International Marketing Strategies and Analysis: Sainsbury's Report

This report delves into the realm of international marketing, focusing on strategies and applications relevant to Sainsbury. It begins with an overview of international marketing, defining its scope and key concepts, and exploring the rationale behind global expansion. The report examines market entry strategies, including key criteria for market selection and the various approaches Sainsbury can adopt. It analyzes the opportunities and challenges presented by international marketing, including the impact of factors like market share, economies of scale, and political instability. Furthermore, the report investigates the global versus local debate, evaluating how Sainsbury can adapt its marketing mix across international contexts. It also assesses competitor analysis and provides recommendations for maximizing opportunities in the international market, offering a comprehensive analysis of international marketing strategies tailored for Sainsbury's global expansion.

INTERNATIONAL
MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P 1 Scope and key concepts of international marketing..............................................................1
P 2 Rationale and routes of international marketing...................................................................2
M 1 Opportunities and Challenges faced in international marketing..........................................3
LO 2.................................................................................................................................................4
P 3 Key criteria and selection process to enter in the international market.................................4
P 4 Different types of marketing strategies with advantages and disadvantages........................5
M 2 Market evaluation criteria and entry strategies....................................................................6
LO 3.................................................................................................................................................6
P 5 Overview of main arguments in the global versus local debate............................................6
P 6 Investigate ways in which product, price, and promotional distribution approach differs in
a variety of international contexts................................................................................................8
M 3 Evaluation of context and circumstances in which Sainsbury should adopt a global or
local approach, also highlight implications of doing so..............................................................9
M 4 Ways to adapt the marketing mix of Sainsbury in different international markets.............9
LO 4.................................................................................................................................................9
P 7 Analysis of various international marketing approaches Sainsbury can adopt.....................9
P 8 Comparison of home and international orientation and ways to assess competitors..........10
M 5 Evaluation of various marketing approaches and competitor analysis in relation to an
organization and recommendation on ways in which they should operate in an international
context........................................................................................................................................11
Recommendations......................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
International marketing can be defied as marketing on global scale that helps
organizations in conducting business at global scale in more than one country. Global marketing
further helps an organization in conducting their business in any part of world by taking their
operations at global level (Watson IV and et. al., 2018). In order to take business operations at
global level it is important for organizations to develop their global objectives, gain competitive
advantage and sustain their business at global level. There are various kinds of factors that can
impact international marketing of an organization, some of them are: market share of an
organization, their economies of scaler etc. If a local organization wants to expand their business
at international level, there are various kinds of factors that are important for organization to be
analysed so that they can successfully enter into international market. Some of these factors are:
market entry strategy, market entry route, ways in which products and their pricing are affected
when an organization enter at international market. This report will lay emphasis upon ways in
which Sainsbury can enter into international market and adapt themselves as per changing global
market. This report will further focus upon strategy to enter global market, ways in which
elements of the marketing plan can be adapted or standardized across international markets, ways
in which marketing contributes to business strategies in an international context, and ways in
which organizations should be structured to maximize the opportunity in an international market.
LO 1
P 1 Scope and key concepts of international marketing
Scope of international marketing essentially includes exporting of goods and services in
the foreign markets. Exporter has to perform various activities for exporting are-
Establishing a branch for international marketing company has to establish its brand in
foreign country. Through branches exporters do sales in the global market and take all marketing
and promotional efforts and after sales service in the foreign market (Taylor, 2017). For establish
branch in the foreign market it need a lot of investment and ready stock. Licensing agreement is
also come under the scope of international marketing. Licensing is the agreement between the
company seeking to do business in the foreign market under industry property rights that is
patents, trademarks, technical knowledge etc. Franchising is the special form of licensing in
which franchisor gives all the authority to the franchisee to operate its entire business. The
franchisor has all the control regarding marketing, training, technical advice and stock control.
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International franchising is the more powerful form of international marketing. Joint venture and
collaboration means two or more companies came together to enter a new market. Joint venture
formed by the international firm sharing ownership and control with the local firm in the foreign
country (Gomes, Sousa and Vendrell-Herrero, 2019).Consultancy services the exporting
company offers consultancy services by taking turnkey projects in foreign countries. Exporting
company send their consultants to foreign companies to guide and direct the manufacturing
activities. Technical and managerial know-how is provided by the exporting company to
importing company. Technicians and managerial personnel of exporting company guides and
train the technician and managers of the importing company.
