International Marketing: Developing Strategies for Market Expansion

This document discusses the importance of international marketing for firms and provides insights into developing strategies for market expansion. It includes a PESTEL analysis for a chosen foreign market, a marketing plan for a foreign market, and an environmental audit of GREGGS PLC to evaluate its strategic position.

International Marketing
Management, Entrepreneurship
and Innovation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Explain why firms develop international marketing, and prepare a PESTEL analysis of a
chosen foreign market for identified products/services..........................................................1
Generation of innovative product idea along with opportunity evaluation through SWOT. .4
Devise an outline marketing plan for a foreign market..........................................................5
TASK 2............................................................................................................................................6
Covered in PPT.......................................................................................................................6
TASK 3............................................................................................................................................6
Environmental audit of GREGGS PLC and evaluation of its strategic position....................6
REFERENCES..............................................................................................................................11

INTRODUCTION
International marketing can be referred to as the procedure of application of marketing
techniques as well as principles on a worldwide scale with a view to enhance the market share of
organisation (Pegan, Vianelli and de Luca, 2020). While gaining access into a new market place,
the sole motive of an enterprise is to identify as well as tap the consumer behaviour existing
there and thereby influence them to make a purchase of organisational offerings. This becomes
possible only when the entrepreneur is keen to leverage innovations within the enterprise to
appeal to new base of citizens.
The present project is based upon GREGGS PLC which is the biggest bakery operating
within the confines of UK market. It is globally renowned and offers a wide variety of products
to customers to build a loyal base of people. The management of this entity seeks to gain access
to a new market place and carry out international marketing thereby to enhance its reach and
market share. The report consists of the reason behind firms conducting international marketing
and generation of ideas for development of new product or service. Further, it includes business
proposal for the new product or service. Lastly, the project constitutes Porter’s Five Force
analysis and PESTLE analysis to determine the strategic positioning of company.
TASK 1
Explain why firms develop international marketing, and prepare a PESTEL analysis of a chosen
foreign market for identified products/services
In the modern era, companies across the globe leverage international marketing owing to
a number of reasons. Usually, organizations go worldwide in light of the fact that they need to
develop or grow activities. Some other reasons constitute creation of more income, recruitment
of new skilled individuals, leveraging differentiation, lessening costs and capitalising upon
investment opportunities (Samiee, 2020). Once in a while, governments also boost ventures into
worldwide markets so as to facilitate economic development. Thus, it can be said that going
international allows firms to enhance their market share as well as their reach amidst people.
GREGGS PLC is a renowned brand name within the confines of UK today. Looking
upon the popularity of this brand in domestic market as well as some other nations across the
globe, the management of this bakery firm has decided to facilitate market expansion by
leveraging international marketing. The market that has been selected by GREGGS PLC is UAE.
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To successfully appeal to the people of this nation, the management of company has decided to
diversify organisational offerings by incorporating gluten free and organic bakery items. In this
regard, it is important for the firm to analyse the viability of business environment of UAE to
feasibly gain access into this marketplace and inflate the existing level of revenues of GREGGS
PLC. For this purpose, PESTLE analysis has been conducted by the respective bakery which
would provide assistance in development of effective strategies and tactics for flourishing within
the confines of UAE. Thus, the analytical framework in relation to identified product segment
(gluten free and organic bakery items) is presented as follows:-
Political Factors:
Over years, the legislature of UAE has been indicating inflating worry in connection to
expanding number of diabetic and obese patients within the confines of nation. This inflates the
demand for organic and gluten free bakery items within this market. According to a research
conducted by Mintel, UAE has emerged as the major market for gluten free food offerings,
especially within the bakery segment (What are the next major markets for gluten-free? UAE
leads growing Gulf interest, 2019). Thus, coming up with such healthy offerings in UAE by
staying lined up with the wellbeing related issues witnessed by residents of this country is a
remarkable idea.
Economic Factors:
The economy of UAE is magnificent yet an enormous extent of populace of this nation is
hit with diabetes and / or obese (Fojas and et. al., 2018). Thus, the idea to launch gluten free or
organic items of bakery segment is effective and coincides with the health conscious nature of
people belonging to this region. This would appeal to such proportion of Emiratis who are not
able to consume bakery items because of the large extent of gluten or other harmful ingredients
present in them, which inflate the probability of individuals getting inflicted by diabetes and
obese.
