International Marketing Strategy Report: Grenade UK in the UAE Market

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This report provides a comprehensive analysis of Grenade UK's international marketing strategy for entering the United Arab Emirates (UAE) market. It begins with an introduction highlighting the importance of internationalization for business growth. A detailed situational analysis is conducted, utilizing Porter's Five Forces, SWOT analysis, and McKinsey's 7S framework to assess the competitive landscape, internal strengths and weaknesses, and organizational capabilities. The report then defines specific, measurable, achievable, relevant, and time-bound (SMART) objectives for Grenade UK's expansion, including increasing brand awareness, contributing to community fitness, gaining market share, and boosting sales. Strategies such as franchising and licensing are explored, along with market segmentation and marketing mix considerations. The report outlines key challenges and provides recommendations for successful market entry and expansion, emphasizing the importance of adapting products and marketing strategies to the local market. The analysis includes a focus on the target market's potential and the company's goals for sustainable growth, concluding with a summary of the company's plans to achieve its aims.
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Running head: INTERNATIONAL MARKETING
International Marketing
Name of the Student
Name of the University
Author Notes
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1INTERNATIONAL MARKETING
Table of Contents
Introduction......................................................................................................................................2
Situational analysis..........................................................................................................................3
Porter’s five forces analysis.........................................................................................................3
SWOT analysis............................................................................................................................5
McKinsey’s 7 analysis...................................................................................................................5
Objectives........................................................................................................................................8
Strategies........................................................................................................................................10
Franchising................................................................................................................................10
Licensing....................................................................................................................................11
Market segmentation and Targeting..........................................................................................12
Marketing Mix...............................................................................................................................12
Action............................................................................................................................................13
Control...........................................................................................................................................13
Conclusion.....................................................................................................................................14
REFERENCES..............................................................................................................................15
BIBLIOGRAPHY..........................................................................................................................16
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2INTERNATIONAL MARKETING
Introduction
Internationalisation of a company provides the company with a scope for growth. A
company might be performing well within their domestic boundary, however, in order to meet
the demands and needs of the stakeholders, the company might want to expand into foreign
territories. Expansion helps a company in increasing their customer base and overall market
share (Rienda, Claver and Quer 2013). Internationalisation is can be considered as a gruesome
task, although it can be termed as the gateway of success of companies. Companies such as KFC,
McDonald’s and Taco Bell started their operation within their geographic territories (Badal
2017). With internationalisation, the achieved the status of global leaders in their respective
industry. In order to expand, a company must assess their internal and external competencies.
That would help them assess whether they should take the initiative of expansion or not. The aim
of the paper is to critically evaluate the scope of GRENADE UK into the market of UAE. The
paper will provide justification for the move of the country UAE, provide the SMART objectives
and establish the changes in the products and the marketing strategy that will aid the company’s
aim of expansion.
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3INTERNATIONAL MARKETING
Situational analysis
The current situation in the market can be assessed by analysing Porter’s Five Forces model,
Mckinsey’s 7s framework and by carrying out a SWOT analysis of the company. The same has
been carried out in the following section;
Porter’s five forces analysis
Internal Competition: HIGH
There exists high level of competition that the industry is operating in.
The competitors of the company are adept in using their marketing competencies.
High number of variants available and offered by the competitors
Threat of new Entrant: MODERATE
The industry is subject to high degree of regulations.
Market access is supposedly easy.
Having the capital backing can help enter into the market.
Threat of Substitutes LOW
Absence of companies providing similar products in the market.
The quality of the products that are offered by the company cannot be replicated.
The materials that are used in production of the products differentiate the products from
the rest.
Supplier Power HIGH
Not established in the UAE.
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4INTERNATIONAL MARKETING
The suppliers have high bargaining power as the company are not established in the
country.
The supply of the material required for production of the products of the company is
dependent on the suppliers.
Highly competitive prices of the raw materials offered by the suppliers.
Buyer Power HIGH
The products and company is new in the country as a result of which they are subject to
the attitudes and acceptance of the consumers.
Bulk purchasing capability.
Lack of brand loyalty among the people of the new host country.
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5INTERNATIONAL MARKETING
SWOT analysis
Strength:
The company effectively promotes
their products.
The product packaging of the
products makes it attractive.
