International Marketing Report: Zenith Pizza Expansion Plan

This report provides a detailed analysis of Zenith Pizza's international marketing strategy, focusing on its potential for global expansion. The introduction outlines the core concepts of international marketing and the global business environment, setting the stage for a PESTLE analysis of Zenith Pizza to assess its readiness for international ventures. The report explores various market entry strategies such as franchising, joint ventures, and licensing, evaluating their suitability for Zenith Pizza. It emphasizes the importance of selecting the right international market, detailing market evaluation processes, and discussing the impact of trading blocs, tariffs, and non-tariff barriers. The report also delves into the global versus local debate in marketing, comparing services and merchandise, and analyzing the advantages and disadvantages of importing and exporting for Zenith Pizza. It provides insights on securing deals in new international markets, considering internal and external forces, and evaluating the 7Ps of the marketing mix. The report concludes with recommendations to facilitate Zenith Pizza's successful international operations, ensuring a smooth transition into global markets.

INTERNATIONAL
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. International Marketing...........................................................................................................1
2. Global business environment...................................................................................................1
3. PESTLE Analysis of Zenith Pizza...........................................................................................2
4. Rationale for Zenith Pizza to go international........................................................................3
5. Different strategies adopted by Zenith Pizza to enter into international market.....................3
6. Contribution of marketing for business strategies in international context.............................4
7. Opportunities and threats of Zenith Pizza for operating in international market....................4
TASK 2............................................................................................................................................4
1. Marketing strategy...................................................................................................................4
2. Importance of choosing right international market..................................................................5
3. Market entry strategy ..............................................................................................................5
4. Market evaluation while tapping international market............................................................6
5. Applying market evaluation process........................................................................................6
6. Trading blocs and types of trading blocs and agreement.........................................................6
7. Two international market for Zenith Pizza..............................................................................7
8. Tariff and non- tariff barriers in these international market....................................................7
TASK 3............................................................................................................................................7
1. Global vs local debate in international marketing and findings to Zenith Pizza.....................7
2. Defining and Comparing services and merchandise................................................................8
3. Advantages and Disadvantages of importing and exporting for Zenith Pizza.........................8
4. To secure deal of Zenith Pizza in their new International Market...........................................9
5. Internal and external forces in which Zenith Pizza adopt the local or global approach.......10
6. Critical evaluation of 7p's of marketing mix that can be standardise across the international
markets.......................................................................................................................................10
7. Explaining various considerations that would be taken into accounting at the time of
importing and exporting.............................................................................................................11
8. Recommendations..................................................................................................................11

CONCLUSION(150).....................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
An international marketing is a application of principles of marketing in more than a
country and trade across national borders. It is based on extension of local marketing strategy of
companies along with gain of special attention which is paid to identification of marketing,
decisions internationally and targeting (James, and Osborn, 2016). Here in this report Zenith
Pizza will be taken. This company is facing domestic competition which causes workforce
downsizing and drop in revenue. So the company is seeking for opportunities extension in global
market.
The report will lay emphasis on concept of international marketing and global business
environment. Pestle Analysis of Zenith Pizza for global extension will also be done along with
description of rationale of international expansion. Different strategies of expansion will be
explained in this report and contribution of marketing in this business strategy will also be
covered in this report. The opportunities and threats for the company will also be discussed in
this report.
The report will explain about skills and strategies adopted by the company while
expanding globally. Trade blocs will be explained in this report. Tariffs and non tariff barriers
will also be explain in this report.
The report will also lay emphasis on import and export activities that will affect the
company Zenith Pizza. Also, marketing mix will be explained in this report. Some
recommendations will also be suggest of the smooth functioning of the company.
TASK 1
1. International Marketing
An international marketing is an application of principles of marketing in order to satisfy
needs and wants of people which is residing outside a national boundary. It is done for
undertaking activities of marketing across one nation (Chang, and Cheng, 2015). It is also
called Global Marketing. The global marketers design marketing mix worldwide and customize
accordingly to preference of different people of different nation.
