International Marketing Strategies for Pure Planet's Expansion

This report provides an in-depth analysis of international marketing strategies for Pure Planet, a UK-based renewable energy supplier aiming for global expansion. It begins with an introduction to international marketing, defining its scope and key concepts, and then explains Pure Planet's rationale for internationalization. The report covers market entry routes like exporting, licensing, franchising, and joint ventures. It then details the criteria and selection processes for choosing international markets, including market and environmental analysis, competition analysis, and demand assessment. The report also explores various market entry strategies such as turnkey projects and joint ventures, outlining their advantages and disadvantages. Furthermore, it delves into the global versus local debate, examining how product, price, promotion, and distribution strategies differ across international contexts. Finally, it analyzes international marketing approaches Pure Planet can adopt, compares home and international orientations, and assesses competitor implications.

International
Marketing
1

Table of Contents
INTRODUCTION...............................................................................................................3
LO 1...................................................................................................................................3
P1 Scope and key concepts of international marketing................................................3
P2 Rationale for it to want to market internationally and describe the various routes to
market the organisation can adopt................................................................................4
LO 2 ..................................................................................................................................6
P3 Key criteria and selection process to use when considering which international
market to enter...............................................................................................................6
P4 Explain the different market entry strategies, including the advantages and
disadvantages of each, using examples.......................................................................7
LO 3...................................................................................................................................8
P5 Overview of the key arguments in the global versus local debate..........................8
P6 How the product, price, pricing and promotional distribution approach differs in a
variety of international contexts.....................................................................................9
LO 4.................................................................................................................................11
P7 Explain and analyse the various international marketing approaches your client
organisation can adopt................................................................................................11
P8 Compare home and international orientation and ways to assess competitors,
outlining the implications of each approach................................................................12
CONCLUSION.................................................................................................................13
REFERENCES................................................................................................................15
2

INTRODUCTION
International marketing is referred to the performance of the business activities of
an organisation that are basically designed in order to plan, price as well as monitor the
flow of products and services of the company to the end users in different countries in
order to generate profit. International marketing is important because it creates healthy
competition among organisations and also help in increasing the overall living standards
of people who live in different countries (Azoulay and Al-Maghribi, 2019). This way the
customers get an access to high quality products at affordable rates. Organisation
chosen for this report is Pure Planet, which is a supplier of renewable energy based in
the United Kingdom. The company was established in the year 2006 and aims to make
renewable energy available to everyone at affordable prices (About Pure Planet, 2020).
The company has decided to expand its business operations and go international. The
report explains the scope as well as key concepts of international marketing along with
the key criteria and selection process to use while considering entering an international
market. The report also explains the various international marketing approaches that the
company can adopt along with a comparison of home and international ways to assess
competition.
LO 1
P1 Scope and key concepts of international marketing
International marketing is basically concerned with buying as well as selling of
goods across different countries. It deals with identifying and understanding the needs
of consumers internationally and satisfying the same in an effective manner
(Bamberger, Bronshtein and Yemini, 2020). It is also referred to as global marketing
and has gained a lot of scope in modern times. No organisation can survive in an
international market if it lacks an effective internal marketing plan. But, globalisation has
made it possible for the organisation in different countries to conduct their business
activities in an effective manner. This is because it has the world an open market for
organisations to conduct their business operations in. this means that the scope of
international market has grown tremendously when compared to the past decade. Pure
3

planet wants to expand its business operations in different parts of the world. For this, it
is important for it to have an effective and strong market plan.
Also, global markets reduce any kind of risks within a particular market place but
rather open various opportunities for an organisation. This is because sometimes,
manufacturing of products in a particular market is much more effective than
manufacturing the same products in a separate market (Basiji and et. al., 2020). There
are certain key concepts of international marketing, market segmentation being one of
them. This is because there can be some products that are needed by only a particular
part of a large population. This is when market segmentation comes into picture and
helps an organisation to focus on that particular segment of customers within the
market. Another concept is having an idea about what customers need and prefer. If the
respective organisation, Pure Planet will effectively understand the needs of the
customers in different countries, it will be able to satisfy the same and attract a greater
number of potential customers.
Other concepts of international marketing include benefits of the products and
their value to the customers. Organisations that operate or decide to expand their
respective businesses internationally, should pay focus on the products as well as the
benefits they offer to the customers. This is because customers pay a lot of focus on the
benefits that they receive after purchasing a particular products from a company. If a
product offers high value, it is of more value to them and vice versa. Thus, these are
some key concepts and scope of international marketing.
P2 Rationale for it to want to market internationally and describe the various routes to
market the organisation can adopt
Pure Planet is a private company that supplies renewable energy and has
decided to market its products internationally (Blythe and Martin, 2019). The primary
rationale of the respective company to market internationally is that it wants to expand
and grow its business operations in different countries. This is because there are
various benefits of marketing internationally like the company will be able to generate
more profit and revenues. Apart from this, it will get an opportunity to compete with
other companies that operate internationally for sales. Apart from this, Pure Planet
wants to gain access to various new investment opportunities, so it has decided to
4

market internationally. Also, the company will be able to reduce any kinds of
unnecessary costs and recruit new candidates that are qualified and have relevant
experience.
There are various international marketing routes that are available which Pure
Planet can adopt. The same are described below -
Exporting – It can be defined as the direct sale of goods or services by an
organisation operating in a country in another country (Cateora and et. al., 2020). This
is one of the best-known and widely used used routes by organisations to enter an
international market. Pure Planet can adopt this route because it is not only cost-
effective, but also involves the lowest risk. But, the increasing costs of transportation
can lead to an increase in the cost of exporting.
Licensing – This is another entry route available to an organisation to
international markets. It involves the licensee paying paying a certain amount of fees to
the licensor in order to receive the right to use their property. The amount of investment
involved in licensing is very less and can lead to providing a high ROI to the licensee.
Although, the licensee has to take care of the costs associated with manufacturing as
well as marketing in the foreign market.
Franchising – This particular route of entering an international market is
somewhat similar to licensing wherein the rights of an intellectual property are sold to a
franchisee (Crick, Crick and Chaudhry, 2020). But the rules meant for the franchisee
are much more strict. For example, the franchisee is responsible for following certain
processes or certain components to be used in the manufacturing of the products.
Joint Venture – a joint venture is when two companies come together and
establish a business that is owned by both of them (How to enter a foreign market,
2020). One of the companies is a local business and there are various benefits of the
new business like it provides and access to a new market as well as distribution
networks to both the companies along with an increased capacity.
5

