International Marketing of Just Eat Plc: A Comprehensive Analysis

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Desklib provides past papers and solved assignments for students. This report analyzes Just Eat Plc's international marketing.
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INTERNATIONAL MARKETING
International Marketing of Just Eat Plc
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Table of Contents
Introduction......................................................................................................................................3
LO1 Exhibit an understanding of the contribution of marketing in business strategies in an
international context........................................................................................................................3
LO2 Assess entry to a selection of international markets by determining the key factors for
success.............................................................................................................................................5
LO3 Assess how components of marketing plan can be adapted or standardised throughout
international markets.......................................................................................................................6
LO4 Exhibit an understanding of organising and evaluating the international marketing efforts.. 7
Conclusion.......................................................................................................................................9
References......................................................................................................................................10
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Introduction
In today’s business and marketing sector, internationalizing is one of the trending practices
adopted by different business. In this report, different aspects of international market will be
discussed along with the challenges that are to be faced while internationalizing or entering any
new market. Just eat private limited company, which is headquartered in London, England. Just
Eat is an online food ordering and delivery websites. The company has to grow its business
internationally (Justeatplc.com, 2019). The various challenges that company might face along
with proper strategies required by company are going to be discussed in this following report.
LO1 Exhibit an understanding of the contribution of marketing in business strategies in an
international context
International context
Scope and definition of international marketing
The term international marketing defines itself, which means marketing in various nations or
expanding the business of the company across various nations. International marketing is
performing business and marketing on global level by facilitating the flow of goods to the
customers of different countries apart from the parent country. As opined by Kazlauskaitė et al.
(2015), there is not much of difference among domestic and national marketing. However, few
changes are to be brought in the marketing strategies business plans while internationalizing.
International marketing is also said to be a source of maintaining peace among several nations.
Therefore, through international marketing, higher profit rates can be achieved in business along
with maintaining the relationship among various nations.
Rationale for why organizations are seeking to internationalize
There are many rationales for organisation choosing to expand their business operations
internationally. The first and major rationale is to reach out to more number and diverse type of
customers. This will in turn help the company in effective business expansion and will be
beneficial for the sales rate of the organisation. Another reason for international expansion by
organization is to get more opportunities for growth and property of business. Just Eat plc can
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easily enhance its annual turnover and revenue generation through expanding its business among
various nations (Justeatplc.com. 2019). This will be beneficial for Just Eat plc in empowering its
presence in the domestic as well as in international market.
Key global macro and customer trends
Preferences and demands of customers are changing frequently and this change varies nation by
nation. According to Freng Svendsen et al. (2011), the demographic factors are the major macro
trends and the lifestyle of customers, habits; preferences and behaviour of customers are the
major customer trends. By the means of international marketing, Just Eat plc can get to interact
with more customers and the company will be able to asses various number of customers and
these different macro and customer trends. This will help the company in enhancing its business
plans strategies for performing much better in the international market.
Contribution to meeting strategic objectives:
Marketing’s role in contributing to the business strategy in an international Context
At the time of expanding the market and business in international market, marketing strategy is
very crucial support for delivering good performance. Just Eat plc can develop its business and
marketing performance in the international market with the help of effective marketing strategy
(Justeatplc.com. 2019). Through developed marketing strategy, Just Eat can attract a huge
number of customers in the international market. Strategies should be made according to the
strengths and weaknesses of Just Eat plc and the market segment and targeted customer group in
the international market. As opined by Dai et al. (2014), marketing strategies are to be
formulated by considering the pricing plans as well as the promotional activities that are to be
carried out in the international market. This will be a huge support and contribution for Just Eat
plc, while expansion of its business in international markets.
Factors that influence internationalization and setting an international marketing strategy to
meet objectives
There are many influencing factors for Just Eat plc, present in the international market. As per
the opinion of Banalieva and Dhanaraj (2013), these factors are related to the advent of
globalisation, technological advancement, the behaviour of customers and staffs towards the
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organisation and the extent of rivalry faced by the company in the international market. Just Eat
plc can enhance its quality and products ranges after entering the marketing. As mentioned by
Zeriti et al. (2014), company can add additional features as per the demands and preferences of
the customer in the new market environment. With advanced technology, Just Eat plc can
enhance its online applications and provide better services to the customers. This will help the
company in gradually strengthening its presence in the international market. As the company
operates mainly on digital platform, technology has a major impact on the performance and
business of Just Eat plc. Therefore, as stated by Chung (2012), making proper use of technology
in the operations will help the company in accomplishing the operational goals faster and in
efficient way. By following this marketing strategy, Just Eat plc can attain its objectives in
international market.
