International Marketing Strategies for Eat: A Case Study

This case study examines the international marketing strategies of Eat, a UK-based sandwich chain, exploring its rationale for global expansion, market selection criteria, entry modes, and marketing mix adaptation. The study analyzes the global versus local debate, highlighting the implications of each approach for Eat's success. It also delves into competitor analysis using Porter's Five Forces framework, providing recommendations for Eat's international operations.

Unit 40 International Marketing
1

Table of Contents
INTRODUCTION..........................................................................................................4
LO1...............................................................................................................................5
P1 SCOPE AND KEY CONCEPTS OF INTERNATIONAL MARKETING...............5
P2 THE RATIONALE FOR EAT TO WANT TO MARKET INTERNATIONALLY
AND DESCRIBE THE VARIOUS ROUTES TO MARKET, THE ORGANISATION
CAN ADOPT.............................................................................................................8
M1 THE OPPORTUNITIES AND CHALLENGES THAT MARKETING
INTERNATIONALLY PRESENTS TO YOUR CHOSEN CLIENT ORGANISATION
................................................................................................................................11
LO2.............................................................................................................................12
P3 EVALUATE THE KEY CRITERIA AND SELECTION PROCESS TO USE
WHEN CONSIDERING WHICH INTERNATIONAL MARKET TO ENTER............12
P4 USING EXAMPLES, THE DIFFERENT MARKET ENTRY STRATEGIES,
INCLUDING THE ADVANTAGES AND DISADVANTAGES OF EACH.................15
M2 APPLY THE MARKET EVALUATION CRITERIA AND ENTRY STRATEGIES
AND MAKE RECOMMENDATIONS FOR EAT......................................................18
LO3.............................................................................................................................19
P5 OVERVIEW OF THE KEY ARGUMENTS IN THE GLOBAL VERSUS LOCAL
DEBATE..................................................................................................................19
M3 EVALUATE THE CONTEXT AND CIRCUMSTANCES IN WHICH EAT
SHOULD ADOPT A GLOBAL OR LOCAL APPROACH, HIGHLIGHTING THE
IMPLICATIONS OF DOING SO..............................................................................20
P6 PRODUCT, PLACE, PRICING AND PROMOTIONAL DISTRIBUTION
APPROACH DIFFERS IN A VARIETY OF INTERNATIONAL CONTEXTS..........21
M4 DETERMINE AND ARTICULATE IN DETAIL HOW TO ADAPT THE
MARKETING MIX OF EAT IN DIFFERENT INTERNATIONAL MARKETS..........22
LO4.............................................................................................................................23
2

P7 VARIOUS INTERNATIONAL MARKETING APPROACHES THAT EAT CAN
ADOPT....................................................................................................................23
P8 COMPARE HOME AND INTERNATIONAL ORIENTATION AND WAYS TO
ASSESS COMPETITORS, OUTLINING THE IMPLICATIONS OF EACH
APPROACH............................................................................................................24
M5 EVALUATE VARIOUS MARKETING APPROACHES AND COMPETITOR
ANALYSIS IN RELATION TO AN ORGANIZATION AND MAKE
RECOMMENDATIONS ON HOW THEY SHOULD OPERATE IN AN
INTERNATIONAL CONTEXT.................................................................................26
CONCLUSION............................................................................................................27
REFERENCES...........................................................................................................28
3

INTRODUCTION
International marketing is a modern concept which applies various marketing
principles at a global level so as to effectively take marketing mix decisions.
International business helps to render several benefits to a company and
organisation that expands internationally in the form if the new customer base,
increased market share and the new business relations and so on.
Eat is a chain of sandwich shops that have nearly 110 branches in the UK which
have the majority of them located in London. It is in existence since 1996 and is
owned by Niall & Faith MacArthur. It is a private company which donates the unsold
food items to the hostels and the charities. It is a company that is since 20 years with
a good sense and good food and the fresh food changes with the season. It has
great taste and the main key is their teamwork. The market of this restaurant is at
almost every corner of the UK (Rupert and Smith, 2016).
4

