Assignment on Global Marketing Solved

Global
Marketing

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................4
1. INTRODUCTION.......................................................................................................................5
BACKGROUND.............................................................................................................................5
2.Market analysis: ......................................................................................................................5
2.2 Population.............................................................................................................................7
2.3 Market barriers and drivers:..................................................................................................8
3. Organisational analysis:..........................................................................................................8
3.1 Customer Audit and Buyer Behaviour..................................................................................9
3.2 4P’s:.....................................................................................................................................11
3.3 Competitor Analysis:..........................................................................................................13
3.4 Competitor Advantage of your Product (perhaps – the USP).............................................14
3.5 Positioning Map of Competitors ........................................................................................14
4. Macro environment...............................................................................................................17
4.1 Porter five forces model......................................................................................................19
4.2 Value Chain.........................................................................................................................21
4.3 BCG Matrix:........................................................................................................................22
5. SWOT Analysis....................................................................................................................24
6. Conclusion.............................................................................................................................26
7. REFERENCES..........................................................................................................................27

EXECUTIVE SUMMARY
The current report is about the global marketing which is a chain of activities for
adjusting the strategies in an organisation by adapting the conditions of a particular nation.
Global marketing is more than just selling of product and services in international market as it
involves adoption of practices for offering products as per the culture and manner in which they
get accepted by the customers. This report focused over Baker's delight which is headquartered
in Australia and also maintains a chain of operations in New Zealand and Canada. Now,
company is planning to expand its operations within Asian market by approaching Sri Lanka.
For this, it has performed market analysis in order to determine the challenges and opportunities
present within the market of Sri Lanka regarding setting up of bakery's delight using several
models such as Porter's five force model, Pestle analysis. From this it has been found country is
not much flexible in term of adopting technological changes and also there is a price control
policy to save economy which affect the profitability level of the companies which is a negative
factor for the organisation. In addition to this the competition is relatively higher within the
industry and buyers have high bargain power. Hence to deal with this, Baker's Delight must
focuses over improving their operations to reduce the cost of company and also must regularly
evaluate the competitors strategies so that actions to deal with this can be formulated. Despite of
this, it has been identified that Sri Lanka has greater growth opportunities for the Barker's
Delight as the suppliers power if low which make easy availability of raw material, literacy rate
is higher that make employment of staff easier and country is good in FDI that ensure easy
availability of fund.

1. INTRODUCTION
Global marketing is very much important aspect for an organisation and enables to adjust
and evaluate the marketing strategies as per the particular nation. Global marketing is very much
broad concept and includes the process of selling, creating and positioning by promoting
products in the global market. Large organisations usually perform research and development
practices before expanding into foreign market in order avoid risk factors present and gaining
knowledge regarding the market in which they are entering. This report is based on Baker's
delight which is well known brand in Australian franchise chain with local outlets in new
Zealand and Canada. That organisation was established in year 1980 and it has over 700 bakeries
in the whole world and now organisation aimed to expand its business within Asian market by
entering into Sri Lanka in order to offer Fresh baked products (ABOUT BAKERS DELIGHT,
2019). This report is based on the identification of several market opportunities and challenges
that are present in the market for expanding business. Before entering into market, evaluation of
threats are being performed along with major skills and capabilities that are required before
entering into international market. For that project, Sri Lanka is considered for expanding the
business practices of Baker's delight in Asia which is suitable country as it is considered as one
of large market and 58th most populous country in which people of all age group people lives.
But before entering into the market of Sri Lanka an evaluation over market will be performed to
determine several opportunities as well as challenges present in market so that expansion can be
performed in effective manner (Bahadir, Bharadwaj and Srivastava, 2015). For performing this
several models will be such as Porter's five force model, Pestle, BCG matrix, Value chain model
and SWOT analysis. After performing this investigation using these models for research and
development, the baker's delight will be able to take decision regarding expansion in particular
nation.
BACKGROUND
2.Market analysis:
Today, the expansion of global bakery product industry is growing at rapid pace and its is
forecasted to reach up-to 7.0% p.a. In the upcoming years. The market of Sri Lanka is also
growing fast and it has been identified that the market share of bakery product grown up to
14.8% which is very high and provide a greater market growth opportunities to the businesses

