International Marketing Strategies and Analysis for CafePod

This report provides a comprehensive analysis of international marketing strategies tailored for CafePod Coffee Company, focusing on its potential expansion into the German market. The report begins with an introduction to international marketing and its differences from local marketing, followed by an overview of CafePod and its product offerings. It then delves into the scope and key concepts of international marketing, the rationale for international expansion, and the opportunities and challenges associated with entering new markets. The report explores various international marketing entry approaches, including exporting, and discusses the criteria and selection process for entering international markets, along with market entry strategies and their advantages and disadvantages. Furthermore, it addresses how and why CafePod should enter the international market, comparing local and global market dynamics and examining the marketing mix differences in each market. The report also covers international marketing approaches, competitor analysis, and the orientation of international businesses, culminating in recommendations for CafePod's expansion strategy. The report highlights the importance of understanding the target market, developing a customized marketing plan, and effectively communicating the brand message to succeed in the international market. Finally, the report concludes with a summary of the key findings and recommendations, emphasizing the strategic importance of international marketing for CafePod's growth and brand building.

International
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
About the organization...........................................................................................................3
International marketing and its difference from local marketing...........................................4
Scope and key concepts of international marketing...............................................................5
Rationale for an organisation to want to market internationally............................................6
Opportunities and challenges of international marketing.......................................................7
International marketing entry approaches..............................................................................7
Key criteria and selection process while entering in international market.............................8
Market entry strategies and their advantages and disadvantages.........................................10
How and why the company should enter the international market......................................11
Which is better local or global market.................................................................................11
Difference in marketing mix in each market........................................................................12
Approaches of marketing internationally.............................................................................13
Competitor analysis..............................................................................................................14
Orientation of international businesses................................................................................14
Recommendations................................................................................................................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
As the businesses are expanding their markets so that they can remain competitive in the market
and attract more number of customers it is important that international marketing strategies,
principles and approaches must be well known to them. This can help them in increasing their
international market share strategically and also they can create an international brand image and
gain economies of scale. International marketing strategies can help the businesses in capturing
the market in an efficient manner so that the sales of company can increase and large number of
profits can be made (Andersson and Evers, 2015). It this report CafePod Coffee Company is
taken which is coffee company that was founded in2011 and has its headquarters in London, UK.
The company provides coffee in various categories such as smooth, intense, ristretto, Arabica
lungo, decaffeinated etc. It also offer espresso blends using coffee capsules which are made of
food grade recyclable plastic. The company operates in the market with a competitive spirit and
keep on innovating its products so that high customer satisfaction can be achieved. It is now
aiming at expanding its business in Germany which will give the company a competitive
advantage and also it can tap the large market of Germany with its unique way of making coffee.
In this report this scope and concept of international marketing, ways of entering in international
market, factors that affect businesses, importance of choosing the right market to expand etc. will
be discussed that will help CafePod in expanding strategically its business.
MAIN BODY
About the organization
CafePod coffee company is well known for its unique ways of making coffee that help in
giving adventurous experience to coffee drinkers so that high customer satisfaction can be
achieved. The company is located in London, UK and is highly creative in its way of making
different varieties of coffee like smooth, intense, decaffeinated, origins Sumatra lake tawar and
compatible pods. The company work in the market with innovative spirit so that new ways can
be designed that can help in attracting more number of customers and increasing its business. At
present its offers its service in UK by using original coffee seeds so that high quality of coffee
can be produced (Demangeot, Broderick and Craig, 2015). The price at which it offers its
products are moderate which help it in attracting a large number of customers and also in
enhancing their experience by offering them the highest quality of coffee made by using high

