Assignment Of Marketing

Assignment Of Marketing-37
2.1 PESTEL Analysis The PESTLE analysis is used to analysis the external environmental risks faced by organizations.

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Italy was perceived to be the most captivating destination to market Serendib tea, given the country’s background and its familiarity to indigenous quality of food and beverage.

Since Up Country Tea Estate is a marketing-oriented organization, it discovered many opportunities in entering the Italian market.

It is proposed to follow a cost leadership strategy combined with the market development approach, which focus on broad market of foreign customers in a particular targeted country as the appropriate business strategy for initial expansion in order to stay competitive.

1.4 Window of Opportunity Due to unforeseen political and economic fluctuations in the world economy and labour issues in the domestic market, the profitability of the company has been deteriorated.

● Italians have retained a strong attachment to their native region, and find it hard to identify Italy as a single nation. ● Urban population is 42212315.0 ● About 13.79% of the population in Italy fall into 0-14 year category, 64.20% into 15-64 age group and 22.01% over 65 years of age. Capacity ● ● Currency ● It is estimated that Italy has the biggest "black economy" in Western Europe.

● The Saudis have a relaxed attitude towards timekeeping. ● When Saudis greet each other they take their time and converse about general things. ● Poverty rate is 0.13% Concentration ● Euro (€) is the currency of Italy. Communication ● There are 15 minority languages officially recognised in Italy. ● Urban population is 83.13% ● 26.56% of the population fall into 014 year category, 18.85% into 15-24 years, 46.4% into 2554 years, 4.86%, into 55-64 years and 3.34% over 65 years of age. Three are international, eight regional and fourteen domestic. ● Current exchange rate of 1 Euro = 159.57 Sri Lankan Rupee.

➢ Food is a means for establishing and maintaining ties among family and 8 Source: Author's work based on (Everyculture.com, 2017) (Commisceo-global.com, 2016) (European Union, 2017), (Camuffo and Costa, 1993) , (Tradingeconomics.com, 2017) (OECD, 2016) , (The Global Economy.com, 2016) 2.2.1 CAGE Analysis for Saudi Arabia CULTURAL DISTANCE ➢ Business operations are hierarchical. GEOGRAPHIC DISTANCE Consumer spending is 259378 SAR Million in 2015.

Personal income tax has been 0 from 2004 to present.

The author conducts CAGE model for Italy and Saudi Arabia.

2.2.1 CAGE Analysis for Italy ➢ Different languages such as Spanish, French, and English are used to communicate with different citizens. Youth unemployment was a major factor in the outbreak of pro-democracy protests in the Middle East in 2011.

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