International Marketing Report: Sainsbury's Expansion Strategies

This report delves into the realm of international marketing, focusing on the expansion strategies of Sainsbury plc, a leading UK retail company. It begins by defining international marketing and its scope, emphasizing the importance of global expansion for businesses in today's competitive landscape. The report then explores various routes for market entry, including exporting, joint ventures, wholly owned manufacturing, contract manufacturing, and mergers and acquisitions. It highlights the rationale behind international marketing, such as increased profitability and market share, while also addressing challenges like tariff barriers and currency fluctuations. The report then outlines the criteria and key processes involved in international market selection, including country identification, preliminary screening, in-depth screening, final selection, direct experience, and workforce availability. Furthermore, it evaluates different marketing strategies, comparing global and local market approaches and examining the marketing mix in various international contexts. Finally, the report discusses specific international marketing approaches for Sainsbury plc, comparing home and international orientations and analyzing competitive access methods, providing a comprehensive overview of the company's potential for global expansion.

INTERNATIONAL
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1. Analysing the scope and concept of international marketing...............................................1
P2. Explaining the rationale for international marketing and different route to enter the
international market....................................................................................................................2
P3. Evaluating the criteria and key process in selection process of international market...........4
P4. Explaining different marketing strategies with their advantage and disadvantage...............5
P4. Presenting an overview on the global market and local market...........................................6
P6. Investigating the marketing mix approach which will differ in a variety of international
context.........................................................................................................................................8
P7. Explaining various international marketing approaches for Sainsbury plc.........................9
P8. Comparing the home and international orientation and ways to access the competitors.. .10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
International marketing is a concept in which marketing is executed by companies in
order to spread its operations across national borders. It is multinational marketing process of
planning and executing the promotion and distributing of goods and services in order to enhance
customer satisfaction and achieve the organisational objectives. The present report is based on
the Sainsbury plc, UK's second largest retail company, that wants to expand its business
operations overseas. The present report will help in understanding different strategies and ways
through which Sainsbury plc can enter a new market.
Further, the present report will discuss various scopes of the international marketing. The
present report will also help in understand different routes through which Sainsbury plc can enter
in a foreign market. The report will also discuss the various criteria and marketing selection
process to choose the potential market. Moreover, the report will evaluate different marketing
entry strategies. The report will held an argument of global vs local market analysis. Further
moire, the report will discuss the marketing mix analysis of different international market
approach. The report will discuss the various marketing approach that can be adopted by
Sainsbury plc.
MAIN BODY
P1. Analysing the scope and concept of international marketing.
In the hyper competitive world, it is essential for an organisation to expand its operations
In more than one market in order to increase its customer base and revenue of the business.
International marketing is a concept in which marketing is executed by companies in order to
spread its operations across national borders. It is multinational marketing process of planning
and executing the promotion and distributing of goods and services in order to enhance customer
satisfaction and achieve the organisational objectives. The scope of international marketing for
Sainsbury plc is widely spread. Some of the international marketing constitute the following
areas of business:
 Export: It is the easiest and common method in order to spread the business operations
in global level. The company start exporting its goods to the international market through
mediator, it can help in reducing the risk of operating in some other country (Czinkota
and Ronkainen, 2013). Sainsbury plc can started selling its product in the international

market, it will help in increase the experience of the other country's market needs and
preferences.
 Joint-Venture: It is the process of marketing in which two or more company are
intended to work together in order to achieve the common goal. In order to enter or
expand the business operations in global market, Sainsbury plc can collaborated with
some domestic company with a legal agreement of the local market to expand its business
in the market.
 Wholly owned manufacturing: Sainsbury plc in order to enter the foreign market for
the longer period can established its separate fully owned manufacturing unit in that
country. It will help Sainsburry to have full control over the manufacturing and the
business activities of business in that country (Terpstra, Foley and Sarathy, 2012). The
government factors like trade barriers, cost differences can also encouraged to plant
separate unit rather than exporting from the home country.
 Contract manufacturing: it is also an effective way to enter in global market. If
company don't want to establish own manufacturing units, Sainsbury can enter into an
agreement with other company in foreign market which can manufactures assembles the
products and retains product marketing plan by itself. It has a benefit such as low risk,
low cost and easy exit.
 Merger and acquisition: it is the most important way to inter into a market. Sainsbury
plc can either merger with the existing company in foreign market or can completely
purchase the well established of the foreign country. It would give the benefit of
complete access to market, well established distribution market, a good customer base
and market share in the foreign market. It will also help in reducing the risk of existing
competition in the foreign market.
P2. Explaining the rationale for international marketing and different route to enter the
international market.
In today's economy, company regardless of their size and type of business it becomes
important for them to expand their business in global platform (Yang, Su and Fam, 2012). This
type of expansion can provide them several advantage like increased in profitability, increase
market share, increasing customer base etc. It can also help in providing a company various

