Segmenting International Markets Across Product Categories

Product Categories: International Marketing Review, Journal of World Business, Food, Culture & Society, Nicotine & Tobacco Research, Vocations and Learning, Journal of Microbiology, Immunology and Infection, Research journal of Microbiology, Restaurant industry forecast, International Journal of Hospitality Management, Global marketing management, Strategic Direction, Industrial Marketing Management, Amfiteatru Economic Review, International Journal of Educational Management, International Journal of Marketing Studies, Journal of Business Research. Online Resources: Market Entry Strategies, The BCG Growth-Share Matrix, The Marketing Mix 4P's and 7P's Explained, Industry Overview, The World Bank, Sample SWOT Analysis for a Restaurant.

Global
Marketing

Table of Contents
INTRODUCTION................................................................................................................................4
Competitive structure and rivalry in Germany................................................................................4
Competitive structure and rivalry in Sudan.....................................................................................4
International Market Screening and Selection......................................................................................5
GE Matrix........................................................................................................................................5
Global Marketing Strategy Recommendations....................................................................................8
Proposed Marketing Mix.................................................................................................................8
Market
Entry Strategies...............................................................................................................................9
Threats
and Opportunities..........................................................................................................................10
Strategic Marketing Policies...............................................................................................................10
Marketing Policy............................................................................................................................10
CONCLUSION..................................................................................................................................12
References..........................................................................................................................................13

Illustration Index
Illustration 1: GE Matrix......................................................................................................................6
Illustration 2: 4P of Marketing Mix......................................................................................................8
Illustration 3: BCG Matrix..................................................................................................................11

INTRODUCTION
The report is based on the global marketing strategies of restaurant, Ledbury. It is a leading
restaurant of UK which is known for serving contemporary European delicacies to guest. The
restaurant wants to expand its business in global countries like Germany and Sudan. The report
signifies the use of secondary research i.e. worldwide web, business journals and various other
sources like World-Fact book and etc (De Mooij, 2010). The secondary research done on the
countries help to identify the market structure for the expansion of the restaurant. The report also
studies strategy which plays a crucial role in establishing expanding business in Germany and
Sudan. In relation to these, marketing policies have been applied to understand the factors which
might affect the successful operations of the restaurant in the international market.
Competitive structure and rivalry in Germany
Germany belongs to the high income group of the world with a GDP of $3.868 trillion in the
year 2014 (World Bank, 2015). Germany is known to be a high end competitive country of the
European Union. The technological factors which affect the restaurant industry are technology, use
of renewable source of energy and constant innovation. There are around 82 million customers
involved in making Germany among the largest food market. This is because the government of the
country provides and support SMEs and food chains to enter into the market. There is no barrier to
entry for the restaurant industry in Germany but the companies and restaurant owners have to
follow rules and regulations that are formulated by the legal system of the country. The policies and
laws are generally affected by the European Union (Gillespie and Hennessey, 2010). The political
system of the country is affected by laws of European Union the government. Despite this fact, the
citizens of the country have a well known flavour for meat products and sausages as well as there is
a huge demand for organic products in the country which is seen as a new trend in the social
structure of the country. Germany is the largest producer of dairy in Europe which is considered as
favourable for economy of the country. From the research, it was identified that the economy of the
country is sound in terms of food and beverage industry with the sale of EUR 7.6 billion in organic
foods and EUR 11.0 billion in food and vegetable produce.
Competitive structure and rivalry in Sudan
Sudan is a developing country with a low income level and GDP of $ 73.81 billion in 2014
(World Bank, 2015). The country’s economy is based on agricultural productions but still it import
food products from other countries. Being a low income level country there are high fluctuations in
economic policies formulated by the government. The policies and laws of international markets
like China, UAE, Japan, and EU have a direct impact on the country. The market is affected by
shifts in these markets. Poor market condition makes it an unstable economy in terms of technology
and innovation. There are no technological advancements due to low level of literacy in the
country. The country has large oil reserves but lacks in new investment and business in the

