Report: International Marketing Strategies for Frazer Company Ltd

This report examines international marketing strategies for Frazer Company Ltd, a plastic manufacturing organization seeking global expansion. It defines international marketing, outlines its scope and key concepts, and explores reasons for internationalization, such as growth and profit opportunities. The report details various market entry routes, including exporting, licensing, franchising, and joint ventures. It also evaluates market selection processes, analyzes global versus local marketing approaches, and addresses challenges like cultural differences and competition. The report concludes by summarizing the key aspects of international marketing strategies and providing a comprehensive overview of the subject matter.

INTERNATIONAL MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
Meaning, scope and key concepts of International Marketing...................................................1
Reasons for organization to want to market internationally.......................................................4
Various routes for entering into the international markets..........................................................4
LO 2.................................................................................................................................................6
Evaluation of entry to selection of different markets and defining success factors....................6
LO 3...............................................................................................................................................10
Key arguments in global against the local marketing...............................................................10
Investigating marketing mix in international context...............................................................12
LO 4...............................................................................................................................................13
Explaining and analyzing different marketing approaches.......................................................13
Comparing home and international orientation and ways of assessing competitors...............14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
International marketing can be defined as carrying out of marketing activities by the
organisations across national boundaries. It is basically creation of marketing mix strategies
internationally for selling the products and services in the international markets according to the
tastes and preferences of targetted international customers(Cadogan, 2012). The Frazer company
Ltd, is a plastic manufacturing organisation located in Gloucestershire. The company is a reliable
supplier of fabricated finished goods made of plastic, wanting to expand its business
internationally. The present report will discuss international marketing strategies designed by the
company for expanding its business internationally. It will also cover the basic differences
between local and international marketing and the scope of it. The report will lay its emphasis on
different entry gates for expansion of business in the global markets and selection of the most
appropriate channel for entering into the international market.
LO 1
Meaning, scope and key concepts of International Marketing
International marketing is planning and designing of marketing mix (price, promotion,
place and people) for effectively flowing the goods and services in the international markets for
the motive of earning profits by the organisations.
From the above description of international marketing it has been evolved that it includes
research of the intended countries where the business is to be carried out, identification of the
tastes and preferences of the people in the plastic industry, preparing strategies and taking
decisions regarding the marketing mix of the company, entering into the foreign markets through
a particular gate after proper analysis and finally starting operations in international markets and
satisfying customers.
Characteristics of international marketing
 It is the marketing of company's products and services in the foreign markets.
 The term international marketing involve at least two nations where the products and
services are served to the targetted customers.
 International marketing is characterised by large scale operations in terms of
manufacturing, transportation and warehousing(Cateora, 2007).
 The concept of international marketing is that. it makes available goods in the
international markets according to the needs and requirements of foreign customers.
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 International marketing is imposed with the challenges like trade barriers, marketing
restrictions etc. The planning and designing of international marketing plans and strategies are very
complex and thus it makes the implementation of international marketing activities
difficult.
Key concepts of International marketing
International marketing have following key concepts that are given below:
Production concept: International marketing have a production concept in which the
management focuses on improving efficiency of the production and also finding the most
effective distribution channels. This concept states that customers in the global markets will buy
products that are easily available and comfortable affordable.
Selling concept: This concept of international marketing is about selling the goods which
is produced by the company regardless of the requirements of target global markets. It basically
means selling the standardised products to international customers without moulding it according
to needs and requirement of the customers. The main objective here is to increase the sale,
overlooking the long term profitability of the organisation(Five Marketing Concepts Explained
with Examples, 2017).
Product concept: This concept is one of the most popular concept applied by the
management of different companies. This concept says that international customers will buy
those goods and services which provides the best quality, innovative characteristics and which
best meets their expectation. The international marketing strategies involves improvement of
products on the continuous basis for meeting the expectations of its target customers.
Marketing concept: This concept holds that meeting customers needs and requirements
is the utmost organisational goals and objectives for sustaining and growing in the international
market. This concept believes that hearing customers say and reacting accordingly is the way to
success for any organisation. Frazer follows this concept of satisfying its clients by delivery them
the goods and services according to its clients specifications.
Societal concept : This concept states that goods and services delivered to the customers
must provide some value to them and must increase the society's welfare in general.
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Illustration 1: Key concepts of international marketing
source : (Five Marketing Concepts Explained with Examples, 2017)
Scope of International marketing
Advancement of the technologies resulting into better communication and transportation
infrastructure, creation of digital platforms and of course the globalisation has widened the scope
of international marketing for The Frazer. Different factors have broadened the scope of
international marketing such as import, export , join ventures, contractual agreements.
