RECOMMEND MARKET

ENTRY STRATEGY FOR

WILDGOOD INTO THE
MEXICO MARKET

Student Name: Tran Thi Thu Uyen

UWE ID: 22086560
Word count: 2465

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Table of contents

01 Segmentation, Target Customer,

and Positioning

02 En󰇢ry Mode

03 Promotional S󰇢rategy

04 Global Branding
 01
STP MODEL
Market segmentation and justification of target selected for WILDGOOD in Mexico
 Because of their large population density and great consumer buying power, the urban
and suburban areas are the focus. With Guanajuato and Mexico having the highest
population density in Mexico, the Southern Altiplano has seen an uptick in confidence
Geographic and spending. Chimalhuacán, which is located just outside Mexico City's northeast
boundary, also grows olive trees and produces oil from them. Due to this, Wildgood
may form a collaboration with a Mexican producer to create virgin extra olive oil in the
future, which would help cut production costs.

The two primary generations when it comes to consuming foreign plant-based ice
Demographic cream are Gen Y (1981–1997) and Gen Z (1997–2013). In 2023, Gen Y and Z
made about 48% of the Mexican population.

Segmentation Target Audience Positioning

 Wildgood's target market is the middle-to-upper-middle-to-high class, which can
afford "experiential luxury" and is interested in "affordable luxury products" that
have a beneficial influence on their worth. Four possible sorts of people's values
and lifestyles are shown below in more detail.
Enthusiastic customers like lifestyle centers over other types of stores because
they provide a more upscale selection of restaurants, entertainment venues, and
Psychographic brand names.
(González‐Herná Experienced shoppers are outgoing, love entertaining, and enjoy bragging to
ndez and friends and coworkers about their pricey purchases and considerate behavior. They
Orozco‐Gómez, often pick rather odd ice cream flavors.
2012); Married Food Lovers: They often work in business and professions, earn above
Euromonitor, average salaries, are socially engaged and on the rise, and have an interest in
2022a) physical beauty, fitness, and self-improvement. They are less concerned with
themselves and more concerned about their family. They are innovative and
appreciate money.
Achiever shoppers: They restrict their consumption for dietary reasons. They
consider themselves ice cream experts, yet all brands taste the same to them. They
will only buy a more expensive brand if there is a special occasion, like hosting
friends.

They could be potential, brand-new, or regular users. They buy ice cream for
special occasions, to feel better, or to motivate themselves. They gather
Behavioral
information from a variety of sources, including social media, word of mouth, and
user reviews, before making judgments.

Segmentation Target Audience Positioning

 Pen Portrait
Name Rosario Cabrera

Age 26

Homewtown Mexico City

Current Mexico City

Location

Occupation Business Analytic Specialist

Income 55000 MXN/month ~ 3000 USD

Marital Status Single

Characteristics She wants to immerse herself in the

community's culture and is interested in
environmental concerns. Because she
maintains a healthy lifestyle, she also favors
dessert businesses that use natural ingredients
and are environmentally friendly. She follows
flavor trends and likes to eat premium frozen
desserts. She uses ice cream to amuse herself.

Finally, Wildgood concentrates on upscale and robust markets. The plant-based ice cream is marketed
to middle-class to upper-class Gen Y and Z customers in Mexico City, particularly women who are
interested in purchasing premium, nutritious ice cream with unique formulations, all-natural
ingredients, and superior flavor.

Segmentation Target Audience Positioning

In order to compete in a crowded market, Wildgood must identify and assess competitors. If
competitors target the same customer segment as our brand, it is essential to evaluate which consumer
segments they serve as well as the competitors' role and strategy. The positioning map's dimensions
are selected based on a market study of customer value as measured by the "Organic recipes" and
"Innovative taste" aspects.