Key concepts of international marketing are-
Global marketing is marketing on global scale to taking global differences, similarities
and opportunities to reach global objectives. Globalisation refers to integration of markets in the
global economy. It is another international marketing concept that carries out different means of
communication such as social media, print etc (Agwu, and Onwuegbuzie, 2018). Export
marketing when company want to export products or services to the foreign countries, export
marketing is used. In this company mainly focus on the transportation of products with distinct
trade. Multi domestic marketing is a strategy assumes that customers are drastically differs from
one another in different countries or region. Product should be tailored according to their need
and wants. Business and operation activities are extended at global level. International market is
the geographical region where a company conducts its business that is outside to its local
country. This is done by company for the global recognition, through this company did import
and export of their goods or services to different clients and branches.
P 2 Rationale and routes of international marketing
International marketing is termed as the flow of business activities designed to promote,
plan, price and direct flow of goods or services of the company in the global market for earning
more profit. Different international marketing strategies are used to select the best routes for the
company; it can be done through licensing, franchising, joint venture, foreign direct investment,
Piggybacking and many more. With the increase of expansion and to enter in the global market
to increase the customer base, brand recognition and earn more profit company uses different
marketing strategies route to enter in the global market (Pach, 2019). Company can choose the
way to enter in the global market by getting enter in the global market with the existing product
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which it sells in the local market, it also produce the product of same product line to sell in the
foreign market. It also chose product which is totally different from the existing product line to
enter in the global market. The route of the international marketing is set by firstly making the
objectives , then plan according to it to enter in the market and then it is evaluated to the risk
factors and through the contingency factor which affects in the entry of international market.
Several reasons to enter in the international markets are-
To increase the revenue earned by the company, it enters in the global market. Company
expanding its global market space to increase their revenue sales, reduced operational costs by
attracting large customer base (Hussein, and et.al., 2019). Enter the new market and spread risk
internationalization allows firms to diversify their business and spread the risk of decelerating
demand across different countries. Operating in the different countries give opportunities to
company to innovate and develop their products and services in different variations. Increase
customer base to enter in the international market customer’s base is also increase. With the
increase in the customer base company can sell the existing as well as new products and services
to the new customer base. With the broader customer base company can generate more business
and increase sales. Attracting new talents another benefit to taking business globally is to access
grater pool of talent. An employee that speaks multiple languages and knows about different
cultures is able to build connections with wider customer base (Mazorenko, 2019). Global team
is build that is expertise in local market and exploit the domestic market resources by connecting
with the local people. Gain competitive advantage enters in the global market before the
competitors helps to access new customer easily where there is no competitors. Company is
selling different products to the customer where their no competitors which attracts customers to
buy the product and company can earn extra profits.
M 1 Opportunities and Challenges faced in international marketing
Opportunities-
Cost benefit to enter in the global market company gets an opportunity where the
production is going in mass where company earns extra profit with the reduction in the raw
material cost and the operation cost and sells their products with good margins (Gomes, Sousa,
and Vendrell-Herrero, 2019). Foreign exchange with the enter in the foreign market company
has to exchange monetary value in terms of foreign currency and this will directly impact on the
overall growth of the business.
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Challenges-
Policies different countries have different policies, company has to understand every
countries policy before entering in the market, and might did minor modification in the product
or services. Political instability in some countries political instability faced many problems to the
company to enter in the international market.
LO 2
P 3 Key criteria and selection process to enter in the international market
Different criteria is to be considered to select the international market
Environment and market analysis Firstly understand the environmental factors of the
county and analyse the market situation according to the company requirement to know is it
suitable country to enter in the market. Different variables of the company is analysed like GDP
growth, country risk, political factors and other factors like geographic proximity. Analysis of
the competition identify the main competitors and analyse their economic evolution, their sales
and different factors like price, channels, financial position plans for expansion strategies, market
maturity and development potential. Distribution channel firstly track the supply chain of the
product form the origins point to the final users. Build a clear idea of intermediate and their
prices (Leonidou, and Hultman, 2019). Possible distribution channels are- international channel
from local market, local distributer in the local market, company’s own commercial agent, online
selling and creation of the joint venture with the local market. Demand analyse the current and
potential demand of the product in the source market. This information confirms that pre
selection process was successful and chosen market is suitable.
International market selection process
International marketing objectives first step is to ascertain the export marketing
objectives of the organisation. Market selected to serve particular marketing objectives it’s not
necessary to suited in other international marketing objectives. Parameters for the selection clear
parameters and the criteria are evaluated for the selection and evaluation of the markets.
