Analyzing International Market Expansion for Mackies Crisps

This report analyzes the strategic elements influencing Mackies Crisps' decision to expand internationally. It identifies key environmental factors that necessitate global expansion and evaluates various modes of entry such as licensing and franchising. The role of marketing strategies in gaining competitive advantage is explored, particularly through service ecosystem approaches and relationship management. Risks associated with international business are identified, including cultural and operational challenges, while suggesting measures like employee training to mitigate these risks. Ultimately, the report underscores the importance of strategic planning for successful market entry and sustained growth in new territories.

INTERNATIONAL
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
1- Environmental factors which are responsible for directing an organisation towards the
international market....................................................................................................................1
2- Selecting and assessing the modes of entry............................................................................4
3- Marketing strategies to achieve competitive advantage.........................................................6
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
International marketing is the lifeblood for an organisation who wants to expand globally.
Company needs to use various measures for entering the international market. Mackies Crisps is
the company from Scotland and wants to expand their business in more areas of UK. This
company operates its business in many more countries. They provide different flavours of crisps
to all their customers (Akaka, Vargo and Lusch, 2013). This report includes about the
environmental factors which direct the firm towards international markets. This can be found by
analysing various macro factors. Modes of entry are given by which the organisation can enter
the global market. Marketing strategies are made which will achieve competitive advantage and
will be helpful in setting the position of products in the mind of customers.
1- Environmental factors which are responsible for directing an organisation towards the
international market.
There are many environmental factors which forces the company to be global and expand
their business internationally. Factors which are included in the business environment are as
follows:
 Local producers- Producer which are local for the cited organisation does not bring
innovation in their working style. It reduces the impact of healthy competitions between
the organisation. It makes Mackies Crisp to expand their business in the international
market.
 International producers- Producers who are making the products at the international level
use many types of innovation in their working styles which also increase their
productivity. It attracts other organisations to expand their business at the international
level (Armstrong, Kotler, Harker and Brennan, 2015). It will also increase the revenue of
cited company and will increase their market share.
 Target customers- The cited business is targeting the customers range of young people
who will like to consume different flavours of crisps. These ranges of customers are more
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into eating the food with taste. There are many people in UK who will like to have this
type of food. This makes the cited firm to expand their business in that country.
 Competitors- There is very high level of competition which Mackies Crisps will face
while expanding their business in the international market. There are many companies
who are working in the same field as the cited organisation. Salty dog crisps are the
biggest competition of their products (Paliwoda and Thomas, 2013). They can also face
some competition regarding the stores in which their products will be provided to their
customers. This factor is needed to be handled very carefully if not then company can
faces losses in the terms of international market.
 Political factors- This factor is influenced by the changes in rules and regulations of
government policies. These policies are made to protect and welfare of the public. Trump
being the ruling party in the UK has made many changes in the trade policies and made
many new rules and regulations for the business. There is policy of free trade which
makes all the customer understand about the working of trade in the country (Cateora,
Gilly, and Graham, 2015). This will definitely impact the working of cited organisation
in the international market if not been handled carefully.
 Legal factors- There are many legislations which are made to govern the business
activities. They are made to keep safe and secure environment at the workplace. This
makes the cited company to adopt all the changes which are enforced on them in
accordance with all the legislation. Every country has different legislation to be followed
in the working style of business. Mackies crisp will have to follow all the legislations of
countries in which they had expanded their business. UK has many legislations regarding
the employment. This makes all the employees working in country feel safe and secure.
 Economic factors- These are the factors which are never certain. They change when
situation changes in the country (Nahavandi, 2016). Currently the economy of the
company is growing because of the working of small businesses. It is the news that in
recent years UK will leave the membership of EU. It will also affect the economy of the
country. The cited firm will have to face many problems regarding the uncertain
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economy for doing the international market. All the countries in which the company
works will have different economic conditions which they have to handle by using all
their strengths.
 Cultural factors- Every country have different culture which are followed in their
environment. The company who is thinking of expanding their business in international
market should first understand cultural factors of the country (Cavusgil and etal., 2014).
