International Marketing

This document discusses the scope of international marketing and strategies for expansion. It includes a situational analysis using Porter's Five Forces and SWOT analysis, as well as objectives and strategies such as franchising. The document is relevant for students studying international marketing or related courses.

Running head: INTERNATIONAL MARKETING
International Marketing
Name of the Student
Name of the University
Author Notes

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Table of Contents
Introduction......................................................................................................................................2
Situational analysis..........................................................................................................................3
Porter’s five forces analysis.........................................................................................................3
SWOT analysis............................................................................................................................5
McKinsey’s 7 analysis...................................................................................................................5
Objectives........................................................................................................................................8
Strategies........................................................................................................................................10
Franchising................................................................................................................................10
Licensing....................................................................................................................................11
Market segmentation and Targeting..........................................................................................12
Marketing Mix...............................................................................................................................12
Action............................................................................................................................................13
Control...........................................................................................................................................13
Conclusion.....................................................................................................................................14
REFERENCES..............................................................................................................................15
BIBLIOGRAPHY..........................................................................................................................16

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Introduction
Internationalisation of a company provides the company with a scope for growth. A
company might be performing well within their domestic boundary, however, in order to meet
the demands and needs of the stakeholders, the company might want to expand into foreign
territories. Expansion helps a company in increasing their customer base and overall market
share (Rienda, Claver and Quer 2013). Internationalisation is can be considered as a gruesome
task, although it can be termed as the gateway of success of companies. Companies such as KFC,
McDonald’s and Taco Bell started their operation within their geographic territories (Badal
2017). With internationalisation, the achieved the status of global leaders in their respective
industry. In order to expand, a company must assess their internal and external competencies.
That would help them assess whether they should take the initiative of expansion or not. The aim
of the paper is to critically evaluate the scope of GRENADE UK into the market of UAE. The
paper will provide justification for the move of the country UAE, provide the SMART objectives
and establish the changes in the products and the marketing strategy that will aid the company’s
aim of expansion.

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Situational analysis
The current situation in the market can be assessed by analysing Porter’s Five Forces model,
Mckinsey’s 7s framework and by carrying out a SWOT analysis of the company. The same has
been carried out in the following section;
Porter’s five forces analysis
Internal Competition: HIGH
 There exists high level of competition that the industry is operating in.
 The competitors of the company are adept in using their marketing competencies.
 High number of variants available and offered by the competitors
Threat of new Entrant: MODERATE
 The industry is subject to high degree of regulations.
 Market access is supposedly easy.
 Having the capital backing can help enter into the market.
Threat of Substitutes LOW
 Absence of companies providing similar products in the market.
 The quality of the products that are offered by the company cannot be replicated.
 The materials that are used in production of the products differentiate the products from
the rest.
Supplier Power HIGH
 Not established in the UAE.

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 The suppliers have high bargaining power as the company are not established in the
country.
 The supply of the material required for production of the products of the company is
dependent on the suppliers.
 Highly competitive prices of the raw materials offered by the suppliers.
Buyer Power HIGH
 The products and company is new in the country as a result of which they are subject to
the attitudes and acceptance of the consumers.
 Bulk purchasing capability.
 Lack of brand loyalty among the people of the new host country.

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SWOT analysis
Strength:
 The company effectively promotes
their products.
 The product packaging of the
products makes it attractive.
 The initiative of the company is
perfectly aligned with the changing
needs of the society.
 The company abides by the modern
slavery act that makes helps it
gaining acceptances for the
government bodies.
 The products that are offered by the
company helps the community
maintain a healthy lifestyle.
 The initiative of the company
support the sustainability of athletes
and provides support.
Weakness:
 Lack of partnership with
companies.
 Comparatively new company and
thus lack of support from the
customers
 The customer base of the company
is not loyal since the company is
comparatively new.
 The products offered by the
company is limited and their
products only one segment.
Opportunities:
 Acquiring market share in a new
country.
 With expansion, the company can
target a new market.
 Increasing market share of the
company with the help of the
expansion.
 To spread initiatives of a healthy
lifestyle.
 Blooming economy of the target
country
Threats:
 Existence of competitors such as
Amway and lifestyle nutrition
 Government regulations to new
companies.
 Existence of religious regulations.
 Failure of acceptance resulting in
loss of the company.
McKinsey’s 7 analysis
The McKinsey 7S model is used by in order to evaluate the marketing competency of a
company. The analysis is carried out and looked at form different angles in order to come at a

