International Marketing Analysis of Zenith Pizza for Global Expansion

This report provides a comprehensive analysis of international marketing strategies, focusing on the case of Zenith Pizza and its potential expansion into the Chinese market. The report begins by defining international marketing and its scope, including imports, exports, and contractual agreements, and then analyzes the global business environment, considering political, economic, social, technological, legal, and environmental factors. It explores various market entry strategies, such as direct exporting, licensing, and franchising, evaluating their advantages and disadvantages. The report also examines the importance of international trading blocs, along with tariff and non-tariff barriers, and different marketing strategies to overcome these barriers. It identifies key elements in the global versus local business debate and differentiates between merchandising and services import and export, evaluating how product, pricing, promotion, and distribution approaches differ internationally. The report also evaluates whether Zenith Pizza should adopt a global or local approach and applies the import and export process. Finally, it explores various marketing approaches the company could adopt and provides recommendations to maximize their effectiveness, concluding with an overview of the key findings and recommendations.

International marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 Analysing the scope and key concepts of international marketing...................................3
Analysis of the global business environment of food industry and explains the different route
they could adopt..........................................................................................................................4
Critically analysis of the opportunities and threats marketing internationally presents.............6
TASK 2............................................................................................................................................7
Explaining the different entry strategies, including the advantage.............................................7
Evaluating the marketing criteria, entry strategies and also make recommendation that could
help company to gain global presence. ......................................................................................9
Explaining the importance of international trading bloc to the team with different tariff and
no-tariff barrier..........................................................................................................................10
Explaining the different marketing strategies for various markets to overcome barriers to
international trading..................................................................................................................11
TASK 3..........................................................................................................................................12
Identifying the key elements in the global vs local business and difference between
merchandising and services import and export along with advantage and disadvantage.........12
Explaining the product, pricing, promotional and distribution approach differ in international
context.......................................................................................................................................13
Evaluating the context in which organisation Zenith Pizza should adopt a global or local
approach ...................................................................................................................................13
Applying the import and export process ..................................................................................14
TASK 4..........................................................................................................................................15
Explaining the different marketing approaches that company could adopt..............................15
Recommendation and justification that can maximize the various methods ...........................16
CONCLUSION..............................................................................................................................17
REFERENCES .............................................................................................................................18

INTRODUCTION
International Marketing is the application of marketing principles to satisfy the varied
needs and wants of different people residing across the national borders. Simply, international
marketing is the process of undertaking the marketing activities of more than one nation. Present
study is based on International marketing. Study will explain the concept of global business
environment in which Zenith Pizza will be operating into the China market. The reason to select
China is that its population is more fond of fast food. In other words, study also discussing the
opportunities and threats that marketing internationally presents to Zenith Pizza in the
international market.
It also explains the different market entry strategies, including the advantage and
advantage of each as well in the report. Therefore, report aim is to identify the key elements in
the global vs local debate that explains the main differences. At the end of the segment will
explain about the approaches that could be used by the company.
TASK 1 Analysing the scope and key concepts of international marketing
International marketing is defined as the performance of business activities designed to
plan, price, promote and direct the flow of a company goods and services to consumers or users
in more than one nation for a profit earning. International marketing is the best way to promote
the business activities and get enough opportunities to enhance the company growth as well.
Zenith Pizza is the small based Pizza company who recently face high level of
competition due to which its sales fall down. So in order to leverage the sales of the company.
They will plan to launch new outlet and take the business into international market.
Scope of international marketing
Imports : Imports products for a brand works the same way like as it does for a whole
country (Acharya, 2016). In the process of imports where the company buy a product or services
and then resale the products to the potential customers. Sometimes, company take help from
another country to buy products just to make them stable and maintained in the competitive
market.
Exports : Export is the another most essential international scope that helps Zenith
Pizzas to get some more new attraction and satisfactory results and growth. In the process of
exporting where the company expose itself to the another city or place at the very first time to
just get the business higher and more popular. Besides, by earning profit from the market

