International Marketing Report: Sainsbury's Global Expansion Analysis

This report provides a detailed analysis of international marketing strategies, focusing on Sainsbury's as a case study. It explores current marketing trends in the retail sector, opportunities and challenges of international expansion, and evaluates various market entry routes such as joint ventures, licensing, and franchising. The report investigates how marketing plans can be adapted for global markets, considering both global and local marketing approaches, and examines Sainsbury's potential entry into the Swedish market. Furthermore, it assesses the organization and evaluation of international marketing efforts, offering recommendations on market entry, product adaptation, pricing, promotion, and distribution strategies. The report concludes with insights and recommendations for Sainsbury's to succeed in the international market, highlighting the importance of understanding cultural diversity and competitive landscapes.

International Marketing

Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
LO1 Demonstrate an understanding of how marketing contributes to business strategies
in an international context...................................................................................................3
The current marketing trends in the retail sector.............................................................3
Opportunities and challenges of international marketing.......................................................6
LO2: Evaluate entry to a selection of international markets and define the key success
factors....................................................................................................................................6
The scope of international marketing.....................................................................................6
The various international marketing entry routes are explained below-................................7
Joint Venture.........................................................................................................................7
Key concepts of international marketing................................................................................8
LO3 Investigate how elements of the marketing plan can be adapted or standardized
across international markets.............................................................................................11
Global Marketing...............................................................................................................12
Local Marketing.................................................................................................................12
Sainsbury's in Sweden........................................................................................................14
LO4 Demonstrate an understanding of how to organize and evaluate international
marketing efforts................................................................................................................16
Recommendations on how and why the company should enter the international market.............17
Arguments in the global versus local debate. Role of product, pricing, promotional, and
distribution in the international markets........................................................................17
Conclusions and recommendations for the company......................................................19
References......................................................................................................................................21

Introduction
International marketing is defined as the marketing activity that operates across the
borders with the aim of fulfilling the needs of the global customers. The company considered for
the project is Sainsbury's, which is one of the leading brands in UK and it deals into grocery
retailing and banking (Nes, 2018). The report will outline the current market trends with the
definition of international marketing. In addition to this, the report will demonstrate the scope
with the key concepts of international marketing (Sharma and Ghoshal 2018). Any company can
achieve it desired goals by setting an image in the foreign market. The purpose of the report is to
investigate the reasons for expanding into global market and there are various ways to make
entry into the market. Such ways will also be included in the report such as licensing,
franchising, joint ventures and partnering (Meikle, 2019).
Main Body
LO1 Demonstrate an understanding of how marketing contributes to business strategies in
an international context.
Sainsbury's is one of the leading companies in the segment of supermarkets in UK and it was
founded by John James Sainsbury in the year 1869. The company started as a food retailer and
later it expanded into packaged food items. However, there are many competitors of the
company such as Morrisons, Tesco, Aldi and many others. The company is also listed in the
London Stock Exchange that is why people can buy shares whenever they want (Kozlenkova and
et.al., 2021).
The current marketing trends in the retail sector
As per Kira Deutch, the retail industry has faced rapid changes due to various reasons such as
Covid-19. Hence, companies are bringing new changes to move forward in the market and that is
why companies are changing their business models. With such changes companies got new ways
to increase their revenue and it is also stated that around fifty one percent of the profit comes
from online sales (Fernández-Monroy, Martín-Santana and Galván-Sánchez, 2018). Nowadays,
the retail sector has implemented many ways to fulfil the needs of the customers and around
seventy five percent of retailers company are selling their products online. Due to pandemic, the
companies have invested in the marketing activities by expanding the advertising and marketing
efforts. Almost all the companies are making use of multi-channel approach so that they are able

