International Marketing Strategies for Asda: A Comprehensive Analysis

This report provides a comprehensive analysis of Asda's international marketing strategies. It begins by defining international marketing, outlining its scope and key concepts, and explaining the rationales for global expansion. The report then examines the opportunities and challenges Asda faces in international markets, and discusses various market entry criteria and strategies, including exporting, licensing, and partnerships, with their respective advantages and disadvantages. Furthermore, it explores the global versus local marketing debate, analyzes how the marketing mix is adapted in different international contexts, and evaluates various international marketing approaches and competitor analysis. The report concludes with recommendations on how Asda should structure itself to enhance its international opportunities. The report covers topics like EPRG framework, market analysis, competition, demand, distribution, and legal aspects. It assesses different strategies for market entry like exporting, licensing, partnerships and acquisitions. The report also analyzes the marketing mix and the global vs local approach in marketing.

International
Marketing
Contents
INTRODUCTION...........................................................................................................................1
P1: P1: Explain scope and key concepts of international marketing......................................1

P2: Discuss the rational for chosen organisation wants to market globally and define several
routs towards market they can adopt......................................................................................2
M1: Examine the opportunities and challenges of Asda in context of marketing
internationally.........................................................................................................................3
TASK2.............................................................................................................................................4
P3: Explain key criteria and selection process to know when to enter in which market.......4
P4: Describe examples of different strategies for market entry with considering benefits and
drawbacks for respective organisation...................................................................................5
M2: Implement market entry strategy and evaluate criteria for Asda ltd...............................6
D1: Describe critical analysis over international marketing including how organisation should
adopt marketing strategies......................................................................................................6
TASK3.............................................................................................................................................6
P5: Reflects an overview over key arguments in global vs. local debate...............................6
M3: Explain circumstances in adoption of global or local approaches for respective
organisation............................................................................................................................7
P6: Examine how elements of marketing mix are differing in context of Asda....................7
M4: Discuss how adapt marketing mix in different global markets......................................8
D2: Develop a critical evaluation of how marketing mix is applied to range of international
contexts...................................................................................................................................8
TASK4.............................................................................................................................................9
P7: Evaluate various approaches of international market in context of Asda........................9
P8: Compare home & international orientation or the ways to assess competitive outlining for
application of approaches.......................................................................................................9
M5: Examine several marketing approaches & competitor analysis in relation to Asda and
recommend how should operate internationally...................................................................10
D3: Provide recommendations on how chosen organisation should structure in order to
enhance opportunities in international aspect.......................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
International marketing is defined as global marketing of goods and services among
different countries that is important for expansion of business internationally. Planning &
execution process, promotional and distribution procedures of goods and services is also
worldwide (Cateora and et. al., 2020). International manager is one who is responsible for buying
and selling of goods & services across the borders of national boundaries.
Asda Stores Ltd. is British supermarket retailer that deals in fresh groceries, clothing &
home products. The company was founded in 1949 with it’s headquarter in Leeds, United
Kingdom. It works with large number of employees includes 1,65,000 with operating income of
791.7 million dollars.
This report is based on international marketing of Asda with considering of scope and
concepts of international marketing. Further rational and ways of adopting international market
for respective firm are explained within the report. Criteria and selection process to enter into
international market, different examples of entry strategies with suitable advantages and
disadvantages are also consist in report. Moreover, key arguments in global vs. local debate,
analysis on how marketing mix is differ in international context discussed within report. In
addition various international marketing approaches & comparison between home and
international orientation and ways to outlining competitors for implementation of strategies are
explained within report.
P1: P1: Explain scope and key concepts of international marketing.
EPRG Framework
Ethnocentric: These are considered as business entities based on belief that come
country is superior in order to maximise business profit and reducing costs or risks for
organisation (Cavusgil and et. al., 2018). These firms conduct limited research and ignore
opportunities from international markets.
Polycentric: These are the organisations and managers that who see each and every
country unique and consider business based on run locally. Polycentric means head office of
business organisation exercise little control over activities of each market.
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Regionocentric: These businesses see similarities & distinctions in different regions
worldwide and design strategies towards them in order to expand business and raise market share
and profits of firm.
Geocentric: These rare truly known as global players who recognise similarities and
differences between domestic & home markets seek serve efficiently. It is represents
combination of ethnocentric and polycentric views that reflects thought “think global & act
local”
Scope of International Marketing
Imports: One of the most common or used scope for international marketing is importing
goods and products from international organisations and resell them in order to serve needs and
expectations of customers. It brings growth opportunities without even investing huge amount on
developing unique items (Eteokleous, Leonidou and Katsikeas, 2016).
Exports: Another important ways to market goods and services internationally is to different
countries and charge premium prices including import charges from export country that leads to
bring global image of business and gain customer awareness at broader scale.
