Global Marketing Report: Baker's Delight Sri Lanka Market Entry

This report examines Baker's Delight's global marketing strategy, specifically focusing on its potential expansion into the Sri Lankan market. The report begins with an introduction to global marketing and summarizes a previous project related to the company's expansion plans. It then details the market selection process, utilizing the AUSTRADE rating model to assess Sri Lanka's attractiveness and the company's competitiveness. The report further analyzes the five stages of overseas market selection, providing a rationale for choosing Sri Lanka based on its rapidly growing bakery sector and favorable market conditions. It also explores alternative market entry strategies, target market selection, positioning, and generic strategies, recommending a preferred approach for the company's entry into Sri Lanka. The report highlights the importance of market research, competitive analysis, and strategic decision-making in global marketing, offering valuable insights into the challenges and opportunities associated with international expansion.

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......................................................................................................................10
4.0 Alternative market entry strategies as a new company............................................................11
4.1. Alternative target market selection, Positioning...........................................................12
4.2. Market selection process...............................................................................................13
4.2.1. Target market selection process through alternative entry modes to country of choice
.........................................................................................................................................14
4.3 Positioning for each of target markets in manufacturing-based entry mode..................15
4.4. Alternative generic strategies........................................................................................16
5. Recommendations for preferred strategy for Country...............................................................16
5.1. Market entry mode........................................................................................................16
5.2. Target market.................................................................................................................17
5.3. Positioning strategy ......................................................................................................17
5.4. Generic strategy.............................................................................................................17
REFERENCES..............................................................................................................................19

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 project is showing the
way in which the company conducts market assessment is done in order to find out a strategic
location for business expansion. 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 Kandy Galle Colombo
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 - Deforestation - Land as well as water - Soil degradation

environmental
issues
- Air Pollution
- Desertification
- High inflation
- Employment crisis
pollution
- Tax fraud
- Lack of skilled and
competent labour force
- Vulnerability owing to
Climatic changes
- Political crisis
Competitive
environment
Huge competition owing
to globalisation, well
developed infrastructural
facilities and effective
corporate strategies
Massive competition
because of the digital
facilities available to
companies.
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
feel to be belonging to
Sri Lanka. Irrespective of
the extensive marketing
strategies and practices
adopted by firms,
population do not make a
purchase for products
that seem English or
American to them.
Out of home advertising
and tailored marketing
approach seems to be
appealing to the audience
within Galle.
The people of Colombo
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
products which have an
inherent sense in it as the
population of this
country is highly fond of
its own culture.
Hereby, the firms intend
to adopt tailored
marketing approach so as
to successfully gain the
attention of population.
Here, the corporations
target at launching new
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 Colombo 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:-
Ill
ustration 1: Five stages of overseas market selection process

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.
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, many 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. The core reason for establishment of bakery in Sri Lanka is due to high
demand of products in the country which enable the businesses to get easy acceptance within the
market the other reason will be the market potential rate of Sri Lanka in terms of bakery product
is around 0.15% which turned out to be beneficial for business. (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). The another
actual reason for the establishment of the delight bakery positive brand image successful in
different countries. The quality of product the company provide with packing will turn out be
actual reason to turn out potential customer into loyal one. 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 augmented reasons for the establishment of the delight
bakery is that the lack of customer services provided by other companies is not sufficient. The
company will come with more of additional service to customer as the company has proper
understanding of core value and potential market. For 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 products to potential market of Colombo to
attain maximum satisfaction from people.”
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 recognize the deviation post the elapse of stipulated course of time for which
objectives have been set.
Financial Objectives:
With the expansion of respective company into the confines of Sri Lanka, the main aim
of Baker's Delight is to achieve its financial objectives. These are associated with the increment
in profits as well as revenues of the entity in market place. In this regard, the 2 SMART financial
objectives that have been stipulated by the corporation to be met within a period of 1 year from
its entry into Sri Lanka are given underneath:-
“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).”
S- To increase the profits
M- By 6.5%
A- as the entity possess the required resources
R- through extensive marketing
T- within a period of 6 months
“To increase the revenues of company by 12% within 1 year of gaining access into Sri
Lanka through social media marketing.”
S- To inflate the revenues
M- By 12%
A- as the organisation has necessary resources
R- through social media marketing
T- within an year
Market Share Objectives:

Post gaining access into the new market, Baker's Delight will aim at expanding its market
share across the global periphery by enhancing its loyal base of customers within Sri Lanka. In
this regard, the SMART objectives laid down by entity is given below:-
“To inflate the market share of company across the globe by 6% by the end of 1 year
through digital marketing.”
S- To enhance the global market share
M- By 6%
A- through the utilisation of resources
R- with digital marketing
T- by the end of 1 year
4.0 Alternative market entry strategies as a new company
Market
Entry
Strategy
Examples Advantage Disadvantage Justification
Franchising Franchising
model can be
used to partner
with companies
like
McDonald's,
Subway, KFC
Low financial
risks
Limited
market
opportunities
available to
company
Franchising model can be
used by entity to take
advantage of the vast
customers reach of its
franchisees. However,
hereby, the market
opportunities to inflate the
profits of company are
lesser.
Licensing Licensing can
be procured for
bakery sector to
facilitate easier
expansion
Provides
knowledge of
local markets
(Blüher, 2019)
Conflicts with
licensee
Licensing would allow
Baker's Delight to gain
knowledge about the local
market and thus enhance
its profits as well as
revenues