International Market Expansion Strategies for Greggs PLC: Report

This report analyzes the international marketing strategies of Greggs PLC, a British bakery chain, focusing on its potential expansion into the US market. It begins by defining international marketing, its key concepts, and its scope, emphasizing the application of marketing principles across national b...Read More

International Marketing

Contents
PART 1............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

PART 1
INTRODUCTION
The term international marketing is referred to the activities which occurs across the borders
of a country (Abell, 2018). It is also stated as the global marketing which is done with various
countries so as to increase the business. International marketing is a broad concept which is
opting by various business and organisation so that they can promote their business on a global
level. It is the application of marketing principles in various countries to increase the functional
operations and encouraging the reach of customers too so as to increase the sales. The market
expansion is referred as the strategic growth which involves the various offering of existing
products and service to the new market. The new market is defined as the market which is
usually outside the current geographic location and regions in which the business can be operated
depending on various aspects, availability of funds and resources so as to carry forward the
necessary tasks and operations of the company. In this report the international expansion of
Greggs PLC which is a British company of bakery products will be highlighted with major focus
on the various ways in which it can market its profits in a global market along with justified
rationale for each international de cession made.
MAIN BODY
P1: Analyse the scope and key concepts of international marketing.
The international marketing is the application of various principles and strategies of
marketing to satisfy the needs and wants of different people and customers across the national
borders so as to increase the level of sales by expanding the business globally. It refers to the
undertaking of marketing activities in more than one nation. The term global marketing can be
define as the designing of various marketing strategies and tactics along with the suitable
marketing plan so as to promote the products and services of the company or an organisation.
The first decision that any company has to make is whether to go international or not, the
company may not want to widen because of its huge market share in the national market and do
not want to learn the new laws and rules of the international market (Baker, 2020). There are a
lot of reasons which can attract the business to expand itself globally such as, The increased
economies of scale, Higher opportunities of profit as compared to the national market, The
1

availability of huge market share and wider market expansion so as to perform the business
effectively and efficiently. The scope of international marketing usually includes he exporting of
goods and services in the foreign markets. The various exports of goods and services in foreign
markets perform different types of activities which can be helpful I initiating the trade effectively
so as to maintain the global business as well. Some of these activities includes the following
 Establishing
This activity is related with establishing a branch in the foreign market so as to process, package
or assembling the goods according to the needs of the market and the customers as well.
 Joint ventures and collaborations
The term international marketing includes the establishing of joint ventures and collaborations as
well in the different countries along with some foreign industries for manufacturing and
marketing of various products (Galhotra,2021). In these type of activities, the company works in
collaboration with the foreign industries and other international market firms so as to expand the
business and increase the marketing of its products and services.
 Technical and managerial know how
The scope of international market includes the various activities along with the management of
technical know-how, so that the tasks and operations can be managed effectively and efficiently
The technical knowledge provides the better understanding to perform the various functions and
operations quite effectively without wasting the time also. The technology can also be used to
promote the various tasks of international business and other relevant marketing activities quite
easily. With the technological upgradation, many trade activities and good export system can be
encouraged in such a way so that it takes less time and the proper flow of goods and information
can also be provided to the end users too.
The international marketing is basically having three different concepts which are considered as
the important part of the marketing (Greggs,2021). The concepts are as follows
 Domestic market expansion concept
This concept is related with the extension of sales and various other activities related to the
marketing concept which can promote the domestic products and services into the international
markets. This concept views the foreign products secondary as compared to the domestic goods
and services.
 Multi domestic marketing concept
2

