International Marketing Approaches & Competitor Analysis for Kristy's

This report provides a detailed analysis of international marketing strategies for Kristy's, a UK-based business specializing in healthy, gluten-free, and dairy-free food products. It begins by outlining the scope and key concepts of international marketing, including exports, imports, and management contracts, and introduces the EPRG framework (Ethnocentric, Polycentric, Regiocentric, Geocentric). The report then examines the rationale for Kristy's to expand internationally, considering factors such as increasing obesity rates and limited local market growth, and explores various market entry routes like franchising, direct exporting, and joint ventures. Opportunities and challenges in international marketing, including tariff barriers, complex administrative policies, and exchange rate differences, are evaluated. Furthermore, the report assesses key criteria for selecting an international market, such as political risks, environmental concerns, and trade barriers, and details the international market selection process. It also discusses different market entry strategies, including exporting, partnering, greenfield ventures, and licensing, highlighting their advantages and disadvantages. The global versus local debate is explored, with an emphasis on product, pricing, promotional, and distribution approaches in various international contexts. Finally, the report analyzes different international marketing approaches Kristy's can adopt, compares home and international orientation, and outlines ways to assess competitors, providing recommendations on how the organization should operate internationally.

INTERNATIONAL MARKETING
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Table of Contents
INTRODUCTION................................................................................................................................2
LO1...................................................................................................................................................3
P1 THE SCOPE AND KEY CONCEPTS OF INTERNATIONAL MARKETING.......................................3
P2 EXPLAIN THE RATIONALE FOR KRISTY’S TO MARKET INTERNATIONALLY AND THE VARIOUS
ROUTES TO MARKET THE ORGANIZATION CAN ADOPT..............................................................5
M1 EVALUATE THE OPPORTUNITIES AND CHALLENGES THAT MARKETING INTERNATIONALLY
PRESENTS TO KRISTY’S.................................................................................................................7
LO2...................................................................................................................................................8
P3 EVALUATE THE KEY CRITERIA AND SELECTION PROCESS TO USE WHEN CONSIDERING
WHICH INTERNATIONAL MARKET TO ENTER..............................................................................8
P4 DIFFERENT MARKET ENTRY STRATEGIES, INCLUDING THE ADVANTAGES AND
DISADVANTAGES OF EACH........................................................................................................11
M2 APPLY THE MARKET EVALUATION CRITERIA AND ENTRY STRATEGIES AND MAKE
RECOMMENDATIONS FOR KRISTY'S..........................................................................................14
LO3.................................................................................................................................................15
P5 AN OVERVIEW OF THE KEY ARGUMENTS IN THE GLOBAL VERSUS LOCAL DEBATE.............15
P6 HOW THE PRODUCT, PRICING AND PROMOTIONAL DISTRIBUTION APPROACH DIFFERS IN
A VARIETY OF INTERNATIONAL CONTEXTS...............................................................................17
M3 EVALUATE THE CONTEXT AND CIRCUMSTANCES IN WHICH KRISTY’S SHOULD ADOPT A
GLOBAL OR LOCAL APPROACH, HIGHLIGHTING THE IMPLICATIONS OF DOING SO.................19
M4 HOW TO ADAPT THE MARKETING MIX OF KRISTY’S IN DIFFERENT INTERNATIONAL
MARKETS....................................................................................................................................20
LO4.................................................................................................................................................21
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P7 ANALYZE THE VARIOUS INTERNATIONAL MARKETING APPROACHES KRISTY’S CAN ADOPT
...................................................................................................................................................21
P8 COMPARE HOME AND INTERNATIONAL ORIENTATION AND WAYS TO ASSESS
COMPETITORS, OUTLINING THE IMPLICATIONS OF EACH APPROACH.....................................24
M5 EVALUATE VARIOUS MARKETING APPROACHES AND COMPETITOR ANALYSIS IN
RELATION TO AN ORGANIZATION AND MAKE RECOMMENDATIONS ON HOW THEY SHOULD
OPERATE IN AN INTERNATIONAL CONTEXT..............................................................................25
CONCLUSION.................................................................................................................................26
REFERENCES...................................................................................................................................27
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INTRODUCTION
The term international marketing is defined as applying the principles of marketing not in one
but in more nations. In this assignment is the main highlight is the international marketing of a
local company like Kristy’s along with basis on which the company can shift to an international
market. In order to gain relevant information about expanding into international market,
Kristy's has hired a marketing consulting firm that will help them in developing their business
strategies for an international market. Furthermore, here the analysis on the way of choosing a
particular international market for Kristy Henshaw to expand its business and the several
marketing tactics and its drawbacks and benefits are also discussed here.
