Unit 40 International Marketing Report: Airdri Group Strategy Analysis

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This report provides a comprehensive analysis of international marketing strategies tailored for the Airdri Group, a UK-based company. It begins by defining international marketing and outlining its scope, emphasizing the benefits of global expansion. The report delves into the key concepts of international marketing, including imports, exports, and contractual agreements. It then explores the rationale behind international market entry and details various routes to market, such as direct and indirect approaches, with an emphasis on the selection of appropriate methods. The report evaluates key criteria and selection processes for entering international markets, considering factors like infrastructure, competition, and regulations. It also explains different market entry strategies, including their advantages and disadvantages. Furthermore, the report presents an overview of the global versus local debate in marketing, and investigates how product, price, pricing, and promotional distribution strategies differ in various international contexts. Finally, it examines various international marketing approaches that the Airdri Group can adopt, compares home and international orientations, and assesses competitors, highlighting the implications of each approach. The report concludes with a summary of key findings and recommendations for the company's international marketing efforts.
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International Marketing
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1Analyse the scope and key concepts of international marketing.......................................3
P2 Explain the rationale for it to want to market internationally and describe the various
routes to market the organisation can.....................................................................................5
TASK 2............................................................................................................................................6
P3 Evaluate the key criteria and selection process to use when considering which
international market to enter...................................................................................................6
P4 Explain, using examples, the different market entry strategies, including the advantages
and disadvantages of each:.....................................................................................................8
TASK 3..........................................................................................................................................10
P5 Present an overview of the key arguments in the global versus local debate.................10
P6 Investigate how the product, price, pricing and promotional distribution approach differs
in a variety of international contexts....................................................................................11
TASK 4..........................................................................................................................................13
P7 Explain and analyse the various international marketing approaches your client
organisation can adopt..........................................................................................................13
P8 Compare home and international orientation and ways to assess competitors, outlining the
implications of each approach..............................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
International marketing can be defined as those business activities in which planning is
executed in order to promote products and services in international markets. This is known to
be the most effective way in which business can attain high customer base and higher profits as
well. By marketing of product and services at international level more profits and market
prominence can be attained by businesses (Amankwah-Amoah, Boso and Debrah, 2018). This
is a business activity which is highly useful for intensifying business and capturing
organisational objectives in early manner. In this process there are various challenges which are
being faced by organisation as numerous factors are changed while performing business
activities at international level. This is helpful for the business to recognise needs and demands
of their customer in such a manner that by offering products and services ultimate satisfaction
of customer can be met. This report is prepared in order to understand various concepts of
international marketing in the background of Airdri group. The company is known as one of the
prominent organisation in UK. The company was established in 1974 in Oxfordshire, United
Kingdom. This report is associated with routes which can be used by businesses in order to
expand their business internationally. There are various key criteria which can be used within
selection process so that to choose one out of many methods. Along with this numerous
marketing strategies are also elaborated along with their advantages and disadvantages. In the
last part of the report comparison between home and international orientation is being included.
TASK 1
P1Analyse the scope and key concepts of international marketing
International marketing can be defined as the idea which can be used by businesses in
order to execute their planning of expanding business activities in international market level.
This is very essential that to inhale various growth and development strategies so that to
intensify business activities within international market area. This could be helpful in attracting
huge customer base and managing operational activities within global periphery.
Scope of international marketing
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Scope of international marketing is wide for Airdri as the company is trying to expand
in international markets and for this various benefits are inhaled by them. International
marketing is the way through which customers can be pitched in such a way that new product
and services can be used by customer in effective manner. This could be helpful in development
of business and managing all the business activities within international market areas. For
Airdri scope of internal marketing is elaborated as under:
Imports: This is known as the method through which products and services can be
brought in from another country (Katsikeas and et. al., 2016). This is an easy approach which is
having high business impact over international markets. With the help of this process Airdri can
import various products which may lead them to attain high satisfaction of their customers.
Exports: In this businesses are engaged in exporting raw and finished goods to other
international market. This is defined as an effective strategy through which more customers can
be engaged within business offerings and to tap into new business market as well. With the help
of this process Airdri can tap into new markets and deal with demands of their customers in
prominent manner. This is providing high scope of business enlargement to Airdri by which the
company can intensify their customer base and profits as well.