In this concept, the company is more focused on the success of the market and its strategies so
that the various operations and other activities can get a boost and the domestic product can be
promoted more effectively in the international market by opting various marketing strategies and
tactics.
 Global marketing concept
The term global marketing concept is referred to the overall framework of marketing
which is opted by the business or an organisation to design, introduce, promote and maintain the
products and services at the global market so that the international market can be increased and
also the various activities related to the global market can be maintained effectively. The
worldwide marketing concept include different attributes such as the product designing, nature of
packaging and labelling, choosing the brand name and other sales support service (Kong 2019).
Global marketing is a strategy and tactics that is used for upgrading the reach of audience to the
brand from the domestic level to the international marketing level which can increase the brand
development and brand image of the product and the service globally, by which the business or
an organisation can promote their business or an organisation to a wide range.
P2: Discuss the rationale for an organisation to want to market internationally and
describe the various routes to market they can adopt.
There are a lot of reasons which can be considered by the companies in order to expand
themselves internationally. As the business wants to increase the revenue and cost savings so that
they can earn more profits and also the various opportunities are also provided while entering in
the international market. The expansion of the business level globally can help the marketers to
attract the new customers, which can increase the savings and increase the operational costs of
the company so that it can generate effectively in the market of international level without any
issue or problems in the market. The business can also achieve their global objective by setting
up their own entity in the foreign industry, The global market expansion is considered as the
important term nowadays as it helps to maintain the good reputation in the market also the entry
to markets can help the business to gain the competitive advantage and increase its technological
efficiency so that the business can flourish in the long run as well. The diversification of the
foreign industry also helps the company to grab more opportunities which can help the industries
on a large level by encouraging their mass reach of the customers.
3

The Greggs plc is a British bakery chain which specializes in various products such as bake,
sausage rolls, sandwiches, sweet items and other bakery products including vanilla slices as well.
The company is headquartered in London (Luo, 2021). The Greggs is the leading bakery food
and on the go retailer with having 1800 shops worldwide. The company wants to expand the
business on an international level in USA so as to so achieve various advantages which are as
follows
 Entry to new markets
The first benefit which can be enjoyed by the Greggs PLC by expanding its business globally is
the entry to new markets by which the company can increase its customer base and also it can
access to more upgraded market quickly. The company can also get the advantage of USA
markets and other benefits which can increase its effectiveness in terms of achieving various
objectives to make a stable position in the market of USA.
 Access to local talent
The special talent is hard to find nowadays. So as to find the potential talent, the company
should expand globally and can get an access to the unique set of skill. The Greggs PLC can
have an advantage to find such unique talent in the market of USA.
 Increased business growth
This is the most important advantage of entering into the international market, as it helps the
domestic business to increase its growth. By expanding the global reach of the market, The
Greggs PLC can promote its growth in the market of USA and can experience new products and
services in terms of the benefit increased in the US market.
 Stay ahead of the competition
The Greggs PLC can expand its International business so that it can achieve the competitive
advantage, as the expansion of business internationally can help it to access new customers and
will also prove the clear and fair view to look at the visibility that the competitors are lacking in
the market of USA.
The Greggs can achieve various ways of international marketing so as to promote itself in the
global market. It can use the adaptation technique as it is an effective customer orientation
strategy. The adaptation refers to the change in various aspects of products and services to a level
4

so as to meet the needs of consumers in international markets taking into consideration about
their differences also.
The Greggs PLC can also focus on updated technology so as to shape the international;
marketing strategy and various tactics which drives the force towards the shaping of global
marketplace. The effective communication between the various markets and other forms of
market segments can be encouraged (Okumus,and Cetin, 2018). Using the effective technologies
can also reduce the traditional barriers which can effect the performance of domestic market in
the internation level. The Greggs PLC can increase the use of upgraded technology according to
the international market so as to stay dynamic according to the USA market and its targeted
customers as well.
P3: Evaluate the key criteria and selection process to use when considering which
international market to enter.
The international business that are in search to sell their goods and services like Greggs
PLC can sell their products or services so as to start a new business in the international market of
USA. The international marketing types can include following components,
 Export
The term exporting refers to the practise of shipping and providing various goods and services
to the customers so as to increase the business on a global level. The Greggs PLC can increase
the exports and trade with USA and many other countries as well, which can help the company
to increase its efficiency.
 Licensing
The term licensing is an agreement, whereas the company is known as the licensor, which can
grants the foreign firm to use its intellectual property. The Greggs PLC can check its licencing
procedure before entering into the international market of USA.
 Joint venture
The joint venture is referred as the combined effort of two business from different countries
according to their mutual benefits. The join venture is the participation of two or more
companies coming together and joining in an enterprise in which both the companies does
contributes to the assets and owns the entity up to an extent.
5