2. Global business environment
Global business environment is defined as environment in different countries whose
factors are exogenous to environment of current market in which company is operating
(Christopher, 2016). This also affects decision making on use of resources and capabilities of
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business organisation. It includes economic, tax, political, legal, social, technological, regulatory,
and cultural aspects.
3. PESTLE Analysis of Zenith Pizza Political analysis – For expanding business globally of Zenith Pizza, the company will
face different taxation policy of different countries. Also, the company will face
restrictions on trade applied by various government of different countries. The company
will need to adjust their marketing policy according to legislation of different countries. Economic analysis – The company Zenith Pizza for expanding internationally need to
contribute to GDP of that country and also they will hire employees from the same
country according to follow employment act and to increase ratio of employment in the
same country. In order to gain support from government in interest rates and taxation
policy the company will contribute their earning to GDP of that country. Socio cultural analysis – Eating habit of people also affects companies capability to sell.
The western countries prefer to eat Pizza but for Asian and African countries Pizza is not
that preferable. Therefore, developing business and sales in such areas will be difficult
for the company Zenith Pizza. This directly effect on understanding of marketers and
measures adopted by them to drive customers. Technological analysis – The company Zenith Pizza will adopt new technological
advancement technique. Like ordering Pizza through Online website. Also, the company
will use digital payment method for providing convenience and fast payment in order to
save time of the customers as well as company (Opreana, and Vinerean, 2015). Legal analysis – The Zenith Pizza will follow all the laws for their smooth functioning
of marketing and trading activities in different countries. The company will follow
international commercial law, health and safety law, employment act, environmental law,
etc. Laws related to trade and tariffs will also be followed by the company. The company
will follow all set of regulations and rules in which they need to trade for their smooth
functioning.
 Environmental analysis - Zenith Pizza will need to take care of resources which is used
by them should be used in efficient and effective manner. The company also need to take
preventive measure for pollution and operate pollution friendly activities in that country.
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Like the company may offer their pizza delivery service on Bicycle, packaging of pizza
with environmental friendly packets, etc.
4. Rationale for Zenith Pizza to go international
 The company Zenith Pizza by operating their services internationally will able to increase
their sales and profit by exploring their pizza's to customers of other countries.
 Also, the company will able to gain new set of customers by entering into new market
across national boundary in which Zenith Pizza trade.
 Zenith Pizza by expanding globally may able to diversify their assets and can take
relevant actions to protect the company from unforeseen events. Like, Zenith Pizza face
negative growth in market of Asia but attaining huge success in market of Europe. This
way the company able to generate positive revenue by diversifying their business in
various markets.
 International expansion can also help company like Zenith Pizza to access new
technologies which will help them in attaining competitive advantage.
5. Different strategies adopted by Zenith Pizza to enter into international market
For expansion of Zenith Pizza globally, the company can opt for different strategy to enter into
international market. These are some marketing strategies which can be used by Zenith Pizza : Franchising – It is a North American process which includes rapid expansion in other
market with the help of offering franchising to business of countries in which the
company want to explore their business. Like, McDonald's offer franchising their food
outlets in various parts of the world like wise Zenith Pizza can follow the strategy of
franchising in order to explore in numerous markets of different countries. Joint ventures – A joint venture is a strategy of global expansion of a business
organisation. In joint venture two company agrees to work all together in particular
market and create a third company. In this company both risk and revenue are shared
equally. This is a second method which a company like Zenith Pizza can follow by
executing joint venture with different company (Turner, 2017).
 Licensing – It is an arrangement where a business entity transfers right to use their
products and also services to another entity by offering them a legal license. Licensing is
the third strategy which can be opt by the company Zenith Pizza by offering right to sell
their pizza's in company of other country for global expansion.
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6. Contribution of marketing for business strategies in international context
The activity of marketing will bring value and profitability assurance to franchising the
business of Zenith Pizza. By marketing their products in other country the company will able to
get interested franchisers. The company is will also get strong brand image by applying different
tactics of marketing in their business in order to expand globally (Faroque, and Takahashi,
2015). Also, the company will gain new customers by attracting them with these business
strategies. In order to expand the marketing will help the company in attaining attraction of
customers and interested franchisers. The Zenith Pizza will able to increase their sales and attain
revenue by promoting their products in market which are across national boundaries.
