Impact of Globalisation on International Marketing: Cadbury's Case

This report provides a comprehensive analysis of international marketing, focusing on the case of Cadbury. It begins with an introduction to international marketing and its significance, followed by an examination of the impact of globalisation on marketing activities. The report delves into the effects of globalisation on segmentation, targeting, positioning (STP), and the marketing mix elements (product, price, place, and promotion). It also explores the drivers of globalisation, including market, cost, government, and competitive factors. Furthermore, the report discusses international marketing strategies, such as the Ansoff Matrix, acquisition, and mergers. The application of international marketing principles on the marketing mix is then analyzed. The report concludes with a summary of the key findings, emphasizing the complexities and dynamics of international marketing strategies in the context of Cadbury's global expansion. The report highlights the importance of adapting marketing strategies to different international markets and the impact of globalisation on marketing activities.

INTERNATIONAL
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Impact of Globalisation on International Marketing...................................................................1
TASK ..............................................................................................................................................5
Application of International Marketing......................................................................................5
CONCLUSION................................................................................................................................6

INTRODUCTION
International marketing is a process that allows a business owner to sell their products
and services in more than one country. This segment enables manager to think beyond their
level. International Marketing is defined as implementation of marketing laws and principles in
more than one country according to the business environment of that particular nation
(Papadopoulos and Heslop, 2014). International Marketing is a multinational procedure of
scheming and implementing the concept of marketing mix like products, price, place, promotion
of though that is related with business idea & service to create exchanges that should cater need
and wants of people and association's objectives. Cadbury is worlds second largest confectionery
company that deals its operations in many countries and want to start their venture in other
countries also.
TASK
Impact of Globalisation on International Marketing
Globalisation is a procedure of integration and interaction between countries through
organisation's products and services which would be sold on other nation. This is a process
which is driven by international trade and investments in business operations and get help by
information technologies which make products or service popular in new countries.
Globalisation is an umbrella that provides shades to many other activities like social,
cultural, technological, economical, and political changes that are able in incresing level of
independence for an association by providing integration and interaction between people of two
or more than two nations. There are certain types of globalisation for example economic, skill,
technological and knowledge and globalisation of awareness of general problems.
Impact of Globalisation
Globalisation is having its impact on marketing activities. When a corporation wants to
go out side from domestic nation then it takes supports of globalisation and then entire marketing
activities would get affected with this aim of organisation. Globalisation is a part of business
expansion and whole marketing activities revolve around this if business venture wants to starts
their operations in other countries. There are some impacts which globalisation leaves on
marketing activities and these impacts are stated as below:
Effect upon STP: When Cadbury decided to go out of their parent nation then they
firstly decided where they will go (Morschett, Schramm-Klein and Zentes, 2015). I t means
1

managers of company did market segmentation according to their products and regulations of
other country. For example, Cadbury wants to launch its chocolate in any Asian country then
superiors conducted a market research and found that they can launch their product in India
because people who live in this nation have sweet tooth and most probably would love chocolate.
Here due to globalisation, segmentation of market happened by considering other nation as
because of globalisation geographic area for company to serve their products has been increased.
After segmentation then people would be target according to their per capita income and and
according to tradition and culture of country. Internationalisation has changed pattern of setting
targets for association. All marketing activities like positioning of products would get done
according to nature and type of population of other country. Due to globalisation, scope of
marketing activities has been increased (Kotabe and Helsen, 2014).
For example, Cadbury's dairy milk is a global product and first company segmented its market
according to age group like youngsters and then target them as they can give dairy milk
chocolate as gift to their friend specially to girlfriend or boyfriends and then company positioned
their products as it can be a valentine day's gift to friends. This type of action is a successful task
of Cadbury and company well established their footprints in marketplace of India.
Effect upon Marketing Mix: When a product is equally valuable for every consumer
than it is called as global products. When Cadbury was running its activities according to nature,
taste and preferences of consumers but nowadays, management has changed their strategy and
made their products globalise and due to this nation area of international marketing activities has
been increased because there is no need to change item before launching it in other and brand-
new market as area of selling products has been enlarged and proper implementation of strategy
would go wider.
Price: Globalisation has increased market for marketing departments and this section is
growing well. Internationalisation increases task for marketing department because management
has to think wider before setting a standard price for every nation so that every type of consumer
could make purchases for chocolates and biscuits. This is a complicated task before setting price
traditional cost process like fixed and variable cost should get taken into consideration.
According to globalisation, all prices should be fixed by considering all aspects so that research
program could not get done according to nation (Samiee, Chabowski and Hult, 2015).
2

