International Marketing Strategies for Five Guys Restaurant - Report

This report provides an in-depth analysis of international marketing, using Five Guys restaurant as a case study. It begins by defining international marketing and its scope, exploring various entry strategies such as exporting, joint ventures, and franchising. The report then discusses the rationale for companies to market internationally, highlighting the benefits of diversifying income streams and adapting to demand fluctuations. It analyzes the key criteria and selection process for choosing international markets, emphasizing the importance of determining marketing objectives and conducting thorough market research. Furthermore, the report evaluates different market entry strategies, including their advantages and disadvantages, with a recommendation for Five Guys to adopt a joint venture strategy. The report concludes by emphasizing the crucial role of international marketing in boosting a company's growth and success. This report fulfills the requirements of the BTEC HND International Marketing unit, exploring market entry strategies and key success factors for a real-world business scenario.

International Marketing

Contents
Contents...........................................................................................................................................2
Introduction......................................................................................................................................1
Analysing the different scope and concept of international marketing.......................................1
Discussing the rationale that makes company to market internationally and also explaining
different routes of entrance..........................................................................................................3
Analysing the key criteria as well as selection process to use when deciding which
international market to enter........................................................................................................4
Analysing different market entry strategies along with advantages and disadvantages of each
method.........................................................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

Introduction
The international marketing is defined as the integration of different marketing strategies
that is practised by the company for the purpose of tapping new market opportunities and
consumer demands. The effective usage of marketing strategies allows the organization to gain
insight about the needs and desires of foreign customer in appropriate manner. For this report,
the Five guys restaurant is taken into consideration. The firm deals in fresh varieties of burger as
well as fries and was established in the year 1986. The management of this firm will establish its
new store in Denmark country. This report will analyse the scope and reason behind entering into
international markets. In addition to this, it will also discuss the risks and benefits for entering
into foreign market along with the several ways of entrance. Moreover, the report will also assess
the critical factors that can help company to consider when tapping into international market.
Analysing the different scope and concept of international marketing
The international marketing is the activity undertaken by business enterprises for the
basis of increasing its customer marker share in proper manner. The scope of international
marketing is considered as wider as it includes exporting of good or services directly to
international markets(Westjohn and Magnusson, 2019).
. In context to Five guys restaurant, there are various scope available for company apart from
exporting. These are:
Establishing:
The foreign marketing activities can allow Five guys restaurant to make manufacturing
hub in the market of Denmark for the purpose of processing, packaging or assembling of food
products according to the tastes and preferences of customer.
Joint ventures and collaboration:
The Five guys restaurant can also enter international market by making effective
collaborations with famous food restaurant present in the market of Denmark. This can enable it
to utilise proper marketing as well as manufacturing strategies for exploiting market
opportunities (Hilmersson and et.al., 2021).
Licensing arrangement:

The company under this can undertake actions for establishing licensing arrangements
according to foreign terms and conditions. It can benefit the firm to open the store in foreign
market without making significant financial investment.
Technical know-how:
The organization can also take advantage of know-how methods and technologies present
in the market of Denmark. This can support the Five guys restaurant to optimise its business
activities along with reducing high cost structure in appropriate manner(Mandler, 2019).
Concept of international marketing
In context to Five guys restaurant, the firm can gain growth in customer market share by
adopting the opportunities for entering into international market. The importance or concept of
international marketing is give below:
Expanding target market:
The international marketing can assist the company in expanding its market base in terms
of profit and customer. The firm can also perform essential efforts for taking use of resources
such as workforce or new technologies present in foreign marker conditions.
Boost brand reputation:
The concept of international marketing can also enable company to enhance its brand
reputation by providing quality products to new customers present in international market. The
large number of customers will be attracted effectively when the company have also
international operations leading to boost in goodwill in domestic market.
Critical for adopting future opportunities:
The firm can find many chances of growth when it makes an entrance into international
markets. The Five guy’s restaurant can take advantage of higher market share which also comes
with many benefits such as new connection with vendors, larger workforce as well as practising
of new technologies (Salunkhe, Rajan and Kumar, 2021).
Challenges for entering into foreign market:
Lengthy and time consuming:
The international marketing process is basically considered as time consuming because of
long distance areas, number of restrictions, payment difficulties along with language barrier. In
addition to this, the domestic company should also meet the legal requirements of its country an
the international country in which it is planning to enter.

