International Marketing Report: Lidl's Global Expansion

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International Marketing
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Table of Contents
Introduction......................................................................................................................................3
Evaluate several types of resources to define international marketing and emphasize major
dissimilarities to local marketing.....................................................................................................3
Assess the scope and key concepts of international marketing.......................................................4
Explain rationale for the company to market internationally..........................................................5
Describe the various internationally marketing entry routes and which one the company should
adopt................................................................................................................................................6
Evaluate the key criteria and selection process that company should use while considering which
international market to enter............................................................................................................7
Define the market entry strategy......................................................................................................7
Conclusions and recommendations on how and why the company should enter the international
market..............................................................................................................................................8
Explain the difference between global and local marketing, using examples where appropriate...9
Present an overview of the key arguments in the global vs. local debate.....................................10
How does the product, pricing, promotional and distribution approach differ when using a
variety of international markets?...................................................................................................11
Explain and analyze in detail the various international marketing approaches the company can
adopt..............................................................................................................................................12
Compare home and international orientation and methods to evaluate the competitors , outlying
the implications of each approach.................................................................................................13
Conclusions and recommendations for the company....................................................................14
References......................................................................................................................................15

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Introduction
In this report, different marketing strategies will be discussed while a company is approaching to
the international market. In the competitive market, several issues are faced by a company while
they expand their business operations and marketing. Within the framework, the company is
chosen Lidl. Besides, Lidl is a food retailer in UK and the company offers high quality products
to their customers at feasible price. By their quality services and products, the company is well
known as a main local retailer in UK. However, Lidl delivers the grocery items to their
customers, which are mainly sourced from local framers. In era of globalisation, each sector
needs to expand their business structure and marketing strategies internationally. For being a
marketing consultant of Lidl, the main aim is to develop the business activities in the global
context.
Evaluate several types of resources to define international marketing and emphasize major
dissimilarities to local marketing
International market is the multinational method of planning the different marketing strategies
like promotion, costing, conception, distribution of products and services to make exchanges.
Besides, it supports the company to develop their business policies globally and achieve the
organisational objectives. In case of Lidl, the local company must utilize several sources while
marketing internationally.
Language- It is one of the significant sources that need to be paid more attention by the company
while marketing internationally (Abdulai Mahmoud and Yusif, 2012). For having insufficient
language, the company may face several problems. Some embarrassing mistakes have been
happened in the international marketing, which may not support Lidl sells their products.
Customer’s habits- Culture and personality have combined to form the behaviours and traits of
customer’s in each region of the world. While Lidl would like to sell an item in foreign nation,
then the company needs to understand the demands and needs of customers. However, the
company has to estimate other psychological and societal aspects, which influence the buying
behaviours of consumers.

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Age or demographics- Age or other demographics act an important within international business,
as the company has to focus on them (Bangara et al., 2012). The company must target youth
people while approaching or launching their latest products in the market. Youth generation
easily motivate by the approaches of company and desire to buy the items.
Supply and demand- In global context, supply along with demand would act a main role to
market Lidl’s products anywhere in the world. In recent times, the company has to focus at the
potential markets as their management want to know the suppliers and stakeholders.
Financial aspects- Changes in the economical aspects may affect the entire business of Lidl.
While marketing internationally, the company must focus on their financial and banking aspects.
However, different rules and regulations are present that may reduce the entire turnover of
company. In global context, the HR management of Lidl needs to recognise and nullify the risk
factors that will beneficial for the company (Berthon et al., 2012).
However, domestic marketing is a process in which company desire to sell their items in a local
market. It mainly deals with a particular set of competition and economic problems that create it
more suitable to expand the company’s business. In a local context, there are no language
obstacles and the demands of customers are easier as the company always ready to serve it.
Further, local marketing supports Lidl to take decisions and expand their marketing activities,
which are more beneficial for the company (El-Gohary, 2012). Some risk factors are lesser in
domestic market and the company requires small amount of resources to enhance their market.
Thus, each nation has its individual laws on the business policies and a company wants to enter
in another nation should know about them. Here, the preferences and tastes of customers may
also be different in international context, as the company should pay attention on it.
Assess the scope and key concepts of international marketing
In the international context, no company can survive until they do not possess international
marketing plan. In current times, international business policies have better significance for the
local sectors like Lidl. It helps the company to develop their relation among customers and
countries. The main scope of international marketing is to enhance the profit percentage by
selling their products in the geographical region, which has a huge demand for those products

