imagination based on themed marketing. Digital videos will guide consumers regarding the 42Below nights and establishing a connection with brand recognition. These moments will give access to personalized selling of 42Below products and marketing new products.
The experience is at heart of 42Below hence, investing in VR would also facilitate. Since, Covid-19 42Below can create VR spaces for consumers to connect and enjoy 42Below products. Couple with digital marketing 42 Below can recreate the Bar experience, collaborate with Artists to heighten consumer senses and promote its content.
The Promotional Mix will be integrated where advertisements, would be embedded with VR to offer personalized selling and collaboration with stakeholders to deliver the best.