Table 1: The positioning map of Wildgood put in plant-based ice cream competition context in Mexico

As previously said, the advice for Wildgood in Mexico is to make the highest-quality healthy frozen
dessert—plant-based ice cream—in order to provide a delicious and joyful experience. There are
benefits for Wildgood in the marketplace because of:
- Assembling a skilled team to develop recipes.
- Using KOSHER-certified extra virgin olive oil, as per Vegan.org. Since we never use
synthetic dyes, flavors, or carrageenan, Wildgood is a suitable frozen dessert for those who
lead healthy lifestyles.

Segmentation Target Audience Positioning

 Brand Pyramid

Figure 1: The five-stage brand pyramid

Segmentation Target Audience Positioning

02 ENTRY
MODE
The model of Hollensen (2014) will be employed to propose ENTRY MODE for
WILDGOOD to enter in Mexico market.

Internal Factors

Entry Mode Decision External Factors

Desired Mode Characteristics

Figure 2: The Entry Mode Decision framework (Hollensen, 2014)

INTERNAL FACTORS
Financial Resource
It is possible for Wildgood to set up a non-equity mode in Mexico with the £7 million in financial
backstop (Appendix 7).

Human Capability
Wildgood has more than ten employees, which is the ideal number for a small business (Appendix 7).
Sotiris Tsichlopoulos, the current CEO of Wildgood, is an artisan ice cream maker with a lot of
expertise in the food and beverage sector (wildgood.com).

DTC Business
Wildgood uses a data-driven strategy to tailor the options for clients despite having expertise in the
DTC business model (Appendix 3). Because the consumer prefers purchasing ice cream from retailers
(such as supermarkets), Wildgood should switch to a different business model shortly after entering
Mexico (Appendix 3). However, Wildgood should keep operating in e-commerce since it is less
competitive and is significantly growing since its small-sized business. Once brand recognition has
been established, Wildgood expands their business through retail channels.
EXTERNAL FACTORS
Stage of Development of the Category (Product Life Cycle)
In Mexico, contributions from multinational corporations like Unilever and Nestle have completely
flooded the ice cream market (Appendix 4). However, vegan ice cream falls under the New Growth
stage of development, which is characterized by the following:
- Infrastructure for marketing that is expanding quickly (Appendix 2).
- Customers are aware of the advantages of healthy foods, particularly plant-based ice cream,
and the sharp increase in demand for them (Appendix 1).
- Larger corporations, like Unilever, frequently acquire Ben & Jerry's in order to enter the
plant-based ice cream market (businessinsider, 2020; Appendix 4).

Economic and Manufacturing Support

Foreign investment is strongly encouraged in Mexico thanks to the United States-Mexico-Canada
Agreement (USMCA) between the UK and Mexico (Appendix 1). Due to its strong legislative
protections for regulations governing collateral (securities) and dependable credit reporting system,
Mexico outperforms most economies in the world when it comes to acquiring credit (Appendix 2).
Mexican citizens and the government both embrace plant-based desserts, therefore Wildgood has the
opportunity to enter this market (Appendix 1).

The Know-How of Wildgood

The key components of Wildgood's vegan ice cream are the unique ingredient (virgin olive oil) and
the production process. The company's "secret weapon" is thus knowledge.

Hidden barriers
Since the primary component of Wildgood plant-based ice cream is olive oil, the production alliance
is one of the most important causes for worry because climate change in Mexico could have a
negative impact on the product's quality (Appendix 2).

Distribution networks in Mexico

● Distribution based on location
- Location: Mexican urban area
- Focus on: Mexico City, Guadalupe
● Channel distribution
The expansion of Wildgood into all conventional grocery stores, convenience stores, and online sales
is recommended. Considering that a strategic alliance is able to operate in both channels and has
expertise working with both convenience stores and independent grocery retailers. Since they are the
two biggest online retailers in Mexico, Amazon and Walmart should be considered when discussing
e-commerce channels (Muoz-Villamizar et al., 2021).
DESIRED MODE CHARACTERISTICS
Risk Adverse
Given that Wildgood is entering Mexico for the first time, particularly in a market that is just starting
to emerge, there are likely to be several risks associated with the populace, preferences, culture,
product development strategy, etc. Therefore, a strategic alliance is recommended for Wildgood in
order to gain access to local expertise and secure current market coordination.