LO1
P1 SCOPE AND KEY CONCEPTS OF INTERNATIONAL MARKETING
International marketing is a concept that involves marketing activities in more than
one country at the same time. This is also termed as global marketing which will
conquer the different physical locations and the markets by expanding and operating
a business activity in different countries. This will also cover wide consumer groups
and the products in different geographic boundaries.
KEY DIFFERENCES BETWEEN THE DOMESTIC MARKETING AND
INTERNATIONAL MARKETING
Domestic marketing deals with the marketing activities in the small market areas with
same geographical boundaries while international marketing aims to serve wide
geographical areas in more than one country. In domestic marketing, there are low
governmental interventions while in international marketing there are high
interventions and faces a high risk of huge capital investments (Rupert and Smith,
2016).
Eat restaurant is seeking to expand internationally which will glance at the following
scope and the concepts of the international marketing which will render its various
opportunities to expand internationally and learn about the various important scope
of international marketing.
SCOPE OF INTERNATIONAL MARKETING
The scope of international marketing will involve the following:
Export
Under this scope of international marketing Eat can go for selling the products in the
international markets and earn huge revenues and this can helps in boosting the
growth of it (Papadopoulos and Heslop, 2014).
5

Imports
It covers the scope where the goods and services are brought in the domestic
country from a foreign country and helps in hiking the production line and quality
products (Papadopoulos and Heslop, 2014).
Contractual agreements
Through the contractual agreements, Eat can enter into any contracts for its chains
to set up in other countries and gain the technical assistance and resources for co-
production.
Strategic alliances
This will render some better scope to Eat and will help to retain competitiveness in
the international market as well. Through strategic alliances, the scope of
competition can be reduced and will boost the innovation flow (Meissner, 2012).
THE MAIN CONCEPT OF THE INTERNATIONAL MARKETING
In the international marketing strategic decisions are addresses which will help to
understand the different attitudes towards the company’s involvement.
The staff of Eat and the businesses will operate in the following different four ways
as under:
Ethnocentric orientation
The local customers’ needs and requirements will be undertaken to develop new
products and Eat will focus on the policies and practises of the domestic country
where they will expand (Schreiter, 2015).
Regiocentric orientation
According to the political similarities and the regions, the market is segmented under
this orientation (Katsikeas, 2018).
Geocentric orientation
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By fulfilling the legal and the political limitations the global problems will be solved so
as to integrate the worldwide operations.
Polycentric orientation
A business research will be carried out under this orientation and the individual
needs will be addressed that will help in discovering the product adaptation through
effective implementation of the pricing and the promotional strategy which will help
Eat to fulfil the local needs (Katsikeas, 2018).
Some of the factors that Eat should consider before expanding internationally are as
under:
7
Target
market
Controllable factors
(Price, Promotion, Place, Product)
Foreign Uncontrollables
(economy, political-legal,
geographical, infrastucture)
Domestic Uncontrollables
(Competition, Economy,
technology, culture,
political-legal)

P2 THE RATIONALE FOR EAT TO WANT TO MARKET INTERNATIONALLY
AND DESCRIBE THE VARIOUS ROUTES TO MARKET, THE ORGANISATION
CAN ADOPT
In order to take advantage of its existing business for 20 years and expand its
sandwich chain business in other countries Eat is looking forward to expanding in
other countries too. This will help it to shift its focus from the UK to other countries
too and establish it business there so as to reap more profits. It has successfully
established and operated since 20 years in the market of the UK and so in order to
successfully compete in the foreign market and capture the market share it is
planning to expand internationally (Katsikeas, 2018).
The rationale behind the decision of Eat to market internationally includes the
following:
 The domestic markets of Eat have come to a saturation stage which is leading
to difficulty in raising profits and the sales targets so the decision to go
international and market internationally will help it in resolving with these
issues (Hoppner and Griffith, 2015).
 It can have wide access to the sandwich market in the foreign markets so
expanding its sandwich chains in other markets too in other countries will help
in obtaining high sales and better international recognition.
 The growth rate and the profitability can form another reason that can lead
Eat to market internationally (Hoppner and Griffith, 2015).
 Through expanding internationally it can help to mitigate the competitive
rivalry that might arise in front of it in future by rendering protection to its
domestic markets in future.
8