Contractual agreements: This is defined as the method by which organisation can deal
with business activities within international markets in easy manner. Contractual agreements
are defined as the agreement by which sales can be expanded within new market area.
Fully owned manufacturing: This is an aspect under which full manufacturing with
new international markets are built in order to attain customer requirement. This is associated
with opening up a new business within new market.
Key concept of marketing
In international marketing there are numerous concepts which are linked with the
business. Key concepts of marketing in the respect of Airdri are elaborated as under:
Domestic marketing: Under this local customers are targeted in such a manner that they
can be converted into potential customers. All domestic companies are running with the
major objective of attracting local customers.
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Comparative marketing: In this type of marketing various methods are used by
organisation in order to promote their products and services to the customers.
Comparative marketing is the way in which similarities and dissimilarities between
various marketing activities are analysed (Richter and et. al., 2016).
International Trade: This is known as the marketing concept under which within
international business offerings are promoted by using prominent channels of
marketing. The motive of this marketing concept is to attract more customers and earn
high profits as well.
P2 Explain the rationale for it to want to market internationally and describe the various routes
to market the organisation can.
There is numerous ways which can be used by Aridri in order to attract high customers
and to attain advantage over their rivals. In order to expand marketing activities business
functions are required to be performed at international markets. By entering into international
market a business can align their business with market demands. This could be useful for the
business to enhance their sales outside the country. This is imperative for Aridri to intensify
their business performance.
Routes to market internationally
There are numerous ways which can be used by company in order sell their products
and services within international level. This is very essential for Aridri that they analyse routes
to international entry so as to get power over various markets. This could help Aridri for
selecting the best and appropriate method in order to promote products and services at
international level (Cateora and et. al., 2020). This is helpful in approaching various markets in
such a manner that customer can be attracted in huge manner. Aridri is providing high quality
of electric appliances to their services along with high ranged services through which they can
route to international market. There are two major routes which can be used by Aridri which are
elaborated as under:
Direct routes: This is associated with all those channels which are helpful in order to get
direct communication to customers regarding products and services. This route is not
including any intermediate in between due to which customer can be communicated in
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direct manner. Aridri can advertise their business by using various channels of
promotion so that to reach out to target customers. In the context of direct route those
business channels can be used by company which are leading them to reach out to
customer and to earn high profits. This route is helpful for Aridri to develop prominent
relationship with their customer along with receiving feedbacks.
Indirect routes: This route of marketing is associated with using marketing channels in
which assistance is received from another party in international level. Indirect route to
international market involves perspective of third party in which marketing activities are
handed over to them as well. The responsibility of marketing activities is passed to third
party for products which are being manufactured by Aridri. This method includes
alliance partners, channel partners, OEM partners and many more.
Alliance partners: This is defined as business partners who could help in entering into
new international market and process of distribution of goods and services to ultimate
customers. These are tiny in size but at the same time help the business to take various
initiatives (Lu Jin, Zhou and Wang, 2016).
Channel partners: These organisations are having expertise in conducting marketing
activities within international markets. These are helping a business to persuade customer
towards making buying decision. This is the most effective way in which effective planning for
tapping into new market segments.
TASK 2
P3 Evaluate the key criteria and selection process to use when considering which international
market to enter.
This is highly essential for the company that they choose best market area so as to
acquire more markets in prominent manner. This could be highly beneficial for them in order to
enhance overall business performance. Aridri is willing to develop overall business and their
operations by tapping into new international market. This may lead the business to earn more
profits while entering into new markets (Anning-Dorson, 2018). For this it is highly required
that Aridri acquire all the information regarding selection of their appropriate method. A
particular process is being opted in order to select channel which is elaborated as under:
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International marketing objective: This is defined as the prominent step in which
planning for business expansion can be performed. By selecting proper market Aridri can reach
out to their goals and objectives. By examining culture, values and legal aspect this framework
can be decided.
