International Marketing: Market Entry Strategies for Brakes Report

This report provides a comprehensive analysis of international marketing strategies, focusing on the Brakes company. It begins with an introduction to international marketing concepts, including scope and definitions. The report explores various routes to enter foreign markets, such as direct exporting, licensing, and joint ventures, evaluating their advantages and disadvantages. It delves into the key criteria for market selection, the selection process, and different market entry strategies like strategic alliances and foreign direct investment. The report then examines the global versus local debate, analyzing how the marketing mix (price, product, promotion, and distribution) varies in an international context. It also discusses marketing approaches that Brakes can adopt, compares home and international orientations, and offers recommendations for maximizing opportunities in international markets. The analysis aims to provide a thorough understanding of the complexities and considerations involved in international marketing, offering practical insights for businesses expanding globally.

INTERNATIONAL
MARKETING

Table of Contents
INTRODUCTION......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
LO1.............................................................................................................................................................3
Scope and concepts of international marketing................................................................................3
Explain and describe the various routes to enter in the foreign markets:.....................................5
Critical Evaluation of international market context including insight into how your chosen client
organization should adapt their marketing strategies for various markets....................................6
LO2.............................................................................................................................................................6
Explain the key criteria and selection process which are used while choosing which market to
enter:......................................................................................................................................................6
Describe with examples the different market entry strategies, including advantages and
disadvantages of each.........................................................................................................................7
Critical evaluation of market entry strategies....................................................................................9
LO3.............................................................................................................................................................9
Give an overview of the key arguments in global versus local debate:.........................................9
Price, Product, Promotional and distribution approach varies in international context.............11
Critical evaluation of how the marketing mix is applied to a range of international contexts....13
LO4...........................................................................................................................................................13
Approaches in international marketing which client can adopt.....................................................13
Comparison between home and international orientation.............................................................15
Recommendations on how Brakes should be structured to maximize the opportunity in
international market............................................................................................................................17
CONCLUSION........................................................................................................................................18
REFERENCES........................................................................................................................................19

INTRODUCTION
International Marketing refers as performance of activities of business which is
designed to price, plan, promote and flow of goods and services to customers at
international level. The objective is to earn higher profitability through various
geographical locations. During international expansion company firstly overview the
market conditions of that country in which they want to expand their business. These
are politics, competition, law, technology, customer behavior etc.
The report will cover analysis in which scope and concepts of international
marketing will be explained. It will evaluate the rationality for the market on international
level and also describes different routes for entering the market. Then report will
determine selection process that can be use while entering into international market.
Various marketing strategies will be explained along with its advantages and
disadvantages. Argument will be done on the topic of Global versus local debate. The
study will investigate marketing mix approach that varies while doing business
internationally. Furthermore, it will analysis and explain different marketing approaches
that can adopt by the client. Lastly, comparison will be done between international
orientation and residence in order to provide ways to do assessment of competitors.
MAIN BODY
LO1
Scope and concepts of international marketing
Overview of company (Brakes)
The Study is based on Brakes. This is previously known as Brake Bros. The
company is engaged in the business of food and distribution. It supplies food, drinks
and mainly catering products in UK. The firm has more than twenty delivery centers, it
distribute contract logistical and wholesale services across UK. The company was
founded on 1958, the CEO is Hugo Mahoney. The headquarters are situated in Ashford

