International Marketing Plan for Oak Cash & Carry Ltd. - A Report

This report provides a detailed analysis of international marketing strategies for Oak Cash & Carry Ltd, a UK-based retailing brand. It defines international marketing, highlighting its differences from local marketing, and assesses the scope and key concepts of global marketing. The rationale for Oak Cash & Carry to market internationally is explored, focusing on gaining competitive advantages, increasing profitability, and enhancing the customer base. Various international marketing entry routes, such as franchising, licensing, joint ventures, and direct/indirect exportation, are described, with a justification for licensing as the most effective mode for Oak Cash & Carry. The report evaluates key criteria and selection procedures for choosing a global market, including environment and market analysis, competition analysis, distribution channels, demand analysis, and test marketing. Market entry tactics are defined with specific examples, and suggestions are provided on how and why the firm should enter the international market. The differences between global and local marketing are explained, along with an overview of key arguments in the international versus local debate. Finally, the report clarifies international marketing methods, home and global orientation, and ways to assess competitors. Desklib provides access to similar solved assignments and resources for students.

International Marketing

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Defining international marketing and highlighting main difference to local marketing.............3
Assessing scope and key concepts of global marketing..............................................................3
Explaining rationale for Oak Cash & Carry to need to market internationally...........................4
Describing various international marketing entry routes and which one supermarket should
adopt.............................................................................................................................................5
Evaluating key criteria & selection procedures that firm should utilize when considering which
global market to enter..................................................................................................................5
Defining what a market entry tactic is using specific examples..................................................6
Conclusion and suggestions on how and why firm should enter international market...............7
Explaining difference between global & local marketing...........................................................7
Presenting an overview of key arguments in international versus local debate..........................8
How Product, Price, Promotions and Distribution Differs in Variety of International Context..8
Explaining and Analysing Various International Marketing Approaches.................................10
Comparing Home and International Orientation.......................................................................11
Recommendations......................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
International marketing is defined as application of useful, essential and beneficial
promotional principles by the companies whether it is small or large in more than one
progressive nation. It is one of those beneficial operational activities that provide a lot of
advantages to an organization and their stakeholders. The current assignment will be based on
Oak Cash & Carry Ltd, which falls under the category of retailing brand in the UK. The chosen
company is an essential part of retailed and grocery product merchant wholesalers in the
Banbury. It has targeted caterers, retailers, offices and off-licences as customers, who are able tp
build trustworthy relationship with company. The study will explain scope and essential concepts
of international march and rationale for firm to do that. It will define different global marketing
entry routes, specific one in firm context and selection as well as criteria that it should utilize
while considering which global market to enter. Furthermore, the report will justify market entry
tactic, suggestions, differences between local and international advertising and arguments based
on international vs local debate. Lastly the assignment will clarify international marketing
methods, home and global orientation along with ways to assess competitors.
MAIN BODY
Defining international marketing and highlighting main difference to local marketing
In the recent time, for purpose of obtaining competitive advantages and more benefits, a
company conduct varied useful and beneficial activities. For example, international marketing is
one of those actions and practices that provide key benefits to firms. It refers to any advertising
activity that occurs across national boundaries, in appropriate and systematic manner. It can be
said that international marketing is quite different to local practice, on the basis of certain things.
For instance, while conducting practice of promote a product or service at global level, it is quite
essential for marketers and a brand with they work to make huge investment, while it is not
important for them to do the similar investment during process of local marketing as they may
utilize traditional and cost effective approaches.

Assessing scope and key concepts of global marketing
The scope of international marketing is wide, because it included varied terms such as
exporting products and services across national boundaries, where target market tend to use and
buy a quality item or service according to their needs. It encompasses key activities such as
establishing a branch in foreign market, join venture, licensing arrangements, collaborations and
more.
Orientation to abroad trade, sales in the foreign market and orientation to global
marketing are the best examples of those concepts that over in term of international marketing.
Orientation to foreign trade is defined as conceptualization of trading process that begin from
nation market and end at global level, which make a company productive and profitable
(
Differentiate among the three international marketing concepts, 2021). Other concepts along
with current one, may require additional and essential resources that in return provide firm
chance to conduct global marketing activity in effective and profitable way. Sales in foreign
market is also an international marketing concept, that drive the attention of a company toward
entering to new market or geographic area.
Explaining rationale for Oak Cash & Carry to need to market internationally
In the corporate world, each organization or venture tend to enter into international
market for specific reason. In case of chosen company, management may take initiative to
market globally for purpose of gaining competitive advantages, increasing profitability and
enhancing customer base, even wider than its rivals that are accessible in the retail industry. By
entering into international market, firm may take pleasure working with those stakeholders who
are able to conduct and follow CSR practice, as it may put positive impact on its brand image in
the market, which is quite essential and beneficial for it (
Reasons Why Companies Go Into
International Marketing, 2021). Along with these reasons, organization may take initiative to
market globally because it seeks to widen its market size and get access capacity. All the reasons
may drive its attention and concentration toward developing effective and useful plans, through
which firm may enter at global level or within new nation where success & growth chances are
accessible in bulk (Tolstoy, Nordman and Vu, 2021). It can be said that a firm take pleasure of
global expansion in term of building wide workforce, among which each candidate hold power