Parameters for selection: This is helpful for selecting area and to analyse them by
evaluating various parameters. Various parameters which are required to be considered such as
availability of raw material, market condition etc. This is going to help Aridri to find out
appropriate area.
Preliminary screening: After analysing parameters for selection process, those
parameters are required to be screened. By this right and appropriate market can be analysed
and can be chosen as well. This is helpful in recognising various factors such as behaviour, size
of population, income of customer and many more.
Analysis and Selection: After preliminary screening preferred market is required to be
analysed. In this context Aridri is analysing their market and areas in which they can perform
their business operations. This may lead the company to inhale higher market development
opportunities.
Test marketing: In the selected target market test marketing is required to be performed
by Aridri. This is performed through selling their product in target market in order to analyse
customer inclination and market trend as well.
Commercial Production: Aridri is required to analyse results of their test marketing so as to
analyse market results so that to eradicate negative impacts. This may help Airdri to determine
their market position in international segment (Landon and et. al., 2017).
Key Criteria
There are various criteria which are required to be considered in order to survive in
various geographical markets. Some of them are elaborated as under: Infrastructure facilities: This is essential for the company that they analyse
infrastructure facilities in order to select international market. In this criteria Airdri is
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required to play effective role in choosing most prominent area through which
facilitation process can be easier as this aspect plays crucial role for the organisation.
Nature of Competition: In current time market competition plays significant role in
understanding overall business condition and for this most appropriate market is
required to be selected. For this market Airdri is trying to find out most efficient market
in which lower competition is existed so as to deal with their rivals in easy manner and
acknowledge customer in prominent manner as well (Hüttner, 2018).
Laws and Regulations: Every rule differs in every country that means for Airdri this is
imperative that they acknowledge rules and regulation in appropriate manner so that to
provide smooth functioning to the business.
P4 Explain, using examples, the different market entry strategies, including the advantages and
disadvantages of each:
There can be number of strategies through which a business can incorporate or proceed
with its operations in better and effective manner. Therefore, it is necessary for Airdri to
research and evaluate each strategy’s advantages as well as disadvantages. This evaluation will
help them understanding various types of marketing strategies available as an option. Some of
the major and common marketing strategies that can be used by Airdri are Export,
Merchandising, Licensing, Franchising and many others. Different market strategies are
mentioned below along with their advantages and disadvantages.
Export
This is a strategy to globalize the business operations of organization and enter the new cross
border market area. Airdri will be having an opportunity to expand its business operations as
well as sales of its offerings. Exporting is term used to define process of offering products
manufactured to new market area. Concerned company would be able to export its products and
services to an international market through various routes. This company will have its own
expanded supply chain team to expand to intended new market area (Dadwal and Hassan,
2016). Advantages – All products offered by organization including low cost products can be
exported at low cost if well managed and planned. The level of financial risk for Airdri
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would be moderate as well. This process of export would require company to hire
export agent who will mange every of process and take care of any difficulties. Disadvantage – One of the disadvantages can be low profit margin as number of taxes
adds up to the cost of this whole process and these can be a risk of appointing agent as
whole process would be managed and controlled by him.
Licensing
Licensing refers to process where business has to go through legal formalities and
license its products or business to carry on the business activities smoothly in international
market. It is granted by respective government or authority. Airdri too can take license for its
activities across border from government. This will grant Airdri with rights to sell or use its
intellectual properties, products and services in the international market. Advantages – The cost of licensing is not so high as compared to other strategies. It will
also help company in gaining more knowledge of local market condition and continue
business with comparative low risk (Park, 2020). Disadvantage – There is lack of proper roadmap for maintenance of organization
business activities under this strategy. Due to which Airdri won’t be able to have proper
supervision and control over its international activities which might bring negative
impact.
Franchising
Franchising is an agreement entered between two different organizations to carry on its
business operations across borders by sharing the resources or brand by the franchisor with
Franchisee. With respect to this Franchisor charges a certain fees or royalty from franchisee
moreover, they also get certain share in revenues. Advantages – This mode can be helpful for Airdri as it will lead to an growth in
international business without spending much of the cost and effort on marketing. It can
be considered beneficial as there is a rapid growth in business operations that can be
seen in these (Aarikka-Stenroos and et. al., 2018).