Some other reasons that can form a reason for Eat to expand globally and to market
internationally may be from the figure depicted below:
Fig: Reasons for companies going global
Source: http://www.yourarticlelibrary.com/business/8-reasons-why-most-companies-
prefer-to-go-global-explained/13176
In order to market internationally, there are available some routes to market
internationally which will help in ensuring the success of Eat in the overseas market.
Every channel or route has advantages and disadvantages associated with it which
will also be discussed.
Agent
Eat can work in the foreign country with an agent that will help to provide information
about the products and services in the international market and will work on their
behalf in return for a commission fee (Demangeot, et al. 2015). The advantages of
this route to market include gaining effective knowledge about the market and the
product that will help in better positioning in the foreign market. Through the agents,
the prices and the brand image can be better controlled. There will be lack of control
left with the owner of Eat as the foreign operations will be handled by the agent in
the foreign country (Schreiter, 2015).
9

Office at the overseas territory
This route will help Eat to set up a new venture in the international market but will
incur huge cost and risk. This route will also render some benefits as it will render
better customer experiences to the customers of a foreign country as well
(Demangeot, et al. 2015).
Exhibitions and tradeshows
Through the exhibitions and tradeshows Eat can get access to the market
information about the foreign country and will also gain information about the
products present in the overseas that can compete with the products of Eat
Restaurant.
Trade missions
It is a government funded the overseas program that will allow Eat to meet with the
foreign industry executives and will help them in building relationships and networks
with them (Kotabe and Helsen, 2014).
10

M1 THE OPPORTUNITIES AND CHALLENGES THAT MARKETING
INTERNATIONALLY PRESENTS TO YOUR CHOSEN CLIENT ORGANISATION
Different opportunities and the challenges that will be faced by Eat in marketing
internationally include the following.
Opportunities
 It will have prospects of achieving better customer satisfaction and recognition
in the foreign market too (Morschett, et al. 2016)
 Eat will have an opportunity to get established its global brand
 This will have new prospects of boosting the market share and enhance its
profitability
Challenges
 There may be the high investment and setting cost involved in the other
foreign country for Eat to set up its chain.
 Eat may also face high political and economic issues while marketing
internationally (Hoppner and Griffith, 2015)
 The resource unavailability will also be faced by it
These opportunities and challenges must be considered by Eat while marketing
internationally.
11

LO2
P3 EVALUATE THE KEY CRITERIA AND SELECTION PROCESS TO USE WHEN
CONSIDERING WHICH INTERNATIONAL MARKET TO ENTER
SELECTION CRITERIA
Some of the key criteria and selection process used by Eat while considering to
market internationally includes the followings:
Trade barriers
The standards and the barriers to trade including the non-tariff barriers and the tariff
barriers should be necessarily considered by Eat so that the regulations of the
packaging, labelling and other will be adapted (Marchi, et al. 2014).
Country performance
The customer’s preferences and demographics will act as other selection criteria for
Eat as it will help it to cater its products and services that will attain better customer
satisfaction.
Political risks
The political risks should be duly undertaken while entering a new country it will help
in complying with the political norms and behaviour of that particular country
(Demangeot, et al. 2015).
Infrastructure
For Eat there is a need for the skilled staff and the human infrastructure that will help
in effectively setting its business in a foreign country with the same taste ad the
specification that it is famous for.
Environmental concern
Eat will undertake the environmental standards of that particular country at which it is
seeking to expand a-or enter in as it may differ. Like the machinery used for making
sandwiches should follow the foreign environmental standards (Schreiter, 2015).
12

