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Yeo Valley Company’s Global Marketing Strategy Report

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Updated: Jul 27th, 2021


Companies that want to succeed should expand their business operations continuously and formulate new strategies depending on the forces recorded in the global market. This initiative is essential since different regions or countries will tend to have unique factors that can either affect or promote performance. A proper understanding of different models for entry and marketing will eventually deliver positive results. Yeo Valley is an English company that markets different dairy products, including milk, ice cream, and yogurt. The selected developed country for consideration is the United States while the developing one in Nigeria. The purpose of this paper is to propose the best market entry strategies for the two foreign markets.

Market Analysis: Macro-Environment for the United States

Yeo Valley has remained a family-managed business for many years. Its products and brands are grouped under butter, cream, milk, and yogurt (Farmer-owned Arla Foods and Yeo Valley announce partnership on liquid milk, butter, and cheese 2018). As it plans to expand its operations outside the United Kingdom, there is a need to consider the market situations and possible issues that can either affect or support performance. With a proper analysis of each possible destination, Yeo Valley’s leaders can make timely decisions and ensure that the investments deliver positive results and eventually make the corporation successful.


The United States is a democracy with a president as the head of government functions. The country’s elections are usually transparent and fair. A stable political climate has been in place for many years. The preferable conditions have attracted foreign direct investment and economic development (Elson 2019). Policy issues and laws are always taken seriously.


The U.S. has favorable conditions that promote economic development. The presence of some of the leading multinational corporations in this country means that various factors can improve business performance. Many American companies outsource most of their activities and services. Its GDP has been increasing significantly (see Figure 1). In 2017, this country’s GDP stood at around 19.4 trillion US dollars (Elson 2019). The GDP per capita during the same period was recorded at 59,531 million US dollars (Elson 2019). The projected GDP for 2019 is around 21.4 trillion US dollars (Elson 2019). These aspects reveal that it can be a good destination for international business.

United States GDP
Figure 1: United States GDP (Council of Economic Advisors 2019).


This county has a population of over 327 million citizens (Elson 2019). The number of elderly people has been increasing very fast. Many people are unable to offer an adequate supply of labor. The U.S. has established healthcare and education systems that meet the needs of the people. Many citizens are conscious when it comes to the issues of food, culture, and terminal illnesses (Elson 2019). According to Hofstede’s cultural dimensions model, citizens of this country promote individualism and reduced power distance. The level of upward mobility has increased over the years.


The U.S. remains one of the leading hubs in the fields of innovation and technology. The government encourages its people to devise new solutions to the problems affecting humanity. Some giant corporations have emerged from this development, such as Google, Apple, Facebook, and Twitter (Schwarzl & Grabowska 2015). Modern technologies are currently being used to improve business procedures, including the preparation of food products, marketing procedures, and delivery systems. The use of drones is becoming common in the fast-food industry to transform service delivery. Consequently, more customers are becoming satisfied than ever before.

Market Analysis: Macro-Environment for Nigeria

Nigeria is one of the leading business destinations in the African continent. Within the past two decades, it has experienced some improvements in its democratic attributes (Anekwe & Purity 2019). Before deciding to invest in this developed country, the leaders at Yeo Valley should consider the issues described below.


The presence of a democratically elected president in Nigeria makes it a favorable choice. However, the current threat of terrorism is making this country less attractive. The main group, Boko Haram, has been affecting the flow of resources and finished products (Anekwe & Purity 2019). The end of military rule presented new opportunities for the construction of infrastructure and the establishment of effective government institutions. Elections are usually held regularly, thereby empowering the citizens to select leaders who can take them to the next level. However, there are specific issues that affect the democratic position of this country, such as the unfairness of elections and the absence of media freedom or rights.