Trading of goods and services through import and export is the easiest and the most
convenient way of developing foreign markets for The Frazer's domestically manufactured
goods. This will allow to company to know the exact market situations of the other nation where
the business is intended to be start so that a manufacturing unit can be established after assessing
the performance of company's product in that nation. Strategic alliances has also made the
international marketing's scope greater. It allows Frazer to alliance with its competitors for
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utilising the syngenetic benefits from the capabilities of both the companies and it provides
flexibility and innovation to the organisation(Demangeot, Broderick and Craig, 2015).
Reasons for organisation to want to market internationally
The Frazer Company Ltd wants to go international because of the following reasons that
are discussed below:
Growth opportunities: Frazer wants to go international because of tapping more
opportunities in global markets. Frazer already has a established place in the local market and it
has reached its saturation point and by going international it would be able to make a growth
through expanding its business in foreign markets.
Increasing profitability: The other reason for Frazer to go global is to earn more profits
by serving its products and services to the different foreign customers.
Diversification of risk : Frazer would be able to diversify its business risk by expanding
its operations internationally. International marketing would make the trade of goods and
services to foreign customers as per their requirements which in turn would spread the risk of
failure of business. For example, if the macro environmental factors like high inflation rates, low
economic growth or drastic change in the taste and preferences of the domestic customers affects
business adversely, Frazer would have the other streams of regular income from the international
operations.
Increasing customer base through technology: Advancement in the digital media has
made Frazer to go for international marketing. Online official website and different portal
established such as eBay, Amazon etc. would help the company to reach masses internationally.
These platforms will also help in effective promotions and creation of brand image of the
organisation's goods in intended international markets (Hamill, 1997).
Availment of government incentives and exemptions: Frazer would enjoy various duty
and tax exemptions and incentives while producing goods and services for export sales. This is
one of the rationale of company to want to market internationally.
Various routes for entering into the international markets
There are different ways of making an entry in the foreign markets available with The
Frazer Ltd such as exporting, licensing, franchising, partnership, acquisitions, new subsidiaries,
joint ventures etc. They are discussed below:
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Direct exporting: It is one of the most convenient way of starting the business in foreign
markets. In this method, organisations produces goods and services in the domestic country and
then sourcing it to other countries. Appropriate pricing, labelling and packaging needs to be done
while exporting the goods and sourcing it to distributors in the intended international markets.
Marketing and promotions involves trade shows, local sales and digital advertising (Madhok,
1997).
Licensing: In this method, Frazer can give the license to the international company fort
manufacturing its products in exchange of some royalty fees.
Franchising: This route would allow Frazer to expand its business by selling the
franchise of its business to other party in the foreign country in return of some financial
compensation such as fees, commission etc.
Joint venture: This method would allow the Frazer to collaborate with some local
companies in the international market to form a new entity for expanding its business. This route
is beneficial as it optimally uses the technological benefits, local expertise of the domestic
companies of international market.
Creating a new subsidiary: Frazer can establish a subsidiary firm in the international
market which will function according to its governance.
Opportunities and challenges in international marketing
There are different factors affecting the international marketing such as -:
challenges
 Cultural differences: International marketing of Frazer would face challenge of cultural
differences and customers behaviours variations.
 Legal issues : Frazer while expanding business internationally will face various legal
constraints by the ways of restrictive laws, regulations, tariff and trade barriers imposed
by the foreign countries.
 Intense competition : Frazer would face cut throat competition from various domestic and
international suppliers of fabricated plastic finished parts that are used in machines. Ecological factors: Climate, environmental policies might create problems as the plastic
manufacturing company creates high pollution level in the absence of proper wastage
disposal system, harming the environment(Hoppner and Griffith, 2015).
Opportunities
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 High profitability would be achieved by Frazer by effective marketing in the international
markets.
 Large market share would be build through expansion of operations in foreign countries,
serving large numbers of customers
 Benefits of economies of scale would be an opportunity to Frazer as the operations and
manufacturing will be done at large scale, making the per unit price of product low.
 Enhancement of brand value would be created by effectively marketing in the foreign
markets and satisfying the needs and requirements of different clients.
LO 2
Evaluation of entry to selection of different markets and defining success factors
Evaluating selection process for an international market
Illustration 2: Evaluation of selection process of foreign market
source : The International Market Entry Evaluation Process, 2019
First of all, Frazer will identify the countries where it wants to expand its operations. This
either could be done by grouping the countries that have similar governance, or similar culture
etc., such as Australia and US have similar languages.
