International Marketing Analysis New Zealand 2022

International marketing
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Contents
Introduction...................................................................................................................3
1.a. PESTLE analysis of Domestic and international business environment of Burger
Fuel...............................................................................................................................3
1.b. Contribution of international marketing to the world economy..............................5
2.a. Product Life Cycle Theory.....................................................................................6
2.b Benefits and challenges of franchising as a mode of market entry........................7
3. Critical evaluation of trends in international marketing.............................................8
4.Emerging marketing opportunities in the Asia Pacific region which may benefit
Burger Fuel...................................................................................................................9
Conclusion..................................................................................................................10
References.................................................................................................................11
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Introduction
Firms continuously try to expand their market share. A good way to expand is to enter
international markets where demand is unsaturated and there are more opportunities for
business (Czinkota, 2014). With globalisation of the world trade scenario, many large
companies view overseas expansion as an ideal way to increase sales, profit and market
share’
Burger Fuel is a New Zealand burger restaurant company with franchises in New Zealand
and many other parts of the globe. The firm is headquartered in Ponsonby in New Zealand
(Burger Fuel, 2019), Burger Fuel was established in 1995 and has been well received in
New Zealand. The firm has been trying to establish in the global markets under the name
Burger Fuel Worldwide. The firm has restaurants in UAE, US and Saudi Arabia (Burger
Fuel, 2019). Following is an analysis of international marketing opportunities for Burger
Fuel.
1.a. PESTLE analysis of Domestic and international business environment
of Burger Fuel
PESTLE (Political, economic, social, technological, legal and environmental) analysis is a
management tool to understand the external environment in which a company functions
(Bamford & West, 2012). Following is an assessment of PESTLE analysis of Burger Fuel
in domestic and international market.
Political Factors
Domestic market- The political system in New Zealand promotes growth of hospitality, food
and beverages industry (Odendaa, 2019), However, firms have to abide by food safety,
customer safety and workforce related norms.
International market- Many countries especially those in the emerging markets of Asia,
Africa and South America encourage forgiven direct investment (Parboteeahm, 2017).
Therefore, political systems of these countries support expansion.
Comparison- There is support for the industry in both domestic and international markets.
However, chances of expansion in international markets are high because of Government
focus on growth and FDI.
Economic Factors
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Domestic- economic system in New Zealand supports free trade (Odendaa, 2019).
Disposable income of people is high. Therefore, economic opportunity for the company is
high. However, tough competition with global giants like McDonalds and Burger King are
fast saturating the market
International Market- Disposable income and demand patterns in the international
emerging markets is rising (Parboteeahm, 2017). Due to this the growth potential is higher
in this market despite the global competition.
Comparison- There is more potential of growth of profits and sales in the international
market
Social Factors
Domestic markets- There is a trend away from unhealthy food (Cavusgil, 2014). Due to
this the market demand is saturating for Burger Fuel which mostly serves fast food.
International markets- There is a trend away from unhealthy food in the international
markets as well. However, the scale of this trend is much lower (Smith, 2016). Therefore,
the markets have an opportunity to expand
Comparison- There is comparatively more social trend for fast food in international markets
as compared to domestic markets.
Technological Factors
Domestic Markets- The firm is established in the domestic market. Therefore, the
technology it used is sophisticated and up to date (Burger Fuel, 2019). Therefore, much
investment is not required in technology.
International Markets- The firm may find some of the emerging markets a bit low on
technological advancement and infrastructural development (Parboteeahm, 2017).
Therefore, the firm will have to spend more on technology.
Comparison- Large amount of technological investment in terms of machinery, equipment
and training is required for expansion to international markets as compared to domestic
markets (Cavusgil, 2014)
Legal Factors
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