Control (the most critical mode to safeguard know-how)

Since the quality of the virgin olive oil used as a raw material in plant-based ice cream production
depends on it, Mexico cannot guarantee its quality (see Appendix 2 on the environment). Since
product quality (the know-how) and marketing activities are crucial components of Wildgood's global
brand in Mexico, the strategic alliance is the approach that has control over these areas.

Flexibility
Mexico has a hierarchical society, with a power distance of 81, according to Hofstede Insight.
Wildgood is therefore challenging to adjust rapidly. Moreover, Wildgood does not place a high
priority on flexibility because the Mexican market is in a new phase of growth and little adaptation is
necessary.

Figure 3: Mexico’s Hofstede Insight

En󰇢ry Mode Recommended (En󰇢ry S󰇢rategy)
To acquire a long-term competitive edge, firms should deliberately work with distributors, according
to Todeva, E. and Knoke (2005). According to Ohmae and Kenichi (1989), Wildgood should develop
a specific contract agreement and be up front about the business' long-term objectives in the Mexican
market. In order to test the market, Wildgood should also leverage exclusive distribution, delivering
items to supermarkets and convenience stores in a few key cities. Furthermore, when transitioning
from a developed mixed-market (the US) to a growth market (Mexico), the company should use the
waterfall approach (Ohmae and Kenichi, 1989).

Strategic alliance partner

Vima Foods' profile
Vima Foods, which has a solid reputation in the purchase, distribution, and elaboration of all types of
food items from around the world since 1994, has the highest prospective distributors. In addition,
Vima Foods (vimafoods.com) does not currently provide ice cream, particularly plant-based ice
cream, therefore the agreement might enable Vima Foods to expand its product line. Additionally,
they collaborate directly with factories and suppliers in more than 40 nations, strengthening their
position internationally and enabling them to find the best products for Wildgood. Additionally, they
maintain close connections with top hotels, eateries, and supermarkets in Mexico.
Benefits for Vima Foods'
As the US is a potential ice cream market, a partnership with Wildgood gives them the chance to
diversify their premium ice cream portfolio and expand their Vima Foods Brand product line.
Benefits for Wildgood
As a result of Vima Foods' standing and alliance, Wildgood could offer a variety of outlets and
distribution options (on-trade, off-trade, online) and gain the respect and trust of Mexican customers.
 PROMOTIONAL
STRATEGY

03
Marketing Strategy Emerging New Growth Mature

Strategic focus Market infrastructure Market development Market share

Competitive focus Lead/follow Domestic/foreign Strength/weakness

Product Line Low-end Limited Wide

Product design Basic Advanced Adapted

New product intro Rare Selective Fast

Pricing Affordable Status Value

Advertising Awareness Image Value-added

Distribution Build-up Penetrate Convenience

Promotion Awareness Trial Value

Table 2: Market stage of development Johansson (2009)

Being categorized as a New Growth market; hence, the launching and promotional strategy
will develop the tasks mentioned in the table above.
CONSUMERS INSIGHTS

Built on the 3C paradigm, which emphasizes the truths about

the customer, the brand, and the category. A lovely pot with
amazing insight is the cross 3C(s).
- Category Truth: Ice cream encourages consumers to
have enjoyment in the present and to give it their all.
- Brand Truth: Delivering plant-forward, nutritious ice
cream with uncomplicated ingredients that restore the
environment and feed our bodies, with a guarantee
that it won't make customers obese.
- Consumer Reality: To unwind and refuel my body, I
want to indulge in some delectable ice cream. Ice
cream, on the other hand, frequently contains
unwholesome components that contribute to obesity.
Because of this, I occasionally only have ice cream in
celebration of exceptional events or as a prize
(WARC, 2017).
→ Insight: Customers desire ice cream that is delectable,
flavorful, and varied. It is a nutritious, smooth ice cream that
satisfies their ice cream cravings without contributing to fat.
PROMOTION STRATEGY (Alon et al.2020; Hollensen, 2020)

Objectives
Business objectives:
- Boost Wildgood's market share to 0.5%
- Increase Wildgood's global revenues to $2 billion.
Marketing Objectives:
- Increased reach for Wildgood
- Heighten awareness of the Wildgood brand
- Boost interest in Wildgood's plant-based ice cream among customers.

