International Marketing Report: CafePod Company Expansion Strategy

This report analyzes CafePod's international marketing strategies, focusing on its expansion into the Chinese market. It covers key concepts, including the scope and rationale for international marketing, and explores various market entry routes like direct and indirect methods, including alliance and channel partners. The report delves into the criteria for international market selection, such as labor costs, lifestyle, and growth potential, followed by a detailed analysis of the selection process. It also examines different market entry strategies, their advantages, and disadvantages. Furthermore, the report discusses the arguments in the international versus local marketing debate and the adaptation of the 4Ps (product, price, place, promotion) across international contexts. Finally, it evaluates various international marketing approaches and compares home versus international orientation, outlining the implications of each approach.

International
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1. Scope and Key concepts of international marketing.............................................................4
P2. Explain the rationale for it to want to market internationally and various routes to market
the organisation...........................................................................................................................5
TASK 2............................................................................................................................................6
P3. Key criteria and selection process to use when considering to enter in international market
.....................................................................................................................................................6
P4. Different strategics of market entry with their advantages and disadvantages.....................7
TASK 3............................................................................................................................................8
P5. Overview of the key arguments in international versus local debate...................................8
P6. Product, price, place and promotional distribution approach differs in a variety of
international contexts..................................................................................................................9
TASK 4..........................................................................................................................................10
P7. Analyse the various international marketing approaches...................................................10
P8. Compare home and international orientation and ways to assess competitors, outlining the
implications of each approach...................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing is a process and activity of selling, promoting and delivering the goods and
services which are manufactured by a company according to their customer requirements and
their taste & preferences with the purpose of providing satisfaction to them. International
marketing is described as the performance of business activities which are designed by the
company to plan, price, promote and direct the flow of a company's product and services to its
target audiences and users in more than one nation for a profit (Baker and Saren, 2016). This
assignment is based on CafePod Coffee company which operate its business in UK and
headquartered in London. It was founded in 2011 by Peter Grainger and deals in soft drinks
industry. This report will discuss about the scope and key concepts of international marketing.
Further, will define about the key criteria and selection process to consider to enter in
international market and different market entry strategies. 4Ps of marketing, marketing
approaches and comparison among home and international orientation will explain.
TASK 1
Scope and Key concepts of international marketing
Concepts of marketing
International marketing is the process of operating business in term of selling purchasing,
promoting transferring the products and services of the company so that it can help in its
business growth, success and development. The concept of international marketing is finding and
satisfying the needs and demands of international target audiences better than the competition
both domestic and global. It is the process of coordinating marketing activities within the
constraints of the international atmosphere. When a company operate its business globally then

the main objective of the firm is to provide satisfaction to their needs and wants by providing
them goods and services according to them. CofePod is a soft drinks small company which
operate its business in only UK. But now the management of the company is decided to expand
their business internationality by manufacturing new product different flavours healthy shakes.
The administration decided to expand its business in China because in this nation people prefer
health drinks in comparison to others (Bowie and et., al., 2016). The concepts of expanding
business this place is to make maximization in the growth of the firm in term increasing
profitability, sales and productivity etc.
Scope of international marketing
Now these days marketing firms are not restricted to operate the business to their national
borders. New markets are springing forth in emerging economies like China, Indonesia, Brazil
and many other economies all over the world. So global market provide opportunities with the
purpose of expansion of economies with the help of increasing buying behaviour and with the
assistance of changing consumer taste and preferences (Demangeot, Broderick and Craig, 2015).
If CofePod operate its business globally then it has large scope to export or deliver its products
and services internationally which help in maximizing the sales of the company and provide
various competitive advantages. With the assistance of international marketing, this firm can
purchase raw material from globally for the production of the production of the products and
services which are offered by it. It provide wide scope fro the growth and success of the firm to
maximize its sales, profitability, productivity and increase customer base. There are large scope
to a firm when it operate its business internationally because it can operate its business in number
of nations and which help in maximizing the customer base and increase the profit ratio or
productivity. There are large scope when a company operate its business globally and
internationally such as:
 If the company operate its business international level and offer products and services as
per customers needs and demands then they it can growth and success in the business by
enhancing productivity, profitability and customer base.
 During the time of global expansion, the firm aware with the different trends, needs,
culture and market requirements. Then it can have the scope of manufacturing goods and
services as per consumers requirements. This will help in cacheing economies of scope.