quality coffee beans. In order to increase its market the company is aiming at expanding its
market in Germany so that the untapped market can be explored and more profits can be earned
while also creating an international brand image.
International marketing and its difference from local marketing
According to the American marketing association, “International marketing is the
exchange of goods and services across the international boundaries by appropriately pricing,
promoting and distributing the items so that the organisational goals can be achieved.”
As per the views of Kotler, “Global marketing is related with integration and
standardisation of marketing actions so that various nations can be brought together for the
exchange of goods and services that can help in reaching to customers in various untapped
market.”
International marketing is thus related with application of marketing strategies and action
other than the national boundaries so that the goods and services of company can be offered in
the international markets. This help the companies in gaining the attention of a large number of
customers and also help it in building a brand image of company internationally. Following are
some differences in domestic and international marketing that can help CafePod in understanding
the difference in how marketing in Germany should be done so that attention of customers can be
gained:
Basis Domestic Marketing International Marketing
Meaning It relates to application of marketing
practices within the nation so that the
local people can be attracted as per
their taste and preferences (Navarro-
García, Schmidt and Rey-Moreno,
2015)
In this marketing actions are applied
internationally so that the people other
than locals can be attracted so that
sales of company can increase and
help in the expansion of market of
company.
Area served Only the local areas which are
nationally present are targeted.
The market areas which are present
outside the national borders are
targeted.
Government
interference
Only the national government
interferes in the business.
Both the national and the other
country’s government interfere in the

business of company.
Business
operation
The business operates in the home
country and has all its operations
locally.
The operations of business exists in
multiple countries where it operates.
Use of
technology
The technology is only used so that
local markets can be efficiently
captured.
Technology is used to capture
international markets.
Capital
requirement
The requirement of capital is
comparatively low.
Huge capital investment is required to
expand internationally.
Scope and key concepts of international marketing
International marketing has helped business in doing promotion of its goods and services
within international market in order to generate large opportunities that is presented under these
markets. This is helpful in capturing of those opportunities which going to lead towards
expansion of business. Following are those scopes which can help in establishment in
international market and they are explained as follows:
 Imports: This is helpful to business in importing of products. So that they can be resold
within domestic market. It is going to lead towards running of business and also is able to
meet demands put up by the customers which are related to international products (Kraus
and Filser, 2016)
 Exports: This has helped a business in exporting of its products within international
market. This is done in order to increase their sales and also profit can be increased.
 Management of international operations: Through this way of international marketing
companies is able to establish their production and also assembling of facilities in other
countries is going to help in gaining of economic scale.
 Joint venturing: This is helping in contribution of business which is being operated
together in the market and can expand business within international market.
That is why this is said to that international marketing which is helping a business in its
expansion and the business in global market. All this is done in order to offer product and
services to its customers in this market which is able to capture opportunities related to growth of
an organization. This is also very important in international market which has been oriented to
foreign trade. All this is done to follow guidance of selling their products in foreign market and

is also able to establish in international market. In order to do marketing of business trade at
international level it is important that guidance is being followed that is going to help in working
legally and ethically in international market.
CafePod can adapt its marketing strategies in relation to different market by analysing the
market so that the needs and wants of customers can be known which can help in application of
effective marketing mix and STP so that target customers can be attracted and it can successfully
sustain in the international market. Four steps can be followed in order to achieve company goals
which are knowing the market, developing marketing plan, customising market approach and
communication of message.
Rationale for an organisation to want to market internationally
CafePod is having a rationale that is going to lead towards expanding of market
internationally. All this is done for gaining of various benefits that is associated with
international marketing that is going to help in upliftment of sales and profit within an
organization (Rezaei and Tavassz, 2016). This is also helpful in improving of performance of a
company in market. As this is going to increase efficiency of deal which is going to help in
adopting of those innovative ideas which is going to promote those goods that is going to help in
gaining of higher customer satisfaction. Following are the other reasons due to which it is
expanding its business in Germany:
 Increase sales: This is helpful to Cafepod and can be the way of expansion to reach to
its customer. It is going to present under those market for demanding of company for
goods. This is helpful in creating that demand which is going to those companies in
which goods can be created by the way of marketing which will help in increasing its
sales of unique coffee products.
 Improve profits: CafePodcan be able to export to Germany in a manner of international
marketing and is able to sell its goods towards profitable prices that is going to increase
its profit (Strielkowski, Tumanyan and Kalyugina, 2016).
 Increased innovation: After the help of expansion CafePod can be innovative and its
product is like to use high quality coffee beans so that the demand for highly satisfying
coffee in the busy lives of people of Germany can be achieved.

