International Marketing Report: CafePod Coffee Company Expansion

This report delves into the realm of international marketing, using CafePod Coffee Company as a case study. It begins by outlining the scope and key concepts of international marketing, emphasizing the rationale for global expansion and various routes to market, including direct and indirect approaches. The report then explores critical criteria for selecting international markets and evaluates different market entry strategies, weighing their advantages and disadvantages. A key focus is the debate between international and local marketing, analyzing how the four Ps (Product, Price, Place, Promotion) differ across international contexts. Furthermore, it examines diverse international marketing approaches and compares home versus international orientations, including competitor assessment. The report concludes with a summary of findings and recommendations for CafePod's international marketing strategy.

International
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Scope and Key Concepts of International Marketing.............................................................1
Explaining the Rationale to Expand Market Internationally and Various Types of Routes to
Market the Company..............................................................................................................3
TASK 2............................................................................................................................................5
Key Criteria and Selection Process to Use While Considering to Enter the International
Market.....................................................................................................................................5
Different Strategies of Market Entry With their Advantages and Disadvantages..................7
TASK 3............................................................................................................................................8
Overview of the Key Arguments in International Versus Local Debate................................8
Product, Price, Place and Promotional Distribution Approach Differs in a Variety of
International Contexts............................................................................................................9
TASK 4..........................................................................................................................................11
Analyse the Various International Marketing Approaches..................................................11
Compare Home and International Orientation and Ways to Assess Competitors, Outlining the
Implications of Each Approach............................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing refers to the process which starts with the process of idea generation of any
product and service which is made in order to fulfil the needs and requirements of their
customers and ends with satisfaction of their customers (Baker and Saren, 2016). The main
purpose of marketing to make identification of the needs and wants of their customers and to
provide them with the best possible services along with the fulfilment of organisational
objectives as well. The company chosen for the completion of this assignment is CafePod Coffee
Company which was founded in the year 2011 and is headquartered in London. The owner and
founder of this company is Peter Grainger which provides their customers with soft drinks in
order to provide them with satisfaction so that the fulfilment of the needs and wants of their
customers could be made possible. In this assignment, the discussion will start with the scope
and key concepts of international marketing. In addition to this, the discussion will also be made
about the key criteria and selection process of the organisation to consider the ways with the help
of which entry in the market could be made possible in the international market. The discussion
will be made about the four P's of Marketing, Marketing Approaches and comparison in between
home and international orientation will also be provided in this assignment as well.
TASK 1
Scope and Key Concepts of International Marketing
Concepts of Marketing
International Marketing is the process with the help of which an organisation takes their
business operations and processes such as sales and purchase, customer base, promotion and
transfer of products and services at international level so that it can help in growth and
development of the business (Bowie and et., al., 2016). The following concept of international
marketing is related to the analysing and providing the customers with their own needs and
demands which are used in order to satisfy the needs and demands of their customers. It is the
coordination of different marketing activities with the help of which an organisation makes
possible their expansion process outside their home country. The key concepts of international
marketing are acknowledged to be contract manufacturing, countertrade, export, import,
franchising, joint venture etc. In this regard, it has been analysed that a firm seeking to carry out
international marketing may leverage any of the before mentioned concepts and thereby enhance
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its present market standing. At the time of making the operations of an organisation at
international level, the first and foremost objective of the company is to make the products
according to the needs and demands of their customers with the help of which the company
could acquire market share in the new market. The following company is currently operating in
UK only so with the help of expansion of the business it will be possible for the company to
make improvement in the overall processes of the company and the increment in the revenues
and incomes of the company will also run in positive way (Demangeot, Broderick and Craig,
2015). Due to this reason, the company has chosen the way to make improvement in the working
of the organisation with the help expanding their business over the boundaries of the country.
The company will introduce some new products in the new market in which it is going to be
established. There will be several different flavours which are provided to the customers with the
help of which it will be made possible to make improvement in the overall processes of the
company. The introduction of the new products for the customers will be done in China because
the people of this country are more health conscious. The reason behind the expansion process of
the company is related to making improvement in the growth and development of their
organisation such as maximisation the sales, profits and revenues of the organisation.
