International Marketing Report: Ma Baker's Market Expansion

This report provides a comprehensive analysis of international marketing strategies for Ma Baker, a micro bakery. It begins with an overview of international marketing concepts and scope, followed by an analysis of Ma Baker's rationale for international expansion, exploring both direct and indirect routes to market. The report then evaluates market entry criteria, entry strategies, and the global versus local debate, making recommendations for Ma Baker's approach. It also investigates the adaptation of the marketing mix (product, price, promotion, and distribution) in different international contexts. Furthermore, the report examines various international marketing approaches and competitor analysis, offering recommendations for how Ma Baker should operate in an international context. Finally, it compares home and international orientations and methods for competitor analysis, outlining the implications of each. The report concludes with a summary of findings and recommendations to guide Ma Baker's international marketing endeavors.

International
Marketing
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Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Analyse the scope & key concepts of international marketing ........................................4
P2 Explain the rationale for it to want to market internationally and describe the various
routes to market the organisation can.....................................................................................6
M1 Evaluate the opportunities and challenges that marketing internationally presents to your
chosen client organisation......................................................................................................8
TASK 2............................................................................................................................................9
P3 Evaluate the key criteria and selection process to use when considering which international
market to enter........................................................................................................................9
P4 Explain, using examples, the different market entry strategies, including the advantages
and disadvantages of each ...................................................................................................10
M2 Apply the market evaluation criteria and entry strategies, and make recommendations for
your chosen client organisation............................................................................................12
TASK 3..........................................................................................................................................13
P5 Present an overview of the key arguments in the global versus local debate.................13
M3 Evaluate the context and circumstances in which your client organization should adopt a
global or local approach, highlighting the implications of doing so. ..................................15
P6 Investigate how the product, price, pricing and promotional distribution approach differs in
a variety of international contexts........................................................................................15
M4 Determine and articulate in detail how to adapt the marketing mix of your client
organization in different international markets....................................................................16
TASK 4..........................................................................................................................................16
P7 Explain and analyse the various international marketing approaches your client
organisation can adopt..........................................................................................................16
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..................................................................................................................................17
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P8 Compare home & international orientation and methods to measure competitors, outlining
the implications of each approach........................................................................................17
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19
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INTRODUCTION
International marketing define as a procedure where different types of marketing
principles are applied at international level in order to fulfil the requirements as well as needs of
individuals living in different countries. With the assistance of international marketing
organisation will be able to perform their task in an effective manner and attract lot of customers
towards their business organisation. Apart from this, it has also been said that international
marketing highly focused on the business expansion with the help of developed strategies and
policies. It is one of the most effective method which is used by large number of companies in
order to expand their business functions, market share as well as profitability at the competitive
marketplace(Surugiu and Surugiu, 2015). Ma Baker is chosen as the base company in this report
and it is mainly a micro bakery located in the middle of Fulham, London. In this report various
topics are going to be covered which consists of concept & scope of global marketing, various
opportunities and challenges which is associated with this context. Along with this various routes
of business expansions and difference between local and international marketing are discussed in
this report. Apart from this, different entry strategies used by organisations as well as
recommendations to the company are explained in detail in this report.
TASK 1
P1 Analyse the scope & key concepts of international marketing
As per the view point of Czinkota and Ronkainen (2013), international marketing consist
of various procedures, activities as well as institutions which is located across the country border
tends to develop, exchange and communicate different offerings which hold effective values for
the stakeholders and society.
According to Armstrong and et. al. (2015), it has been said that international marketing
defines as the application of different marketing capabilities at international business
organisation.
As per the opinion of Akaka, Vargo and Lusch (2013), it is said that international
marketing is defined as a set of various activities where exchange of goods and services satisfy
the requirements of customers across the country border.
Scope
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Generally, international marketing is defined as performance of business entity where
large number of commodities and services of an organization is transferring from one nation to
another in order to earn more profit. In today's competitive and modern environment it is one of
the most wide and used concept which is increasing its awareness in the corporate world in a
positive manner. has a vast scope owing to the increasing awareness about globalisation within
corporate world. International marketing have various scope which are going to be discussed as
follows:
Imports: It is consider as one of the most significant form of international marketing in
which companies import some specific goods from a country and then sell those products to their
customers within local market area. Apart from this sometimes organisation take help from this
source in order to create or innovate new product so that they can expand their current product
line. This is considered as most essential form which assist the whole organization in a positive
manner.