 Economies of scale: As the labour which is available in Germany is cheaper than UK it
can lower the costs of company and can help in achieving economies of scale so that the
profits of company can increase.
 Emerging markets: As the people in Germany are usually working class who are always
busty and need a boost of energy through refreshing coffee which gives CafePod the
opportunity to expand its business in Germany so that it can deal with the demand of
unique and high quality coffee in market.
However there can be certain type of risk that has to be faced by business in international
market and they are as follows
 Global economy: Global economic factors is going to effect a business in international
market because this can make an impact over trade and amount of tax that has been
applied over the operation of business that affects their profits (Yu and Hong, 2017).
 More competition: An expansion of such business in international market in a company
has to face more competition within the market. As per it there can be many firms that are
present within market has to deal with same range of services and products.
 Tariff barriers: All tariff barriers in international country where an company is marketing
its product which can get affected in its business. This is going to increase cost of doing
business within the market.
Opportunities and challenges of international marketing
There are various opportunities that can be gained by CafePod through international
marketing like access to new customers so that the customer base of company can be expanded,
access to cheaper sources of finance, gaining economies of scale, developing an international
image of company etc. These opportunities can be gained by the company while expanding its
business in Germany so that more sales can be achieved. However, certain challenges that can be
faced by company are managing long supply chains, adjusting of the product to local customer’s
taste, exchange rate fluctuation, cross cultural management etc.
International marketing entry approaches
In a business lot of routes are required to be followed in order to enter in the international
market. This is going to lead towards expansion of business and some of these routes are
explained as follows:

 Exporting: As per this it is that way in which an organization has to sell their products
in other countries. All this is done through the way of shipping. All of their products that
is manufactured in one country is going to make them available to the customers of other
country. It is better and a good way through which companies is able to expand their
business by reaching to the potential where customers are located in other countries. Licensing: It is an official permission by the way of an agreement which is given by a
business to another business which is located in other country so that the licensee
company can use the resources or assets of the licensor company. This is going to help an
company in gaining license that is required by the company for reaching to its customers
in an foreign country. This is to be done by way of delivering the product and services to
them (Amin and Kaswuri, 2016).
 Franchising: This is another manner in which an business is to be expanded
internationally through giving of the rights to an franchisee and usage of know-how
procedure, intellectual property, business model, brand name and the right to sell the
products and services of the franchisor company.
 Joint venturing: Under this an organization partners along with an foreign company is
going to deal with the market. So that they can sell their products in market by sharing
the profits in certain percentage.
CafePod can utilize the way of franchise in order to expand its business inside Germany. This
is going to be helpful because it is able to deal with the needs and wants of customers in
Germany. In other words this means that this is going to help the company to establish itself as
bigger entity in market of Germany. It is also very efficient in terms of cost and is also easier
method of expansion, that is going to allow a company to generate benefits out of assets within
an existing marketing firm.
Key criteria and selection process while entering in international market
Certain criteria is there which helps in selection process that is going to be used by
Rowlinson. This is going to lead towards selection of a country in which expansion of business
is going to take place. Following are the key criteria that is going to affect selection of a country
in terms of expansion:
 Environment and market analysis: This is important that the environment and market of
the country has been analysed because of the fact, factors affecting a business can be

marked out this is going to help in analysing of problems related to business expansion.
That is why use of strategic management tools is done. These tool is PESTLE analysis
thst help in analysing of business environment of the country.
 Analysis of competition: It is important that the competition which might be faced by the
company in market can be analysed so that the marketing strategies can be decided by the
company. This is done in order to attain attention of customers. Also it is helpful for a
company in positioning its product and services that is there in the market. For increasing
of sales (Beneke and Soriano, 2016).
 Distribution channels: The distribution channel should also be analysed which is
important to gain the supply of raw materials from suppliers and also to reach to the
customers in an efficient manner. It also help in making the supply chain of company
efficient and more effective
 Demand analysis: Demand of a company for its product and services is very necessary
and is required to be analysed because of the pricing strategies which can be determined.
For selecting the best market for the company to expand following steps needs to be
followed:
 Determining expansion objectives: It is important that the aim of expanding in
international market is determined by company so that it can know about the resources it
will require and the type of customers it want.
 Parameters of selection: It relates to evaluating the parameters that can make a market
attractive like resources available, external environment, competition, taste and
preference of customers etc.
 Preliminary screening: In this the factors that impact a business both positively and
negatively are analysed (Schmid, Grosche and Mayrhofer, 2016).
 Short listing preferable markets: In this step all the markets that seem favourable are
selected.
 Evaluation and selection: The markets are analysed based on the cost benefit analysis so
that maximum profits can be earned.
 Test marketing: Small areas in the selected market are tested by analysing the response
of customers towards the company goods and services.

