Zenith Pizza's International Marketing: Market Entry Strategies Report

This report provides a comprehensive analysis of international marketing strategies for Zenith Pizza, a UK-based enterprise aiming to expand globally. It begins with an introduction to international marketing and defines key concepts. A PESTLE analysis evaluates the external environment, examining political, economic, social, technological, legal, and environmental factors impacting Zenith Pizza. The rationale for international market entry is explored, highlighting benefits such as increased revenue, economies of scale, and diversification. The report then analyzes various market entry strategies, including joint ventures, franchising, and mergers, evaluating their advantages and disadvantages. It emphasizes the contribution of marketing in implementing these strategies, particularly in areas like customer relationship building and promotional activities. A SWOT analysis assesses Zenith Pizza's strengths, weaknesses, opportunities, and threats. The report further discusses the importance of market selection and the market evaluation process, including country identification and preliminary screening. Overall, the report offers valuable insights into Zenith Pizza's potential for international expansion and the strategic considerations involved.

INTERNATIONAL MARKETING

INTRODUCTION
International marketing is the process or application through which companies enter into
new market and deal with global consumers. Present study is based on Zenith Pizza, it is the
small size enterprise which operates in United Kingdom. It has employed less than 50 employees
and generate reasonable amount of profit every year. Firm is planning to enter into global
market. Current assignment will describe the conceptual framework of global marketing. It will
analyses different strategies to tap into new market. Furthermore, study will describe different
market entry strategies. Market Evaluation process will be explained in this report. In addition,
describe advantage and disadvantage of export or import. Assignment will achieve an
understanding of how marketing contributes to business strategy in an international market.
Study will make argument of global vs local marketing.
TASK 1
Definition of International Marketing
It is application of marketing principles to undertake marketing activities in more than
one nation. It involves designing of marketing mix in order to enter into global market. It aims at
customizing the needs and wants of people residing across the globe (Vellas, 2016).
The International Marketing is the application of marketing principles to satisfy the varied needs
and wants of different people residing across the national borders.
PESTLE Analysis of Zenith Pizza
There are various external environment factors that can affect Zenith Pizza. There are two types
of external environment that includes micro and macro environment. Micro environment consists
of suppliers, consumers, employees, culture and many more that can impact working of Zenith
Pizza. Macro environment factors that can affect company may include political, economic,
social, cultural and other factors.
Political Bureaucracy and interference by government affects the working of Zenith
Pizza.
The government bind the food industry marketers to reveal calorie and
nutritional information on the company's website.
Economical The inflation rates affects the profitability of Zenith Pizza

Business Cycles stages such as prosperity, recession and recovery traps the
domestic market of Zenith Pizza by influencing its whole functioning.
Social The awareness of people towards health concerns has affected the market of
Zenith Pizza as people are more prone towards healthy food.
Technological The initiation of online delivery by Zenith Pizza has directly affected its
sales (De Mooij, 2015).
Legal The legislations bind Zenith Pizza to maintain the quality standards for the
product it is delivering to customers.
It has to follow the application of health and safety law & consumer
protection law.
Environmental Due to enactment of Environmental laws Zenith Pizza has to introduce
reuse and recycling of materials.
It has to dispose its by proper waste disposal system (Souchon and et.al.,
2016).
Rationale for Zenith Pizza to enter international market
International market operations will establish a scope for generating more revenue and
profit to Zenith Pizza. It will help Zenith Pizza to achieve economies of scale. It will diversify
the customer base of Zenith Pizza. A large pool of customers and competitors on global platform
will increase innovation and management learning of Zenith Pizza (Hampton, 2015). It will
make the business of Zenith Pizza less vulnerable and provide long term stability to the company
Analysis of strategies for Zenith Pizza
Joint Venture: As per the view of Hampton, (2015) A joint venture (JV) is a business
arrangement in which two or more parties agree to pool their resources for the purpose of
accomplishing a specific task. Zenith Pizza can enter into joint venture by signing a contract
with 1 or more companies by sharing ownership, returns and risks. It will aid Zenith Pizza to
enter in new market with gaining economies of scale.
Franchising: Yang, (2018) stated that Franchising is a form of business by which the
owner (franchisor) of a product, service or method obtains distribution through affiliated dealers
(franchisees). Zenith Pizza can obtain distribution networks through franchisees. Zenith Pizza