Exports: Here in this factor, organization export raw material, semi finished as well as
finished goods to the companies across national borders so that they can generate more
profitability and opportunities to sell there products at global level. This as a result help in
generating more sales and grab large number of market share at international level. It is the
process mostly used by organization so that they can earn profit and use them for doing their
export payment, covering all the cost which is associated with the development of product.
Contractual Agreements: According to this factor, business entity will expand their
functionality by entering into an agreement or contract with their partners located across the
country border. With the help of contractual agreement, organisations will be able to perform
their sales volume, customer base, market share as well as profit margin at the competitive and
international market place(Rosson and Ford, 2016).
Fully owned manufacturing: As per this approach, a business entity which have there
interest in order to expand their business functions can establish their own manufacturing
facilities at global level. For this, there must be effective strategies and policies so that activities
of business can be performed in an appropriate manner. There are various elements which
consist of different cost, governmental regulations and policies which might encourage the
organization in order to set their manufacturing across national borders so that they gain more
profitability and growth opportunities.
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Key Concepts
There are ample number of concepts which are associated with global and international
marketing. Some of these concepts are going to be discussed as follows:-
National Marketing: According to this concept, targeted customers are those who are
available at the home country. Pure local business organisation perform their business functions
only at local market and do not have any kind of intentions to expand their business functions.
Their main motive is to earn money and not to develop their brand image at international
marketplace. Such type of businesses are performed within the domestic region.
Comparative Marketing: It is said that when a large number of marketing systems
studied together in order to examine the common and different things lies between them are
known as comparative marketing. It is one of the most effective method where two or more
organisations analyse their similarities as well as differences in an effective and appropriate
manner.
International Trade: It is generally related with the flow or transportation of goods and
services from one country to another. Main aim behind such business entity is to earn more
profitability and to capture large number of market share. This as a result enhance the overall
economics system of the nation(Richter and et. al., 2016).
P2 Explain the rationale for it to want to market internationally and describe the various routes to
market the organisation can
In the context of present business entity which is Ma Baker well-known within the
market of UK as they deals in home made, real and fresh Bread. It is a micro bakery located at
the centre of Fulham, London where they provide healthy and fresh products to their customers.
Ma Baker is an organization which is gaining recognition and various awards on a regular
basis within their home country. After getting various positive response at the domestic market,
owner of Ma Bakers decides to expand their functionality at international level. This will
definitely provide different opportunities to the organization along with difficulties and threats. It
is essential for the present business organisation to do their business expansion as it will enhance
their current customers base along with profitability as well as market share. When Ma Baker
enter into global marketplace it will create various advantages for the company as they grab
attention of large number of customers towards them by opening attractive outlet of the
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organization. Along with this, company will develop positive brand image of the entity at the
marketplace which enhance the overall profitability of the company in an effective and positive
manner.
Furthermore, after entering into the global marketplace company has to face various risk
which is associated with the marketplace. All these risk might reduce the overall sales,
profitability as well as market share of the company. For example: If Ma Bakers provide high
quality products to their local customers within affordable price they will be able to grab a large
number of market portion at the marketplace. Therefore, Ma Bakers decides to do business
expansion in order to enhance their profitability and increase their market share at global level.
Along with this, they can innovate new and attractive products after examining their customers
requirements and demands. Therefore it is very essential for the owner of Ma Baker to expand
their business at global level which provides them various opportunities(Martin and Javalgi,
2016).
Routes to market internationally and recommendation
A business organisation can expand their functions at international marketplace in
order to attract large number of customers by selling them high quality service and goods. In this
context, Ma Baker create and provides breads which can easily be preserved for long-time and
does not includes any kind of chemicals and are totally organic. They use high quality and
organic raw material for preparing breads and other bakery products. Therefore, in order to do
maker internationally, there are two routes considered by the company. These methods are going
to be discussed as follows:-
Direct Route: It consists of all those networks where the business entity directly comes
in front of individuals at global market place so that they can make them purchase goods and
services sold by the organization(Katsikeas and et. al., 2016). In the present context, Ma Baker
have the ability to adopt channels which includes organising exhibitions and trade shows, sales
representative, distribution of catalogues through email, offering website deliveries so that they
can make direct contact with their customers. Along with this, they can create good reputation at
the marketplace and retain their customers for a long period of time by providing them high
quality products.