to deliver their message clearly to enhance the customer experience. Along with it, the
companies are taking the help of shopping campaigns to promote their both online and offline
stores. Also, E-mail Campaigns are the new ways to reach the customers of the market and their
preferences, interests can also be found out through these ways (The Top Retail Trends in 2022).
International Market is basically referred to markets outside the geographical location of that
particular economic nation. For instance, it facilitates a business organisation in serving a higher
amount of customer base due to access of serving into international markets. Sainsbury's could
use the strategy of international expansion in order to serve residing outside the economic
boundaries of United Kingdom. The primary and major concern under this meaningful strategy
lies in selection of the suitable and appropriate international market. In order to consider suitable
international market, there are various different steps and criteria which are as follows:
 International Marketing Objectives: The initial step in the meaningful process of
selection of international market involves international marketing objectives of
respective business organisation. For instance, it is not necessary that every international
economic nation is suitable for respective business organisation which could be
determined by recognition of international marketing strategies of respective business
organisation (Hitt, Ireland, and Hoskisson, 2019).
 Parameters for Selection: The succeeding step in the selection of the suitable
international includes exploration of specific criteria including resources, scenario of
market, government policies, international environment, etc. Moreover, it will facilitate
in laying down these particular criteria in order to look out for suitable and appropriate
international market for further expansion of respective business organisation.
 Preliminary Screening: This particular step involved in the process of selection of
international market includes eliminating markets that are not potential according to the
criteria of respective business organisation. The primary and major importance of this
particular step lies in enhancing clarity in consideration of most suitable and appropriate
international market for further expansion of respective business organisation. In
addition to that, it facilitates in narrowing the choices of different international markets
in order to consider the most suitable and appropriate out of them.
 Short Listing of Markets: This particular is basically the further evaluation of previous
step which includes short listing of international market according to the particular

criteria of respective business organisation. Once, the international markets which do not
match the potential are eliminated, it further facilitates in considering the most suitable
out of the left overs in the list (Bożyk, 2019).
 Evaluation and Selection: In order to carry out this particular step in an effective
manner, Cost benefit analysis and feasibility study is taken into consideration which
further determines the most suitable and appropriate out of them. The outcomes of these
frameworks facilitate acknowledging the most suitable out of all these international
markets in order to consider most suitable out of them.
 Test Marketing: This step includes testing the markets in order to check their suitability
for further expansion into the same. For instance, it also includes the capability of
respective business organizations in coping up with the business environment and
scenario in that particular economic nation for carrying out their business operations and
activities. In addition to that, outcomes of these small-scale operations further facilitate
in assessing the overall response from that particular economic nation for further
expansion of the business unit. Furthermore, it includes market trends, consumer
demands, macro-environment forces, competition, etc. that facilitates in attaining a clear
picture of operating in that particular economic market.
 Commercial Production: Referring to the previous step of small-scale testing or
production, senior level management representatives engaged in respective business
organisation proceeds for decision making regarding mass production of particular
products or services. In addition to that, it facilitates in eliminating deviations as well as
errors which could result in being a barrier in international expansion of business unit in
foreign economic nation.
Therefore, the chosen business organisation i.e., Sainsbury's considers the determined
process of selecting an international market in order to consider the most suitable and appropriate
economic market for further expansion. In order to be precise, carrying out the mentioned
process of selecting an international market contributes various additional values towards
international expansion of respective business organisation. Furthermore, the systematic steps or
stages under this process facilitates in analysing each and every factor associated with the same
in an efficient manner. Therefore, application of determined process of selection of international

market facilitates in consideration of most suitable and appropriate international market for
further expansion of business unit (Liang, and et. al., 2022).
Opportunities and challenges of international marketing
There are various opportunities which are faced by the international marketing are explained
below-
 Being in international market allows to provide better standard of living as it will bring
opportunities for the business with better growth. The growth will allow to bring better
image of the company in front of its customers.
 The company get international exposure as the customer base will be expanded that will
tend to generate more profits. The marketing can be done by making use of social media
and online adverting.
There are various challenges which are faced by the international marketing are explained
below-
 One of the main issues is the cultural diversity as all the countries have their own habits,
language, tastes and preferences. So, the company can face the issue while presenting
their product in the market.
 Another issue is competition and it is one of the main issues which is faced by the
companies because it is complex for the companies to sell the products and compete with
existing companies in the market
LO2: Evaluate entry to a selection of international markets and define the key success
factors
The scope of international marketing
International marketing is the reason for bringing peace among the nations and all the activities
such as marketing, production and development allows the people to work together (Cateora and
et.al., 2020). Along with it, the global market reduces the risk and bring more opportunities for
the business. For example, if the company manufactures a project in a particular country then it
can be a cost-effective way.
The scope of international marketing are as follows-
Imports