Kristy’s is a business that is owned by Kristy Henshaw, the idea behind this startup was to make
healthy food those are free from dairy products and gluten. Later as the business developed
she entered into making healthy ready meals for special children those are health as well as
tasty in consuming. Kristy's currently operating in the market of UK and the main aim of this
assignment is to internationally expand the business of Kristy's in an international market using
appropriate tools and strategies.
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LO1
P1 THE SCOPE AND KEY CONCEPTS OF INTERNATIONAL MARKETING
The international marketing has a wider scope in today’s business world as compared to the
past; here is the detailed explanation regarding the scope of global marketing:
 EXPORTS: The organizations export there manufactured products and services to the
global market or send it to their franchise that is facilitating in the markets far off where
the products of the company are being a sale to local people of that place to gain
maximum revenue (Armstrong, et al. 2015).
 IMPORTS: The companies purchase the products from other markets so that they can
resale those products to their customers domestically that has been collected by putting
many efforts on it.
 MANAGEMENT CONTRACTS: In terms of scope in international marketing there is a vital
role in the management contract that supports in gaining the capable workforce using the
agreements. Better outputs are gained by calling the skilled workforce by the suppliers in
accordance with the terms and conditions documented in the contract.
The following are the concept of the international marketing:
The EPRG approach helps to understand the concept of international marketing, that is
understanding the global opportunities present for any organization, it consists of four stages
that help in making decisions:
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 ETHNOCENTRIC ORIENTATION: In this planning, the products planned and produced
according to the needs of the domestic consumers. It majorly concentrates on the laws and
policies that are practised in local organizations (Shoham, 2015).
 POLYCENTRIC ORIENTATION: In this approach business research is conducted and
individual person is asked about their needs and then the products are developed which
also includes pricing and promotional tactics that are best suited according to the
outcomes of the results.
 REGIOCENTRIC ORIENTATION: It is based on the market segmentation in accordance with
the similar aspects of the regions like political resemblances or economic resemblances
etc.
 GEOCENTRIC ORIENTATION: in this approach, the issues are resolved internationally
making sure that the accomplishment of political and legal obligations are kept in concern.
It offers unvarying goods and services so as to assimilate global functioning.
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P2 EXPLAIN THE RATIONALE FOR KRISTY’S TO MARKET INTERNATIONALLY
AND THE VARIOUS ROUTES TO MARKET THE ORGANIZATION CAN ADOPT
As the marketing consultant firm here is the rationale for Kristy’s who is planning to expand its
business in international market so that it could provide its nutritional services in the local
markets of other nations as well:
 As there are many cases of obesity in many parts of the world so Kristy’s have planned to
serve their services in international market so that people can eat healthy there as well.
 Also, the development in the local market is less so growing globally will help in increasing
sales and result in more profit margins.
 By giving competition in the international market Kristy’s can solidify its security in the local
markets as well (Papadopoulos and Heslop, 2014.).
 It will help Kristy's to gain opportunistic development that is it will gain resourceful
opportunity to represent its business and help people to learn a healthy style of living.
FIGURE 1: REASONS WHY COMPANY CHOOSES TO GO INTERNATIONAL
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{SOURCE: HTTP://www.yourarticlelibrary.com/business/8-reasons-why-most-companies-
prefer-to-go-global-explained/13176}
The routes that Kristy’s can opt to expand in the international market:
 FRANCHISING THE COMPANY: Kristy’s can permit its franchises to the owners in other
nations who are interested in opening such stores that provide health and dairy and gluten
free products as well as ready to eat meals (Bonoli, 2017). The interested owners will pay
Kristy's certain amount that is decided at the time of the deal.
 DIRECT EXPORTING: Direct exporting is the simplest of all the routes under this Kristy's can
directly enter its desired market and sell its products.
 JOINT VENTURES: Under this, there is a partnership among two organizations or individual,
Kristy's can link up and invest in its project of setting up a store in the international market.
The investment is done almost equally by both the sides.