Contractual agreement: It refers as the scope of international marketing exposes that has
greater chances for business to engage in global markets. These agreements can be made in two
ways whether licensing, co-production or through technical assistance.
Joint venture: It shows collaboration between two brand for specified period of time that
generates opportunities of growth of both companies in order to raise market share, customer
base and many more.
P2: Discuss the rational for chosen organisation wants to market globally and define several
routs towards market they can adopt.
Rational for International Marketing
Increase sales: There are several reasons to enter into international or global markets
rising sales of firm is one of them. In terms of respective organisation through marketing of its
unique goods and products into UK.
Improve profits: Another prominent reason behind global marketing of goods and
products is due to business objective of profit maximisation; international marketing has
immense impact in rising profit of respective business through satisfying consumer needs with
impressive products (Javalgi and La Toya, 2018).
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Shot & Long-terms security: Business organisations want to secure business in long run
in order to ensure sustainability as well as short term security so as to deals with different
circumstances that affects business position and performance.
Increase innovation: It is also a reason to market business internationally. Extending
customer base through offering goods and products worldwide leads to raise financial
capabilities of business that is essential for technological development of business.
Economies of scale: Exporting or international marketing is referred as the effective way
to expand business with launching of products that are most widely accepted by customers of
different countries.
In terms of respective organisation should expand business in order to raise market share, brand
reputation, customer base and profit maximisation of firm that has prominent element required
for effective functioning of business.
Routs to Market
Selling online: One of the suitable rout to enter into international market is to sale goods
and products online through various modes for instance business websites, licensing with other
retailers (Ju, Jin and Zhou, 2018). Asda highly engaged in online selling in order to make it easy
and faster selling for both user and seller.
Opening of retail store: Another way of entry into global market is to develop own stores
fro assisting and influencing customer of buying. It is classical and still great way to make buyer
seller together in order to strengthen exchange process.
Trade show & exhibitions: Way to get customer attention and encourage them for buying
is to attend trade shows and exhibitions not only formulate direct connection with end-consumer
but helps in building valuable networks with customers. It is very useful way to entering into
global markets in terms of marketing of services.
Selling to retailer:
Pop-up shows: These are known as temporary shows can be set up at empty places for few
days or weeks are another way to entre in markets in order to market goods and services
effectively.
M1: Examine the opportunities and challenges of Asda in context of marketing internationally.
Although above discussion it is observed that there are several challenges comes under the ways
of international marketing of its goods or services. These challenges includes higher investments
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on research for knowing market trends, customer’s buying habits, availability of opportunities
etc. That has prominent impact in terms of global expansion of business.
TASK2
P3: Explain key criteria and selection process to know when to enter in which market.
Criteria for choosing International Market
In terms of respective organisation there are following factors need to be consider while
selecting of market in which market to enter in order to growth of business and ensure long term
sustainability (Kotler and et. al., 2018). These are considered below:
Market analysis: UK’s market is broader in terms, of size and covered wide area by retail
sector that creates huge opportunities for growth of respective organisation and has prominent
impact on business performance in international market.
Competition analysis: There is huge competition in retail sector of United Kingdom and
Zara, H& M are direct competitors of respective firm that brings risk and leads negative impact
on business.
Demand analysis: Customer’s buying habits in UK are shifted from premium to
essentials that lead to consumption of affordable and regular goods thus, in terms of Asda should
focus on geographical markets of UK where there is high demand for regular daily used
products.
Distribution channel: For selecting entry market for business distribution network plays
significant role in making effective choices. Asda should concentrate on developing effective
relationships with local distributors of UK as well as ensure online delivery of its products (Wu,
2016).
Legal, political & economical factors: Political stability, tax relaxation of country,
effective fundamental laws of nation in order to protect buyer-seller interest, slower economy
due to recession impacts has prominent aspects that affect respective business in significant
ways. This leads to great chances to enter into UK for future expansion.
Local culture & buying behaviour of consumer: Another factor that affects selection
criteria of respective organisation in order to enter into international market for expand business
includes cultural and social values of country. In terms of respective organisation should focus
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on effective research for analysing individual behaviours and then offering goods and services so
as to meet their expectations for business growth.
P4: Describe examples of different strategies for market entry with considering benefits and
drawbacks for respective organisation.
Entry Strategies:- There are variety of modes and strategies to enter into a market based on
structure, sources of funds required for entry, marketing capabilities and ownership of business
towards goods and products that has prominent impact on business performance and expansion
(Mathews and et. al., 2016). These strategies are considered as under with respective
organisational context:
Exporting: It means to send goods & products produced in one nation and sell to another
fro rising market share and customer base of business. It is can be choose by smaller
organisations due to its offering of degree of control over cost, risk and resources.
