International Marketing Report: CafePod Coffee Co. Business Strategy

This report provides a comprehensive analysis of international marketing strategies for CafePod Coffee Co., focusing on its potential expansion into Asian markets. It begins with an introduction to the company and its current market, followed by a discussion of international marketing sources and their differences from local marketing. The report then delves into the scope and key concepts of international marketing, explaining organizational rationality and exploring various international marketing routes, recommending the direct route. It further examines market entry criteria, selection processes, and strategies, along with a comparison of global and local marketing approaches, including product, pricing, promotion, and distribution. The report also investigates international and home orientations and ways to assess competitors. Finally, it offers conclusions and recommendations based on the marketing mix and organizational structure, providing valuable insights for CafePod Coffee Co.'s international ventures.

International Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Introduction about a company and its current market............................................................1
Range of sources of international marketing and shows differences to local marketing.......1
LO 1.................................................................................................................................................2
Scope and key concepts of international marketing...............................................................2
Explain the organizational rationality to market internationally............................................3
Several international marketing routes and recommend any one best...................................4
LO 2.................................................................................................................................................4
Describe the criteria and selection process which a company should use when considering that
international market to enter...................................................................................................4
Market entry strategies...........................................................................................................6
Conclusion and Recommendation..........................................................................................7
LO 3.................................................................................................................................................7
Differences between global and local marketing...................................................................7
Key arguments in relation to local v/s global marketing........................................................8
Investigation of product, pricing, promotion and distribution approaches operates..............8
LO 4.................................................................................................................................................9
International marketing approaches.......................................................................................9
Home v/s international orientation along with ways to assess competitors.........................10
Conclusion and recommendations based on marketing mix and structure of organisation. 11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
International marketing refers to the business performance that are designed and
formulated plan related to product, price, place as well as promotion in order to satisfied the
needs and wants of consumers across the cross borders (Kraus, 2016). For moves a business
activity at a global level a marketer plays an important role as they are treated as a solution
oriented professionals who provides better approaches as well as ways to market products and
services to other countries. This report is based on the CafePod Coffee Co. which is an
independent coffee company that is based in South London and it is started on a simple idea like
make strong and exciting coffee for adventurous. The manager of CafePod Coffee Co. is
thinking to expands their businesses in Asian countries so the manager want to design a report
that includes several elements related to the international marketing which is differ from local
marketing. In this also discuss the scope, rationality and routes that are used by marketers to
enter at international level. In addition, study the key arguments and differences between global
and local debates and use product, price, place and promotion approach. Also, compare
international and home orientation and ways to assess competitors.
MAIN BODY
Introduction about a company and its current market.
CafePod Coffee Co. considered as an independent coffee company that is based in South
London. It was founded by two friends of South African which is Peter Grainger and Brent
Hadfield through a mutual love of strong and exciting coffee with a same feeling of experience
of coffee making at home lacked quality, innovation and excitement. They have grown CafePod
to be UK's 7th largest roast and ground coffee brand with a strong ambition is to become UK's
number 1 coffee brand in next five years (CafePod Nespresso Compatible Coffee, 2019).
Range of sources of international marketing and shows differences to local marketing.
As per the view of Ghauri and et. al., 2016 International marketing refers to a process
which is planned and organized in a well manner that will helps in creating a more awareness
towards the company's presence within the specific area. For this purpose a company use
effective tools and techniques in order to use creative marketing practices and styles.
According to the Demangeot, Broderick and Craig, 2015 International marketing defines
as a procedures through with people came to understand the several products and services of
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organizations that are present at global level. It is required a clear understanding of people
towards the norms as well as ethics that has to be followed by managers at a time when they
market their products and services.
The manager of CafePod Coffee Co. want to operates their business in Asian countries so
they needs to consider ethics, norms and values in order to maintain a positive image in the
customer's mind. In order to expands successfully a co founder needs relevant and detail
understanding about all aspects that has to be considered. When people are more attracted
towards the advertisements of a company's products then there will be a chance of increasing the
sales of CafePod Coffee Co.
Differences:
Local and international marketing are differ from each other as local marketing defines as
a planning and conducting marketing activities within the particular boundaries. At national
level, Managers required to know about trends of local conditions and it is easily manageable as
compared to international (Kotler, 2018). It is considered as a significant role in order to get
feedback from their local customers as the needs and wants of target market gets changed, so a
manager of CafePod Coffee have to identify the feedback in Asian countries. Local marketing
needs less finance whereas international marketing requires huge funds as they required creative
advertisement and promotional strategies. In addition, at local market company can be
communicated at their stores and outlets but at international level several local competitors are
also present which will hard to build a positive image in the new markets customers.