 Production starts: After achieving positive results commercial production is started by
company.
Market entry strategies and their advantages and disadvantages
Various strategies can be used by CafePod coffee Co. so as to enter in the market of
Germany which are listed below with their advantages and disadvantages:
1) Licensing: In this right to use a company’s name and processes are given to other
company so that new market can be entered.
Advantages Disadvantages
 It help in entering easily in the
unknown market.
 New business opportunities can be
gained.
 No unique marketing approach needs to
be formed.
 The dependency on licensor slows
down the decision making process.
 It has to be renewed after some time.
 The licensee might not be able to use
the rights in an efficient manner.
2) Exporting: Sending good produced in one country so that they can be sold in other
country.
Advantages Disadvantages
 It help the company in having full
control on export activities
 Goodwill of company can remain intact
 It also help in knowing about the
market conditions.
 It requires huge capital investment to be
able to export on a regular basis.
 The theft from warehouses etc.
 Distribution cost of company can
increase (Zhong, and et. al., 2016).
3) Franchising: Allowing another company in other market do deal under the name of
parent company.
Advantages Disadvantages

 The established market of franchisee
company can be used efficiently.
 Franchise have higher rate of success.
 It help in cost effective expansion of
company.
 The costs involved in franchising
company rights are high.
 Misunderstanding in using company
processes can occur that can affect the
quality of products.
4) Joint Venture: Partnership between domestic and foreign firm so that entry in new
market is possible.
Advantages Disadvantages
 It is the simplest method of market
expansion
 The risks and costs involved are shared
by both parties (Samiee, Chabowski
and Hult, 2015).
 Managing the resources of both
companies can become difficult.
 Interest issues might arise with both the
parties.
How and why the company should enter the international market
From the above strategies that can be used to enter international market, CafePod can use
franchise as the method of expanding its market in Germany. Franchise is the simplest and most
commonly method which is used by many companies that help in capturing the markets in other
countries. It also helps the company in providing the customers with similar products which are
originally offered by it so that brand recognition can be created and high customer experience
can be achieved in other market as well. Following are certain recommendations that can be
applied by CafePod for its successful expansion:
 It is important that a right franchisor is selected in the foreign market that can use the
rights, trademark, processes, systems etc. of the company in an efficient manner.
 The use of effective strategies of management and leadership is important so that the
benefits of franchising can be achieved.
 Funds must be arranged from reliable and authentic sources so that expansion of
company can occur effectively.

Which is better local or global market
Global markets help the businesses in exploring the opportunities that are present in the
international markets which can be grabbed by the application of proper marketing strategies and
approaches. It also help the companies in innovating their products and servicers so that the taste
and preferences of customers in international market can be met in an efficient manner. Also the
global market can provide immense opportunity to build a global market recognition that can
help in attracting more number of customers to the business (Tassabehji and Isherwood, 2014).
Use of advanced technology can also be done so as to improve the company products and
services so that better customer satisfaction can be achieved and the quality can be maximised.
Local market on the other hand restricts the growth of the company as only the needs and
wants of local customers are satisfied by the company which also limits the level of innovation in
its products and services. Also the company cannot gain economies of scale without expanding
in the markets that help it in achieving resources at lower rates. It also limits the approach of
company into untapped markets that can help in increasing the profits of company.
Difference in marketing mix in each market
As the companies deal in different markets having different customers it is important that
they use different marketing mix strategies so that the customers can be attracted in an efficient
manner depending on the tastes and preferences of customers. Following is the marketing mix
that must be applied by CafePod while expanding its business in Germany:
 Product: CafePod can offer highly refined and high quality of coffee beans in preparation
of various kinds of coffee so that high customer experience can be achieved.
 Price: It is the rate at which company offer products to its customers depending on the
value it is able to create for them. CafePod can price its coffee by following penetration
pricing policy so as to attract customers in the new market and enter strategically.
 Place: It is related with the place at which customer can avail company products and
services. CafePod can open its outlets in Germany and can also offer coffee through
online marketing (Velazquez Abad, 2017).
 Promotion: CafePod can promote its products by using social media, print media and
other platforms so that a large number of customers can be reached.