Scope of International Marketing
In the current period of times, there is not restriction on increasing the operations of the
business. The companies are free to enter new markets according to their suitability and
preferences all over the world in order to make increment in their revenues and incomes (Ghauri
and et. al., 2016). There are also a large number of opportunities in the international market that
provides the companies with the chances to make improvement in their customers base, services
and the profits as well. In case, an organisation wants to increase the level of their services than
this will possible with the help of making services of an organisation to be available at
international level. The advancement in technology is also important aspect which is needed to
be taken into consideration by the companies so as to give competition to different companies
operating at international level. So the explanation of scope of the company when it operates it at
the international level has been provided as under:
 The scope is related to getting positive outcome from the work of organisation with the
help of offering products and services according to the needs and preferences of their
customers impacting positively on the growth and success of the company that could be
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measured in terms of profitability, productivity and customer base. Thus, it can be said
that international marketing has a wide scope as it provides a company with the
opportunity to enhance its current financial performance and thereby improve its market
standing.
 The requirement of awareness of firm related to the current trends going on at a place is
also important because the use of outdated trend will impact negatively on the growth and
development of the organisation (Gillespie, 2015). By gaining knowledge of the latest
and emergent trends at market place, a firm can appeal to the audience in an effectual
manner and retain them for a longer period of time in future context.
Explaining the Rationale to Expand Market Internationally and Various Types of Routes to
Market the Company
The main reason for this organization is to operate its work at international level to make
development, upgrade business size and increasing profit. The administration of CafePod need to
extend its business with the goal that it can offer its current and new healthy shakes items to its
international target audiences so they can give fulfilment to their needs. Another rationale with
respect to business development is to procure profit to improve financial state of the organization
and increase upper hands from the international market (Hoppner and Griffith, 2015). The reason
for working business internationally is that in the event that the organisations maintain their
business in international market, at that point they can get international customers, adversary's
advantages and increase more overall revenues in their business by assembling merchandise
according to universal market request. There are a few purposes for working the business
comprehensively. Some of them are referenced in setting of CafePod are provided as under:
 The explanation can be working the business internationality is that in the event that the
organization give items according to the necessity of international customerss, at that
point the firm can enlarge the deals in term of upgrading profitability.
 Another explanation can be keep up great political connection in setting of business.
Since when an organization work its business internationally then it keep various
principles and guideline of different countries which can be helpful for the organization
so as to enter in to new market.
The description of the routes and ways through which the firm could enter to the new market and
expand their business are provided as under:
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Direct Route: The management of the organization can make use of those routes through
which it can make direct contracts with the individuals in international market with motivation
behind offering products and services to them (Katsikeas and et. al., 2016). The organization of
separate organization can utilize a few channels like offering, salespeople, sites conveyances,
leading shows, disseminating the mail request lists to reach their intended interest groups. It help
in making a decent effect and hold customers till long time frame. These ways and courses are
gainful to the organization in light of the fact that with the assistance of them it can reach the
intended interest groups. For instance, website is an immediate course to the organization to
showcase and when an organization make advancement or include another item in its product
offering then right off the bat it give data about it on the organization site. With the help of this
route, the respective organisation can create awareness among people regarding its offerings and
thereby gain their support in terms of increase in purchase.
Indirect Route: It think about the channels where the firm goes into an agreement with
outsider and hand over the duties to impact conduct of customers to them. There are a few
channels which can be considered by CafePod, they are discussed as follow as:
Alliance Partners: It shows to the team which are smaller in size but processes the
ability to communication particular firm towards the business initiatives which can be
undertaken by the organization to affect and powerful passage at marketplace. It is a market
course which is gainful to the particular organization since when the organization work its
business internationally then it can give development choices, access to target markets and give
the information and asset sharing. Sometimes it very well may be influence the business in term
of less effective communication, poor resource allocation and loss of control over important
issues like product quality, working expense and so forth (Kotler and et. al., 2015).
Channel Partners: It refers to those organizations who have technical expertise to
impact the consumers mindset and make them to investigate the upsides of the products and
services which are offered by the organization. The administration of CafePod can utilize these
directs in type of course and approaches to showcase. Along these lines to market can be
additionally advantageous to CafePod in various terms like sparing the cost, time and customers
comfort in light of the fact that because of appropriation of the products and services. Be that as
it may, income misfortune, loss of communication control and loss of product significance can
be horrible for it. By adopting this route to market, the respective firm can enhance its market
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standing as channel partners would provide the company with effective guidance and suggest
strategies through which CafePod can gain edge over the rival firms.