Social Factors:
The inhabitants within the confines of UAE over the time have generally been worried
about their wellbeing because of rising number of diabetes and obese struck individuals in the
domestic territory. Thus, organic and gluten free bakery offerings would meet the needs and
demands of such individuals. Further, social media has emerged as one of the growing trends
within UAE, with Emiratis spending approx. 2.5 hours of their day upon this. In this regard, out
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of the total population of 9.61 million, around 9.52 million individuals are active social media
users (UAE SOCIAL MEDIA USAGE STATISTICS (2019), 2019). Thus, social media marketing
can be leveraged to effectively appeal to the residents of UAE.
Figure 1: Social Media Statistics of UAE
Technological Factors:
UAE is a technologically advanced market which presents opportunities to companies to
leverage innovation and appeal to the people of this country. In this relation, gluten free and
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organic bakery offerings is also regarded as innovation and thus it would significantly gain the
attention of people of this market.
Legal Factors:
The growing concerns regarding the quality standards and wellbeing of people of UAE
have put the operations of food & beverage companies at stake. To deal with this, it is essential
that the organic and gluten free bakery items comply with the nutritional and other health
requirements of law.
Environmental Factors:
The worries of people regarding preservation of environment and nature would be taken
into account while launching the new healthy bakery offerings within UAE. Thus, minimal
carbon footprints would be released at the time of production and sustainable practices would be
adopted to save energy and water also.
Generation of innovative product idea along with opportunity evaluation through SWOT
The innovation product or service that has been proposed to be launched by the
management of GREGGS PLC within UAE is gluten free and organic offerings. The viability
and opportunity evaluation of this idea is done by the respective bakery with the help of SWOT
analysis.
Particulars Explanation
Strengths The strength for GREGGS PLC while launching the new healthy offerings within UAE
would be the initiative taken by entity to stay aligned the needs and demands of consumers in
the selected nation. This would provide aid to the enterprise in appealing to the population of
UAE and retaining them for a long period of time. Further, the decision to offer these healthy
offerings at reasonable prices would serve as one more strength for GREGGS PLC.
Weaknesses Extensive level of rivalry prevailing within bakery market of UAE would be
the only weakness for GREGGS in new international market place.
Opportunitie
s
The opportunities associated with the gluten free and organic bakery offerings would be to
sell them at premium prices once these become popular among the residents of UAE (Abdulla
and Garemo, 2018).
Threats The increment in cost owing to the usage of organic s well as healthy raw materials for
preparation of new bakery offerings would act as a major threat for GREGGS PLC while
operating in UAE .
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Devise an outline marketing plan for a foreign market
The marketing plan developed by GREGGS for gaining entry into the bakery market o
UAE is presented as follows:-
Objectives: The objectives that are laid down by the management of GREGGS PLC for
UAE, are as follows:- To increase the global market share of entity by 12% by the end of 6 months from
entering UAE.
 To enhance the revenues of company by 20% within next 1 year by leveraging extensive
international marketing.
Marketing Mix: This is the theory which provides assistance to an organization in
devising an effective marketing strategy through which a firm can enhance its existing market
share with a view to reach to the top within the confines of concerned sector (Resnick and et. al.,
2016). GREGGS PLC has explained the marketing mix with the help of 4Ps, as follows:-
Element Description
Product GREGGS PLC will offer its bakery items in the market of UAE which special
focus upon its new healthy offerings in terms of gluten free and organic items.
Price The offerings will be initially offered at moderate prices but as the entity will
become famous in the selected international market, it will increase its prices to
grab a large market share.
Place UAE has been selected as the place to conduct international marketing of
healthy offerings of GREGGS PLC as the people here are health conscious but
like to consume bakery items.
Promotio
n
The marketing of this enterprise would be done by way of social media
marketing and other traditional techniques.