Creative strategy (4P’s)

Product (healthy plant-based ice cream with natural, tasteful ingredients)
Product line: According to Anna Hezel (2017), Mexican ice cream places a greater focus on
flavorings like chocolate, cinnamon, and fruit and less on toppings like candy and cookies. The
product lines for testing in the Mexican market are thus Chocolate Hazelnut, Mint Chocolate Chip,
and Mango plant-based ice cream.

Instead of developing new tastes to join the Mexican market, standardization strives to preserve the
company's flavor. The three plant-based ice cream flavors—Chocolate Hazelnut, Mint Chocolate
Chip, and Mango—were initially the ones that helped Wildgood expand into new areas. By choosing
and concentrating on a certain good or service, the firm will first research, analyze, and build
awareness of the Mexico market before broadening the product line as necessary. The flavors of
Chocolate Hazelnut, Mint Chocolate Chip, and Mango plant-based ice cream can also be seen as a
good chance to help the partnership between Wildgood and Vima Food succeed in attracting a sizable
number of people to try.

Adaptation implies changing the company's brand name to Mexican. Mexican characters were
employed to collect specific product information on the Wildgood package. Consumers frequently
take all of these factors into account when purchasing products.
PROMOTION STRATEGY (Alon et al.2020; Hollensen, 2020)

Price
The firm uses a value-based pricing method, which is a customer-centric pricing process, and is thus
concerned with the value customers receive from utilizing the company's goods.

In order to improve market penetration and help the well-known product keep its market share,
Wildgood should not manufacture a less expensive alternative for the international market since it is
devoted to upholding the consistency of its goods.

Place
Mexico's two primary distribution networks (on-trade and off-trade) are geographically separated.
The off-trade route, which requires working with Vima Food Distributor, should have been
Wildgood's first priority when entering the Mexican market as a strategic alliance distributor.
Additionally, the on-trade option makes a pitiful sum of money. A nutritious take-home ice cream is
recommended for strong demand. Future plans for Wildgood might include locating its production
facility and regional headquarters in or close to Mexico City.

Promotion
The goal of Wildgood is to persuade young consumers who have never tried plant-based ice cream to
do so through advertising. Therefore, 20% above the line (ATL), 60% below the line (BTL), and 20%
through the line (TTL) are the communication channels that Wildgood's promotion strategy would
employ. For communication, it would allot 12% of its revenue.
EXECUTIVE
Above the Line (ATL)

Channel Activities

Advertising - Pop-up a short TVC on Youtube with Celebrity.

- Using billboard in elevator in alliance of Vima Foods.

Public Relation Sponsorship for environmentally projects, trade fairs and exhibitions.

Below the Line (BTL)

Channel Activities

Sale and Promotion Give trial to customers to evaluate the quality by partnering with
Vima Foods.

Make as a gift with frozen dessert products distributed by Vima

Foods.

Direct Marketing Send promotions or information about what customers are

researching via email.

Through the Line (TTL)

For marketers to connect and engage young Mexican customers at lower costs, social media, and
e-commerce have become crucial. Young people today are pretty appreciative of contemporary living.
International firms must investigate local systems, applications, and online media to understand
customer behavior on each platform.
 05
GLOBAL
BRANDING
Global branding strategy and execution for WILDGOOD
in Mexico

Adaptation or standardization?
 REFERENCE

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 APPENDIX 1
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APPENDIX 8
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