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position through which the marketing capabilities of the company can be deemed to be effective.
The model is an assimilation of factors such as the strategies applied by the company, the
systems that re involved in the process of marketing, the structure of executing the strategy, the
style of achieving the strategies, the staff involved in the operation of the marketing plan and the
skills that are needed to be carried out in order to ensure the viability of the marketing plan and
finally the shared value that is associated with the successful implementation of the marketing
activities that will be conducted by GRENADE UK. The 7 factors that contribute to the viability
of the operations of the company in terms of carrying out the marketing plan successfully in the
market of UAE is as follows;
Structure
The proper implementation of the activities of the marketing plan of the company can be carried
out by effectively adjudging the competencies of the structural divisions. The marketing
department of the company is segregated into divisions who are delegated with different
responsibilities. The segregations are made on the basis of the creative division, the sales
promotional division, the PR, digital marketing platform and the advertising division who would
be responsible for the successful implementation of the strategies that would be carried out by
the company.
Systems
The marketing activities of the company and the systems within the marketing operations of the
company would have to be directly aligned with the aim of the company in the market that they
exist. The daily activities of the company involves market research and internal operations
between the companies that are aimed at achieving the functional goals of the company.

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Strategies
The strategies that can be employed by the company in their marketing operation involve
operations such as franchising, licencing and market segmentation. The product that are offered
by the company are perfectly placed in the market according to the needs of people of the
population who are aligned to the supplying utility to the people of the host country
Style
The style that is used by the company in carrying out their operations are considered. The
operations of the company are aimed at the achievement of awareness among the people of the
country in terms of generating affiliation to activities that are filled with health consciousness.
Skills
The skills that are required for the operations of the company in the market in term of gaining
market share in the country that they are operating is possible through inter-personal skills. For
ensuring the smooth operations of the same the company should outsource the services of local
advertisers who can communicate the ideas of the company effectively to the locals.
Shared Value
The ultimate strategic aim of the company is to increase their offerings to the population of UAE
and ultimately gain market share in the country. However, it can be said that the operation of
GRENADE in UAE is a part of the company’s sustainability initiative. The aim of the company
is to provide the people of the community with products through which they will be able to lead
healthier and fitter lives.

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Objectives
The company intends to expand to UAE. The initiative is backed up by favourable
external environmental of the target country. The company aims to satisfy their stakeholders by
expanding to the United Arab Emirates as it would help them in generating increased amount of
revenue and gain considerable amount of market share in the company. Following are the
objectives that has been established by the company;
 To increase awareness about the company. The ultimate aim of the company is to
company is to increase the awareness about the company. It has been proven that once a
company moves to new territories, the awareness about the brand is said to increase.
Positioning is the key to justification of the same (Sirianni et al. 2013). Positioning is a
process of creating an image in the minds of the consumers (Sirianni et al. 2013). It can
be termed as the rationale behind the justification of the expansion initiative of the
company. Positioning helps in increasing the goodwill that can bolster the long term
sustainability of the company in the target market and as a whole.
 To contribute to the sustainability of the people of the communities in terms of
fitness of the people. The products that are supplied by the company provide nutritional
benefits to the community (Grenade.com 2019). Furthermore, there has been an increase
in the amount of people who are shifting to healthier lifestyles. The products that are
being offered by the company provide nutritional value to the consumers. It helps in
mitigating the adverse health effects that are caused by unhealthy snacks and junk food
that is appreciated by most of the population. However, it can be said the products that
are supplied by the company are on the expensive side. It is assumed that it will not be an