company can easily meet out the costs of imports, covering up the costs of development as well
as ripening profits (Andrews and et. al., 2016). Both the imports and exports help in expanding
the reach to the targets.
Contractual Agreements : This is the another scope of international market that
company could get and get customer reach as well. International marketing is the best chance or
opportunity for local companies to expose the market and do a lot more business. In other words,
contractual agreements with other companies is the another form of licensing or co-production or
even of technical assistance. This process can help Zenith to regain the market growth and
profitability chances for the company.
Concept of international marketing
The main purpose of international marketing is to expose national business to the
international market (Blythe and Martin, 2019). This chance or opportunity could provide bundle
of possibilities to enter into the international market. This process can be done through three
simple phases such as orientation to foreign trade, Guidance to sales in foreign markets,
orientation to international marketing.
Analysis of the global business environment of food industry and explains the different route
they could adopt
Analysis of the industry
Zenith Pizzas is a fast food restaurant in UK that contains and known for its range of
Pizzas. In the context of Global business environment of food industry been very much popular
and leading generating task. The most important and challenging factor through food industry get
highly affected which is healthier options (De Mooij, 2018). Zenith Pizza will plan to move
business in China market. Food & Beverages market of China is very competitive and
challenging due to already existence of high competition.
Political : The most affected factor in the business environment which influenced by
uncertainties of policies of food industry. It is a trends and healthier options on the menus as
public health policies are pushing for foods with lower sodium and sugar intakes. In present
time, company is required to adopt proper food safety precautions to get the best outcomes.
Economical : In which Zenith will plan to enter in the market the most affected factor is
unemployment rate that might affect the food industry as well. Recession is the another reason
and factor that influence food industry in several manners. Apart from that, it helps to generate

the long lasting results and make the best outcome results and growth. Customer love junk food
for its deliciousness (DeFusco and et. al., 2015).
Social : Social factor is the another most affected factor that impact the behaviour
regarding international and local market of China. Besides, In health & safety this is the most
affected factor that highly influence the society behaviour of China. Customer diversion towards
healthy and clean eating for staying in shape has been given negative impact on the overall
behaviour. People are avoiding junk food because it involves harmful elements that indirectly
affect the growth.
Technological : Technological factor is also influenced by changing technological trends
and innovation in China. In present times every person wants easy to access that can help them to
get the product faster. So that, In order to gain the market Zenith Pizza should need to acquire
new technologies in order to regain the market in China market.
Legal : Specific legal law and act should need to be acquired by the food company
(Dinnie, 2015). In order to run business in smoother manner, it is very much essential to adhere
the food regulations and laws of China that might affected to the food companies.
Environmental : This factor drives company in higher manner. This will ensure public
consciousness with the increasing initiative of environmental movements and green strategies. In
order to attract the customers, company should have required to adopt re plantation of trees and
energy saving initiatives.
Various routes of marketing to enter global business environment
Select Media: Marketers or businesses select tool through which they generate customer
traffic. In modernization, there are bundle of marketing tools that can help companies to spread
the awareness of the new product or services. Such as Zenith Pizzas can adopt media channels to
promote their Pizzas in the China food market (Dunning, 2015). the reason of this marketing
route is to entered into the new market with good approach.
Personal Selling in international markets : Global managers need salespeople with
product knowledge and can easily spread the company awareness. Zenith Pizzas can opt sales
person who better understand the need and wants of the China market. So it can help to spread
the about the company. The main purpose behind personal selling is to build connection with
customers to analyse their needs and wants.

Public Relation : This is the another marketing tool that can help Zenith Pizza to gain
customer focus and growth. This is the most essential part for the new companies to build up the
good relation with the customers to grab the attention. For that, Zenith Pizza can be given offer
or some exciting deals on food to stable the company growth. In order to enter in the China
market, Zenith Pizza must have required to build the public relation.
Critically analysis of the opportunities and threats marketing internationally presents.
Opportunities and threat involves in global market
Opportunities
Greater exposure : In order to deal with global market, Company having opportunity to
explore the product or services (Johanson and Mattsson, 2015). Besides, overseas business can
give several targets and possibilities that can be very much productive for the new business who
wants to grab the attention of international buyers.
Business Rejuvenation : In addition to expanding a thriving business, entering overseas
markets can help revive a struggling enterprise. This opportunity is suitable for Zenith Pizza who
faced low revenue and downsizing of the workplace for that it is very necessary for them to sell
Pizzas to another country.
Favourable business environment : This is the another opportunity that company
adopts which is favourable business climate. When recession or the company growth is
challenging and fruitful.
Threats
Ethical business practices : Business required to understand the need of government
that they implement by the laws and regulations in order to protect the customer interest. So it is
very much required to understand the business ethics and responsibilities of the business that
should adopted by the Zenith Pizzas. Wherever, Zenith Pizzas wants to open their outlet they
must required to followed the legal structure of that particular place (Lasserre, 2017).
Public Relations : Public relation is the complex function that need to be performed by
the company. Building a good image in front of the geographic region is an enormous challenge
both in effectively localising the message and in the capital expenditure necessary to create
momentum.