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(Oly Ndubisi, 2012). It is the major function of international policy where the products made in
one nation are shipped towards other nation for further sale. The management of Lidl is planning
to deliver their products outside of UK and probable make their stores all around the world.
While launching new items, the company may offer several discounts that fulfill the needs of
customers in global context. This is the basic feature of marketing and Lidl deliver huge range of
items, which could cater the needs of different customers.
On the other hand, Lidl uses the foreign investment policy to enhance their business globally
(Sharma, 2013). The retail sector wants to market the products internationally and takes the risk
factors in overseas nation. In this aspect, the main success of the company depends on their
performance with several countries. Thus, marketing approach of Lidl must make the positive
effects on their items and services as they attract more customers towards them.
Explain rationale for the company to market internationally
The main aim of international business is to enhance the marketing structure of local company
widely. However, the suppliers and shareholders deal with least amount of resources in case of
international marketing (Ma et al., 2013). It provides a network in which company must be
beneficial. The local companies like Lidl should target the market based on their innovative
activities. International market gives more benefits while the outside marketplace has more
attention to the products provided and the main barriers like political, economical and technical
aspects are low in this context. Lidl may also obtain high recognition of their brand within
international market.
In this report, several strategies may be adopted by Lidl to launch their items all around the
world. This is why the company is chosen to carry out the prospects of international marketing.
By adopting innovative styles, the company easily can sell their products in international context.
However, the main focus of this company will be delivering superior quality of products and
services to their customers at reasonable price (Maga et al., 2013). The company must know the
needs of customers and their management should find the ways in which the latest items getting
valuable response from the consumers.

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Describe the various internationally marketing entry routes and which one the company
should adopt
International marketing routes may differ in terms of risk factors that present in the business
policies. However, there are two main typed of marketing entry modes i.e. equity and non-equity
routes. Non-equity routes comprise of contextual deal and export policies while equity includes
owned subsidiaries and joint ventures. Exporting is one of the modes in which company sells
products in one nation to other nation. In exporting, directing indicates the basic mode of
exporting business (Hays et al., 2013). It performs better in case the quantities of resources are
deliberately small. Huge amounts of export could trigger the protectionism. In this aspect, there
are no intermediaries and the company directly deal with suppliers and stakeholders. Licensing is
another mode of marketing that allows local company to enter in international market. The
company must have a licensor to market their items globally.
This mode of business is acting as a mediator to transfer the knowledge between paternal
company and their management has the rights to select the proper partners. However, the
company may avoid their competitors as they deal with partners mainly. On the other hand,
franchising is the marketing mode in which semi-independent owners may pay the fees and
maintain the connection with parent sector (Kellezi, 2014). Compared to the licensing mode,
franchising has a tendency to be longer and gives a huge range of resources and rights that
generally comprises of managerial systems, training and equipment. All these things are
necessary to run the business significantly. In addition to, the company would like to perform
with their business partners in international marketing.
From these above entry modes, franchising is the most suitable mode, which the company should
adopt. In this activity, Lidl may face low political risk and allows the company to expand their
business in several regions of the world. However, local companies like Lidl has easily chosen
the partners for their economical investment and HR management take the necessary decision in
case of business operations (Kozlenkova et al., 2014). The conflict situation may arise while
dealing with these business mode and control over it may be the most difficult task for the
company. Besides, the leaders at Lidl look at the problems and diverse new solution to enhance
the international marketing policies. The company also motivates other workers to deal these
business modes and gain the success in upcoming years. Thus, Lidl may perform with their

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partners within sustainable conditions and mainly focus is to deliver high quality of products and
services.
Evaluate the key criteria and selection process that company should use while considering
which international market to enter
In recent times, most of the local companies assume that their market is limited and it must be
the significant aspect for them to choose a suitable market. Choosing an appropriate market
make the effectiveness of an organisation in the global context. For having several options in
global context, it could be complicated for a local sector to decide their business actions in which
they easily get the organisational objectives. The selection of a global market engages four phase
that develop their infrastructure (Mogos, 2015). The Primary phase is the procedure of decision-
making and it is the base of company’s achievement. After that, the company may remove the
countries, which do not meet the requirements of company. In next stage, Lidl may arrange the
preliminary screening in which company gets several options to run their business successfully.
At the last stage, the company should finalize the profit margin along with revenue percentage.
While marketing internationally, Lidl has to face several challenges. Thus, management at Lidl
has to aim on their daily activities to control other tasks and ensure that the company should be
beneficial by their performance (Opreana and Vinerean, 2015).
The local sectors like Lidl have to make a marketing plan to sketch the course of action. This
plan starts with the identification of objectives and goals. The company may like to decide the
international marketing as they target the customer. Market research is one of the best selection
processes that support the company to analyse the market properly. However, company needs to
collect the information to know the market size, latest trends and the future prospects.
Define the market entry strategy
Market entry strategy is a intended distribution process and the company targets an international
and local market to deliver their products or services. Several market entry strategies are
accessible for the organisation (Patrutiu-Baltes, 2016). Direct exporting is selling the products
directly in the marketplace. Many companies, once they have set up sales programmes, they turn
to agents and distributors to present them extra in that marketplace. Distributors and agents are