Different parameters include firm’s resources, market situation, international environment,
government policy etc.Preliminary screening and short listing the aim of the preliminary
screening is to eliminate the markets which are not potential (Utama, and et.al., 2019). From
product to product the parameters may vary for preliminary screening. After preliminary
screening the left out markets are shortlisted by considering different factors and by more
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information used at preliminary screening stage. Evaluation and selection short listed markets are
further evaluated with the cost benefit analysis and feasibility study. Considering the company’s
resources and external environment best one is chosen for launching the product from the
selected market (Taylor, 2017). Test marketing the market is tested on the smaller scale by
launching the product in a specific part of the market that provides a feedback about the market
to the producer. Through testing it helps producer to assess the response of the consumers from
the specific market, and after the test success production process is started in mass scale.
Commercial production after successful testing, company goes on the mass production. Minor
modification can be done at this stage.
P 4 Different types of marketing strategies with advantages and disadvantages
Before entering into an international market it is important for an organization to identity
and adopt appropriate market entry strategy that can help them in sustaining within an
international market (Thomas and Maine, 2019). Each strategy has its own advantages and
disadvantages that are important to be evaluated because whenever an organization wants to
enter into international market it is important for them to analyse which strategy is suitable for
them and can help them to successfully enter into that market. Some of the market entry
strategies that can be adopted by Sainsbury to enter into international market are as follows:
 Partnership: Sainsbury can focus upon partnering with a local organization in selected
market. Using this strategy Sainsbury can get to the market much faster and can allow them
to sell their products as their partner is a native of the chosen market (Steenkamp, 2019).
Advantages of this strategy are: this strategy can help the organization in gaining better
knowledge of chosen market. But it has some disadvantages as well, such as: it do not give
direct control to the organization and there are chances that main goals and objectives of
partner organization is much different from their own goals and objectives.
 Direct Exporting: Using this strategy, Sainsbury can directly sell their products and service in
the chosen market with the help of distributors in the local market. Selected distributors in
chosen market will handle all selling of products and services in the chosen market (Wei,
Ang, and Liou., 2020). Advantages of this strategy are: organization can directly eliminate
intermediaries and give complete access of business operation in chosen market with high
profit margin. But it has some disadvantages as well, such as: this strategy requires huge
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investment and time. Not only this it is a bit difficult for organization to known needs and
demands of local customers and communicate with them in an effective manner.
 Franchising: using this strategy organization can give franchise of their business to other
local and can ask for certain amount to be paid in return. This will directly help them to
maintain their business operations in that country effectively. Advantages of this strategy are:
this strategy require low- cost investment and is one of the lowest risk strategies. But it has
some disadvantages as well, such as: organization is required to support the franchisee even
after payment is done.
Licencing: Using this organization can transfer licence of selling products and service to
another company. Advantages of this strategy are: it helps in reducing financial and
operational risk. But it has some disadvantages as well, such as: this strategy has various
kinds of restrictions upon organization in doing business.
M 2 Market evaluation criteria and entry strategies
Market evaluation is done with the PEST analysis which assesses the major external factors that
influence its operation to become competitive in the market.
 Political factor- company assesses the political stability of the country before entering in the
global market (Pach, 2019).
 Economic factor inflation rates, economic growth rates, interest rate, exchange rate all these
factors are determined by the company for the evaluation
 Social factor countries social life, culture, lifestyle, purchasing power is evaluated.
 Technological factor states that technology, innovations in the product design used by the
country.
Direct exporting strategy is used to enter in the international market. It helps to build
direct relations with the customers, have knowledge about the needs and wants and have high
changes to make greater profits.
LO 3
P 5 Overview of main arguments in the global versus local debate
When operability of an organization in local and global market comes into picture then in
such case marketing plays a vital and important role because only because of proper marketing
organization will be able to increase awareness about products and services among chosen
international or local market customers (Brata, Husani and Ali, 2017). For both global and local
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market it is important for organization to focus upon marketing of their products and services,
this is because due to increasing competition it has become extremely difficult for an
organization to sustain within this competitive global or local environment. Other than this in
order to successfully enter into international market it is important for organization to understand
which strategy will be suitable for them to enter into the market i.e. whether local approach or
global approach.
Global integration is an approach that helps in understanding degree to which an
organization can use same products, services and methods in other countries for doing business.