Advantages: It is less risky approach and generates huge opportunities in terms of growth
of new business. Another benefit of this strategy is to cost effectiveness, exporting existing
goods is lesser than developing of new products. It helps in balancing out of season demand.
Disadvantages: It has some drawbacks also it is associated with larger and difficult to
manage the stock while transporting from one country to another, distribution cost of exporting
involved in tax and duties.
Licensing & Franchising Another way to enter into a foreign market is through licensing
and franchising. In licensing refers as the agreement where licensor or firm provides goods and
products to licensee or export country that grand firm to use brand name, sales patterns etc.
Advantages: Licensing method of entering into new market it beneficial in terms of
taking competitive advantages and assesses new market with greater opportunity to raise
business.
Disadvantages: The major disadvantage of licensing strategy is losing the control over
intellectual property by licensor and exposed to intellectual property theft by licensee.
Partnership & Acquisition: partnership is also a effective entry strategy where two firm
are agreed upon mutual business decisions. It is significant approach where both organisations
have different culture from local markets. Acquisition refers as acquiring of lower firm by strong
organisation (Vellas, 2016).
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Advantages: Partnership is best way to enter into new market due to helping firm in
sharing of burden, assess knowledge, skills and maintain better contacts and relationships with
other business organisations in order to expand business.
Disadvantages: The biggest drawback of partnership is to lose the separate legal entity of
business, reflects unlimited liability for business owners. Another disadvantage of partnership is
it limits assess over capital of business for personal uses.
M2: Implement market entry strategy and evaluate criteria for Asda ltd.
In terms of respective organisation can adopt exporting strategy for entering into new
market or country. Asda is already a well known brand with having huge capacity to serve
different countries and have large customer base that plays prominent role in terms of increasing
demand of its goods & services. Thus, Asda has unique and value added products that leads to
effective entry into fresh market through exporting its products and satisfying consumer needs.
D1: Describe critical analysis over international marketing including how organisation should
adopt marketing strategies.
Asda ltd has immense capacity to serve needs and wants of customers from different
areas. As per above analysis on it is observed that respective organisation uses online selling
techniques to attract customers thus it rise demand of its products from different areas that leads
to exporting of goods suits as the business performance and market position. This leads to
effective implementation of entry strategies required for growth of business and ensures long
term sustainability.
TASK3
P5: Reflects an overview over key arguments in global vs. local debate.
In terms of Asda Ltd. key elements of business plans includes- objectives, financial nd
human resources, equipments, risk and barriers associated with implementation of suitable
strategy are considered as follows:
Business plan
Objective: In order to adopt exporting strategy of enter into different regions of UK, the main
objective of organisation is to maximise sales as 15% within limited period of time as 10 months.
Financial requirement: In terms of accomplishment of above business objectives respective
firm needs more minimal investments for exporting of its products as compared to capital
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investments needed for development of new and fresh products at local region (Moon and Oh,
2017).
Financial requirement: For successful accomplishment of business objectives Asda needs 45 %
finance from external funding sources like borrowings and 55% internal sources like retained
earnings.
Current business position: Asda develop effective quality of goods and products in order to
serve customers needs. It has huge demand not only from parent country but from other nations
also. Thus exporting is significant step of organisation so as to develop market share as well as
profit maximisation.
Governmental inferences: UK has stable politics and give preference to parent companies and
exercise law tax duties as well as it has effective relationships with neighbour countries thus it
will be beneficial for respective organisation to export its products globally.
Technological innovations: Asda invests huge capital in technological advancement of its
product manufacturing and distribution methods that has prominent impact on business growth in
international market where there is high demand of advanced technology companies.
Risk management: This factor of business plan in terms of global vs. Local market debate
reflects risks from unavailability of required finance, lengthy and time consuming legal
formalities of different nations that lead barriers to international marketing. It is essential to
analyse risks take measures to overcome it.
M3: Explain circumstances in adoption of global or local approaches for respective organisation.
As per above consideration of elements that plays important role while adopting of
strategies whether to enter into new market or focus on local market. In terms of respective
organisation there are a lot of circumstances occurs including lack of proper fiancé indulge in
transporting and distribution of goods and products from country to another, legal formalities
that consumed more time and efforts of business. To deal with these circumstances it is essential
to ensure availability of fund and other activities before taking final step.
P6: Examine how elements of marketing mix are differing in context of Asda.
Marketing Mix of Asda
Product: In terms of Asda should sell its unique and specific goods & products into different
areas of UK at affordable prices so as to build customer base of business that is essential element
of business (Oyewole, 2018).
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In terms of respective business should provide timely offers in order to retain lond customers as
well as attract new users.
