International Marketing Strategies for ASDA: BTEC HND Report

This report provides an analysis of international marketing strategies for ASDA, a UK-based multinational grocery chain, with a specific focus on potential expansion into South Africa. It examines key concepts and the scope of international markets, available entry routes, and challenges such as slow growth in developed markets and declining growth in emerging markets. Opportunities presented by untapped markets are also discussed. The report outlines criteria for entering global markets, including environmental factors, market demand, competition, and consumer expectations. It evaluates the pros and cons of various market entry strategies like partnering, franchising, and direct exporting. The report further includes a market evaluation framework, considering purpose, industrial sector, customers, competition, and data analysis. The recommendation suggests that entering the untapped markets of South Africa holds great profit potential but also carries risks due to economic conditions, emphasizing the importance of effective risk management.

International Marketing

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analyses of key concepts and scope in international market for ASDA.....................................3
Available routes for international market....................................................................................4
Challenges in the international markets.......................................................................................4
Opportunity provided by international markets...........................................................................5
Criteria for entering global markets.............................................................................................6
Pros and cons of different market entry strategies.......................................................................7
Market evaluation........................................................................................................................7
Recommendation.........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Any activity performed by a business organization for the growth of the firm across the
borders is known as international marketing. Focus of the global marketing is on expanding the
growth of the organization by targetting the customers across the globe.
ASDA is a UK based multinational brand dealing majorly in the grocery products
through their established supermarket chain since 1949.
The following report will be mentioning the analyses of international marketing in
context of ASDA. A thorough analysis of the international markets and recommended strategies
will be provided accordingly.
MAIN BODY
Analyses of key concepts and scope in international market for ASDA
A UK based multinational firm operating in different parts of country, catering the
customers majorly with the grocery items and some non-food products too. Focus of the
company towards international markets specifically in South Africa will be aimed with thorough
analyses of the market. Some features of the international market scenario is discussed below:
Key features
 Broader market
International marketing allows a wider market to the company in comparison to the
domestic market as many buyers and sellers are involved in the business deals in global markets.
The larger availability of market benefits the company to target different customers with their
products and service. This factor leads to the increasing profit for the company.
 Highly competitive
The availability of larger scope in the international market leads to higher competition in
the market because of these markets provide more satisfactory business opportunities than the
domestic markets.
 Higher risk
Involvement of different buyers and sellers across the globe makes the market more risky
as involvement of different factors are also there which tends more risk to the dealers. With
higher profitability chances the company has to bear higher risks as well to operate in the wider
market.
Scope

 Export
Selling goods from one country to other country is referred as exporting of goods.
Exporting option in international market is one of the most pursued method of doing business
because it increases the customer base of the company by increasing the availability of resources
supporting this activity.
 Import
Bringing in the goods and service that are produced in different countries is termed as
importing. Importing facility helps a business organization to bring in raw material and other
distinct product or service which can be comparatively better from the domestic ones.
Available routes for international market
There are various beneficial aspects for the company to operate in the international
markets so that they can achieve higher customer base. The wider markets helps the company to
grow more and more and can target unimaginable objective with the time. The larger availability
of customers with different preferences provide numerous opportunity for the organization.
There are higher chances of profitability in the global markets as different customer increases the
demand of different kind of commodities and services. ASDA can grow in manifolds in the
global markets by catering the customers and the already established goodwill of the brand in
many parts of the world will definitely act as a supporting measure.
The international markets can be pursued by effective and smart marketing techniques
that has to be pursued in consideration with the behaviour of the desired markets and the
customer preferences. Products offered by ASDA can be altered according to the tendency of
African markets and population. Pricing of the product will be playing a key role in the effective
marketing and pursuing the targetted customer base. Formulated business plan for putting foot in
the new market can become more effective if placing and promotion of the products are done in
unique way that can flourish the awareness about the brand entry. Trendy promoting activity can
consider the social media marketing techniques which is currently one of the most popular
method of advertising.
Challenges in the international markets
 Slow growth in developed markets