The economy of Nigeria is one of the largest in Africa. In 2017, its GDP was recorded at around 375.8 billion US dollars (Callaway 2017). The economic growth rate has been less than 1 percent (Callaway 2017). Fortunately, the rate of economic growth has improved since 2000 (see Figure 2). However, the absence of proper incentives makes it impossible for more people to achieve their goals. The rate of youth unemployment is around 21.5 percent (Callaway 2017). This means that more people do not have jobs. The result is that such individuals might be willing or forced to engage in criminal activities. Companies that select this destination will benefit from the available and affordable labor. The current interest rate on loans and financial resources stands at 12 percent (Callaway 2017). Some banks will charge even 15 percent (Callaway 2017). These economic indicators have continued to discourage business activities and operations.

Nigeria’s economic growth
Figure 2: Nigeria’s economic growth (Callaway 2017).


Nigeria remains one of the most populated nations in the continent with over 200 million citizens (Callaway 2017). This is an opportunity for marketers planning to get more potential consumers or customers for their products. More people are interested in using telecommunication services. The presence of different ethnic groups makes this country very diverse. People support established hierarchies and groups in their respective societies. The major religions in this country include Islam and Christianity (Callaway 2017). Nigerians respect one another and maintain the required power distance.


In the recent past, many Nigerians have been on the frontline to embrace the use of computers and smartphones. The level of computer literacy has continued to increase significantly. A report released in 2018 revealed that the country had over 86 million active internet users (Anekwe & Purity 2019). Many successful corporations and firms were focusing on this trend to start and advertise their businesses successfully in this nation.

Marketing and Business Implications: United States

Competitor Analysis

In the United States, Yeo Valley stands a chance to face stiff competition from some of the leading players in the dairy industry, such as Alta Dena, Alto Dairy Cooperative, All American Foods, and Alpenrose Dairy (Mook, Whitman & Quarter 2015). However, many American countries appreciate quality products that add value to the customer. The increasing or large population is a positive indicator of potential positive performance. Within the past decades, the country has enjoyed smooth government transitions. This means that the political climate will continue to remain favorable for both existing and emerging business firms. Decision-makers and strategy formulators should be aware of the unique needs of the customers and the established guidelines for doing business. These measures will reduce the level of opposition and eventually make it possible for Yeo Valley to achieve its aims in this foreign country.

Demand Analysis

In the United States, the demand for dairy products has increased within the past few years. Amarasena (2017) indicates that the rate has improved by around 9 percent since 2000. More customers are willing to purchase healthy dairy products that are produced using ethical and sustainable methods. With such considerations, Yeo Valley can invest in this market successfully and attract more potential customers. The people would prefer quality products that are delivered using superior strategies (Mook, Whitman & Quarter 2015). The current population means that more people will be willing to purchase such products. In 2018, the industry accounted for around 19 percent of the entire global production (Elson 2019). This means that the sector is favorable and capable of meeting the needs of more investors. The attractiveness of this industry is also expected to continue increasing the level of competition.

Marketing and Business Implications: Nigeria

Competitor Analysis

Yeo Valley can invest in Nigeria and record positive results promptly. However, competition is a reality that this organization should not ignore. For instance, there are specific companies that operate in this market and provide quality dairy products to the targeted customers. Some of them include Viju Industries Limited, Chi Limited, Tetra Pak Limited, Promasidor, and Rimona Limited (Obisi & Gbadamosi 2016). Experts in this country have indicated that more players will continue to emerge in the coming days. Although many people in this country practice dairy farming activities, the demand for processed milk products remains high in this country (Obisi & Gbadamosi 2016). Such organizations engage in superior models to market their products to different customers. With this kind of information, it would be appropriate for Yeo Valley to consider the possibility of stiff competition and ensure that appropriate initiatives are put in place.

Demand Analysis

The demand for processed milk products in Nigeria has increased in the recent past due to the current level of population growth. However, some of the local companies have been unable to meet the demand in the current market. Around 66 percent of all dairy products are usually imported from foreign or neighboring countries (Obisi & Gbadamosi 2016). This is a clear indication that the current local production only meets around 37 percent of the market demand (Callaway 2017). This fact reveals that a foreign company that plans to invest in this country will be in a position to record positive results promptly.