Explain the rationale for it to want to market internationally and various routes to market the
organisation
The major purpose of this company is firm is operate its business internationally to make
growth, enhance business size and earning profit. The administration of CafePod want to expand
its business so that it can offer its existing and new healthy shakes products to its global target
audiences so that they can provide satisfaction to their needs. Another motive regarding business
expansion is to earn profit to improve economic condition of the company and gain competitive
advantages from the international market. The rationale for operating business internationally is
that if the organisations run their business in global market then they can get international
customer, rival's benefits and gain more profit margins in their business by manufacturing goods
as per international market demand. There are several reasons behind operating the business
globally. Some of them are mentioned in context of CafePod are here:
 The reason can be operating the business internationality is that if the company provide
products as per the requirement of international customers then the firm can maximize
the sales in term of enhancing productivity.
 Another reason can be maintain good political relation in context of business. Because
when a company operate its business internationally then it follow different rules and
regulation of various nations which can be beneficial for the company in order to enter in
to new market.
There are several ways and routes through which this firm can market and expand its
business at global marketplace. They are mentioned as below:
Direct route- The management of the company can use those ways through which it can make
direct contracts with the people in global market with purpose of selling goods and services to
them. The administration of respective company can use several channels like offering, sales
representatives, websites deliveries, conducting exhibitions, distributing the mail order
catalogues to make direct contact with their target audiences. It help in creating a good impact
and retain customers till long time period. These ways and routes are beneficial to the company
because with the help of them it can make direct relation and contact with the target audiences.
For example, Website is a direct route to the company to market and when a company make
innovation or add a new product in its product line then firstly it provide information about it on

the company website. So with the help of it, the management can provide information about its
products and services to its target audiences.
Indirect route- It consider the channels where the firm enters into a contract with third party and
hand over the responsibilities to influence behaviour of customer to them (Ghauri and et. al.,
2016). There are some channels which can be considered by CafePod, they are as follows:
Alliance partners- it indicates to group which are smaller in size but process the capacity
to advice respective firm towards the business initiatives which can be undertaken by the
company to impact and effective entry at marketplace. It is a market route which is beneficial to
the respective company because when the company operate its business internationally then it
can provide growth options, access to target markets and provide the knowledge & resource
sharing. Some time it can be affect the business in term of less efficient communication, poor
resource allocation and loss of control over essential issues like product quality, operating cost
etc.
Channel partners- It refer to those companies who have technical expertise to effect the
consumers mentality and make them to analyse the advantages of the products which are offered
by the company (Gillespie, 2015). The administration of CafePod can use these channels in form
of route and ways to market. This way to market can be also beneficial to CafePod in different
terms like saving the cost, time and customer convenience because due to distribution of the
products and services. But revenue loss, loss of communication control and loss of product
importance can be unfavourable for it.
Opportunities and challenges- When a company operate its business sin to international market
the it face various challenges and growth options. In context of CafePod, the administration can
also face some issue sand can gain growth options. Some challenges which can be faced by it,
can be unstable government, political restrictions, incompatibility of technical standard, tariffs
and other trade barriers etc. The opportunities which can be gain by the respective company in
international market can be maximization of the sales, enhance productivity, incrreasing
profitability and maximisation in customer base and various other growth options.

TASK 2
Key criteria and selection process to use when considering to enter in international market
During the time of entering in international market, the organization can consider various
criteria like growth rate, life style of people in that nation and others. In context of CafePod,
there are several criteria which can be considered by the management of the company to enter in
international market. In key criteria and selection process regarding a international market, the
company can consider some pints and they are defined as follows:
Cost of labour- In China, the cost of labour is low in comparison to UK, so the
administration of CafePod can considered this nation to expand its business and enter in
international market. This will be beneficial to the company to save its labour cost.
Life style of people- in China, people live simple life and healthy life in comparison to
others like UK. At that place people prefer liquid diets and healthy drinks in their meal and food.
So the administration of CafePod can get a wide range of growth opportunities. Because this
company want to expand its business with the help of its new flavoured healthy drinks which can
be liked by the population of this country. It will be beneficial to increase the sales, profitability
and enhance productivity of the firm.
Growth potential- It is an another criteria to select a market where a company can
operate its business effectively. If CafePod operate its business sin international market then it
can search the growth potential in the market in context of technologies, needs and demands of
customers, rules and regulations, skilled workforce and others.
Market selection is also play and important to enter the business of a company at
international level. The selection process of marking is as following in context of CafePod:
International marketing objectives- It is the first step of this process which refers that the
management of the company deigned objective before enter in the international marketing like
growth of the business, earning profit and satisfying customers needs etc.
Parameters for selection- It is the next step of this procedure within which the company
decide the parameter to chose the market (Hoppner and Griffith, 2015). The respective
organisation can set parameter to select market on the basis of availability of resources, global
environment, market condition, national authorities plans and policies, competition etc.
Short listing market- After analysing the parameters of selection, the management of the
company can shortlist the market on the basis of selected variables (Katsikeas and et. al., 2016).

