EduQual Diploma: International Marketing Management for GREGGS PLC

This report provides a comprehensive analysis of GREGGS PLC's international marketing strategy, focusing on its expansion into the UAE market. It begins with an introduction to international marketing and explains the rationale behind firms engaging in such activities. The report then presents a PESTEL analysis of the UAE market, evaluating political, economic, social, technological, legal, and environmental factors relevant to GREGGS PLC's planned introduction of gluten-free and organic bakery items. A SWOT analysis assesses the strengths, weaknesses, opportunities, and threats associated with this new product line. Furthermore, the report outlines a detailed marketing plan, including objectives, marketing mix (product, price, place, and promotion), international marketing research techniques, market entry strategies (joint venture), and distribution channels. The report also identifies and evaluates the target market, and concludes with an environmental audit of GREGGS PLC and an evaluation of its strategic position within the context of international marketing and entrepreneurship.

International Marketing
Management, Entrepreneurship
and Innovation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Explain why firms develop international marketing, and prepare a PESTEL analysis of a
chosen foreign market for identified products/services..........................................................1
Generation of innovative product idea along with opportunity evaluation through SWOT. .4
Devise an outline marketing plan for a foreign market..........................................................5
TASK 2............................................................................................................................................6
Evaluate international marketing research techniques for a chosen market...........................6
Methods of choice for entering market place.........................................................................6
Choice of distribution channels for export of identified products / services..........................6
Identify & evaluate a target market for new product and selection of market segment.........7
TASK 3............................................................................................................................................7
Environmental audit of GREGGS PLC and evaluation of its strategic position....................7
REFERENCES..............................................................................................................................12

INTRODUCTION
International marketing can be referred to as the procedure of application of marketing
techniques as well as principles on a worldwide scale with a view to enhance the market share of
organisation. While gaining access into a new market place, the sole motive of an enterprise is to
identify as well as tap the consumer behaviour existing there and thereby influence them to make
a purchase of organisational offerings (Akaka, Vargo and Lusch, 2013). This becomes possible
only when the entrepreneur is keen to leverage innovations within the enterprise to appeal to new
base of citizens.
The present project is based upon GREGGS PLC which is the biggest bakery operating
within the confines of UK market. It is globally renowned and offers a wide variety of products
to customers to build a loyal base of people. The management of this entity seeks to gain access
to a new market place and carry out international marketing thereby to enhance its reach and
market share. The report consists of the reason behind firms conducting international marketing
and generation of ideas for development of new product or service. Further, it includes business
proposal for the new product or service. Lastly, the project constitutes Porter’s Five Force
analysis and PESTLE analysis to determine the strategic positioning of company.
TASK 1
Explain why firms develop international marketing, and prepare a PESTEL analysis of a chosen
foreign market for identified products/services
In the modern era, companies across the globe leverage international marketing owing to
a number of reasons. Usually, organizations go worldwide in light of the fact that they need to
develop or grow activities. Some other reasons constitute creation of more income, recruitment
of new skilled individuals, leveraging differentiation, lessening costs and capitalising upon
investment opportunities (Beck, Chapman and Palmatier, 2015). Once in a while, governments
also boost ventures into worldwide markets so as to facilitate economic development. Thus, it
can be said that going international allows firms to enhance their market share as well as their
reach amidst people.
GREGGS PLC is a renowned brand name within the confines of UK today. Looking
upon the popularity of this brand in domestic market as well as some other nations across the
globe, the management of this bakery firm has decided to facilitate market expansion by
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leveraging international marketing. The market that has been selected by GREGGS PLC is UAE.
To successfully appeal to the people of this nation, the management of company has decided to
diversify organisational offerings by incorporating gluten free and organic bakery items. In this
regard, it is important for the firm to analyse the viability of business environment of UAE to
feasibly gain access into this marketplace and inflate the existing level of revenues of GREGGS
PLC. For this purpose, PESTLE analysis has been conducted by the respective bakery which
would provide assistance in development of effective strategies and tactics for flourishing within
the confines of UAE. Thus, the analytical framework in relation to identified product segment
(gluten free and organic bakery items) is presented as follows:-
Political Factors:
Over years, the legislature of UAE has been indicating inflating worry in connection to
expanding number of diabetic and obese patients within the confines of nation. This inflates the
demand for organic and gluten free bakery items within this market. According to a research
conducted by Mintel, UAE has emerged as the major market for gluten free food offerings,
especially within the bakery segment (What are the next major markets for gluten-free? UAE
leads growing Gulf interest, 2019). Thus, coming up with such healthy offerings in UAE by
staying lined up with the wellbeing related issues witnessed by residents of this country is a
remarkable idea.