7. Opportunities and threats of Zenith Pizza for operating in international market
Opportunities for Zenith Pizza in operating international market Market size - The Zenith Pizza has an opportunity to increase their market size by
expanding globally and explore their product in other countries (Schlegelmilch, 2016). Increase in Technology - The company also have an opportunity to improve their
technology by accessing in global market. Product line - Companies collaboration with different culture will give an opportunity to
the them to expand their business in different product line Like Beverages, Coffee, etc.
Threats for Zenith Pizza in operating international market Threat from competitive companies -The company has a threat from big companies like
Domino's who have already expanded their business globally and give a tough
competition to Zenith Pizza.
 Threat from government regulations - Zenith Pizza will face threat from government
regulations which can deplete their performance of trading in other countries and will
also increases their total expenditure by paying of taxation and tariff policies.
TASK 2
1. Marketing strategy
A marketing strategy refers to a strategy adopted by the businesses to lay out the target
market and to add the value proposition and helps the company in analysing the best marketing
opportunities to be adopted by the by the company in order to promote their products and the
services. It may also be defined as the overall plan which is designed and used for the organizing
activities in order to accomplish and attain the overall goals and objectives of the company or the
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business organization (Schmid, Grosche and Mayrhofer, 2016). Developing a marketing strategy
is very important as it helps in screening and discovering all the areas or the departments which
are affected by the growth of the organization and helps in creating plan to cater to the customer
needs.
2. Importance of choosing right international market
It is very important for the Zenith Pizza to correctly choose the right market for the
expansion of the company. The selection of the right international market is very crucial because
the success of the company depends on the right selection of the market. If the market selected is
not appropriate then the business may fail. For example is the Zenith Pizza goes for a market
where mostly old aged people are there then, the company will fail because mostly this section of
population does not prefer fast food.
3. Market entry strategy
The market entry strategies are different types of strategies which are adopted by the
companies to enter into the new market in order to increase the market share and the customer
base of the company. There are many different strategies which are used to enter into the market.
The strategies available to the Zenith Pizza are as follows-
Franchising- this is a strategy used for expanding the business in the same country or outside the
country. Under this strategy the parent company (Zenith Pizza in this case) provides a licence to
other company called the franchisee to the business in its name and to use its trademark and in
return the business using the trademark has to pay royalty to the parent company (Fregidou -
Malama and Hyder, 2015).
Advantages
 Helps the parent company in expanding the business in other countries and to increase the
goodwill of the business.
 The parent company or the franchisor receives a regular income in form of royalty from
the franchisee (Butković, Bošković and Katavić, 2014). The franchisee also has an advantage that it can start business with lesser investment and
also it gets a pre- established business name.
Disadvantages
 If the franchisee does not maintain the expected standard of quality then it will affect the
goodwill of zenith pizza.
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 The franchisee cannot introduce its new products it only has to deliver the products of the
parent company.
 Also the franchisee does not have freedom to run the business according to his choice
rather it has to strictly follow the methods as prescribed by the parent company which is
Zenith Pizza in this report.
4. Market evaluation while tapping international market
The market evaluation is defined as a feasibility study which involves the study of the
factors of marketing such as the dynamics of the market, demography, population distribution,
income groups, competitors, geographic areas and many more.
5. Applying market evaluation process
1. Country Identification- in this stage the Zenith Pizza will choose or select the country in
which it can expand its business operations. Here the company selects the country at
which it can open its branch or can go for franchising. It involves selecting few countries.
2. Preliminary Screening- at this stage comes a brief study of the country selected to expand
the business (Javalgi and La Toya, 2018). Now comes assessing the selected country's
economic condition.
3. In-depth Screening- now comes doing a detailed study of the randomly selected country's
like examining there exchange rate stability, domestic consumption, per capita income in
that country and many other factors are examined.