can license its intellectual property rights, know how, use of business strategies and models to a
franchisee against receiving an amount of fee. It will pamper the growth and expansion of the
concern (Feinberg, 2015).
Merger: Ilieva, Baron and Healey, (2016) argued that Mergers are transactions in which
the ownership of companies, other business organizations, or their operating units are transferred
or consolidated with other entity. Zenith Pizza can merge with another global brand to establish
its operation in international market. It would help in reducing competition and achieve scale
efficiencies.
Contribution of marketing in implementing strategies of entrance in international market
Marketing in international market will raise the advertising audience of Zenith Pizza.
Marketing function will assist the Joint Venture to build good customer relationships by
organising various events of public presence and participating in publicity events.
Marketing aids franchising in driving better sales and communicating the customers
about the business. Marketing techniques such as sales promotion, discounts help the franchise to
receive a recognition and attract customers in new market (Ilieva, Baron and Healey, 2016).
Merger will pool funds of companies which will allocate larger funds to marketing
expenditure. The marketing function will advertise the merger and will make it familiar with the
customers.
The concept of marketing is helpful to the franchisor and the franchisees in order to bring
value and assure profitability to the franchising business. The marketing plan is customised to
understand the needs and demands of the customers and satisfy them equally. Social media is the
great marketing tool which helps in making direct contact with consumers and reaching to mass
audaince. By this way firm can know more about local consumers and can offer them products as
per their needs. Hence it supports in establishing the business in new market effectively.
SWOT Analysis of Zenith Pizza
Strength- It has innovative range of pizzas and pastas. It serves hygienic food with quick
service.
Weakness- It has limited market share in domestic country. Non-acceptance of products of
Zenith Pizza by health conscious people due to high calorie content (Yang, 2018).
Opportunities- To venture into international markets. To achieve economies of scale.

Threats- Intense competition from Pizza Hut and Domino's. The changing regulations of
government affect potential global operations.
TASK 2
Marketing strategy:
Marketing strategy is plan which helps to reach to the people and make them into customer
of organisation to use the products and services which company is providing. The marketing
strategy include company value , position, growth and selling .Its is a strategy which is based on
research which main focus on business competitors, customer, market size as well to maximize
profits and its accomplished by good understanding with customer needs and wants (Vellas,
2016).
Importance of right international market selection
Before expanding the business of Zenith Pizza to the other countries the organisation must
know about the other country culture difference which can define whether the business becomes
successful or not in that culture. And they must aware about products of zenith Pizza can be able
to meet desire of other countries local market. And its is very important for Zenith pizza to know
about the country economic performance such as countries currency rate ,population, per capita
income this are very important indicators for enterprise to take action. If the product demand of
Zenith Pizza has increased but the country’s economic performance has decline which results
that the demand of the product will eventually fall. so before expanding the business its is
important for firm to know more about other countries climate condition location, infrastructure,
political risk and environment condition and so on (De Mooij, 2015).
Evaluating the market entry strategy which can help the Zenith Pizza company which can help to
expand businesses in other countries
11 Franchising
Franchising is an excellent plan which can help the Zenith Pizza company to expand their
business in other countries .
Advantages of Franchising Zenith pizza company
 It helps to grow business and there is no requirement to cover the cost for new premises
and staff. It provides addition in sales and in profits (Souchon and et.al., 2016).
 It helps to develop the brand of Zenith Pizza company and more franchisees leads to
became better known brand.

 It provides support from other through which they can get more knowledge or ideas
which can give better results for the growth of Zenith Pizza company.
Disadvantages of franchising
 To establishing the franchise of Zenith Pizza company require time investment along
with money for such as legal documents, marketing packaging plans , recruitment etc.
 The franchise can be agree to meet the demand of Zenith company but the Zenith Pizza
will not able to make sudden changes (Jean and et.al., 2016).
 And if the franchisers denied to cooperate and don't able to give profits than the legal
action requires which are costly to handle and it can damage the goodwill of business.
Joint venture
Joint venture is a kind of partnership which can help to expand the business. This partnership
provide great advantages to increase sale and increment in profit margins .
Advantages of joint venture
 Give opportunities to deal with new market and provide network distribution.
 Gives benefit to share risk and money with the selected partner (Hampton, 2015)
 Its help research development and increase sales power and purchasing power.
Disadvantages of joint venture
 It can imbalance the flexibility of Zenith Pizza company .In this they focus more on joint
venture and it effect their individual business performance.
 It can create clash in management because of poor coordination and communication .And
all the people have different belief ,taste and culture which effect the Zenith Pizza
company.
 The objective of a joint are not hundred percent clear because of less involvement of
people (Feinberg, 2015).
Merger- It can be defining as the collaboration of two companies together. This can be used
Zenith Pizza to enter into new market.
Advantages of Merger
 It is beneficial in order to gain Economies of scale
 It gives Tax benefits to business unit
 It helps in raising its brand image in the new market and increasing goodwill
Disadvantages of Merger