Economic Factors:
The economy of UAE is magnificent yet an enormous extent of populace of this nation is
hit with diabetes and / or obese. Thus, the idea to launch gluten free or organic items of bakery
segment is effective and coincides with the health conscious nature of people belonging to this
region. This would appeal to such proportion of Emiratis who are not able to consume bakery
items because of the large extent of gluten or other harmful ingredients present in them, which
inflate the probability of individuals getting inflicted by diabetes and obese (Bianchi and
Mathews, 2016).
Social Factors:
The inhabitants within the confines of UAE over the time have generally been worried
about their wellbeing because of rising number of diabetes and obese struck individuals in the
domestic territory. Thus, organic and gluten free bakery offerings would meet the needs and
demands of such individuals. Further, social media has emerged as one of the growing trends
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within UAE, with Emiratis spending approx. 2.5 hours of their day upon this. In this regard, out
of the total population of 9.61 million, around 9.52 million individuals are active social media
users (UAE SOCIAL MEDIA USAGE STATISTICS (2019), 2019). Thus, social media marketing
can be leveraged to effectively appeal to the residents of UAE.
Figure 1: Social Media Statistics of UAE
Technological Factors:
UAE is a technologically advanced market which presents opportunities to companies to
leverage innovation and appeal to the people of this country. In this relation, gluten free and
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organic bakery offerings is also regarded as innovation and thus it would significantly gain the
attention of people of this market.
Legal Factors:
The growing concerns regarding the quality standards and wellbeing of people of UAE
have put the operations of food & beverage companies at stake. To deal with this, it is essential
that the organic and gluten free bakery items comply with the nutritional and other health
requirements of law (Baker and Saren, 2016).
Environmental Factors:
The worries of people regarding preservation of environment and nature would be taken
into account while launching the new healthy bakery offerings within UAE. Thus, minimal
carbon footprints would be released at the time of production and sustainable practices would be
adopted to save energy and water also.
Generation of innovative product idea along with opportunity evaluation through SWOT
The innovation product or service that has been proposed to be launched by the
management of GREGGS PLC within UAE is gluten free and organic offerings. The viability
and opportunity evaluation of this idea is done by the respective bakery with the help of SWOT
analysis.
Particulars Explanation
Strengths The strength for GREGGS PLC while launching the new healthy offerings
within UAE would be the initiative taken by entity to stay aligned the
needs and demands of consumers in the selected nation. This would
provide aid to the enterprise in appealing to the population of UAE and
retaining them for a long period of time (Brouthers, Nakos and Dimitratos,
2015). Further, the decision to offer these healthy offerings at reasonable
prices would serve as one more strength for GREGGS PLC.
Weaknesses Extensive level of rivalry prevailing within bakery market of UAE would
be the only weakness for GREGGs in new international market place.
Opportunities The opportunities associated with the gluten free and organic bakery
offerings would be to sell them at premium prices once these become
popular among the residents of UAE.
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Threats The increment in cost owing to the usage of organic as well as healthy raw
materials for preparation of new bakery offerings would act as a major
threat for GREGGS PLC while operating in UAE.
Devise an outline marketing plan for a foreign market
The marketing plan developed by GREGGS for gaining entry into the bakery market o
UAE is presented as follows:-
Objectives: The objectives that are laid down by the management of GREGGS PLC for
UAE, are as follows:-
 To increase the global market share of entity by 12% by the end of 6 months from
entering UAE.
 To enhance the revenues of company by 20% within next 1 year by leveraging extensive
international marketing.
Marketing Mix: This is the theory which provides assistance to an organization in
devising an effective marketing strategy through which a firm can enhance its existing market
share with a view to reach to the top within the confines of concerned sector (Camp, 2015).