Long term marketing planning:
The other international marketing concept includes long term marketing planning. This
can arise due to complexities in the process of adopting foreign marketing operations. The firm
needs to deeply analyse the external market conditions like social economic and also political
factors.
Sensitive and flexible:
The main risk about entering into international market is due to its sensitive and flexible
nature. The negative change in political or economic climate of foreign market can risk the
organization to lose its investment or its product can become unpopular or share of market can
fall suddenly. The change in the usage of technology and new entrants can also pose big risk to
its smooth operation (Ilkhanizadeh and Teimouri, 2020).
Discussing the rationale that makes company to market internationally and also explaining
different routes of entrance
The company can adopt the international marketing activities for establishing new
operations in the foreign market. The branching of business into foreign markets can support the
company in adapting with changing business needs in the appropriate manner. In context to Five
guys restaurant, by entering into the country of Denmark the firm can meet the parameter of
economies of scale by engaging in large scale production. Due to this, the organisation can also
lower the cost of its products which can assist it in attracting the demands of maximum customer
present in both domestic or international market conditions. The other type of reason for
embracing international business is discussed below:
Diversified income stream:
The international marketing can allow the business enterprise to expand as well as
diversify their sources of revenue by launching new products to the customer present in the
international market. This can give a chance for organisation to generate revenue even if the
domestic economy is sluggish (Magnusson and Westjohn, 2019)
Adapting with demand fluctuations:
The international marketing efforts can enable company to properly comply with the
demand fluctuations in domestic market. The company can do this by clearing out its stock by
selling it in international market which can stabilise revenue stream.
Various routes of market:

Exporting:
The exporting activity is defined as initiating direct selling of good or services outside
domestic borders through undertaking various offline or online modes. In context to Five guys
restaurant, the firm can reach its customer in appropriate manner by eliminating the entry of
middle man. This can support the organisation to attract demands of large number of customers.
Joint venture:
In relation to Five guys restaurant, the organisation can join hands with other restaurants
present in Denmark country by making a particular agreement (Moriuchi, 2021).
. This can enable the firm to reduce its legal and financial risk in order to ensure smooth business
functioning. This can also assist the firm in taking advantage of newer technologies and more
competent workforce.
Analysing the key criteria as well as selection process to use when deciding which international
market to enter
It will be necessary for Five guys restaurant to adopt the practise of appropriate criteria as
well as selection process for the purpose of establishing its business in Denmark market. These
critical processes are discussed below:
Determining international marketing objectives:
In the first step, the company form and set the objectives connected with export
marketing process. In relation to Five guys restaurant, determining goals can support the
company in improve its chance of success as well as growth by entering into new location or
market. The main objective of this organisation is to deliver fresh burgers and fries as per the
need of customers present in Denmark.
Knowing parameters of market selection:
In this second step, the management of firm undertakes proper selection and analysis of
current market trends in Denmark(Gbadamosi, 2019).
. Because of proper evaluation of market, the five guys restaurant can easily gain insight about
weakness and strength of competitors. It can also benefit them to understand tastes and
preferences of people in timely manner.
Preliminary screening:
In this, the main attention of Five guys restaurant is to remove the unnecessary clients
and markets which supports the firm to sustain their portfolio globally. The process for

