Contents INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 P1. Analyse the scope and key concepts of international marketing...........................................1 P2. Explain the rationale for it to want to market internationally and defined the diverse routes to market......................................................................................................................................2 TASK 2............................................................................................................................................3 P3. Evaluate the key criteria and selection process to use when considering which international market to enter.............................................................................................................................3 P4. Different market entry strategies, including the advantages and disadvantages of each......4 TASK 3............................................................................................................................................5 P5. Present an overview of the key arguments in the global versus local debate........................5 P6. Investigate how the product, price, place and promotional distribution approach differs in a variety of international contexts..................................................................................................6 TASK 4............................................................................................................................................7 P7. Explain and analyse the several international marketing approaches...................................7 P8. Compare home and international orientation and ways to assess competitors, outlying the implications of each approach.....................................................................................................8 CONCLUSION..............................................................................................................................10 REFERENCES..............................................................................................................................11
INTRODUCTION Marketing is an activity of buying, purchasing, promoting and delivering the products and services that are produced by an establishment by considering their target audiences needs and demands with the motive of satisfying them. International marketing is defined as the execution of business actions that are designed by the firm to plan, price, promote and lead the flow of a venture’s commodities and facilities to its consumers in more than one nation for a profit (Cateora, and et. al., 2020).This document is supported to CafePod Coffee Company which operates its business in UK and is headquartered in London. The organisation was incorporated by Peter Grainger and deals in soft drinks industry. The written report will discuss information about international marketing concepts and scope, key criteria and selection process to enter in international market and several marketing entry strategies. Further, will explain about marketing approaches and comparison between home and international orientation. TASK 1 P1. Analyse the scope and key concepts of international marketing International marketing can be defined as planning, analysing, executing and publishing the products and services of a company at global level and offer fulfilment to the needs and desires of customers who living in different parts cross wise the globe. If the organisation does this type of marketing then it is known as international marketing. In international market, establishment has large scope and without global marketing no enterprise can sustain and survive till long term. Now these days marketing strategies are not restricted so by using several strategies of marketing, business firm can enter their business in international market. There is large scope as increased buying behaviour has led to high taste of products among customers. With the beginning of the amount of rivalry that can be posed regarding them (Kotler and et. al., 2018). There is large scope when a venture operates internationally such as: If the firm operate global level and provide goods and services according target audiences needs, then it can make development and progress in business by improving productivity, profitability and customer base. At the time of global expansion, the company ware with diverse trends, needs, and clture and market demands. Then, by manufacturing products as per trends and consumers 1
requirements, it can retain them till long term and make development in economic system of firm. The concept of international marketing is identifying fulfilling requirements and necessities of global customers better than competition both domestic and international. It is the activity of coordinating marketing actions in the restraints of global environment. When an organisation operates its business internationally then the main objective of the company is to offer fulfilment to their demands by offering them products and services as per them (Morgan, Feng and Whitler, 2018). CofePod is a small soft drinks venture which operates its business in UK. But now the administration of the firm is determined to expand it global level. The management decided to expand it in Japan and China because there are the nations where people highly prefer liquid and heath drinks in comparison to others. The concepts of expanding business this place is to make increment in growth of company in form of profit margins, sales and productivity. P2. Explain the rationale for it to want to market internationally and defined the diverse routes to market In current era, companies are identifying growth opportunities to expand their business in internationallevelaswiththis;theyearnnumberofbenefitssuchasprofitincrement, development in customer base and many more. In CafePod, the administration wants to make expansion in