Currently, Nigeria’s population consumes around 1.3 billion tonnes of milk-based products every year (Anekwe & Purity 2019). This scenario indicates that it is a huge market that can support the business model of any emerging or foreign company. A report released in 2017 by the Central Bank of Nigeria revealed that Nigerians use around 1.5 billion US dollars to import dairy products and milk (Callaway 2017). This fact has stood out as a potential cause of food insecurity in Nigeria. Over the years, the country has been relying on the oil sector as the leading source of revenues. Consequently, all the other sectors that have the potential to improve economic performance have been ignored.

Recommended Entry Modes

The nature of the targeted foreign market informs the most appropriate entry mode or strategy. This happens to be the case since the selected option needs to consider the political, cultural, and economic aspects of the selected country. Those pursuing such an initiative need to go further to consider the behaviors and spending tendencies of the people. The external and internal forces acting on the specific market should also become powerful sources of information (Ravelomanana et al. 2015). For the case of Yeo Valley, it will be critical to consider the issues described above and select the best choice. The decision should also be able to sustain performance and ensure that desirable results are recorded promptly. Leaders can consider the nature of the business, the targeted goals, and the most appropriate mode to ensure that the company achieves its goals.

United States

This country is stable and has favorable conditions that have the potential to deliver positive results. Its culture is more or less the same as that of the United Kingdom. This means that the company will record reduced levels of objection from American citizens. However, the physical distance is something that the leaders of Yeo Valley should not take lightly. With this kind of information, they can select the idea or concept of a franchise. Yeo Valley will consider the existing companies in the United States and form a partnership that can ensure that the costs for investment are quite low (Elson 2019). Such a model will empower this company to identify the right company that has established or existing operations in the United States. The identified franchise will acquire such products from Yeo Valley and market them successfully to the existing customers.

This kind of option will deliver positive results within a short period. Firstly, the issue of management will not be a major problem since the cultural differences between the two countries appear similar. Due to the small size of Yeo Valley, the option will minimize the required capital to start new operations successfully in the United States. Secondly, the idea of franchising will ensure that the speed of business expansion and growth in this foreign market is very fast. The company will overcome potential challenges that are associated with the establishment of a new business (Ravelomanana et al. 2015). Thirdly, the company will be in a position to enter successfully into tertiary and secondary markets. Such an initiative will make it possible for Yeo Valley to get more customers while at the same time maximizing profits.

Many Americans would like to associate with companies that are local and deliver quality to them. The decision to consider the power of a franchise will ensure that positive results are recorded promptly. The company will eventually record improved valuations and minimize the challenges or expenses incurred when planning to hire more employees (Amarasena 2017). With such an entry mode, Yeo Valley will be in a position to pursue its expansion goals and deliver high-quality products to more American consumers. The recorded profits and revenues will be used to improve operations and continue to add value to more customers. This approach will eventually make Yeo Valley a leading competitor in the global dairy industry.


The conditions in Nigeria are quite different from the ones recorded in the United States. Yeo Valley can focus on the above issues in an attempt to formulate the most appropriate model and eventually achieve the intended results. For instance, it is has been revealed that the largest percentage of dairy products and milk consumed in this country is imported from other countries (Obisi & Gbadamosi 2016). This trend reveals that the current production is insufficient and incapable of fulfilling the demands of the targeted customers. Yeo Valley can capitalize on this opportunity and consider the favorable political, technological, and economic conditions recorded in Nigeria.

With these insights, it would be appropriate for Yeo Valley to consider the power of foreign direct investment (FDI) as the best mode of entry for this destination. This approach means that Yeo Valley will start to analyze the market and eventually set up a new venture (Anekwe & Purity 2019). This means that it will have to consider the best location to start the foreign company and adhere to the established guidelines and legal frameworks. Yeo Valley will have to allocate adequate funds for this venture and consider the need to hire competent employees who can support the intended goals (Ravelomanana et al. 2015). The current population of Nigeria means that this organization will encounter minimal challenges or obstacles when trying to recruit the right workers to offer exemplary services to the people. It can consider the most appropriate procedures to introduce finished products into this market or start new processing plants.

