Global Marketing Management

This paper aims to increase understanding of global marketing strategies and issues faced by organizations. It includes a case study on Marks & Spencer and an essay on Hilton Food Group.

Running head: GLOBAL MARKETING MANAGEMENT
Global
Marketing
Managemen
t
March 13
2019

GLOBAL MARKETING MANAGEMENT 1
Table of Contents
Overview....................................................................................................................................2
Task 1.........................................................................................................................................2
Globalisation..........................................................................................................................2
Reasons Organisations go Global..........................................................................................2
Overview of Marks & Spencer..............................................................................................3
External and Internal Environment Analysis.........................................................................3
SLEPT Analysis.................................................................................................................3
SWOT Analysis.................................................................................................................4
Impact of Going Global on Marketing...................................................................................5
Competitive Advantage of Marks & Spencer........................................................................6
Porter’s Generic Strategies.................................................................................................6
Importance of Product Innovation.........................................................................................7
Protecting Innovation.............................................................................................................8
Porter 5 Force Framework.....................................................................................................8
Task 2.........................................................................................................................................9
Hilton Food Group.................................................................................................................9
Factors that Facilitate Internationalisation of Hilton Food Group.........................................9
Global Market Potential.......................................................................................................10
Risk and Issues of Internationalisation................................................................................11
Mitigating risk in Internationalisation..................................................................................11
Global Segmentation............................................................................................................13
Marketing Mix.....................................................................................................................13
Communication Strategies...................................................................................................14
References................................................................................................................................16

GLOBAL MARKETING MANAGEMENT 2
Overview
This paper intends to increase the understanding regarding issues experienced by the
organisations in the world, when applying global marketing strategies, comprising issues
related to internationalisation. The paper is composed of two tasks- Task 1 is a case study
based on Marks & Spencer, and Task 2 is an essay based on Hilton Food Group.
Task 1
Globalisation
Globalisation is the procedure of collaboration and incorporation among the governments,
businesses, and people of different countries. It is considered as the procedure driven by
international investment and trade and assisted by information technology. This procedure
influences the environment, political systems, prosperity, culture, physical well-being, and
economic development across the world (McCann, 2018).
Reasons Organisations go Global
New Revenue Potential
The successful expansion of the business operations at the global market support company in
generating more revenue because it allows business to fulfil the demands of new customer
base at an international level (Jones, 2010).
Learning New Culture
Visiting new places and getting familiar with its culture supports business in understanding
the behaviour of the customer in a better way. Understanding people of different nation allow

GLOBAL MARKETING MANAGEMENT 3
the company to think from a new perspective and will let in adequately meeting the demands
of the customers (Jones, 2010).
Background of Marks & Spencer
Marks & Spencer is an international retailer with headquarter in London. The company is
involved in selling home products and clothing. The company was founded in 1884 by
Thomas Spencer and Michel Marks. It provides high-quality homeware, food, and fashion.
Marks and Spencer now is considered as the leading fashion retailer across the world (Marks
& Spencer, 2019a).
External and Internal Environment Analysis
SLEPT Analysis
Socio-Cultural Factors
The forces that affect the operations of the businesses in the industry are altering values and
generation shift (baby boomer age group is retiring, which is shifting the focus of companies
on Millennial and Generation X). Different generation carries visible changes in their
behaviour, from their habits of shopping to the use of technology for the purchase of products
(S&P, 2018).
Legal Factors
Different legal factors influence the operations of the retailers in the market are
environmental, safety and health regulations, antitrust, consumer rights, etc. Marks &
Spencer has taken one initiative that is ‘Behind the Barcode’, which offers patrons an
experience of omnichannel by allowing them to place the order through an online website or
in-store collection by product scanning.
Economic Factors

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In 2008, during the financial crisis, while opponents like Tesco, Asos, or Aldi followed the
discounted strategy of pricing, M&S concentrated on increasing customer satisfaction
through higher product quality (Vaugham, 2012). Whereas, this approach headed to a decline
in the sales for the short-term, but experienced increased customer satisfaction for the long-
term because of the desires and preference of the British customer to look at quality and
value.
Political Factors
As per experts, M&S has been affected by the free trade agreement of the European
Commission that has stemmed in easy imports of the goods and reducing sourcing cost
(Vaugham, 2012). Due to the higher structure of cost, business has experienced a decreasing
market share situation while entering in the new markets.
Technological Factors
Marks & Spencer is in a strong strategic position that supports it in availing the benefits of
the altering media landscape, the transmission of social networks and a growing mobile trend.
Considering its fashion division, the speed at which the newest drifts are being transferred to
creators has augmented, as has the speed of transportation.
SWOT Analysis
Strength
A clear image of the brand – M&S has high-end value brand image, which targets the
premium customer segment in the market. In accordance with its model in the market, it
offers modern, sophisticated, and stylish products (Bhasin, 2018).
Innovations – With the operations of 150 years, M&S has been in the race of intense
competition due to its spirit of innovation. Innovation in the company is also identical to