In this phase, the administration can chose a market which can be beneficial to the company and
where the company can gain various competitive advantages.
Test marketing- After selecting the market, the administrator of the company test the
market by launching its products and services at marketplace. It assist the manufacturers in
assessing overall response of the customers from a particular market, after tested success, the
manufacturing can be undertaken on a mass scale.
Commercial production- It is the last step of this process in which once the product is
tested in the market, the firm go ahead with mas manufacturing, minor improvement. The
management of CafePod can produce large number of goods and services as per their consumer
demands and offer them to their customers.
Different strategics of market entry with their advantages and disadvantages
There are various evaluation criteria and market entry strategies some of them are
mentioned as follows:
Franchising- It is a form of business through which the owner of the company obtains
distribution through affiliated dealers. It can be a process of arrangement where a company
provide the rights to another firm to use its trademark or trade name as well as certain business
systems and procedures to manufacture and produce, promote and deliver products and services
as per certain specifications.
Advantages -It s beneficial to the management of CafePod because the firm can use this
strategy in market to enter its business and goods or services multinationally.
Disadvantages- The disadvantage of this strategy is that there are usually restrictions on
where the firm can operate business, sell products and purchase raw material.
Partnership- It refers to the process and activities of collaborating with a person and business
concern to make relationship with an area of market. It can be a process under which a company
can expand its business to sell its products and services or gaining competitive advantages. There
can be two or more than two companies, can be used by the firm to make partnership. Partnering
up is a comparatively unclear statement because it can be anything. A company can get a partner
in a foreign nation to simply assist with marketing or just as invested in all facets of the business
according to partnership business (Kotler and et. al., 2015). The management of CafPod can use
this way to market and make expansion in its business concern by making partnership with other
reputed or well known firm in another nation.

Advantages -It is beneficial to maximize the business of the company and increasing the
sales because the partnership company is well known in the nation and people are familiar with it
(Kotler and et. al., 2018). So it help in reducing promotional cost and maximizing the
profitability of the company.
Disadvantages- Disadvantage of partnership is that there are limited resources, instability
and restriction on transfer of interest.
Joint venture- It is a type of partnership but there are only two companies or people to make
partnership regarding their business. It can be an agreement of two companies through which
two organisation combine their marketing plan of action with the purpose and motive of
maximizing their market share and revenues. In context of CafePod, the administration of the
company can use this way to market its products or services, maximize their profits, enhance
productivity and increase profitability & customer base.
Advantages-It is beneficial to the company because it supply organisations with the
possibility to profit new capableness and expertness.
Disadvantages- The drawback of it is that it consume time and effort to develop the right
relationships with other business which can be challenging.
From the above information it can be summarised that partnership is the best option to
CafePod to market its business with the help of its products and services. It is beneficial because
the companies are well with which Cafepod make partnership so it help in making familiar with
the help of its products and services in easy manner.
Market evaluation criteria
There are several market evaluation criteria some of them are defined as follows:
Market size- It is the major tool which help in evaluating a market. The management of
the company and analyse that how many individuals are actively purchasing products and
services of the company? In which market areas the firm can operate its business.
Speed to market- It is another factor evaluate a market by the management of the
company. In it, the firm can monitor that how quickly the market will help in selling the goods
and services of the company.