LO2 Assess entry to a selection of international markets by determining the key factors for
success
Critical evaluation of international market
The importance of choosing the right international market
As opined by Wach (2015), international markets are full of diverse customers and they differ in
various aspects of marketing. It is very crucial for Just Eat plc to analyze and identify the most
appropriate and prosperous international market. This is because Virvilaite et al (2011) has
suggested that wrong selection of international market can cause severe loss to the company and
may also damage the reputation of the company in that particular market. Just Eat plc should
select such market, where there are many opportunities available for the company and where the
company can grow in an effective and prosperous manner. As mentioned by Terpstra et al.
(2012), the proper and right selection of market will facilitate better introduction of the products
and services of Just Eat to the customers of new market.
The international market selection process
The process of selection of international market comprise of various stages. As mentioned by
Taylor (2013), in first stage of this process, the whole focus is applied on the process of decision
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making by considering the priorities of the company and the success factors for the growth of the
company. In the succeeding stages of this process, various international markets are identified
and sorted in a list. As opined by Kazlauskaitė et al. (2015), the selection process of these
markets is carried out by undertaking the growth opportunities and favourable market
environment for the company. In the third stages of this process, all the sorted options are
evaluated and the finals section is done in the finals stage of this process.
Opportunities and challenges when entering international markets, including Ethical and legal
considerations
When the company enters in its finalized international market, there are many challenges faced
by the company. However, as stated by Sousa and Filipe Lages (2011), there are several
opportunities like diversified channels, rivalry advantages, investment opportunities in new areas
etc. are also available for the company in that particular market. The challenges are generally
related to the governmental restriction and regulations for performing business, the legal and
political factors, which influence the business of the organization. As suggested by Liu et al.
(2011), there are various other factors such as pricing strategies of rivals, value of currency, are
some of the major challenging factors for the company. Along with these factors, some ethical
considerations like working culture, relations with suppliers and buyers, outsourcing etc are to be
undertaken by the company.
Risk management and contingency planning in relation to volatile International markets
At the time of entering the international market, there is some risk for which, a risk management
plan is necessary for Just Eat plc. As the market has become complex , therefore, performing
business has become more complicated in international market as there are various risks related
to business in international market. Therefore, it is recommended for Just Eat plc, to refer to
contingency risk management plan, which can help in overcoming various risks faced while
performing business in international market (Justeatplc.com. 2019). Using contingency plan will
be helpful for Just Eat, as it will help in making new plans according to the circumstances faced
by the company while operating in international market. This will also contribute to the strategy
formations for market entry.
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Generic international market entry strategies and key success factors of international marketing
The entry strategy should be designed by undertaking factors like transportation cost,
export/import duties, demographics, market segments etc. For making a successful entry in the
new market, Just Eat should collaborate with any famous brand of the host market, as it will
enable the colony in reaching to more amount of customers. This will be a great market entry
strategy for the company. However, as opined by Dachs et al. (2012), the key success factors of
international marketing will be proper cost benefit plan, demographics of the market and the
proper estimation of the target customers in the international market. By complying with all
these factors properly, Just Eat plc can successfully perform in the international market.
LO3 Assess how components of marketing plan can be adapted or standardized
throughout international markets
The marketing plan in an International context
Product adaption: global vs. local
At the time of entering in new market, Just Eat will have to consider the method of product
adaptation. It is a process in which the products of the company are improvised according to the
demands of the customer in particular market of the company. According to Czinkota and
Ronkainen (2013), adaptation can be made on global as well as local level. Some of the products
and services of the company can be manufactured by considering the common demands and
requirements of the customers. Further, some of the products of Just Eat plc can be modified
according to the demands of the local customers. Through this marketing and product adaptation
strategy, Just Eat can fulfill the demands and expectation of the customers, present in both local
as well as international market. This will help the company in providing optimum satisfaction to
its customers and company will be able to perform successfully in global market (Cavusgil et al.
