Kirsty's Expansion: International Marketing Strategies & Mix

This report provides a comprehensive analysis of international marketing strategies for Kirsty, a UK-based food and beverage company aiming to expand globally. It covers key concepts and the scope of international marketing, including the EPRG framework and various entry modes like exporting, contractual agreements, and joint ventures. The report evaluates the rationale for Kirsty's international expansion, considering both opportunities such as increased sales and new product introduction, and challenges like business and competitive risks. It also assesses key criteria for selecting international markets, including political risks and trade barriers, and explores the global vs. local debate in marketing mix adaptation. Furthermore, the report analyzes different international marketing approaches and methods for competitor assessment, providing recommendations for Kirsty to conduct its operations effectively in the international market. Desklib offers a wide range of study tools, including past papers and solved assignments, to support students in their academic endeavors.

INTERNATIONAL MARKETING – KIRSTY

Contents
INTRODUCTION...........................................................................................................................................2
LO1..............................................................................................................................................................3
P1 KEY CONCEPTS AND SCOPE OF INTERNATIONAL MARKETING...........................................................3
P2 RATIONALE FOR KIRSTY FOR MARKETING ITS PRODUCTS INTERNATIONALLY....................................7
M1 OPPORTUNITIES AND CHALLENGES FOR KIRSTY WHILE MARKETING ITS PRODUCTS
INTERNATIONALLY...................................................................................................................................9
LO2............................................................................................................................................................11
P3 EVALUATING THE KEY CRITERIA AND THE SELECTION PROCESS WHICH THE KIRSTY SHOULD
CONSIDER TO ENTER INTO THE INTERNATIONAL MARKET....................................................................11
P4 EXPLANATION OF DIFFERENT MARKET ENTRIES AND STRATEGIES ALONG WITH THEIR ADVANTAGES
AND DISADVANTAGES...........................................................................................................................13
M2 APPLICATION OF MARKET EVALUATION STRATEGIES AND ENTRY CRITERIA FOR KIRSTY
ORGANIZATION.....................................................................................................................................16
LO3............................................................................................................................................................17
P5 OVERVIEW OF CHIEF ARGUMENTS IN GLOBAL AND LOCAL DEBATE................................................17
P6 ANALYSING THE MARKETING MIX APPROACH IN AN INTERNATIONAL CONTEXT FOR KIRSTY.........19
M3 EVALUATION OF THE CIRCUMSTANCES WHERE KIRSTY MUST ADOPT A GLOBAL OR LOCAL
APPROACH AND ALSO HIGHLIGHT THE IMPLICATIONS.........................................................................21
M4 ARTICULATION OF THE WAY TO ADOPT MARKETING MIX FOR KIRSTY IN VARIOUS INTERNATIONAL
CONTEXT................................................................................................................................................22
LO4............................................................................................................................................................23
P7 EXPLAINING AND ANALYSING DIFFERENT APPROACHES FOR INTERNATIONAL MARKETING WHICH
KIRSTY CAN APPROVE OF.......................................................................................................................23
P8 COMPARISON OF HOME AND INTERNATIONAL ORIENTATION AND METHODS TO ASSESS
COMPETITORS DEMONSTRATING THE IMPLICATIONS OF EACH OF THE APPROACH............................24
M5 EVALUATION OF DIFFERENT APPROACHES OF MARKETING AND ANALYSIS OF THE COMPETITOR IN
RELATION TO THE FIRM AND SUGGESTING RECOMMENDATIONS ON HOW TO CONDUCT THEIR
OPERATIONS IN INTERNATIONAL MARKET............................................................................................26
CONCLUSION.............................................................................................................................................27
REFERENCES..............................................................................................................................................28
1

