Global Marketing: Expanding into the International Market

This report focuses on the importance of global marketing for Morrison and its plans to expand into the international market. It discusses the market selection process, comparing India and China, and concludes that India is the more profitable option. The report also explores the market entry mode of merger and acquisition and outlines the marketing strategy, including product, price, place, and promotion.

GLOBAL
MARKETING

EXECUTIVE SUMMARY
The marketing is the most important thing for the company to get success. This is majorly
pertaining to the fact that if marketing will not be good then the consumer will not like the goods
and services of the company. Thus, in the present report the focus was on marketing in the
international market. The present report outlined the fact that expansion in international market is
very essential for growth and development of company. It is so because of the fact that Morrison
also wanted to expand in either India or China but with help of country analysis it was outlined
that India is more profitable. After that it was seen that merger and acquisition is a better method
to enter in Indian market. Also, it was seen that taking decision for market mix is very important
as this is the basis of success for company.

Table of Contents
INTRODUCTION...........................................................................................................................3
COMPANY OVERVIEW...............................................................................................................3
INTERNATIONAL MARKET SELECTION................................................................................4
Comparison of two markets........................................................................................................4
Market entry mode......................................................................................................................6
Marketing strategy......................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Global marketing is defined as promoting the goods and services on the international
level that is selling of the goods and services by the company in the international market
(Keegan, 2017). In the current competitive world the business is operated at the international
level that is globalizations is preferred. Under globalization the marketing is the mist essential
thing to survive in the highly competitive market. Thus, the present report is based on the
company Morrison who wants to expand in the international market. The Morrison is a chain of
retail stores and supermarket operating in most of the countries. In the present report the
discussion of the company will be done. Further the two markets will be outlined in which the
company want to expand. In addition to this the mode of entry will also be discussed that is how
the business will be entering in the new market.
COMPANY OVERVIEW
Morrison supermarket is a large chain of retail and supermarket stores which is
headquartered in Bradford in UK. The company was founded in the 1899 be William Morrison
and has approximately 500 stores all over the company. The major product and services in which
the company deals is the clothing, food and drinks, magazines and also has option of online
selling. The company is the fourth largest chain of supermarket with a high market share. Almost
every week around 11 million consumer passes through the stores of Morrison (Morrison, 2020).
The major strategy of the company is to be competitive and this is majorly because of the reason
that because of globalization the competition is very high and it is necessary for attracting the
consumer to use a good amount of marketing strategies and techniques.
In the present case the company that is Morrison wants to enter either in India or in
China. The major reason for Morrison to go for internationalisation is the growth and expansion
of the business. It is so because of the reason that when it comes to working the company at the
international level is that this will provide for a wide variety of the consumer and this will
increase the market share of the company. Also, this will help the company in growing and
operating in the other country. The major reason for Morrison to go in the international market is
to earn good amount of profit and to increase the sales of the company. This is due to the fact
that when the company operates in the international market then the new consumer is attracted

towards the company and this increases the market share and number of consumers of the
company.
Thus, in turn this increases the goodwill of the company because when the company
operates in the international market the goods and services are of good quality then the consumer
like this and this increases the goodwill of the company in the international market (De Mooij,
2018). Also, the major reason which triggered Morrison to enter in India or China is that here the
consumer is much attracted and influenced towards the use of the international product and
product belonging to international brand. Morrison is good international product which has a
good brand image and is liked by many of the consumers.
INTERNATIONAL MARKET SELECTION
Comparison of two markets
The market is a place where the goods and services are sold by the company and the
goods and services are consumed by the consumer in exchange of the money which is provided
to the company. The market need to be very good and large because if the market will be small
then the consumer will be less and this will restrict the sales of the company. Thus, it is very
essential for the company to thoroughly analyse the market in which the company is operating.
This is due to the reason that if the consumer will not like the goods and services of the company
then the sales of company will be very low. Thus, before entering in to India and China it is very
essential for Morrison to have a through market research of both the countries.
Basis India China
Political factors The political condition of the
country is stable and good and
the government of country not
interfere in the working of the
company to a great extent.
Thus, this can be a positive
aspect for Morrison to enter in
India.
In China the political
condition is also stable and not
fluctuates to a great extent.
But in China the tax rates a
high and this may affect the
profitability of the company if
it enters in China (Kim,
Hulland and Eom, 2018).
Economic factor India is also a developing
country and here also it will be
The economy of the country is
developing country and if the

beneficial for the Morrison to
enter because here the labour
and resources is provided at
lower rate and this will reduce
the cost for the company if
they operate in India (Quelch,
2017).
money is invested in India
then it can be profitable for the
company to a great extent.
This is because here the
purchasing power of the
consumer is increasing to a
little extent and this will be
beneficial for the country.
Social factors This is the most beneficial
point for Morrison to enter in
India because the major trend
in this country is towards the
use of branded and foreign
products and this will increase
the sales of the company to a
great extent.
In China as well the latest
trend among the consumer is
to use the good and high
quality product and services.
Thus, this will be an
opportunity for the company
to expand in China.
Technological sector Here in case of technology
India is not much
technologically developed and
if India will get an opportunity
to have an international brand
in the country then they will
be ready to adapt to any of the
technology at lower rates and
this will be beneficial for
company as this will decrease
cost for the company.
On the other side China is
much advance in technology
as compared to India and here
it might be possible that the
China might be having high
price for the adaption to the
technology as they are also
having some of the
technology.
Thus, after this comparison it is clear that India is a better market for Morrison to expand
its business. The major reason underlying this fact is that in India the labour and resources are
provided at a lower rate as compared to China. Also, the technology is much cheaper in India in