2014).
Being a local company, Just Eat plc has the advantage of switching to different business models
as per the demands and requirements in the global and local markets. As opined by Dachs et al.
(2012), this advantage is not enjoyed by big companies present in the market. The process of
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manufacturing and products range of the company can be altered and amended according to the
requirements of various markets. Large companies are generally deprived of this feature.
Pricing in international markets
As opined by Semrau et al. (2016), pricing is not much objected by the customers, but it is a very
crucial factor for the performance of Just Eat plc in the international market. For proper pricing
of the products and services of the company, Just Eat should formulate and refer to an effective
and proper pricing strategy. The pricing of the services and products of Just Eat plc should be
done in such a manner that it reflects the high quality of the services of the products as well as
attract the customers in the international market. Morgan et al. (2012) has suggested that while
performing in the international market, the pricing of rival companies should also be considered,
as it will help in better formulation of the pricing strategy for the company. If the pricing is done
very low, than lower profit margin will be archived by the company and the products or services
of the company will be assumed to be of low standard or of low quality.
The use of new technologies that support international distribution and promotional strategies
considering hardware
As the business operations of Just Eat will increase, new technology will be required for various
processes, advanced technology and softwares like mobile computing and cloud computing will
be needed for storing the customer database and for carrying out various process of the
organisation. As suggested by Cavusgil et al. (2014), the digital platform of the company can
also be enhanced through advanced technology. Advancements in logistics sector will aid to
proper promotional strategy of the organization.
People and servicing in an international context
People in Just Eat plc mainly comprises of its employees and staffs. As opined by Dachs et al.
(2012), proper telecommunication and networking services will facilitate better flow of
information and proper interaction among the people of the organisation. This will help the
company in serving its people and customer more appropriately and effectively in international
market. Just Eat plc can also use social media as a medium of promotion among the international
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customers. All these factors will be best supporting factors for the business performance and
growths of Just Eat in the international market.
LO4 Exhibit an understanding of organizing and evaluating the international marketing
efforts.
International marketing efforts
Organization structures in an international context
The structure of the organisation is an inflecting factor for the business operations and
performance of the organisation, in the internal market. Just Eat plc is a local company and it
desires to expand its business operations and services in more international markets. Therefore,
the company should be implementing decentralization in its organizational structure. As opined
by Dachs et al. (2012), decentralization facilitates proper decision formulations by the employees
according to the situation faced in business. In this way, decision-making will become effective
and appropriate according to the situation faced in different international markets of Just Eat plc.
The company can go for international division organisational structure, as less standardization is
required among the domestic and international business operations of the company.
Home or international orientation and assessing international market competition
Home orientation perceives domestic and international markets as two different kind of market,
whereas, international orientation perceives all its markets as a single entity. I would recommend
Just Eat plc to prefer home orientation as it provides easy pathway to the company for better
internalization of the business. It will be beneficial for the company as the customers in different
countries have contrasting demands. Therefore, judging domestic market and international
market as different markets will help the company in performing effortlessly in both local and
international markets.
In international market of Just Eat, there will be various competitors present in its business
environment. Following home orientation or ethnocentric orientation will be a competitive
advantage for the company. For assessment of international market competitor, as stated by
Banalieva and Dhanaraj (2013), it is required to assess the rivals in market, then their strengths
and weaknesses. It is also necessary to assess their pricing and business strategies. This will help
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the company in developing and enhancing its business plans and strategies. The main
competitors of the company are those brands, who sell the substitute products or products similar
to the products of Just Eat plc. Therefore, the company should prevent any kind of replacement
from these rivals, present in international market.