Cultural knowledge
For Eat to market internationally and selection the international market it will gain the
knowledge of the culture and the beliefs of the people of that country that will help it
in its effective selection of the country to expand. This will help to find best fit the
customer’s needs (Marchi, et al. 2014).
SELECTION PROCESS OF INTERNATIONAL MARKET
Fig: Process of international market selection
These steps will be followed by Eat to select the international market which will begin
with the country identification that it can enter through different entry modes and then
will evaluate the alternatives of different countries on the basis of social, political,
economic and the cultural factors (Schreiter, 2015). Then it will conduct preliminary
screening that will help to identify the prospective costs and the suitability of the
different entry methods. After this Eat will then enter into the in-depth screening of
13
Country identification
Prelim inary screening
In-depth Screening
Final
selection
Dir
ec
t
ex
pe
rin
ce

the country so that the detailed information of the target market can be collected and
analysed. Then it will drive towards the final selection of the country which will help
the business in the new market to prosper. Through the representative of the
company in the final step, the direct experience will be undertaken to identify the
competitors and then understand the prospective challenges and opportunities
(Terpstra, et al. 2012).
14

P4 USING EXAMPLES, THE DIFFERENT MARKET ENTRY STRATEGIES,
INCLUDING THE ADVANTAGES AND DISADVANTAGES OF EACH
Some of the popular and best methods of entry strategies depend on the level of
ownership and the contribution of the know-how.
Fig: Different entry modes strategies
Source: https://www.slideshare.net/charurastogi/6-international-marketing-market-
selection-modes-of-entry-in-international-markets
Every strategy has some advantages and disadvantages associated with them which
will be discussed as under:
Exporting
It is one of the easiest strategies that allow new entry market so that it can sell the
products easily (Naidoo, et al. 2016).
Advantages
 Leads to the generation of the high profits
15

 More control is possible
 Less risk involved
Disadvantages
 It incurs huge transportation costs
 It is only applicable for a wide range
 Financial knowledge is required (Samiee, et al. 2015)
Contractual modes
Some of the contractual modes like joint venture, licensing, franchising and other
management contracts come under contractual modes.
Advantages of joint ventures
 It brings in new expertise
 The risk gets shared
 It leads to more resource access
Disadvantages of joint ventures
 It has unclear objectives (Naidoo, et al. 2016)
 Leads to cross-cultural issues
Advantages of licensing
 The cost of production gets saved
 Leads to new market access (Samiee, et al. 2015)
 Leads to royalty income
Disadvantages of licensing
 It is the expensive strategy
 It leads to more dependence (Naidoo, et al. 2016)
16

Foreign direct investments
It involves make or buy decisions and it can also include the ranch r subsidiary
setting in another country (Naidoo, et al. 2016).
Advantages of FDI
 It leads to better control over the operation and investment decisions
 It leads to better brand image
Disadvantages of FDI
 Leads to the high cost of operations
 There is high risk involved (Terpstra, et al. 2012)
17

M2 APPLY THE MARKET EVALUATION CRITERIA AND ENTRY STRATEGIES
AND MAKE RECOMMENDATIONS FOR EAT
Through the market evaluation criteria the entry strategies recommendations for Eat
are as under:
Pricing
Eat should more focus on the prices of the foreign country that the customers will be
ready to pay and thus develop its pricing strategies in that way.
Size of market
The demographics and the volume of the population that can be its target customers
need to be considered by Eat so that it can offer its products comply with those
needs.
Analysis of competitors
Before entry into the new market the competitive analysis should be conducted by
Eat so that it can operate and enter significantly effective (Terpstra, et al. 2012).
Eat is thus recommended to enter into the new market through the mode of strategic
alliances and franchising that will help it to branch out its operations in other
countries too that will help it in the successful expansion.
18

LO3
P5 OVERVIEW OF THE KEY ARGUMENTS IN THE GLOBAL VERSUS LOCAL
DEBATE
Eat is seeking to go international so before entering the global market it faces some
local versus global arguments that are as under:
One major argument that emerges is to choose between the product selling in the
international market by applying local marketing or global marketing. This will be
undertaken by Eat so as to gain high recognition in the foreign market (Schreiter,
2015).
Another key argument in the global and local debate is to apply right fit of the
marketing mix strategy that will render unified and standardise strategy to the
business so as to fulfil the needs of the customers.
The vital argument is such that Eat should lay emphasis on thinking globally and act
from the local perspectives such that the differences and the similarities can be
better traced such that the profits can be injected effectively through international
expansion (Wright, 2016).
Eat will also face an argument of the web content that it will advertise in various
languages so as to deliver effective messages to the audience which is easily
understandable.
Thus keeping in view these arguments it will step in the global market and ensure its
success in long-term (Wright, 2016).
19