The initiative of the company is
perfectly aligned with the changing
needs of the society.
The company abides by the modern
slavery act that makes helps it
gaining acceptances for the
government bodies.
The products that are offered by the
company helps the community
maintain a healthy lifestyle.
The initiative of the company
support the sustainability of athletes
and provides support.
Weakness:
Lack of partnership with
companies.
Comparatively new company and
thus lack of support from the
customers
The customer base of the company
is not loyal since the company is
comparatively new.
The products offered by the
company is limited and their
products only one segment.
Opportunities:
Acquiring market share in a new
country.
With expansion, the company can
target a new market.
Increasing market share of the
company with the help of the
expansion.
To spread initiatives of a healthy
lifestyle.
Blooming economy of the target
country
Threats:
Existence of competitors such as
Amway and lifestyle nutrition
Government regulations to new
companies.
Existence of religious regulations.
Failure of acceptance resulting in
loss of the company.
McKinsey’s 7 analysis
The McKinsey 7S model is used by in order to evaluate the marketing competency of a
company. The analysis is carried out and looked at form different angles in order to come at a
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position through which the marketing capabilities of the company can be deemed to be effective.
The model is an assimilation of factors such as the strategies applied by the company, the
systems that re involved in the process of marketing, the structure of executing the strategy, the
style of achieving the strategies, the staff involved in the operation of the marketing plan and the
skills that are needed to be carried out in order to ensure the viability of the marketing plan and
finally the shared value that is associated with the successful implementation of the marketing
activities that will be conducted by GRENADE UK. The 7 factors that contribute to the viability
of the operations of the company in terms of carrying out the marketing plan successfully in the
market of UAE is as follows;
Structure
The proper implementation of the activities of the marketing plan of the company can be carried
out by effectively adjudging the competencies of the structural divisions. The marketing
department of the company is segregated into divisions who are delegated with different
responsibilities. The segregations are made on the basis of the creative division, the sales
promotional division, the PR, digital marketing platform and the advertising division who would
be responsible for the successful implementation of the strategies that would be carried out by
the company.
Systems
The marketing activities of the company and the systems within the marketing operations of the
company would have to be directly aligned with the aim of the company in the market that they
exist. The daily activities of the company involves market research and internal operations
between the companies that are aimed at achieving the functional goals of the company.
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Strategies
The strategies that can be employed by the company in their marketing operation involve
operations such as franchising, licencing and market segmentation. The product that are offered
by the company are perfectly placed in the market according to the needs of people of the
population who are aligned to the supplying utility to the people of the host country
Style
The style that is used by the company in carrying out their operations are considered. The
operations of the company are aimed at the achievement of awareness among the people of the
country in terms of generating affiliation to activities that are filled with health consciousness.
Skills
The skills that are required for the operations of the company in the market in term of gaining
market share in the country that they are operating is possible through inter-personal skills. For
ensuring the smooth operations of the same the company should outsource the services of local
advertisers who can communicate the ideas of the company effectively to the locals.
Shared Value
The ultimate strategic aim of the company is to increase their offerings to the population of UAE
and ultimately gain market share in the country. However, it can be said that the operation of
GRENADE in UAE is a part of the company’s sustainability initiative. The aim of the company
is to provide the people of the community with products through which they will be able to lead
healthier and fitter lives.
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Objectives
The company intends to expand to UAE. The initiative is backed up by favourable
external environmental of the target country. The company aims to satisfy their stakeholders by
expanding to the United Arab Emirates as it would help them in generating increased amount of
revenue and gain considerable amount of market share in the company. Following are the
objectives that has been established by the company;
To increase awareness about the company. The ultimate aim of the company is to
company is to increase the awareness about the company. It has been proven that once a
company moves to new territories, the awareness about the brand is said to increase.
Positioning is the key to justification of the same (Sirianni et al. 2013). Positioning is a
process of creating an image in the minds of the consumers (Sirianni et al. 2013). It can
be termed as the rationale behind the justification of the expansion initiative of the
company. Positioning helps in increasing the goodwill that can bolster the long term
sustainability of the company in the target market and as a whole.