China is a good opportunity for companies to enter in order to business expansion. Buy
on the same side, it is a very competitive market which is not possible for other company to
entering. It is very difficult for new companies to survive in the China market.
TASK 2
Explaining the different entry strategies, including the advantage.
Direct Exporting : Direct exporting is the process or the effective route to enter in the
global market. This is the method in which company can directly sell the product and service to
the market (Liébana-Cabanillas, Muñoz-Leiva and Sánchez-Fernández, 2018). Agents and
distributors are the source that represent the company into the global market. This process can
fruitful for the company to sell the Zenith Pizzas.
Advantage
 Direct exporting can help business to control over the product to be priced in the global
market.
 It is very effective to attract returns on exports by establishing wholly owned subsidiaries
in the importing country.
Disadvantage
 Cost of direct exporting channel is quite high as compare to other channels. That might
be not affordable to the small companies.
 Direct exporting involves high risk of failure that might affect company profit
Licensing : Licensing is a relatively sophisticated arrangement where a firm transfers the
right to the use of a product or service to another firms. Besides, This is most useful strategy if
purchaser of the company is already having good market share.
Advantage
 Licensing is the best way to commercialise the business without investing money on the
promotional activities of products (Sekaran and Bougie, 2016).
 Passive Revenue Opportunity this is the best method to promote the product or services
in the market.
Disadvantage
 Risking loss of the IP, company having threat to loss their own control on the company.
Sometimes other party misguide the company and take the ownership. So this can be the
reason that restrict business to give licensing.

Franchising : Franchising is a typical North American process for rapid market
expansion but it is gaining attention in other parts of the world (Market Entry Strategies –
Explained!, 2018). This is the global market route in which company sell and give authority to
other person to sell its products by getting franchisee of the company outlet.
Advantage
 Company can reduce their risk of business failure is reduced by adopting the method of
franchisee. In order to that, this is the good method to enter into the new market.
 It helps to recognise the brand into the another country (Sekaran and Bougie, 2016).
 Franchising the business is very productive for the company to get business smother.
Disadvantage
 It might includes higher cost then other routes.
 Company might be get bad company reputation due to bad market conditions.
Partnership : This can be the another method or process that Zenith could adapt to enter
into the global market. This can be of different types co-marketing arrangements to a
sophisticated strategic alliance for manufacturing.
Advantage
 Participation of two is always better than one. It helps to create support and new ideas for
business growth.
 There is not any interference of government in the activity of business.
Disadvantage
 The liability of the partners for the debts of the business is limited.
 There might be the problem of conflict and misunderstanding between the partners.
Evaluating the marketing criteria, entry strategies and also make recommendation that could help
company to gain global presence.
In order to evaluate the marketing criteria to adopt the best entry route in the international
market, company can adopt different tools or techniques to measure the growth and
development.
Some marketing criteria could be used by the company given below:

Market Size or demand : Market size and growth is the another element that defines
the market criteria (Smith and Wong eds., 2016). But, company should have some sort of
knowledge about potential market size and demand of the product in order to make the scenario.
In order to determine the China food market, there has been huge growth of agrifood products.
So in order to that, they focus on the agrifood products rather than other so that, company should
decide on that basis.
Competitors : Evaluation of competitors are must have required before selecting the
place where company wants to open its new outlet. There are so many competitors are present
for Zenith Pizzas are Pizza Saporita, Pie Squared, Ramo etc. So it increases the competition for
the existing company (Stiglitz and Rosengard, 2015). Company should launch product with high
promotional activities to attract the buyers' attraction.
Growing Market : China is a growing market but in the context of food sector. Besides,
Food lovers always looking for new taste and innovation. That create challenge for marketers to
bring new services or offers.
Potential Customers : Potential customer is the most effective tool to evaluate the
customer interest. Company must try that they are available for the customers at some suitable
places where they can easily reach. It helps customers to find the new food outlets easily.
Besides, Zenith Pizzas also must try to provide Pizzas online along with different offers and
discounts at their initial stage to just promote the brand.
On the basis of above criteria of market analysis it has been clear out that company
required to adopt the route of export (Tallman, Luo and Buckley, 2018). Export is the best way
for Zenith to adopt and earn the profit revenue. Company could need to adopt the Export entry
market mode to establish the brand value.
Explaining the importance of international trading bloc to the team with different tariff and no-
tariff barrier
The importance of tariff and non-tariff barriers are very much essential to secure the
business from future uncertainties. There are many advantages of trading bloc like to trade
within the bloc to get access to each other markets. Besides, another advantage of this is to get
the market access and trade creation(Thompson, Strickland and Gamble, 2015) . This helps
company to increase the market and profit reach. But on the same side, it also includes various
tariff and non tariff barriers are involved. That might affect the international businesses in