and Kent in United Kingdom. The company is comprises of various brands and
businesses such as Brakes, Prime meats, Country choice, Catering equipment and
Woodward Foodservice.
Concept
As per the view point of it is said that International marketing can be refer as
presenting the goods and services to the rest of work in order to gain the profits from
international community. It is the application of principles of marketing to explore more
countries.
Nature or international marketing
 Broader market segment is available to the companies. It is not restricted to
domestic population.
 There is involvement of set of uncontrollable variables. In domestic marketing the
firm deals with only one set.
 There is intense competition while doing business at international level.
 International marketing also requires wider competence and special skills.
 It involves high risk for the business and has to go through many challenges.
Scope of international marketing
Due to globalization the scope for international marketing has not limited today. For
doing global marketing here are the following scopes.
 Imports - It is the easiest way to do international marketing. In this the firm
imports from other country and sale it to domestic market. This can be possible
when there is demand in domestic market. Localization of product will be done
depending on needs of the marketplace (De Nisco, Papadopoulos and Elliot,
f1resale it to potential customers. Sometime import is done for improving existing
product line for putting up solutions in their organization.
 Exports - In this the company export its finalized product into international
market. It can be their own franchises in international market where they sale
their products to localities in order to generate high revenues. Sometimes semi

finished goods are also exported to other countries for increasing the brand value
of the company. It helps to expand reach of the companies.
 Contractual Agreement - The Company can make contractual agreement with
others in international marketing. The agreements can be licensing, technical
assistance and co production. Licensing can be done to collaborate with other
international companies. This includes agreement such as patents, trademarks
and secrets of brand name. Fee is being charged initially for this but once the
business starts running it will automatically covered.
 Contract Manufacturing - The large company's generally put emphasis on core
activities and doesn't want to give extra efforts and cost on non core activities.
Thus, it gives a contractual agreement to other firm so that they can focus on the
core activities (Festa, Rossi and Situm, 2020). The company whom with contract
is being made is responsible for assembling product marketing.
 Joint Venturing - It is the collaboration of two associations that collaborate for a
period of time for a specific purpose. This association further more grows and
becomes a individual unit. The new firm works under the parent companies but
they have different objectives. The profits and losses of the new company are
equally shares between both. Thus, it raises scope for international marketing.
Explain and describe the various routes to enter in the foreign markets:
Direct Exporting - It is one of the direct and fastest ways to enter the foreign market or
it is the shortest route to enter the foreign market. In direct exporting one business unit
in the home country establishes relationship with foreign business units by means of,
direct exporting the necessary goods and services which are required for their
production process, from home country the foreign country.
Licensing and franchising - Licensing is an international legal agreement which allow
the firms exclusive or non exclusive to enter in the market for a specific product and a
specific period of time (Oyewole, 2018). Franchising it is a system which allows the
owner of the firm to be semi independent business owners with a specific and identified
trademark, patent and copyright. This system is only for specific period of time. This
method also enable the company to enjoy the benefits of low cost of production and

cheaper inputs will be available as there is a legal relation which is so promoted by the
governments of almost all countries.
Joint Ventures - It is one of the most preferred routes of foreign entry in which two
international business entities joins together, who don't share their mind, brand and
tagline but accepts the agreement of collaborating with the other company to form a
new business entity. The control of the ownership of this new firm lies between both the
parties on the basis of the amount of money invested by them in the new company. The
partnership of ownership frees the half tension of loss from each party and also this is
the only route which allows collaboration of more than two firms..
Critical Evaluation of international market context including insight into how your chosen
client organization should adapt their marketing strategies for various markets
The Brakes Company will choose the Licensing and franchising, this will be the
most suitable options for the company, in this company will be able to expand his
business with least number of hurdle and a high amount of profit. Also the company
doesn't need to face political band legal frontiers. Also it will be easier for the company
to run its business with almost all favorable points. The benefits of this route will be
more in comparison to other two. By direct exporting method a firm will be able to free
from the restrictions of legal and political boundaries as the company is only responsible
for unexpected losses.
LO2
Explain the key criteria and selection process which are used while choosing which
market to enter:
 Step- 1 Identifying Foreign Markets: Identification and selection of a set of
markets is the first stage in to enter the foreign markets. Before entering into
foreign markets a firm needs to identify and analyze each market to choose the
one with least negative points accordingly (Rana and Sharma, 2016). The Brakes
company also needs to identify which set of market is the firm selecting after a
detailed analysis of all the markets, this will help them to identify the most
favorable market for the firm as per their business.