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Disadvantage – In this company is obliged to share its revenue with the Franchisor
which might raise the cost of operations. Moreover, there is a lot of control and
guidelines that is shared by Franchisor and that needs to be followed. There might be
high probability of disloyalty in this.
TASK 3
P5 Present an overview of the key arguments in the global versus local debate.
Marketing comes with high cost; therefore, it is necessary to be prepared and plan that
cost in most effective manner. To achieve this, it is required to critically evaluate various types
of marketing techniques available for both local marketing and global marketing. A comparison
is required to by every company to enhance its sales as well in improving profitability. Below
mentioned are some of the key arguments between local and global marketing:
BASIS LOCAL MARKETING GLOBAL MARKETING
Risk and ease Risk associated is
comparatively low and it’s
easy to carry that as mostly the
marketing team is aware of
local market(Assimakopoulos
and et. al., 2017)
Global marketing is more
complex as well as includes
high risk for company.
Scale of operations The activities within this are
restricted to local market.
In this company needs to
perform its production, sales,
promotion and other
operational activities at
international market area.
Consumer behaviour Since the scale is small the
variety in consumer behaviour
is also limited
It covers range of different
demographics therefore there
is huge differentiation in
consumer behaviour that can
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be noticed.
Example Airdri can be considered as
relevant and prominent
example of this
Airbnb is a good example of
global marketing. As it uses
variety of tools and techniques
to promote its offerings.
Therefore, from the above given detailed comparison it can be concluded that Global marketing
is more effective as compared to local and its should be utilized by every company. This will
assist organization in attracting large and more new customers to the organization.
P6 Investigate how the product, price, pricing and promotional distribution approach differs in a
variety of international contexts.
Marketing mix is a very crucial aspect within developing a business in new market
segments and to boost performance of their business as well. For all the companies this is
necessary that they use approach of marketing mix in sufficient way so that business operations
can be performed in better way. Marketing mix is associated with 4P’s such as product, price,
place, promotion. Under this different concepts are analysed such as customer behaviour,
demographics, places etc. The company is willing to their business operations in India and for
this it is highly necessary that they understand concepts of marketing mix in easy manner
Element United Kingdom International Markets
Product The company is involved in
manufacturing hand dryers in
order to satisfy needs of their
local and international
customers. The company is
having major products range
called: Airdri Quad Hand
Dryer, The Airdri Quantum
Hand Dryer, The Airdri Quest
The company is requisite to
develop needs according to
requirement of their
customers so as to enhance
their customer base in new
market.
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Hand Dryer and many more.
Price The company is using
moderate pricing in order to
minimise costing of their
products. This is helping the
company to maximise their
profits and meeting major
motive of their business
(Kuada, 2016)
.
The company may adopt
varied pricing strategies so as
to understand needs and
demands of their customers.
For this competitive pricing
strategy can be opted by
Airdri so that to gain
competitive advantage over
their rivals.
Promotion The company is using
traditional channels of
promotion in which print
media is majorly used by the
organisation and on the other
hand they are preferring word
of mouth in order to deal with
their rivals.
For expansion in international
market the company is
required to adopted emerging
channels such as social media,
digital media, celebrity
endorsement and many more
so that to deal with all class of
customers.
Place The company is
manufacturing their products
and distributing them as per
needs of their customers. This
is helpful for their customer to
enhance their ease of
purchasing.
In order to attain market
prominence Airdri is required
to use various channels of
distribution so as to deal with
their rivals and reach out to
their customer in effective
manner.
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TASK 4
P7 Explain and analyse the various international marketing approaches your client organisation
can adopt.
There are varied approaches that can be used by businesses in order to provide
international marketing to their business. Adoption of these activities leads the business to
inhale market success and prominence as well in most effective manner. Airdri is require to
adopt suitable aspect for their business so that they can sustain in international markets. These
approaches are elaborated as under:
Multinational: The company is having their business operations at various countries and
on the other hand there are numerous rivals which are offerings similar services and products as
well. This type of businesses are having their operations in different locations for instance
McDonald’s.