M3 EVALUATE THE CONTEXT AND CIRCUMSTANCES IN WHICH EAT SHOULD
ADOPT A GLOBAL OR LOCAL APPROACH, HIGHLIGHTING THE
IMPLICATIONS OF DOING SO
From the above arguments discussion, it is evident that Eat should go for a global
approach as it has a good brand name and it can expand in other regions too by
successfully injecting a local action. It will undertake the local taste and preferences
of the customers of the foreign market and thus render its products in the same
manner. The main aim will be to serve the local needs of the customers that too at
an affordable price and different taste such that the competitive advantage can be
gained by it (Armstrong, et al. 2015).
Similar sandwich chain and other food chains will be considered by it that will help it
to take competitive advantage and design its strategies such that it can attract more
customers. It will serve the soups, hot pots, salads, cold food, hot food, pastries, cold
drinks and coffee in accordance with the local tastes (Wild, et al. 2014).
Thus effective pricing and serving strategies of Eat will help it to conquer the market
share by effectively adopting the marketing strategies that will help to render
standardise and customise solutions to the customers and enhance the profits
(Kotabe and Helsen, 2014).
20

P6 PRODUCT, PLACE, PRICING AND PROMOTIONAL DISTRIBUTION
APPROACH DIFFERS IN A VARIETY OF INTERNATIONAL CONTEXTS
For marketing in the international market, Eat has to adopt different strategies by
combining price, place, promotion and product so as to establish efficacy in the
global market. This marketing mix will be designed in accordance with the needs of
the local market and thus reach the maximum number of customers (Meissner,
2012).
Product
The products catered by Eat includes coffee, soft drinks, food, salads, pastries, sups
and many more that will be altered and served to the foreign customers in
accordance to their taste and preferences. This will help to maximise the sales and
inject better brand image (Armstrong, et al. 2015).
Place
The location and the place should be decided such that the maximum of the
customers can gain easy access. The products and services of Eat can be rendered
at the right place and right time so that the distribution can become easy.
Price
The prices should be designed such that the competitors that are present in the
foreign market can be easily overcome and should be such that the customers can
easily pay in return of the quality products of Eat (Marchi, et al. 2014).
Promotion
The promotions and advertising will be carried out by Eat in different methods that
can be easily understood by the local people of the foreign country. It will be carried
out in different languages and the style which will attract the local people. The culture
and prejudices will be considered by Eat that will help in gaining positive publicity
(Meissner, 2012).
21

M4 DETERMINE AND ARTICULATE IN DETAIL HOW TO ADAPT THE
MARKETING MIX OF EAT IN DIFFERENT INTERNATIONAL MARKETS
Marketing mix should be effectively adopted by Eat so that the personal beliefs and
culture of the local people there, is not violated. The marketing campaign should be
carried out in the foreign market such that the culture and religion are not violated.
One such example that failed miserably while setting its expansion in a foreign
country is Pepsodent that utilised ineffective marketing mix strategies. The marketing
campaign used by it in South East Asia was such that it offended the local people
through its tagline ‘it whitens the teeth'. Through this ad campaign, the local culture
got offended as there the black teeth are a sign of attractiveness which led to its
miserable failure (Morschett, et al. 2016).
22