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working closely to present the products. They become the main aspect for company. However,
licensing is the sophisticated process where a local company transfers the rules and regulations to
deliver their items in the market. Partnering is almost a necessity for the company while
approaching to the foreign markets, and it is helpful strategy in that marketplace where culture,
social and political change is different. Joint venture is another mode of marketing strategy,
which engages the creation of third party independently. In this process, two sectors are agreed
to perform together within a specific market (Taherdoost and Jalaliyoon, 2014). Risk factors and
profit margins are shared evenly. The best instance of joint venture is Maruti Suzuki in India.
Conclusions and recommendations on how and why the company should enter the
international market
As mentioned by Lee and Carter (2011), the company Lidl is dealing and managing their
business in the market of UK for several years and it earns reputation in the domestic or local
market. The quality of food products delivered in the retail sectors of the company is widely
accepted by the customers and the supply of grocery products is supported by the customers.
Therefore, it can be stated that the company has a good position in the local market. The
resources they have are enough for dealing with the local market and it can be used to finance for
the international market too. However, the opportunity of the company Lidl in the local market is
restricted or limited, and for this reason, it needs to be expanded to the international level. On the
other hand, the act of globalisation also supports expanding of the company and overspreading in
other country (Quelch, 2017). Therefore, the company can make their move in the international
market, so that they can experience a new business venture.
Lidl can enter in the international market only after making a proper marketing strategy for the
approaching market. Thus, a proper evaluation on the marketing condition of the approaching
country should be done and by this way, the compatibility of the market for Lidl will be
evaluated. The company should also select a proper distribution channel for their new market, so
that the demand could be fulfilled. The preferences and choice of the population of the
approaching market should be done and checked for having the cultural barriers (Kee and
Yazdanifard, 2015). The company must make a proper pricing strategy for their business that
these products can reach to the large part of population in the new country and become

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successful in international marketing. The task would take enough time, which should be
provided by Lidl so that the economical conditions are analyzed and proper strategies can be
developed.
Explain the difference between global and local marketing, using examples where
appropriate
The company Lidl is presently dealing with the domestic market or the local market, where the
company offers their food products and grocery to only a group of customers of their own
country. In this case, local marketing the company is targeting only the fixed customers. The
company is also dealing with only one set of competitors to obtain the competitive advantage in
the local market. The pricing offered in this case are focused to a particular domain or for own
country. Gázquez-Abad et al. (2011) mentioned that this type of marketing within a business
provides an additional support to the company, where the dealing of the business becomes easier.
In case of Lidl, as the organisation is presently dealing their business only in the domestic or
local market, it did not encountered any kind of cultural barrier, such as the language barrier in
dealing the customers and employees. In addition, the demands of the customers are confined in
a particular area, which means that the identification of the trend of the market is easier and the
development of marketing strategy is less complicated. Further, the marketing strategy used in
this case is more effective, as Lidl can develop their plan based on only one set of economic
issue in the UK market (Ghosh, 2017). Another important thing about the local market of Lidl is
that, the market is not broad and only few financial resources are use, which indicates less risk in
the business.
In case of international or global market, the company has to deal their business in different
countries, which means that the company must get prior information related to the market and
the economic condition of the new country prior to penetrate there. In case of Lidl, the company
is presently focusing to approach in a different country for globalisation, as it must make their
promotional activities according to preferences of the customers in the new country (Gillespie,
2015). Therefore, this means the company would face a strong competition in the approaching
market, as the company will compete with multiple competitors in the market. Besides, the taste
and choices of the customers in the new market is not completely known to the company, so the