GREGGS PLC has explained the marketing mix with the help of 4Ps, as follows:-
Element Description
Product GREGGS PLC will offer its bakery items in the market of UAE which special
focus upon its new healthy offerings in terms of gluten free and organic items.
Price The offerings will be initially offered at moderate prices but as the entity will
become famous in the selected international market, it will increase its prices to
grab a large market share.
Place UAE has been selected as the place to conduct international marketing of
healthy offerings of GREGGS PLC as the people here are health conscious but
like to consume bakery items.
Promotion The marketing of this enterprise would be done by way of social media
marketing and other traditional techniques.
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TASK 2
Evaluate international marketing research techniques for a chosen market
The ways to carry out international marketing research are identified to be Desk Research
and Survey Research. Hereby, the former seeks to collect data by way of documentary sources or
other types of published and unpublished sources (Fortunato and Alter, 2015). On the other hand,
the latter seeks to collect key information about international marketing by leveraging the usage
of survey results and findings. In this regard, to find information about UAE, Desk research was
conducted which provided knowledge of the market gap related to provision of healthy bakery
offerings. This facilitated the firm to generate idea and come up with gluten free and organic
bakery items for the customers of UAE.
Methods of choice for entering market place
There can be various market entry strategies that can be effectively adopted by GREGGS
PLC to enter successfully in the market of UAE with its gluten free and organic offerings. Such
strategies are discussed below:-
Franchising: It is a type of partnership agreement which can be used for rapid expansion
of business enterprise into new market.
Joint Venture: This is a particular form of partnership which leads to formation of a
third company. Herein, two businesses come together with an aim to assume risks and share
profits collaboratively.
Partnering: Here, company enters into partnership with one or more firms to facilitate
easy expansion into new market. The partnership enterprises are generally local companies that
possess huge customer as well as corporate contacts which can be beneficial in market entry
(Hoppner and Griffith, 2015).
For gaining entry into UAE, GREGGS PLC would make use of Joint Venture as the
market entry strategy as this provides access to more resources, specialised staff, technology and
financial resources to attain growth in near future.
Choice of distribution channels for export of identified products / services
The management of GREGGS PLC has decided to export the organic and gluten free
bakery offerings by making use of indirect exporting strategy. Hereby, the services of an Agent
would be used who would charge them commission in return of the services provided by them.
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The indirect exporting strategy would provide aid to GREGGS PLC in inflating its reach and
thereby enhancing its revenues as well as profits.
Identify & evaluate a target market for new product and selection of market segment
As GREGGS PLC is entering UAE, it is important for the firm to identify as well as
evaluate the target market segment to capitalise upon. For this purpose, the corporation has made
use of STP model presented as follows:-
Segmentation: The respective bakery firm would segment the market in accordance with
behavioural segmentation.
Targeting: The management of GREGGS PLC has decided to target the health conscious
people of UAE who possess likelihood towards consumption of bakery items.
Positioning: The innovative and healthy offerings of GREGGS PLC would be placed
within the inhabitants of UAE by way of social media marketing, social media, gift vouchers and
other attractive coupons.
TASK 3
Environmental audit of GREGGS PLC and evaluation of its strategic position
It is essential for a firm to carry out environmental audit at rapid intervals of time so as to
determine its strategic position within the market place. In this regard, companies across the
globe make use of several business management and strategic planning models (Jean and et. al.,
2016). With respect to this, the management of GREGGS PLC is making use of PESTEL and 5
Forces analyses as these will provide assistance to corporation in ascertaining market
positioning. The discussion over both the models is given underneath:-
PESTEL Analysis
It is a comprehensive business model which is used by firms while carrying out strategic
planning as well as management. This framework renders aid to a company in gaining an insight
into the factors pertaining to its external business environment. On the basis of this analysis, an
entity can devise effective strategies and thereby attain competitive edge to surpass the rival
firms within same sector. In this relation, the management of GREGGS PLC has made use of
this analytical model to ascertain the situations prevailing at market place. This analysis is done
as follows:-
Variables Detail
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Political  The politics within the confines of United Kingdom takes place
under the jurisdiction of multi party system which has been ruling
the nation since almost a century now (The emergence of a genuine
system of multiparty politics in the United Kingdom is a positive
development for British democracy, 2019). This implies the
prevalence of consistent policies over the period of time, thereby
facilitating the company to effectively carry out its operations at
market place.