4. Final Selection- after all these analysis and screening comes the stage of final selection.
After the analysis of all the country options the most suitable country is selected.
5. Direct Experience- for the business to be successful a representative of the business is sent
to the selected country to directly experiencing the situations present in the selected
country (Liesch, Welch and Buckley, 2014).
6. Trading blocs and types of trading blocs and agreement
The trading blocs are defined as the formal agreement between two or more different
countries which removes the trade barriers between the countries who have signed the contract.
The different types of trading blocs applicable to Zenith Pizza are as follows-
 Free trade area- it is a contract in which the trade barriers are abolished but each country
signing the contract has to pay its own tariffs against the non- member countries.
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 Common market- it is set up where there is free flow of factors of production between the
signing countries.
7. Two international market for Zenith Pizza
The two international market for Zenith Pizza are India and China. This is because of the
reason that both are the developing nation and because of this reason the business set up by the
Zenith Pizza will run successfully in these countries.
8. Tariff and non- tariff barriers in these international market
Tariffs barriers refers to the taxes on the imported goods in order to restrict the imports in
the country. This is a price based policy which is used to restrict the trade in order to change the
price of imports paid to the importers. This type of barrier includes import duties, specific
charges and duties, and other charges.
The non- tariff are the different government policies and practices which either regulates
or restricts the foreign trade. These are quantitative restrictions which influences the volume of
the trade (Mainela, Puhakka and Servais, 2014). The examples of non- tariff barriers are import
licensing, formalities of consular, import quotas and many such related factors.
TASK 3
1. Global vs local debate in international marketing and findings to Zenith Pizza.
Global marketing will help business entities to reach a broader target market. By
marketing the product globally, a business entity will able to reach to more number of customers
and can achieve a huge sales target. It is helpful for the small brands which operates locally but
with expansion in their trade they can able to trade internationally.
By international marketing, companies may able to build global network with different
companies which will help the company in collaboration. The global marketing also enable the
company to get involved with new culture and to build a good reputation of the company which
is engaged in process of globalization. The risk of profitability also compensates with companies
investment in different markets by adopting diversifying strategies.
It also have some disadvantages while dealing with global marketing, companies need to
face competition with big and established companies. This can be cause of failure of expansion
in international market.
While local marketing enables the company to build network with local businesses which
can help the company in accomplishing their desired task by their help. Also, the cost of
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marketing in local is less as compared to global. Therefore, the cost of expenditure will not
increase in local marketing.
But it has some disadvantage too that relationship with local businesses can lead the
company towards target of fraudulent activities of companies because they may able to get the
knowledge of strategies adopted by the company.
This can be a competitive disadvantage for them and bring unwanted competition for the
company. Also, the company not able to achieve their target of sales because of limited number
of customers (Feinberg, 2015).
It is beneficial for Zenith Pizza for expanding globally in different countries of the world
because by international marketing company will able to generate more sales and create a
customer base which is belong to different geographical background. Although, total expenditure
of the company Zenith Pizza will increase by global marketing but revenue that will generate
from global expansion is more higher than what they usually earn while dealing in local market.
2. Defining and Comparing services and merchandise
Both services and merchandise are different from each other. Merchandise are the
tangible products provided by a company to its customers (Hänninen, and Karjaluoto, 2017). On
the other hand services can be defined as intangible products that company provides to its
customers. In context with Zenith pizza, it can be analyzed that the pizza served by the company
to its customers would be considered as the merchandise of the company. Whereas, the various
facilities provided by the company such serving facilities, delivery facilities would be termed as
services of the company.
In the other context, it can also be said that there is some sort of similarities also between
Merchandise and services, as a company generally provides both merchandise and services
simultaneously. For example, if the Zenith Pizza provides Pizza to its customers, it would
simultaneously provide the services to its customers in form of either serving it to them or
providing them delivery at their place.
3. Advantages and Disadvantages of importing and exporting for Zenith Pizza.
Advantage of exporting
 By extending Zenith Pizza in global market will able to contribute home country to earn
foreign exchange (Sarmento, Simões, and Farhangmehr, 2015).
