International Marketing Report: ASDA's Global Expansion Strategies

This report analyzes ASDA's international marketing strategies, focusing on its potential for global expansion. It explores the scope and key concepts of international marketing, examining market entry routes like direct and indirect methods, and evaluates opportunities and challenges. The report delves into market selection criteria, entry strategies, and the advantages and disadvantages of each approach. It examines the global versus local market arguments, investigating how the marketing mix (product, price, promotion, and distribution) can be adapted to different international contexts. The report also compares home and international orientations, assessing competitors and outlining implications. The report provides recommendations for organizational structure and marketing approaches, offering critical evaluations of the marketing mix within an international context. The report also provides a critical evaluation of the international market and recommends how ASDA can approach global expansion.

International
Marketing

Table of content
Contents
INTRODUCTION.......................................................................................................................4
TASK1.............................................................................................................................................4
P1 The scope and key concept of international marketing.......................................................4
P2 Explain the rationale for it to want to market internationally and describe the various
routes to market........................................................................................................................5
M1 Evaluation of opportunities along with challenges...............................................................6
TASK 2............................................................................................................................................7
P3 Key criteria and selection process that the company should use when considering which
international market to enter........................................................................................................7
P4 Explain, using examples, the different market entry strategies, including the advantages
and disadvantages.....................................................................................................................8
M2 Market evaluation, entry strategy and recommendations......................................................8
D1 Furnish critical evaluation of international market................................................................8
TASK 3............................................................................................................................................9
P5 overview of the key arguments in the global versus local market......................................9
P6 Investigate how the product, price, pricing and promotional distribution approach differs
in a variety of international contexts........................................................................................9
M3 Circumstance in which global strategy must be opted........................................................10
M4 Adopt marketing mix in distinct international market........................................................10
D2 Critically evaluate marketing mix within international context...........................................10
TASK 4..........................................................................................................................................11
P7 International marketing approaches:.................................................................................11

P8 Compare home and international orientation and ways to assess competitors, outlining
the implications of each approach..........................................................................................11
M5 Marketing approaches as well as competitor analysis and recommendations for operating
in international market...............................................................................................................12
D3 Recommendations with respect to structure of organization...............................................12
CONCLUSION......................................................................................................................13
REFERENCES...........................................................................................................................14

INTRODUCTION
International marketing refers to the process in which company operates their business
activity at different level. The operation is managed and controlled in the well define manner and
it also help in increasing the sales and market revenue in the shorter time span. Marketing is
essential in the business as it help to provide information regarding the product and able to
capture large market share beyond the boundaries (Ahmad, 2019). With the assistance of
international marketing every firm can avail all the detail information regarding their product to
their customer. The present report is based upon ASDA which is supermarket retail store which
provide grocery and general merchandise product. Company have headquartered in Leeds
England and it was founded in year 1949. Beside this, the report covers about all the vital
information like company expansion at global level and it related strategic plan which is
associated with the expansion and growth. Beside this cover the detail explanation about the
marketing mix and also some recommendation which is used to reduce risk and uncertainty
while taking at international platform. There are different kind of marketing approaches which
are used to meet the customer and global market need in the well define manner.
TASK1
P1 The scope and key concept of international marketing
International marketing has been emerged as the important platform which help in
increasing the profit and suitability of firm for the longer time period. This work focused on
ASDA which is a British supermarket retail store and provide different kind of consumable items
and grocery to the respective customer. The company was founded by Peter and Fred and have
store at different location. Enterprise is planning to expand their business at global level and
ensuring to provide better service which tend to attract larger customer in the well define
manner. Beside this they are also diversifying their product range from grocery to fast moving
consumable in order to tap the international marketing.
Scope and key concept:
In the context of ASDA, the management is trying to expand the business at vast level as
firm have to identify the different ways through which they successfully run and operate business
at different level. The firm have managed their operation at local level effectively and wants
open store in Asian and western countries. In order to implement such strategies manager, have