restaurant industry. There is no strict competition in food and restaurant industry as there is low
interest of consumers living in Sudan towards the same (Lane, 2010). Trade depends highly on
production level of the country. The countries production is based on rainfall and the environmental
condition are not deemed very favourable for agriculture of organic food for example, soil erosion,
land degradation and etc. The country is still fighting to bridge the gap between social impurities
followed by various tribes and cultures. Low literacy level and high poverty prevailing in the
country makes it a socially downgraded country. Due to limited source of finance and infrastructure
available in the country, it is difficult to set up any new industry in the nation. Class and gender
system prevails in the country which reduces chances for development of opposite gender in the
country. These social and cultural factors make it difficult for the government to generate
development in the country.
From the secondary research done on Germany and Sudan it was identified that both
countries have scope of business. Germany has a favourable environment for business operation in
the restaurant industry. Whereas, the restaurant will have to fight to sustain and maintain
profitability in Sudan as the country requires lot of development (De Mooij, 2013). The culture and
economy of both the countries are different from each other. As being a developed European
country and the other being a poor developing country of Africa. The restaurant industry in
Germany is highly advanced with use of technology and innovations. On the contrary, Sudan lacks
in support from the government towards technological advancements. The country also experiences
fluctuations in governmental and economical policies for upliftment and development of the society
(Lee and Carter, 2011). On the other hand, Germany is well groomed socially and economically
with the stable governmental policies and laws.
INTERNATIONAL MARKET SCREENING AND SELECTION
GE Matrix
International market screening and selection between the two countries i.e. Germany and
Sudan is done with the help of GE matrix. The matrix analyses the current portfolio of industry
attractiveness and business unit strength. As Ledbury is expanding its business in international
market it is important for the restaurant to identify the market position and profitably in between the
countries (Möhring, 2008). GE matrix is beneficial as it lets the factors that may directly affect the
restaurant in the international market. As per the matrix , the business can identify strategic position
in the market. The matrix has nine cells which is used to rank the position of the company on the
basis of strength and industry attractiveness. The vertical axis of the matrix is for identifying
industry attractiveness . The factors involved in assessing attractiveness of industry are as followed.

 Market Size and Growth Rate- The market size of Germany is comparatively large then
Sudan. It is said that the restaurant has a huge scope of sale with large potential of the
market in Germany (National Restaurant Association). Whereas Sudan has low scope in
terms of growth of market and the current market due to low potential of productions.
 Industry Rivalry- Competitive rivalry in Germany is high due to existence of food chains
and restaurant in the industry. Ledbury may have to fight to stick into highly innovative edge
of the competitors. Sudan in the other hand has low competition due to low availability of
restaurants and food chains in the country.
 Demand variability- Demand for contemporary european food is relatively high in
Germany then in Sudan (Roy and Marketing, 2008). The restaurant will be facilitated by the
support of consumers in the food market whereas Sudan has low demand of restaurant due
to low level of literacy and awareness.
 Global Opportunities- Ledbury has already stepped its foot in France and USA proving its
capacity to provide excellent services to its international customers. Their is huge
opportunity fir the restaurant business in Germany seeking to food lovers in the country. On
the contrary Sudan stands low in finding opportunities for the restaurant business.
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 Industry Probability- Food and restaurant industry in Germany is proving to be profitable
business for the economy of the country. As Germany is termed to be among the best selling
dairy and baked goods products in the world (Samiee, 2008). Sudan is comparatively low on
the grounds of profitability towards restaurant industry due to social factors of literacy and
gender inequality prevailing in the country.
The horizontal axis consists of factors that helps in calculating the business unit strength.
They are-
 Production capacity – The infrastructure of Ledbury is designed to cater the needs of
customers interested in dining. As per the capacity, the restaurant has capability to serve up-
to 50 guest at one stretch. The restaurant books through online portals for making it easy for
the customers to get reservation in the restaurant.
 Market share- Market share of Ledbury has increased from the past years in UK
specifically (Lane, 2010). With the restaurant winning 2 Michelin Stars and is a winner of
All in London Ultimate London Restaurant for 3 consecutive years. The restaurant is
expected to increase its market share by approximately 3.7% by the end of 2016, to improve
its global presence in other market as well.
 Growth in market share- The growth rate of the restaurant is exponentially well. The
restaurant has grown by 39% in the last five years. The growth in Germany is expected to be
high due to high demands of contemporary european food in the country. On the other hand
Sudan has a very low base in terms of growth of market in the country.
 Distribution channel access- The distribution channels of restaurant industry starts with the
vendor who sells fruits and vegetables and other processing items to the restaurant. The
employees of the restaurant then process it to provide a finishing touch to the product
(Market Entry Strategies, 2015). The access to the vendors and customers are easily
available for consumers and vendors in the countries.
 Brand loyalty- The consumers in Germany are well educated and know the latest trend
prevailing in the market. It is easy for them to understand the importance of a good branded
restaurant. Being an international level brand in restaurant Ledbury is expected to have a
large loyalty towards its innovated and excellent food service provided to the customers
(Wagner, 2015). Whereas for Sudan the same is not applicable as low level of income
creates a problem for people to opt to dine in a restaurant.R&D, Patents and Innovations-
Germany provides and support opportunities of innovations through research and
development and patenting of any new product. The restaurant will be facilitated from this
feature of Germans as Sudan does not have prospects towards innovations and research in
the restaurant industry.