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issue since the consumers in the target have high power of purchasing. Thus, the aim will
of the company to contribute to the sustainability of the people is assumed to become a
reality.
 To gain more than 25% market share in the target market. The target market of the
country has existent companies who are supplying similar products to the market.
However, it can be said that the company the products that are being offered by the
company offer a unique value to the customers. The competitors already have established
their position in the market and have a loyal base of customers. The aim of the company
is to sustain the role themselves in the market which would be backed up by the products
of the company that have a unique USP.
 To increase the visibility of the brand by carrying out promotional activities in the
country. The elements of the promotional mix have helped various companies in term of
increasing their brand value in the target market. By incorporating activities such as
personal selling, advertising, sales promotion, direct marketing and publicity, the
company will be able to promote its initiatives in a more efficient way.
 To generate 50% of the sales that the company is able to generate in the United
Kingdom. Increasing the turnover is the ultimate goal of the company. Generating
turnover, helps in generation of revenue, and the later helps in the justifying and meeting
the needs of the stakeholders of the company. Satisfaction of the needs of the
stakeholders of the company results in corporate governance. Thus, the company intends
to increase the sales of the company.
The objectives that have been laid down by the company should not be vague. They
should be actionable, realistic and measurable. This can be adjudged using SMART, which is a

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method of justifying the same. Following is the justification of the objectives that have been set
by the company.
Specific Yes The objectives of the company are aimed at specific goals and
targets.
Measurable Yes The success of the objectives are measurable as the same would be
reflected through figure.
Achievable Yes The objectives that has been established by the company are
achievable as the same were achieved by other companies in the
past.
Realistic Yes They objectives of the company are realistic and achievable.
Time-bound No At present, the time for the expansion and achievement of the same
has not been fixed.
Strategies
Following are the strategies that can be used by the company while operating in UAE;
Franchising
Franchising is an activity through which a company grant other bodies to operate on
behalf of the former (Nijmeijer, Fabbricotti and Huijsman 2014). The role of the franchisees thus
formed is to operate as single units through which they generate sales and operate in a said
region (Lee et al. 2015). It is a technique through which GREANDE can offer, their products for
sale by utilising the helps of a thirds party business partner. It helps the company in achievement
or realisation of their long term goals generation of turnover in the company. In the aim of
expanding to the market of the United Arab Emirates, the company should aim to establish at
least four franchises in each of the seven emirates that are present in the country. Thus at the
beginning of the aim of expansion of the company, they should ensure that they are able to
establish at least twenty eight franchises across the country. Even though this number is
considered small in terms of the standards of the competition established in the markets by the

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competitors. Franchising will provide opportunities of employment to the people of the emirates.
Even through most of the people in the country are employed, the opportunity to get associated
with a company from the United Kingdom is supposedly deemed to be lucrative for the
franchisees.
Licensing
While franchising is an effective way of propelling the brand image on its own,
GRENADE UK also plan to incorporate licencing agreements into their international marketing
strategy (KreuTzer 2014). If a company is licencing a product, they are allowing a third party
operator to use their intellectual property. The intellectual properties can be logos, designs of the
product, the name of the product, and others features. A company licences their product or
services to a third party operator by charging a nominal fee known as royalty (Tschmuck 2013).
Both the parties who are associated in the licencing agreement benefit from the same. In the
current scenario, GRENADE can benefit from a licencing agreement as it would help the
company in achieving their ultimate aim of gaining more visibility in the target nation that is in
the United Arab Emirates. The company also spread awareness regarding how to stay fit and lead
a healthy lifestyle, thus, they could licence their creative T-shirts with motivational quotes in the
franchise deal. Accordingly, licencing is said to help the company in achievement and realisation
of their ultimate sustainable initiatives. The following benefits are associated with a strong
licencing agreement;
i. It helps in strengthening the brand image of both the parties that are associated in the
agreement. GRENADE can gain exposure to the market that they are new to.

