International Marketing Strategies: Brakes Group's Market Entry

This report examines the principles of international marketing, focusing on the application of marketing strategies across multiple countries. It uses Brakes Group, a food and drinks distributor, as a case study to illustrate key concepts. The report covers the scope of international marketing, including imports, exports, joint ventures, and contractual agreements. It explores the rationale for international expansion, emphasizing growth, revenue generation, and market diversification. The report evaluates market entry criteria, such as market demand, competition, country performance, trade barriers, and political risk. It then analyzes different market entry strategies, including direct exporting, licensing, franchising, joint ventures, strategic acquisitions, and foreign direct investment, weighing their advantages and disadvantages. The global versus local debate is examined, advocating for an adaptation strategy that considers cultural, social, and economic factors. Finally, the report explores how product, price, promotion, and distribution strategies should be adapted for international contexts, and analyzes international marketing approaches with home and international orientation, including competitor analysis.

International Marketing

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Scope and key concepts of international marketing...............................................................3
P2 Rationale to want to market internationally and various routes to market the organization. .4
P3 Key criteria and selection process to use when considering which international market to
enter..............................................................................................................................................5
P4 Different market entry strategies including advantages and disadvantages of each..............6
P5 Overview of the key arguments in the global versus local debate.........................................7
P6 Product, price, pricing and promotional distribution approach differs in a variety of
international contexts...................................................................................................................8
P7 Analyse various international marketing approaches organization can adopt........................9
P8 Home and international orientation and ways to assess competitors, outlining the
implications of each approach.....................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
International marketing is when the principles of marketing are applied in more than one
country. It consists of more than local market and going beyond to national borders. Brakes do
distribution of foods and drinks to the catering industry in UK with their 20 distribution centres.
Company was founded in 1958 and now is the subsidiary company of Sysco corporation. This
report will discuss about scope and concepts of international marketing and also the rationale
wants to market internationally and various routes to market the organization. Further it will
evaluate key criteria and selection process to use when considering which international market to
enter. Analysing different market entry strategies, including advantages and disadvantages and
presenting an overview of the key arguments in the global versus local debate. This study will
also investigate how the product, price, pricing and promotional distribution approach differs in
international context and analyse the international marketing approaches client organization can
adopt and also compare home and international orientation and ways to access competitors,
outlining the implication of each approach.
MAIN BODY
P1 Scope and key concepts of international marketing
International marketing also called global marketing having good scope in today’s world.
Without having internal marketing plan, business can’t survive internationally. Due to
globalization, marketing strategies are not limited within the boundary of the country. Now the
world’s market is open for everyone and one can enter any market. The scope of international
marketing is growing more and more than compare to the past. Many developing and developed
countries has become the potential markets for promoting the products internationally. Customer
taste has changed along with that increased in the purchasing power of the customer, changed the
approach of the market (Katsikeas, Leonidou and Zeriti, 2019). Now promotion of the product
plays important role because the number of the potential markets are growing day by day. Some
more scopes are-
Imports: Business import products from different countries and then sell it within the potential
buyers of the countries (Hult and et.al., 2018). Companies also do import for their own company
like for improving the production line, which help them to reach their objective.

Joint Venture: When two organizations come together for some specific period. This activity
forms new organization which work individually and have their own separate goals (Paul and
Mas, 2020). In a joint venture profit and loss are divided in a certain ratio by two companies.
This option is very useful in those case where outsiders are not allowed to own the business in
some countries.
Exports: Company export their final products to different international markets, in which those
products are sold to the local consumers. Along with final goods, semi-final goods are also
exported. It helps in growth of the companies.
Contractual agreements: Company makes contractual agreements with other companies, this
can be done in terms of licensing or technical assistance. Licensing includes patents, trademarks,
brand names etc which can be used by the company by paying fee, which is the one-time
investment (Sheth, 2020).
Contract Manufacturing: This method decreases the cost of production of the companies. The
company with whom contract is made assemble the product and keep the product in the
marketing. It reduces the price and risk and also come with the easy exit option.
P2 Rationale to want to market internationally and various routes to market the organization
Brakes group want to go into the international market because for the growth and expansion.
New market will bring new opportunities through which more revenue can be generated. By
growing internationally, company will improve its profit margins. It will also increase the
customer base (Eteokleous, Leonidou and Katsikeas, 2016). Company will build reputation and
loyalty at the international market. Company is also searching for those countries where they can
reduce cost of production. It will also open new investment opportunities. Company want to
diversify their business in the new markets. International markets can provide low costs raw
materials. By doing business in multiple countries help to bring innovation. The market share of
business will increase and brakes want that as well. Company can even achieve economies of
scale because they knew that expansion will reduce total product costs and helps to achieve core
competencies.
Along with some opportunities some challenges will also come which can be the local
knowledge it comes with local expertise, to find someone who is very well aware about local
things are challenging. To face global economy is another challenge it has its own advantages

