International Marketing Strategies for Zenith Pizza: A Report

This report analyzes Zenith Pizza's potential for international market entry, focusing on strategies for global expansion. It begins with an introduction to international marketing and the analysis of the macro-environment using a PESTLE model, specifically targeting the Chinese market. The report then explores various reasons for a business to operate globally and details different market entry strategies, including franchising, joint ventures, and greenfield investments, along with how marketing supports these strategies. A comprehensive SWOT analysis identifies opportunities and threats for Zenith Pizza. The second task focuses on market strategy, the importance of choosing the right international market, and the evaluation of market entry strategies, including the advantages and disadvantages of each, with examples. The report also explains the market evaluation process and the significance of trading blocs and agreements. Task 3 differentiates between global and local marketing, compares services versus merchandise, and assesses the advantages and disadvantages of importing and exporting, particularly for Zenith Pizza. The report analyzes forces affecting Zenith Pizza, outlines elements of a marketing plan, and provides recommendations based on research. Finally, the report introduces the organization and its current market, marketing approaches for international entry, pros and cons of these approaches, compares home and international orientations, and suggests methods to maximize Zenith Pizza's success in the international market, concluding with an overall assessment.

Unit 40-43
INTERNATIONAL
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1...........................................................................................................................................1
1. International marketing..........................................................................................................1
2. Analysis of macro environment.............................................................................................1
3. Reasons for a business to operate in global market.............................................................2
4. Analysis of strategies to enter into the international market.................................................2
5. Importance of marketing.......................................................................................................2
6. Analysis of internal environment...........................................................................................2
TASK 2...........................................................................................................................................3
1. Market strategy.....................................................................................................................3
2. Importance of organisation....................................................................................................3
3. Evaluation of strategies.........................................................................................................3
4. Explain market evaluation in international market.................................................................4
5. Market evaluation process....................................................................................................4
6. Explanation of trading blocs and agreement.........................................................................4
7. Expansion in two international market..................................................................................5
8. Barriers in international market.............................................................................................5
Task 3............................................................................................................................................5
1.Difference between global and local marketing.....................................................................5
2.Service vs Merchandise.........................................................................................................5
3.Advantages and Disadvantages of Importing and Exporting ................................................5
4.Forces affecting Zenith Pizza.................................................................................................6
5.Element of Marketing Plan.....................................................................................................6
6.Critically explain the importing and exporting.........................................................................6
7.Recommendations based on research and personal opinion................................................7
TASK 4...........................................................................................................................................7
1.Introduction of the organisation and its current market..........................................................7
2.Marketing approaches to enter in international market..........................................................7
3.Pros and cons of marketing approaches................................................................................8
4.Comparison of home and international orientation................................................................8
5.Various methods to maximize Zenith pizza in international market.......................................8
6.Conclusion.............................................................................................................................9

CONCLUSION...............................................................................................................................9
REFERENCES............................................................................................................................10
•••••••

INTRODUCTION
International marketing is the application of marketing principles to fulfil the needs and
desires of customers all over the world (De Mooij, 2015). It is the marketing activities more than
in one country. This report explains the market entry of Zenith Pizza in international market by
analysing the macro and micro environment and also describes the various strategies to enter
into the new market. This report also explains the market strategy and the market evaluation
process to choose the new market in different countries. It also analyses the different strategies
which could help Zenith Pizza to enter in the global market and done a proper SWOT analysis to
determine the opportunities and threats in international market. Zenith pizza uses different
market strategies to enter the right international market i.e. China which has higher GDP growth
and don the evaluation process for entering into the market. It also describe importing and
exporting which can be adopted through local and global approach and barriers in international
marketing.
TASK 1
1. International marketing
International marketing can act as a tool to analyse and satisfy requirements and needs
of global consumer in different parts of the world and can relate the profitability of the existing
market to global market in terms of competition, product, price and promotion. There are
generally three types which includes orientation to foreign trade, how to sale goods and services
in new markets and orientation to international marketing. Selling goods and services in abroad
markets can help the Zenith pizza to boost its brand recognition, and expand its business by
providing quality products and services rather than selling in local market. This is the main
reason of Zenith Pizza to enter in the international market to expand its business across the
globe.
2. Analysis of macro environment
Zenith is planning to operate in China, therefore, analysis of global business
environment are a done through pestle model.
Political: The factors like tax policy, trade restriction can affect the Zenith pizza to enter in the
foreign market but government of China is focused on growth of e-commerce which can help the
company to increase its sales.
Economic: Due to the impact of unemployment rates is affecting Zenith pizza and various
factors which can boost Zenith profitability in China such as high GDP growth rate, low cost of