LO 1
Scope and key concepts of international marketing.
CafePod Coffee operates in local UK and the founder of an organization thinks to
operates in Asian countries as they need to understand the scope of international marketing in
order to get benefits (What is the Scope of International Marketing?, 2019). The scope of
international marketing of CafePod Coffee Co. are as follows: Third party location: It provides a scope of enter into a new country as all countries have
their own rules and legislation regarding trade mechanism as some countries can not
trade with others so CafePod have to enter into Asian countries.
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 Exports and imports: There are scope of trading their goods and services with other
countries as they buy or sale. The manager of CafePod Coffee requires to operates across
borders through which the target market of Asian countries can be served with high
quality of products.
There are several difference between local and international marketing that has to be examined
by manager of CafePod Coffee as it will helps in implementing appropriate policies and practices
(Basic Global Marketing Concepts, 2019). Concept of international marketing are considered as
follows: International business: There are huge amount of money requires for import and export
duties so a company should prefer international business as a best option. The company
CafePod Coffee can operates their businesses in many countries along with the single
unit consideration.
 Export marketing: It is defines as a way through which an organisation operates their
business beyond geographical location by seeking clients to connect them effectively.
With the help of this a company is able to operates and performed at international level
with the clear understanding as well as taking sponsorship from other enterprises.
Explain the organizational rationality to market internationally.
CafePod Coffee is an organisation that facilitates strong and better coffee as well as they
thinks that making great coffee is about the consideration, care and craft that are used by them at
every stages. It situated in South London which is their local market in UK so the company have
good brand value as well as thinks to expands in Asian countries (Michaelidou, 2015). In order
to expansion a manager needs to understand whole market and conditions systematically that
assist in proper communication to their customers that are necessary to effective expansion of an
organisation. Several strategies and practices are used by the company to satisfied their potential
stakeholders as well as it helps in increasing the CafePod Coffee sales and profitability.
Entering into international marketing shows several benefits like has a wide scope to
grow, diversification businesses successfully, create competition along with local competitors
and so on. If CafePod Coffee gets many opportunities for growing its business operation then it
positively influence the financial conditions and market shares of company as well as
stakeholders are also satisfied. When a company operates internationally the the country's
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gvernment also get benefited as good relations between countries and increase the scope for
business for other companies.
Several international marketing routes and recommend any one best.
While a business operates internationally or in global marketplace it required a specific
route so as to get a clear directions. This will helps CafePod Coffee to operates in Asian
countries as authentic and relevant manner. Here, some ethical considerations are that has to be
followed by the marketer in order to define market trends that are available or considered. This
will assists in developing a positive brand image in a new market and successfully expands in
new geographical location (Morschett, 2015). There are basically two way for enter into
international market such as direct and indirect that can be considered as follows: Direct routes: This considered as a way in which manager of CafePod Coffee Co. can
instantly interact with their customers as well as aware them properly towards the
products and services that a company offers. This communication is possible with
catalogues, printing as well as sales personnel that will helps in interacting with target
market as a result they can ask towards the offerings quality at a same time.
 Indirect route: This is the way in which there is no direct relations among CafePod
Coffee and its customers as they are connected with the interference of a third party. The
third person have full understanding and knowledge towards the products and services
that are required by customers in order to satisfy them as well as they charge an amount
of commission over sales volume (Hoppner, 2015). This channel involves partners,
integrator etc.
From the above mention routes it clearly shows that direct route is best because as there
is a direct interaction between customers and organizations as it leads in identifying exact
demand of customers as well as it is easy and simple to implement the changes according to the
market situations. This will leads in CafePod Coffee's growth and development.
Opportunities and challenges of going international:
Opportunities New revenue potential: While operating at global level, there is fresh scope of operating
a business. It is simple for the managers of CafePod Coffee to get high sales and revenue.
 Greater access to talent: While operation business at international level, it will be simple
for managers of CafePod Coffee to take new skills and talent. They also came to
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experience about new culture through which they can make well-known relations with
them and increase sales.
Challenges High custom duties: While operating at international level, there are few tax duties that
has to be considered by managers of CafePod Coffee under judicial consideration. This
forms product costly as well as sometimes customers does not prefers to buy it.
 Currency exchange: There is variation in currency rates due to which commercial
activities does not become affected. Cost as well as price of product will be unclear due
to which earnings might affected and it is not simple to contend with local brands that are
serving at lower price.