GLOBAL MARKETING STRATEGY RECOMMENDATIONS
Proposed Marketing Mix
The marketing mix of the restaurant business to be expanded in Germany and Sudan is as
followed-
 Product- Ledbury has to focus on innovating the menu item it will be providing to its
customers of Germany especially. The German market is highly competitive towards using
great technology and innovation in the restaurant industry. The food and restaurant industry
if Germany is highly advanced and has huge customer demands towards excellency. In
Sudan the competitiveness is not much towards delicacies and contemporary food (De
Mooij, 2013). The restaurant will have to consider the trend being followed in by the
restaurant industry of Sudan to evaluate innovation in its product.
 Price- The price policy of Ledbury in Sudan will have to be low cost. As products with high
end pricing will not survive in the market with low income levels. The restaurant will have
to formulate strategy to provide low priced full meal courses except of customized recipes to
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attract customers. Whereas in Germany the restaurant will able to cover its cost with its
price policy. As the economy is economically sound in the country. This will help the
business to gain profitability as there are no restriction for specific pricing policy.
 Place- Berlin is the most suitable place to establish the restaurant in Germany. As the place
is known to be highly conventional and economically sound. Berlin has high potentials for
growth and development of restaurant business (Market Entry Strategies, 2015). In Sudan
the restaurant can be located in Khartoum, the capital of the country. Being the capital of the
country the place has high economical benefits.
 Promotion- In Germany the business can use social media marketing, advertising,
commercial ads and print media marketing to generate customer base for itself. Good word
of mouth and PR strategies will increase the clientele base of the restaurant in Germany. It is
so advisable to use these as the size of customer and the use of marketing technique are
relevant with the customer awareness (Roy and Marketing, 2008). In Sudan as well social
media marketing and advertising through TV commercial will prove to be beneficial for
attracting customers toward the restaurant.
Market
Entry Strategies
Strategy for entering market in Germany and Sudan both will be different due to the
different level of economic situation of the countries. It is recommended to use Franchising strategy
for the German market and Joint venture strategy for Sudan.
 Franchising in Germany - This strategy will help Ledbury to quickly enter and capture a
large market share in Germany. For franchising the restaurant business will have to open
same food outlet of the restaurant in Germany as well. As the restaurant business has outlets
in countries other then UK, this will brand image if the company as an international food
chain (Samiee, 2008). The fact that Germans are highly attractive towards european cuisine
it will prove to be a huge advantage for brand recognition of Ledbury. The company will
have to follow franchising laws and regulations of German government for successful
establishment of the business.
 Joint Venture in Sudan- Sudan is a low income group with huge risk factors that may
affect the profitability of the restaurant business. It is advisable for the restaurant to use joint
venture with a third party to decrease the risk of uncertainty and loss. As the risk will be
shared equally the company will not have to bear huge issue with operations of the
restaurant (National Restaurant Association). The partner will have to adhere with principles
and code of conduct of Ledbury in order to generate brand loyalty from the customers.

Threats
and Opportunities
Threat Opportunities
Germany Taxation policy of government- The
change in taxation policy of the
government may prove hazardous for
the pricing policy as it will affect the
cost strategy of the company.
Rising Competition- Germany has a
high level of competition in the
restaurant which is termed as a threat for
Ledbury (Gillespie and Hennessey,
2010).
Innovation and Development- The
competitors of the restaurant business
are known to use hi-tech and innovation
in the products. Ledbury will have to
struggle to generate constant innovation.
Customer Loyalty- The customers of the
company are expected to stick with the
company as the restaurant business is
known for its excellent service which
will, attract customer loyalty towards it.
Expansions to new locations- The
restaurant business will have a
successful chances to expand its outlets
in other destinations of Germany as well.
Product development- The restaurant is
also deemed to be generating
development and innovation in the
product for the customers (Samiee,
2008).
Sudan Poor economical conditions- The
economy of Sudan is poor due to high
poverty and low literacy which a threat
to the restaurant business growth
potential.
Fluctuating market factors- The
market factors of demand and supply are
also fluctuating with the variation in
customer preference and choice toward
restaurant industry
Low level of competition- As the
country is in its developing phase. The
restaurant business is expected to have
low level of competition which is a
advantage for stepping a a new market .
Changing customer needs- The
requirement and choice of customers are
ever changing. In light of development
of the country it is estimated that the
country will prove to be a beneficial
source of income in terms of customer
support for Ledbury.