LO4
P7 VARIOUS INTERNATIONAL MARKETING APPROACHES THAT EAT CAN
ADOPT
There are mainly two marketing approaches to market internationally. One is
centralised approach and other is the decentralised approach to international
marketing.
Centralised marketing approaches
Through centralised marketing approach, international marketing can be carried out
which will not delegate the powers in the foreign country but keep a centralised
control over the operations and the management through the home country itself. It
can keep a strong control over the operations of other countries through a
centralised system as the entire decision making and price decisions are focused on
the central office at the home country (Morschett, et al. 2016).
Decentralised marketing approaches
Through the decentralised marketing approach, the marketing manager of a
company will render the decision making power and authority to the local sales
managers of the foreign country (Armstrong, et al. 2015). This will lead to better
analysis of the local preferences such that they can design the marketing mix
according to the local demands prevailing there.
For Eat the decentralised approach to international marketing is recommended as
the centralised approach is not possible. As in centralised approach, the products
are made in the home country and they are sold to the foreign country but Eat will
best fit with the decentralised approach where it can appoint different sales
managers locally in the foreign country and gain positive control over different
countries (Balakrishnan, et al. 2017).
23

P8 COMPARE HOME AND INTERNATIONAL ORIENTATION AND WAYS TO
ASSESS COMPETITORS, OUTLINING THE IMPLICATIONS OF EACH
APPROACH
Home orientation
This approach is the one that goes for selling the domestic products in the foreign
country and carry out the international operations by expanding the local operations.
This approach is the one that is undertaken in order to dispose of the excess
production of the domestic market in the foreign market. This leads to the extension
of the domestic market in the foreign and keeps intact its marketing style in both the
market. The foreign market that is selected s the one that has similar demand
patterns and the customer’s preferences as that of the home country (Cavusgil, et al.
2014).
International orientation
In this approach, same products will be catered to many countries so that the
economies of scale can be archived by lowering the general prices (De Mooij, 2015).
As under this approach, large-scale production is carried out so the final product cost
gets low which adds to the advantage.
Ways to assess the competitors
Through the detailed competitor analysis of Eat by applying Porter Five forces the
competitors can be analysed (De Mooij, 2015).
PORTER FIVE FORCES ANALYSIS
Threats of new entrants
There is a high threat of new entries as there is less cost incurred in setting this
business in the foreign country. Through the brand recognition of Eat, it can mitigate
this threat (Demangeot, et al. 2015).
24

Threats of substitutes
There are many substitutes available for Eat as there are many chains that deliver
the same kind of products. But due to the quality and the taste of the products
offered by Eat it can overcome this threat.
Bargaining power of consumers
As there are many competitors that offer discounts and offers to attract the
customers. So there is high bargaining power of the consumers (Demangeot, et al.
2015).
Bargaining power of suppliers
The suppliers are less and the good relationship is maintained by these by Eat so
the power of suppliers is high as there are fewer suppliers available in the market.
Threats of existing competitors
There are many other competitors that render similar products and meals which lead
to high competitiveness in the same industry (Hoppner and Griffith, 2015).
25

M5 EVALUATE VARIOUS MARKETING APPROACHES AND COMPETITOR
ANALYSIS IN RELATION TO AN ORGANIZATION AND MAKE
RECOMMENDATIONS ON HOW THEY SHOULD OPERATE IN AN
INTERNATIONAL CONTEXT
Different marketing approaches that are available for Eat includes centralised and
the decentralised approach. For Eat the most appropriate approach to marketing is
the decentralised approach. As this approach has several advantages and
disadvantages associated with it which leads to better 9roducts and services
offerings to the customers. The competitiveness of the Eat is also analysed through
the local managers appointed in the foreign countries which will help to render Eat
better ideas and information about the threats available. The current market situation
and the opportunities present can also be better analysed through the decentralised
approach of Eat (Katsikeas, 2018).
Thus Eat should operate in the international context with the decentralised approach
by catering to the local needs of eh people in the foreign country and analysing the
competitive position effectively.
26

CONCLUSION
International marketing has emerged as a very important aspect of Eat that is
seeking to expand internationally. The world economies are getting globalised that is
rendering many benefits to the companies that go for global markets. Through
effective analysis of the scope and the concepts of international marketing Eat can
better establish in the international market. Through choosing the best entry mode
and the strategies in the international market Eat can retain the competitive
advantage and enhance its profitability evening the international markets. Through
effective marketing mix decision, the international context can better be catered that
will fit the needs of the foreign markets as well and help Eat in ensuring efficiencies
in the long run.
27

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