LO 2
Describe the criteria and selection process which a company should use when considering that
international market to enter.
As a dynamic external environment, it is not easy for CafePod Coffee to operates a
business in Asian countries or in international market. So, there is essential to examine as well as
select appropriate way by CafePod Coffee in order to understand it and get over from it in an
effective and efficient manner (Rosson, 2016). When a company situated their businesses in
local nation then they have positive as well as flexible workplace culture that helps in accepting
challenges by employees that are arises in businesses. Whereas, for selecting an international
market here a range of criteria that are as follows: Proper infrastructure: If a manager of CafePod Coffee Co. thinks to expands their
business operations in Asian countries then they must required to better infrastructure
through which premise and location can be planned to operates a business. It considered
as a major factor that helps in running businesses successfully as well as manage and
organised in a well defined manner by a company's manager. Changes in legal laws: Many legal obligations and legislation that are presented in all
countries according to their environment and market conditions which includes taxes,
employment laws and so on. This is required to be followed by CafePod Coffee as they
helps in providing specific and complete information towards the task completion. If
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these are not followed successfully then they will be penalized and it results in decrease
their brand image (Souchon, 2016).
 Resource availability: Several resources are required in order to operates an operation in
new location as financial, humans as well as technological which will helps in performing
activities in an effective and systematic way. Labour cost must be need to cheap as they
can recruit for high position in international marketplace.
There are also a specific selection process that are considered as follows: Setting objectives and aims: It is the first step in which a manager of CafePod Coffee
have to set clear aims and objectives in order to expands their businesses at international
market. This will helps in increasing the sales as well as profits also. Evaluate alternative options: After setting aims it is essential to examine the different
operations in which business can be set up. Through which several choices can be
examined appropriately. Preliminary screening: After evaluating many options this step has to be required as it is
a way through which unnecessary options gets neglected as well as provides a easy sort
of different options. Chose best alternative: It shows a clear option for CafePod Coffee which is best in order
to that a manager needs to understand about what has to be done to expands successfully
and make changes appropriately. Testing: It should be required that helps CafePod Coffee to check that the corrective
measures whether appropriate or not.
 Launching enterprise: After passing in above step manager of CafePod Coffee can
successfully launch their businesses in Asian countries.
Market entry strategies.
While expanding international level it is essential for CafePod Coffee manager to
determine the sources of operations and easily examine the ways through which a company can
enter into a new marketplace (Gillespie, 2015). There are several forms like partnership, joint
venture, collaboration, licensing as well as franchising through which an organization can
expands its business operations successfully. When a manager have proper and detailed
understanding towards the strategies along with its advantages as well as disadvantages which
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can helpful for manager of CafePod Coffee to select a best option of strategy. There are several
strategies in which some of that are described as follows: Partnership: It is an agreement between two companies among them one of the business
from a domestic place. So there is a need of some resources for executing operational
activities at global level. This will helps in combining the persons who have resources,
funds etc. like some people have resources and other have finance so they are performing
work together in order to achieve a business objectives. This is benefited for reducing
conflicts as according to the partnership deed a company shows a equal proportion of
profits, loss, risks, capital, income etc. for all partners. Whereas, it has disadvantage also
as sometimes there is dominance of its parties because local company have more
privileges as compared to others (Sun, 2016). Exports: It is a process through which CafePod Coffee can run their business in other
countries or at a global level through selling products and services across borders. The
company have some duties that has to be given by the CafePod Coffee's manager as their
coffee beans that are offered in other nations also. It has advantage is that products are
served without physical evidence in a particular nation with the help of that businesses
can operates in other countries as well. In addition it has disadvantage also as it charges
high taxation and duties which results in increasing the cost as well as price of a product.
 Franchising- It is related to the marketing concept that is utilized by an organisation for
the intention of expansion. In this, organisation facilitates rights to third party to work on
their behalf in another country. This is considered as the best way through which business
can grow but knowing proper policies related to with it. There is mandatory registration
in which franchisee have to pay some nominal proportion of their sales to CafePod
Coffee. Benefit of franchising is there is increase in market share because third party is
employed in company. There will great relations with other abroad suppliers because
franchisee is operative with brand name of franchiser. While disadvantage of franchising
is expensive approach for expansion. If services provided by franchisee is not befitting
then there is bad impression among clients about CafePod Coffee.
Conclusion and Recommendation.