This makes them to easily set the precise target customer and makes them satisfied with
their products and services. Mackies Crisps very well understands all the factors relating
to the culture of UK. The people of this country does not fear from demanding something
new from the company which will make them satisfied. In the current culture the
consumers demand healthy products from the organisation.
There are many types of middle man who are involved in the process of product getting
from the producer to the end user. This process mainly contains the three stages which are as
follows:
 Manufacturers- They are the one who produces the products.
 Retailers- They are the one who sale the products of producers in their stores.
 Consumers- At last the person who consumes the product of company.
Middleman in the process of reaching the good to consumer makes it too long. It can be
resolved if the company directly provide their product. The Mackies Crisps have no middleman
included in their business. They sale their product directly to their customers in their own stores.
They had made many stores in different countries (Morschett, Schramm-Klein and Zentes,
2015). The cited company is planning to make store in UK for directly and easily reaching their
target customers.
Barriers to trade
Trade barriers are the one who stops the organisation to efficiently perform their business
activities. There are no such important trade barriers in UK which will affect the cited company
to perform their business activities. Barriers which exist are related to the regulations of EU.
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They can be handled by using various types of measures like attracting more and more customers
towards them.
2- Selecting and assessing the modes of entry.
Selecting and assessing the modes of entry is very important and are necessarily to be
considered in the evaluation of environmental factors in the international marketing environment.
Proper research should be done for selecting the best mode of entry for the cited company. It will
make the organisation to select the best which will be very beneficial for them to expand their
business in the international market.
There are many modes of entry which by which company can expand their business in
UK. But at first they need to properly understand culture of country (Choi andYeniyurt, 2015).
They need to select their precise target customers who will like and buy their products and
services. This will make them know that what mode of entry will be best for them in expanding
their business.
Modes of entry for Mackies Crisps in UK and expand their business are as follows:
 Joint ventures- This is the process in which the company gets merged with other
company to reach their objectives in better way. By using this measure the company can
enter in the international market by which they can expand their business. This process
needs proper research to be done for selecting the best with who the cited company can
merge. The company needs to take proper precautions for handling the joint venture
process. They have to do proper study of the company with whom they are going to
merge. Handling this process very carefully will give the best results to Mackies Crisps.
They need to work very hard to get the best results from the joint venture. The business
which they are going to select should be very popular because only it will attract more
and more customers towards them (Majaro, 2013). Selecting that organisation for merger
which is having very strong customer range will help the cited company to expand their
business in very effective way.
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 Licensing- Now the companies have very different rules and regulations for giving
license to foreign companies to work. Process of licensing is very complex because it
contains many formalities. The cited business who wants to expand their business in UK
should work on maintaining healthy relationship with the government to easily get the
license of working. This will help Mackies Crisps to easily handle the licensing process
and they will effectively manage expanding their business (Papadopoulos and Heslop,
2014). By getting the license for entering the country and do business activities will be
effectively performed.
 Franchising- It is very beneficial method for the cited firm to expand their business in
UK. It means giving the small part of the business to be handled by other owners. This
also increases the market share of company. It is very beneficial from other modes of
entry in the international market. There are many advantages of franchising which makes
the business to be expanded in effective and efficient way. By using this process the
company will get many benefits like they will have to low risks in the political
environment, their cost will be reduced, they will gain different types of trade benefits, it
will also bring much needed investment from the persons who are interested in opening
the franchise of organisation (Czinkota and Ronkainen, 2013). On the other hand there
are many disadvantages of franchising too. It can be difficult for the sub-owner to control
the franchise business. Many legal conflicts can be raised because of this. Proper and
regular check is necessary on the activities of franchise to understand the level of
performance. Franchiser can take the advantage of company in the future when the
business will be fully expanded.
These are some modes of entry from which Mackies Crisps can select for expanding their
business in UK. Franchising will be the best method for them if handled carefully. This will
bring investments and will also increase their market share. They need to do proper research and
chose the best franchiser place. It is needed because by this company will be able to give the
effective performance and expand their business in better way. Between many other modes of
entry franchising will be best for the cited company. By entering the market of UK the company
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have many advantages like, it will increase their revenue. It will attract more and more customers
towards them. Increase in the market share will be ensured by the franchising process.
