International Marketing Report: Ma Baker's Expansion Plan

This report provides a comprehensive analysis of an international marketing strategy for Ma Baker, a micro bakery based in London. It delves into key concepts, including the scope and definition of international marketing, the rationale for international expansion, and various routes to market, with a focus on direct and indirect channels. The report outlines the criteria and selection process for choosing a target market, ultimately identifying Dubai, UAE, as a suitable location. It then evaluates market entry strategies, specifically licensing and franchising, highlighting their advantages and disadvantages. The report further contrasts global versus local marketing approaches and examines the adaptation of the marketing mix elements (product, price, promotion, and distribution) for international markets. Finally, it explores international marketing approaches and home versus international orientation, providing a complete overview of the topic.

International Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
P1. Scope and key concepts of international marketing.........................................................1
P2. Reason to market internationally and routes to market....................................................2
P3. Key criteria and selection process....................................................................................3
P4. Market entry strategies.....................................................................................................4
P5. Global v/s Local marketing..............................................................................................6
P6. Difference in Product, pricing, promotional and distribution approach..........................6
P7. International marketing approaches.................................................................................7
P8. Home v/s international orientation...................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
International marketing can be defined as the procedure of putting into application the
principles of domestic marketing at global scale to derive positive results for the company
(Buccieri, Javalgi and Cavusgil, 2020). The present project is based upon Ma Baker which is a
micro bakery dealing in natural and organic breads and pies, situated at Fulham London.
P1. Scope and key concepts of international marketing
International marketing can be defined as a comprehensive procedure encompassing
activities and practices across borders which lead to exchange of offerings holding value for
stakeholder groups and society (Sheth, 2020).
Scope:
The scope of international marketing is quite vast as it presents an organisation with the
opportunity to gain access into a new market by applying the marketing principles at global level
(Cateora and et. al., 2020). The scope of international marketing can also be recognised on the
basis of the notions covered under it. These are explained as follows:-
Imports: This is a form of international marketing wherein an entity is engaged in
procurement of goods from outside the national boundaries for the purposing of selling those
goods within the confines of domestic market. Import along with export is regarded to be two of
the most leveraged ways of carrying out international marketing.
Exports: Hereby, organisations send the products and services manufactured within the
own confines to other countries in order to make those markets sell the offerings to their
customers. The amount earned as a result of carrying out export is used for doing payment of
import, covering costing linked to development of products and inclusion of profit margin.
Contractual Agreements: Whereby a business seeks to expand its market, international
marketing tends to provide it with the opportunity of accelerating its sales, profit margins and
customers. This happens when organisation enters into a contractual agreement with the overseas
partner.
Fully owned manufacturing: A corporation that holds substantial interest in foreign
markets can duly establish a fully owned manufacturing setup in that location. There are several
factors which may shape the decision of an entity to setup fully owned manufacturing facility
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outside, like cost difference, liberal policies of government, effectiveness of quality control
systems, trade barriers, etc.
Concepts:
Certain concepts of international marketing are discussed as under:-
Domestic marketing: Hereby, the marketing is aimed only towards the domestic country
and holds no intent to go international.
Comparative marketing: The process of comparing a number of marketing approaches
and systems with a view to gain knowledge of their differences and similarities is referred to as
comparative marketing (Di Sanguinetto and et. al., 2019). This can be seen as a process
involving execution of analytical comparison of marketing methods as practised within a range
of nations across the globe. This helps in identifying the most effective and ineffective marketing
strategies.
P2. Reason to market internationally and routes to market
Being a micro organisation, it is important for entities like Ma Baker to consider about
the option of marketing internationally for enhancing its growth and development prospects.
Rationale behind marketing internationally
International marketing tends to act as a road map for the company to enhance its reach
within the public and thereby give an overall boost to its financial performance at market place in
the long run. In this relation, it has been identified that a large number of companies have started
leveraging social media as the strategy to inflate its scale of operations and reach among the
potential customer in new markets. This provides the company with the chance to enhance its
existent level of operations and reach out to the new audience with its wide array of offerings
(Martin, Javalgi and Ciravegna, 2020). This further implies an increment in the revenues and
profits of firm in the long run.
Routes to market
There are certain options available to a firm to select as the route for marketing
internationally. These are discussed beneath:-
Direct Route: This encompasses all those channels through which an entity can set direct
interaction with customers in global context. The common examples of channels belonging to
this route that can be considered by Ma Baker are website delivery, holding exhibition, use of
sales representative and many more (Michael, 2020).