labour, export business are more, urban growth is increasing rapidly and high consumer
purchasing power.
Social factors: Organic and healthy foods are taking advantage in the food industry and Zenith
pizza is changing their appearances and menus. Demographics changes constantly due to high
population growth and age distribution. Zenith can influence by consumer lifestyles, religion and
literacy rate is above 90%. Internet users are very high around 420 million.
Technological: It helps in labelling of food and production and the state where Zenith pizza is
operating does not have technology advancement whereas China has better production
technology, distribution systems like internet and mobile telecommunications.
Environmental: Recycling, extreme weather and waste management in China's urban cities
can help Zenith to improve its supply chain flexibility.
Legal: Zenith pizza is influenced by various legal laws like labor law and statutory laws etc.
China is facing issues in legal framework for e-commerce like IPR protection, consumer rights
and tax.
3. Reasons for a business to operate in global market
Zenith's main reason to operate in global market is to increase their productivity and
profitability(Christodoulides, Cadogan and Veloutsou, 2015.). The other reason can be to
expand its business at global level and also increase their competition with the similar
businesses so that they can increase their brand reputation worldwide.
4. Analysis of strategies to enter into the international market
There are different types of strategies to expand the business in global market.
Franchising: This strategy can be adopted by any organization to expand their business at
global level. In this type of strategy Zenith can allot its marketing business to franchisee in
international market including brand name, logo, sales, services and methods of operating
through a special form of licensing.
Joint venture: This type of strategy includes two parties who are willingly to work together with
the same purpose by accomplishing the specific task. In this strategy business can be operated
in unfamiliar foreign markets which is jointly owned by two or more firms in a particular line of
activity or market. This type of strategy can divide the risks, loss and enhance the resources and
skills in effective way. It requires proper coordination and control wit the working partner.
Greenfield: This is a type of foreign direct investment where a parent company can open its
subsidiary in another country. It is the direct investment strategy in which Zenith can set up its
company domestically or international by buying property, workforce, technologies etc.

Marketing can help the zenith pizza entry strategies as the advertisement of its goods and
services can help in boosting the brand reputation, also raise awareness of its products within
the customers all over the world and other countries will give the opportunity Zenith pizza to
open its subsidiary which overall improves its economic growth.
5. Importance of marketing
Promotional marketing can help in franchising strategy as the marketing business has
been transferred to franchisor(Paul, 2015.). Therefore, to maintain the reputation of brand name
promotion can help in boosting the sales and profit in global market and informing all the
services are offered through social sites, television etc.
Quantitative and qualitative marketing research can contribute in joint venture strategy
as it will help to understand the needs of the customers, statistical surveys and experimental
techniques to test the existing competition so that they can schedule their production and
operation plan.
In greenfield strategy marketing will allow connecting with potential customers directly. It
will help in building brand recognition and enhance healthy competition which will boost sales,
maintain relationship and loyalty with clients.
6. Analysis of internal environment
When Zenith pizza will enter international market it will opportunities like new menu items to
better serve the needs of the customer (Lewis Byrom and Grimmer, 2015). They will have
opportunity to open more stores in untapped market because of the quality of their products and
strong brand recognition to gain more customers. Threats like competition's larger menu,
locations and brand recognition can influence their profitability and sales.
STRENGTH WEAKNESSES
Brand reputation is strong in the industry Zenith competition is tough with the other
leading brands.
Zenith has 300 patents registered and it has
excellent distribution services.
Fake imitation can affect the brand.
Table 1: SWOT analysis
Source: SWOT Analysis, Competitors & USP, 2019.
Source:

Opportunities – Zenith pizza have an opportunity to further expand its food range and
can adopt new technologies which are trending in international market.
Threats - There are various threats which affect the business environment of Zenirth
pizza which are changes in government laws and policies and competition's brand
recognition.
TASK 2
1. Market strategy
The marketing goals and organization strategies to attain maximum profitability
and sales by analysing market research and providing good products to sustain the
business. There are various strategies which is known as marketing mix where product
and price plays an important role to give competition to the opposite companies and
also helps to build a loyalty with the customers by providing good quality products.
2. Importance of organisation
Zenith pizza has a good quality products and understand the needs and
requirements of the customers, the services provided by them are also good and have
strong brand name recognition but the growth in existing market is less (Thakur, 2015).
Therefore, Zenith can find new opportunities in international market such as China
which have high GDP growth and customer purchasing power, also have opportunity to
grow their business in e-commerce as market size is large, economic stability and
cultural considerations are good.
3. Evaluation of strategies
Franchising strategies has been adopted by successful food companies like
McDonald's which offers independent of ownership by providing benefits in building
networks. Franchising a business does not require any business experience and Risk of
failure is reduced in franchising because Zenith is already an established company just
like McDonald's. It will enable Zenith to compete with big businesses but will have
support of franchisor and networks of franchisees (Hoppner and Griffith, 2015).
Franchising strategy help in maintaining their brand reputation so Zenith must choose its
franchisees wisely to maintain their reputation.