that are trying to enter in market of Sri Lanka (World Bakery Product Market, 2019). This is
because demand is higher among customer regarding the bakery product which support
businesses in getting easy acceptance with in the market. In addition to this, the market potential
rate of Sri Lanka in terms of bakery product is around 0.15%. But despite of all these positive
factors regarding the Sri Lanka bakery market, these also brings up several tough competitions
from the rivalries that are already operating in country. This includes perara & sons which is a
big giants in market of Sri Lanka. This country is an upper middle income nation which is
located in the south Asia and it is one of most suitable for the marketers to establish in that
market because it is one of income and population based organisation. It has 88.7 billion dollar
GDP and Per capital income is 4100 billion dollar in year 2018.
2.1 Size of market and growth rates:
The potential market size of that industry or organisation that are GDP at constant price
in the first quarter of 2018 recorded USD 13115.84 million that is very much potential for
organisation to deliver one of best value to the ultimate consumer base. With the economic
growth rate in the first quarter in year 2018 estimated as 3.2% in comparison to the other nations
(Food & Beverage market in Sri Lanka on high growth path, 2014). From the last decades the Sri
Lankan food and beverages industry and their outputs grown rapidly.
(Source: Bakery Industry Market growth rate in Sri Lanka, 2019)
Sri Lanka is a developing city which covers a wide range of urban areas and the growth
rate of Bakery industry is rapidly increasing, which represents that the business expansion in Sri
Lanka related to Bakery industry has wide future growth. The increasing interest of people
related to bakery products will support the market growth. In the market of Sri Lanka the
Illustration 1: Bakery industry market growth rate in Sri Lanka

demand of bakery product is high as there is major population is lies over consuming bakery
products, so the growth of bakery industry is high in Sri Lanka.
2.2 Population
Sri Lanka is an island country in South Asia which is located in Indian Ocean. As per the
population analysis of the report of 2019, the estimated population of Sri Lanka is around 21.32
million which is less than the population of 2013. Sri Lanka is also a developing country which
covers most dense areas that are lying on urban cities (Beck, Chapman and Palmatier, 2015). Sri
Lanka hosts a impulsive age structure which involves a wide age bracket of 25 to 54 years old
people who are basically dominating the country. In Sri Lanka around 42.6 percent of the
population is lying in the age bracket of 25 to 54. The wide part of the Sri Lank us lies on the
working population, so the idea of Baker's Delight to expand in Sri Lank will be effective for the
firm in attainment of higher growth and success, thus in the market of Sri Lanka working
population is high which could be resulted in developing opportunities for the business (Sri
Lanka Population 2019). The population of the Sri Lanka in 2018 is 20,950,041 that is one of
large proportion of the people resides in the whole world.
2.3 Market barriers and drivers:
For an industry while entering into new market they have to closely understand the
market barriers and drivers to remain always competitive by giving best products and services
(Griffith & Hoppner, (2013). In context of Baker's Delight they conduct the through research
and development to evaluate the major factors that hinders or foster the market while enter with
the Products of Baker's delight to remain always competitive that are as follows:
The Drivers:
The major drivers of the market of Sri Lanka are the high rate of GDP that helps to
enhance the per capita income of consumers to purchase one of best products and services. With
the support of World bank the government of Sri Lanka can be able to get the fiscal reforms,
improve the financial management and helps to enhance the both public and private support. In
context of Baker's Delight with the help of growing and high ratio of income of people they can
be in best manner operates in business environment to achieve desirable outcomes (Horner and
Swarbrooke, 2012). Apart for the tariffs, duties and taxes that are responsible to importer that
includes the excise duties, national building tax and special commodity levy and value added