Whereas local integration strategy is an approach that help in understanding degree to which an
organization can customize their products and methods to meet conditions in other countries. It is
important for companies to understand factors in which local or global approach are appropriate
for them (Cateora and et. al., 2020). It can also be said that global strategy means standardization
where products and services are sold as it is in new market, whereas local strategy means
customization in which products and services are customized and then sold as per the needs and
requirement of chosen local market customers.
Global approach provide access to large number of customer base and helps organization
to provide their products and services to target customers directly, whereas in local approach
organization is provided a chance to interact with local customers so that they can identify their
needs and requirements and accordingly they can bring changes within their products and
services. Global approach can be adopted by organization when they have developed or build
local brand recognition and high brand image. This will directly help them in generating
awareness about their approach and their high brand recognition will help them in selling their
standardized products and services (Katsikeas, Leonidou and Zeriti, 2019). This can be done by
developing products and services as per regulatory requirements for example Sainsbury can
develop or manufacture their products as per EU product standards. Whereas local approach is
used is adopted by organizations that has not developed local brand recognition. So, in this case
they can focus upon identifying needs and requirement of their targeted customer base and then
develop customized products and services as per their needs and requirements.
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P 6 Investigate ways in which product, price, and promotional distribution approach differs in a
variety of international contexts
Product, price, pricing and promotional distribution, these are four most important factors
and important functions of marketing. All the four functions or approaches of marketing varies in
different variety of international context. In order to sustain within international market,
organizations need to bring changes within their product, price, pricing and promotional
distribution approaches as per the chosen international market so that they can successfully make
their products and service as available and sell it in chosen international market.
Product strategy or approaches are those strategies that focuses upon types of products
and services that should be offered in chosen international market context (Souchon and et. al.,
2016). All the decisions related to products and services related to international market context
helps the organization in selling their products and services in chosen market in an appropriate
manner. There are various product approach that can be used by Sainsbury to enter into chosen
international market, that are home ground strategy, invention strategy, and flexibility strategy.
Flexibility strategy is used with both global and local approach in which standardized products
are developed but are introduced with some additional features and are made flexible enough so
that those products can be easily sold in chosen market and can successfully fulfil needs and
requirements of customers. Home ground strategy is a kind of approach local product is sold in
chosen international market as it is without any kind of changes. This approach is used with
global approach. Whereas in invention approach as per the needs and requirement of chosen
international customers new product is invented and then introduced into market.
It is important to review pricing strategy adopted by organization because product
development cost, operational cost in every country for business operations is important and
choosing appropriate strategy for product and service selling is important so that revenue and
profitability and be maximized. Adopting appropriate pricing strategy as per chosen international
market can help Sainsbury to gain competitive advantage. There are various different types of
pricing strategies that can be adopted by Sainsbury (Sapouna and et. al., 2018). But most
appropriate type of pricing approach that can be adopted by Sainsbury is variable pricing
approach in which additional mark-up cost of products and services is added to overall total
variable cost of products and services sold by company and on the basis of this selling price
products are sold in the market.
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Promotional distribution approach is also important for companies to be focused upon
when they are focusing upon expanding their business internationally. It is important for
Sainsbury to focus upon appropriate distributional channel with low control cost, high margin,
and type of distribution approach that can provide sales ownership to them is important to be
adopted and this approach varies from different international market context.
M 3 Evaluation of context and circumstances in which Sainsbury should adopt a global or local
approach, also highlight implications of doing so
Sainsbury has already established local brand reputation and image within local market of
UK. They develop or manufacture their products and services as per EU product standards. Due
to this Sainsbury can focus upon adopting global approach for entering into international market.
This will directly help them in successfully sustaining within the chosen market and can also
help them in providing approach to reach untapped international market where products and
services sold by them are not available.
M 4 Ways to adapt the marketing mix of Sainsbury in different international markets
Adoption of Sainsbury marketing mix in different international context has been explained
below:
Product: Sainsbury can introduce products and services in chosen international market as per the
needs and demands of the chosen customer base.
Price: Sainsbury can bring changes within their pricing strategy as per the international market
i.e. If labour cot, operability and manufacturing cost of chosen international market is lower then
pricing strategy can change accordingly so that overall revenue and profitability can be
increased.
Place: Sainsbury operates in UK market currently but they can focus upon entering into untapped
international market where they can make their products and services available and enhance their
profitability and sustain within this competitive market.
Promotion: Sainsbury can use both digital and social media marketing promotional strategies for
promoting their products and services in chosen international market.