 Sometimes firm may get fail to understand culture of new market hence it increases
chances of clash of culture
 Higher consumer prices is another drawback of merger strategy.
Pestle analyses for market evaluation .
Zenith Pizza has to do the pestle analysis which can help the to understand the demand and
the trends of current market.
Political factor: Taxation system of other country can affect the business. Political imbalance and
importance of restaurant in other country economy.
Economic factor: Inflation rate and unemployment rate of other country can impact the Zenith
Pizza company
Social factor: Culture ,religion or language can create barriers.
Environmental factor: Weather , climate change and waste management of other country can
create problems in the growth of profit and sales (Ilieva, Baron and Healey, 2016).
Applies the market evaluation process by using these points.
Country identification
As per the view of Feinberg, (2015) firm has to identify the condition of country by taking
support of Pestle analyses tool, it will help in understanding the situation of nation so that firm
can take their decision whether to enter into this market or not. Before expanding the business of
Zenith pizza first they need to conduct country identification which provide general information
which tells that the country is suitable or not for their business. They first find that their culture is
matching with their country or not they compare language ,similarities, political ideology and
religion as well
Preliminary screening
According to Pedro, (2018) preliminary screening is the great evaluation process that
emphases more on economic condition of country and level of domestic consumption, this helps
in identifying consumer spending capacity. In this step the Zenith pizza company identify the
current stability, rates of exchange, domestic consumption level of selected country so that they
can make decision regarding the expansion of businesses in other selected country (Misra, 2015).
In-depth screening
Misra, (2015) stated that needs of consumers, spending capacity of buyers, taste off
consumers etc. all these things are measured in in-depth screening which helps in analysing

potential of market. In this step the Zenith Pizza company research in relation to the following
points such as what price they should charge in other nation for their product, how they should
distribute products in other nation,. And this formation makes target and position for Zenith
Pizza company.
Final selection
In the final step the company decide with which country they can match their
requirement. And also focus on other nation just for the comparison to find total scoring ranking
of the selected country. After this research the manager can try to visit the nation and make that
country as short listed). As per the view of (Misra, 2015) Screening resumes is the process of
sorting resumes to disqualify candidates using various methods. This phase often requires a more
in depth understanding of the job. A person needs to analyse the job better, so that they can be
able to grow.
Direct Experience
According to Yang, (2018) direct experience is the tactic of evaluation which analysis the
expectation of market and try to meet that expectation. In this step the Manager of Zenith Pizza
needs personal experience. The manager and representative of company travels to other country
for survey. In this process the managers find out the similarities according to their own market .
During the survey the manager must know that their expectation from other country will be
based upon what they know already about their own market. And try not to be fast judgemental
because they are finding best for their company.
Trading blocs and its types o
Pedro, (2018) stated that Trading blocs are those formal agreements between two or more
countries which actually dissolved the trade barriers of two different countries. As per the view
of Roth and et.al., (2016) Trading Bloc can also be define as the type of inter-governmental
agreements which is often created by government in order to remove the trade barriers. They can
also be classified as free trade area, custom union. A single market is a trade Bloc from which
almost all trade barriers have been removed.
Advantages:
 Competition- It helps in increasing competition which assist company in enhancing the
efficiency of each enterprise.