The major issue faced by the global business is the slow growth rate in the developed
countries as the market is tight and the demands of the customer are already fulfilled and there
are very fewer aspects of growth is left. There is very low rate of changing demands of the
customers.
 Declining growth rates in emerging markets
The emerging and untapped markets are also growing at a slower pace in comparison to
the prior growth it has shown (Dawei and et.al., 2019). This becomes challenging for the
company as both the developed and emerging markets are having low growth opportunities.
Although, the developing markets have higher rate of growth if compared to the developed ones.
 Innovation and competence
Innovative mindset of business and entrepreneur has led the market towards changing
preferences of the customer due to the differentiated products and services. Continuous
innovation in the field can be a threat to the company as the new products may tend to divert the
preference of customers towards them.
Opportunity provided by international markets
 Untapped markets
The diversified global markets provide opportunity to grow in the region where no
company has majorly focused on. These areas may provide the company unexpected profits in
the region with the least competition. The African markets will provide a great business to the
organization as there is a lower presence of multinational firms and organization which can be
positive point for the organization (Li and et.al., 2020). The competition faced by the company
will be very low and it may lead to high bargaining power for the company. This will help them
grow in that market and gain awareness and reputation very easily and the customer base can be
attracted with minimum efforts. The process of investment in these countries can be done with
proper business plan which will help them to understand the customer base deeply and the
organization can gain unimaginable success in the region.

Criteria for entering global markets
Before entering the global market company should determine the feasibility in the region
through analysing different criteria. Criteria that can be determined in the selection process can
include:
 Environment
The factors surrounding the business activities in the region can be analysed deeply to
determine the future effects of these factors on the company that can harm or benefit the
operations of the company in the market. Analyses of these factors will reduce the risk of failures
and losses in the expansion activity.
 Market
Demand and supply in the desired market can be analysed with considering different
factors that can provide the company an area to grow and expand (Brenes, Marín-Raventós and
López, 2019). This market criteria is one of the most important aspect in determination of the
region of expansion because it focuses on major and minor aspects of the market. The customer
behaviour has to be analysed to know the demand and bargaining power of the customers.
 Competitor
The sustainability of the company is based on the competitive goods in the region that
can effect the sale of the company and which forces a business organization to work upon their
strategies. Areas with low competitive tendency can be pursued by the company so that they can
survive in the market without competing with major rivals. This is a very necessary aspect
especially in the times of expansion where the company is focusing on a new journey.
 Consumer expectation and needs
Research on the customer wants can be done so that the products and services that will be
provided can be altered with the needs of the customer (Putilov, Timokhin and Pimenova,
2020). This can provide more feasibility to the offering of the company because the products will
be developed in order to gain relevance with the customer preferences. This analyses can help
them to serve customer in their preferable way for providing the customers with best experience.

Pros and cons of different market entry strategies
To enter the market, proper strategies has to be followed for growth in the area by the
company for effective operating activity. Some of the methods that can be suitable for the
company are discussed below.
 Partnering
This method of expansion focus on making deals with the already established firms in the
market who have a sufficient knowledge of the region. Focus of this strategy is on making
alliance with the existing players in the field (Morgan, Feng and Whitler, 2018). The benefit of
this entry strategy is that it reduces the risk of failure as the experience of the partners supports
the organization to not stumble in the initial period. The negative aspect of this strategy can be
evaluated as the liabilities of the partners indirectly becomes a burden for the firm too and if the
reputation of the partnered firm is not good then it may impact the goodwill of the organization.
 Franchising
This strategy works well with the business models which has higher opportunities of
growth in almost every region (Samiee and Chirapanda, 2019). ASDA is one of those companies
because food and grocery items are commodities which are always in demand irrespective of the
situation. The negative aspect of this type of method is restricted operating methods that rigids
the productivity of the outlet.
 Direct Exporting
Direct exporting refers to the method of selling the goods directly in the market without
interference or collaboration with any business (Tien, Phu and Chi, 2019). This strategy can
benefit the organization for reaching higher customer base but it increases the risk of failure as
the company lacks experience in the field.
Market evaluation
Market analysis criteria that has to be determined by the management of ASDA before entering
new international markets:
 Purpose
The market can be perfectly evaluated if the analysis taken place has been considering the
purpose of the evaluation as a central point (Samiee, 2020). Purpose of the evaluation puts the
post evaluation strategies in accurate direction for the effective operations of the firm.