opportunities to meet new technologies and diversification (Taylor, 2012). Sainbury plc being
the UK's second largest retail company has now required to expand its business in international
market also. Following are the reason for which Sainsbury is required to enter in global platform:
 In order to improve the company's operations and increase the profit margin of the
Sainburry plc, it essential for the company to increase its customer base and sales of the
company. Sainsbury plc has already a good customer base in UK market, to increase
more sales its important for them to explore new market.
 The local market are growing slowly, which can hinder the growth of Sainsbury as well.
There comes a time for a company, where there will be no more opportunities for
company to grow in the same market (Brean, Kryzanowski and Roberts, 2011).
There are various routes available for Sainsbury plc in order to expand its business operations
and enter in the global market :
Joint Venture: By including with a local business partner in the global market. Sainsbury plc
can explore its business operations in foreign country. Sainsbury can set up a business
relationship with the local business which will also provide the benefit of local marker
knowledge and contact.
International sales subsidiary: Sainsbury plc can take the route of Foreign Direct Investment
to enter in a global market. The company can invest in their plant, machinery and owned
manufacturing operations in some other country in order to enter the market (Ibrahim and Galt,
2011). International sales subsidiary can also be refereed as direct exporting of the part that can
be assembles in the foreign market. It gives the benefit to the Sainsbury plc to become localised.
International agents and distributors: trading with the help of international agents or
distributor is an effective strategy to enter as they already have a good networking in the
international market. They are usually a single individual or organisation which are contracted
with the company in order to operate in other company. Company has an advantage of the full
control over their products and the activities (Kleymann and Seristö, 2017). The agents or the
distributors only shared their commissions from the revenue of sales which will be earn by them.
Opportunities of international marketing:

international marketing is an essential strategy for the firm which will help in acquiring
the market opportunities to the company. It will help the company in spreading its business
operations in global platform, thus it results in increasing the economies of scale. It will help the
company in extending its product life cycle. The opportunities from the international marketing
are:
 International marketing will help in increasing the market size off the business which will
help in increasing the sales of the company.
 Expanding the operation of business will help in reducing the total cost of production and
integration. Firm can gain more competencies which result in sharing knowledge with
other countries.
 The technological changes and and new products leads to increase with the help of
international marketing, as it provides larger market and enables the company in
increasing its efficiency.
Challenges for international marketing:
 Tariff Barriers: Sainsburry should considered the selected company's taxes policoies
and duties that are imposed on export and import. The selected country's certain policies
such as promoting the domestic products can restrict the international marker activities
that will create a challenge to enter in that market.
 Variation in exchange policies: Sainsburry has to face the challenge of fluctuation in the
selected countries currency. In the certain condition of extraordinary and unexpected up
and down in the exchange rate it will be difficult to set a p[rice of the product in order to
make profit.
 Norms and Ethics Challenges: it refers to the different principle, beliefs and mora;ls of
the people that will also effect the firms. Sainsburry has to operate in accordance with the
different ethics and code of conducts. Corruptions is the biggest issue that company can
face while operating in selected countries.