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communication, people, and creativity across levels is stimulated to think more about new
ideas and suggest whenever possible.
Weaknesses
Customer Satisfaction – The consumers of the company mostly show low satisfaction due to
their return policies along with in-store experience. This has led to low loyalty towards the
brand and increasing level of brand switching (Fern Fort University, 2018a).
Opportunities
New Segments – Fashion is said to be a developing segment that comes up on a regular basis.
There is an increasing demand for traditional as well as ethnic wear in the Asia market, which
is presently not being satisfied by Marks & Spencer (Bhasin, 2018). This is being considered
as one area that can offer numerous advantages to the company’s retailer.
Threats
Competition – With the developing fashion trends, the level of competition in the industry
has increased. The key competitors of M&S are Tommy Hilfiger, UCB, Zara, and Gap.
Impact of Going Global on Marketing
Competition
With the expansion of audience and market because of Globalisation, the level of competition
also increased. This increasing competition also increases the pressure on the brand to stand
out from the crowd. Customers are aware of numerous options available in the market and the
means for searching the best possible product are being more targeted – which makes it
simple for the customers to sort through brands that are less relevant (Lundby and Jolton,
2010).

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Technology
Technology supports in rapid information exchange around the globe. The growth of
enhanced and new techniques of product marketing also results in increasing company cost in
order to implement updated software into the operations (Lundby and Jolton, 2010).
Competitive Advantage of Marks & Spencer
Porter’s Generic Strategies
Porter's generic strategies explain the way businesses attain competitive advantage around
their selected market scope. Three generic strategies are differentiation, focus, and cost
leadership (Kossowski, 2007).
Cost Leadership
Under cost leadership strategy, a business tries to manufacture low-cost products in the
respective industry. The sources of cost advantage are diverse and based on the industry
structure. If a company attains and sustain the cost leadership, it will be considered as the
above average performer in its industry. Marks & Spencer is known in the market for its
high-quality products that are targeted at premium class customers. Due to this, the company
does not comply with a cost leadership strategy.
Differentiation
Under differentiation strategy, a company focus on being unique within the industry along
with few dimensions that can be broadly appreciated by the customers. The company chose
one or more features that numerous customers in the industry seek to be important and
exclusively places it to meet those desires. In order to be diversified, Marks & Spencer has
adopted the diversified strategy by successfully attaining the paperless management. The
paperless operations and company’s administration are managed in the IT systems that are

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processed through secure servers; thus, offer flexibility in operating the business. The motive
of M&S of having paperless management is to ensure that Martha chain can continue to
operate across the world in an organized manner (M&S, 2018). Besides this, the company is
trying to reduce the use of plastic products in its packaging by replacing them from planet-
friendly substitutes that could be easily recycled (M&S, 2019).
Focus
The focus is considered as the marketing strategy that works under the agenda of giving
priority to the resources for expanding the operations in a segment or a narrow market. M&S
is a well-known brand in the global market because of its standardised management style in
managing the supply chain in order to reach the win-win situation. Standardisation is
considered as the company's consistent style, type, the design of the store, and product quality
and the employees involved in the service program possess a meticulous standard. The most
significant benefit of having Standardization Management is that it can save the cost of
management, while customers can improve their entire impression of M&S (Marks &
Spencer, 2019b).
Importance of Product Innovation
The success of M&S is mainly based on its list of innovations in the industry. Changes are
the foundations through which business is building and has been set apart from the
competitors. Providing something different and appealing to stand out from the crowd has
offered a continuing success to the company.
Eye-Catching Motifs were the designs inspired by Margaret Nash’s embroidery, which were
focused towards designing shirts, swimwear, children wear, and men wear (M&S Careers,
2015).