but has disadvantages as well. Tariff barriers, it shows duties that are imposed on imports.
Sometimes to promote domestic products such tariff policies are made which restricts activities
of international marketing. Rapidly changing in tariff rates create uncertainty in trade.
There are several methods through which company can enter into foreign markets which are-
Franchising: In franchising the franchisees pay some fees to the owner or pay some amount
from the profit. It is the easiest way to enter into foreign market. It includes simple steps one
need to find out successful business, then in your target market find out franchise.
Partnership: In this local business can do partnership with a foreign based business. Good
partnership will help the company to get good market share in the new market.
Buying a company: Buying a foreign company is also the easy way to enter in new markets.
Company immediately get its market share, brand image and existing customer base.
Government will treat such companies as local company only.
P3 Key criteria and selection process to use when considering which international market to
enter
Market demand: Brakes group want to enter in Asian market so, it is very necessary to know
that what is the demand of products in those market. Market size, its growth rate and the
percentage of market share in Asian market should evaluate. Rate of competition, demand
towards the product everything should be considered.
Level of competition: Based on the rate of competition, brakes should decide to enter that market
or not. Have complete knowledge about your competitor like its product price, distribution
channels, quality, consumer loyalty, and they are providing after sales service or not (Paurova
and Nadanyiova, 2020). Company should target such market where competition is less.
Country performance: Brakes should identify trends and economic conditions of the selected
countries. Population, consumer demographics, per capita income are some important factors to
be considered. The demand for the product is directly connected with economic performance of
that country.
Trade barriers: Trade barriers should be identified first which include import licences, quotas,
standard etc. Also, identified regulations related to packaging and labelling of the target country.
If all the requirements are not met can trade can be seized (Rana and et.al., 2020). Country to

promote their domestic products sometimes apply barriers to control foreign trades by applying
unreasonable standard and quality control.
Political risk: Political stability should have considered by the company before trade. Applying
of certain policies which are not for the business can affect profit and sales of the business.
Climate and infrastructure: In some business if the climate of the country is humid and product
needs dry climate than these climate conditions can be problematic. High shipping costs can cut
down profit margins. Company can even require skilled staff called human infrastructure for the
smooth functioning of the company. If export market has less qualified people than doing
business in that area can be expensive.
Selection process include understanding marketing and customer needs, designing a marketing
strategy and constructing a marketing program, do profitable business by creating customer
satisfaction through providing quality products to them.
P4 Different market entry strategies including advantages and disadvantages of each
Direct exporting: It means exporting goods directly to another market. Easiest and fastest mode
of entry in the international market.
Advantages: Before making any big investment in the foreign market. By using direct
exporting, products demand can be test in the international market. There is protection for
patents, trademarks and goodwill.
Disadvantages: In export everything have to start from initial level which in return makes this
strategy costly (Sriram and et.al., 2019).
Licencing and franchising: In this strategy one company will pay other company commission or
fees to use the brand name, products, manufacturing process etc.
Advantages: In less cost company will enter the foreign market. Offers good source of income.
Get expansion in multiple area with minimum investment.
Disadvantages: Acquired knowledge can leverage through these strategies. It might limit control
over business.
Joint ventures: In joint venture both companies come together and form a new company. They
share rewards and risk with each other.
Advantages: Both businesses have the expertise through which they can expand and grow in the
market. Helps with the transfer of assets, technology etc.

Disadvantages: Due to the difference in culture in both the firms, organization may face cultural
clashes. Dissolution of joint venture can be complex.
Strategic acquisitions: In this one company acquire controlling interest in existing company in
overseas market.
Advantages: There is no need to start the business from the initial stage. Infrastructure,
distribution channels, consumer base and other facilities can be used of the existing business.
Company will get expertise and knowledge of the existing management.
Disadvantages: Cultural differences can cause cultural clashes within the organization. Most
common issue is technological process (Alqahtani, 2020).
Foreign direct investment: By doing investment in the foreign country, company enter the
overseas market. It can be mergers or acquisitions as well. This strategy is useful when the size
of the market is large.
Advantages: Control can be retained over the business. Get cheap material and low-cost labour.
Disadvantages: Company can get into political risk especially in those policies which is made
by the government to save local business.
P5 Overview of the key arguments in the global versus local debate
Brakes should adopt Adaptation strategy while entering the international market. As it focusses
on the importance of customization. Its importance is when the business enters in overseas
market it should consider all the factors related to culture, education, taste, climate, language,
society, race, occupation etc. along with that factor related to legal system, needs, wants should
also consider. Company should make such international marketing strategy which tells that how
to fulfil local and international market demand. Channel of distribution which is adopted by
Brakes in UK may not be correct in the global market, every country’s market run differently so,
company have to mould according to the market. Company will get value and respect from local
consumers (Thabit and Raewf, 2018). Adaptation will help in building good local image but it
can incur high cost or can be time-consuming. Product adaptation is more considerable. Brakes
should also add different varieties of their food according to the local taste which will help to
attract customers. Adaptation should also have done by keeping in mind the customer’s lifestyle
and their income level. By applying adaptation marketing strategy company will get competitive
advantage. Organization need is not always cost reduction using standardization rather they want

