International Marketing: Strategies for Global Success and Challenges

Introduction to international marketing and Sainsbury's expansion plans in Kazakhstan. Section 1 covers a PESTLE analysis of the market environment in Kazakhstan. The report discusses political, economic, and social factors that can affect Sainsbury's growth in Kazakhstan.

INTERNATIONAL
MARKETING

TABLE OF CONTENTS
INTRODUCTION................................................................................................3
Section 1..........................................................................................................3
Pestle analysis of Environment and Market Trends:-....................................3
Market structure, geographic spread, customer segmentation and
positioning:-..................................................................................................4
Section 2..........................................................................................................5
Domestic, regional and International success :-...........................................5
Competitive advantage:-..............................................................................6
Challenges in international market:-............................................................7
SECTION 3........................................................................................................7
Strategies for Global Marketing....................................................................7
CONCLUSION..................................................................................................12
REFERENCES....................................................................................................1
Online...........................................................................................................1

INTRODUCTION
International marketing refers to the principle of marketing to satisfy
the needs and wants of audience in international level. International
marketing and by which way it is easy for the company to expand its market
in new location and country. Sainsbury's is second largest retailer in UK
supermarket share and working in expansion of its business in other
countries and working globally.
Kazakhstan is the new target of Sainsburry's, and discuss that in the report
the factor to establish in Kazakhstan. Further, in this report discuss the
factor's and environment in Kazakhstan which can affect Sainsburry's growth
in the business. It shows what factor and product choices sainsburry will
focus in working in Kazakhstan as it is different from working in UK. Report
will also provide the recommendation to build an advantage to the
sainsburry for future.
SECTION 1
Pestle analysis of Environment and Market Trends:-
Pestel analysis of market environment of Sainsburry's for Kazakhstan:-
Political Factors:- Political factors which effect the working environment as
working in UK is totally different from working in Kazakhstan. Both works in
different culture and both have different scenarios. Sainsburry's as working
in retail sector need to focus on the Political changes they have to take care
in the Kazakhstan while working there with the plan of expansion.

Sainsburry's work in a big sector of retail and it includes a lot of things which
can also effect the policies of any country and for that the company need to
focus.
Economic Factors:- Economic factor refer to the economic policies of the
country and working according to the economic condition as is it good for the
people to work in Kazakhstan as there is total different language and
different policies even the economic structure of Kazakhstan is totally
different from UK. Inflation in prices strength of the market, economic
structures of a country, employments of Kazakhstan etc. Economic factor
affect the costing and pricing as according to the economic condition prices
varies, it also affects the purchasing power of the audience and the
behaviour of the audience on their purchasing habits due to the pricing and
economic condition (Cateora, 2020).
Social factors:- Social factor include the taste and preference and the
habits of people in a country. People from UK think differently and People in
Kazakhstan thinks differently as it can show effect in the organizations goal
and the company need to focus on the surveys as to know the taste and
preferences of the audience from Kazakhstan. It also includes their habits as
Kazakhstan audience for on health eating and in according to that sainsburry
need to provide new ways and product so that they can attract more of the
customer.
Technological factor:- This factor includes the availability of technologies
in the country and it shows the use of technologies in Kazakhstan. Working

in this Kazakhstan is very beneficial as Sainsburry's advancement in
analytics is effective in the country and can help the organization in growth
in the economy. It helps analysis the market to sainsburry and prevent
waste. Online features also help the company by providing the audience
about their preference choices from home and can help in benefit to the
people of the country to order or advance the services from their comfort
places and homes (Wellner, 2020).
Legal factors:- Legal factors affect as working in UK have different rules
and regulation and when sainsbury want to start the business in the
Kazakhstan need to beware of the legal policies and the working rules and
regulation of the country to be matched by the sainsburry to work in the
proper way and utilize the resources.
Environment factors:- Every country have different environment factors and
working in UK is totally different as working in Kazakhstan.
Environment Factors:- environment factors are the factor which a
company need to focus while working the environment and should always
follow the rules and regulation which totally depends on the environment
and need to follow them. It includes that every organization need to focus on
environment factors so that environment stays healthy and try to work in a
way which doesn't harm the environment, it includes pollutions, plastic bags
etc. sainsbury need to focus on providing the best qualities and try to use
more of paper bags so that the environment doesn't harm (Ballestar, 2018).