Although this mode of entry is expensive, it is agreeable that Yeo Valley has enough financial and technological resources to pursue it. However, it will be necessary to complete timely feasibility studies to identify the right regions where there is no terrorism or other forms of disruption (Anekwe & Purity 2019). Another possible option for pursuing the FDI model is considering an existing company and purchasing it. Such an approach can make it possible for Yeo Valley to get adequate assets and minimize the challenges associated with setting up a new establishment. However, issues to do with management and supervision, raw material acquisition, and marketing should be launched effectively depending on the anticipated goals (Rackley 2015). The company will also have to consider whether to hire locals or expatriates to continue delivering the intended services. There is also a need to identify some of the possible challenges or problems that might emerge due to the presence of terrorists and organized crime groups in Nigeria. The level of Internet use is a powerful opportunity for Yeo Valley to identify specific online and social media platforms for advertising and informing more people about its operations (Schwarzl & Grabowska 2015). Such an approach will eventually deliver timely results in this country.

In each of these two countries, Yeo Valley will be required to follow the established guidelines, permits, and laws in an attempt to achieve its business aims. This decision is critical since it will ensure that this company’s operations are not disrupted for ignoring such requirements. It should go further to ensure that all activities and processes are pursued by the emerging demands for quality and sustainability (Fogel 2016). With such initiatives in place, Yeo Valley will minimize most of the possible predicaments that have the potential to disorient performance (Rackley 2015). The emerging needs or concerns of different stakeholders will have to be taken into consideration. Such a process will ensure that the intended goals are realized promptly. The company will eventually realize its objectives and continue to add value to the targeted consumers and stakeholders.


The above discussion has identified the United States and Nigeria as the best destinations for Yeo Valley to invest and continue pursuing its business aims. These countries have diverse cultural, economic, political, and technological forces that can disorient or promote business performance. With such issues in place, this company’s top leaders should select the above entry modes for each country if positive results are to be recorded. For the United States, a franchise appears to be the most appropriate since it will reduce investment costs and eventually deliver positive results promptly. In the Nigerian market, an FDI model will ensure that Yeo Valley establishes itself as a potential competitor in this foreign market and maximize the experiences of different local workers and potential customers. The concept of continuous improvement should be taken seriously to deliver positive results within a very short period.

Reference List

Amarasena, A 2017, ‘Current trends in the international business environment’, Universal Journal of Management, vol. 5, no. 8, pp. 381-394.

Anekwe, R & Purity, N 2019, ‘Sustainability in the Nigerian business environment: problems and prospects’, The International Journal of Business and Management Research, vol. 3, no. 3, pp. 72-80.

Callaway, K 2017, , Evans School of Public School and Governance, Web.

Council of Economic Advisors 2019, Economy reaches longest expansion in U.S. history in third quarter of 2019, beats market expectations, The White House Press, Washington, DC.

Elson, A 2019, The United States in the world economy: making sense of globalization, McMillan, Washington, DC.

2018, Web.

Fogel, DS 2016, Strategic sustainability: a natural environmental lens on organizations and management, Routledge, New York, NY.

Mook, L, Whitman, JR & Quarter, J 2015, Understanding the social economy of the United States, University of Toronto, London.

Obisi, C & Gbadamosi, AAO 2016, ‘Nigerian business environment daunting: challenges and suggested solutions’, International Journal of Scientific Research in Education, vol. 9, no. 3, pp. 144-150.

Rackley, J 2015, Marketing analytics roadmap: methods, metrics, and tools, Apress, New York, NY.

Ravelomanana, F, Yan, L, Mahazomanana, C & Miarisoa, LP 2015, ‘The external and internal factors that influence the choice of foreign entry modes at Wuhan Iron and Steel Corporation’, Open Journal of Business and Management, vol. 3, no. 1, pp. 20-29.

Schwarzl, S & Grabowska, M 2015, ‘Online marketing strategies: the future is here’, Journal of International Studies, vol. 8, no. 2, pp. 187-196.

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