International Marketing Strategies for Iceland Supermarket in China

This report analyzes the international marketing strategies for Iceland Supermarket's potential entry into the Chinese market. It begins by defining international marketing and its significance for expansion into new markets, specifically focusing on China. The report then outlines key international marketing strategies, including Segmentation, Targeting, and Positioning (STP), social media marketing, advertising, and promotional activities. It proposes a suitable marketing mix for Iceland Supermarket, considering product, price, place, promotion, people, process, and physical evidence. Furthermore, the report explores various strategies for market entry, such as exporting, joint ventures, market development, diversification, and product development. Finally, it evaluates the key drivers of globalization, including political, technological, market, competitive, and cost drivers, and their impact on Iceland Supermarket's international marketing efforts. The report aims to provide a comprehensive understanding of the challenges and opportunities associated with international market expansion, offering insights into strategic planning and execution.

INTERNATIONAL
MARKETING:
ASSESSMENT 2
1

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
International marketing strategy..................................................................................................3
Proposing marketing mix which are helpful for Iceland supermarket........................................4
Strategies in order to enter in new or emerging market...............................................................5
TASK 2............................................................................................................................................6
Evaluation of different key drivers of globalisation....................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
2

INTRODUCTION
Marketing is a concept of enhance awareness among local community of the control with
the help of promoting products and services offered by it. When the firm market, promote as well
as sell its goods and services in two or more countries then it called as an international
marketing. When the an entity going to enter in new or emerging market then international
marketing helps to enhance presence among the country. In the present case, Iceland
supermarket is to be selected which is operating in retail sector of UK. Further, emerging market
for entering and expand business china economy is chosen. The report describes about marketing
strategy at international level, marketing mix as well as tactics to enter in china market. Beside it,
the study shows various drivers which help to become global firm up to greater level.
TASK 1
International marketing strategy
Those strategies and tactics which helps to the company in order to promote and advertise
its products and service in two or more countries are known as international marketing strategy.
In the current study the Iceland supermarket is going to enter in new market i.e. china. It is an
emerging and developing economy of the world by which Iceland can generate higher profit at
the fiscal year ending. There are various types of strategies used by such firms for enhance
international presence which are such as follows:
 Segmentation, Targeting and Positioning (STP): The company segment and divide the
business on the basis of different geographical areas and then serve goods to the firm.
Here it provides services and products according to the area wise by which Iceland
supermarket is easily able to cover more areas of china market (Czinkota and Ronkainen,
2013). Apart from this, the firm target to particular area or demographic sector for enter
and sustain in the emerging market. As per the targeting it focuses on only one area such
as young or old age people etc. By targeting only one aspect it makes products and tactics
for selling to customers.
3

At the end the Iceland supermarket make and create position in the market where it targeted
at the above analysis of targeting. In this, the firm uses a particular criteria to make position in
the overall retail industry of china. It can use lower cost, unique and different products, high
quality of services etc. which helps to create effectual position in the retail industry of UK.
 Social media: Now a days, majority people uses internet and surfing many times within a
day where different sites are to be used by them. When the company Iceland uses social
media networks in for advertising its services and products offered to the users
(Zkjadoon, 2016). It is one of the best and most profitable strategy to enhance presence in
the local community of china. In addition to this, cost and charges for marketing products
is very low when Iceland uses social media networks. Advertisement: Another international marketing strategy is advertisement which is used
by most of the companies to attract more customers. There are various techniques used
by the Iceland for advertising services and products offered in the china market to
increase sales and achieve objectives. Different strategies of advertisement are such as
articles, newspapers, posters, templates etc. helpful to attract users.
 Promotional activities: Apart from the above mentioned strategies the Iceland
supermarket uses different promotional activities which are the helps to advertise and
marketing its services and goods in china market (Akaka, Vargo and Lusch, 2013). In
order to organize promotional activities it can use pricing factor, sponsorship in the
events etc. When the Iceland give sponsorship in the public events and programs then
local community aware about it which is one of the most beneficial for it.
Proposing marketing mix which are helpful for Iceland supermarket
By using marketing mix the firm is able to promote and advertise products and services
offered by it in the emerging market china. It includes various elements which are described as
below:
 Product: Here the Iceland supermarket has to provide better and high quality of services
as well as retail products to the china market by which it will be able to attract customers
and sustain them.
4