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ii. It helps in developing a customer base. The prospective consumers who have come
across the brand will be educated about the initiatives of the company and thus the
company will be successful in gaining a new consumer base.
iii. Licencing will assist GRENADE in assessing the market. It would boost their market
research competencies and the former can identify techniques to get associated with other
companies.
Market segmentation and Targeting
It has been proven over the years that companies who have been able to segment their
market effectively have been successful in gaining a competitive advantage and have been able
to sustain the same (Kotler et al. 2015). UAE is a country that is constituted of people of diverse
ethnical backgrounds, varied lifestyle and demographics. GREANDE aims to capitalise on the
behavioural segmentation approach. It has been seen that there has been an increase in the
number of people who are opting for healthier lifestyles and the number of fitness enthusiasts
have risen in the country over the past decade. Thus, it has been realised that the company can be
profitable and be successful in their initiative if they target and segment the people who fall in
the category. Hence, the segmentation approach of the company has been justified.
Marketing Mix
Product: The products that are offered to the UAE market are in the form of flavoured chocolate
and peanut flavoured bars.
Price: The products supplied by the company in market will be aggressively priced. It is
assumed to be less than the average price of protein bars in the country.

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Place: At the initial stages of operation of the company in the country, the operations of the
company will be placed in the capital city of UAE, Abu Dhabi.
Promotion: Advertising on pint media such as magazines, newspapers, on TV and on Social
media along with sales promotional activities such as discounts on bulk purchase.
Action
As the market of the United Arab Emirates is a new market that the company is venturing
into, there are considerable amount of challenges that the company can face. There can be
competition that the company can be facing from the local and international competitors. The
company would have to be aligned to the local rules and regulations that are present in the
country and abide by the important religious factors. Since, the company aims, to use marketing
strategies, of segmentation, franchising and licensing that would have to modify the same
according to the needs of the people of the country. The products of that are offered by the
company will not have to be modified since they are perfectly suitable for the people of the
country. The affinity for similar products has been witnessed in the country thus the products are
assumed to be appreciated by the people of the country. However, in order to gain competitive
advantage in the market, the company has to establish local supply partners in the country. This
would help the company in cutting down their cost that they would otherwise have to invest in
freight and export duties. Franchising and licensing are supposed to help the company in gaining
favourable relations with the supply partners of the country.
Control
Before starting operations in the country, the company should ensure, that the carry out
extensive market research. Market research helps companies in gaining in depth information

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about the markets that they are going to operate in (Brace 2018). It also enables companies to
gain extensive information about the consumers of the country. It would be advantageous for the
company as it would help them company in working productively. It would ensure that the
company are reducing wastage and are increasing their productivity. Furthermore, it is suggested
that the company should incorporate their sustainability initiatives into their marketing strategies.
Highlighting the sustainability initiatives of a company helps in being on the receiving end of
acceptance from the part of the consumer community. CSR activities are appreciated by the
society and helps companies in gaining support from the government (Rangan, Chase and Karim
2015). Thus, the sustainable initiatives of the company would not only boost their image in the
market, but it also will help the consumer community in gaining better lifestyles.
Conclusion
Internationalisation helps companies in the plan of expansion to foreign territories. It is
the aim of the UK based company called GRENADE to expand to foreign territories. In the
initiative of expansion, they have put forward a plan of expansion the United Arab Emirates. The
internal analysis of the company show that they are perfectly aligned with the needs of the
present generation of consumers. However, would supposedly encounter a great deal of
competition as they enter the market of the UAE. The external environment is favourable for the
operations of the company. The company must carry out extensive research regarding the tastes
and preferences of the customers of the community in order to minimise wastage, use resources
effectively and save valuable time. On a concluding note, it can be said that, the favourable
external environment of the country, backed up by the strategy of smart objectives, market

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segmentation, franchising and licencing make the aim of the expansion into the United Arab
Emirates a success story.
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