INTRODUCTION
International Marketing basically refers to a process of selling or marketing company’s products
to overseas nations for generating profit and increasing more customer base in the business.
International Marketing is a process that undertakes many activities and it is also called as
global marketing. Various activities are designed based on the marketing mix components of
product, price, place and promotion. The foremost decision that all small companies make is
whether to go global or not. Going global is not easy as there are many rules and regulations
that need to be followed in marketing products in overseas nations.
This assignment will take into consideration Kirsty which is a local company in the UK offering
food and beverage product to the customers. The main aim of this company is to expand its
market at a global level and this report will cover the key aspects as to how Kirsty can expand its
business at a global level. This report will highlight the key aspects as to how marketing
contributes to business strategies in an international context for Kirsty. In the next section of
the assignment, various methods of entry into the international market for Kirsty will be
explained followed by investigating the elements of a marketing plan that can be adopted by
Kirsty in standardizing and marketing its products internationally. In the last section of the
assignment, various international marketing approaches that can be used by Kirsty will be
critically analyzed and explained.
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LO1
P1 KEY CONCEPTS AND SCOPE OF INTERNATIONAL MARKETING
International Marketing is also referred to as global marketing when one company plans out to
market its products and services internationally. It is a multinational process which comprises of
planning and execution of certain concepts like price, promotion, distribution, goods and
services for creating exchanges thereby satisfying personal and organizational objectives.
International marketing is nothing but the principles of marketing applied in an international
context (Terpstra, et al. 2012).
CONCEPT OF INTERNATIONAL MARKETING / EPRG FRAMEWORK
This framework was given by Wind, Douglas and Perlmutter and it describes various stages of
international marketing and operations as explained below.
Figure 1: EPRG Framework
(Source: advaitha, 2010)
Ethnocentric orientation
The company believes that the customers of the home country are more superior to overseas
nations (Wach and Wojciechowski, 2014). When these businesses adopt ethnocentric
orientation it refers to identifying similarities of new markets with their own country. Similarly,
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Kirsty can also make use of this technique by focusing on the home consumers thereby
analyzing the needs and demand of the home country customers and then provide them quality
products and services (Wach and Wojciechowski, 2014).
Polycentric orientation
The managers of an organization see the whole country as unique and consider that businesses
are run best in the local market. In this form of orientation, the marketers identify the needs
and demand of the customers about a certain product similarly Kirsty can conduct a market
research to identify the consumer demands and then devise strategies of marketing accordingly
(Yu, et al. 2010).
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Regiocentric
In this type of Orientation, the company first finds out the similarities between the host nation
and to the nation in which it wants to expand the business. The company can analyze the
similarities between the cultures, economic and political similarities and then satisfy the needs
and demands of the potential customers (Verbeke and Kano, 2016). Similarly, Kirsty can find
similarities between two nations as it would save time in devising strategies for product
development and marketing strategies.
Geocentric Orientation
Companies using geocentric approach are the global players because these companies consider
the whole world as a potential market. Similarly, Kirsty can identify the similarities between the
home country and the international market. The geocentric approach is based on an idea of
"think globally act locally" ( Djordjević, 2014).
SCOPE OF INTERNATIONAL MARKETING
Imports
It is one of the easiest forms of marketing in which one company imports product from one
country and then sells the products in the domestic market. Similarly, Kirsty can import product
in bulk quantity and sell products are high prices in the domestic market thereby gaining huge
profit in the business (Czinkota and Ronkainen, 2013).
Exports
It is opposite of Importing, companies manufacture the products and then export its product to
the international market at higher rates. Similarly, Kirsty can manufacture food and beverage
items and then sell it in the international market thereby making a high profit in the business.
Contractual Agreements
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A contractual agreement is made between two companies related to the processor sharing a
type of responsibility. For example, companies make contractual agreements with overseas
partners in order to grow exponentially (Czinkota and Ronkainen, 2013).
Joint Venturing
A joint venture comes into existence when a foreign investor takes interest in a local company
and vice versa. Similarly, a joint venture can be formed by Kirsty and any company from
overseas nation to produce a new firm (Czinkota and Ronkainen, 2013).
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P2 RATIONALE FOR KIRSTY FOR MARKETING ITS PRODUCTS INTERNATIONALLY
There are many issues and challenges that Kirsty will have to face in order to expand its
business in overseas nations. But in order to leverage higher product, it is essential that Kirsty
expands its business internationally. Some key issues that can be considered By Kirsty in order
to expand its business internationally are explained below.
 In order to create an international brand value and expand the customer base in the
business, it is foremost essential for Kirsty to expand its business internationally.
 The international business expansion also allows firms to gain access to new talent
pools. In most cases, international labours have increased firms productivity and
operational capabilities. Moreover, it also brings innovative ideas in business when
people from diversifies backgrounds work together.
 International expansion will allow Kirsty for gaining access to new technologies that can
significantly improve the production and operational process of Kirsty’s Organization.
Moreover, overseas expansion is also required for gaining a competitive edge over the
competitor companies thereby building a strong brand awareness and increased
customer base in the business.
It is essential for Kirsty to consider some of the important routes for expanding the business
internationally as described below.
Franchising
Franchising also called as privileged business is a method in which a franchisor gives the license
to the franchise for doing business thereby offering assistance to the organization. Similarly,
Kirsty can also form franchises for supporting its business function like marketing and sales
franchising etc.
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Direct Exporting
Direct Exporting is a situation in which Kirsty can sell its products directly to the customers in
any country without taking any assistance from any other company. For example, if Kirsty wants
its products to be sold in another country then it has to place is products in an appropriate store
of an international company.
Partnership
It refers to a formal arrangement in which two or more companies operate or manage a
business. There can also be a written agreement for governing a partnership between two
companies. Kirsty can also form partners for business assistance, for example, it can partner
with IT companies for maintaining the database of Kirsty's organization.
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M1 OPPORTUNITIES AND CHALLENGES FOR KIRSTY WHILE MARKETING ITS
PRODUCTS INTERNATIONALLY
CHALLENGES IN BUSINESS EXPANSION FOR KIRSTY
Business Risks
There are many risks and challenges in expanding business internationally for Kirsty for example
instability, ineffective management, financial loss. When a business expands internationally the
culture, customs and traditions could be totally different from the home country and this could
be the biggest challenge in business expansion. The company will have to form strategies so
that it can adapt to the changing environment and can meet the demands of the customers.
Competitive Risks
When a company expands internationally then it has to face a big challenge from the
competitor companies already doing well in the area. It is difficult for a company to establish its
place in the new market.
OPPORTUNITIES IN BUSINESS EXPANSION FOR KIRSTY
Opportunity for increasing sales
One of the biggest opportunities that Kirsty can have is increasing its sales margin by marketing
its products in the overseas market. The company can also adopt various marketing strategies
for increasing the sales volume.
Introducing new product in the market
If Kirsty enters into a new market the company can introduce new products in the existing
market. When companies introduce unique and new products there are greater chances that it
can build a loyal customer base in the existing market.
Starting a new business
9