4. Explain market evaluation in international market
Zenith must have good marketing evaluation techniques to enter in a global market
which help them to become productive.
Sales: The effectiveness of marketing plan can be evaluated as successful if there is
increase in sales.
Market Research: By conducting marketing research through surveys, email etc. will
help in evaluating target audience with their specific needs and requirements and also
research about competition in market.
Customer satisfaction: Marketing plan can be successful through the evaluation of
product quality which can satisfy the needs of customers.
New markets: The best evaluation of effectiveness of marketing plan can be done by
new target markets and consider aiming at future marketing campaigns.
5. Market evaluation process
Country Identification: It is important for an organization top identify the statistics of
country in which organization wants to enter. Zenith must undertake a general overview
of potential new markets or similar culture, political ideology, religion e.g. China and
Cuba.
Preliminary screening: It helps in selecting the nations within the country whose
economic stability is good and after selecting the nations, this stage consider upon
macro economic factors such as economic stability, exchange rates etc (Crick and
Crick, 2015). China's economic and political stability is better for Zenith to expand its
business.
In depth screening: It helps in selecting the potential market within that nations
according to demographic, culture and behavioural aspects. This stage analyse the
feasibility for market entry, micro-economic factors such as market research related to
marketing mix.
Final selection: This stage selects the final countries where entering in market can be
beneficial to both company and the country in which they are operating. In this potential
countries are short listed considering close competitors and similar domestic
companies.

Direct experience: In this marketing manager travel to the location to have personal
experience on nation's culture and business practices. The manager at Zenith pizza can
visit China and Cuba to analyse the market research which they have collected by
through previous reports.
6. Explanation of trading blocs and agreement
Trade blocs are the type of intergovernmental agreements between two countries
where barriers to trade are Payne, A. and Frow, P., 2017minimized or eliminated. The
one of the trading block is Preferential Trade Area where countries reduce tariff within a
geographical region and the agreement in which trade rules are set between two
countries is known as Bilateral Agreements. It can help in increasing foreign direct
investment and this can offer new jobs which will increase independence on economic
performance of other countries. It creates changes in demand due to which customers
can buy the products at the lowest price. The two countries where Zenith Pizza can
enter are China and Cuba.
7. Expansion in two international market
Zenith can expand its business in two potential market i.e. China and Cuba whose
economic and political stability is good with high GDP growth and customer purchasing
power.
8. Barriers in international market
Tariff barriers includes value added tax and consumption tax. In China, the
normal tax ranges from 10% to 16% for certain items. Non-tariff barriers includes form of
taxes limiting imports or exports from another country (Payne and Frow, 2017). Licence
work is a non tariff barrier in which authorization of government is necessary to grant
permission to import and export. Non tariff barriers have flexibility as compared to tariff
barrier, in non tariff barriers the price differentiation is greater in two countries as it does
not have free flow of imports but in case of tariff, the difference between price will be the
same to cost of tariff and conveyance between two countries. Zenith Pizza will face
challenges in these barriers so they need to understand all the policies related to
exporting and importing of resources in the market they want to enter.

Task 3
1.Difference between global and local marketing
Global Marketing Local Marketing
Marketing in which companies’ product is
sell or promoted between two different
nations.
Marketing in which companies’ product is sell or
promoted within domestic market.
Whole market area is covered. Local market does not cover wide market area.
Company has to face the challagens in
marketing of adopting to the new culture of
the hosting country.
Company only requires to adopt the competitor
policy to take advantages.
As Zenith Pizza will require a huge amount of financial resources to enter a global market but in
return Zenith pizza will able to communicate with wider customer in global market.
2.Service vs Merchandise,Powell, M. and Osborne, S.P., 2015
Similarities: Service providing business and Merchandise providing business both requires
hiring an employee and both requires customer to pay for their offering.
Service Merchandise
Service providing company used to offer
services to their customer
Merchandise providing company provides
goods or product to their customer.
3.Advantages and Disadvantages of Importing and Exporting
Advantages: Importing and Exporting will help Zenith to get the raw material at cheaper
rate from international market as compare from global market. Zenith will also able to
attend large market area by the way of exporting the product. Zenith will offer variety of
product to consumers as importing will let Zenith to receive raw material which was not
available before.
Disadvantages: Zenith may requires finding exporter as it is difficult task it may
consumes lot of time. As import and export requires lots of documentary work it may
result in the delay of the product. Zenith may also face the quality issue as in import and
export process product used to damage.