 Price: As per such element of marketing mix the management has to offer its products at
the lower prices as compare to those firms which are provide similar retail items in china
(Majaro, 2013). Place: It is a thing by which Iceland sell its outcomes to the buyers which is like as retail
store, shop or online etc. Promotion: Using the respective element Iceland able to promote its goods and services
which help to aware local community of china. It is one of the best element for marketing
various retail services and products. People: Here people means employees and workers of Iceland who are key assets and
highly helpful to run business in new market. Process: The stages which are used by Iceland in order to covert raw material into final
products is known as process which needs effectual by which it able to produce high
quality of items (Wilden and Gudergan, 2015). Physical evidence: Interior and feasibility of stores of Iceland has to be attracted which
lead to increase interest of buyers for purchasing retail products.
Strategies in order to enter in new or emerging market
When a business entity wants to enter in the new, developing or emerging market then it
cannot directly enter. For that it has to use different tactics and strategies by which it can run and
operate in new economy in proper way. In the present case the Iceland supermarket going to
entre in emerging economy which is china. Further, it uses various entry strategies which are
explained as below:
 Exporting products and services: One of the best strategy to enter in emerging market is
export where the business sell its goods and services in another marketing and generate
sales (Khojastehpour and Johns, 2014). In this case, the Iceland supermarket has to
follow various kinds of rules and regulations which are made by authority body while
exporting products to china market. Here different tariffs and taxes are paid by the
Iceland while doing export it’s good to the china market. Joint venture: Another entering tactic is joint venture where the firm combines with
another firm which is of that market where business going to enter. When the Iceland
going to expand its business in china economy then it can join with its business. There
5

are various terms and conditions which are framed by governing body of china are has to
follow to the Iceland. After completing some of the years Iceland can demerge and start
its business separately in the china. Market development: As per the current strategy the firm Iceland enters in the china
market with the help of new market. It is one of the best and most widely uses strategy
for expand existing firm into new or developing market (Christodoulides, Cadogan and
Veloutsou, 2015). The strategy is framed by Ansoff where Iceland enter in china using
existing kinds of product range. Diversification: The respective business expansion tactic is provided by the Ansoff at
which organisation enter in emerging and new market using new product range. With
help of innovative and updated products and services Iceland enter in chosen market and
then attract customers for achieve goals and objectives. Product development: According to the product development strategy of business
expansion, the entrepreneur seeks towards producing innovative and new products other
than existing items. Hence, with the help of manufacturing new products the Iceland is
easily able to enter in china market (Mowforth and Munt, 2015). Further, users want that
a company provide new and innovative products over the specific period of time. Hence,
it is also one of the best strategy to expand as well as enhance market share in the retail
sector.
TASK 2
Evaluation of different key drivers of globalisation
Those factors and elements which helps to the company in order to run in the market or
industry in proper and appropriate way are known as drivers. Further, when a company which is
currently operating in on country and going to enter in other economy to earn profit is identified
as globalisation (What is globalisation?, 2017). There are different kinds of elements are very
helpful for the Iceland supermarket when it going to enter in china market and globalise its firm.
On the basis of such factors the management of Iceland can determine various strategies and
tactics for further business process. The drivers or key aspects of globalisation are delineated as
below:
6