to can use different steps for going internationally. Here are some steps which are explained
briefly down below in detail manner.
Exports: This is the most used method by every organization which help in business to
deliver their product and serviced from nation to another. This is considered as useful method
through which ASDA can expand their business globally and capture large market share by their
effective services to their customer. Apart from this it is consider as the cost-effective method
which provide firm ease of doing business in proper manner. There are different challenges
present in the Exports as there are various kind of laws present in the business which company
have to follow otherwise it slow down the process and reduces the market presence.
Joint venture: It is the method in which the firm merge with the other international
company in order to run their business smoothly in different part of the world. This method can
consider by ASDA for expanding their business at international level. Joint venture provides all
the platform to share technology at one platform through which firm easily improve their product
quality and tapped the large market share effectively. In the joint venture their can be different
challenges can be present such as two different companies have their own set of procedure which
is difficult for the management to follow all the rules which conflict and chaos.
Contractual Agreement: When firm wants to expand their business effectively there are
different kind of problems which have to be faced by the company. So, to minimize the waste
enterprise can enter into contractual agreement which tend to increase the sales and market
presence. Beside this it aids ASDA to identify the need which is required for the firm to manage
and control work effectively and useful in operating business in different countries. The
international problem is the pricing policies and working condition which effect the business and
also reduce the market share.
Import: This indicate about purchasing raw material from the other countries. There are
different kind of factor which firm can use, and import is considered as one of the beneficial
outcomes for as reduce all the raw material expenses and increase the product efficiency through
which firm can improve their cost effectively. The challenge in this that it increases the price of
the product and to bring down the price becomes difficult for the company. so, the effective
measure should be taken by the firm as to handle the situation effectively.

P2 Explain the rationale for it to want to market internationally and describe the various routes to
market
For the organization like ASDA top level management have to focus on the global
procedure and bring out the effective outcomes which help in achieving desire aims and
objective in the well define manner. As firm wants to expand their business at vast scale so firm
have to build the proper plan and make sure to follow all the instruction as to avoid any kind of
risk and uncertainty present in the outer marketplace (Chow and Schoenbaum, 2020). Apart from
this firm have to manage and take care of their stakeholders, employee and customer as this tend
develop of loyalty in the minds of individual and this beneficial for the company to enlarge their
business international platform. In order to expand the business firm, have to keep local and
global market effectively as to increase the sales and profitability effectively.
There is different method through which firm have enter in the new market as enterprise
has to keep in the mind the perspective of different market. The business depends upon the
nation which may vary from one nation to another. So, this is important for the firm to conduct
intensive market research and make sure that all the requirement is fulfilled as this reduce all
theft and ensure for the smooth functioning. Understanding the global market have essential for
ASDA as the demand and needs are different of the person as company move to other nation.
The proper feedback must be taken from the customer and make changes to overcome all the
problems and it increase the chance of company to attract large customer base. Here are some of
the routes through which institution can enter in the new market in the detail manner:
Various international marketing entry routes and recommended:
Direct route: This is the way through which firm can enter in the new global market by
following all the terms and condition effectively. In the context of ASDA manager can provide
goods to their customer by giving them sample and can use advertisement which help in
increasing the sales volume and also help in gathering lots of attention at the vast level. This is
most common method which is used by the most the company to serve the large customer.
Indirect route: It is the procedure which include the third party through which firm can
operate their business effectively without any convivence. There are the different kind of indirect
method such as franchise and licensing which can help the firm to manage and run the business
at the different parts of country in the well define manner.

