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1.    Does your product have an international brand?

Yes, Doritos is an international brand. And the level of international involvement is global. Doritos is being sold in at least 37 countries as per 2013, when they started their first global campaign (Schulz, 2016). in the appendix, you can see exactly how much market share they have in some countries, and the country with the highest market share is Hong Kong, China (euromonitor, 2016). They are the third in the market in Hong Kong, to be specific, which you can see in the 2^nd appendix (euromonitor, 2016).

I am sorry, but I could not find the market entry strategy that Doritos employs, neither that of their parent company PepsiCo.

There are definite indications that Doritos applies different positioning to different countries. The easiest to look at would be how the change the name of some of their products in different countries. Take the flavour “Cool Ranch” for instance. It is called ‘Cool Ranch’ in the U.S. but it is called “Cool American” here in the Netherlands. There are also all kinds of different flavours available in some countries that are not available in others. A good example of this would-be Doritos Taco; which is only available in Japan (Taquitos, 2016).

2.    Do you see evidence of impact of the recent international turmoil (e.g. Ukraine Crisis/ trade with Russia, ISIS in the Middle East, War in Israel/Gaza, Ebola virus in Africa, Argentina bankruptcy, “Brexit”) on your company and/or your product?

I could not find any evidence that these crises or turmoil had an effect on Doritos. Of course, something like the Brexit would lead to a loss in revenue because of the massive drop in the stocks, which caused the pound to fall massively. With the lessening of the value of the pound also comes the fact that you receive a smaller amount of value for the same product, which means that at this point Doritos in the U.K. would see a decline in profit. The U.K. however is but one country where Doritos is sold, so whilst it is disturbing that they probably lost some possible income there I wouldn’t count it as truly having an “impact”.

3.    Which international legal forces (government policies, tax regulation) have an impact on the marketing position of your product. Try to find at least three national or international relevant laws.

Import taxes must be paid over any goods that are shipped across borders, which makes it more difficult and costly to ship your goods to other countries, this is a distinct disadvantage of being a global company, and is something that definitely affects Doritos. There are exemptions to the rule, such as within the EU borders, but since Doritos is an American company they will have to pay the costs whenever they enter the EU.

On the positive side, Hong Kong, which, as we’ve seen has the highest market share for Doritos, one of the lowest tax rates and simplest tax structures in the world. to top it off imports into the region are tax exempt (with some exceptions.) this, then, has a positive impact on the marketing position of Doritos. (customs.gov.uk, 2016)

Here in the Netherlands the taxes you have to pay on luxury goods is 21%, which is what I expected needed to be paid for Doritos. However, you only need to pay 6% over the price which is a good thing because it allows them to sell the product cheaper, or at a higher price, but retain more of their earnings. Either way it has a positive effect. (belastingdienst, 2016)

Bibliography

belastingdienst. (2016, December 22). Voedingsmiddelen. Retrieved from http://www.belastingdienst.nl: http://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/zakelijk/btw/tarieven_en_vrijstellingen/goederen_6_btw/voedingsmiddelen/voedingsmiddelen

customs.gov.uk. (2016, December 22). Import and Export Clearance. Retrieved from http://www.customs.gov.hk: http://www.customs.gov.hk/en/faqs/cargo_clearance/clearance/index.html

euromonitor. (2016, December 22). Brand Shares (Umbrella – Historical Owner) | Historical | Retail Value RSP | % breakdown. Retrieved from http://www.portal.euromonitor.com: http://www.portal.euromonitor.com.saxion.idm.oclc.org/portal/statistics/tab

euromonitor. (2016, December 22). Brand Shares (Umbrella – Latest Owner) | Historical | Retail Value RSP | % breakdown. Retrieved from http://www.portal.euromonitor.com: http://www.portal.euromonitor.com.saxion.idm.oclc.org/portal/statistics/tab

Schulz, E. (2016, December 22). Doritos launches first global campaign. Retrieved from adage.com: http://adage.com/article/news/doritos-launches-global-campaign/240173/

Taquitos. (2016, December 22). Doritos Taco (Japan). Retrieved from http://www.taquitos.net: http://www.taquitos.net/chips/Doritos-Taco-Japan-Frito-Lay