Baker's Delight: Global Marketing Report and Market Selection

This report provides a comprehensive analysis of global marketing strategies, focusing on the expansion of Baker's Delight into the Sri Lankan market. It begins with an introduction to global marketing and summarizes the findings from Project 1, which assessed the viability of the Sri Lankan market. The report details the screening of market selection using the AUSTRADE rating model, comparing Sri Lanka's attractiveness and Baker's Delight's competitiveness. It explores alternative market entry strategies and the five stages of the overseas market selection process, ultimately recommending Sri Lanka as the preferred market. The report also examines the rationale for choosing Sri Lanka, considering the growth potential of the global and Sri Lankan bakery sectors, the high consumer demand for bakery items, and the country's developing economy. The report discusses the competitive landscape, including factors such as political stability, economic conditions, and marketing considerations. The report concludes with recommendations for market entry mode, target market, positioning strategy, and generic strategy for Baker's Delight in Sri Lanka.

GLOBAL
MARKETING

Table of Contents
1.0 Introduction to report.................................................................................................................3
2.0 Summaries from project 1..........................................................................................................3
3.0 Screening of market selection....................................................................................................4
3.1. The five stages of overseas market selection process...............................................................7
3.1.1. Reason to choose your country..............................................................................................8
3.2. Objectives.................................................................................................................................9
4.0 Alternative market entry strategies as a new company............................................................10
4.2. Market selection process.........................................................................................................11
Positioning.....................................................................................................................................12
4.2.1. Target market selection process through alternative entry modes to country of choice......12
4.4. Alternative generic strategies..................................................................................................13
5. Recommendations for preferred strategy for Country...............................................................13
5.1. Market entry mode..................................................................................................................14
5.2. Target market..........................................................................................................................14
5.3. Positioning strategy.................................................................................................................14
5.4. Generic strategy......................................................................................................................15
REFERENCES..............................................................................................................................16

1.0 Introduction to report
Global marketing can be referred to as the business practices and approaches that are
employed by an organisation as it intends to adjust and apply its marketing strategic course of
action upon a specific country (De Mooij, 2019). This is one of the most essential aspects that
needs to be taken into consideration while gaining entry into a new nation. In other words, it can
be said that global marketing is a wide concept that encompasses sale, creation and positioning
by way of promotion of products at an international scale. In this regard, it is usually seen that
companies carry out extensive market research before gaining entry into foreign market.
The present report is based upon Baker's Delight which is a well renowned and
established Australian franchise chain, having outlets spread across the confines of New Zealand
and Canada. This organisation intends to carry out expansion of its business activities within the
South-Asian market by gaining access into Sri Lankan bakery market. The report consists of
summary of Project 1, screening of market selection, overseas market selection procedure,
rationale for choosing specific nation. Also, it put light on organisational objectives, alternative
market entry strategies as a new company, target market selection process through alternative
entry modes and many more such strategies.
2.0 Summaries from project 1
The Project 1 was based upon global marketing which is regarded as a structural set of
activities and practices aimed at adjustment of strategies by a corporation with the sole motive of
adapting to the business scenario of that country. The project was based upon Baker's Delight,
an Australian organisation functioning within Australia and operating by way of franchise chain
within New Zealand as well as Canada. The project saw the decision undertaken by entity to gain
access into South-Asian market by choosing Sri Lanka as the target market. To ascertain the
viability of this market, extensive research was conducted within the project. This helped in
ascertainment of opportunities as well as challenges which prevail within the confines of Sri
Lankan market place. A number of strategic models such as PESTLE, Porter Five Force and
more were taken into use to gain knowledge of the macro environmental scenario. After the
extensive market research conducted upon Sri Lanka, it was acknowledged that the nation is not
much flexible when seen in terms to adaptation to technological advancements. Further, there is
also a price control policy enforced within Sri Lanka to save the economy. This is having a