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M1 EVALUATE THE OPPORTUNITIES AND CHALLENGES THAT MARKETING
INTERNATIONALLY PRESENTS TO KRISTY’S
The following are the challenges that Kristy's might have to face when expanding into
international markets:
 Tariff barriers include duties and taxes that are charged on the export and import of the
goods and services. The company’s marketing in the other nations at times finds it complex
to earn the required amount of profits at the time of operating internationally.
 Policies of administration are complex in both national and international nations hence
making marketing complex as the legal formalities are complex and take a lot of time
(Oumlil, et al. 2015).
 The difference among the exchange rates will create difficulty for Kristy’s to expand its
business in other nation.
The following are the opportunities that Kristy's might have to face when expanding into
international markets:
 The opportunities in the international marketing are an expansion of Kristy's business and
by promoting its services in an effective manner will help the company to gain a larger
customer base.
 Internal marketing opens the gate of opportunities and helps in boosting the image of the
brand; it helps to build a stronger customer base by presenting the brand in a positive
manner (Kotabe and Helsen, 2014.).
 Expansion in the international market provides the opportunity to the Kristy's to connect
with a new segment of market and consumers and deal with new business partners hence
improving its global networking.
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LO2
P3 EVALUATE THE KEY CRITERIA AND SELECTION PROCESS TO USE WHEN
CONSIDERING WHICH INTERNATIONAL MARKET TO ENTER
The following are the key criteria's that Kristy's must consider while choosing the international
market thoseare suggested by the marketing consultant firm:
 POLITICAL RISKS: It is essential to consider that political instability of that specific country
where the expansion is being planned such as investment restrictions as there are several
countries where there are limitations of who can own business and associated investments
in it.
 ENVIRONMENTAL CONCERNS: there is a major role of environmental factors while
choosing the international market for business as it can impact both in negative as well as
positive ways (Marchi, et al. 2014). Like if Kristy's package any food item to be parcelled
and it cannot bear the atmosphere of that country like heat, or extreme warm there are
many chances of the food being rotten.
 TRADE BARRIERS: The trade barriers must be focused majorly such as taxes as the duties
and tariffs differ from country to country and foreign business may lessen the profit
generation due to the high taxes on several business activities of Kristy’s.
INTERNATIONAL MARKET SELECTION PROCESS
 The very first step is a selection of the country by its identification Kristy's can opt any
country it desires to enter according to its basic overview regarding the potential of a new
market to except its business idea.
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 The second step is preliminary screening that is scoring the country and its market on the
grounds of macro-environmental elements like a rate of exchange, domestic consumption
level, stability in the financial state etc.
 The third step is in-depth screening which is said to be feasible for the entry in a new
market (Vaughan, 2016). In this step, detailed market information is collected that
supports in making appropriate marketing decision such as marketing mix like price,
product etc.
 The fourth step is the final selection that is keeping in concern all the factors potential
country is decide, here the managing department of Kristy's will align its strategic
objectives with a nation so that Kristy's can understand its competitors and other factors.
 Direct experience is the last step in which personal experience is considered the
management team of Kristy’s must travel to the finalized nation and experience it on the
several grounds like business practices, culture, food habits etc.
FIGURE 2: INTERNATIONAL MARKET ENTRY EVALUATION
{SOURCE: http://www.marketingteacher.com/the-international-market-entry-evaluation-
process/}
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P4 DIFFERENT MARKET ENTRY STRATEGIES, INCLUDING THE ADVANTAGES
AND DISADVANTAGES OF EACH
Following are the several types of market entry strategies along with its advantages as well as
disadvantages explained below:
TYPES DEFINITION ADVANTAGES DISADVANTAGES
EXPORTING Exporting means the
sales of goods and
services in the other
nations that are sent
from the native
nation (Watson IV,
2018). For example,
Cooley and Cooley,
Ltd.
It is easy to enter and
has less risk
Less knowledge of
local market, less
control, economic
influence on the
transportation
PARTNERING AND
STRATEGIC ALLIANCE
Under the strategic
alliances, there is a
contractual
agreement among
two or more
companies instructing
that the parties
included will
cooperate in manner
and at times to attain
common goals and
objectives (He and
Balmer, 2017).
Less risk, considered
as a native entity,
investments required
are reduced
Costs much as
compared to other
types, problems can
arise due to an
association of two
variant cultures
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