its business at international level and the rationale behind it is defined as below: Improving profitability- It is one of the main reason that’s why respective firm identifying international development option. it is as when the administration will operate its business globally, they can make development in number of clients as well sales. it will generate positive influence over profitability margins of establishment in term of maximisation. Hire new or fresh talent- It is other reason of operating business internationally. By operating business internationally, the company will recruit new talent and skilled employees who help in running it in more effective manner. In reference to CafePod, they are want to operate globally because they want to recruit talented workers who assist in manufacturing drink products as per taste & preferences of customers (Hult and et. al., 2018). This will help in satisfying consumer’s needs and making development in business. Various routes to market the company Direct route- In CafePod, the administration of the firm can select this form as it make instant contacts with the people of globalmarket with the purpose of sales of products and 2
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services. They can utilise diverse channels such as websites deliveries, distributing the mail order catalogues to make direct contact with their target audiences. Indirect route- It is another way to market and this path consider the channels which assist firm to make contact with its consumers (Amankwah-Amoah, Boso and Debrah, 2018). These channelsplayroleasthirdpartyandtheadministrationofCafePodcanhandoverthe accountabilitiestoimpactthebehaviourofconsumers.Thesechannelsaresalesagents, distributors and franchisees etc. and within it, the respective organisation can utilise franchisees for their international expansion. Challenges and Opportunities of International marketing Opportunities ď‚·By adopting international marketing strategy, the respective firm able to expand its business by attracting number of target audiences, shareholders and investors at diverse locations. ď‚·It also offers option to make increment in the market share or size, maximising profits and enhancing productivity ratio. Challenges ď‚·Different nations have their own policies, laws and legislations so due to which CafePod can suffer several problems cause of political instability and economic system etc. ď‚·Another challenge is modification in the laws and legislations of diverse countries that also influence the business of organization. TASK 2 P3. Evaluate the key criteria and selection process to use when considering which international market to enter The key criteria and selection process towards international market, the organisation can include some points and they are explained as below: Cost of labour- In China, the cost of labour is low in comparison to UK so the management of CafePod can consider this nation for business expansion and enter in global market (Christofi and et. al., 2018). This will be effective to the organisation to save its labour cost. Growth potential- It is another criterion to choose a market where a enterprise can operate its business efficiently. If CafePod run its business in global market, then it can find out the 3
developmentpotentialinthemarketincontextoftechnologies,demandsandneedsof consumers, rules and laws, talented employees and others. Market selection is also play an essential to enter the business of an organisation at global extent (Paul and Mas, 2019). The selection activities of marketing are as following in reference to CafePod: International marketing objectives- It is the first phase of this activity that indicates that the administration of the firm designed objective before enter in the global marketing such as development of the business, earning profit and fulfilling customer’s demands etc. International marketing objectives- It is the first step of this process which refers that the management of the company deigned objective before enter in the international marketing like growth of the business, earning profit and satisfying customers needs etc. Short listing market- After determining the parameters of chooses, the administration of the firm can shortlist the market on the basis of chosen variables. In this stage, the management can select a market which can be beneficial to the organisation and where the firm can offer different rivalry benefits. Test marketing- After choosing the market, the manager of the organisation test the market by launching its commodities and services at marketplace. It help the producers in evaluating all over feedback o consumers from a specific market, after tested progress, the manufacturing can be undertaken on a mass scale. Commercial production- It is the last phase in which once the good is tested in the marketplace, the company go ahead with mass production, minor improvement.(Paul and Rosado-Serrano,2019)TheadministrationofCafePodcanmanufacturelargenumberof commodities and services according to customers’ needs and provide them to target audiences. P4. Different market entry strategies, including the advantages and disadvantages of each There is different method that a company can adopt in reference to enter in to a new market. In context of CafePod, the explanation of different market entry routes is as below: Franchising- It is a route and strategy through which a firm can get enter in to market with the motive of operating its business and fulfilling customer’s needs. In CafePod, with the assistance of it, the owner of the company obtains distributors by associated dealers. It can be an act of agreement where a company offers its right to other venture to use its trademark to run the business. 4