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Protecting Innovation
Patent – It is a right provided by the respective government to prevent parties from
producing, vending, or using the invention.
Copyright – It prevents imitating of any work, product, or computer program.
Porter 5 Force Framework
Substitute Product Threat
Marks & Spencer operates its business in the market where high priority is provided to
innovation to uphold brand reliability and to meet the altering consumer demand. In the
clothing segment, Marks and Spencer are experiencing the high threat of substitute due to
high chances of style and design copying. In the food segment, the existing four big
supermarkets (Tesco, Sainsbury, Asda, and Morrison) has covered the British market,
whereas Tesco and Sainsbury are working high-quality products (Fern Fort University,
2018).
The threat of New Entrants
The retailing industry possesses low new entrant threat because high investment is a
requirement by the business to take entry in the market with strong brands that have attained
customer loyalty.
Power of Customers
Marks & Spencer is operating in the retailing industry that has high bargaining power the
customers. Regular shifts in the customer market like demand for classical designs,
preference to the current item, increasing price sensitivity or declining trust of the customers
from British products are influencing the retailers (Fern Fort University, 2018).
Power of Suppliers

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After the rapid decline in the sales of Marks & Spencer in the year 1990, the company was
enforced to outsource products and work with foreign suppliers who provide products at
competitive prices. This movement leads to reducing the British supplier's bargaining power.
Competition among existing businesses
For M&s, the game in both the industries that is retailing and the food is increasing due to the
presence of strong competitors. In the fashion industry, the key competitors are Sainsbury
and Tesco. Besides this, in the food industry, the main rivals are Zara and Gap (Fern Fort
University, 2018).
Task 2
Hilton Food Group
Hilton Food Group is a business of food packaging, registered on the Stock Exchange of
London and a component of the FTSE 250 Index. It was introduced in the market to run a
lamb and beef packing facility in 1994. The company operates as a subsidiary, involved in
the meat packing business. It provides a broad variety of fresh items like steaks, minces,
roasting joints, and chops. It even offers value-added goods including marinated meats, ready
to cook goods, serving sauces, barbecue ranges, and meat cuts (Bloomberg, 2017).
Factors that Facilitate Internationalisation of Hilton Food Group
Internationalisation is all about expanding the operations of the business from the home
country to a foreign country. The decision regarding internationalising the business is said to
be the strategic decisions that have a major influence on any company and all its external and
internal operations. Numerous factors are available that can facilitate internationalisation of
Hilton Food Group. The common factor is the need to move to a potential abroad market and

GLOBAL MARKETING MANAGEMENT 10
to diversify risk. Besides this, the company can go international to introduce its new product
in the portfolio and meet the demand of the potential international customers (Ebner, 2011).
Hilton Food Group can also consider its expansion in the international market to attain a
different rate of growth. Diverse markets possess diverse rate of growth and many businesses
in countries with slow growth rate always go for internationalisation with the motive of going
to nations with a high or faster rate of growth.
Global Market Potential
Demand of packaged meat is expected to reflect the growth in single digit in the predicted
time. This progress is accredited to augmented manufacturing of meat in the international
market. Packaging is something that can be utilized to contain, protect, deliver, and handle
processed goods and raw material. The key drive of packaging is to offer goods to the
customer in perfect condition i.e. in complete form of food-deprived of spoilage (Future
Market Insights, 2019).
The market for meat packaging is thrived internationally because of numerous factors like
urbanisation, particularly in emerging economies such as China, India, Brazil, and Russia.
However, few of the forces that are confining the development of the meat packaging market
comprises environment matters like sustainability and recyclability along with hygienic
packaging and increasing issues related to health. The key drifts of international market of
meat packaging are the demand for small size packaging, development of new material for
packaging and growing awareness regarding environmental issues (Future Market Insights,
2019). Nano packaging is playing a key role in the market of meat packaging, because it
requires an aseptic packaging that goes on for a maximum number of days for prolonged
shelf life.