undertaking preliminary screening can vary from product to product. But the common
parameters like infrastructure, per capita income, size of population are generally utilised.
Detailed investigation and short-listing:
After doing preliminary screening properly still there are parts of market remain that are
not evaluated in proper manner. The proper short-listing and investigation of Denmark market
can allow Five guys restaurant to know which kind and age group of people can like their
product very much. This can increase the awareness of their goods in most proper manner(Choi,
Jean and Kim, 2019).
Evaluation and selection:
In this last stage, the short listed markets are further analysed in relation to cost-benefit
analysis as well as feasibility study. Then ranking system is performed according to the overall
attractiveness of selected market. After this, the best part of market is taken into consideration
for launching its product in market of Denmark.
Analysing different market entry strategies along with advantages and disadvantages of each
method
There are number of ways from which the company can adopt to make successful
entrance in international market. In context to Five guys restaurant, the following are given
market entry strategies from which firm can chose most effective one. Those are:
Licensing
In this, the firm can transfer their rights of selling to another company present in
international market. In relation to Five guys restaurant, it can become critical for company in
order to improve sale of goods and services in proper manner. With the help of this, the company
can gain a fixed amount of licensed fee without investing large amount of capital.
Advantages:
 The firm is not liable for all the losses incurred during business activity. This is referred as easiest entry mode for entering into foreign markets.
Disadvantages:
 It promotes dependency upon licenser thus reducing decision making power.
Franchising

In this, the domestic company was payed for the right to open its new branch by using its
trademark, technology, marketing efforts and many more. The organisation can get make strong
brand recognition by adopting newer technologies as well as competent workforce.
Advantages:
 The big advantage recognised is the higher brand attention from customers.
 It has a slower failure rate as compared to other solo type of businesses.
Disadvantages:
 It may result into lack of privacy of confidential information.
 It can give brand a bad image if the staff members are not competent enough to provide
quality services.
Joint ventures
In this, more than one company are involved for the purpose of delivering high quality
services and products to international customer. It can enable the organisation to diversify their
products in effective manner as the firm is not exposed to high risk (Rjoub, Iloka and Venugopal,
2022).
Advantages:
 The firm can share its cost and risk in equal manner.
 The company can gain updated technologies and new supply chain ways.
Disadvantages:
 The disputes may take place if there is difference in opinions among engaged partner.
 There can be leakage of confidential information of domestic company.
Recommendation
In context to Five guys restaurant, it has been recommended that the firm can adopt joint
venture strategy. This can support the organisation to enhance customer market share in effective
manner by taking usage of technologies, workforce as well as other resources. It can also help in
boosting performance of workers by ensuring equal supply of power and work.
Conclusion
From the above report, it has been evaluated that international marketing plays the critical
role for boosting the growth and success of company in most effective manner. The company can
easily increase awareness of products or services by doing proper utilisation of several marketing
strategies. This report has properly explained scope as well as concepts of international

marketing along with reason and different routes for entering into market. In addition to this, the
report has also critically assessed the various selection process for tapping into international
market. Moreover, the report has also critically described different market entry strategies and
selected the joint venture entry mode for initiating international operational activities.
References
Books and Journal
Westjohn, S.A. and Magnusson, P., 2019. Conceptualizing and operationalizing local and global
cultural identities: a comment. International marketing review.
Hilmersson and et.al., 2021. Serendipitous opportunities, entry strategy and knowledge in firms'
foreign market entry. International Marketing Review.
Mandler, T., 2019. Beyond reach: an extended model of global brand effects. International
Marketing Review.
Salunkhe, U., Rajan, B. and Kumar, V., 2021. Understanding firm survival in a global
crisis. International Marketing Review.
Ilkhanizadeh, S. and Teimouri, N., 2020. Impact of branding on the success of international
marketing (Case study of Vaziran Corporation).
Magnusson, P. and Westjohn, S.A., 2019. Advancing global consumer culture
research. International Marketing Review, 36(4), pp.593-597.
Moriuchi, E., 2021. The impact of country of origin on consumers' pricing judgments in
ecommerce settings. International Marketing Review.
Gbadamosi, A., 2019. Contemporary issues in marketing: Principles and practice. Sage.
Choi, K., Jean, R.J.B. and Kim, D., 2019. The impacts of organizational learning capacities on
relationship-specific innovations: Evidence from the global buyer–supplier
relationship. International Marketing Review, 36(6), pp.1042-1066.
Rjoub, H., Iloka, C.B. and Venugopal, V., 2022. Changes in the Marketing Orientation Within
the Business Model of an International Retailer: IKEA in Malaysia for Over 20 Years.
In Handbook of Research on Current Trends in Asian Economics, Business, and
Administration (pp. 170-190). IGI Global.