massive impact upon the profitability of corporations pertaining to this country. Further, the
industry analysis revealed that extensive rivalry persists within bakery sector of Sri Lanka. Also,
the bargaining power of buyers is high which poses threat to the sustainability of companies
belonging to this region. To encounter this, one probable solution that was recognised was to
exercise cost control so as to bring down the overall cost of company. Yet another solution that
was proposed was to constantly examine and evaluate the strategies adopted by rivals to come up
with better course of action. Irrespective of the challenges identified to be associated with
carrying out operations in Sri Lanka, the project reached to the conclusion that the place holds
great potential for the growth and development of Baker's Delight. Some of the opportunities
related to this place are low bargaining power of suppliers (facilitating ease availability of raw
material). It was also determined that the county maintained high level of literacy rates which
imply easier employment of staff. Lastly, the nation is well equipped in the context of FDI
implying easier availability of funds.
3.0 Screening of market selection
For the screening of market selection, AUSTRADE rating model is taken into use. This is
a framework whereby Australian Trade Commission created two grids which tends to compare
attractiveness of overseas market with the competitiveness of Australian company with a view to
ascertain the benefits of gaining entry into a certain market.
Elements to be rated (a): Market
CRITERIA AUSTRALIA SRI LANKA
Characteristics of the market 3 4
Competitive conditions 5 4
Financial and economic conditions 4 5
Legislative and socio-political conditions 3 3
Elements to be rated (b): Firm
Management characteristics 3 4
Marketing characteristics 4 5

Technology attributes 4 5
Production-related competencies 4 3
Rating Basis:-
1 = poor conditions
2 = nor poor nor average conditions
3 = average conditions
4 = above average conditions
5 = superior conditions
On the basis of analysis of above 2 tables, it can be seen that AUSTRADE rating model
depicts that Sri Lanka is an attractive market as it has an edge over Australia on a number of
parameters. By taking into account these aspects, Baker's Delight can feasibly gain entry into a
city of this nation and enhance its global market share as well as standing. Further, it can make
use of its goodwill within Australian market as a strategy to persuade the buyer behavioural
pattern of population of Colombo regarding the high quality bakery items offered by entity at
market place. The strategic location of Colombo will be used by the respective organisation to
build a loyal customer base in new market and to develop a positive brand image there.
Element Spain Denmark Sri Lanka
Domestic
issues
- High unemployment
rate
- High magnitude of
corruption
- Starting a business
- Getting electricity
- Registering property
- Paying Taxes
-Trading across the
geographical boundaries
- Constitutional Chaos
in politics
Macro
environmental
- Deforestation
- Air Pollution
- Land as well as water
pollution
- Soil degradation
- Vulnerability owing

issues - Desertification
- High inflation
- Employment crisis
- Tax fraud
- Lack of skilled and
competent labour force
to Climatic changes
- Political crisis
Competitive
environment
Huge competition owing
to globalisation, well
developed infrastructural
facilities and effective
corporate strategies
(Business environment in
Spain, 2019).
Massive competition
because of the digital
facilities available to
companies. Ranked #7 in
2017 IMD World
Competitiveness Ranking
(Denmark is the world’s
7th most competitive
country, 2019).
Restrictive trade
policies have limited
FDI within Sri Lanka
reducing the extent of
competitiveness by a
significant proportion.
Response to
marketing
activities
The people pertaining to
this nation love to buy
products that seem and
feels Spanish.
Irrespective of the
extensive marketing
strategies and practices
adopted by firms,
population of Spain do
not make a purchase for
products that seem
English or American to
them (Marketing to The
Spanish Consumer,
2019).
Out of home advertising
and tailored marketing
approach adopted by
entities can gain the
attention of Danes. Also,
it is acknowledged that
Danish people have a
special likelihood
towards Japanese culture
and thus towards all the
brands, products and
services than follow
Japan's lifestyle
(Tailored marketing in
Denmark: localization,
2019).
The people of Sri
Lanka are
acknowledged to be
inquisitive. They are
excited about trying out
new products and
services and thus even
the most effective
marketing strategies of
firms are at times not
able to retain
consumers for a long
term.
Firms
objectives
Hereby, the companies
aim at launching
Hereby, the firms intend
to adopt tailored
Here, the corporations
target at launching new

products which have an
inherent sense of Spain in
it as the population of
this country is highly
fond of its own culture.
marketing approach so as
to successfully gain the
attention of population.
products at rapid
intervals as population
of this nation is
inquisitive and prefer to
buy new products every
single time.
On the basis of above tabular discussion, the knowledge about the various aspects of all
the 3 potential countries has been gained. Through this, it has been acknowledged that even
though the political atmosphere of Sri Lanka is not favourable, yet it is a strategic location
equipped with excellent infrastructural, technological, communication, logistics and supply chain
facilities. Also, it has been analysed that companies do not need to invest a heavy sum in
advertising and marketing for ensuring its long term sustainability in this market, they just have
to introduce new products at regular intervals with value addition.
3.1. The five stages of overseas market selection process