of achieving common aim and objectives, as they have set of skills, knowledge and better
experience that contribute in their as well as business growth.
Describing various international marketing entry routes and which one supermarket should adopt
 Franchising: It is another form of licensing that firms may consider and puts together a
package of successful and useful ingredients that made them a progressive brand
successful at national and international level.
 Licensing: It is another source of market entry, which play vital role to make
organizations able to obtain an approval from governmental bodies, regarding
establishing venture and running operations in new nation.
 Joint venture: It may drive the attention of two companies toward working in a
collaborative form, which in return provide benefit of increasing sales and profitability.
 Direct or indirect exportation: It is also included in list of market entry mode, which a
company may select according to their strength, operational effectiveness and other basis.
 Justification: Oak Cash & Carry Ltd, and its management may take approach to utilize
the best and most effective mode of global market entry and that is Licensing, which
enable firm to grow rapidly and progressively, that is quite essential for it to do so. With
this model of entry firm may take benefit of creating a chance that they may grab in
effective manner.
Evaluating key criteria & selection procedures that firm should utilize when considering which
global market to enter.
The global market have criteria that new company has to know about and process they
should follow before entering the market. Here is the evaluation of key criteria and selection
procedures that the company may follow in order to enter global market:
 Environment and Market Analysis: An analysis of the market's GDP growth, country
risk, political and other factors, market appeal and possible difficulties during operations
firm could face should analyse.
 Analysis of Competition: Identification of competitors and analysing their evolution,
sales and current condition in the market should be done to make appropriate strategies.

Detecting factors that distinguish them in the market such as price, channels, financial
position, plans and expansion strategies.
 Distribution Channels: Tracking supply chain that would be used by the company is very
important to reach the potential customers. There are different structure that could be
used in different countries. Possible distribution channels that they can use are, local
distributors in target market, the internet, delegated companies, joint ventures and many
more (Min, Kim, and Zhan, 2017).
 Demand Analysis: For a company who is entering a new market they should be aware
about the current demand of their products or service and its expected evolution that
could help them achieve their goal to success.
 Test Marketing: The market should be tested on a smaller scale by launching sample
products and taking their feedback from customers will help them make strategies and
make changes.
 Commercial Production: Once all the steps are taken the company can start their actual
operations by applying strategies and drive to success by choosing exact market they
want to operate in.
Defining what a market entry tactic is using specific examples
Market entry tactics is a planned strategy that directs the firm to maximize their chances
of success when they move to a new market. These strategies help companies to plan out how
they will enter the market, build brand image and recognition, survive and retain their position
and maximize their profitability. There are many examples of different strategies that the
company are availed with, such as, licensing, franchising, direct investment, direct investments
and many more, which have both advantages and disadvantages to it:
 Structured Exporting: Through this the company can export their products to the
companies and consumers by shipping internationally, which can be cost effective for
them and can increase profit. But the firm won't be able to connect with the consumers
directly and will come with limitations of profit making.
 Franchising and Licensing: It lowers the risk of government takeovers and increases the
advantages of brand recognition but the expenses of franchising is very high and not
every company could opt for it in international market.