 Political drivers: The respective aspect includes different rules and regulations for enter
in emerging market and helps in smooth functioning of business process. Here tariffs,
taxes and terms and conditions for export products and services are have to follow
Iceland supermarket. On the basis of the political driver the management can prepare
strategies after analyzing such rules by which it can become profitable. On the other side,
such drivers are sometime affect overall business process in negative way (Fischbacher-
Smith and Smith, 2015). For instance, if taxation rate is increase by governing body then
Iceland needs to pay more amount where net profit affects adversely. Technological drivers: Another aspect of globalisation is related to the technology by
which Iceland can produce better quality of services and products where more consumers
will attract and sales increase. In the current scenario, technology comes with new and
innovations within short period of time. The respective factor is helps to the Iceland to
produce effective products by reducing damage and wastage items. Hence, it can be said
that it is important and profitable driver by which it able to run in the retail industry of
china market. However, it charges high cost by where total cost and profit affects
negatively. Market drivers: In the market there are various kinds of elements are available which
helps to run the firm in the industry where it operates and generate revenue. Various
factors of market such as demand, supply, competitors, trend etc. on the basis of these the
Iceland supermarket determine prices of its services and products (Ferguson, 2014). For
example: in the market if there are demand is high of retail products then Iceland will
increase prices of goods. On the other side, when supply is high and demand is low then
more charges are taken by it. Competitive drivers: Those firms which provide retail products and services to the
customers are known as competitors of Iceland supermarket. While entering in china
market the company has to give response to buyers as per the rivalry firms. For instance:
in the china market of more number of rivalry firms are there then the Iceland company
has to reduce cost and prices of products. Apart from this, it has to provide unique and
differentiate goods which helps to attract customers enhance sales in the china market. Cost drivers: According to this, various costing and expenses aspects are to be considered
by the Iceland company. In order to attract higher level of customers the management of
7

Iceland has to make strategies by which it can control over the expenditures. When
current element will be under control then Iceland will easily able to reduce total cost of
production and pricing levels (Czinkota and Ronkainen, 2013). Hence, it is also one the
of the most widely driver to enter in emerging market and become globalise.
CONCLUSION
It can be carried out from the current study that international marketing strategies are
very helpful for the Iceland supermarket while it enters in emerging economy i.e. china market.
Various strategies which can be adopted by the Iceland are such as segmentation, targeting and
positioning, promotional activities, advertisement as well as social media. Further, tactics which
are employed by the Iceland in order to enter in new marker are like as market development,
exporting, joint ventures, diversification and product development. It can be concluded from the
globalisation part that several drivers help to run business are such as technological, political,
cost, market and competitive aspects.
8

REFERENCES
Books and Journals
Akaka, M. A., Vargo, S. L. and Lusch, R. F., 2013. The complexity of context: a service
ecosystems approach for international marketing. Journal of Marketing Research. 21(4).
pp. 1-20.
Christodoulides, G., Cadogan, J. W. and Veloutsou, C., 2015. Consumer-based brand equity
measurement: lessons learned from an international study. International Marketing
Review. 32(3/4). pp. 307-328.
Czinkota, M. R. and Ronkainen, I. A., 2013. International marketing. Cengage Learning.
Ferguson, Y. H., 2014. The history and dynamics of globalisation. Diplomacy &
Statecraft. 25(1). pp. 135-155.
Fischbacher-Smith, D. and Smith, L., 2015. Navigating the ‘dark waters of globalisation’: Global
markets, inequalities and the spatial dynamics of risk. Risk management. 17(3). pp. 179-
203.
Khojastehpour, M. and Johns, R., 2014. Internationalization and relationship marketing: an
introduction. European Business Review. 26(3). pp. 238-253.
Majaro, S., 2013. International Marketing (RLE International Business): A Strategic Approach
to World Markets. Routledge.
Mowforth, M. and Munt, I., 2015. Tourism and sustainability: Development, globalisation and
new tourism in the third world. Routledge.
Wilden, R. and Gudergan, S. P., 2015. The impact of dynamic capabilities on operational
marketing and technological capabilities: investigating the role of environmental
turbulence. Journal of the Academy of Marketing Science. 43(2). pp. 181-199.
Online
9

What is globalisation?, 2017. [Online]. Available through: <
https://www.theguardian.com/world/2002/oct/31/globalisation.simonjeffery> [Accessed
on 26th March 2017].
Zkjadoon, 2016. Types and Tools for International Marketing Strategies. [Online]. Available
through: <http://www.businessstudynotes.com/marketing/international-marketing/types-
tools-international-marketing-strategies/> [Accessed on 25th March 2017].
10