 Step- 2 Proper selection of specific markets: The firms after choosing a set need
to pick a specific market; this includes elimination of the markets which are not
favorable for business. The Brakes Company also remove the unnecessary
market and must choose the one best for them. This can be done on the basis of
different factors such as political frontiers; legal restrictions, etc are some major
points for rejecting some markets.
 Step-3 Selection of Target countries - The business unit now choose the most
suitable market for them, now they need to choose the country in which this
target market is going to run (Paul and Mas, 2019). This involves choosing those
countries which prefer foreign competition and provides favorable conditions for
business units. The Brakes company also identify which country prefer the
business of food and catering in their country at number of benefits for growth
and development, as this is one of the key issues in the selection process. It
involves factors like market size, economical factors, population factors,
geographical factors, political, social and cultural environment; legal factors are
some basic one.
 Step- 4 Export promotion organizations: This step includes the publicity of newly
setup organization and how to attract foreign buyers to their business. The
Brakes also needs to set some promotional ways to start their business with new
consumers (Kaleka and Morgan, 2019). Also they need to take permission by a
lot of paper work form the Council of Export Promotion and other Councils.
Because the objective of their country is to promote their own exports
Describe with examples the different market entry strategies, including advantages and
disadvantages of each.
Strategic Alliances - It refers to collaboration between two entities in which one of the
entities acquired a controlling interest in an existing company in the overseas market
(Nes, 2018). In this method the company can retain the existing management of their
newly acquired company; this type of mode of market entry allows both private and
public firms to invest in the foreign market without any restriction of amount and period.
Advantages

 In this company doesn't need any infrastructure to start his business as this
provides a ready-made infrastructure for the company form production to
marketing of the business.
 The business can get benefits of outsourcing form other countries as there
are no legal restrictions for them.
Disadvantages
 There are possibilities of cultural clashes between the business units which
can increase conflicts in the firm.
 Technological is changing or varying in different regions and have a negative
impacts on firm.
Foreign Direct Investment - It involves company an overseas market for making a
suitable and substantial amount of investment in that country. Some of the modes of
entry into international business are also part of it but this investment are not for
specific period of time rather it allows the company to stand in the market till it is able
to. This strategy includes mergers and acquisitions, Greenfield investments etc.
Advantages
 Companies can retain its control over the business unit and can change the
operations as needed
 This one of the cheaper source as it requires only one time investment and
has benefits for lifetime.
Disadvantages
 The business is exposed to high levels of political risk, legal restrictions,
imperfections, etc.
 This involves substantial investment to make the company reputable in the
foreign markets.

Mergers - From the legal point of view is consolidation of two entities into one in which
there is no economical, commercial and political change in the nature of the business
entity (Yang and Gabrielsson, 2018). Transactions of merger are basically of stock,
equity interest or assets and these transactions are irrespective of changing the
ownership of the company, it just joins two units into one but it doesn't change the
ownership status as it is dependent upon the share of capital invested.
Advantages
 It is most suitable for big firms as it requires huge capital investment and will
be more efficient.
 It enables the firm to earn more profit and therefore has more chances of
growth and development.
Disadvantages
 If there will be increased Market share can lead to monopoly power of the
other company.
 It lacks benefits of economies of scale.
Critical evaluation of market entry strategies
The Brakes Company will choose Strategic Alliance as this will be helpful in
increasing area of marketing or increasing market share as the other company will have
its own market to consolidate with another. This method will also be helpful as the
company will be able to take benefits of economies of scale other benefits like low cost,
high return, favorable environment will be there. The company will get benefited by
outsourcing with other countries.
LO3
Give an overview of the key arguments in global versus local debate:
In today's rapid globalization in the world, firms prefer to operate the business on
a wide scale or a global scale. In order to achieve the dilemma of work effectively they