From the above stated report this has been analyzed that indirect method is the most
convenience method and ASDA have to use such method which help in achieving their desire
aims and objective in the well define manner. As there are different ways to enter in the market
but company have to figure out the best possible outcomes effectively.
Advantages of direct route:
 By taking advantage of direct route of international marketing entry is can have full
control over their services and products. Along with this in order to enhance their
consumer satisfaction company can also provide effective after sales services.
 Direct route also provide significant advantage to ASDA by offering them better
protection of their patent, trademark and copyrights. Along with this entity can also gain
advantage of fully engaged and committed in their export process through which they can
have better understanding of foreign marketplace.
Disadvantages of direct route:
 However direct route also has different type of disadvantages that can somehow hamper
organizational profitability and smooth internationalization process. In this it has been
identified that as is required to spend more money time and energy along with more
people power in order to establish themselves in international market segment.
 Direct route held ASDA accountable for whatever happens, along with this entity is also
required to handle all logistic of the transactions.
Advantages of Indirect route:
 Indirect route can provide cheapest entry strategy for ASDA through which they can have
an intermediary organization who can handle all the activities with great efficiency.
 Along with this it has been identified that indirect route of international entry mainly
demand minimum involvement in export process. It further allows ASDA to mainly
imprecise upon their domestic business.
Disadvantages of Indirect route:

 However one of the most adverse disadvantages of indirect route is that it allows
intermediary organization to have maximum control of activities that restrict ASDA to
gain valuable knowledge of operating functions in international place.
 ASDA can restrict themselves to really know about their International consumer taste and
preference is that affect their future opportunity to evolve their business in a competitive
manner.
According to the above analysis it has been identified that there are different type of
international marketing entry routes through which ASDA can maximize their business services
range. However each route direct or indirect, have their own set of advantages and
disadvantages. By emphasizing upon these ASDA is recommended to take advantage of direct
route as it not only allow entity to enhance their future growth opportunity in international
market place but also facilitate them to maximize their global brand image efficiently.
M1 Evaluation of opportunities along with challenges
Some challenges as well opportunities that are associated with international marketing in
context of ASDA are specified below:
Opportunities Challenges
The principal opportunity that ASDA have
is expansion of their operations across
nations, this will aid them within attainment
of their targets.
The major confront is to deal with
fluctuations within currency rates at global
level. Along with this, high competitive
market also presents various challenges.
ASDA is delivering their operations across
UK though they have probable impact of
Brexit but still they have different
opportunities to amplify their performance
like enhancing their product portfolio along
with quality.
There are relevant alterations within
regulations as well as rules that govern the
country, this leads to creation of different
problems like the ways in which services
are furnished by ASDA.

TASK 2
P3 Key criteria and selection process that the company should use when considering which
international market to enter
There are different set standard and procedure through which firm can easily enter in the
new market effectively. For the supermarket chain like ASDA manager have to build proper plan
as this ensure the smooth functioning of plans and help in increasing the sales along with the
profitability for the longer time period (Karimi Sarame and et., al., 2020). Here are some
selection process steps which enterprise have to follow to reduce all the kind of risk and
uncertainty present in the business.
Identifying the foreign market: This is considered as the initial step where the firm like
ASDA have to focus on the figuring out the market which help in establishing business
effectively. There must proper research and development program have to be established which
assist to provide better services to the respective market.
Selection of specific market: After analyzing the market the next step is to specify the
target customer. In the case of ASDA, the company deals in grocery, so the main target are the
female and family who spend more money of consumable items. Apart from this, there must be
proper planning which help in increasing the market value in the limited time frame.
Evaluation and selection: As the name suggest in this selection process the company
tend to short list the best possible outcomes and eliminates the unnecessary inputs. The
evaluation and selection done by ASDA is one the basis of cost benefits which is used to manage
and control all the international activities effectively. Identify all the pros and cons are vital for
the firm and make sure to reduce all the external forces to accomplish desire aims and objective.
Testing market: Marketing test is very essential as this provide all the insight regarding
the need and requirement of customer in the well define manner. In the context of ASDA, the
management have to ensure by analysis and testing the market by providing samples and services
to the buyers and make improvement to gain success in the market effectively. Testing plays a
vital role as give insight about the make changes to out effective outcomes.

