International Marketing Report: Strategies for Sainsbury's Expansion

This report analyzes the scope, concepts, and rationale of international marketing, using Sainsbury's as a case study. It examines the organization's need for international expansion, various market entry routes (licensing, franchising, joint ventures, and manufacturing abroad), and the criteria for selecting international markets. The report evaluates market entry strategies, including partnerships, sourcing, and franchising, with their respective advantages and disadvantages. It further presents an overview of the global and local marketing debate, exploring how product, pricing, promotion, and distribution differ across international contexts. The report also delves into international marketing approaches, comparing home and international orientations, and assessing competitor implications.

International
Marketing

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Analyse the scope and key concepts of international marketing..........................................3
P2. Explain the rationale for an organisation to want to market internationally and describe the
various routes to market they can adopt......................................................................................4
TASK 2............................................................................................................................................6
P3. Evaluate the key criteria and selection process to use when considering which
international market to enter.......................................................................................................6
P4. Explain, using examples, the different market entry strategies, including the advantages
and disadvantages of each...........................................................................................................7
TASK 3............................................................................................................................................8
P5. Present an overview of the key arguments in the global and local debate...........................8
P6. Investigate how the product, pricing, promotional and distribution approach differs in a
variety of international contexts..................................................................................................9
TASK 4..........................................................................................................................................10
P7. Explain and analyse the various international marketing approaches organisations can
adopt..........................................................................................................................................10
P8. Compare home and international orientation and ways to assess competitors outlining the
implications of each approach...................................................................................................11
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
International marketing is exporting and importing of goods and services in different
countries. The rules, procedure, policies, promotion is same across the world. It will leads to
expatiation of the local business to global market (Bilińska-Reformat and et. Al, 2019) . This is
comprises of various strategies to achieve their marketing goal with the adaption of different
distribution channels to expand their business. Sainsbury is the chosen organisation for this
report, It is the largest chain of supermarkets in UK. It is established in 1869 and the company
became the largest retailer of groceries. The report will cover the concepts and scope of
international marketing and need for the organisation for international marketing and routes of
market which can be adopt. Furthermore, It will also explain the different strategies to enter in
market and difference between global and local debate. It will explain the various approaches of
international marketing with home and international orientation.
TASK 1
P1. Analyse the scope and key concepts of international marketing.
International marketing is the trading of goods and services across the world. With the
implication of this marketing organisation can expand their business in to new market.
International trading is exchange of capital, goods and service in different countries. Investment
is the important factor in international marketing. It is the process of investing money to achieve
its financial goal in future.
Scope of International marketing:
EPRG is stand for Ethnocentric, Poly centric, Regiocentic and Geocentric is the
management, which is used in international marketing to achieve its business goal.
 Ethnocentric- In this approach, Organisation do not market research in the different
countries and only want to do business according to the local market strategy.(Hine,
Sharp, and Driver, 2019). They do not want to change or adopt and change in doing
business in new market segment.
 Poly centric- This approach is opposite to ethnocentric, Company do market research
for the international business to effectively implementation of all the strategies.

 Regiocentic- In this approach, Company create and implement the strategies according
to the region. Organisation use this approach for the region in which it operates its
business.
 Geocentric- This approach stick on using single strategies in all countries with different
culture. The product and services manufactures in such a way that It will be useful for
local and global customers.
Concepts of international marketing:
There are various concepts of International marketing to take the business in new regions
with the expansion and achievement of business goal. Here are some concept which is discussed
below:
 Globalization- It describe the expansion of business to global boundaries with the
trading of goods and services, Investment, technology and people.(Brooke and Buckley,
2016).In context to International marketing, It plays important role in it by introducing
new segment of market.
 Closed loop marketing- It is use to analytics and insight to form a good marketing
campaigns that will help in getting good return on investment. By using this concept,
Companies will get good profit.
 International legislation- These are the laws and agreement on which two nation are
agreed to do their business irrespective of their polices and procedures across the country.
By analysing the scope and concept of international business, It can be said that business
can Sainsbury can use polycyclic approach of doing business that will help in adjusting in
different countries and various concept have their own importance in successful running of the
business.
P2. Explain the rationale for an organisation to want to market internationally and describe the
various routes to market they can adopt.
International marketing leads to expand their market in new market segment and leads to
generates more profitability in the organisation. There are some factors which explains the need
of international marketing are as follows:
 Large market size- When the company will do business on international level, there is a
large marketplace across the different countries. (Forte, Hoojaghan and Pool, 2016).They
can earn more revenue and profit in available resources. Sainsbury is a public

