The use of standardization and adaptation

Question 1. Create a table or tables which;

allow a clear visual comparison of Hello Fresh’s marketing mix across eight countries (see the separate website list in Assignment Brief folder where suggested countries have been highlighted in yellow)
help both you and the reader to understand the use of standardization and adaptation, with examples.

Country Market Mix	Germany	Australia	Canada	Netherlands	UK	Sweden	Switzerland	USA
Pricing
Product
Promotion
Place
Processes
Distribution
Image
objectives

Question 2: How should Hello Fresh’s approach to branding best be described; ‘global’, ‘regional’ or local’?

Hello Fresh’s approach to branding would best be described as being global. Global brands refer to products and services that have a market and recognition worldwide, or at least across different continents. Examples of global brands are Coca-Cola, Microsoft, Facebook, and many others. Firms and business entities that employ global branding possibly use the same marketing strategy to promote their brands everywhere that it is offered, regardless of the region and country where it is operating. Some marketing strategies make Hello Fresh a global brand and are discussed below.

According to Interbrand (2019), identifying consistency is key to a brand going global. Consistency makes a brand easy to recognize, resulting from high levels of awareness of the brand. High awareness levels mean that consumers in different market places have due knowledge about the product and services. As a result, global brands are considered by consumers as highly desirable and have the advantages of economies of scale. For Hello Fresh, since its founding in 2011, it has maintained a consistently high level in the market, steadily climbing to the top of the food kit company by beating hundreds of similar companies that had already been in existence. (Helm, 2018).

Also, a genuinely global brand should beat geographical and cultural boundaries. Hello Fresh operates in twelve different countries, namely, Germany, Australia, Canada, the Netherlands, the United Kingdom, Sweden, Switzerland, the United States of America, New Zealand, Belgium, Austria, and Luxembourg. These countries are located across different geographical borders with different cultural practices and beliefs. With Hello Fresh having markets in various continental divides, it is therefore correct to describe the brand to be global. Also, by having a large market base, Hello Fresh enjoys economies of large scale production, where increased production volumes result in production costs, and therefore increases revenue streams.

Interbrand also states that for a brand to be described as global, the brand has to be present and be operational in different continents, particularly in Europe, Asia, and North American markets. Despite Hello Fresh being German-based, it has other markets in seven other European countries, two countries in North America and Australia. The markets have branches that specifically deal with the unique requirements of the geographical location of a country and cultural practices. As a result, Hello Fresh operates on three continents and still with the potential to further expand to the rest of continents- Asia, Africa, and South America. As a result, it is evident from different markets to categorize Hello Fresh as a global brand and not local or regional.

A global brand has to expand across established world economic centers, while also making it presence establishment in the significant future markets. Hello Fresh, by having markets across Europe, North America, and in Australia, proves of its position as an established brand in the major world economic centers. Its meal-kit brand still has the potential to spread to other markets in the future. Therefore, for a global brand, Hello Fresh has a space in the primary market centers around the world. Europe and the United States are major economic centers, and having markets there proves its global brand description.

Interbrand also requires that for a brand to be global, there must be sufficient public information about the brand’s financial performance and any other information that affects the consumers. This information comes in the form of financial statements during annual reports, quarterly revenues, and published reports on websites and in commercial media. Hello Fresh publishes its financial reports annually on its websites, and this information can be obtained easily. For instance, it is possible to get information on the internet regarding the expected profits, annual reports, customer size, and subscriptions.

For a brand to meet a global status, economic profits must be expected to be positive over the longer term (Interbrand, 2019). That is, returns have to be above the brand’s operating as well as financial costs. Buck (2018) reports that profits of Hello Fresh jumped by a staggering fifty-two percent (52%), making its share price improve by six percent (6%). As a result, Hello Fresh acquired a specialized and organic meal kit provider known as Green Chef in the United States. The acquisition of Green chef would help Hello Fresh to address the growing differences in consumer meal preferences. For profitability, the purchase was set to add annual revenues of up to sixty million US dollars (USD 60m), according to Hello Fresh. Therefore, Hello Fresh has returns that are above the operational costs, while also having a set up that would guarantee positive returns in the future and remain competitive.

A global brand needs to have at least thirty percent (30%) of its revenues outside the home region. According to Hello Fresh annual report, as of 31^st December 2018, the United States market alone contributed to up to a whopping sixty percent (60%) of total revenues in the year 2018. This revenue income form the US market is far above the minimum requirement from external markets for a global brand, thereby implying that markets outside Germany have a higher revenue contribution, and therefore the brand is recognized globally. The revenue streams also mean the brand has a strong financial performance, which is an essential feature to define a global brand.