LO 4
P 7 Analysis of various international marketing approaches Sainsbury can adopt
There are many different kinds of international marketing approaches that can be used by
Sainsbury for entering into international market that can help the firm in making their products
9

and services available in chosen international market. It is important for organizations to adopt a
proper and appropriate international marketing approach that can help the firm in adopting
themselves in the chosen market and sustaining within international market. Some of the most
common type of international marketing approaches are as follows: first type of approach is
centralized international marketing approach: in this all the decision making and planning is
done from headquarter organization (Frešer, Širec and Tominc, 2020). In this approach all the
marketing planning is already and only after that, that plan is executed. It can also be said that in
this approach major decision making is done by headquarter branch of organization. Another
approach is decentralized international marketing approach in which marketing functions and
decision making are divided into small segments or distributors. Adoption of this approach
require organization to bring changes within their organizational structure so that they can
successfully operate in chosen global market. Out of both the approach which approach will be
chosen by Sainsbury completely depends upon various factors such as: market chosen, political
conditional, policies etc.
Other than these there are many other kinds of international marketing strategies that can
be adopted by Sainsbury such as: Transactional cost approach is a kind of approach in which
firm provide goods and services though market rather than having it provided from firm itself.
Another approach is standardization approach that says that overall marketing strategy adopted
by company should be same in all dimensions and in every market.
P 8 Comparison of home and international orientation and ways to assess competitors
International and home orientation are two most important type of orientation that can be
used by business organizations. Both the type of orientation is completely different from each
other. Comparison between both the type of orientation have been explained below:
Home orientation: this kind of orientation is also known as unconscious belief that helps in
explaining that home country approach that has been used by organization is much superior
(Frešer, Širec and Tominc, 2020). As per this orientation organizations focuses upon expanding
their domestic products and services within their domestic market itself. As per this orientation,
primary focus of organization is always local or domestic market despite of the fact that they are
focusing upon expanding their business in international market, firm develop their strategies and
plan according to their domestic market itself.
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International orientation: On the other hand, international orientation is a kind of
orientation which is based upon internationalization of an organization. It is completely based
upon stages in which international operations of an organization are performed (Frešer, Širec and
Tominc, 2020). It focuses upon different kinds of management planning and strategic procedures
on the basis of which global operations of the organization are being performed. This orientation
is adopted by organization to enhance their market share as in this orientation whole world is
seen as one market. Today most of the organizations are focusing upon adopting this orientation
of operating and sustaining within the chosen global market.
M 5 Evaluation of various marketing approaches and competitor analysis in relation to an
organization and recommendation on ways in which they should operate in an international
context.
There are various kinds of marketing approach that can be used by Sainsbury for entering
and operating into international market. But out of all of those approaches Sainsbury can focus
upon adopting decentralized approach in which they can divided the market in which they
operate into different segments and bring changes within their organizational structure
accordingly. Adoption of this approach will make operability of Sainsbury in international
market much easier. This will further help in removing limitation of operating in same market
and selling same products and services to same customer base. In fact, it will further help them in
providing opportunity to operate in different country’s which will further help their organization
to grow. Other than this, they can also adopt Standardization approach using which they can sell
their existing products and services as it is without bringing any kind of changes or
customization within their products and services in all dimensions and in every market.
Recommendations
Following are few recommendations that can help Sainsbury to maximize their opportunity
of entering into international market: they can adopt penetration strategy in which they can focus
upon introducing new products and services to new chosen market as per the needs and
requirement of new customers so that their overall customer base can be expanded. They can
also focus upon developing products that are specific to the chosen international market in order
to ensure its success in the chosen market. It can also be said that they should not focus upon
limiting themselves in selling their existing products and services in new market. But before
selecting penetration strategy it is important for them to analyse the chosen international market
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before selecting new strategy or developing new products. Sainsbury can also focus upon
adopting flexibility product approach that can be used by them for adding some additional
features within their existing products so that they are made flexible and can be introduced in
chosen market with lower cost.
CONCLUSION
From the above report it has been summarized that, in order to enter into international
market it is extremely important for organization to analyse chosen international market in order
to understand whether chosen market is feasible or not. Entering into international market can
provide organization with various growth opportunities and can also help them in sustaining
within international market but for that it is important for firms to choose appropriate market
entry strategy and route that will further help firm in sustaining within chosen international
market. It has further been analysed that there are many different kinds of challenges that can be
faced by organization while entering into international market that are required to be analysed
because not identifying those challenges can result in increasing risk associated with market
entry for organization which will eventually result in failure of market entry for organization in
international market.
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