several manners. Company could have been facing several issues in international market such as
administrative procedures, quantity restrictions, privacy requirement, subsidies, Price controls,
etc.
There are different tariff barriers that move across the borders such as import tariff duty,
export tariff, transit duties, specific duty. On the other side, Non -tariff barriers are includes
Quotes, VER (Voluntary export restraint), Subsidised.
Importance of international trading
 It is very much essential to buy or sell the product across the national borders to earn
enough amount of profitability chances.
 International trade injects global competitiveness and also engage different domestic
business units are the most efficient way to get the international growth.
 International trade also including some trade policy formulation issues due to which
company might having problem to deal with international activities such issues are tariff,
incentives, quotas, taxes, customs and administrative (McGraw-Hill Education.Tian,
2016).
 International trading provide large market growth which provides bundle of opportunities
and growth.
International Trade Agreements
 EU : EU is the regional economic integration that enabled countries to spend resources
on issues that are relevant to their stage of new development.
 NAFTA : North American Free Trade Agreements is an example of this economic
cooperation that must be adopted by the company before entering into the another
country.
Explaining the different marketing strategies for various markets to overcome barriers to
international trading.
Global marketing strategies is the most helpful tool that helps company to engage with
different market opportunities. International marketing strategies definitely work to upgrade the
business goals. There are explaining four types of international marketing strategy that Zenith
Pizzas can adopt.
Pick the low Hanging fruit

For that, business required to sell product or services at low prices just to grab the
attention of customers. This is the most fruitful strategy that food business can adopt for the high
sales volume growth (Vera-Baquero, Colomo-Palacios and Molloy, 2016).
Focus on the Right Niche
For growing companies focusing on the right market is very much essential. A good
place to start the business by looking the target customers. Such as Zenith Pizza should need to
try to focus on their target customers to build up the among buyers. Such as Zenith Pizza can
adopt this strategy by only focusing on the customers who love to eat pizza such as students,
young generation etc.
Build and Nurture your competitive advantage
Every business starts their business with some unique advantage and USP that makes
company differentiate with other competitors. These competitive advantage need to be
continually developed over time. To beat out the competitive is the required for the business
growth. The highest profit margins come from aligning business decisions with the competitive
advantages. Such as Zenith Pizza must open their outlet nearby the place where its customers are
present such as near by schools, universalistic, malls etc. along with attractive infrastructure
based on attractive themes.
Drop bad clients and keep the rest
Perhaps they require high levels of customer service at no additional cost. This must be
given the low impact on the overall business that achieve the market position. Periodically it may
be helpful to conduct a review of current clients. Besides, This strategy refers to the company
that stay away from the bad clients and more focused on the target customers.
TASK 3
Identifying the key elements in the global vs local business and difference between
merchandising and services import and export along with advantage and disadvantage.
Key elements in the global vs local debate
Global and local marketing business are far different from each other. Global elements is
wider than local in terms of strength, scope etc. In present world, many of the firms deals on a
global scale (Vera-Baquero, Colomo-Palacios and Molloy, 2016). Besides, local marketing is
very simple and easy. In the contrast, global business strategy is of immense cost. In the contrast,

local marketing is based on low cost. Global companies have to deal with different global
challenges or on the same side, local businesses facing small challenges.
Difference between merchandise and service
Basis Merchandising Service
Meaning Merchandising is the process of
selling goods and services. Such as
clothing products, grocery products,
book stores etc.
Services is the process which provides
by the company to its customers such
as laws, doctor, accountants etc.
Tangible/
Intangible
Merchandising based on tangible
products and goods to make money
Services is based on intangible such as
legal advising, housekeeping etc.
Inventory Merchandising based on revenue
and profit of inventory
Services based on accrual method
Advantages Merchandising is beneficial to
enhance company profitability.
Providing good services helps to
retained existing customers.
Disadvantage Merchandising can influenced and
affected by changing trends.
Services might be off dated and old.
Difference between import and export
Basis Import Export
Definition The term export is the process to sell or
buy products or services from the other
countries.
The term export is the process
to sell or buy products or
services to the other country
Objective The main purpose of this process is to
fulfil the demand for goods and services.
To increasing the presence or
market of global to build the
domestic goods and services.
Advantages
Business can import raw material or
goods at low cost from the other
By the help of export company
can establish their existence in
global market.