MKT 711 Week 6 Global Marketing and Customer Relationships Example

From Wisconsin to Minas Gerais: Global Marketing and Customer Relationships in a Dairy Sensor Firm's First Foreign Market

[Student Name]

University of Phoenix

MKT/711: Marketing and Managing the Customer Relationship

Week 6 Assignment

[Instructor Name]

[Date]

HerdSense Technologies, its partners and its market research are composites written for a model paper.

HerdSense Technologies, the composite Madison maker of dairy cow sensors studied in this course, has about 1,400 US customer farms and 410,000 monitored cows. Its investors have asked for a plan to enter a first foreign market within two years. Two candidates have emerged from early discussions: the Netherlands, home to large, highly efficient dairy farms and to several established herd monitoring firms, and Brazil, one of the world's largest milk producers, where many farms in the southeastern state of Minas Gerais are modernizing. This paper reviews research on internationalization and global marketing, compares the two markets and recommends an entry strategy that builds on HerdSense's relationship model.

Internationalization Through Networks

Johanson and Vahlne (2009) revised their Uppsala model of internationalization to argue that markets are networks of relationships, and that the main obstacle for a firm entering a foreign market is being an outsider to the relevant networks, which they called the liability of outsidership. Internationalization proceeds as firms build trust and commitment with partners, learn and create knowledge within relationships and increase their commitment step by step. The model fits HerdSense, whose domestic success depends on dealers and veterinarians.

Export Strategy and Performance

Cavusgil and Zou (1994) studied US export ventures and found that performance was linked to marketing strategy choices, including adapting products to foreign markets, supporting foreign distributors or subsidiaries and the firm's international competence and commitment. Firms that adapted products where needed and supported their partners strongly tended to perform better. The finding supports adapting HerdSense's offer and investing in its foreign partners rather than shipping collars to a distributor and waiting.

Brand Origin and Globalness

Steenkamp et al. (2003) found that consumers in several countries associated perceived brand globalness with higher quality and prestige, which increased purchase likelihood. In business markets, a foreign origin may also signal technical capability. American agricultural technology carries a reputation in Brazil, though price sensitivity is higher than in the Netherlands.

Comparison Criteria

The two markets were compared on six criteria: market size and growth, competitive intensity, fit between HerdSense's product and local farms, availability of relationship partners such as dealers and veterinarians, economic and currency risk and regulatory requirements, including data rules.

The Netherlands

The Dutch dairy sector is large for its land area and highly technical, with high adoption of milking robots and monitoring. Fit with HerdSense's product is good. But competition is intense, with established firms whose products are integrated into robots and farm software, and Dutch farmers have strong relationships with these suppliers. HerdSense would enter as an outsider in a dense network with little room. European data rules would also require careful compliance.

Brazil

Brazil has a very large number of dairy farms, many small and pasture-based, but a growing group of mid-size and large confinement farms in Minas Gerais and neighboring states is investing in technology. Competition in sensors is less established. Fit is good for confinement and semi-confinement farms with 200 to 1,500 cows, similar to HerdSense's most valuable US segments. Risks include currency swings, which make dollar prices volatile, higher price sensitivity and different heat and disease conditions.

In the Netherlands HerdSense would be one more outsider in a crowded network; in Brazil it can help build the network.

Customers and Buying Behavior in Brazil

Interviews arranged by a prospective partner with 18 farm managers in Minas Gerais suggest how buying differs. Decisions are often made by the owner, sometimes with the farm's veterinarian, and relationships with equipment dealers are personal and long-standing. Managers asked about financing more than about features, and several wanted proof from farms nearby before committing. Many used messaging apps rather than email to communicate with suppliers. These patterns favor a dealer-led, relationship-based approach and suggest that local reference farms will matter even more than in Wisconsin.

Competitors in Each Market

In the Netherlands, the leading monitoring systems are sold with milking robots and are deeply integrated into farm software, so a farm switching to HerdSense would lose that integration. In Brazil, competitors include a few international brands sold through distributors and some local startups, none with a dominant position among mid-size confinement farms. This difference in competitive structure, more than market size, drives the recommendation.

The Decision

The comparison favors Brazil. The Netherlands scores higher on technical fit but much lower on competitive room and partner availability. Brazil's mid-size confinement farms resemble HerdSense's US dealer-served farms, where Week 2 found the highest value per cow, and the liability of outsidership is easier to overcome where networks are still forming.

Entry Mode

HerdSense should enter through a partnership with an established Brazilian distributor of dairy equipment with technicians in Minas Gerais, rather than through a subsidiary. The partner brings relationships with farms and veterinarians. HerdSense will station two of its own staff, a dairy scientist and a technical manager, with the partner for the first two years.

Adaptation

The software will be translated into Portuguese, with alerts adjusted for heat stress, which is more common in Brazil, and for breeds such as Girolando, a crossbreed common in the region. Pricing will be set in Brazilian reais, with hardware financing through the partner and subscription prices about 20 percent lower than in the United States, reflecting lower farm margins. Support will follow the US dealer model, with the partner handling installation and first-line help.

Building Relationships Abroad

Following the revised Uppsala model, HerdSense will commit gradually. Year one focuses on 40 pilot farms selected with the partner and two veterinary practices, with results shared at regional field days. Year two expands to 300 farms if pilot retention exceeds 85 percent. The dairy scientist will work with Brazilian universities that run dairy extension programs, building credibility within the local knowledge network.

Measuring Success Abroad

The Brazil venture will be judged on pilot retention, alert accuracy for local breeds, average revenue per cow in local currency and the number of farms referred by pilot participants. These measures mirror the US dashboard while reflecting local conditions.

Ethics and Data

The Week 5 data stewardship policy will apply in Brazil, adapted to Brazil's general data protection law, with farmer ownership and consent as in the United States.

Risks and Learning

Currency risk will be partly managed by local pricing and periodic adjustments. Partner risk will be managed through clear performance terms and HerdSense's own staff on site. The pilot is designed to learn: alert accuracy for local breeds, retention and willingness to pay will be measured before larger commitments.

Conclusion

Research on internationalization through networks, export strategy and brand globalness suggests that HerdSense's first foreign market should be one where it can join and build relationships rather than fight entrenched incumbents. Brazil's modernizing dairy region offers that opportunity. A partner-led entry with adapted product and pricing, HerdSense staff on the ground and staged commitment extends the firm's relationship model abroad while limiting risk.

References

Cavusgil, S. T., & Zou, S. (1994). Marketing strategy-performance relationship: An investigation of the empirical link in export market ventures. Journal of Marketing, 58(1), 1-21. https://doi.org/10.1177/002224299405800101

Johanson, J., & Vahlne, J.-E. (2009). The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership. Journal of International Business Studies, 40(9), 1411-1431. https://doi.org/10.1057/jibs.2009.24

Steenkamp, J.-B. E. M., Batra, R., & Alden, D. L. (2003). How perceived brand globalness creates brand value. Journal of International Business Studies, 34(1), 53-65. https://doi.org/10.1057/palgrave.jibs.8400002