Market structure, geographic spread, customer segmentation and
positioning:-
Market structure:-
Market structure refer to the market situation and the working of the
organization in a country, The market choices in the Kazakhstan is different
from UK as it is more to the food industry and not in clothing much so the
sainsburry need to focus on providing according to the market structure, UK
market of sainsbury structure is on clothing and food both. sainsburry will
focus on providing the services which can give the strength in the market
position in Kazakhstan
Geographical spread of product:- Geographic spread refer to the
geographic condition of a country and while sainsburry working in
Kazakhstan will focus on first to capture the most prominent cities of
Kazakhstan. Sainsburry's have studies the market of Kazakhstan, and they
will serve more of the choices according to the taste of people their.
Kazakhstan people have food preferences and so sainsburry will focus on
providing more of the food item and limited other items and after sometime
they will change those limited product with more choices.
Customer segmentation:- There are 4 segments in customer:-
Demographic:- Demographic segment includes the age, gender, income,
location etc. of the consumer and on the basis of that the organization need
to work in their product.

Psycho-graphic:- In this it is segmented by the factor of personality and
characteristics of a person. Like personality, attitude, interests, lifestyle etc.
Behaviour :- this segment includes the purchasing and spending behaviour of
the customer with their status and brand interest.
Geographical:- In this the interest is depended on the geographic condition
including the city, county, climate and the most important the urban & rural
areas (Solberg, 2017).
Competitive positioning:- Sainsbury Will compete with its competitor by
providing the best of the qualities and in low cost in Kazakhstan to capture
the market, starting the market and providing the best of the product and
services so that the competitor stay at bay and it can help the sainsbury in
capturing the market. They need to provide product with the choices and
customer preferences so that they can work better and can stop the wastage
of items.
The top competitor of sainsbury in Kazakhstan is IKEA group.
SECTION 2
Domestic, regional and International success :-
sainsbury as working in the UK got a huge success and even in other
countries sainsbury capture market and worked very well. The reason for the
success in UK are the quality and the brand name which gave a positive
effect to the organization in its growth and strength in market. While working

for Kazakhstan the company focuses on more to the quality and providing
better qualities to the customer in Kazakhstan get stable.
Domestic Success:- Domestic success of sainsbury in UK totally because of
its brand name and the qualities they are providing in a low budget prices,
the main reason of the success is because of its manufactured product which
are consumer favourite and consumer in UK like to purchase them because
of the quality with low prices.
Regional:- Regional success of sainsbury is the variety of product and
services they are providing to the customer and the way they handle their
services and after services to their customer gives a positive result to their
company.
International success:- The success of sainsbury in international market is
because they provide services and after services which are accepted by the
customer, and they focus on more to after services which give strength to
them in the market and keep them separate from their competitor.
The customer oriented strategies of sainsburry helps them in getting the
business goals and working in Kazakhstan totally focused on quality and
services by the company to keep the competition away and capture the
market.
Competitive advantage:-
Porter five force:-
Porter five forces is a tool to understand the competitiveness of the
business and its environment and it also helps in strategies.

Competitive rivalry:- In this it helps in finding the rivalry in the market and it
shows in the competition and help in making the strategies in the market,
Working in UK sainsbury have competitor like Tesco and working Kazakhstan
there are competition of local and government supermarkets in retails.
Competitor rivalry is high in UK and Low in Kazakhstan.
Supplier power:- Supplier power reflect to the variety of product and the
unique product with unique prices to the customer from supplier plays an
important role in marketing. How easily supplier are available and their
expensiveness. The more the supplies the easier to get replaced, and
sainsburry will focus to provide the best deals in Kazakhstan to terminate the
competition (Wessel, 2017).
Buyers power:- Buyers power is dependent on the buyers as how many
buyers are their and what is the criteria of the buyers choices and habits
which can impact a suppliers' variety. If there are few customers then it is
obvious that the power is in the hand of the buyers and for that sainsburry
have already worked in customer segmentation which cover more to more
variety to every type of customer Buyers power is hight in Kazakhstan..
Threat of substitute :- Substitute threat refer to the product which can
replace r substitute the other product which consumer can use. Suggested
there is any product which can affect the business of sainsburry product then
it's a threat of substitution (Hitt, 2016).
Threat to new entry:- Threat of new competitor in the market which can
affect the business in a way for example if there is a new entry in the retail

market in Kazakhstan which is affecting the business of sainsbury so for that
sainsbury need to be aware while working in a country and new entry threat
as low in Kazakhstan.
Challenges in international market:-
Political instability:- Government in different nations with their different
priorities, philosophies in international trades and it can impact the business
for new entrants. Accepting restrictive approach in international trades can
not be beneficial every time in the business. Long term global politics are
unstable and unpredictable. Their economic policies have direct impact on
international trades.
Culture:- Culture plays very important role in the international market and it
also affect the organization because for every organization they need to
understand the working culture of a country to work in it include the
language, ethics, ways of doing business etc. Culture can directly impact on
any organization because they focus on the basic values of a country and
evry organization need to follow them.
Laws and regulation:- Working in international trade required international
regulation which need to be followed by the organization and every country
have their different rules and regulation. Working in UK is totally different
according to Kazakhstan and sainsburry need to focused on the working in
regulation to get the best result in the country and can get better result and
obtain the goals (Ponsford, 2017).