long term profitability through increased sales by fulfilling targeted customer needs. Company
should also focus that advertisement should be there in different local languages so that it will
understand by every consumer. Adaptation shows rapid growth. Company should do research on
the targeted areas that what are the needs and wants of the customer. Buyer behaviour can
influence by the product and services provided to them. Company should understand the
preference and beliefs of people of the host country. Adaptation helps to safeguard business from
the competitive threats.
P6 Product, price, pricing and promotional distribution approach differs in a variety of
international contexts
Elaborating 4 P’s of marketing mix which are-
Product: Brakes aim to take adaptation strategy. Company want to provide product to foreign
markets according to the demand and taste and preferences of the customer. Brakes focus on
changing in the food segment providing that food only which is local and consumers are familiar
with the taste. By providing what customer want, company will able to gain respect and trust
from the people. Product adaptation is one of the common adaptation done by the company
(Lahtinen, Dietrich and Rundle-Thiele, 2020).
Price: Company has set price according to the income and purchasing power of the customer. In
developed countries prices are preferably high because company knows that people can pay but
in some developing countries where income and purchasing power of the consumers are less as
compare to developed countries, prices are low there. Company knows that applying high prices
everywhere can turn off the customer. So, company consider all factors before setting the price.
Place: Company chooses such place where their products and services are easily accessible.
Brakes also have strong distribution channels. Place plays a vital role in the marketing mix
because if customer is facing difficulty to reach towards the supplier than he can switch on
another seller. Consumer also pays for the right location which should be convenient to them.
Right location will help the company to achieve their goals and objectives. Company can even
explore online options.
Promotions: Promotion of the products are very important. Company should do advertisement in
the local languages also so that they can attract more customers. Nowadays everyone is active on
social media. Company should use these online platforms to promote their products. These

options are cheap and cover large number of customers. Company can even do promotion using
print media, TV, magazine etc. Discounts and coupons can also be provided to the customers.
P7 Analyse various international marketing approaches organization can adopt
Brakes should use Centralized international marketing approach. In this approach, marketing
department takes most of the marketing related decisions than they plan and execute those
decisions. Company can adopt this because its marketing department is highly experienced and
active and can easily cope up with the international market. They have to search for local people
who can help the marketing team to search for best raw material, process, equipments etc.
Selling of products is done by direct exporting. Marketing technique which company will adopt
should be of international level, local market technique will not work here. Product of the
company shows the image of the origin country like some countries are known for its quality
products. In centralized approach company should focus on in house marketing development.
This will show that company is having control over marketing and can be used for company's
benefit. Marketing department should be managed properly and professionals should hire. Lack
of communication should not be there between any of the departments who are into product and
market development. Centralization will help the company to reach the economies of scale.
Investments, budgets etc. will easily be controlled by top-level people only, it will reduce costs
and help company in quick decision-making.
P8 Home and international orientation and ways to assess competitors, outlining the implications
of each approach
Competitive analysis is a research that gives the information about the rival firms. Tells the
company about the growth and mistakes of the rival company. It is the very important process to
find out that what your competition is doing and what threat they can give you in the future.
Company should do both local and international competitor analysis so that they can know about
other companies and their strategies. This should be the regular practice so that Brakes can
always be ahead. Steps involve in doing this are-
Identification of the competitors: Every company is facing competition with one or the other
company, who are selling same products. Company can be local or international, someone
should be there in the company, mostly from sales or marketing department who can check the

competitors and find out ways to be different from them. Nowadays internet is a helping hand for
this. Employee can even search on google about their competitors and make the list.
Compare and analyse competitor content: Once the competitors are identified, competitor
analysis should be started and should try to understand the content competitor's are publishing.
Analysing content will help the company to check about the opportunities they can get and also
will get knowledge about the content rival companies are creating. Company can compare their
content with rivalry company and also do quality check. Regular publishing will help the
company to get more traffic.
Analysing social media activity: Social media platforms are trending nowadays because
through this company can directly interact with the consumers. Each company handle social
media platforms differently so, its presence on social media is important. Brakes should analyse
that how their rival companies are using social media for marketing their products. One should
thoroughly analyse competitor's profile that what they are posting, what methods they are using
for the same etc.
Identification for improvement areas: After doing the complete competitor analysis company
will get idea about the activities done by their competitors. Collect all the information about
every competitor and identify that what you should pick from them to improve your
performance. Deep research will tell about many improvements company should do which their
rival firms are already doing.
CONCLUSION
Through this report it can be concluded that there is wide scope for international
marketing and if Brakes want to grow their business overseas than proper international
marketing process should be followed by the company. There are various methods like licencing,
joint venture, exporting etc. through which company can easily enter into foreign market. It will
come with opportunities as well as challenges. Company have to understand each and every
challenge to survive in foreign markets. Company should adopt adaptation strategy because
customization by considering every region is very important. It will increase sales and revenue of
the company. Marketing mix are also evaluated which can help company to reach towards the
goals. Company should use centralized international marketing approach, which will help to

solve problem immediately by doing quick decision-making. Competitor analysis are also done
in keeping in mind the local and international markets.

REFERENCES
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