This states that every mode of entry in the international market needs proper research to
be done. It will be helpful for them to expand their business by considering all the factors of
environmental conditions in UK (Hoppner and Griffith, 2015). Selected method will also need
proper care it also has many disadvantages. Not taking care properly will make the company to
face many issues which will be uncontrollable.
3- Marketing strategies to achieve competitive advantage.
Marketing strategy in simple words can be describe as different tactics and planning that
can help firm in achieving their fundamental goals. The main goals of ….... is to expand is
business and enter in international market (Demangeot, Broderick and Craig, 2015). The
different ways through which it can enter the market has already been discussed along with its
pros and cons. After this its necessary of the firm to understand the need of market that and
consumer trend so that they can produce the products that can meet the demand of the
consumers. In order to do so the first thing that firm has to do is to identify their target market.
STP, segmentation targeting and positioning are few of the ways through which the firm can
target its audience. The firm is known for its crispy snakes. It will be better of the firm to target
the audience that is consisted of young generation that are always ready for snack. After that the
firm can adopt Marketing Mix in their working which focuses on the four Ps that is price,
product, place, people. On the basis of this the firm can select the best price that can attract the
customer and can provide them with profit. Along with this they can select best distribution place
that can provide them with great visibility and can create awareness among the people. After
this firm can use the best promotional tactics that increase their sell.
There are many marketing strategies which can be made for the company to achieve the
competitive advantage.
 Promotion- The cited company can promote their products in various fields. Like TV,
print media.
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 Innovation- Mackies Crisp can bring innovation in their working style to sustain in the
international market.
 New technologies- New and better technologies can be brought to gain success for the
expanded business.
Risk in expanding a business internationally
There are various risk related to the expansion of a business in the global market or expanding
the organisation internationally (Fletcher and Crawford, 2013). There are various challenges an
organisation needs to face while growing their business at an international level. There are many
elements or factors which affect the growth and expansion of a business.
 The crime rate in various countries
 The laws and regulations imposed in the various countries.
 The differences in the countries economy
 The labour cost.
 The Availability of resources.
 Culture and belief of the people
The Changes in all the above factors have a major impact on the business operations of the
organisations. The culture and views plays an important role in the organisation's business and
expansion, the people's culture decides the sales and success of the organisation. Additionally, it
is highly recommended locating to an area where a government entity is nearby and then get to
know the key officials. Business associations that are in the region are also important so that
company can learn from other business leaders about operating in the market and what threats
exist.
Risks can be eliminated by various measures
 Proper training- Mackies Crisps can give proper training to their employees to give better
performance in the international market and expand the business in better way (Ford and
Leonidou, 2013).
 Maintaining better relationship- It will help the company to work better and expand their
business effectively.
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CONCLUSION
This report concludes about various environmental factors which forces the company to
expand their business in the international market. There are many modes of entry through the
company can enter the new market which can be licensing, franchising etc. marketing strategy is
given which will give competitive advantage to the company. Many risks are involved in the
process which can be resolved by taking various measures.
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REFERENCES
Books and Journals
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Cavusgil and etal., 2014. International business. Pearson Australia.
Choi, J. and Yeniyurt, S., 2015. Contingency distance factors and international research and
development (R&D), marketing, and manufacturing alliance formations. International
Business Review, 24(6), pp.1061-1071.
Czinkota, M. R. and Ronkainen, I. A., 2013. International marketing. Cengage Learning.
Demangeot, C., Broderick, A.J. and Craig, C.S., 2015. Multicultural marketplaces: new territory
for international marketing and consumer research. International Marketing Review, 32(2),
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Fletcher, R. and Crawford, H., 2013. International marketing: an Asia-Pacific perspective.
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Ford, D. and Leonidou, L. C., 2013. Research Developments in Interna-tional Marketing. New
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Majaro, S., 2013. International Marketing (RLE International Business): A Strategic Approach
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Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Strategic international management.
Springer.
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Nahavandi, A., 2016. The Art and Science of Leadership -Global Edition. Pearson.
Paliwoda, S. and Thomas, M., 2013. International marketing. Routledge.
Papadopoulos, N. and Heslop, L. A., 2014. Product-country images: Impact and role in
international marketing. Routledge.
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