 Terrorism, war at international level, instability of political system
and strict trade regulations may severely affect the operations of
GREGGS PLC in the long run.
Economical  Majority of the markets in which GREGGS PLC operates across the
globe are developed. These tend to render aid to the respective
bakery organisation in attaining a competitive edge by using the
developments as well as features of such countries.
 British exit from European Union is one of the most adverse aspects
for the functioning and operations of GREGGS PLC as UK is the
leading revenue source for this bakery (Greggs warns ‘disorderly’
Brexit could undermine strong sales performance, 2019).
Social  Looking upon the changing needs as well as preferences of people
over the period of time, GREGGS PLC offers products which are
healthy and can be consumed on a frequent basis.
 Social media marketing is an emerging trend among the global
citizens. Taking this into account, the respective bakery firm
leverages presence on various platforms such as Facebook, Pinterest,
Twitter and so on, to reach out to a large base of people and thereby
inflate its profits (How Greggs uses Facebook, Twitter, Pinterest
and Google+, 2019).
Technological  The advancements taking place within technologies facilitate
GREGGS PLC to come up with unique systems and techniques. In
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past, this bakery has combined payment as well as reward in one
mobile application for enhancement of customer loyalty and
convenience (GREGGS Rewards, 2019). Further, the organisation
also initiated the execution of latest release of SAP IS-Retail
technology for enhancement of inventory forecasts as well as
replenishment.
 The application of new technologies as well as techniques tends to
increase the overall cost of operations for GREGGS PLC.
Legal  GREGGS PLC operates in a legalised manner, thereby reducing the
scope of imposition of fine or penalty for non-compliance.
 The laws that need to be followed by this bakery primarily are
regarded to be Bread Weights and UK Bread and Flour Regulations
(Legislation, 2019).
Environmental  Over the course of time, there has been a pressure on companies to
adopt eco-friendly practices and techniques. Looking upon this,
GREGGS PLC has taken initiatives to reduce plastic, save energy as
well as water, decrease wastage and deflate carbon emissions.
(GREGGS. Social Responsibility. Environment, 2019)
Porters Five Force Analysis
This is one of the most effective frameworks that are taken into use by a corporation to
gain knowledge of the attractiveness of a market. This model provides information to a company
about the intensity of rivalry prevailing within the confines of a corporate industry. Through the
usage of this model, the management of an entity is able to analyse the position of enterprise
within a specific market as opposed to the key market players in same sector. GREGGS PLC has
used this modular framework to gain an insight into the current state of bakery market across the
global periphery. The analysis of this model is presented with respect to GREGGS as follows:-
Threat of New Entrants - High
The intensity of this force within the confines of bakery sector is acknowledged to be
high as the capital required to start a new bakery business is low. Further, the restrictions or laws
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pertaining to this market are minimal. This poses risk to the sustainability and market positioning
of GREGGS PLC. To encounter this, the management of the respective firm would put due
emphasis over stipulation of high quality offerings at market place. This would provide aid ton
the corporation in developing as well as maintaining extensive brand image and retaining the
customers for a long period of time.
Threat of Substitutes – Low
The intensity of this factor pertaining to industrial analysis framework with respect to
bakery market is regarded to be low for GREGGS PLC. This is so because the organisation
already is the leading bakery within United Kingdom and is renowned in several other countries
for its high quality and diversified offerings. This deflates the extent of this force for GREGGS
PLC as the purchase behaviour of customer automatically gets influenced to buy unique and new
products, which are already offered by the respective bakery. This aids the enterprise in attaining
competitive edge at market place.
Industrial Rivalry - High
The intensity of this factor in relation to bakery sector is recognised to be high. This is
owing to the presence of large number of companies within bakery market. Some of the top
notch companies pertaining to the concerned corporate sector are acknowledged to be Pret A
Manger, Finsbury Food Group, Treasury Wine Estates, Grupo Bimbo and Food Genius. To deal
with such extensive rivalry prevailing within the confines of bakery industry, the management of
GREGGS PLC offers diversified products to customers, thereby influencing them not to switch
to other brands (Kansiime and et. al., 2018).
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