 Direct Investment: Direct investment is big commitment for a business venture as it
requires huge investments, yet the final results of these are more promising than the
others.
 Purchasing Business: Purchasing business that pre-exist in the market decrease the need
for market research from scratch. It could also lead to joint venture (Tallman, 2017). But
there could be issues between two businesses if they are not able to coordinate.
Conclusion and suggestions on how and why firm should enter international market
In conclusion, there are many ways and routes from where the company can enter
international markets as discussed. Through direct and indirect exportation, franchising,
licensing, direct investments. They have to research their market before entering the market
around economical, social and other factors that could affect the business. After that, they should
test their market and on the response of consumers, firm can enter the new market.
There are many reasons that could benefit the company when they enter the international
market. As the global market is huge, it brings many opportunities for the company (Flor, and
Moritzen, 2018). Greater number of people mean larger number of potential customers, which
will also result in high demand of the offered goods or service. The global growth rate is also
increasing which will help them increase their profit making and company can achieve limitless.
Explaining difference between global & local marketing
There are many differences that set local and global marketing apart, those major
differences are:
Local Marketing Global Marketing
The company produce, promote, distribute and
sale goods and services in a domestic market.
The company produce, promote, distribute and
sale goods and services in the international
market.
The local market is more familiar for the firms
and it is easier for them to survive as it is less
risky and has a niche market than the global
one.
Global marketing is a lot riskier and complex
yet the results it gives to the company is
greater than the local ones.

Local Marketing Global Marketing
As the local market is smaller it needs less
financial resources.
It requires huge amount of financial resources
in order to carry out business activities.
Local marketing has to deal with a single
market.
Meanwhile, international marketing includes
various countries and different markets that it
has to deal with.
The policies and strategy in local marketing
remains similar throughout the organizational
activities.
There are different markets involved in this
marketing which are different from each other
in terms of various factors like economic
conditions, customer behaviour etc. which
brings the need of different strategies and
policies according to the market (Ahi, and
et.al, 2017).
Presenting an overview of key arguments in international versus local debate.
The decision between going local or international for a business depends on their ultimate
objectives and their target market. There are instances where local market is better than going
international. Certain products and services provided by the business only suits in the targeted
market and demand only arises in certain conditions which would not be applicable in the global
context. In such cases going global will only bring loss to those companies. Local marketing is
also more affordable and effective approach while they could also send specific message to the
consumers without making profit their whole point of existence. Digitalization of local
marketing and operations has also increases their business growth. Meanwhile, the global market
expansion of a firm increases their niche market to larger one, and their reach to potential
customers also rises. Therefore, the opportunities for growth is limitless. Yet despite with
benefits it is difficult for small ventures to expand globally, setting limitations by their financial
conditions.

How Product, Price, Promotions and Distribution Differs in Variety of International Context
Product, price, promotions and distributions are marketed to customers and various
factors that affect their demand and buying habits, affect a businesses supply. There are many
difference in different markets internationally which are taken in consideration by the company
to retain and grow in the market (Koch, 2018).
 Product: Companies develop a product in order to meet consumers' demand. They also
create the demand in the market which is related to various factors. In international
market there are many influences that changes customer demands. People are divided
geographically, economically, on the basis of religious belief, culture, tradition, lifestyle,
education level, income per capita and many more (Wanda, and Razak, 2018). These
factors drive an organization to develop a product that could meet their demands
accordingly. Many technological and development factors also contributes to it, and to
produce a product that could exist in international market the firm would have to consider
all those factors.
 Price: As discussed, the economic factor is important factor that is considered while
producing a product. Similarly, when the prices of those goods are decided the economic
condition of target market is identified. Additionally, the cost of production is also vital
for deciding the price of product, as well as other additional expenses such as different
taxes, tariffs and import duties, and cost of transportation. Competitor's prices are also
determined and identify the balance in product prices around the world.
 Promotions: According to above mentioned cases, international market is based on
various factors which influences business activities and similarly affects promotional
activities (Watson IV and et.al, 2018). There could be cases where promotional strategy
in one country are not acceptable in another due to their culture and traditions. Also, the
availability of certain gadgets like mobile phones, television and such technology affect
the strategy for promotions. They would need to be aware of the target market and their
reach to promotional mediums. Innovation is also very important to involve promotional
activities to interest a bigger audience.
 Distribution: Distribution should be done at the right place and at the right time. In
different locations there are different distribution channels and path that a company has to
follow in order to meet the market at right time. They would be responsible for market

