International Marketing Report: Gousto's Market Entry Strategies

This report comprehensively examines the application of international marketing principles to the meal kit retailer, Gousto. It begins by defining international marketing and outlining its scope and key concepts, followed by an analysis of the rationale for Gousto's global expansion, considering market saturation, growth potential, and competitive pressures. The report explores various market entry routes, including exporting, franchising, and joint ventures, evaluating the opportunities and challenges associated with international marketing. It details the criteria and selection process for choosing international markets, incorporating political, economic, and demand factors, as well as trade barriers. Furthermore, the report analyzes different market entry strategies, such as exporting, licensing, and strategic alliances, weighing their advantages and disadvantages, and making recommendations for Gousto. The study then delves into the global versus local debate, assessing how Gousto should adapt its marketing mix—product, price, place, and promotion—in different international contexts. Finally, the report evaluates various international marketing approaches and competitor analysis, concluding with insights into Gousto's potential for global success.

INTERNATIONAL MARKETING
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Table of Contents
INTRODUCTION..........................................................................................................................3
LO1.............................................................................................................................................4
P1 SCOPE AND KEY CONCEPTS OF INTERNATIONAL MARKETING.........................................4
P2 THE RATIONALE FOR GOUSTO TO MARKET INTERNATIONALLY AND VARIOUS ROUTES
TO MARKET IT CAN ADOPT.....................................................................................................5
M1 EVALUATE THE OPPORTUNITIES AND CHALLENGES THAT MARKETING
INTERNATIONALLY PRESENTS TO GOUSTO............................................................................7
LO2.............................................................................................................................................8
P3 KEY CRITERIA AND SELECTION PROCESS TO USE WHEN CONSIDERING WHICH
INTERNATIONAL MARKET TO ENTER......................................................................................8
P4 DIFFERENT MARKET ENTRY STRATEGY INCLUDING ITS ADVANTAGES AND
DISADVANTAGES..................................................................................................................11
M4 MARKET EVALUATION CRITERIA AND ENTRY STRATEGIES AND MAKE
RECOMMENDATIONS FOR GOUSTO....................................................................................13
LO3...........................................................................................................................................14
P5 USING YOUR CLIENT ORGANIZATION, PRESENT AN OVERVIEW OF THE KEY
ARGUMENTS IN THE GLOBAL VERSUS LOCAL DEBATE........................................................14
M3 EVALUATE THE CONTEXT AND CIRCUMSTANCES IN WHICH YOUR CLIENT
ORGANIZATION SHOULD ADOPT A GLOBAL OR LOCAL APPROACH....................................15
P6 INVESTIGATE HOW THE PRODUCT, PRICE, PLACE AND PROMOTIONAL DISTRIBUTION
APPROACH DIFFERS IN A VARIETY OF INTERNATIONAL CONTEXTS.....................................16
M4 DETERMINE AND ARTICULATE IN DETAIL HOW TO ADAPT THE MARKETING MIX OF
YOUR CLIENT ORGANIZATION IN DIFFERENT INTERNATIONAL MARKETS...........................18
LO4...........................................................................................................................................19
P7 EXPLAIN AND ANALYSE THE VARIOUS INTERNATIONAL MARKETING APPROACHES
YOUR CLIENT ORGANISATION CAN ADOPT..........................................................................19
P8 COMPARE HOME AND INTERNATIONAL ORIENTATION AND WAYS TO ASSESS
COMPETITORS......................................................................................................................21
M5 EVALUATE VARIOUS MARKETING APPROACHES AND COMPETITOR ANALYSIS............23
CONCLUSION............................................................................................................................24
REFERENCES.............................................................................................................................25
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INTRODUCTION
International marketing may be defined as the application of the marketing principles to
more than one country. It is the process of planning and executing the conception,
promotion, pricing and distribution of ideas, products and services to create exchanges that
can meet the need and demand of the customers. There are various benefits of
international marketing which includes increased market share, reaching new customers,
increasing linkage among business etc. (Deresky, 2017). This report explores the different
features of international marketing. It demonstrates the contribution of the marketing in
international context. It further evaluates the main criteria and selection process to make an
entry in the new market. The elements of the marketing plan that can be adapted or
standardised across the international market are also covered in this work. In the last
section, it throws light on the numerous marketing approaches that can be adopted by a
company to achieve the desired result.
In this work, 'Gousto' is selected to make a deep understanding of the international
marketing and various factors associated with it. Gousto is a British meal kit retailer which
offers recipe kit box which includes fresh ingredients and chef-designed recipes. It was
founded in the year 2012 and headquartered in Stepherds, London. This report focuses on
how this company can make an entry in international markets successfully.
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Figure 1: Ingredients in Meal Kit Of Gousto
Source: Www. Gousto.Co.Uk
LO1
P1 SCOPE AND KEY CONCEPTS OF INTERNATIONAL MARKETING
International marketing is the application of marketing activities or principles in the new
country in order to attract the new customers. It is imperative for an organization such as
‘Gousto’ to concentrate on the international marketing to grab the opportunities provided
by the international market.
International marketing has earned a great scope. Due to globalization, the marketing
strategies are not limited to stay confined within the national border. Today world has
become the open market and a company can enter into any favourable market. The scope
of international marketing includes imports, exports, contractual agreements, strategic
alliance etc. (Kotabe and Helsen, 2014).
Imports –A business organizations buy the products from the supplier belong to the
different country and sell the products in local market. A local company purchase the
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products which are not available in local market and it helps the company in meeting the
expectations of the customers.
Export – A company sells its products in the different country in order to enhance market
share and profitability. It helps the company in enhancing brand awareness and in reaching
and making new customers.