organisation which operates within the UK. If this company expand their business in to
new market. It will leads to growth and expansion of business.
 Stability through diversification- when Company is working global level. There will e
more opportunities of doing business and develop new product in to new market and
leads to grow in the region because there are large market segment.(Glinka, 2017).
 Profit potential- In international marketing, It is for sure that if the company is doing
business on a large scale that will leads to generate more profit in the organisation.
 Proximity of market- This is the factor which describe the closeness of the market like
If nay firm working on global basis. It will learn different marketing strategies in the new
market. In related environment, A firm can adopt a new business techniques.
Various routes that market can adopt for International marketing:
 Licensing- It is a aspect in which one company give permission to other company to
manufacture their goods and services in a fixed payment. For example Any company
uses the design of the product. It need licensing for further operations.
 Franchising- It is the type of distribution of their business. Like nay organisation give
their business to run by other in approached manner. All the products and services are to
be sale under companies norms and procedures.
 Joint venture- It is a type of business, where two parties are agreed to allocate their
resources in achieving same objective in the business. This can be a new assignment or
can be a part of any business activity. These are also liable to share their profit and looses
in agrees ratio.
 Manufacturing abroad- It is route, where Manufacturer can produce their goods in their
operational areas. (Lalaounis, 2017).This will help in producing large volume of output
and eliminates extra import and export taxes on goods and services.
Sainsbury should use franchising and joint venture to expand their business across the world.
This will leads to increase in the volume of customer in new market place.

TASK 2
P3. Evaluate the key criteria and selection process to use when considering which international
market to enter.
There are various factors which needs to be keep in mind, while entering in to new
international market. It will help in achieving targeted customer with large market segment.
Here are some point that needed to be analysed at the time of entering new international market
are follows:
 Market analysis- Before entering into new market company should aware of all the
market condition and have full knowledge of current scenario in the market. With having
the complete information of specific area, manufacturer can develop the product and
services according to the needs and wants of the market. Sainsbury can enter in to new
market by doing proper analysis of the market.
 Market diversification- Changing choices of the individuals, impact the business in their
growth and profitability. Diversification can be in product that company is manufacture
new product in existing market and Market diversification by introducing their product
in to new market segment that will help in achieving good profit in the organisation and
established good brand image in the market.
 Competition analysis- Before entering in to new international market, Organisation
should have full knowledge of their competitors that what type of product, they are
manufacturing and what product differentiation can be done in own product that makes
different from the competitors.(Tsaur, Liao and Tsai, 2020). Sainsbury should do the
competitors analysis for the better results-in the organisation that will leads to generate
more profit in the organisation.
 Demand analysis- When organisation is manufacturing new products for the target
customer. They should have the study of the market demand, that is needed for the
customer and what type of products, customer is asking for. It will help in meet the
demand of the customer and generate maximum profit in the organisation.
 Distribution channels- This is the important factor, which is keep in mind while entering
in to new market that there will be a proper availability of the transportation for
delivering the product and Sainsbury should analysis the various distribution channel
that which channel will be best in operation and is that available in the market or not.