Opportunities and Challenges: When an organization work its business in to
international market the it face different difficulties and development alternatives. In case of
CafePod, the organization can likewise confront some issues and can pick up development
alternatives. Some of the most crucial challenges which can be witnessed by this firm while
gaining entry into international market are unstable government, political limitations and
adverse economic conditions. Some other challenges that can be encountered are acknowledged
to be excessive taxes, trade restrictions and many more. These may hinder the organisation from
carrying out its activities in an effective manner.
The most significant opportunities which can be gained by the respective organization
while gaining access into international market can be access to talented pool of individuals,
abundance of technologies and resources. This would provide assistance to the corporation in
boosting its business, upgrading overall efficiency, increasing productivity and facilitating
increment in customers base.
TASK 2
Key Criteria and Selection Process to Use While Considering to Enter the International Market
During the period of entering in international market, the organisation should consider
different criteria like growth rate, way of living of individuals in that country and others. In
setting of CafePod, there are a few criteria which can be considered by the management of the
organization to enter in international market. In key criteria and selection process in regards to a
international market, the organization can think of some as points and they are characterized as
under:
Cost of Labour: In China, the Cost of Labour is low in contrast with UK, so the organization of
CafePod can thought about this country to extend its business and enter in international market.
This will be beneficial to the organization to spare its work cost (Kotler and et. al., 2018).
Lifestyle of People: In China, people live basic life and solid life in contrast with others like UK.
At that instance, individuals prefer toward liquid diet and healthy beverages in their dinner and
food. So the management of CafePod can get a wide scope of growth opportunities. Since this
organization need to grow its business with the help of its new flavoured healthy drinks which
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can be loved by the number of inhabitants in this nation. It will be beneficial to expand the sales,
profitability and improve productivity of the firm.
Growth Potential-It is an another criteria to choose a market where an organization can work its
business successfully. On the off chance that CafePod work its business sin international market,
at that point it can look through the development potential in the market in context of
innovations, needs and requests of customers, rules and guidelines, talented workforce and
others.
Market selection is likewise play and imperative to enter the matter of an organization at
international level. The selection procedure of stamping is as following in context of CafePod:
International Marketing Objectives: It is the initial step of this procedure which
defined that the management of the organization designed their goal before enter in the
international market like expansion of the business, earning profit and fulfilling customerss
needs and so on.
Parameters for Selection: It is the following stage of this procedure inside which the
organization choose the parameter to picked the market. The particular organisation can set
parameter to choose select market based on accessibility of resources, international environment,
market condition, national specialists plans and policies, rivalry and so on (Michaelidou and et.
al., 2015).
Short Listing Market: After analysing the parameters of selection, the management of the
organization can wait list the market based on chosen factors. In this stage, the organization can
choose a market which can be helpful to the organization and where the organization can gain
more competitive advantage over their competitors.
Test Marketing: After selecting the market, the manager of the organization test the market by
propelling its products and services at marketplace. It help the producers in surveying in general
reaction of the customers from a specific market, after tested success, the production can be
continued on a large scale.
Commercial Production: It is the last step of this procedure where once the item is tested in the
market, the firm proceed with mass production, minor improvement. The management of
CafePod can create huge number of products and services according to their customers' requests
and offer them to their customerss.
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Different Strategies of Market Entry With their Advantages and Disadvantages
There are different evaluation criteria and market entry strategies with the help of which
it will be possible to make their entry possible in the new market. The advantages and
disadvantages of different ways of market entry has been provided as under:
Franchising: The following term can be defined as the process in which the owner gives
right to other individuals to run the business in the name of their business and collects some
amount from them as a charge of making use of their name (Morschett, Schramm-Klein and
Zentes, 2015). It refers to the process of arrangement in which an organisation provides the right
to other organisation to make use of their trademark in order to do the business in the name of
other business, systems, procedures and many more. The advantages and disadvantages of the
following strategy has been provided as under:
Advantages: It will be beneficial for the management to make use of this strategy in
order to enter the market because the company needs not much to spend on the advertisement.