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TASK 2
Covered in PPT
TASK 3
Environmental audit of GREGGS PLC and evaluation of its strategic position
It is essential for a firm to carry out environmental audit at rapid intervals of time so as to
determine its strategic position within the market place. In this regard, companies across the
globe make use of some business management and strategic planning models. With respect to
this, the management of GREGGS PLC is making use of PESTEL and 5 Forces analyses as these
will provide assistance to corporation in ascertaining market positioning. The discussion over
both the models is given underneath:-
PESTEL Analysis
It is a comprehensive business model which is used by firms while carrying out strategic
planning as well as management. This framework renders aid to a company in gaining an insight
into the factors pertaining to its external business environment (Shatskaya, Samarina and
Nekhorosheva, 2016). On the basis of this analysis, an entity can devise effective strategies and
thereby attain competitive edge to surpass the rival firms within same sector. In this relation, the
management of GREGGS PLC has made use of this analytical model to ascertain the situations
prevailing at market place. This analysis is done as follows:-
Variables Detail
Political  UK is one of the most powerful countries in the world which is
having modern parliamentary democracy along with a
constitutional monarchy.
 Terrorism, war at international level, instability of political system
and strict trade regulations may severely affect the operations of
GREGGS PLC in the long run.
Economical  The market in which GREGGS PLC operates across is developed.
These tend to render aid to the respective bakery organisation in
attaining a competitive edge by using the developments as well as
features of this nation.
 British exit from European Union is one of the most adverse
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aspects for the functioning and operations of GREGGS PLC as UK
is the leading revenue source for this bakery (Greggs warns
‘disorderly’ Brexit could undermine strong sales performance,
2019).
Social  Looking upon the changing needs as well as preferences of people
over the period of time, GREGGS PLC offers products which are
healthy and can be consumed on a frequent basis.
 Social media marketing is an emerging trend among the global citizens. Taking
this into account, the respective bakery firm leverages presence on various
platforms such as Facebook, Pinterest, Twitter and so on, to reach out to a large
base of people and thereby inflate its profits (How Greggs uses Facebook,
Twitter, Pinterest and Google+, 2019).
Technological  The advancements taking place within technologies facilitate GREGGS PLC to
come up with unique systems and techniques. In past, this bakery has combined
payment as well as reward in one mobile application for enhancement of
customer loyalty and convenience (GREGGS Rewards, 2019). Further, the
organisation also initiated the execution of latest release of SAP IS-Retail
technology for enhancement of inventory forecasts as well as replenishment.
 The application of new technologies as well as techniques tends to increase the
overall cost of operations for GREGGS PLC.
Legal  GREGGS PLC operates in a legalised manner, thereby reducing the
scope of imposition of fine or penalty for non-compliance.
 The laws that need to be followed by this bakery primarily are
regarded to be Bread Weights and UK Bread and Flour Regulations
(Legislation, 2019).
Environmental  Over the course of time, there has been a pressure on companies to
adopt eco-friendly practices and techniques. Looking upon this,
GREGGS PLC has taken initiatives to reduce plastic, save energy
as well as water, decrease wastage and deflate carbon emissions.
(GREGGS. Social Responsibility. Environment, 2019)
Porters Five Force Analysis
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This is one of the most effective frameworks that are taken into use by a corporation to
gain knowledge of the attractiveness of a market. This model provides information to a company
about the intensity of rivalry prevailing within the confines of a corporate industry (Mukherjee,
2018). Through the usage of this model, the management of an entity is able to analyse the
position of enterprise within a specific market as opposed to the key market players in same
sector. GREGGS PLC has used this modular framework to gain an insight into the current state
of bakery market across the global periphery. The analysis of this model is presented with
respect to GREGGS as follows:-
Threat of New Entrants - High
The intensity of this force within the confines of bakery sector is acknowledged to be
high as the capital required to start a new bakery business is low. Further, the restrictions or laws
pertaining to this market are minimal (Walker, 2018). This poses risk to the sustainability and
market positioning of GREGGS PLC. To encounter this, the management of the respective firm
would put due emphasis over stipulation of high quality offerings at market place. This would
provide aid to the corporation in developing as well as maintaining extensive brand image and
retaining the customers for a long period of time.
Threat of Substitutes – Low
The intensity of this factor pertaining to industrial analysis framework with respect to
bakery market is regarded to be low for GREGGS PLC. This is so because the organisation
already is the leading bakery within United Kingdom and is renowned in several other countries
for its high quality and diversified offerings. This deflates the extent of this force for GREGGS
PLC as the purchase behaviour of customer automatically gets influenced to buy unique and new
products, which are already offered by the respective bakery. This aids the enterprise in attaining
competitive edge at market place.