Negotiation and new business assessment in international markets along with assessing
international market performance
Just Eat plc has to negotiate in both its domestic as well as in its international market. Therefore,
as suggested by Berthon et al. (2012), negotiation will also be contributing factor for the
internationalization of the company. Through proper negotiation, Just Eat can manage deals with
any other business party or its customers. Effective negotiation skills will be helpful for the
company, as it will help in creating and fostering relations of the company with various other
business bodies in the international market. Through negotiation, any kind of conflict can be
prevented and resolved by Just Eat plc. In this way, more connections and networks will be
integrated in the business and marketing chain of Just Eat plc (Justeatplc.com, 2019). It is also
necessary for the company to perform time-to-time analysis of its performance in international
market and make necessary amendments in its business strategies.
Conclusion
As making entry into the international market is a big decision for any local company like Just
Eat plc, the company is required to formulate a proper international marketing strategy and stick
to it for performing its business. All the necessary information and measures have been provided
in the report for helping the company in formation of proper marketing strategy and performing
well in the international market. This will facilitate proper and effective growth as well as
expansion of the company in global market.
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References
Banalieva, E.R. and Dhanaraj, C., 2013. Home-region orientation in international expansion
strategies. Journal of International Business Studies, 44(2), pp.89-116.
Berthon, P.R., Pitt, L.F., Plangger, K. and Shapiro, D., 2012. Marketing meets Web 2.0, social
media, and creative consumers: Implications for international marketing strategy. Business
horizons, 55(3), pp.261-271.
Cavusgil, S.T., Knight, G., Riesenberger, J.R., Rammal, H.G. and Rose, E.L.,
2014. International business. Pearson Australia.
Chung, H.F., Lu Wang, C. and Huang, P.H., 2012. A contingency approach to international
marketing strategy and decision-making structure among exporting firms. International
Marketing Review, 29(1), pp.54-87.
Czinkota, M.R. and Ronkainen, I.A., 2013. International marketing. Cengage Learning.
Dachs, B., Kampik, F., Scherngell, T., Zahradnik, G., Hanzl-Weiss, D., Hunya, G., Foster, N.,
Leitner, S., Stehrer, R. and Urban, W., 2012. Internationalisation of business investments in
R&D and analysis of their economic impact. Luxembourg: European Commission.
Dai, L., Maksimov, V., Gilbert, B.A. and Fernhaber, S.A., 2014. Entrepreneurial orientation and
international scope: The differential roles of innovativeness, proactiveness, and risk-
taking. Journal of Business Venturing, 29(4), pp.511-524.
Freng Svendsen, M., Haugland, S.A., Grønhaug, K. and Hammervoll, T., 2011. Marketing
strategy and customer involvement in product development. European Journal of
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Justeatplc.com. (2019). [online] Available at: https://www.justeatplc.com/ [Accessed 9 Apr.
2019].
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SME internationalisation: An emerging economy perspective. Resource, 3(2), pp.53-64.
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Liu, Y., Li, Y. and Xue, J., 2011. Ownership, strategic orientation and internationalization in
emerging markets. Journal of World Business, 46(3), pp.381-393.
Morgan, N.A., Katsikeas, C.S. and Vorhies, D.W., 2012. Export marketing strategy
implementation, export marketing capabilities, and export venture performance. Journal of the
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Semrau, T., Ambos, T. and Kraus, S., 2016. Entrepreneurial orientation and SME performance
across societal cultures: An international study. Journal of Business Research, 69(5), pp.1928-
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Sousa, C.M. and Filipe Lages, L., 2011. The PD scale: a measure of psychic distance and its
impact on international marketing strategy. International Marketing Review, 28(2), pp.201-222.
Taylor, P., 2013. The effect of entrepreneurial orientation on the internationalization of SMEs in
developing countries. African Journal of Business Management, 17, pp.19-21.
Terpstra, V., Foley, J. and Sarathy, R., 2012. International marketing. Naper Press.
Virvilaite, R., Seinauskiene, B. and Sestokiene, G., 2011. The link between
standardization/adaptation of international marketing strategy and company
performance. Engineering economics, 22(1), pp.106-117.
Wach, K., 2015. Entrepreneurial orientation and business internationalisation process: The
theoretical foundations of international entrepreneurship. Entrepreneurial Business and
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Zeriti, A., Robson, M.J., Spyropoulou, S. and Leonidou, C.N., 2014. Sustainable export
marketing strategy fit and performance. Journal of International Marketing, 22(4), pp.44-66.
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