comparison with China and this will reduce the cost of the company. Also, population of India is
much more attracted towards the use and consumption of the international branded products
(Zaveri and Amin, 2019).
Market entry mode
There are many different methods through which a company can enter in the other market
to do and operate their business. This is majorly because of the reason that the business can enter
in any of the way like direct selling or through merger and acquisition, joint venture and many
other different methods. The different options being available for Morrison to enter in India are
as follows-
Joint venture- under this method Morrison can join hands with any of the related firm
which local to the company. The major advantage of this method is that under this method the
alliance is made for a specific purpose and as the purpose is over the alliance finishes
automatically.
Merger and acquisition- this is also another method for Morrison to enter in India and
through this method either the company will merge with other similar local company or will
acquire or purchase some local company. In this way the company will get all the control over
the company and will make the company operate in their way and in according to their working
culture.
Export- this is another common method through which the company will make the goods
and services in their own country and then sell it in the Indian market. Then major benefit of this
method is that the company perform its operation in their own country with their own rates and
charges.
But the best method for Morrison to enter in India is with help of merger and acquisition.
The major reason underlying this fact is that in merger and acquisition the company does not
have to take much efforts and the product and services are sold through the local companies.
Here the company just have to make investment within the company and then in turn will earn
huge profits (Ramadani and Gërguri-Rashiti, 2017).
Marketing strategy
The market strategy is referred to as the way or method through which the company will
launch its product and services in India. This includes the marketing mix that is deciding the
product, price, place and promotional techniques to be used to launch the product and services in

India. The marketing mix of the company is as follow which they will use at time of expanding
the business in India-
Product- this refers to the product or the services which the company will use to expand
within the market (Baena, 2019). Here the product involves the chain of supermarket and retail
store and this will be opened up in India as well. This includes brand like Cellar, NuMe, Just for
Kids, fresh food product, and other food and related items. The product offer includes a wide
variety of range for the consumer and the quality of the food and other goods is of superior and
high quality food.
Price- this is the most important thing and is referred to as the amount of money which is
charged to the consumer in exchange of the goods and services which are being provided to the
consumer. The major profitability of the company depends over the price being charged by the
company to the consumers. The pricing strategy used by Morrison at time of expanding in India
is the penetrating pricing method. This is selected because the population of India does not spend
much and for this company charges low price and as the company will penetrate in the market
they will increase the price.
Place- the place is referred to as space or area from which the company operates and
provide its goods and services to the consumers. This can be in many forms like direct selling,
through intermediaries, own stores, online and many others. The major place of distribution of
the goods and services being selected by the company is physical stores and the online store.
This is majorly pertaining to the fact that in current competitive world the online selling is
increasing so company also provide option of online selling to the consumers of India.
Promotion- this is the most important thing and the basis of success for the company
because if the goods and services of the company will not be promoted in effective manner then
the consumer will not get knowledge of the product of company. This is majorly because of the
reason that the promotional activities and the techniques guide the consumer about the details of
the company and its product and services (Kasemsap, 2016). For the promotion on India
Morrison uses the method of advertising through print media and the method of social media
advertising. This is majorly because of the reason that the use of social media technology is the
latest method of promoting the goods and services among the large section of consumers.

CONCLUSION
In the end it is summarised that use of global marketing is very essential for the company
because this increases the market share and consumer awareness of the company among the
consumers. The current report stated that internationalisation is very essential in this highly
competitive market. This is majorly because of the reason that this will increase the profitability
of company to a great extent. The report stated that Morrison wanted to expand its operation in
India and China but with help of its analysis it was found that India is more suitable for the
expansion. Also, the market entry mode of merger and acquisition is better. Also, it was found
that deciding the marketing mix in advance is very helpful for the company.

REFERENCES
Books and Journals
Baena, V., 2019. Global marketing strategy in professional sports. Lessons from FC Bayern
Munich. Soccer & Society. 20(4). pp.660-674.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
Kasemsap, K., 2016. Implementing electronic commerce in global marketing. Encyclopedia of e-
commerce development, implementation, and management, pp.591-602.
Keegan, W.J., 2017. Global marketing management. Pearson India.
Kim, S.H., Hulland, J. and Eom, H.J., 2018, July. USE OF ITEM RESPONSE THEORY IN
MARKETING RESEARCH. In 2018 Global Marketing Conference at Tokyo (pp. 1503-
1503).
Quelch, J.A., 2017. Global marketing management: a casebook.
Ramadani, V. and Gërguri-Rashiti, S., 2017. Global marketing, gender and family business in
Asia: A literature review. Journal of Global Marketing. 30(3). pp.138-146.
Zaveri, B.N. and Amin, P.D., 2019. Global Marketing Strategy in Digital Era: Global Online
Presence. In Breaking Down Language and Cultural Barriers Through Contemporary
Global Marketing Strategies (pp. 103-112). IGI Global.
Online
Morrison. 2020. [Online]. Available through: < morrisons-corporate.com/about-us/strategy/>