Indirect Route: According to this method, company enter into an agreement with third
party and provide them all the authority and responsibilities in order to attract customer towards
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them. In reference to Ma Baker, it has been considered that they can adopt channels such as
Channel partner, Alliance partners, OEM partners, and many more so that they can grab
attention of large number of customers at international marketplace. Some of the most significant
methods are going to be discussed as follows:-
Alliance Partners: Such type of groups are considered as relatively small in size but
have the power to influence their customers at competitive marketplace. In the present context of
Ma Baker this method is quite effective as it possess the ability to advise them about their
business initiatives and make an influential as well as strong entry at international market.
Channel Partners: It is the type of organisations which includes technical expertise
who have the capability to influence customers and enhance their knowledge about the offering
of organization (Indirect Routes to Market, 2016). It includes distribution partners, resellers and
value-added resellers along with this major players within this industry where Ma Baker can
easily enter into an agreement with Insight, CDW, Optiv, Carahsoft and many more(Jean. and
et. al., 2016 ).
It has-been recommended to the Ma Baker that they should opt channel partner asit the
channel which includes expertise personnel who have sound knowledge about current
technologies and techniques involved in this business sector. Therefore, they can easily suggest
and provide knowledge about the equipment’s that will enhance the working of bakery and will
be able to beat the competition within the industry.
M1 Evaluate the opportunities and challenges that marketing internationally presents to your
chosen client organisation
It has been analysed that while performing business function at international level,
company face both challenges as well as opportunities. If talking about opportunities, Ma Baker
will be able to expand their business functions at international marketplace which as a result
increase their overall market share and profitability. On the other hand, if we talked about
challenges faced by organisation while going international, organisation need to hire new and
fresh talent. Along with this, there are large number of competition available at the marketplace
which affects the overall performance of organisation.
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TASK 2
P3 Evaluate the key criteria and selection process to use when considering which international
market to enter
It has been analysed that market selection plays very crucial role in context of Ma Baker
as it is very essential for the bakery in order to gain success at international market area. Some of
the most important process of selection are going to be discussed as follows:-
Global marketing objective: According to this step, market is being chosen on the base
of an objective that company will attain positive response at international marketplace. It is
necessary to done in order to ensure that ethical, cultural, legal, economical as well as religious
values of a country is not violated by the owner of Ma Baker while offering goods and services
to their customers(Hoppner and Griffith., 2015).
Parameters for selection: There are ample number of parameters which need to be
considered by Ma Baker while they enter at foreign market. Some of these essential parameters
are market situation , trends, infrastructure and materials, governmental regulations, nature of
rivalry and many more.
Preliminary screening: It is required by the owner of Ma Baker to analyse the market
condition as well as needs of customers. Some of these factors includes population size, per
capita income, consumer behaviour, economy structure and many more (Process to select
International market, 2018).
Analysis and Selection: After screening all the factors some markets are short listed for
further evaluation. In such kind of evaluation, feasibility as well as cost benefits are being
analysed. Best and most suitable market is then selected for the expansion of Ma Baker and to
attain positive response at foreign market(Christodoulides, Cadogan, and Veloutsou, 2015).
Test marketing: Herein, organization sells their goods and services in a specific part of
geographical location in order to attain an insight of the behaviour of consumer and response
towards the items offer by Ma Baker.
Commercial Production: Once the outcome of this test is found to be positive and
effective for the company, it is required by the owner of Ma Baker to produce goods in bulk for
performing it’s business function at international market.
Key Criteria
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There are some criteria in order to select geographical location at international
marketplace are going to be discussed as follows:-
Infrastructure facilities: It is essential for the organization to select market on the basis
of available infrastructure facilities so that Ma Baker can produce high quality goods in an
effective manner(Brouthers, Nakos and Dimitratos, 2015).