Place: Due to internationalisation, a prominent strategy for placing products should be set
so that it could launch in any country with lesser changes. A globalise product means that item
which is similar for every nation. This action reduces complexities of marketing department but
on the other hand overall duties of placing a common item according to need of client is a quite
complicated action for marketing manager. Hence it is clear that due to globalisation, activities
of international marketing has been increased (Demangeot, Broderick and Craig, 2015).
Promotion: A global item is a common thing which is same for every type of customer
but promotional activities could not be the same. So it is clear that to promote items and facilities
of Cadbury a remarkable promotional strategy should be formulated so that it could address
actual consumers for profits. In this section, activities of marketing department has been grown
up because they have to think in broader manner to formulate such tactics in different nations.
For example, Cadbury can promote their mission statement that “Cadbury means Quality”. By
taking help of this tag-line association can promote quality of products among customers and
clients could get aware about functionality of item so that without any second thought client
could make purchase of this.
Drivers of Globalisation
There are many drivers that bring globalisation in Cadbury company.
Market drivers: This section consist following parts but bot bounded with these points
points only. When customer possess common needs and wants and this factor also comprises
several aspects that are stated below:
 Global customers: life style and taste plus preferences.
 Global Distributor & brands.
 Global marketing and promotion message
 Emergence of countries as consumer opportunities.
Cost Drivers: This includes several factors that are responsible for increasing
globalisation in Cadbury company. These factors are listed below:
 Economies of scale and in addition to learning curve effect.
 Sourcing efficiencies and and favourable logistics.
 Differences in country costs including exchange rates of a currencies.
 Accelerating innovations in technologies at higher costs (Skarmeas, Zeriti and Baltas,
2016).
3

 Changes in product life cycles.
Government Drivers: This section includes several points and all these factors are stated
as beneath:
 Reduction in tariffs
 Growth of compatible technologies.
 Uniform or common marketing regulations.
 Regulation of host government country.
Competitive Drivers: This section consist various points which are accessed as follows:
 Increment in world trade levels
 New competitors
 Global Networks in few countries.
 Transferable rivalry benefits.
Above are some drivers that are responsible for bringing criteria of globalisation in
Cadbury company. These some aspects which have wide impact upon growth of international
marketing activities because internationalisation is lesser concept than globalisation (Hoppner
and Griffith, 2015).
International Marketing Strategies
There are two kinds of tools that have their usefulness in strategy formulation before
making entry in new market i.e. a novel country. Both of these countries are stated as beneath:
Ansoff Matrix: This method is having four criteria that is helpful in identifying a market that
must have identical opportunities to run a business operations. These four aspects are described
below:
Market Penetration: It means when a firm wants to launch its existing product in current
marketplace for fulfilling purpose of diversification. In this product is introduced with some
extra features to retain market share.
Market Development: When new product is launched in existing marketplace for
diversification and this action tells that how much opportunities are present for existing
company. In this segment company knows about opportunities and threats (Kanibir, Saydan and
Nart, 2014).
4