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Indirect Route: It comprises of channel through which a corporation sets contractual
relationship with a third party or agent who is handed over the duty to sell the offerings of the
organisation in international market. The widely used channels hereby that can be taken into
account by Ma Baker consists of Alliance partner, Channel partner, system integrator and more
(Fatehi and Choi, 2019).
As per above analysis, Ma Baker should adopt for any of the channels belonging to
indirect route to market internationally. This has been proposed as the entity is seeking entry
into a new country about which it does not possess in depth knowledge. Thus, with the assistance
received from third parties, the entity can easily carry out marketing in the new market, thereby
capturing the attention of public in an effective manner. The most suitable channel would be
channel partner as they possess technical expertise that can be leveraged by the firm to gain
success in foreign market. With such kind of knowledge, entity will be able to successfully tap
the purchase behaviour of consumer in new country and boost the overall financial performance
of the micro bakery.
P3. Key criteria and selection process
The key criteria and selection process that would be taken into consideration by Ma Baker
while selecting the international marketing country are discussed in a brief manner as follows:-
Key Criteria
Infrastructure facilities: The extent to which the availability of infrastructure available
within the market is able to fulfil the demands for company’s production by the customers is one
of the most important criteria that are taken into account by an entity for international marketing.
Intensity of Competition: The market for international marketing is selected by an
organisation after thoroughly gaining knowledge of the extensive rivalry prevailing within the
country. Hereby, the success pattern and rate of organisations within specific business industry
are taken into account by the entity to determine if the country is favourable for carrying out
international marketing.
Selection process
International marketing objective: The market would be selected in accordance with the
international marketing objective set by Ma Baker. The markets that most suitably seem to fulfil
the objective stipulated by organisation reach to the next stage.
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Parameters for selection: There are a number of parameters in accordance with which an
organisation selects the market for international marketing. Such parameters are inclusive of
availability of cheap labour, availability of infrastructural facilities, extent of rivalry, extent of
liberal governmental policies, marketing conditions etc. An entity needs to take into account the
following factors while selecting the market for facilitating international marketing.
Preliminary screening: This stage would eliminate those markets that do not hold the
potential to serve as an effective international market for Ma Baker.
Evaluation: The remaining list of markets would be evaluated as per the key criteria and
then one or more foreign markets would be selected as a result. Only those markets reach to the
next level which possesses the potential of serving the objectives of Ma Baker and providing a
competitive edge to it in market place.
Test marketing and Commercial Production: The market selected in previous stage
would be tested by way of launching the bakery products of Ma Baker in that region and then
analysing the results. The receipt of favourable outcomes would imply the execution of
commercial production by the micro bakery in that region.
After taking into account the key criteria and executing the selection process, the
management of Ma Baker has decided to gain entry into the market of Dubai, UAE. This has
been selected looking upon the potential of this location to serve as an effective market for the
organic and natural offerings of bakery.
P4. Market entry strategies
Market entry strategies are crucial aspect for an organisation while gaining access into a
foreign market. In this regard, the management of Ma Baker is looking upon 2 most important
entry strategies, namely, licensing and franchising by evaluating their positives and negatives
altogether.
Strategy Description Advantage Disadvantage
Licensing Sale of rights
backed up by
patent to be
used for
 One of the biggest
advantages involved in
licensing is low cost of
market cost for the
 One of the most
prominent disadvantages
of licensing is theft of
Intellectual Property.
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commercial
purposes in
foreign market
(Lin and Ho,
2019).
company.
 Further, the financial
risk for the organisation
is lower.
 It provides assistance to
the entity in gaining
comprehensibility of
the various aspects of
local market.
 Another demerit is the
lack of control over
quality of offerings
within the confines of
foreign market.
 Licensing is offered for
a fixed time period of 5
to 10 years.
 There always exists the
threat of disloyalty that
can be encountered from
the licensee.
Franchising Sale of rights
by domestic
franchisor to
carry out
commercial
activities
through foreign
franchisee.
 This market entry
mode requires low
level of capital
investment to be
made by the entity.
 This allows an
organisation to carry
out expansion into
foreign markets in
rapid course of time.
 This leads to overall
decrement in the
personnel cost.
 This market entry
mode tends to require
control cost.
 The lower reputation
of any of the
franchises of the
company owing to the
lack of effective
quality control system
possesses the
probability of
impacting upon the
goodwill of the
organisation.
On the basis of above evaluation, Ma Baker has decided to gain entry into Dubai, UAE
by leveraging licensing. This method is selected looking upon the ease with which it allows the
company to gain entry into the selected foreign market. Further, licensing allows both the parties
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to decrease the risks included in carrying out business. From the point of view of licensee, there
are lesser risks in terms of market testing, development of products, production, distribution etc.