Contractual agreement- A company make contractual agreements with other companies in
order to operate its business in the new country. Those agreements can either in licencing
or co-production or even technical assistance. A company can make much agreement
including patents, trademark, brand names etc.
Strategic alliance- a company shake hands with the other company belong to another
country in order to achieve mutual benefits. It helps a company in achieving a competitive
edge over its rival companies (Papadopoulos and Heslop, 2014).
CONCEPT OF INTERNATIONAL MARKETING
The key purpose of international marketing is to grab the overseas opportunities which can
help in grabbing the significant market share and profitability (Morschett, et al. 2015).
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P2 THE RATIONALE FOR GOUSTO TO MARKET INTERNATIONALLY AND
VARIOUS ROUTES TO MARKET IT CAN ADOPT
There may be various reasons which can be responsible for the globalization of a company.
The key reason which makes a company goes global are outlined below.
 Domestic market saturation
 Slow growth of the domestic market
 The small size of the domestic market
 Suppliers follow their customer internationally
 Competitive pressure
 Attractive cost structure globally
 Growth rate and potential
 Compete successfully in the domestic market
All the above-mentioned reason can invoke a company to operate its business in different
countries. There are many reasons for Gousto to market internationally. The rationale for
Gousto to market internationally are-
 Competed successfully in the local market and have potential to give tough
competition at international level
 Growth rate and potential
 The small size of the domestic market
DIFFERENT ROUTES TO ENTER NEW MARKET
There are different routes which can be adopted by a firm to enter a new country. The key
routes which can be adopted by the company are franchising the company, direct exporting
and joint ventures. Gousto can focus on all these routes to enter the new market to
enhance its market share and profitability.
Franchising the company – It is one of the best and easiest ways to break into the new
market. The only thing a company is to take the existing successful business model and find
a franchisee in the target market.
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Direct exporting- It is one of the most common strategies which allows a company to sell its
products into another country. Gousto can sell its recipe kit box directly in the international
market. It can also help in enhancing the brand awareness of the company.
Joint ventures- It is a partnership between two companies. Gousto can shake hands with
the companies in the new market. Usually, the investment in the joint venture is 50/50 and
shares the profits accordingly (Oumlil, et al. 2017).
The above-mentioned routes can be adopted by Gousto to achieve success at international
level.
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M1 EVALUATE THE OPPORTUNITIES AND CHALLENGES THAT MARKETING
INTERNATIONALLY PRESENTS TO GOUSTO
There are various opportunities and challenges which is associated with the international
marketing.
The opportunities which can be grabbed by the international market are:
 The enhancing popularity of the purchasing quality ingredients is increasing in
different markets
 Gousto have the opportunity to establish as a global brand
 It can help the company in boosting its market share and profitability
Challenges which can be faced by the Gousto are:
 High taxation and duties of many countries
 Political and economic instability
 Unavailability of sufficient to expand in few markets
Gousto should consider all the opportunities and challenges which can influence the
company in expanding its business in different countries (Schreiter, 2015).
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LO2
P3 KEY CRITERIA AND SELECTION PROCESS TO USE WHEN CONSIDERING
WHICH INTERNATIONAL MARKET TO ENTER
There are different factors which should be considered by a company to enter into an
international market. There are different criteria which should be set by the company to
select a country for the expansion. Gousto can set the different criteria for the various
factors such as political and economic condition, the demand of the market, trade barrier,
availability of resources etc.
Political and economic- Gousto should understand and analyse the political condition of a
market before entering in. It should ensure all the governmental rules and regulations are
favourable for its business. It should also concentrate on the economic factors such as
recession, inflation, exchange rate etc.
The demand of the market – Gousto should choose a market in which demand for recipe kit
box is high as it can reflect directly on the sales of the company. It should avoid the market
in which demand is less as compared to supply. It should also ignore the highly competitive
market as it can affect the profitability of the company.
Trade barriers- There may be different trade barrier which can influence the business of
Gousto. The tax and duties imposed by the government of a new country can reflect
significantly on the profitability of the business. Gousto should make the criteria for all
these factors and should choose the country with minimum taxation rate (Naidoo, 2016).
PROCESS FOR SELECTION OF INTERNATIONAL MARKET
The selection process of an international market includes different stages. These stages can
be followed by a company to select the most appropriate and suitable for its business. The
key stages of the selection process are country identification, preliminary screening, in-
depth screening, final selection and direct experience.
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Figure 2: Process for Selection of International Market
[Source: Armstrong, 2014]
Country identification- A company should consider the different potential countries in
which it can enter through any entry mode. Country identification means to undertake a
general overview of all the available potential countries. Different factors such as social,
cultural, economic and social factors should be considered by the Gousto to select the most
suitable country according to its business model
Preliminary screening- At this stage, a company takes a more serious look at the remaining
potential companies. Company evaluate the countries on the basis of the different set
criteria. The company starts calculating the market entry cost required to enter in a market.
It also considers the suitable entry mode for different countries.
In-Depth screening- After preliminary screen, a company goes for the in-depth screening in
which it collects the detailed information on the target market. In this stage, Gousto can
focus on the volume of its potential customers in the different country.
Final selection- After going through in-depth screening a company makes the decisions
about its target market. Gousto can look at the competitors or other local companies that
have already operated their business in the new market. It would be helpful for the
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company in determining the potential of a market. It also helps in selecting and adopting the
business strategies which deliver a competitive advantage over the other companies.
Direct experience – It is the final step in which marketing manager or the representative of
a company travel to the new market. It helps the company in understanding that what is
similarity and difference between its domestic market and international market (Samiee, et
al. 2015). It can also help the company in understanding that how its competitors are
operating their business. The managers or representative of Gousto can focus visit the new
countries of Asia, Australia or other continents to understand the opportunities and
challenges that can influence its business.
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