 Industrial sector
The position or state of the industry in which ASDA wants to expand i.e. the grocery
retailing sector has to be analysed deeply to know its current position. This can help the firm to
determine a tentative future of the sector and the opportunities that will be available.
 Customers and Competition
Customer can be targetted on the basis of the products catered by the brand to downsize
the market and focus on the most profitable segment (Akter and et.al., 2021). Customer base has
to be determined by the firm so that efforts and assets of the company doesn't get wasted on the
customers with unlikely preference in accordance with the products. Operating techniques of
other companies which are catering the same customer base can be analysed firmly to prepare
effective strategies to sideline the competitors and attract the customers. Although the existing
competitors gives a tough competition to the firm but the threat of new entrant should also be
considered in the evaluation process.
 Data analysis
Additional data apart from these can also be included in the process to determine the
opportunities and threats in the market (Donthu and et.al., 2021). Process can include various
factors that can effect the profitability and survival of the firm. The deeper analyses of every
factor can help the company to prepare plans according to these data so that different situations
can be tackled.
Recommendation
The above evaluation has shown the criteria that can be considered while evaluating the
markets. The evaluation has recommended that entering the untapped markets of South Africa is
a great concept that can give unexpected profits to the company but the risk of failure is also high
because of the economic conditions and other factors. Effective risk management in the company
can reduce the threat of unprofitably and eventual failures. Idea of expansion can be pursued by
following the direction given by accurate analysis of every factor in the industry in the form of
effective and efficient strategical process and implementation.

CONCLUSION
The above report has concluded the various aspects that can be considered while entering the
new international markets of South Africa. With the consideration of these aspects the company
can attain higher survival chances in the new market and attain profitability. Criteria for
evaluating these markets has been mentioned in the report which can increase the chances of
success of the strategies that will be prepared accordingly. Further on the recommendation has
been mentioned for the management for the effective expansion techniques.

REFERENCES
Books and journals
Akter, S. and et.al., 2021. Big data-driven strategic orientation in international marketing.
International Marketing Review.
Brenes, A., Marín-Raventós, G. and López, G., 2019. Improving packaging design using virtual
reality in the market research process. Multidisciplinary digital publishing institute
proceedings. 31(1). p.12.
Dawei, S. and et.al., 2019. A comprehensive evaluation model of power market operation
efficiency based on extension cloud theory. Energy Procedia. 156. pp.302-309.
Donthu, N. and et.al., 2021. A bibliometric review of International Marketing Review (IMR):
past, present, and future. International Marketing Review.
Li, H. and et.al., 2020. Evaluating the regulatory environment of overseas electric power market
based on a hybrid evaluation model. International Journal of Fuzzy Systems. 22(1).
pp.138-155.
Morgan, N.A., Feng, H. and Whitler, K.A., 2018. Marketing capabilities in international
marketing. Journal of International Marketing. 26(1). pp.61-95.
Putilov, A., Timokhin, D. and Pimenova, V., 2020. Adaptation of the educational process to the
requirements of the global nuclear market according the concept of «economic cross»
through its digitalization. Procedia Computer Science. 169. pp.452-457.
Samiee, S. and Chirapanda, S., 2019. International marketing strategy in emerging-market
exporting firms. Journal of International Marketing. 27(1). pp.20-37.
Samiee, S., 2020. International marketing and the internet: a research overview and the path
forward. International Marketing Review.
Tien, N.H., Phu, P.P. and Chi, D.T.P., 2019. The role of international marketing in international
business strategy. International journal of research in marketing management and
sales. 1(2). pp.134-138.
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