Laws and Regulations: Managers and owners of Ma Baker has to effectively consider all
the legal rules as well as regulations while performing business functions at international market
so that they can not indulge these laws of selected country.
Ethnocentrism: It refers to a term which is used in social sciences & anthropology in
order to examine the overall act of judging other culture on the basis of their standards and
values. It might includes language, behaviour, religion and customs.
Policentrism: It define as the principle of a company of a specific region across a social,
political as well as financial centres. It has been said that a county is define as polycentric if the
whole population is distinguish among various centres in different parts of a nation or county.
Globalisation: It is the process of integration and interaction between different
individuals, companies, communities and government and so on across the whole wide world. It
includes services, products, goods, technology, resources, data and many more.
P4 Explain, using examples, the different market entry strategies, including the advantages and
disadvantages of each
In order to expand business function at international marketplace there are various types
of entry mode used by organizations. Ample number of methods are used by companies in order
to enter into the global market area(Bianchi and Mathews, 2016). All these methods or ways are
known as market entry strategies which helps business entity in operating their activities in an
effective and appropriate manner. In the present context of Ma Baker, owner of the company
adopt various market entry strategies which are going to be discussed as follows:-
Strategy Sub Types/
Description
Pros Cons
Export
 Major advantage of
this factor is that
entry cost is quite
 Major drawback of
this method is that
profit on the
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With the help of
foreign agent
low in this.
 Financial risk is
moderate in this
factor.
 Agent overcome all
the difficulties of
this entry strategy.
transaction is quite
or low.
 Apart from this
company is unable
to gain experience at
international market
place.
With the assistance of
foreign distributor
 It demands less
staffing
requirements.
 Demands low-cost
of marketing.
 Due to high cost of
transportation it
consists of the con
of this method.
Licensing It defines as sale of
rights and authority
backed up with the
help of patent which
is generally used for
the purpose of
commercial business
at international
marketplace(Beck,
Chapman. and
Palmatier, 2015).
 Benefit of this
method is that entry
cost is low.
 Risk related with
finance is low.
 Owner will get
adequate knowledge
about the market
with the help of
licensee.
 Negative element of
this factor is that
there is lack of
control over the
maintenance of
products quality at
global market.
 There is a threat of
disloyalty which of
licensee among the
owners of
organization.
 Apart from all these
things income level
is quite low which is
generated from
royalties.
Franchising If means sale of  With the help of  One of the biggest
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authority by a local
franchisor in order to
carry out their
commercial business
activities with the
assistance of foreign
franchisee.
this company will
be able to generate
rapid growth at
foreign market
place.
 Apart from this
entry cost is quite
low which is
considered as one
of the biggest
advantage of this
factor.
disadvantage of this
method is that both
foreign franchisee as
well as domestic
franchisor need to
share their profit
margins.
 Apart from this
there may be some
possibility of
disloyalty among
franchisee’s.
After examining and analysing each and every factor it has been concluded that Dubai is
considered as one of the most effective and potential country for Ma Baker’s in order to do their
business expansion. It has been said that Dubai is the country who have very strong economic
system as well as excellent infrastructure and have high quality raw material which assist
business entity in order to produce goods and services according to the requirements of
customers(Baker and Saren, 2016). As a result it will provide various opportunities and high
growth rate to the company so that they can beat the competition level arise at the marketplace.
According to a source it has been estimated that UAE is at 66th rank in context of bakery
products all-over the world. Apart from this, UAE market faced extreme growth from the year
2010 to 2014 as the total sales and value increased to 200,100 tonnes and US$682.9 million. It is
also determined that the growth rate is expected to increase within next few years. Ma Baker will
be able to gain various advantages if they provide healthy and high protein bakery products to
there customers. For this owner need to examine the current market trends and demands of
consumers before expanding business functions at international marketplace. With the help of an
analysis it is concluded that majority of customers within Dubai prefer organic, hand made and
fresh breads. InUAE, bakery sector is continuously increasing at a rate of 7% p.a. which is quite
beneficial for Ma Bakers (Bakery Industries in UAE countries, 2019).
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