 Foreign Direct Investment
The FDI is referred to a company in which the company places the fixed assets in a foreign
country so as to start the production in the product abroad. The foreign direct investors include
the mergers and the acquisitions, retailing services, supply chain and logistics (Rickard,and
Conaway,2022). The Greggs PLC can also consider this type of international marketing as
various USA companies are using this method to sell their products and services globally, by
increasing their sales too.
For selecting a right market, The Greggs PLC should choose an appropriate strategy so as to
decide about the market to enter. The market can shape the international development, business
and can also increase the planning and growth potential. The better selection of market can shape
the international development, business planning and growth potential too. There are various
strategies which can be opted by Greggs PLC, which are as follows
 Market concentration
This strategy is based on focusing on selecting few market so as to consolidate the company's
presence in these markets. With the objective of achieving the targeted growth . The market
concentration has various advantages as it will help Greggs PLC to gain the knowledge of each
market so that it can design the products according to its match. The costs are also reduced
across the logistics, management and various operations management.
 Market diversification.
The term market diversification is referred to the Introducing of a company's product to as many
markets as possible. perhaps with having small shares in the majority of the markets. The Greggs
PLC can considerer this strategy so as to increase the rapid sales growth and the risk can also be
diversified by the help of this strategy (van den Berg, 2019).
The main criteria for selecting the international market can also includes various factors such as,
environment and market analysis including the various factors such as, GDP growth, country risk
and political factors. Analysing the competition can also help the Greggs PLC to get a better
understanding of identifying the competitors and also the important components can be
distinguished such as, prices, channels, market maturity, financial position and development of
potential plans and strategies.
6

The Greggs PLC can enter various markets so as to expand itself internationally and it can also
increase the reputation of the company, as the customers will see it as a more broad and widen
business to pursue. The Greggs PLC can consider various markets which are as follows
 Global fast food industry
The global fast food industry is the larger market having a size of 862.05 billion. The market is
projected to grow from USD 972.74 billion to 1,467.04 billion. The global fast food Industry is
the quick service restaurant spread worldwide (Shahapur,and Dasgupta2019). The Greggs PLC
can join the global fast food industry so as to increase the sales of its bakery items as the
company is having a great demand of its products and also it has a well reputed position in the
market.
 Cafe market
The cafe market is driven by the the increasing number of customers and the increasingg sales of
the market has also anticipated to boost up the growth of cafe market. The cafes are being a
priority of the customers top enjoy and have a better food in. The Greggs PLC can engage with
the cafe market so as to increase its sales and value by satisfying the needs and wants of the
customers providing them with the best of its quality.
 Breakfast Market segment
The breakfast market segment is getting a good place in the hneart of the customers, as the
working and job people are more busy and focused on their work, so as to provide them with
better platform, The various breakfast segments has been promoted so that the sales and quality
can be improved. The Gregg PLC can consider the market of Breakfast segment as they are more
unique and different forms of market providing the best of quality and service within one store or
a shop as well. The Greggs PLC can give a boost to its sales by entering into the market of
Breakfast segment.
 Global Bakery Market
The global bakery market is divided into bread, cakes and pastries. Which is referred as the most
opted segment by the marketers so as to gain the competitive advantage by making specific and
unique products so as to gain the satisfaction and trust of the employees. The bakery market is
growing quite effectively and efficiently over the period of time as the customers are demanding
more products related to bakery, biscuits, cookies and other food items as well. The Gregg PLC
is also a company which produces the bakery items, so this would be the great step to enter into
7