Advantages- it is beneficial for CafePod as the firm can use this strategy in armlet to enter its business and provide its drink product internationally. Disadvantages- The main demerit of this strategy is that there are generally limitations on where the firm can operate business, purchase raw material and sell final products. Joint Venture- It is another market entry route and it is form of partnership but there is only a company or individual to make partnership in order to operate business (Ju, Jin, and Zhou, 2018). It can be an agreement of two organisations which they combine their marketing plan of actions with the aim of gaining profits and increasing market share. The administration of CafePod can utilise it to market its food commodities and services, maximising profit margins and customer base. Advantages- It is essential for the firm as it offer enterprises with the potentiality to profit new capability and proficiency. Disadvantages- The drawback of it is that it consume more time and take more efforts or effectiveness to improve the right relation with other business which can be demanding. Market evaluation criteria An enterprise can measure the market for the business by utilising several criteria, some of them are explained as below: Market size- It is the major tool and method to evaluate a particular market. The administration of the company can determine that how many target audiences are actively purchasing the commodities and services of the corporation, in which industry the firm running. Speed to market- It is another form to measure market and can be utilised by the management of the company (Watson IV and et. al., 2018). Within it, the business can determine that how fast the market helps in selling the commodities and service of the corporation. TASK 3 P5. Present an overview of the key arguments in the global versus local debate It is basically included that global marketing is efficient for companies as it assist in offering development opportunities to increase the sales, profitability and revenue of the firm by providing its services to its customers by producing products and facilities according to their necessities and requirements. So that they can show their interest and retain with the company till long term. Efficient quality of infrastructural and construct services assist in offering benefits to 5
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the entity in forms of maximising market share and profitability. In order to this, local marketing lagsbehindglobalmarketingbecausethistendstodeficiencytheassets,rawmaterials, infrastructure and needed technology to conduct production in a way that can provide rivalry benefits to the enterprise towards international competitors (Radulovich, Javalgi and Scherer, 2018). Local marketing is not much preferable that means to attract number of consumers which is not reach in the enterprise in domestic nation. Some of the people consider that local marketing do not offer benefits in rivalry marketplace as the previous is less decomposable and the individuals are rather aware with market scenario of domestic country. The financial assets required for setting up the position of organisation in home nation is much easier than while going international. Thus, potentiality of sustainability is high when the firm is engaged in local marketing. in context of this, global marketing is determined to be efficient as target audiences contact in international market is complex to maintained. Because this owes to the presence of number of rivals who are always waiting for a potentiality to request the target customer of an established establishment and reduce their market development and share as well. P6. Investigate how the product, price, place and promotional distribution approach differs in a variety of international contexts Marketing mix is an activity of putting a right product at right place by using effective prising strategies and using effective promotion tools to promoting them so that people aware about them. 4P’s of marketing include product, price, place and promotion that are greatly influenced by international marketing in diverse forms such as high rivalry, change in consumer taste & preferences and many more (Kaleka and Morgan, 2019). In context of this, while operating business in China and Japan or other nations, the marketing efforts such as strategies, plans, products, price, place and promotions etc. will be differ in context of home nation. 4P's of MarketingChina & International market London ProductThe goods and commodities of CafePod can be accepted as pertargetaudiences demographics,packaging, necessities,taste& Thebusinessfirmprovide pure,healthyandorganic drinkproductstoservethe requirements and demands of 6
preferences of the new market place. targeted customers. PriceCafePod can utilise different pricing plan of action in its businessatthetimeof operatingitsbusiness internationallysuchas penetration,competitiveand skimmining pricing strategies. Thepricingstrategythatis used by the firm was high as the company had emphasized up its allegiant customer base overyears(Surdu,Mellahi and Glaister, 2018). PlaceTheadministrationofthis company can utilise different publishingtoolsand techniquestopromoteits commoditiessuchassocial media. web advertisement and marketingcampaignsetcto getattentionofnumberof consumerssothattheycan purchase commodities. In current era, the rwspective firmutilisedseveral promotionalandmarketing channels such as TV, Internet, social media and many more to offer data about the creation in term of its commodities and facilities. PromotionIninternationalmarket,the organisation can utilise several option to allocate goods and services such as wholesalers, retailers, online way and many more. In existing time, the enterprise providescommoditiesand servicesinitsventureand existing location (Gao and et. al., 2018). TASK 4 P7. Explain and analyse the several international marketing approaches Thereareseveralmarketingmethodsandapproachedthatcanbeacceptbythe administration of CafePod at the time of global marketing. Some of them are explained as under: 7