research and recognize appropriate distribution approach they want to adapt and most
efficient way to reach the consumers. Again, the import duties and cost of transportation
are to be taken in consideration while making any strategies regarding distribution.
Explaining and Analysing Various International Marketing Approaches
 The Global Integration Perspective: This is a process that the company can adapt in
which different activities are combined around the world to reach the best outcome
effectively. This integration perspective give the organization to expand their market
internationally without having to face many duties any government control, and the
leader of that market remains the customer. This will make shifting of resources from one
place to another easier and development strategies of the product, promotion and
distribution standardization would be efficient across the world. Eventually this approach
will give them competitive advantages and growth opportunities.
 The Evolutionary Perspective: This approach implies that the company should have a
comprehensive perspective in order to view that the company is evolving as time goes by
and firm gains the experience as they expand in international market. Based on study,
internationalization of firms have a pattern, and they go through almost same stages
(Lindstrand, and Hånell, 2017). It suggests that the stages initiates from decision-making
of expansion to the global market, then making strategies and applying them through
international marketing mix strategy and integrating those decisions throughout the
global and national market. Adaption of the evolutionary perspective for the firms makes
it easier for them to find their place in new markets, they immediately find their target
market in people and it becomes easier for them to detect the demand and establishing
international communication which interests the consumers. There are many companies
which uses this perspective to retain in international market and grow such as Tesco,
which has a very strong global image in terms of supermarket chains.
 The Global Configuration Perspective: The global configuration or coordination
perspective implies to the importance of coordination and configuration of activities of
the firm at the different stages of organization value chain around the different countries
to improve their efficiency and gain maximum competitive advantages (Nilsen, 2019).
The activities that are at the upper end of value chain like, design, engineering and

sourcing could be concentrated on the locations where its performance could be
performed with cost efficiently and effectively. Similarly, all those activities in the value
chain should be concentrated on such places where it could be performed with most
efficiency to get the best result and consistency in the firm Oak Cash & Carry.
Comparing Home and International Orientation
Market orientation could be identified as the key factor through which a firm can achieve
its goals and objectives. In both domestic and international market, orientation is vital to carry
out activities and lead the firm to success, but the difference in those market knowledge set those
two part apart for the company. The location of the market changes a lot of approaches a
company uses to asses their consumers' demand and competitors in terms of size of the market,
how they perceive some products and services, brand awareness, target market's culture,
traditions, age, gender proportion, lifestyle (Kyselova, 2021). Domestic market is often smaller
than the international one so it needs less equity, the target market becomes smaller and market
research for the company becomes simpler and easier. But there are limitations to it, as they
won't be able to grow their business and profit making. While, in the international market the
company has no limit in expanding the business profit, but the problem arises at the need of
investment and strategies that could help them retain in those market with all the competitors,
and instead of only surviving they focus on becoming industry leaders.
At any market the company Oak Cash & Carry has many competitors. There are different
approaches through which they can assess and analyse those competitors, like, competitive
analysis and benchmarking approach (Döring, 2017). Competitive analysis is an assessment of
the competitors' strengths and weaknesses. This approach helps a firm to identify ad strategies
against the competitors to gain competitive advantages. There are steps that company could
undertake, to improve the analysis firm should be aware about their goals and should determine
what exact data they want to collect, after that they do the market research and identify the
competition and collect the determined data and analyse it accordingly and lastly do the follow-
ups consistently at certain time periods. Meanwhile, benchmarking is a market research which is
specific and allows the firm to compare their performance with their competitors. In this
approach suggests that the company should set a KPI of both quantitative and qualitative
information which will be the basis they will analyse their current performance and competitor's

current performance. This will give the firm to receive a healthy analysis which will help them to
set their strategies and gain advantages of profit making and rising the company to become the
market leader.
Recommendations
The Oak Cash & Carry is a part of grocery store related industry which have many competitors
worldwide so it is important for them to stand out in the market (Härmä, 2017). Here are the
recommendations which they could opt to expand globally while making way to success:
 Market research is the first step they would be focusing on, it is recommended to them
that they do not only focus the traditional medium for marketing but more on the side of
what is currently trending in digital mediums, how much audience consumes those
mediums and what innovation can make them interested in the company.
 Only supplying to the global market will not be enough they could open stores in
different locations and recruit locals to work for them. Locals are most aware about there
surrounding which could help a new company to gather market information effectively.
 They should also focus on evolution perspective which will help them to accept new
market and adjust into it quite quickly and help to ensure growth and sustainability in the
industry worldwide.
CONCLUSION
In conclusion of the following report, the local company of UK Oak Cash & Carry was
set to expand in the international market. The local and international market of the company was
identified and discussed, their entry routes that they could adapt was defined. The importance
and benefit of company if they enter the global market was also discussed. There are many
factors that makes local and global market different from each other from market size to the
potential consumers' behaviour. And while using the product, price, promotions and distributions
in the international market there are also factors and approaches that makes it complexer than the
local ones. There are different international marketing approached like the global integrating
perspective and evolutionary perspective. Lastly, recommendations were given to them to
consider before entering the new global market.