As per the discussions above, Hello Fresh’s brand strategies are global as they are aimed at promoting the product in different regions. Besides, having operational markets in twelve different countries and three continents makes Hello Fresh a globally recognized brand. Continued economic profits, performance on non-German based markets, and presence in world commercial markets meet Interbrand’s criterion of identifying a global brand in 2019.

Question 3: Critically evaluate the above options and make clear recommendations on the best way forward, as concerns both:

The video
The high or low importance of mobile marketing

Discussion on the Chief Marketing Executives’ Proposal.

This section evaluates and discusses the media campaign proposed by the chief marketing executive on the use of a video that is exclusively in English and also focuses on mobile marketing.

Dollar-shave style video in English using Chef Jamie Oliver. Dollar Shave Club is a California based razor and grooming essentials subscription company that delivers to customers via mail. Apparently, Dollar Shave came to light with the release of the funny and hilarious Dollar Shave Club video that starred the CEO Michael Dublin that went viral, thereby making the company continuously climbing the ladder of success. The video was exclusively in English.

The chief marketing executive suggests using such a hilarious, funny video, starring the chef Jamie Oliver, and exclusively in English to help promote the expansion of Hello Fresh brand to Denmark, Finland, and Sweden. English is one of the most commonly used languages around the globe, and a more significant proportion of citizens of the three countries understand and communicate using the English language. Therefore, making a Dollar Shave style video in English would reach a higher number of the target group and would increase the chances of the media campaign being successful and therefore expanding the market reach in the three countries.

On the other hand, despite English being a common language, Swedish, Danish and Finnish are the first languages in Sweden, Denmark, and Finland, respectively. Besides, Swedish is the second language used in Finland and not English. Some countries put measures on protecting the local language from rivals. For instance, in 2015, a Danish Member of Parliament called for the introduction of the tax in use of English words in an advertisement to protect the ‘beautiful’ Danish tongue from the influence of its rival (Orange, 2015). Also, humor in promotional videos is a double-edged sword, as what is considered funny in one place might be offensive in the other (Laroche, Vinhal and Richard, 2014), hindering the use of a Dollar Shave style video.

Major focus on mobile marketing strategy. Mobile marketing is a promotional activity designed for delivery to cell phones, smartphones, and other handheld devices, usually as a component of a multi-channel campaign

Discussion on the Swedish Staff Proposal.

This section evaluates and discusses the media campaign proposed by the Swedish staff that different videos be used for each of Denmark, Sweden, and Finland to meet the cultural differences and consumer needs of the three countries. The team also suggests a low focus on mobile marketing.

A different video for each of Denmark, Sweden, and Finland Strategy. Bai (2016) groups Scandinavian countries under low context cultures that exhibit high levels of individualism; there is less involvement in other people’s livers and lack of social hierarchy. As a result, communication is more direct and interpersonal. Therefore, Swedish staff suggests different videos for each country to communicate in a way that meets the cultures and needs of consumers.

Very little use of mobile marketing strategy.

Recommendations

After the evaluation of the two proposals, below are the recommendations as per the best ways to approach this media campaign by considering how to use video and mobile marketing strategies in the three countries.

Use of video.

The high or low importance of mobile marketing

Appendix

References.

Bai, H., 2016. A cross-cultural analysis of advertisements from high-context cultures and low-context cultures. English Language Teaching, 9(8), pp.21-27.

Buck, T., 2018. HelloFresh delivers higher revenues and narrows losses. Financial Times, [online] Available at: <https://www.ft.com/content/c503956e-2cef-11e8-9b4b-bc4b9f08f381> [Accessed 7 May 2020].

Helm, B., 2018. The World’s Most Ruthless Food Startup: The Inside Story of How HelloFresh Clawed Its Way to the Top. Inc., [online] Available at: <https://www.inc.com/magazine/201808/burt-helm/hellofresh.html> [Accessed 7 May 2020].

Laroche, M., Vinhal Nepomuceno, M. and Richard, M.O., 2014. Congruency of humour and cultural values in print ads: Cross-cultural differences among the US, France and China. International Journal of Advertising, 33(4), pp.681-705.

https://www.hellofreshgroup.com/download/companies/hellofresh/Hauptversammlung/AGM2019_HF_Annual_Report_2018.pdf

Orange, R., 2015. Danish MP calls for tax on use of English words in adverts. The Telegraph, [online] Available at: <https://www.telegraph.co.uk/news/worldnews/europe/denmark/11653549/Danish-MP-calls-for-tax-on-use-of-English-words-in-adverts.html> [Accessed 7 May 2020].

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