P3. Evaluating the criteria and key process in selection process of international market.
It is important for Sainsbury plc to maker a proper plan and strategies before entering in
the international market. There some specific criteria and selection process which should be
evaluated and considered while entering a international market. Market selection is an important
yet tough task for the management of Sainsbury plc which could change their strategies and plan
for expanding the business operations (Hill, 2017). International Marketing Entry Evaluation
process is a five stage process which can be undertaken by the Sainsbury plc in order to identify
and select the market in enter:
 Country identification: identification of the country is the first step in market selection
process. The evaluation of the country can be done on the basis of different criteria. The
GDP growth rate, government policies, entry barriers, currency differences, potential
customer in the market are some factors that need to considered by Sainsbury plc while
selecting a country.
 Preliminary screening: It the second stage of market evaluation, in this stage all the
countries that are selected in the previous stage was evaluated on the basis of Micro
factors with the help of SWOT and PESTEL analysis (Charter and Tischner, 2017). In
this stage, the country that are not suitable will be eliminated, and Sainsbury plc will only
take those countries which are suitable as per their micro factors.
 In Depth Screening: the country that was choose from the previous stage will be
considered for expanding the business. In this stage depth identification will be done for
collecting the sufficient information about the domestic market, customers need and
preferences. The marketing team of Sainsbury plc would make a marketing mix analysis
of the selected countries, a deep market research will be done, and on trhe basis of these
few countries will be selected.
 Final Selection: In this stage, a final short listed countries will be evaluated on the basis
of more information (Clark, 2017). The marketing manager if Sainsbury plc will make
strategies and goals that needs to achieved for the company. On the basis of the strategies
and goals of the company, the company will identify the existing competitors and the
strategies of the similar sector companies in the countries. On the basis of this a final
country will be selected in order to expand the business.

 Direct Experience: after a selecting a company in the basis of the information, a
marketing manager or executive should visit the country to evaluate the market as the
personal experience (Surdu, Mellahi and Glaister, 2018). It would help the company to
examine the nation's culture and the business practices of the market. It will give an idea
about the similar and dissimilarities of the market with the home market.
 Availability of workforce: in this stage organisation search people who help in making
business more effective in international marketplace better than its competitors. Effective
workforce increase business growth and productivity. Sainsbury plc hire people who give
their effort through perform hard work in firm at workplace.
 Market trends: market trends impact on business productivity and growth. Thus, for
establishing enterprise in international market organisation need to research market areas
and get information about their trends. After make their products and services according
to it.
Criteria that should be analysed while selecting a country for international business:
 Market Growth: Sainsbury should also analyse the scope of growth of the market ofd
the selected country. Market growth can be refereed as the increase in the demand of the
pro duct and services that company are going to offer. Market growth analysis is essential
while evaluating the entry selection process.
 Profit: the company is going in international platform in order to increase the revenue of
the company, hence profit generation is the main goal of the company. Before selecting a
country, Sainsbury should analyse will the product will success in attracting the customer
and increase the sales. Increasing the sales will help in generating more profit for the
company.
 Available resources: the company should evaluate, whether the selected company is
having the enough resources for manufacturing of the product and services. Importing
from other country will results in increasing the operational cost and thus result in
decreasing the revenue of the company.
 Cheap label: the company should also evaluate the effective pricing labelling strategy
with accurate and complete quotation.

 Market Expansion: It can be considered when the company is sure that they
successfully built a loyal national customer base before planning to entering the
international marketing to keep your business growing.
Globalising the company international level will not only help in expansion of the
company internationally but also help in attracting more customer and increasing the revenue of
Saisbury plc. It helps in increasing the operations of company on international level. However, it
can be critique that,, just entering a new market in not enough for making profit. Company has to
make strategies in order to face the challenges that comping on the way. Marketing team should
carefully analyse the criteria for entering in the selected company.
P4. Explaining different marketing strategies with their advantage and disadvantage.
Globalising is an effective way for a company to expand its business in foreign market.
There are various market enter strategies that Sainsbury plc can undertake in order to make
proper strategies through which it can enter in foreign market. Market entry strategy is process
through which a company can enter in other country. Following are the different market entry
strategies with their advantage and disadvantage:
Exporting: It is the process of sending goods from one country to another in order to increase
the revenue and expanding the business (Hattori and Tanaka, 2018). It is the most low risk
strategy of market entry. With the help of some local agents or distributors some firms may
easily enter some other country's market. It more beneficial fir Sainsbury to export its existing
product rather than producing new product line. Exporting has some advantage as well as some
disadvantage also:
Advantage of Exporting:
 It is an easy method to expand the business in other market without depending on that
market.
 Increasing the export will leads to more sale of the company which leads to increase the
revenue of the market.
 A company will have all the control over all the business activities regarding the
transaction process.
Disadvantage of exporting:

 It can leads to give less focus on the domestic market and existing customers.
 It can lead to more administrative cost in dealing with exporting regulation and dealing in
other countries other than EU (De Mooij, 2018).
Licensing: It is the process of transferring the right of using the product and services to another
firm in foreign market. It can be an effective market enter strategies for the Sainsbury plc, when
the other party to which the license is transferred has comparatively larger market share in the
market.
Advantage of Licensing:
 The licensee will be responsible for all the cost of establishing the manufacturing,
distribution, packaging and marketing sales etc.
 it will help the Sainsbury plc to enter a new market easily. It will help the company to
explore a new market without establishing its operation there.
Disadvantage of Licensing are:
 It leads to loss of control over al, the operation on company's business products.
 The licensee can become the competitor of the licensor in the market. The licensee may
earn revenue more than the royalty of the licensor. It can cause loss to the company.
 Sainsbury plc has to depend on the skills and ability of business operations of the licensee
firm' s their source of revenue.
Partnership: It is the most effective way to enter a foreign market. Partnership is useful in those
market where the market culture and social culture is different from the domestic market. The
local partner will help in increasing knowledge regarding the new market and helps in
increasing the contact in the market.
P4. Presenting an overview on the global market and local market.
Global marketing is a process of planning, producing, placing and promoting a business's
product or services in the worldwide market. Global marketing is the conceptualising and
subsequently conveying a final product or services globally. The company wants to operate
globally aims to reach the international market community (Agarwal and Wu, 2018). While
operating in global platform brings many benefits, it does have some drawbacks also.

Advantages of global marketing:
 Global marketing helps in targeting new community in the world which helps in
increasing the customer base.
 It helps in increasing the opportunity of bringing new technologies for the business which
helps in taking the business to the new global platform (Schlegelmilch, 2016). As the business operation will spread to new boundaries it will help in increasing sales
which will help in increasing revenue of the company.
Disadvantages of global marketing:
 Identifying a potential market to spread the business operations in is a difficult process.
 There is lot of time investment is required in order to expand a business operation
internationally.
 The company has to face different laws and regulation that the company has to face while
entering in that particular country for business.
Whereas, a company that is operating within its nations boundaries and in
domestic market (Burns, Bush and Sinha, 2014). All business operations of that countries remain
up to its country's boundaries. There are various advantage as well as disadvantage for Sainsbury
plc to operate in the local market only.
Advantage of local market:
 The main benefit for Sainsbury plc to operate in the local market is the awreness of the
target market and its potential customer.
 There will be no trade barrier for company from the government it operates in the same
company. It would be easy for the company to analyse different market condition, changing trend
and government preferences of customer in market.
Disadvantages of local market:
 The main disadvantage of operating in local market is slow growth or limited growth and
development opportunities.

 Due to the limited growth , the sales and revenue will also be less or limited at a certain
limit.
P6. Investigating the marketing mix approach which will differ in a variety of international
context.
International marketing mix strategy involves use of different marketing analysing in
order to evaluate the potential market requirement in which they are going to operate
(International Marketing Mix, 2018). The international marketing mix involves the four core
elements, international pricing strategy, international product strategy, internation place strategy
and international promotional strategy. Sainbury plc should analyse the marketing mix tool for
variety of international market:
 International Product: in international market, producing a product for sell purpose
will not enough. The company has to considered a number of factors that may include
consumer's cultural backgrounds, religion, buying habit and level of personal disposable
income. Sainsbury plc has to done marketing strategy in order to meet the local “needs