STRATEGIC MARKETING POLICIES
Marketing Policy
In order to analyse the e-commerce business unit of Ledbury in Germany and Sudan, Ansoff
Boston-Consulting-Group i.e. BCG Matrix is used for analysing the market share and growth rate of
the restaurant business. The BCG matrix is a portfolio planning model used to identify and analyse
the position of the companies product lines. After researching on the growth and market share of
Ledbury in Germany and Sudan, it was found that Ledbury is in the star category for Germany and
lies in Cash Cow category for Sudan.
 Star- Germany will prove to be beneficial for the portability of the business due to strong
market share and generation of large amount of cash. The restaurant business will have a
high growth rate in the German market which will yield cash for the company. High growth
rate will be important in accessing and increasing the customer base in the market (Industry
Overview, 2015). Whereas To expand and increase operations it is important for the
restaurant to generate large market share for future growth and profitability. This will prove
Ledbury to become the leader in the restaurant industry of Germany. Constant cash
generation will have to maintained to support business operation's as a star.
 Cash Cow- Being a Cash Cow in Sudan the restaurant business will yield return in the
investment. They have low growth rate but have a increasing market share which generate
Illustration 3: BCG Matrix
Source: (The BCG Growth-Share Matrix, 2015)

liquidity for the firm. The liquidity will help in expansion and maintenance of business
operations in the future. The restaurant will have to extract as much of cash and profits it can
from the market (The BCG Growth-Share Matrix, 2015). The restaurant will have to
maintain and control cash flow to not let the cash cow turn into a question mark.
As the place selected for Sudan is in a mature market Cash cow is deemed to generate large profit
margin for Ledbury.
CONCLUSION
From the research it is concluded that in order to expand business unit into international
market, a large research and strategy are required. The restaurant expansing its business in Germany
and Sudan have used secondary research to conclude its findings for the business. The research also
found the competitive rivalry and industry analysis with the help of the secondary research. Th
report also concludes the relevance of strategies to enter tow completely different countries with
different market scope for the restaurant. At last it can be said that global factors prevailing in the
countries play an influential role for shaping business activities of Ledbury.

REFERENCES
Books and Journal
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advertising. Sage.
De Mooij, M., 2013. Global marketing and advertising: Understanding cultural paradoxes. Sage
Publications.
Gillespie, K. and Hennessey, H.D., 2010. Global marketing. Cengage Learning.
Lane, C., 2010. The Michelin-starred restaurant sector as a cultural industry: A cross-national
comparison of restaurants in the UK and Germany. Food, Culture & Society. 13(4). pp. 493-519.
Lee, K. and Carter, S., 2011. Global marketing management. Strategic Direction. 27(1).
Möhring, M., 2008. Transnational food migration and the internalization of food consumption:
ethnic cuisine in West Germany. Food and globalization: consumption, markets and politics in the
modern world. pp. 129-150.
National Restaurant Association., 2012. Restaurant industry forecast.
Roy, S. and Marketing, G., 2008. Energy logic for telecommunications. Emerson Network Power.
Samiee, S., 2008. Global marketing effectiveness via alliances and electronic commerce in
business-to-business markets. Industrial Marketing Management. 37(1). pp. 3-8.
Online
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industry-overview-food-beverage-industry-en.pdf>. [Accessed on 21st December 2015].
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strategies>. [Accessed on 21st December 2015].
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<http://www.netmba.com/strategy/matrix/bcg/>. [Accessed on 21st December 2015].
The Marketing Mix 4P’s and 7P’s Explained. 2015. [Online].Available through
<http://marketingmix.co.uk/>. [Accessed on 21st December 2015].
The World Bank. 2015. [Online].Available through <http://data.worldbank.org/country/germany>.
[Accessed on 21st December 2015]
Wagner. N., 2015. Sample of a SWOT Analysis for a Restaurant. [Online].Available through
<http://smallbusiness.chron.com/sample-swot-analysis-restaurant-73526.html>. [Accessed on 21st
December 2015].