have to face some common challenges before going to global operations and to face
disadvantages and to enjoy the advantages of globally operating market this is being
conducted. Many companies are I'll still in the dilemma of counting the local differences
between local marketing and global marketing, companies in the foreign market are
studying it for decades to understand what major factors make it is the most preferable
choice of the owners of Brakes Company.
There are a lot of positive points that are in the favor of doing the business
globally rather than doing it locally. The positive points include benefits of latest
technologies, suitability of the business environment, behavior of government towards
International business units and benefits of foreign direct investment are some major
reasons which attract owners of the business units to invest in the global market and
expand their business globally (Boso, Debrah and Amankwah-Amoah, 2018). But due
to some cons the owners can also go towards local business expansion. It includes
certain political factors that affect the owner’s decision in Brakes Company.
One common flaw recruiting internationally is that targeted and precise market,
and because many countries have developed certain factors, that attract the foreigners
to invest in their country and expand their business to high limits. Also the local market
has its own benefits such as understanding of the businessman about the business
environment, government attitude towards business, number of legal restrictions are
less, and the target market are already identified and analyzed briefly and yet are more
useful.
Everything has its own pros and cons such as local market has negative points
that are less opportunity of development, the amount of investment is high and the
return is very less, competition is already very high and is very challenging which can
create a hurdle, in development. The factors that affect the business directly are also
present and this makes choice of local market very less in comparison of the Global
market (Srinivasan, 2016). Also even if both are having some pros and cons the most
preferable choice of the marketers or businessman is global market due to positive
points that are present in higher amount in global market than local market.

Price, Product, Promotional and distribution approach varies in international context.
International marketing strategy states that there is use of word which is termed
as global customers. This is based on assumption that all have similar preferences and
needs. Brakes can apply identical marketing combination and instruments. There is no
such need to use various instruments for cultural and social environment in these
countries.
Product
Product strategy have included three categorized strategies in international market
which are as follows -
 Product standardization - Brakes need to use unchanged product in the
international market. This makes sense because the product have same utility in
different countries markets. This strategy is helpful because these type of product
demand usually remain same in each market and it can be claim that product will
run in the market smoothly.
 Product adaption - This type of product strategy requires adjustment as
properties of product varies country to country. It is not sure that conditions will
be prevailing in the market in which company is going to launch its products.
Thus, there needs to adjustment in such case. This adjustment can be of size,
packaging and symbol.
 Gradual level of change in product - This type of strategy for product us bring
used when there is less competition in market for specific seasons. It can only be
applied when threat of competitors is low (Samiee and Chirapanda, 2019).
Price
Pricing of products need to be done carefully while doing business internationally. Due
to price management problems on international scale here are two points of view for the
pricing -
 While doing business internationally there is difference in competition and wealth
of the countries. Hence, company needs to make separate pricing regulations

and policies to capture foreign markets. This can be premium, penetrations
economy, price skimming etc. Whichever suitable for the Brakes it can adopt that
one. Thus, Economy pricing strategy will be suggested to Brakes.
 From the other perspective, there is development of technology, mass and
communication at international level. Hence, it makes markets look like less
distinctive. It is hard to separate pricing policies in such case. Therefore,
company has generally recommended that they need to adopt global pricing
strategy.
Promotion
It involves new potential consumers for the Brakes. The promotional activities are done
to attract foreign buyers in order to attract them towards the products of the company.
To make them aware about the product and for transferring information promotion is
essential (Ibeh, Crick and Etemad, 2019). Thus, for doing promotion for Brakes
products at global level there is need to analysis factors which are as follows -
 Firstly firm needs to set objective for doing promotion in international market.
 To check availability of financial resources and have an experience in global
market is needed.
 Cultural factors such as language, religion, habits, symbol, color also matters
while doing international trading.
Distribution
Distribution of products in foreign market needs to be done in appropriate form. The
activities must rely on place and time by considering this distribution channel should set.
International logistics is crucial to sale products in foreign market (Eteokleous, Leonidou
and Katsikeas, 2016). Thus, distribution policy for Bakers needs to overcome
temporary, spatial and ownership huddles/barriers in order to distribute the products to
variant manufacturers and to the end customer.