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development of the marketing strategy for them will be more complicated. Yang et al. (2012)
commented that the assessment of the preferences would also be difficult, as the company may
encounter the language and cultural barrier in the approaching country. Lastly, for adopting the
globalisation or approaching in a new country will require huge amount of financial resources
that indicates the company will face a great risk in this international market. The pricing will also
be done according to the economic condition of the market, thus the strategy should be complex,
as it will cater consumers of different background. Besides, the international market for Lidl is
very unpredictable and it can change at any time.
Present an overview of the key arguments in the global vs. local debate
As mentioned by Gabrielsson et al. (2012), the handling of the local market is easier, as it is
concerned with only one economy at a confined place. However, in case of global market, the
size of the market is bigger, so that the activities in such case become more complex. In case of
Lidl, the company is delivering their food staffs and grocery item in the local market in UK,
which is aimed to expand in the global scale. The dealing of global market thus will be difficult
for handling, as the market size and condition is not known to Lidl. In addition, the strategies
used in managing the global market are little bit different from that of the local market. Although
the dealing of global market is important for an organisation to expand their business, the global
market puts different risks in the business (Kotler et al. 2018). For example, in Lidl, which is
famous for delivering the quality of food items to the customers by their retail chains needs extra
attention in delivering their products to the customers.
The pricing in that case needs to be changed, as the economy of the approaching country may not
match to the former one. Besides, the grocery items, which are collected from the local farmers
and are sold to customers of the local market, which may not be completely done in international
market, as the collection from the local farmers will not be able to match the increased demand
of the international market. Berthon et al. (2012) commented that dealing the international
market requires lot of financial resources, and make risks in being successful. Often, it has been
observed that the investment in the country will not be successful in the international market.
Beyond, at the beginning, there is a high chance of being rejected in the new market. Therefore,
in case of Lidl, the chance of being successful in the new market is not completely ensured. In

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addition, the employees may incur the language barrier, and the cross-cultural confliction, which
may limit the functioning of the organisation in the global market.
Conversely, Hallbäck and Gabrielsson (2013) mentioned that it is high time for Lidl to move in
the global market. Although there are several risks in the global market, the company also has a
potential to establish in the new market. That means the chances for Lidl of being successful is
higher in the new market. On the other hand, it will improve the business of the company, and
will increase the turnover of the organisation. There are various difficulties in arriving in the new
market, and it requires much time to bring the market in favour of the organisation. However,
providing of enough effort and time, and proper investment will help in making the business
successful in the global market. The local market for Lidl is proven beneficial, as it has least
risks, and it does not invest much time and effort. The management activities are easy enough,
but the opportunities in this case are limited, which expanded in the global marketing. Therefore,
global marketing may be risky for a local company like Lidl, but it can provide an increased
opening to it.
How does the product, pricing, promotional and distribution approach differ when using a
variety of international markets?
The international marketing mix includes all different segments related to the marketing of an
organisation, such as the promotional activities, distribution channels, products, pricing and so
on. This is done on the socio-economic background of the global market to assess the positive
financial outcome, while approaching to a new market. For Lidl, the company must identify the
preference of their customers in the new market before entering there (Sinha and Sheth, 2018).
Then it should be evaluated that whether it matches to the company’s structure and product. For
example, as the company is collecting their grocery items from the local farmers only, it cannot
be able to deliver these in the new market, only if they collect it from the farmers of the
approaching market (Kotler et al. 2015). Besides, the pricing of the product in the new market,
should also be constructed with separate marketing policy, which will be suitable to the new
market and their economy.
The distribution in the international marketing mix refers to the delivering of the products at the
proper time. This means the company Lidl must require a proper delivering channel for their new

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market, so that it can withstand with all kind of barriers in the new market. In this case, the
international logistics will be taken as a main part to increase the production activities. The next
important thing that comes in the international marketing strategy is the promotional activity in
the approaching market. Malhotra et al. (2013) mentioned that the customer’s choices and
preferences in the international market are different and promotional should be done according to
this. Therefore, much time and effort should be provided in assessing the preferences and the
cultural evidences, so that these can be placed in the promotional activities. The cultural barriers
may also be a hindrance in this case, which should be sort out while implementing the marketing
strategy for the international market.
Explain and analyze in detail the various international marketing approaches the company
can adopt
According to Czinkota and Ronkainen (2013), for the company Lidl, the best approach for the
international marketing will be the centralized approach, where the company plans for selling
and approaching in the new market while residing in the local market. Here, the decisions for
marketing strategies should be carried out from the UK market, which is the origin of the
company and has a good reputation among the local population of the market. This approach will
evaluate the competency of the products of Lidl, as it has experiences in dealing with multiple
places of the local market. The company must perform with a team, who is experienced in
handling of international marketing and will guide them for approaching in a new country. This
will ensure a proper for of distribution in the new country. The local bias and origination of
barriers will be reduced in that case, which will ensure more swiftness to the business to move
on.
However, the centralized marketing approach will also be helpful for Lidl, as the organisation
has a god reputation in the market. The marketing team in this case, will help to localize the
products in the market, and often it does not require localization. The products of Lidl have a
positive effect in the origin, which means that the approaching by this way will be beneficial for
them and become easier. Felzensztein et al. (2014) mentioned that this will not only help in
making the business in the internal marketing but it will also develop the in-house marketing
capabilities for the organisation. The sales cycle will and marketing will have more control in