the market of global bakery so as to increase the expansion and growth by promoting its bakery
product.
P4: Explain, using examples, the different market entry strategies, including the
advantages and disadvantages of each.
Market entry strategy is a planned arrangement and conveyance method of goods or
services to the new target market (Uzgör,and Şengür2022). In the import and export of services,
it refers to the activity, establishment, and management of contracts in a foreign country. There
are a lot of market entry strategies which can be used by Greggs PLC in order to enter into the
new market.
 Franchising
The term Franchising is referred as a process for the rapid market expansion as it is increasing
traction in other parts of the world. Franchising works well for firms that have a repeatable
business organization model (e.g. food outlets) that can be easily transferred into other markets.
The Greggs PLC should look into franchising to enter markets such as China and India as they
are very lucrative. The term franchising has various pros and cons too, such as, the Enlargement
can be faster because franchisees provide the labour and their sales gives the boost to the growth.
The disadvantage of franchising is, that they cannot be succeed that much as closely as employee
because they may have various goals to the franchisor
 Licensing
Licensing is a comparatively sophisticated preparation where a firm transfers the rights to the use
of a product or service to another firm (Larsen,and Hannibal,2021). The term Licensing is also
having various pros and cons such as, The cost of production, promotion and packaging is not
necessary to incur. The disadvantage of Licensing is related with the, lose of power over the
product including the promotion, packaging and selling as well. Buy using licensing Greggs PLC
can save money relating to global expansion and it can also enter to tough markets, such as Spain
and Mexico where local tactics are needed.
CONCLUSION
The above report went into detail with many complex topics such as, International marketing, its
scope and its key concepts as well. Furthermore, the Greggs PLC which is a UK based company
8

of bakery, is taken so as to make it more clear and understandable about the concept of
international marketing, new ways and strategies to enter into the market as well as the
challenges including the selection criteria so as to enter into the international markets.
9

REFERENCES
Books and journal
Abell, M., 2018. Franchising and Brexit: Where Are We Now. Int'l J. Franchising L., 16, p.3.
Baker, R., 2020. Personalization at work: How HR can use job crafting to drive performance,
engagement and wellbeing. Kogan Page Publishers.
Galhotra, B., 2019, February. Evolution of E-commerce In India: A Review and Its Future
Scope. In 2019 International Conference on Machine Learning, Big Data, Cloud and
Parallel Computing (COMITCon) (pp. 226-231). IEEE.
Greggs, T., 2021. Barth and Bonhoeffer as Contributors to a Post-Liberal Ecclesiology: Essays
of Hope for a Fallen and Complex World. Bloomsbury Publishing.
Kong, X., 2019. Concept and scope of technical measures to trade. Peking University Law
Journal, 7(1), pp.73-86.
Larsen, N.N. and Hannibal, M., 2021. International social ventures: A literature review and
guidance for future research. Journal of International Entrepreneurship, 19(2), pp.223-
255.
Luo, Y., 2021. New OLI advantages in digital globalization. International Business Review,
30(2), p.101797.
Okumus, B. and Cetin, G., 2018. Marketing Istanbul as a culinary destination. Journal of
Destination Marketing & Management, 9, pp.340-346.
Rickard, M.K. and Conaway, L.B., 2022. Franchising variation across US states.
Competitiveness Review: An International Business Journal, (ahead-of-print
Shahapur, S. and Dasgupta, S., 2019, March. Future scope for 5G with respect to the Indian
telecommunication sector and proposed solution of setting up 5G in rural areas using
unmanned aerial vehicles. In 2019 6th International Conference on Computing for
Sustainable Global Development (INDIACom) (pp. 199-204). IEEE.
Uzgör, M. and Şengür, F., 2022. Investigating an underutilized subsidized routes scheme:
Underlying reasons and policy recommendations. Case Studies on Transport Policy,
10(1), pp.287-299.
van den Berg, C., 2019. Tax implications of franchising arrangements. TAXtalk, 2019(75),
pp.30-32.
10

11