The company is making use of name of already well renowned brand.
Disadvantages: Here, it is related to the restrictions which are imposed on the
organisation at the time of selling products and purchasing of raw materials for the effective
running of the organisation.
Partnership: It refers to that form of business in which tow or more individuals jointly
forms an organisation or firm with the motive of earning profit. The profits will be shared in
between them. The advantages and disadvantages of this strategy has been provided as under:
Advantages: It is related to quick decision making process as there are less number of people in
the organisation so it is not difficult to make decisions in an appropriate manner.
Licensing: Hereby, an organisation enters into a business agreement with licensee within
foreign market. Against fee or commonly referred to as loyalty, licensee purchases right to utilise
the production procedure of corporation, trademarks, patents etc.
Advantages: The primary advantage of making use of licensing is that a firm can rapidly
facilitate expansion without huge extent of risk and extensive capital requirements.
Disadvantages: The company has relatively less control over the licensee.
Direct Exporting: This can be referred to that mode of exporting whereby an
organisation capitalises upon economies of scale within manufacturing concentrated in domestic
market and accessing enhanced control over distribution.
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Advantages: This helps the entity in facilitating better protection of IP and raising its
existing level of sales as well as profits.
Disadvantages: This strategy of market entry requires high start up cost as well as
involves extensive risk.
Indirect Exporting: This can be referred to as the strategy whereby exporting takes
place by way of domestically based export intermediaries. Hereby, the exporter enjoys no control
over its offerings within the international market.
Advantages: Hereby, the firm enjoys rapid access to market and relatively lower risk
than direct exports.
Disadvantages: The execution of this market entry strategy results in lower sales for firm
as opposed to direct exports.
Market Assessment Criteria
Some of the market assessment criteria some of them are characterized as provided as
under:
Market Size:
It is the significant instrument which help in assessing a market. The management of the
organization and examine that what number of people are effectively acquiring products and
services of the organization? In which market areas the firm can work its business (Murphy,
Laczniak and Harris, 2016).
Speed to the Market:
It is another factor assess a market by the administration of the organization. In it, the
firm can screen that how rapidly the market will help in selling the products and services of the
organization.
TASK 3
Overview of the Key Arguments in International Versus Local Debate
It is important to view as that universal promoting is good for organisations since it help
in giving development alternatives to expand the business, profit and income of the organization
by offering its services to its intended interest groups by assembling products and enterprises a
for each their needs and prerequisites. So they can show their advantage and hold with the firm
till long timespan. Successful nature of infrastructural and deliberation offices help in giving
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favourable circumstances to the substance as far as expanding piece of the overall industry and
net revenues.
So as to it, local marketing falls behind international advertising as this keeps an eye on
inadequacy the assets, raw materials, infrastructure just as expected innovation to direct creation
in a way that can outfit upper hands to the firm with respect to universal contenders. Local
marketing isn't a lot of ideal a the way to get consideration of huge customers base which isn't
reach in the to the organization in residential country (Parry, 2016).
A portion of the populace accept that local marketing don't give benefits in focused
market as the previous is less decomposable and the elements are somewhat familiar with the
market situation of home country. The money related assets required for building up the name
and position of the firm in home nation is a lot simpler than while going international. In this
manner, the possibility of sustainability is high when the organization is engaged with local
marketing. With respect to, International Marketing, it is found to be powerful as the customers
contact in international market is difficult to kept up. Since this owes to the nearness of number
of adversaries who are continually trusting that a possibility will demand the intended interest
groups of a setted firm and limit their market development and offer too.
Product, Price, Place and Promotional Distribution Approach Differs in a Variety of International
Contexts
Marketing Mix is the way toward placing a correct product at perfect spot in opportune
time so customers can take benefits and give fulfilment to their needs and requests. 4P's of
marketing mix are product, price, place and promotion which are profoundly influenced by the
international advertising in various manners like high challenge, change in customers needs and
requests and so forth. Every nation is one of a kind in term of language, culture, esteem,
conviction, customerss needs and needs and others (Skarmeas, Zeriti and Baltas, 2016).
Concerning, while at the same time working the business in China and other international
markets, the promotional activities like strategies, plans, products, place, promotion and so on
will be in contrast of home country.
4P's of
Marketing
London China & International market
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