Commercial production: This is the last stage where company is ready to enter in the
international market and provide all the services which are essential for the customer. ASDA
must follow all these steps and make commercial production in order to earn more profit. Hence
the selection process assist firm to sustain for the longer time period.
Conclusion and Recommendation
As per the report this has been concluded from the above report is that, company have to
conduct proper selection process before in the international market as this provide effective
outcome and result. This will also assist to reduce risk and provide large customer base in limited
time frame.
P4 Explain, using examples, the different market entry strategies, including the advantages and
disadvantages
Market enter strategies for ASDA
Franchising: This is considered as the most common method which help in expanding
and rapid growth of the market. The method only works effectively where the business has
rapidly model such as food and supermarket chain. This is vital for the company like ASDA to
use this method as it provides ease for doing business and also help in reduce the other
operational cost for the firm. The business requires the unique model and management can open
store at different nation and run business effectively.
Direct exporting: This means selling the goods and service to customer directly without
having any kind of intermediates. Many firms have had to develop the sales program which help
in increasing the sales by exporting the goods from one nation to another. In the case of ASDA
firm have to hire sales agent and also create effective distribution network which help in transfer
the goods and services effectively to the various parts of the country.
Joint venture: It is the particular for of leadership which help in creating third party to
manage the company. in this two different companies merge and become one firm as to capture
large market share effectively. For the supermarket chain like ASDA there must be collaboration
done other chain like Walmart and Tesco as this help in increasing the sales and able to capture
large market share effectively.

Greenfield investment: This is the investment which is vital in international business. In
this method ASDA have to purchase the land in a particular nation and help in increasing the
customer base and can easily operate in the business effectively. Hence this method reduces all
the logistic and transportation cost effectively.
M2 Market evaluation, entry strategy and recommendations
The best option which ASDA have is to opt for is direct exporting through which they
can venture within the international market. It is cost efficacious process that does not require
extra investment by organization. Within the market, there is wide range of competitors thus,
strategy will act as an adequate way through which they can succeed within the marketplace.
D1 Furnish critical evaluation of international market
Globalised marketing is an appropriate or efficacious tool that aids within expansion
within global market. In addition to this, marketing strategies aids ASDA to render wide range of
products and services as per desired standards to ample number of customers. The positive
aspects associated with this are that firm can grab huge population towards them which will lead
to enhance their profitability. But the major negative impact is that while expanding they need to
ensure that they work as per rules and regulations of particular country.
TASK 3
P5 overview of the key arguments in the global versus local market
BASIS LOCAL MARKET GLOBAL MARKET
Size of business
operations
In this the company use to operate at
the local level and have limited number
of customers. Apart from this,
employees and revenue are limited to
some extent.
As per the global market
company have various operation
from one nation to another. The
firm have large number of
employees and also earn huge
profit.

Assessment of
Risk
The risk is associated to the
organization which have less impact of
the economy. This is less risky to
operate the business in small scale
(Reyes-Menendez and Filipe, 2019).
In the case of international
market, the risk comes with huge
amount and this can directly
affect the business and economy.
Financial
Resources
For starting the new local business
there is less requirement of financial
resources. The management have to
make plans as per the needs and
requirement.
In the context of global market
company needs to have large
amount of money. There must
proper planning and research is
associated to maintain financial
resources.
Complexity of
procedures
There is less complexity present in the
business.
Here due to large amount of
work and international procedure
the complexity increases.
Consumer
perception
Perception of customers are quite
positive against the products offered by
ASDA as they provide high quality
services to them which will satisfy their
needs and wants
Here the firm have developed
the customer perception by
providing the better product and
service effectively.
P6 Investigate how the product, price, pricing and promotional distribution approach differs in a
variety of international contexts
While entering into new market firm have to understand the marketing strategies as to
overcome all the problems and challenges effectively. ASDA management have to facilitate and
develop proper plan which help in maintaining and providing effective strategies to overcome
the problems. There are different marketing approaches which must be consider by the ASDA is
explained briefly down below:
Product: In marketing, an item is an outstanding choice for buyer use; it is anything that
could be provided on the product to help the user's wishes or needs. The company have wide
variety of daily use items as to fulfil the requirement of the firm effectively. Apart from this firm