It has been concluded from the above discussion that to operates business at global level
marketing plays an essential role in order to serve better and effective way. While expansion
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CafePod Coffee in Asian countries a company requires to use direct route of expansion as it
provides relevant information. The appropriate and most suitable strategy for CafePod Coffee to
enter into new country is partnership as it legally registered and clear the norms of both parties
and it is easy to understand the necessities of particular country through which businesses
expands properly (Surugiu, 2015). The company should know about the process which are helps
in performing their operations at international market by determining resources availability. This
will helps in reducing the risks and easy to expand. It is critically analyzed that marketing
strategies give benefits of expanding is the opportunity to recruit newly qualified team members
as well as explore company's products and services to a broader audience. Moreover, the
disadvantage of these strategies for the expansion is the shortage of funds which is required to
meet the expansion cost as well as the company may need to delegate the duties between various
locations that results in ineffective management.
LO 3
Differences between global and local marketing.
BASIS LOCAL MARKETING GLOBAL MARKETING
Size of
operations
The administration can shows work
in particular nation.
But in Global Marketing, organisation
can function in any country, there is no
trade obstacle.
Risk
assessment
The risk factors are very low in local
marketing.
The risk factors are very high in
Global Marketing
Financial
Resources
In local marketing, there is
obligation of fewer financial point
because operations can be
performed within nominal
geographical location.
In Global Marketing, demand of more
commercial enterprise resources, there
fore it is necessary to design sources
from where finances are elevated.
Complexity of
operations
In this market, there is no simplicity
occur because managers of CafePod
Coffee Co. knows the knowledge
close to trends and lawful parts.
In this marketing, complexity occur
because quondam employee don't
know knowledge about duties and
obligations.
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Consumer
perception
In this affirmative conceptualization
of consumers with respect to
products given by CafePod Coffee
Co. because they are agreed by
quality and loyal towards it so as the
company is focused towards loyality
and quality of products so the
affirmative conceptualization is
cafepod coffee co.
In international market,
conceptualization of consumer
variation because there are many other
author deals with in his sector and
sometimes due to indecent marketing
consumer cannot make positive brand.
So in this marketing many consumer
is deal with this organization because
of variations.
Example In order to marketing in local market
of UK, managers of CafePod Coffee
Co. they used broadcasting advertize,
signboard, etc. because are alert
about brands.
While at international level, there is
obligations of campaign, support etc.
with the help of which people get
knowledge.
Key arguments in relation to local v/s global marketing.
There are difference in working style of local as well as international market because of
working scope as it is hard to deal with them in appropriate manner because of lack in
knowledge. While these issues are arises at national level it can be easily solved or deal with it.
According to the author's views there is wide scope in international marketing along with time
and funds requirements increases. There is need to understand the external market in order to
fulfill the legal compliance of Asian countries (Tan, 2015). As it requires proper resources as
well as infrastructure that assist in performing operations successfully.
Investigation of product, pricing, promotion and distribution approaches operates
These are very helpful approaches for the organisation as because these all plays a
significant role in getting success and growth in international market. Identification of all these
components like product, price, place and promotion helps the organisation in carrying out all
their business activities in an effective or appropriate manner. Due to this, it is essential for the
business to consider these approaches while entering in new market so that they can analyse
changes which are taking place in local and international level. Here are describing all these
factors as per the national and international market:
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Element London, UK International Markets (Asian
Countries)
PRODUCT CafePod Coffee Co. is leading their
business activities in producing
coffee, drinks, hot drinks and
FMCG
In order to expand the business in
Asian countries manager of CafePod
Coffee Co. must consider some
specific and specialise products like
chocolate shake or coffee.
PRICE To deal within the local market
they are adopting competitive
pricing strategy as they have to
face tough competition in the
marketplace.
In order to sustain in the international
market they are using price skimming
strategy in which they are offering
affordable at initial level.
PROMOTION For attracting customer from local
market CafePod Coffee Co. is
considering newspapers, personal
marketing, advertisement and
many other.
In case of marketing in Asian
countries they are taking under
consideration is sponsorship,
organising events, brand ambassadors
and many more.
DISTRIBUTION In this aspect, they are taking help
of online resources and distributing
their products through stores in UK
market.
In case of distributing products in
internation market they must utilise
stalls at concerts, participations in
fairs etc.
Ascertain and articulate use of marketing mix in different global markets
Through the marketing mix, there will concise as well as related understanding about the
products, price, place for the purpose of expansion. There is specific guidelines towards the
changes that is complete and specific through which people are capable to determine
appropriately. Along with the clear understanding and evaluation of policies for conducting
operations then it will become easy for the managers to ascertain and analyse the external
environment.
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