(Source: Five stages of overseas market selection process, 2019)
While carrying out overseas market selection, there are 5 stages which have to be
effectively executed by the firm in order to identify a potential and profitable market for business
growth and development. These stages are discussed as follows:-
Domestic regulations and management preferences: The first phase of this model
illustrates that the domestic regulations of all the potential countries should be evaluated with a
view to ascertain the scope of operations for company in future period of time. Post this
assessment, some markets are eliminated which do not fit properly into the criteria (De Mooij,
2019).
Initial entry assessment: The next stage is associated with the assessment of macro
environmental factors to gain knowledge of the adversities linked to several markets which make
them unsuitable for the respective organisation to facilitate expansion overseas. Here, some
markets are eliminated and the remaining ones proceed to the next phase.
Illustration 1: Five stages of overseas market selection process

Competitive environment: This stage of overseas market selection process pertains to the
analysis of competitiveness prevailing within the shortlisted countries to gain knowledge of the
scope for growth and development of company. Hereby also, few markets are eliminated and the
remaining ones get to the next stage of this process (Accenture Global Services Ltd, 2019).
Market responsiveness: This phase is associated with the examination of response of
customers towards the marketing activities and processes executed by firms. After the execution
of this stage, a number of markets are eliminated and only 2 or 3 choices reach the last stage of
this process.
Internal Trade off analysis: Hereby, some overseas markets are acknowledged to be no
longer attractive because of the extent to which resources need to be committed and changes
need to be made to existing company's resources.
Post the conduction of this analysis, Baker's Delight analysed that Sri Lanka will be the
most suitable market for the company as this successfully met majority of the criteria of overseas
market selection for the entity.
3.1.1. Reason to choose your country
The country chosen by Baker's Delight for expansion is Sri Lanka. This place has been
selected owing to a number of reasons. The global bakery sector is enhancing at a quick rate and
is further foreseen to reach at 7% by the upcoming 5 years (Rather, 2019). Looking upon the
global progress, the Sri Lankan marketplace is also advancing rapidly. In response to this, the
market share of bakery items has inflated to reach 14.9%. This tends to render lucrative
opportunities for companies pertaining to this country to gain advantage of this and facilitate
business growth and development. Due to this, a large number of investors aim at investing in
this country and gaining access to serve the population in order to inflate their organisational
market share across the globe. Sri Lanka consists of a vast majority of population which has
likelihood towards the bakery items offered at market place. This is primarily due to the demand
of bakery products being higher among customer, thereby enabling businesses to get easy
acceptance within the market. In addition to this, the market potential rate of Sri Lanka in terms
of bakery product is around 0.15% (Baena, 2019).
Sri Lanka is regarded to be a developing country which has high growth rate for Bakery
sector. Further, looking upon the enhancing interest of people belonging to this nation to avail
the bakery items reveal that the decision undertaken by Baker's Delight to select this market is

appropriate. Sri Lanka has a population of approximately 21.3 million which enhances the scope
for the respective organisation to persuade the behaviour of people here and make them purchase
the products offered by Baker's Delight in market place (Grier and et. al., 2019). Further, it is
acknowledged that the majority proportion of the population of Sri Lanka falls under the section
of working class. This inflates the chances of survival, growth and development of Baker's
Delight within the confines of the country.
Some other factors that can be taken into account by Baker's Delight while gaining access
into Colombo, Sri Lanka include the high rate of GDP of this nation. This provides assistance in
inflating the per capita income of people so that they can afford to buy the products offered by
Baker's Delight at market place. The economic conditions of the selected country are positive
and effective owing to the aid provided by World Bank (Hoque and Awang, 2019). With the
assistance from World Bank, government of Sri Lanka facilitates fiscal reforms, thereby
enhancing the financial management as well as inflating the community support. Such kind of
opportunities can be availed by Baker's Delight to establish a positive brand image among the
population of Sri Lanka and develop a large base of loyal customer among the new market.
3.2. Objectives
Mission: “To provide best quality bakery items to the people of Sri Lanka to derive
maximum satisfaction from them.”
In relation to gaining access into Sri Lanka, Baker's Delight has stipulated certain key
objectives by making use of SMART criteria. This will make it easy for the entity to measure
results and to recognise the deviation post the elapse of stipulated course of time for which
objectives have been set.
Financial Objectives:
“To enhance the profits of corporation by 6.5% within a time span of 6 months after
gaining entry into Sri Lanka through extensive marketing (ABOUT BAKERS DELIGHT, 2019).”
“To increase the revenues of company by 12% within 1 year of gaining access into Sri
Lanka through social media marketing.”
Market Share Objectives:
“To inflate the market share of company across the globe by 6% by the end of 1 year
through digital marketing.”