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Risk and Issues of Internationalisation
Country Risk
Poor infrastructure like bridges, telecommunication network, and roads can result in an
expensive deal for the business to operate its activities in a different nation. Economic
situations like the increasing rate of unemployment or a high level of unskilled labour could
be the entry barriers (Yilmaz and Flouris, 2017).
Political Risk
An unstable government structure will be incapable of guarding the business interests. The
absence of effective policies of foreign trade reflects that the business needs to route through
the shades of associating with government bureaucrats who may fall from power (McKellar,
2012).
Currency Risk
Variations in foreign currency can diminish profits at the time of converting it to the domestic
currency. It is vital for every business to analyse the rewards as well as the risk of investment
in a different country.
Mitigating risk in Internationalisation
Identification of objectives and dangers:
To overcome or avoid the present risk in the international market, it is essential for the
business Organisation to first analyse its goals and type of risk available in the market such as
political instability or inadequate infrastructure.
Detailed evaluation of the product:

GLOBAL MARKETING MANAGEMENT 12
It is important to evaluate properly the products that are being planned to offer in the
international market to avoid any issue. The features that must be assessed by the business are
product design, name, price, and functionality. Evaluation is critical because few products are
not suitable for certain markets because of their features or local regulations (Compare
Business products, 2010).
Learn about regulatory framework:
Few products are present in the market that are banned by the government of a specific nation
or are traded under harsh rules. For instance, online gambling is restricted in the USA.
Framing strategies of business for every market:
Every market needs a diverse approach and hence business has to execute a strategy that can
suit the locale that is targeted, beginning from selecting an entry mode (International
Monetary Institute, 2018). The operational strategy of the business must be based on the
requirement of the market, accessible resources, and performances objectives.
Considering Economic and Political Conditions:
Political, social, and economic issues can excite or hamper the internationalisation procedure
of a business. These aspects can influence the exchange rate, taxes, prices, behaviour of the
customer, etc. Economic and Political uncertainties can influence the operations of the
business and for this company must conduct comprehensive research of the potential markets
before the business internationalisation.
Considering the language barriers:
The language barrier can hinder the internationalisation project. It is always advisable to
recruit language translation companies with experience in both legal and financial sectors.

GLOBAL MARKETING MANAGEMENT 13
Global Segmentation
The meat packaging market of Hilton Food group will be segmented depending on the
material, region, type, and distribution channel.
Based on Type – Meat packaging
Based on Material – Storage wraps and plastic wraps that comprises three types of plastics
that are polyvinylidene chloride (PVDC), polyvinyl chloride (PVC), and polyethene (PE)
Besides this, oven-cooking bags made up of heat-resistant nylon, aluminium foils, freezer
paper, parchment paper, and wax paper will also be used for packaging.
Based on Distribution Channel – Online retailing, hypermarket/supermarket, departmental
stores, and grocery stores (Hilton Food Group, 2018)
Based on Region – Western Europe, Middle East, Asia-Pacific, North America, Africa, Latin
America, Japan, and Eastern Europe
Marketing Mix
Product:
Hilton Food Group will offer value-added goods including marinated meats, ready to cook
goods, serving sauces, barbecue ranges, and meat cuts in its global market (Bloomberg,
2017).
Price:
Hilton Food Group is presently focusing on cost reduction strategies all over the Group with
subsequent savings are shared between Hilton and its consumer, which is enhancing the
satisfaction of the customer and increasing demand of the products (Hilton Food Group,
2019).

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Place:
Presently, the company is operating its business in Netherland, Lithuania, Australia, Ireland,
Denmark, UK, Estonia, Latvia, Portugal, Hungary, and the Czech Republic. However,
considering the demand of packaged meat, it must expand its operations based on the broader
market in the areas Middle East, North America, Africa, Latin America, Asia-Pacific, Japan,
Western Europe, and Eastern Europe.
Promotion:
In order to promote the operations on the global level, Hilton Food Group need to adopt
different promotional strategies such as
Advertisement – Under this company will make use of television advertisement, billboards,
hoardings, radio
Direct Marketing – It can adopt direct marketing through online display ads, consumer
websites, email, catalogue distribution, and outdoor advertising
Communication Strategies
Verbal Communication Strategy – This strategy could be divided into two parts that are oral
and written communication. In written communication, Hilton Food group will make use of
text, chat, and emails and in oral communication, the company will use video chats and
phone calls.
Visual communication Strategies – Visual communication can be done through illustrations,
webpages, and signs (Jones, 2017).
The above paper is based on internationalisation of businesses and the risk involved in going
international. The analysis has highlighted that Hilton food Group operating as a meat

GLOBAL MARKETING MANAGEMENT 15
packaging business need to expand its operations in other countries in order to diversify the
risk of the local market and take advantage of developing nation's growth rate. The paper has
also discussed the possible risk it can experience while going international and ways it can
overcome it. Besides this, the company will segment its market from region, distribution
channel, material, and type.

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