Price: For offering goods and services in different regions of United Nation Asda needs to
concentrate on affordable prices and discount & lower pricing strategy in order to develop
customer base and raise sales volume that has prominent impact on business growth.
Place: This element of marketing mix of respective organisation plays significant role in
effective display of products and distribution of goods and products in effectual ways so as to
successful enter into several areas of country. This leads prevent firm from unnecessary cost &
waste occurs in transportation or warehousing of stocks.
Promotion: Last element of marketing mix of respective business leads to rising profit of firm
through getting more customers and satisfying their needs. Asda needs to promote and marketing
of its goods & services at everywhere possible through offline as well as online platforms
(Skarmeas, Zeriti and Baltas, 2016).
M4: Discuss how adapt marketing mix in different global markets.
According to above description over marketing mix of Asda Ltd it is evaluated that in
terms of making effective marketing and promotional strategies respective organisation should
focus on conducting proper market research about its existing position, capital investment,
buying habits of consumers, latest fashion and trends as well as effective modes of delivering
products to end users. This is important for long term sustainability and future growth of
business. Respective business should adopt lower pricing strategies, social media and other
online platforms for marketing and promotional activities, quick & fast delivery of items.
D2: Develop a critical evaluation of how marketing mix is applied to range of international
contexts.
Although above discussion it is concluded that respective business uses effective research
before implementing of any business strategy towards enter into international market so as to
measure growth opportunities and threats & find out ways to overcome these threats. It has
prominent impact on effective implementation of marketing mix strategies for accomplishment
of business objectives that has prominent impact on business growth necessary for long terms
sustainability of company.
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TASK4
P7: Evaluate various approaches of international market in context of Asda.
There are several marketing approaches that plays important role in engaged in
international market required for future growth of any business entity and maximise profits of
firm (Pedada, Arunachalam and Dass, 2019). In context of respective organisation following are
the approaches of international marketing:
Business to Business: One of the most used approaches of international market is to
business to business marketing of goods and products. In this method business organisations sell
their products to another firm that resell them to end users. It the way of promote business and
improve profits of business.
Inbound Marketing: Another important method of international marketing is to attract
customers through creating valuable contents and give them immense experience so as to fulfil
their needs.
Outbound Marketing: It is defined as the traditional method of marketing and
advertising of goods and products through TV, radio, print medium. This is impressive and most
attracting method of marketing.
Centralised vs. Decentralised Marketing: Centralisation marketing is considered as
important method of promoting and marketing of products based on creation and distribution
with 100% centralised on particular location. While decentralised is consists as marketing
channels that distribute own materials without centric on demand of location.
P8: Compare home & international orientation or the ways to assess competitive outlining for
application of approaches.
Competitive analysis of domestic vs. International marketing
Language & translation: In terms of domestic market of respective organisation shares same
language within domestic country. While, international marketing language is differ from
country to country in terms of organisation and customers as well. For instance Spanish is
differently spoken in Mexico as compared to Spain.
Cultural consideration: Culture and social values are varies upon worldwide and plays
significant role in getting competitive advantages based on cultural evaluation (Samiee and
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Chirapanda, 2019). For instance MacDonald’s uses beef products for some countries while it is
banned in Asian countries that affect the brand reputation.
Price & payment methods: Online selling has prominent role in facilitate currency converters or
payment processing system that allows multiple currencies and aware sellers about price
sensitivity. Price targeted differently on the basis of domestic and global market that provides
competitive benefits for firm.
Marketing methods: These are also varies as per country to country and important for
organisations to understand the needs of target audience. For instance some nations prefer to use
online websites, while other countries use direct mails as per effectiveness of marketing methods
Distribution methods: every country has some restrictions and laws regarding what products are
imported. Thus in terms of respective organisation it is important to know distribution laws and
regulations in order to successful implementation of international marketing strategies
(Schlegelmilch, 2016).
M5: Examine several marketing approaches & competitor analysis in relation to Asda and
recommend how should operate internationally.
There are various approaches of marketing strategies such as- use of social media
platform for effective international marketing of goods and services due to highly engagement of
customers in digital technology. In context of respective organisation should use social media
platforms like Instagram, Facebook, sponsorship from multinational brands, celebrity marketing
in order to enhance promotion and marketing of goods & products that contributes to raising
customer base as well as profit of enterprise.
D3: Provide recommendations on how chosen organisation should structure in order to enhance
opportunities in international aspect.
As per above discussion on marketing approaches and strategies for Asda Ltd it is
analysed that in order to maximise profit and customers base respective firms should focus on
rising promotional efforts that are customer as well as market centric. So as to make customers
aware and attract towards purchase of its products that has prominent impact on successful
accomplishment of business goals. this plays significant role in business performance and
ensures growth for long term.
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