4.0 Alternative market entry strategies as a new company
Market Entry
Strategy
Advantage Disadvantage Justification
Franchising Low financial risks Limited market
opportunities
available to
company
Can be used by
company to take
advantage of low
financial risks
Licensing Provides knowledge
of local markets
(Blüher, 2019)
Conflicts with
licensee
Can be use to gain
knowledge about the
local market
Joint ventures Least number of
statutory compliances
Difficulty while
finding the party to
enter into JV
(Spence, 2019)
Can be used for
availing the benefit of
lower legal
compliances
4.2. Market selection process
For the effective selection of market for expansion of business operations of Baker's
Delight, the management of this corporation has conducted market segmentation and positioning
by making use of STP model. This is a strategic planning process aimed at placing the offerings
of entity among the target audience selected by company.
Segmentation
Baker's Delight is an established bakery franchise chain of Australia which intends to
carry out expansion into a foreign country. In this regard, it is important for the company to
identify a relevant and effective market whereby it can offer its bakery items to enhance its
global market share and positioning. Looking upon this, it is essential for the firm to carry out
market segmentation (Sahaf, 2019). This can be referred to as the process whereby an entity
divides the market into small segments that are profitable for company and its offerings. In this
relation, the segmentation done by Baker's Delight is discussed as follows:-

Demographical Segmentation: Hereby, segmentation of market is done on the basis of
demographic aspects such as age, gender, income levels and many more (Steenkamp, 2019).
Behavioural Segmentation: As the name suggests, hereby, the market segmentation
takes place as per the behavioural pattern of people pertaining to a certain nation.
Psychographic Segmentation: Hereby, the market is segmented as per the attitude as
well as consumer lifestyles.
Geographical Segmentation: Hereby, the market is segmented in accordance with the
geographical location of people. With reference to Baker's Delight, the market which the entity
would be targetting will be divided on the basis of geographies only and is ascertained to be
Colombo, the biggest city of Sri Lanka as well as the commercial capital of the country (Uysal
and et. al., 2019). The rationale for market segmentation on the basis of this aspect is that this
location holds the largest population of Sri Lanka and would thus serve as a strategic place for
inflating the existing market positioning and global market share of Baker's Delight.
Targeting
Post market segmentation, the firm would be required to target a specific market place
with which all the marketing strategies of the entity would be aligned. This procedure is referred
as targeting, which requires the organisation to appropriately target a specific group of customers
based on the segmentation done above. Thus, to enhance the scope of selling for Baker’s Delight,
the company would be targeting the population of Colombo who belong to millennial section of
society as they have likelihood towards consumption of bakery items. Additionally, the targeted
group would also be inclusive of individual who tends to live a healthy lifestyle.
Positioning
This is recognised as the third aspect of this model. This strategy is employed by
companies to effectively position (place) their products among target audience. There are a
number of ways with the help of which an entity can place their products amidst people,
inclusive of social media, digital marketing, extensive marketing campaigns and many more.
Baker’s Delight being a famous brand within the confines of Australia intends to reach to new
foreign country by specifically targeting one city, Colombo. Post the targeting, the next stage is
to position the organisational offerings among the target audience (Saura and et. al., 2019). This
will be done by entity with respect to Colombo by way of social media and digital marketing
strategies. With these marketing strategies, the entity will be successful in creating awareness