It is said to be the easiest form of international marketing in which one company imports from
one another company for selling in the domestic market. This can be possible when one country
has a demand for imported goods or services (Benson, 2022).
Advantage
With the help of imports, the companies can generate better profits and to earn more profit, the
companies are required to make proper efforts with hard work.
Disadvantage
The risk of currency will always be there for the company because all the countries are required
to maintain their foreign exchange flow.
Exports
It is the opposite of the above-mentioned imports in which the company can sell the products to
the locals to generate more revenues.
Advantages
Due to exports, the company can diversify in the market and that expansion increases the level of
production.
Disadvantages
The company may lose its focus on the main market, and present customers and in the process of
market research, the company has to make investments.
The various international marketing entry routes are explained below-
Joint Venture
The companies can enter the market by joining with other foreign companies to produce and
promote the products or services. Mainly, it is a proper arrangement between two or more
businesses to achieve the same goals (Pegan, Vianelli, and Luca, 2020).e Such ventures are
made for a short period of time.
Licensing
It is considered a method of entering into a foreign market by having an agreement with a license
that presents the right to use trademark and patent. Also, licensing helps companies to enter in
the targeted countries (Akter and et.al., 2021). It involves some investment that will in future
provide good amount and high return on investment.
Franchising

Another way of entering the market is franchising as it contains a chain retail company under
which the buyers pay a certain amount to manage the branches of the company. It is used by
such companies who want to increase their profits by undertaking indirect management.
Concerning the chosen company, it should adopt the option of Franchising because in
this the company will be able to skip the start-up stage and people already trust the brand
globally. The company will get better chances to grow and fewer chances of risk with no failure.
Key concepts of international marketing
All the below mentioned concepts have a major impact on the global marketing-
International marketing
This marketing takes place across the borders which comprises of foreign direct investment, joint
ventures and exports, and many others.
Domestic marketing
It is defined as managing all the marketing activities and in which less investment is required as
compared to other marketing (Ayuso and Navarrete‐Báez , 2018). Under this, only one currency
is used, and also the companies have the same policies and regulations.
Multinational marketing
It is said to be the process which comprises of selling the products and various services to the
customers globally. Under this, the companies are allowed to expand into new markets.
The rationale for any organization to expand into the market internationally is explained
below-
When the company expands globally they are more likely to elevate the level of sales by
reducing the operational cost (Baena, 2018). They also can attract loyal customers and they can
also have the opportunity to outsource which will directly reduce the overall cost and better
efficiency.
They can also have the opportunity to enter the market and due to this company will invest in
new innovations to develop their products or services. Along with it, expanding into the
international market allows the company to attract new talent and they get to learn about new
cultures and languages by working in global work teams.
Market entry strategy is defined as how a company enter into foreign market to expand into a
foreign company (Carolan, 2018).
For example-

Exporting
It is considered to be the most traditional market entry strategy in which some companies use
direct exporting. The companies which deal in luxury products often use it.
Advantages
One can easily expand its market by exporting and also lead to a greater level of production with
better margins.
Disadvantage
The company can lose focus on the home markets and its existing customers due to exporting.
Franchising
Advantages
Under this, the business plan is ready to use and due to this, the chances of risk are low as
compared to other businesses.
Disadvantage
In this, the level of flexibility is very less as they are to keep up with the rules and regulations of
the agreement.
Piggybacking
It is one of the unique ways to enter the international market and it is a low-cost market entry
strategy that comprises of two or more firms. It is preferred by the companies for a longer period
(Kotler, Pfoertsch and Sponholz, 2021).
Advantages
It provides easy access to the international market and this also allows the company to improve
its brand awareness in the international market. It also allows a company to help another
company by using the piggybacking strategy by reducing the overall cost. It can be seen that
when one company combines with another company, they get access to a new market with more
opportunities. All the companies have to spend a lot on advertising or marketing campaigns for
the purpose of reaching a larger audience. And when the less amount is spent on an
advertisement then the company will be able to reduce the overall cost.
Disadvantages
Under this, the reputation of one company depends upon another company as it is the joint
reputation of both the companies. It is also a difficult task to meet the demand of the customers
as it keeps on evolving this can bring a bad impact on both the companies.