To contribute to the sustainability of the people of the communities in terms of
fitness of the people. The products that are supplied by the company provide nutritional
benefits to the community (Grenade.com 2019). Furthermore, there has been an increase
in the amount of people who are shifting to healthier lifestyles. The products that are
being offered by the company provide nutritional value to the consumers. It helps in
mitigating the adverse health effects that are caused by unhealthy snacks and junk food
that is appreciated by most of the population. However, it can be said the products that
are supplied by the company are on the expensive side. It is assumed that it will not be an
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issue since the consumers in the target have high power of purchasing. Thus, the aim will
of the company to contribute to the sustainability of the people is assumed to become a
reality.
To gain more than 25% market share in the target market. The target market of the
country has existent companies who are supplying similar products to the market.
However, it can be said that the company the products that are being offered by the
company offer a unique value to the customers. The competitors already have established
their position in the market and have a loyal base of customers. The aim of the company
is to sustain the role themselves in the market which would be backed up by the products
of the company that have a unique USP.
To increase the visibility of the brand by carrying out promotional activities in the
country. The elements of the promotional mix have helped various companies in term of
increasing their brand value in the target market. By incorporating activities such as
personal selling, advertising, sales promotion, direct marketing and publicity, the
company will be able to promote its initiatives in a more efficient way.
To generate 50% of the sales that the company is able to generate in the United
Kingdom. Increasing the turnover is the ultimate goal of the company. Generating
turnover, helps in generation of revenue, and the later helps in the justifying and meeting
the needs of the stakeholders of the company. Satisfaction of the needs of the
stakeholders of the company results in corporate governance. Thus, the company intends
to increase the sales of the company.
The objectives that have been laid down by the company should not be vague. They
should be actionable, realistic and measurable. This can be adjudged using SMART, which is a
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method of justifying the same. Following is the justification of the objectives that have been set
by the company.
Specific Yes The objectives of the company are aimed at specific goals and
targets.
Measurable Yes The success of the objectives are measurable as the same would be
reflected through figure.
Achievable Yes The objectives that has been established by the company are
achievable as the same were achieved by other companies in the
past.
Realistic Yes They objectives of the company are realistic and achievable.
Time-bound No At present, the time for the expansion and achievement of the same
has not been fixed.
Strategies
Following are the strategies that can be used by the company while operating in UAE;
Franchising
Franchising is an activity through which a company grant other bodies to operate on
behalf of the former (Nijmeijer, Fabbricotti and Huijsman 2014). The role of the franchisees thus
formed is to operate as single units through which they generate sales and operate in a said
region (Lee et al. 2015). It is a technique through which GREANDE can offer, their products for
sale by utilising the helps of a thirds party business partner. It helps the company in achievement
or realisation of their long term goals generation of turnover in the company. In the aim of
expanding to the market of the United Arab Emirates, the company should aim to establish at
least four franchises in each of the seven emirates that are present in the country. Thus at the
beginning of the aim of expansion of the company, they should ensure that they are able to
establish at least twenty eight franchises across the country. Even though this number is
considered small in terms of the standards of the competition established in the markets by the
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competitors. Franchising will provide opportunities of employment to the people of the emirates.
Even through most of the people in the country are employed, the opportunity to get associated
with a company from the United Kingdom is supposedly deemed to be lucrative for the
franchisees.
Licensing
While franchising is an effective way of propelling the brand image on its own,
GRENADE UK also plan to incorporate licencing agreements into their international marketing
strategy (KreuTzer 2014). If a company is licencing a product, they are allowing a third party
operator to use their intellectual property. The intellectual properties can be logos, designs of the
product, the name of the product, and others features. A company licences their product or
services to a third party operator by charging a nominal fee known as royalty (Tschmuck 2013).
Both the parties who are associated in the licencing agreement benefit from the same. In the
current scenario, GRENADE can benefit from a licencing agreement as it would help the
company in achieving their ultimate aim of gaining more visibility in the target nation that is in
the United Arab Emirates. The company also spread awareness regarding how to stay fit and lead
a healthy lifestyle, thus, they could licence their creative T-shirts with motivational quotes in the
franchise deal. Accordingly, licencing is said to help the company in achievement and realisation
of their ultimate sustainable initiatives. The following benefits are associated with a strong
licencing agreement;
i. It helps in strengthening the brand image of both the parties that are associated in the
agreement. GRENADE can gain exposure to the market that they are new to.
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