 Local Culture- When organisation want to enter in new market. It is very important to
analyse the local culture of the place or country that reflect the choices and preferences
of the customer. Having good knowledge of local culture benefits the organization to
manufacturing of goods.
 Legal and regulatory- All the rules and laws would be followed and analysed by the
organisation before entering into new market. This will help in building good brand
image of the organisation in the market. Sainsbury should list out all the rules and
regulations in order to build goods image and increase its market segment.
P4. Explain, using examples, the different market entry strategies, including the advantages and
disadvantages of each.
There are different marketing strategies for entering into new market and each entry
strategies have pros and cons in relation to international marketing. Here are some different
market entry strategies that are explained as follow:
 Partnership- It is the agreement of two or more individuals which are agreed to do
business on agreed term and condition. They are liable to share all the profit and looses in
to fixed ratio and each partner is responsible for their taxes.
Advantages
It involve low start-up cost and easy establish in the market.
It is easy to change the legal structure, when all the partners are agreed to do it.
Disadvantages
there is unlimited liability in the business.
Each partner is partly or solely for partner debt.
 Sourcing- It is the process of procuring the location, type of business and individual for
the specific business. (Wirth, 2018). It is conduct in different areas and different
regions. Sainsbury should use sourcing to enter in new market.
Advantages
It helps in getting cheaper labour.
Easy availability of raw material.
Disadvantages
It reduce the quality of the product.
Owner can loose the focus from the business.

 Franchising- this is done by giving the one business outlet to other business. All the
product and services will be done according to company's norms. Salisbury should give
their franchises to the order business to expand their business and getting share of profit
from them.
Advantages
It will help in expansion of business.
Create good brand image in the international market.
Disadvantages
It involve formal agreement in business, which needs to be followed by the franchisor.
It is bound with lot of restriction like where to locate what to sale etc.
TASK 3
P5. Present an overview of the key arguments in the global and local debate.
Global market have a significant role in the development of the business in new
market place that leads to generate more profit and stability in the business..(Dinner,
Kushwaha and Steenkamp, 2019). Local market have their own importance and impact on
national boundaries and difference between global and local marketing are given below:
Basis Global Marketing Local Marketing
Business operation These operation will be operates
on large scale due its market size
and target costumer in the market.
This will be done on small scale
due to limited targeted customer
in the market and run on the
basis of local preferences.
Capital required This required huge capital as the
company will be working on
global level and leads to serve
large market segment.
For this marketing, low capital
is required as it eliminates the
import and export duties and
extra expense on development
of innovative product.
Area served It cover the international bound
ires to serve the target customer in
the international market.
It operates the local boundaries
of the business. It analyse the
business within the countries.

Government
interference
There are more influence of
government in international
business with export and import
duties on firm. Global government
will interfere in this business.
In local business, There is less
involvement of the government
in the business and It operates
within the national boundaries.
Risk factor There is a high risk in this
business as Organisation is not
aware about global scenario of the
market.
There is less risk involved in
local business as company
manufactures goods after
analysing the market needs and
preferences.
Use of technology Organisation have to use advance
technology to operate their
business in global market. There
are wide range of products and
services.
Customer are aware about the
new products in the market and
they want new advancement of
the products
Nature of customer. Company have to target their
customer in the market and then
manufacture the goods and
services.
In local marketing, customer are
targeted within the country and
manufacture the products
accordingly.
It is analysed from the above discussion that organisation need more focus on
international marketing as It is operating on large scale. Sainsbury have to analyse all the factor
before entering in to new international market.
P6. Investigate how the product, pricing, promotional and distribution approach differs in a
variety of international contexts.
Marketing mix of the international marketing have different approaches in context to
product place, price and promotion of the Sainsbury. It focuses on various aspect of doing
business in the market and the approaches are as follows:
 Product- while manufacturing the product, Company needs to analyse the following point
in development of the product, like customer's culture background, buying habits,