TASK 3
Overview of the key arguments in international versus local debate
It is basically considered that international marketing is effective for organisations
because it help in providing growth options to maximize the sales, profit and revenue of the
company by offering its services to its target audiences by manufacturing goods and services a
per their needs and requirements. So that they can show their interest and retain with the firm till
long time period (Michaelidou and et. al., 2015). Effective quality of infrastructural and
abstraction facilities help in providing advantages to the entity in terms of increasing market
share and profit margins.
In order to it, local marketing lags behind international marketing as this tends to
deficiency the resources, raw materials, infrastructure as well as required technology to conduct
production in a manner that can furnish competitive advantages to the firm regarding
international competitors (Morschett, Schramm-Klein and Zentes, 2015). Local marketing is not
much preferable a the means to get attention of large customer base which is not reach in the to
the company in domestic nation.
Some of the population believe that local marketing do not provide benefits in
competitive market as the former is less decomposable and the entities are rather familiar with
the market scenario of domestic nation. The financial resources needed for establishing the name
and position of the firm in home country is much easier than while going global. Therefore, the
possibility of sustainability is high when the company is involved in local marketing. Regarding
it, international marketing is ascertained to be effective as the customer contact in global market
is hard to maintained. Because this owes to the presence of number of rivals who are always
waiting for a possibility to request the target audiences of a setted firm and minimise their market
growth and share also.
Product, price, place and promotional distribution approach differs in a variety of international
contexts
Marketing ix is the process of putting a right product at right place in right time so that
customer can take benefits and provide satisfaction to their needs and demands. 4P's of
marketing consist product, price place and promotion which are highly affected by the
international marketing in different ways like high competition, change in customers needs and

demands etc. Each country is unique in term of language, culture, value, belief, customers needs
& wants and others (Murphy, Laczniak and Harris, 2016). Regarding it, while operating the
business in China and other global markets, the marketing efforts like strategies, plans, products,
price, place and promotion etc. will be differ in context of home country.
4P's of Marketing London China & International
market
Product The entity offer pure, organic
and healthy drinks to serve the
needs and demands of target
audiences.
The product of CafePod can be
accepted according to
customer demographic,
packaging, requirement of taste
& preferences of the new
marketplace.
Price The pricing strategy which can
be use by the company was
high because the firm had
reinforced up its allegiant
consumer base over years
(Parry, 2016).
CafePod can use various
pricing strategies in its
business during the time of
internationalisation such as
penetration, competitive and
skimming pricing.
Place At present time, this company
used various promotional tools
and channels like TV, Internet,
social media and other to
provide information about the
innovation regarding its
products and services .
The management of this firm
can use several promotional
tools to promote its products
like social media, marketing
campaigns and others to attract
and getting attention of people
so that they can buy product.
Promotion Currently this firm offer
products and services in its
firm and current location.
In global market, the company
can use different option do
distributing products and
services like wholesalers,

retailers, online mode etc.
TASK 4
Analyse the various international marketing approaches
There are various marketing approaches which can be adopt by the management of
CafePod during the time of international marketing. Some of them are defined as below:
Multinational- These are the entities which have their outlets or offer facilities situated in
various nations whereas each and every location operates and functions in its manner. These kind
of entities have their offices and factories in several locations and destination but centralised
head office in that country where they coordinate international administration (Skarmeas, Zeriti
and Baltas, 2016). For example, McDonald's, KFC and other firms.
Global- It refers to those process outlets which spread their business across different
nations but they follow a uniform firm culture with consistent set of procedures that help in
facilitating an appropriate and adequate single international entity (Souchon and et. al., 2016).
These are those firm that operate their business in at least one country outside of its nation of
origin. For example, Apple, Starbucks and others which operate their business at global level.
Transnational- These are those kind of firm which are complex in nature and operate
considerable artefacts while organising business in more that one country. They do not
particularly offer consideration to any specific nation as their national place. For instant, Nestel
is the best example of it.
As per above defined information, it can be summarised that international approaches are
different and can be accept by the firm to make expansion in the business of the company at
global level.
Compare home and international orientation and ways to assess competitors, outlining the
implications of each approach
Home orientation is known as the better approach by which firms can make appropriate notice in
order to communicate every condition of market with employees at workplace. With the help of
this orientation scenario Cafe Pod firm can provide better goods and services successfully in
domestic countries as well as another countries (Skarmeas, Zeriti and Baltas, 2016). There are