If Kirsty offers unique products to the customers then starting a new chain of business in the
new market is not difficult. When a company offers diversifies products then the brand value of
that company increases in the minds of the customers.
10

LO2
P3 EVALUATING THE KEY CRITERIA AND THE SELECTION PROCESS WHICH THE
KIRSTY SHOULD CONSIDER TO ENTER INTO THE INTERNATIONAL MARKET
In order to expand the business internationally, it is essential that Kirsty consider some of the
key criteria's as explained below.
New Competition and Unfamiliar marketplaces
Kirsty may have a good regional coverage but when a company enters into an international
market the situation changes (Akaka, et al. 2013). There are already well established having a
strong presence in the market both locally and nationally. Hence breaking through and
establishing your own brand is quite difficult. Therefore, Kirsty must offer quality products to
the customers so that it can survive in the unfamiliar and competitive environment.
Political risks and Trade Barriers
Choosing an appropriate market for business expansion is highly important for example if the
political condition of a country or region is not stable then it would be very difficult for a
business to operate in the area (Shenkar, et al. 2014). It is essential that the government
supports the emergence of new business in the area. There can also be some trade barriers that
may restrict international trade across nations.
SELECTING AN INTERNATIONAL MARKET
Kirsty can consider the following steps for business expansion as mentioned below.
Country Identification
Kirsty should identify the existing businesses in a country. It is essential to identify the political
situation in the country as it should favor the emergence of new businesses in the area
(Papadopoulos and Martín, 2011).
Preliminary Screening
11