Diversification: When new product is launched in new market is called as diversified
strategy of a firm. This tool is helpful in capturing a new market which has lots of scope
identified for corporation.
Product Development: When a novel item is introduced in current market then it is called
as company made a new product with some remarkable development. This type of strategy is
helpful because company knows all risk factors that are present in market and can make further
decisions on the behalf of this.
Acquisition: When a large company acquires a small size organisation for forward or backward
integration then it is called as acquisition. This strategy is most useful in the case of market and
business expansion. Formulation of this type of strategy,everyone can not make in tehir busienss
as it requires higher amount of financial resources and lots of time and highly skilled strategic
manager who can formulate this type of tactic (Kraus and et. al., 2016).
Merger: When two firms collaborate with each other two share their business operations in order
to complement each other then it is called as merger. This strategy is done when both
organisations are not doing well in industry and they want to compete with other large size
corporation. For example, if Cadbury collaborated with any other confectionery firm in order to
use their successful products for increasing brand value of corporation is called as merger.
TASK
Application of International Marketing
Impact of Marketing Strategies on Marketing Mix
Marketing mix a tool that comprises all marketing activities in order to make them
systematic for excellent execution of association and these aspects also reflects impacts of
international market. Elaboration of all these factors are as follows:
Product: In this section, according to globalisation standardise product should be
manufactured. In this section product put whole world on same page and according to item
Cadbury can launch their product in any country because a standardised item is developed.
Price: To bring this criteria in international marketing then a prominent rate for products
should be set by considering all aspects that are related to that particular country (Samaha, Beck
and Palmatier, 2014). It should be ensured by management of company there should be not
major changes when price is set country to country.
5

Place: A prominent placement of product should be chosen so that proper placement of
item could happen in the mind of consumers. This section belongs that when firm is going to
launch its business operations internationally then placement of product would get happen
according to nature and available tool of that particular nation (Gnizy and Shoham, 2014).
Promotion: Task of marketing department get increased when organisation introduced
their product in new nation because all publicity stunt would be attained according to availability
of resources and techniques. For example, if electronic media is not present in poor countries
than promotion would get done by other method like print media.
Above analysis is shown that when Cadbury did not went on business expansion then
their level of all functions were less but now a days when organisation adopted expansion of
business then it is clear that level of working of marketing department went hike. Marketing mix
strategy for a company before introduction of internationalisation was less but now scope
become wider.
Marketing Entry Strategies: Due to application of internationalisation, marketing activities
become more complex and static because of this internationalisation, standardisation has been
brought in products and services. International marketing have lots of impact like this in
marketing entry strategies of Cadbury (Choi and Yeniyurt, 2015).
CONCLUSION
This report is summarised as that international marketing a process that is done on several
basis like economically, skill basis, technologically and socially. This assignment give focus on
application of internationalisation on marketing activities are vital & important and on the other
hand globalisation is a factor that put the entire world on same page and brings equality in
actions of all functional departments of corporation.
6

REFERENCES
Books & Journals
Choi, J. and Yeniyurt, S., 2015. Contingency distance factors and international research and
development (R&D), marketing, and manufacturing alliance formations. International
Business Review. 24(6). pp.1061-1071.
Demangeot, C., Broderick, A. J. and Craig, C. S., 2015. Multicultural marketplaces: New
territory for international marketing and consumer research. International Marketing
Review. 32(2). pp.118-140.
Gnizy, I. and Shoham, A., 2014. Uncovering the influence of the international marketing
function in international firms. International Marketing Review. 31(1). pp.51-78.
Hoppner, J. J. and Griffith, D. A., 2015. Looking back to move forward: a review of the
evolution of research in international marketing channels. Journal of retailing. 91(4).
pp.610-626.
Kanibir, H., Saydan, R. and Nart, S., 2014. Determining the antecedents of marketing
competencies of SMEs for international market performance. Procedia-Social and
Behavioral Sciences. 150. pp.12-23.
Kotabe, M. and Helsen, K., 2014. Global marketing management.
Kraus, S. and et. al., 2016. Standardisation vs. adaption: a conjoint experiment on the influence
of psychic, cultural and geographical distance on international marketing mix
decisions. European Journal of International Management. 10(2). pp.127-156.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Strategic international management (pp.
978-3658078836). Springer.
Papadopoulos, N. and Heslop, L.A., 2014. Product-country images: Impact and role in
international marketing. Routledge.
Samaha, S. A., Beck, J. T. and Palmatier, R. W., 2014. The role of culture in international
relationship marketing. Journal of Marketing. 78(5). pp.78-98.
Samiee, S., Chabowski, B. R. and Hult, G. T. M., 2015. International relationship marketing:
Intellectual foundations and avenues for further research. Journal of International
Marketing. 23(4). pp.1-21.
Skarmeas, D., Zeriti, A. and Baltas, G., 2016. Relationship value: Drivers and outcomes in
international marketing channels. Journal of international marketing. 24(1). pp.22-40.
7