SECTION 3
Strategies for Global Marketing
This type of Marketing also referred to as International Marketing is
done by adapting the situations of other countries to adjust one's company's
marketing strategies (Bayraktar and et.al., 2017). This deals not only with
selling and producing goods globally but also performs all the processes in
global market. It is done to increase the overall effectiveness of service or
product, to utilize the advantage of competition and to enhance the brand's
awareness among consumers.
Sainsbury holds the second position in the supermarket chain of UK. It
mainly deals with the food products, clothing and fuel services. It plans of
expanding its services in Kazakhstan for targeting more regions and
increased number of consumers thereby increasing the sales and profit
margin.
To achieve this goal and boost up its products and services in the new
country, it must plan and implement certain strategies.
Methods for Entry in new market
There are various strategies to enter market of a new country
(VAHDATI, NEJAD and SHAHSIAH, 2018). It is not at all same in all the
countries instead it depends on the environment of the country where the
company is to be expanded. The numerous methods are as follows:

Exporting Directly
In this strategy, the company sells the product directly without any
intermediaries which works best in small volumes. The advantages are that it
provides control on foreign market selection and trademark protection. The
disadvantages include higher requirements of resources, capital and risks.
Exporting Indirectly
These are concerned with appointing intermediaries which gives no
control to the exporter in foreign market and product (Dombrowski, Krenkel
and Wullbrandt, 2018). This is good as it gives access to market fast. It can
be harmful as gives no control on product thereby decreasing number of
sales.
Licensing
In this, the licensor gives certain rights to the licensee in the country
where the product is to be hosted. The rights can be skills of management,
technology etc. It helps in expanding quickly without higher risks and capital
(O’Hare, Stewart and McColl, 2018). It gives lower incomes as compared to
other entry modes.
Franchising
Under this, the franchisees gives the fees to franchiser to use its
trademark for selling services and products and to sometimes ise the format

and system of business. It provides low risk by political factors also at low
cost. But, it makes difficult to have control on franchisees.
Joint Venture
This diverges the goals of competition and converges the goals of
partner's strategies. It does not get the support of parent firm but often
results in clashes and conflicts over investments.
So, Sainsbury must use the method of Indirect Exporting with the help of
distributor of Kazakhstan because the country has more rules and
regulations. This will help the Sainsbury to be make strategies legally which
will be accepted by the host country. It can also use exporting directly to
penetrate easily in the market and increase the overall sales which will give
more control.
Porter's Generic Strategies for Marketing
These are used to develop marketing strategies which helps a
company to expand its products and services in a new market and gaining
competitive advantage The strategies it provides are as follows:

The above figure shows the strategies through Porter's Generic Model.
Cost Leadership
It can be done either by reducing prices to increase sales and profit
margin or by charging fewer prices to increase share of market (Sullivan, El
Asmar and Sullivan, 2019). These strategies do not make the company
Figure 1: Porter's Generic Model
Source: Porter's Model of Generic Strategies for Competitive Advantage,2018

differentiated among the competitors. So, the company must be improving
continuously to keep a watch on the prices.
Differentiation
This is achieved by making the products unique by doing a thorough
research of the market products and by implementing innovation. It will
result in maximum sales and overall profit.
Focus Strategy
This focuses on the market and the need of the customers in that
market. Their main aim is to attract more numbers of customers by making
the services unique and it can be less attractive to the existing players.
When the focus strategy is applied, the main thing to keep in mind is
whether to focus on Cost Reduction or on the Differentiation.
So, after going through all the strategies, Sainsbury must use differentiation
as it is entering a new market so its main aim is to increase the profit margin
and it cannot reduce the prices. So, it must focus on the food preferences of
Kazakhstan such as taboos, horse-meat, mutton, cheese, butter, boiled lamb,
shashkyl, Kurt, pasta, rice, noodle dishes etc. which are consumed by the
majority of the people i.e., Muslims. It should not reduce the prices rather
than it must make the products unique and differentiable and that too
targeted in the areas where the demand of non-vegetarian food products is
higher.