Multinational- These are those ventures which have their outlets and stores or provide services in several countries whereas each location operates and functions in its way or form. These types of companies have their headquarters and factories in different locations but centralise head office in that nation where they coordinate international management (Hollensen, 2019). For example, KFC, Tesco,McDonald’s and many more are these kind of companies. Global- It indicates to those organisations that spread their business cross wise different countries but they pursue a consistent company culture with regular set of process that assist in facilitating an effective and efficient single global entity. These are those establishments that run their business in at least on nation outside of its nation of resource. For instant, Apple, Starbucks and many more organisations which run their business at international level. Transnational- These are that type of business firm which are tough in nature and run substantial objects while conducting business in more than one nation. they do not specifically provide consideration to any particular country as their national place. For example, Nestle is the best suitable example of this kind of organisation. From the above described content, it can be determined that international methods and approaches are several and can be adopted by the company to make business expansion of the firm at international extent. P8. Compare home and international orientation and ways to assess competitors, outlying the implications of each approach Home orientation is known as an effective approach by which organisations can make appropriate notice in order to communicate each situation of market with workers in working environment. With the assistance of this orientation scenario CafePod company can offer effective products and services productively in domestic nations and other countries. There are some insinuations which are followed by respective company in order to evaluate diverse manners for dealing with different rivals (Wu and Zhou, 2018). There are some forms, these are listed below: Implication:It mentions the immense relation among national and international nations for CafePod. Ways to assess competitors:As per this method rivals do not have lots of authority so that there is a few possibility of harm to the reputation of a company. Thus, it is crucial and essential for business organisation by offering them low competitive treat at market place. There is 8
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another orientation is global direction which is majorly utilised to define exist similarities within the market. Together with it also looked at so many diversities cross wise the world. There are lots of similarities and differences which can be understood by specific plan of actions in reference with global markets and its scenario as well. Implication:This kind of orientation always provides as the rivalry benefits all over the rivals for CafePod along with assure that they stay for long time duration at market place. Ways to assess competitors:By having huge rivals respective company can make unique tools and plan of actions in order to minimise competition or rivalry and capable to earn effective goodwill in market by having effective product positions internationally (Morrison, 2018). With the assistance of this form, they can minimise overall threat from the company and earn effective reputation in better manner. From the preceding conception it has been evaluated that marketing mix is highly complex concept from the national and international markets. All these kinds or types are considered by CafePod in reference to make business expansion in business in China. With the assistance of this they can get better options to earn more and several growth options at market place. Thus, it has been suggested to respective firm they should bring more and more creative tools and methods in reference to impact other individual internationally. To have unique tools and plan of actions they can make expansion in business in China at wide extent so that they can get development and progress as well as capable to make or frame unique plan and strategies accordingly. On the other side it has been suggested too that they should determine overall concepts of devices which is followed by them in respect to accomplish objective in effective and efficient form. If they follow all these forms and types of strategies thantheycanmakebetteraimsandcapabletostayinmarkettilllongtimeduration. Furthermore, it has been recommended that they should concentrates on entire marketing and promotional channels of their whole products and service which can impact entire population of China and Japan in an appropriate and adequate form (Arora, Bacouel-Jentjens and Edmonds, 2018). When population of these nations will get affected in a favourable manner, then they can accomplish their all over target by offering them better commodities and facilities. So that it assists in expanding the business in other nations. Thus, all these kind of orientation are required and essential for development or growth of future of CafeePod business. 9
CONCLUSION This has been summarised from the above data that international marketing is important for the business of a firm in form of developing profitability, productivity and revenue. During the time of market expansion of business, company face numerous issues related to laws, policies and political situation of country etc. Along with this, the company can select process for choosing global market to expand the business. Different methods like joint ventures, franchising etc. can be accept by the company to enter in to market. To analyse the competition, the firm can make comparison with other organizations of same sector. 10
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