Industrial Rivalry - High
The intensity of this factor in relation to bakery sector is recognised to be high. This is
owing to the presence of large number of companies within bakery market (Walker, 2018). Some
of the top notch companies pertaining to the concerned corporate sector are acknowledged to be
Pret A Manger, Finsbury Food Group, Treasury Wine Estates, Grupo Bimbo and Food Genius.
To deal with such extensive rivalry prevailing within the confines of bakery industry, the
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management of GREGGS PLC offers diversified products to customers, thereby influencing
them not to switch to other brands.
(Source: Top Bakeries of the Globe competing with GREGGS PLC, 2019)
Bargaining Power of Suppliers - Low
The intensity of this factor with reference to bakery market is regarded to be low for
GREGGS PLC. This is because the entity has large scale networking owing to which it has
connection with large number of suppliers at any point of time. This implies that if any of the
suppliers for the corporation is charging high from GREGGS PLC, then the company has the
option to switch to alternate vendors present at market place.
Bargaining Power of Buyers - High
The intensity of this factor in relation to bakery sector is recognised to be high. This is
because the consumption pattern of consumers within the concerned sector is aligned with
diversification and uniqueness brought in by bakeries in terms of product categories. This poses
significant threat to the market positioning and brand value of GREGGS PLC at market place.
To deal with this, the management of entity makes use of healthy ingredients which do not pose
caution to human lives. This aids the enterprise in maintaining its sustainability amidst the
extensively rivalry within bakery market.
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Illustration 1: Top Bakeries of the Globe competing with GREGGS PLC

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REFERENCES
Books and Journals
Pegan, G., Vianelli, D. and de Luca, P., 2020. International Marketing Strategy. International
Series in Advanced Management Studies.
Samiee, S., 2020. International marketing and the internet: a research overview and the path
forward. International Marketing Review.
Fojas, E., Moriarty, M., Lessan, N. and Barakat, M.T., 2018, November. Obesity and diabetes in
adults with down syndrome: data from a large diabetes centre in the United Arab
Emirates (UAE). In Society for Endocrinology BES 2018 (Vol. 59). BioScientifica.
Abdulla, A. and Garemo, M., 2018. High Cost of Gluten Free Products Might be Challenging for
People with Celiac Disease in the United Arab Emirates. International Journal, 6(2),
pp.37-41.
Resnick, S.M., Cheng, R., Simpson, M. and Lourenço, F., 2016. Marketing in SMEs: a “4Ps”
self-branding model. International Journal of Entrepreneurial Behavior & Research.
Shatskaya, E., Samarina, M. and Nekhorosheva, K., 2016. PESTEL analysis as a tool of strategic
analysis in international markets. SCOPE ACADEMIC HOUSE B&M PUBLISHING,
p.47.
Mukherjee, I., 2018. Applying Porter’s Five Force Framework in Emerging Markets—Issues and
Recommendations. In Strategic Marketing Issues in Emerging Markets (pp. 307-316).
Springer, Singapore.
Walker, J., 2018. Development and marketing of a bakery (Doctoral dissertation, California State
University, Northridge).
Online
GREGGS Rewards. 2019. [Online]. Available Through:<https://www.greggs.co.uk/rewards>.
Greggs warns ‘disorderly’ Brexit could undermine strong sales performance. 2019. [Online].
Available Through:<https://www.worldcoffeeportal.com/Latest/News/2019/Greggs-
warns-disorderly-Brexit-could-undermine-s>.
GREGGS. Social Responsibility. Environment. 2019. [Online]. Available Through:
<https://corporate.greggs.co.uk/social-responsibility/environment>.
How Greggs uses Facebook, Twitter, Pinterest and Google+. 2019. [Online]. Available
Through:<https://econsultancy.com/how-greggs-uses-facebook-twitter-pinterest-and-
google/>.
Legislation. 2019. [Online]. Available Through:<https://www.fob.uk.com/about-the-bread-
industry/how-bread-is-made/legislation/>.
UAE SOCIAL MEDIA USAGE STATISTICS (2019). 2019. [Online]. Available Through:
<https://www.just-food.com/analysis/what-are-the-next-major-markets-for-gluten-free-
uae-leads-growing-gulf-interest_id134575.aspx>.
What are the next major markets for gluten-free? UAE leads growing Gulf interest. 2019.
[Online]. Available Through:<https://www.just-food.com/analysis/what-are-the-next-
major-markets-for-gluten-free-uae-leads-growing-gulf-interest_id134575.aspx>.
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