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 An employment opportunities will generate by exporting products of Zenith Pizza. The company Zenith Pizza will contribute more to the economy of country in order to
develop.
Disadvantage of exporting
 Identification of Bad quality in products of the company Zenith Pizza will declines the
reputation of the country as well as company.
 Exporting goods of Zenith Pizza may cause increase in expenditure of the company. The exporting products of Zenith Pizza will be very time consuming process for the
company.
Advantage of importing
 Zenith Pizza by importing will able to contribute country to access the availability of best
technology and products & services all over the world.
 Zenith Pizza by import to other countries can improve standard of living of natives of that
country which will further enhance their sales. The company may able to create a new customer base by entering in market of different
country.
Disadvantage of importing
 When import exceeds export then the company's unemployment will increase and
impacts on recruitment cost for the company.
 The GDP of importing country will declines by transferring products of the company
Zenith Pizza which affects their revenue.
 Import of products from Zenith Pizza will discourage local manufactures and this will
directly impact on inflation which directly affects their sales.
4. To secure deal of Zenith Pizza in their new International Market.
The company will provide training and development campaign to their employees so that
they can face any challenge in other countries. Also, they should motivate their employees by
monetary benefits like perks and bonuses. Recent trends prevailing in the country in which deal
is executing should be properly considered (Kamboj, and Rahman, 2015). An analyze on
activities of competitors should always taken into consideration while executing international
deals by Zenith Pizza.
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5. Internal and external forces in which Zenith Pizza adopt the local or global approach.
Internal forces of Zenith Pizza are financial resources which includes appropriate
investment and funding. Also, companies location and advance machinery promotes the
company Zenith Pizza to expand globally. External forces are social and economical factors
promotes the company to extend their business globally as the company serves best quality
Pizza. Also, the company is facing a lot of domestic competition and in order to survive the
company start extended towards international market.
6. Critical evaluation of 7p's of marketing mix that can be standardise across the international
markets
 Product: The Zenith Pizza needs to develop effective plan about how it can innovate its
product and services in such a way so that it could become more preferable by the
customers of international level.
 Place: further, the company should also set the standard place at which it could provide its
product and services (Chanavat, Desbordes, and Lorgnier, eds., 2017).
 Price: It is the most important part of marketing mix, standardize the most appropriate
price of the pizza and other services provided by the Zenith Pizza is most important task
for attracting and maintaining the customers with company's product.
 Promotion: Zenith Pizza also needs to set the best way of promoting its business so that it
could reach and attract the maximum number of customers towards it.
 People: The people refers to both internal and external people of the company. For
working in the international market, the Zenith Pizza must develop effective policies for
both internal and external users of the business.
 Process: The company has to develop a standard process of manufacturing and selling the
merchandise and services.
 Physical evidence: It refers to branding of company's name in all over the market. For
enhancing the business at international market, it is essential to develop effective brand
equity in the market so that it could attract the maximum customers towards it.
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7. Explaining various considerations that would be taken into accounting at the time of importing
and exporting
Zenith Pizza being an international company, needs to taken into consideration various
elements like, registration of the business at international level, taking import and export
licensing, deciding appropriate price of the product for each international market, so that
company can generate appropriate amount of profit from the business.
In this regard, it can be analyzed that the import or export business can be started by
registering the company, selecting a product to be imported or exported, determination of various
sources of suppliers, finding potential customers, etc (Kilenthong, Hultman, and Hills, 2016) .
8. Recommendations.
The company should follow all the rules and regulation that are levied by different countries on
importing and exporting in order to smooth functioning of the Zenith Pizza.
Also, the company can operate in different product line like beverages and other food items to
grab attraction of more customers.
CONCLUSION(150)
This report was all about international marketing and the company Zenith Pizza is
expanding globally for the same. The report was started with concept of global business and
international marketing. Then comes skills of international marketing adopted and key success
factors was also included in the report. At last the report was all about importing and exporting
of products and services of the company Zenith Pizza.
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