 Economies of scale- Zenith Pizza can take advantage of economies of scale. It help them
in gaining competitive advantage.
Disadvantages:
 Concessions- It is hard for company to settle down in the new international market with
their rules and regulations.
 Interdependence- A lot of interdependence is created because of the trading bloc.
1. Free trade area: In this the two different countries make a Free trade Area the barriers of
trade are abolished between the two countries. And both the country manage its tariffs by
their own against who are not the member of countries.
2. Customs union: In this bloc in which the countries member not eliminate only internal
trade barriers, but also follow policies which deals with countries which are non-
members.
3. common Market: In this there is no requirement to take permission to work with
another country. Its just like custom union and provide free flow of transportation
between the selected country (Roth and et.al., 2016).
4. Economic union: A Economic market has similar benefits as a common market .But
there is common tax system and the same employed currency.
Looking at the scenario identified two international market that Zenith Pizza could Tap into.
1 .china
Zenith pizza company can expand its business in china because china's has been growing
good in economy. The rapidly demographic changes ,rise in income ,and open business
environment of china can help the Zenith Pizza company to expand its business as the china has
a very huge market potential which can help the Zenith Pizza company in sales and to make
profits. It can be a ex-stream challenge for the Zenith company to enter in the market of
china .The various cities of china such as Shenzhen,Tianjin, whuhan all offers opportunities for
organisation and it can gain advantage from this selected cities and this will lead to gain long
term success (Souchon and et.al., 2016).
2.Sweden
From last 5 years the economy of Sweden is going good. And has open modern business
environment which give can opportunities to Zenith Pizza to expand a business in Sweden.

Sweden is an easy country to operate in and it has smooth business procedure .Sweden has a
great distribution system also have good external and eternal communication sources which can
help the Zenith Pizza company (Hampton, 2015).
8.Tariffs and non tariff barriers in international expansion
 1.In china the import and export license work as a Non tariff barriers because it require
permission which is received from the government to grant permission to do import and
export. But this licence is difficult to acquire from the government of china. So Zenith
Pizza can face problem in this
 2.Before doing any business Sweden government investigate the details of the product
and take test of the products which the Zenith Pizza company wants to sale in Sweden.
This procedure can be act as a barriers to stop the product to reach at the boundary of
Sweden.
 3.Voluntary export restraint(VER) It is a government restriction which reduced the
quantity of import and export of goods and products to a particular country (Jean and
et.al., 2016). So Zenith Pizza can make use of voluntary export restraint.
TASK 3
Argument on global vs local marketing
Global marketing aims to market solutions, products and services to customers at an
international level. It is the extension of a company's operations across the national boundaries
whereas local marketing refers to marketing of products and services across a city or
neighbourhood. Local marketing inculcate unique advantages by analysing customers needs and
wants at the closest view (Souchon and et.al., 2016).
Global marketing covers a large pool of customers base and has the potential to generate
higher range of profit. It enhances long term stability and helps to acquire a global recognition.
On the other hand, local marketing supports a close interaction with the customers. It involves
low cost of marketing and the needs and want of the customers is also minutely customised as
the customer base is low (Ilieva, Baron and Healey, 2016).
Zenith Pizza should tap into global market because domestic market has a high intensity
of competition which hinders the profit stream for Zenith Pizza. Global marketing is beneficial in
earning higher revenue and profit. It will also assist in achieving economies of scale. But high
risk is involved in global marketing and also firm has to spend huge amount in global marketing.

Global marketing can help Zenith Pizza in acquiring economies of scale. It can assist firm
in growing. Also if company is going to expand its market in international market, they are going
to face huge competition. Their efficiency will also increase by expanding their market in
international market.
Services vs Merchandise
Services: It refers to the transaction where no tangible goods are transferred by the seller
to buyer. A service cannot be stored and is consumed at time of sale. For Example : Banking
service, IT services (Yang, 2018).
Merchandise : It refers to physical or tangible materials that satisfy the needs and wants
of customers. For Example : Clothes, jewellery.
(Source: What Is the Difference Between a Merchandising Business and a Service Business,
2019)
Similarities Differences
1. Both goods and services provides utility to
customers by fulfilling their needs and wants.
2. Both goods and services generate revenue
for the concern.
3. Production of goods and services both incur
cost to organisation (Pedro, 2018).
1. Goods are tangible property whereas
services do not have a physical existence.
2. Goods can be stored for future use whereas
services cannot be stored for future
consumption.
3. Goods once sold can be returned but
services once provided cannot be returned to
the service provider.
Importing and exporting and their Advantages and disadvantages
(Source: Advantages and disadvantages of Export & Import Business, 2017)
Importing
Advantages Disadvantages
1. Specialization of Labour
2. It enhances the scope to
access to lower cost of goods
and services.
3. Grants access to
1. It will reduce the income of
domestic country.
2. Local manufacturers will
face a threat of survival.
3. Importing of goods levy