The term international marketing is defined as the methods which are used to market the
products and services globally (Strizhakova and Coulter, 2019). With every project or campaign,
proper research is important to have proper knowledge about the targeted market and its rules.
International marketing has become easier due to various tools with the aim of reaching the
target audience such as google ads and social media ads. Various international marketing
approaches are explained below-
Advertisements
It is one of the powerful tools of international marketing as it helps to achieve the desired target
for the product globally (Domurath and et.al., 2020). In which internet plays a key role in
persuading the behaviour of the customers and it allows to enhance the image of the brand in the
market.
Price promotion
Another tool is the price promotion, in which the price is reduced with the aim of increasing
sales for example coupons, sales events, limited time offer, discount and many others ( Buccieri,
Javalgi and Cavusgil, 2020). It will generate the interest of the customers towards company.
Customers feel good when they are provided a product or service at a lower price then the real
price. This way is used by many companies for countless years to products and services to the
customers.
Search Engine Optimization (SEO)
According to Alex Chris, for any business search engine optimization plays a crucial role and it
is responsible for the smooth running of the operations. More than seventy percent of people are
seen to choose the top five suggestions in the search engine pages. For that the website of the
company should be the best that will directly affect the behavior of the customers (What is SEO
and why is it important?).
Influencer marketing
It is one of the best ways to enhance the image of the company in the global market and elevate
the level of awareness among the targeted audience. It reaches to the customers very easily and
there is no requirement for additional funds for finding the audience or promoting about the
products or services (Agarwal and Wu, 2018).
Examples from other organizations
1. Lays make use of regional flavours of the countries for international expansion.

2. Spotify allows the new artists to reach audiences and this is one of the reasons for its
success.
3. Redbull's website has content in many languages along with localized content.
4. Colgate has chosen a way to educate the customers and this strategy helped the company
to become the leading company in the world (Twardzik and Heffner, 2019).
LO3 Investigate how elements of the marketing plan can be adapted or standardized across
international markets.
International marketing is defined as the application of the marketing principles in more than one
country and the number of global customers are increased in this. Under this marketing, the
company focuses on reducing the cost inefficiency on both regional and national levels.
According to Cateora and Graham, the term international marketing is linked with business
activities and their performance. Activities are designed to promote the flow of the products and
services of the company. According to Terpstra and Sorathy, international marketing revolves
around the global customers to satisfy them by coordinating the marketing activities in the global
environment. Stated by Kotler, International marketing is related to deal with the marketing
actions in various geographical markets ( Donthu and et.al., 2021).
Explain the main differences between International marketing and local marketing is
explained below-
International marketing Local marketing
It is defined as using marketing techniques
outside the national boundaries which is why
its scope is wide.
It is defined as using marketing techniques
within the national boundaries that is why, its
scope is limited.
This marketing consists of various cultures and
languages.
This marketing consists of one culture and one
language.
Under this deep research is required because
there are many rules and regulations which the
company has to follow.
Under this research is required but not as much
in international marketing.
Under this the activities such as promotion,
production, and customer satisfaction are
Under this, the activities such as promotion,
production, and customer satisfaction are

undertaken within one country. undertaken at the international level.
It comprises of risk factors because of socio-
cultural differences and exchange rates.
As compared to international marketing, it
comprises of less risks in the local market.
It deals with various markets and countries and
the company uses various policies for the
promotion of products or services.
It deals with only one market and the company
uses same policies for the promotion of
products or services.
It is a complex and challenging process
because it contains differences in the rules and
regulations of the countries ( Pegan, Vianelli,
and Luca, 2020).
While in this the company has to follow only
one country's rules and regulations.
Difference between global and local marketing with examples
Global Marketing Local Marketing
As compared to local marketing, it is vast and
the message used in this is for everyone. In
addition to this, global marketing campaigns
are used for the purpose of raising the profile
of the company.
It mainly focuses on a small target audience
and it is an involved process. Their message
consists of one language and culture.
It provides main benefits to the company such
as bringing a new customer base with high
revenue and better productivity.
It comprises consumers' behavior and their
buying habits and under this, the local
customers are targeted.
Also, in this, the needs of the potential buyers
are discovered globally. In this, the companies
are required to do proper research and
evaluation of products or services. The
companies are to consider the factor of
language as multiple languages are there
globally.
Under this the end goal is precise and a
particular group of audience is found with the
aim of attracting them. For the purpose of
saving time and money, the companies are
required to research about the targeted groups.