religion and their income level. These all factor have to keep in mind while developing
mew product. Sainsbury should consider these points while developing new product. It
will help in reaching target customer. Company is offering their products and services at
global level to meet the need and demand of the potential customers and meeting global
standards.
 Place- After developing the product, It is analysed that what will be the best location for
selling their product at a the right time.( French and Gordon, 2019)Distribution in
national markets have done from manufacturer to wholesalers and to retailer and reach
ton the potential customer. In international marketing there certain parties which involve
in the business. Sainsbury will find right place for their product where the demand of the
product is high. Company is operating their business at global markets of UK and
Republic of Ireland.
 Price- When deciding location for the product Sainsbury analyse the prices of the product
according to the customer personal income. Company is using different pricing strategies
at global level that meet the need and preferences of customer.
 Promotion- For effective promotion, Sainsbury should analyse the best tools for
promotion in the market. Company is using differentiated promotional channels such as
traditional marketing, social media marketing and many more so that to serve customers
at global level and align business objectives with needs of their customers.
TASK 4
P7. Explain and analyse the various international marketing approaches organisations can adopt.
Business uses various approaches of business in the operation with the motive of earning
maximum profit. (De Mooij, 2019). There are approaches which can be adopt by the
organisation are follows:
 Business to Business Approach- This is the approach in which organisation manufacture
the goods for the other organisation. Best example of B2B is auto mobile manufacturing
company. This approach is helpful in Manufacturing good and services or manufacturing
sub parts of final product. Companies can generate more profit with availability of their
product and sell in good price.

 Inbound marketing- It is a the approach which is comprises of creating value content and
the content which is needed by the customer and Exactly encouraged by the customer.
They create all the product specification according individual needs.
 Outbound marketing- It is the marketing which is conducted in the market and not liked
by the audience. Sometimes company will do harsh marketing for attraction of the
customer and point of attraction will leads to high demand of the product. There are
various factors which leads to generate high sale due to point of attraction.
 Centralised marketing- this is the marketing which is done in a systematic manner and all
the task will taken in right approach to attract the customer(Yadav and Rahman, 2017).

It is analysed form the above approaches of marketing that Sainsbury should use
centralised marketing in their organisation that will help in generating more profitability by
doing their advertisement in systematic manner.
P8. Compare home and international orientation and ways to assess competitors outlining the
implications of each approach.
There are various approaches in the international business and Sainsbury is using human
resource approach to competitive with their competitors. Employees can't be copied in any
organisation. It is the best approach for working in competitive world to meet the demand of
customer. Different business uses varies approaches to the competitive advantage in the business
in the marketing that will leads to earn more profit in the business. Walmart, An American
retailing company is using marketing approaches to meet the competitive advantages of the
business. By doing this company will be able to get more profit and market expansion in the
business and leads to increase the market share by doing effective marketing on global level.
Difference between international marketing and domestic marketing
Domestic marketing is promoting their products and services with the national
boundaries and doing economic transaction with one country and International business refers to
the business that is doing across the world and conducting their business transactions with
several countries. It helps in promoting their products at global level and attract the large group
of customers.
Marketing strategies

It refers to the strategies which meant to formulate the overall business plan for attracting
the large group of customers by analysing their needs and wants so that company can meet their
highest profitability. It is concern with the brand image of the company, target customer
demographics and many more. There are various marketing strategies to be used by the firm
which includes traditional marketing, Ad campaigns, social media marketing, event sponsoring
etc. Sainsbury is using Ad campaigns in television, billboards to build a strong brand image and
also using sales promotion to promote their products.
Sainsbury can use the brand extension in which firm can launch new products and
increase their target customer which will leads to help in getting international marketing
opportunities. Company can get the competitive advantage as increase the product line, they can
build good brand image in the market.
Company should access to the local market as they can increase their revenue as more
people are connected to their brand and also offer diversified product that can attract the
customer and company need to target all age group members so that company will move to earn
more profit maximization.
CONCLUSION
This is concluded from the above report that, International marketing have significant
importance in doing business and it is necessary to have the proper study of global market before
entering into new market. There are various factors which explains the needs of international
market and different routes to enter in the international market. There are various factors which
keep in mind while choosing new market. Sainsbury is using different marketing strategies to
enter in new market. Furthermore, It explains the difference between local and global business.
Marketing mix of the company also have significant importance in business. Organisation should
analyse the right place and promotional tool to advertise the product that can reach to potential
customer. Sainsbury is using human resource approach to meet the competitive advantages in the
market and Walmart is using marketing approach to meet the competitive advantage in the
market.

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