Business Review of Sonnentor Organic Company

BusinessReview of Sonnentor Organic Company

Whydid Sonnentor go International?

Sonnentorhad literally taken over the Austrian market when it came toproduction and supply of organic products. However, the company stilldecided to go to the international market. The company wentinternational mainly through the decision that was made by itsfounder, Gutmann. He felt the need to grow his company and,therefore, the domestic market was not sufficient for the dream hehad for his company. Although the company owned at least half ofAustria’s market in organic tea and spices, the recent years hadseen many organic companies being established in Austria and the restof Europe. These companies produced almost the same products asSonnentor that included mainly organic tea and spices. All theseproducts brought up a competition for the shelf space of Sonnentor’sproducts. Finding a more diverse market internationally was thus theonly viable option. The company had had massive success in Munich thecity of Germany and therefore, Gutmann was confident that hisventure into the international market would succeed. Gutmann alsofirmly believed that a new generation had to take over for any systemto thrive. His kids were still too young, and none had shown anyinterest in the business. He desperately wanted to sustain hisbusiness by growing it internationally so that the business would bestable even after he was no longer involved in the running of thecompany. Another reason for going international was that the companywas looking for more raw materials, especially from Albania. This wasbecause Sonnentor was not supposed to run out of stock. Gutmann hadno intentions of making profit out of the international marketventure. His other reason was that he wanted to create more jobs forthe people in his community that he deeply cared for. By goinginternational, the company would be selling way more product as thedemand would have risen. This would have increased the volume ofproduction and thus Gutmann would be able to employ more workers.

Howwould you evaluate Sonnentor’s international marketing strategy?

Sonnentor’sinternational marketing strategy was almost similar to the domesticone. The founder, Gutmann felt that his company ought to have thecontact that is more direct with its consumers. The firstinternational venture Sonnentor did was to open up a retail shop inMunich. This shop was solely for selling all the Sonnentor’sdiverse products. Gutmann saw this as a way of introducing theconsumers to the Sonnentor world. The packaging of the products wasstill consistent with the smiling sun logo and the cheerful catchycaptions. The inclusion of pictures of farmers into the packaging wasalso an efficient way of relating with the consumers as they feltlike they knew where these products were grown from. All thesemarketing strategies ensured the success of Sonnentor in Germany andmost of the countries that it ventured into. The company also studiedtrends in the population of the different parts of the world anddetermined whether the country was into healthy living. Led to theventure into the Japan market where they saw a huge success althoughthey had to shut their business there due to conflict of principles.Gutmann has strict principles and codes of conduct when it comes tothe production and sale of his company’s organic products. Thismade Sonnentor highly successful especially in the European market asthe consumers felt like they could trust him. The policy that thecompany has whereby 5% of all the sales are invested back intomarketing activities is also another vital aspect that ensured thegrowth of this company in the international market. The opening ofthe online store in Germany was also a very good idea as it created ahuge convenience for many consumers who had no time to go all the wayto the shops. Sonnentor’s international marketing strategies were,therefore, efficient in that they attracted the attention of thecustomers they gained the trust of the clients and eventually wontheir hearts, which made them extremely loyal to the company, thefounder, and the products. These marketing strategies can, therefore,be employed for any business venture, and it would be a greatsuccess.