According to the view point of licensor, there are lesser risks in terms of sale of the offerings.
The other advantages of licensing are acknowledged to be low entry cost involved together with
low extent of financial risk.
P5. Global v/s Local marketing
Global and local marketing are 2 different concepts. It is important for the management
of Ma Baker to gain knowledge of the differences underlying between both the concepts in order
to outshine rivals at both the scales. Thus, the differences between both are presented as
follows:-
BASIS LOCAL MARKETING GLOBAL MARKETING
Scale of
business
activity
Operations take place at domestic
scale.
Business operations occur on
international level.
Risk Relatively lower level of risk is
involved hereby.
High risk owing to extensive industrial
rivalry.
Complexity Easy to conduct as company holds
knowledge of local market and
consumer behaviour.
This is complex and time consuming as
the consumer behaviour is difficult to be
comprehended.
Example Ma Baker Airbnb’s #OneLessStranger campaign
P6. Difference in Product, pricing, promotional and distribution approach
Marketing mix is an integration of 4 main elements named product, price, place
(distribution) and promotion. A company needs to take into consideration these aspects while
shifting from local to international marketing. In this regard, the management of Ma Baker is
considering the changes that exist within the market mix employed at domestic and international
level.
Element London, UK International Markets
PRODUCT Ma Baker offers fresh cakes, breads The bakery items would be altered as
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and pies developed out of natural and
organic ingredients.
per the needs, demands and
requirements of people in global
markets.
PRICE Having goodwill and large base of
loyal customers, Ma Baker was
providing bakery items in local market
at high rates.
Ma Baker would keep the prices low in
initial stage of market entry but with
the passage of time, it would apply
premium pricing strategy.
PROMOTI
ON
At present, Ma Baker is doing
promotion by way of social media
platforms.
The micro bakery would be leveraging
digital marketing, broadcast marketing
and social media in international
context.
DISTRIBUT
ION
Online website delivery is the only
way through which the entity is
currently offerings its products to
customers.
Ma Baker would make use of
intermediaries to enhance its reach and
subsequently, the sales and profits.
P7. International marketing approaches
There are a number of international marketing approaches that can be leveraged by Ma
Baker and these are briefly described as follows:-
Multinational: These can be identified as the companies that hold their branches in more
than one country but every outlet has its separate system of working. Such companies are more
focussed upon adaption of their offerings to each specific local market whereby they intend to
operate. Ex.: McDonald's
Global: These can be identified as the entities that have outlets in several nations
however they uniformly follow a common working pattern. Such companies market their
offerings via the usage of uniform brand image within the confines of all the markets. The key
emphasis hereby is upon cost management, volume along with efficiency. Ex.: Starbucks
Transnational: These are acknowledged to be the organisations which operate
substantial facilities during functioning in over one market. They do not give importance to any
nation as their domestic market. The most important advantage linked to this is that such
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companies are able to sustain a larger extent of responsiveness towards the local marketplace
whereby they do maintenance of facilities. Ex.: Nestle
P8. Home v/s international orientation
Home orientation can be referred to as the approach whereby staff of a company take
into account the similarity existing between the markets and works on the premise that successful
products of domestic market would also gain success in international context (Nakos, Dimitratos
and Elbanna, 2019).
Implication: This implies effective sync between domestic and foreign markets for Ma Baker.
This would mean that the entity would launch the same products in international markets as it
sold in domestic market and gained success there. The main intent behind doing so would be to
attain same success in the new marketplace.
Ways to assess competitors: The assumption hereby is that the rival firms are not so strong that
they can hamper the sustainability of Ma Baker. This is so because the entity possesses
confidence in its offerings owing to their success within domestic markets.
International orientation can be referred to as the approach that assumes the existence
of similarity as well as distinction within markets worldwide (Acosta, Crespo and Agudo, 2018).
These are taken into account to devise an effective strategy for Ma Baker in international
context.
Implication: This implies the attainment of competitive advantage by Ma Baker over the
competition underlying in market. Hereby, the entity offers products in accordance with the
needs and demands of international market. This will help the entity in attaining extensive
satisfaction from the new customers.
Ways to assess competitors: Herein, the market rivalry is extensive that poses threat to the
goodwill and market positioning of Ma Baker. This is so because the entity introduces products
and services aligned with the new market, which can be countered by the rivals through usage of
better technologies, materials or capital investment.
CONCLUSION
On the basis of above discussion, it can be said that international marketing provides a
company with the opportunity to gain access into foreign markets and thereby enhance its scale
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and revenues. There are various ways through which entry can be gained into market out of
which licensing is ascertained to be the best strategy.
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REFERENCES
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