Zenith need to have good quality Human man power as International market offers
quality of challenges which can only be overcome by quality of brains(Powell and
Osborne, 2015). Zenith Pizza will also require good financial resources as entering into
new market always requires money to settle. Zenith Pizza need to imphases more on
market research in the foreign market as it will help the business to evaluate the culture
and taste preference of customer in global market which will help company to attract
more customer toward the company.
4.Forces affecting Zenith Pizza
Leadership and Employee: Zenith Pizza should hire Quality employee and leaders
in the organisation and maintain good communication with them because when
employee feel good in organisation then efficiency of work increases.
Competitor: Zenith Pizza need to be one step ahead of the competitor as there are
many international outlet selling pizza for e.g.: Domino.
5.Element of Marketing Plan
 Product: Good or service you are offering to customer.
 Price: Return you are expecting from consumer in exchange of product you offer.
 Promotion: These include giving knowledge to the customer about the product.
 Place: The market where your product or services will be sold.
 Packaging: Refers to the process of warping and designing your product.
 Position: It refers to the place your product is having in the market and consumer.
 People: They are the one who will run business internally and externally.
 Standardization: Company should make sure that the product should be
produced with a standard of a quality to attract customer.
Marketing plan is the standard process in getting good place in market as with the
help of marketing plan Zenith can develop good product by keeping in mind taste of
consumer and also set a good price to attract customer and will able to give knowledge
to customer about product, without knowing great market to work no one can succeed,
good packaging always create good impression, good position is the thing every
company desire to have and people are the one should have taken care off to run a
quality business (Rekettye and Rekettye, 2016).

Zenith Pizza can hire a good quality human man power which is internal factor to the
organisation. Zenith Pizza can evaluate the external environment to find out the threat
and oppourtunity in the market.
6.Critically explain the importing and exporting
Importing and Exporting process will help Zenith pizza to offer variety of product to
its customer as Zenith pizza will able to get variety of other raw material, will also help in
getting some raw material at cheaper rate but on the other hand it may harm to Zenith
pizza as well because Zenith pizza is food producing company will require raw material
which are non-durable and may get damage in the process of importing and may take
time to deliver.
Illustration 1: Preparing of Import/Export
(Source: Data Import/Export Framework (DIXF)
user guide, 2019)
Export is a procedure of sending the goods from one country to another. Import is a
procedure of buying the product from another country.
7.Recommendations based on research and personal opinion.
It will be difficult for Zenith to enter into an international market as it will be difficult
for Zenith to known new taste of customer as taste changes but at the other end it will
help in cost cutting as employee wage is very less than compare to UK.
They can make use of merger to enter into new market.
TASK 4
Cover in PPT

CONCLUSION
From the above report it had been concluded that Zenith Pizza follows the market
strategies and analyse the business environment with the help of tools and to choose
correct new market it performs market evaluation process. It also highlighted the tariff
and non tariff barriers in importing and exporting barriers through various marketing
strategies. Assignment has achieve knowledge of various techniques to enter new
market.

REFERENCES
De Mooij, M., 2015. Cross-cultural research in international marketing: clearing up some of the
confusion. International Marketing Review, 32(6), pp.646-662.
Christodoulides, G., Cadogan, J.W. and Veloutsou, C., 2015. Consumer-based brand equity
measurement: lessons learned from an international study. International Marketing
Review, 32(3/4), pp.307-328.De Mooij, M., 2015.
Paul, J., 2015. Market access and the mirage of marketing to the maximum: new measures. Asia
Pacific Journal of Marketing and Logistics, 27(4), pp.676-688.
Lewis, G.K., Byrom, J. and Grimmer, M., 2015. Collaborative marketing in a premium wine
region: the role of horizontal networks. International Journal of Wine Business
Research, 27(3), pp.203-219.
Thakur, R., 2015. Community marketing: serving the base of the economic pyramid
sustainably. Journal of Business Strategy, 36(4), pp.40-47.
Hoppner, J.J. and Griffith, D.A., 2015. Looking back to move forward: A review of the evolution
of research in international marketing channels. Journal of Retailing, 91(4), pp.610-626.
Crick, D. and Crick, J., 2015. Learning and decision making in marketing planning: a study of
New Zealand vineyards. Marketing Intelligence & Planning, 33(5), pp.707-732.
Payne, A. and Frow, P., 2017. Relationship marketing: looking backwards towards the
future. Journal of services marketing, 31(1), pp.11-15.
Powell, M. and Osborne, S.P., 2015. Can marketing contribute to sustainable social
enterprise?. Social Enterprise Journal, 11(1), pp.24-46.
Rekettye Jr, G. and Rekettye, G., 2016, September. Findings of an International research on the
future of marketing communication. In 2016 ENTRENOVA Conference Proceedings.
Books and Journals
Online
Data Import/Export Framework (DIXF) user guide. 2019.[online]. Available
through<https://docs.microsoft.com/en-us/dynamicsax-2012/appuser-itpro/data-import-
export-framework-user-guide-dixf-dmf>

SWOT Analysis, Competitors & USP. 2019. [online].Available
through<https://www.mbaskool.com/brandguide/food-and-beverages/9410-gattis-
pizza.html>