Strategies
To expand the business in the areas of Kazakhstan, Sainsbury
implements the following strategies:
 It should produce food preferred by Muslims because majority of the
population prefers non-vegetarian food (Min, Kim and Zhan, 2017). It should
start sealing in boiled mutton, mixed tea and horse milk, horse-meat, horse
sausage, etc.
 It should start making Pork as Kazakh loves to eat it. Along with this, mutton,
sheep products etc.
 They must offer Shashlyk which are kebabs along with dumplings, noodle
soup. The company must also produce Russian food like boiled chicken and
Russian Salisbury to attract more customers.
 They do not make more spicy food as the Kazakh love to eat less spicy food.
The calorie content in the dishes must be high as the people there are not
health conscious.
 The delicacies also include Horse Penis and sheep head. They use this food
to offer guests also. The ears are consumed by most of the children there.

 It should deliver the food at the doorsteps of customers as they love eating
food at their homes rather than in restaurants.
 In clothing, the company should make clothes which suits the climate of the
region and the nomadic lifestyle of people.
 They prefer ornaments generally made from animal horns, beaks of birds,
feet and hooves. The company must also provide western dresses.
To increase the sales, the Sainsbury must adapt the changes of the people
along with their needs which will expand the business in the new market of
Kazakhstan.
Recommendations for Sainsbury
There are a few recommendations for the company to follow to achieve a
rapid growth during and after expansion in Kazakhstan which are as follows:
 The company must build strong relations with the local partners in
Kazakhstan to develop more opportunities and to get help from unrelated
sectors (Dombrowski, Krenkel and Wullbrandt, 2018).
 The company must plan everything for a long duration of time because it
invests a lot of time, money and efforts in order to expand itself in
completely new market.

 It must find some representatives who are from Kazakhstan to promote
the products and services because the market is completely new to the
people in Sainsbury so it becomes difficult to promote the products by its
employees or marketers.
 It can also build relations or partnership with some local firms of
Kazakhstan to gain competitive advantage by knowing all the policies of
the firm.
 The company must do a complete market research of the host country to
gain maximum opportunities and promote products accordingly.
 The company can advise its buyers to obtain financing so that they can
invest large amount to Sainsbury for buying the products.
 The sales and marketing practices must be converted into Russian
language so that it is easily understandable by the people living there and
are attracted by the products and services of the company.
Implementation of the recommendations
The above mentioned recommendations can be implemented in the
following ways:
 The company should not make any strategy against the retailers with
whom it plans to build relations for partnerships instead along with
increasing its sales it must support the partner which will builds trust for
Sainsbury.

 The company can do the market research from last 5 years so that it can
get a clear idea of how the market grows in Kazakhstan which will help it
to make strategies which is for long term.
 It must appoint some local distributors which will help the company to
promote the products easily (Ballestar, 2018). The local people will easily
communicate with the distributor and can be easily aware of all the
products and services.
 The relations with firms can be built by telling it about the success stories
of the company in other countries and the firm can have a great profit if it
does partnership with Sainsbury. The firm must trust the company which
will be built by loyalty.
 Market research can be done through online modes. The company can
know about the changing needs of the customers in Kazakhstan by
analysing the reviews and feedbacks on the products of the existing firms
and can produce products accordingly.
 Sainsbury can describe the benefits of funding to its buyers so that they
can do financing for getting large capital and invest it to buy products
from the company which will give a large profit margin to it.
 The company can appoint a local marketer to carry all the promotional
activities and advertising in the local language because it is necessary for
the people to have complete knowledge about each and everything about
the company to start buying the products and services which can be done
by the person who can communicate in the local language of Kazakhstan.

CONCLUSION
This report explains the ways in which a company can work in
international market and also provide the guidance that the working in new
country can provide few negative effect and ways by which the company can
make the environment comfortable for working. Target market and its
factors which effect the culture, economic, politics factors which can effect
the Sainsburry's growth. It also shows the product effect in the business and
the choices made by the customers with preferences. Marketing strategies
which need to be considered while working in international with all the rules
and regulation. Sustainable advancement for future which shows the stability
in future and the actions which were taken to prove and international
marketing importance to grow in the market and increase the goodwill in the
market globally. International market helps in obtaining the goals
internationally and make a good capture in market.

REFERENCES
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performance: an empirical study in a developing economy
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Solberg, C.A., 2017. International Marketing: Strategy development and
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Porter's Model of Generic Strategies for Competitive Advantage,2018.
[Online]. Available through:
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