Each country's screening would be done by the marketing management of Frazer
company by effective analysis of country's situations with the help of PESTLE analysis, industry
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specific analysis for finding out the feasibility of the idea of expansion of business in those
countries.
After the preliminary and detailed screening of the proposed countries by Frazer, final
selection would be made on the basis of competition, political situations, legal conditions,
environmental factors, economic growth level and technological adaptability of the potential
international markets.
Last stage in the process is personal experience of proposed countries conditions
regarding its political, consumer behaviour, competition, cultural and social preferences etc. for
formulating effective marketing strategies of entering into those markets.
Different market entry strategies
A market entry strategy is a systematic and planned process of expanding business
operations outside the domestic boundaries. Joint venture, licensing, franchising, exporting,
creating new subsidiary, piggybacking, merging and acquiring are market entery strategies
Frazer could use.
Market entry
strategies
Meaning Advantages Disadvantages Example
Joint venture Developing an
entity by two or
more companies
for carrying out
the business
operations
together in
international
markets
 Quick
access to
the latest
technologi
es.
 Utilization
of local
venturer/
partner
expertise
and
knowledg
e about
local
markets.
 Ambiguou
s
objectives
of joint
venture
entity.
 Lack of
coordinati
on
between
the
partners
involved.
 Conflictin
g cultures
Jaguar land rover
joint venture with
China's Chery,
decided to
provide R&D and
engine
manufacturing
services.
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 Diversific
ation of
costs and
risk
between
different
parties.
 Easy exit.
of
different
companies
Exporting Production of
goods and
services in the
domestic region
and selling them
in the
international
markets is the
crux of export.
 This
method
rules out
the
requireme
nt of
setting up
of
business
premises
in
internation
al
countries
thus,
saving
cost of
internation
al
operations
.
 The main
limitation
of this
route is
high cost
of
transportin
g of
goods.
 Issues
with local
distributor
s.
Anglo American
exporting mining
and metal
products.
Licensing It allows  The  Inability The Walt Disney
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companies to
offer license to
the other parties
in the intended
international
markets for
manufacturing its
goods in return of
royalty
fees(Skarmeas,
Zeriti and Baltas,
2016).
benefit of
this route
is that it
avoids
complexit
y,
regulation
barriers,
transportat
ion cost.
 Cost
establishm
ent for
making
goods
available
in
internation
al
markets.
to
experience
the actual
market
conditions
of foreign
markets.
 Standard
license
fees
irrespectiv
e of the
exceptiona
l profits
made by
the
licensee.
Company have
offered licensing
agreements to
local parties in
international
markets.
New subsidiary Creating a
company that will
carry out the
operations of
parent company
in international
markets.
 No
dispersion
of control.
 Will act
according
to the
parent
company.
 Easy
cooperatio
n and
 High cost
of set up
of
company.
 No
flexibility.
 Untrained
manageme
nt and
human
McDonald's,
KFC, Pizza Hut
are some
examples of
franchise.
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coordinati
on.
resource.
Applying market evaluation criteria
Frazer wants to expand its business for which the market evaluation is done. Market
evaluation is the systematic analysis of market conditions of a specific industry. It depends on
various factors such as :-
 Demographic segmentation of the market : US's small scale enterprises that requires
plastic formed fabricated parts.
 Target audience: automotive, agriculture industry, medical , water treatment industry.
 Needs and requirements of the target audience: solid fabricated parts that are long lasting
and which are designed as per the clients specifications.
 Level of competition: high competition from Sullivan Plastic products, Acrylic plastic
company.
 Entry barriers : US have strict regulations regrading plastic industry but favourable trade
barriers(Vida, 2015).
Frazer has chosen venture entry mode for its international marketing and expanding. This
method suits the requirements and available resources of the organisation. Like it will not totally
disperse off the controlling rights to the local party involved. It will provide aid to Frazer in
effective utilisation of the resources of the local partners such as local awareness regarding the
tastes and preferences of customers, country's general conditions favouring the business
operations. The suitability for the Frazer is that its business risk and cost would get diversify
with the local party.
Adaption of marketing strategies for different market
Besides forming joint venture in US, Frazer can apply exporting strategy for selling its
products in the neighbouring countries that do not involve very high transportation cost. The
company can offer license rights to local parties in South Asia as this will be more suitable route
there because the culture and tastes of the customers are very different from the host country.
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