Global: This is associated with those business organisations that are operations at various part
of the globe. These organisations are having varied organisational culture in which they can
establish prominent pace in attracting high customers within their business offerings. For
example: Starbucks (Kasemsap, 2018).
Transnational: These organisations are highly complex in managing their operations.
These business organisations are having functions in more than one country and they provide
their product and services to numerous countries as well. For example: Nestle
P8 Compare home and international orientation and ways to assess competitors, outlining the
implications of each approach.
Home orientation: This is defined as the approach under which business can use various
promotional channels so as to promote their products and services within market. Under home
orientation businesses are trying to recognise various similarities so as to recognise inclination.
This is assumed that when a product or service is successful within local market then that will
be prominent in international market as well.
Implication: This could be helpful for Airdri to develop their market sector within domestic and
international market as well.
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Ways to assess competitors: This approach is helpful in order to deal with rivals in such a
manner that to attain lower threat from rival. In this organisation assumes that competitors are
having no role in providing damages to the business.
International orientation: This is helpful in order to determine differentiation and similarities
within varied market area. This is requisite for the company that they understand these gaps and
similarities in prominent manner so that to deal with international markets.
Implication: This approach is helpful in order to attain competitive advantage in the market and
to deal with rivals in sophisticated manner.
Ways to assess competitors: Under this it is assumed that rivals are providing higher threats
which may have higher negative impact to the business.
CONCLUSION
From the above report this can be concluded that this is highly essential for the company
that they use prominent methods and technologies in order to market their product and services
in international manner. International market is having wide scope in which different routes can
be used by businesses in order to provide appropriate selection over markets and methods to be
used. Strong strategies are being developed by businesses so that market prominence can be
attained by them.
.
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REFERENCES
Books and Journals
Aarikka-Stenroos and et. al., 2018. Building B2B relationships via initiation contributors: Three
cases from the Norwegian-South Korean international project business. Industrial
Marketing Management, 68, pp.74-85.
Amankwah-Amoah, J., Boso, N. and Debrah, Y. A., 2018. Africa rising in an emerging world:
an international marketing perspective. International Marketing Review. 35(4). pp.550-
559.
Anning-Dorson, T., 2018. Innovation and competitive advantage creation. International
Marketing Review.
Assimakopoulos and et. al., 2017. Effective social media marketing strategy: Facebook as an
opportunity for universities. International Journal of Retail & Distribution
Management.
Cateora, P.R., Meyer, R.B.M.F., Gilly, M.C. and Graham, J.L., 2020. International marketing.
McGraw-Hill Education.
Dadwal, S.S. and Hassan, A., 2016. The augmented reality marketing: A merger of marketing
and technology in tourism. In Mobile Computing and Wireless Networks: Concepts,
Methodologies, Tools, and Applications (pp. 63-80). IGI Global.
Hüttner, M., 2018. Marketing-Management: allgemein-sektoral-international. Walter de
Gruyter GmbH & Co KG.
Kasemsap, K., 2018. The roles of social media marketing and brand management in global
marketing. In Social media marketing: Breakthroughs in research and practice (pp.
425-453). IGI Global.
Katsikeas, C. S. and et. al., 2016. Assessing performance outcomes in marketing. Journal of
Marketing. 80(2). pp.1-20.
Kuada, J., 2016. Marketing decisions and strategies. Adonis & Abbey Publishers Ltd.
Landon and et. al., 2017. International codes and agreements to restrict the promotion of
harmful products can hold lessons for the control of alcohol marketing. Addiction, 112,
pp.102-108.
Lu Jin, J., Zhou, K.Z. and Wang, Y., 2016. Exploitation and exploration in international joint
ventures: Moderating effects of partner control imbalance and product
similarity. Journal of International Marketing, 24(4), pp.20-38.
Park, S., 2020. Marketing management (Vol. 3). Seohee Academy.
Richter, N. F. and et. al., 2016. A critical look at the use of SEM in international business
research. International Marketing Review. 33(3). pp.376-404.
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Online
Advantages and disadvantages of buying a business. 2018. [Online]. Available through:
<https://www.business.qld.gov.au/starting-business/buying-business/buying-business-
guide/advantages>.
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