LO 2
P3 Key criteria and selection process to use when considering which international
market to enter
There are various criteria as well as selection processes that an organisation can
use while considering which international market to enter (Hollensen, 2019). The
company should carry out an in depth market as well as environmental analysis of the
market that it decides to expand. This includes analysing the various variables that are
available like GDP growth of the nation, various political factors, country risk etc. the
GDP growth of the company should involve the overall growth prospects of the country
that are related to infrastructure as well as demand for products among tourists. On the
other hand, country risk as well as political factors can include social or political unrest,
the degree up to which there is a political intervention in the decision making process of
the businesses, trade agreements as well as political stability. There can also be certain
other criteria like geographic proximity and devaluations in the currency.
An organisation should also conduct an analysis of competition in the different
international markets. This can include identifying the primary competitors and
analysing their overall performance along with strategies. Competitive analysis can also
include an analysis of the annual sales of the competitors and other factors like pricing
strategies,distribution channels, financial position as well as their plans for expansion.
Distribution channel is another key criteria that should be taken into consideration
because it determines the way in which respective company will expand within a new
international market of its choice. Pure planet can take into consideration a number of
possible distribution channels available (Hosseini and et. al., 2019). This can include
hiring a local distributor within the target market, conducting international distribution
from its existing market in the UK, online through internet etc. Demand is another
criteria that should be included in the selection process. It is important for the respective
company, Pure Planet to analyse the current as well as potential demand within the new
market. It is important to conduct a further detailed analysis as well.
Test marketing also plays an important role wherein the potential market is tested
on a relatively small scale. In this, the company will have to launch its product or service
in a small part of the large market. This will allow the company to gain insights about the
6

demand as well as supply of similar products in that market. The potential international
markets that can be profitable for the company should be listed and then evaluated.
This will help the company in selecting the international markets that are most suited for
its products and services. The best market can be chosen easily as it will ensured that
the products of the company are valued high by the customers.
P4 Explain the different market entry strategies, including the advantages and
disadvantages of each, using examples
There are various market entry strategies that are available to an organisation
and can help it in expansing business operations internationally (Kingsnorth, 2019).
They are beneficial for an organisation because they allow it to target a new market and
thus increase overall profitability. Some of the marketing strategies along with their
advantages and disadvantages and examples are explained below - Turnkey Projects – A turnkey project can be defined as a contract that wherein
a company agrees to design, construct and fully equip a business, manufacturing
or service facility and then turn that project over to the company that had earlier
paid for the same when it is ready to be operated.
◦ Advantages: One of the major advantages of a turnkey project is that it
reduces or sometimes eliminates the burden of a company to manage and
supervise the project. For example, the overall cost overruns are also
reduced.
◦ Disadvantages: The disadvantages of a turnkey project involve limited
involvement of the client and the budget might be higher than it is necessary
(Kotabe and Helsen, 2020). This is because sometimes a turn key contractor
can generate a project that is higher than required. Joint Ventures – A joint venture can be defined as a business entity that is
formed when two companies come together and form a new business wherein
the returns, risks as well as governance is shared among the companies.
◦ Advantages: A joint venture can provide the opportunity to gain new expertise
as well as insights about the market. Also, it provides an access to better
resources so that operations can be conducted in an effective manner.
7

◦ Disadvantages: The degree of flexibility between the two companies in a joint
venture is restricted. Apart from this, the objectives of a joint venture are not
completely clear but vague (12 Advantages and Disadvantages of a Joint
Venture, 2019). This can lead to the companies suffering in their business
processes. Partnering – It can be defined as the process of developing long-term, strategic
and successful relationships between customers as well as suppliers. This is also
one of the most opted strategies for market entry in an international market.
◦ Advantages: There are managements of two companies that overlook and
monitor the performance of a company within the new market (Kubacki and
Szablewska, 2019). For example, an increased amount of capital is available
for the business to conduct its business activities in an effective manner. Also,
the degree of any kind of interference of an external regulation is limited.
◦ Disadvantages: Each partner company is equally liable for the debts of the
partnership and if the partners decide to leave, it will require a valuation of the
assets of partnership.
The company should enter the international market because it will not only
contribute to its overall profitability but also ensure the expansions and growth of
business operations.
LO 3
P5 Overview of the key arguments in the global versus local debate
The world today is globalising increasingly and organisations aim to increase
their profitability as well as enhance their business performance by operating globally. In
order to do this in an effective and efficient manner, there are many strategies that they
can adopt (Rust, 2020). But still, they can come across various challenges like difficulty
in understanding preferences and needs of customers in different international markets
etc. global marketing can be referred to as the process wherein an organisation adjusts
its various marketing strategies in order to adapt to the existing market conditions of
other countries. Today, global marketing has gained importance because it allows the
customers all over the world to remain updated and better informed about the products
8

as well as services that are offered by a company. For example, Pure Planet can use
various methods as well as implement strategies like social media marketing and email
marketing in order to reach out to a larger base of customers.
There are many benefits of global marketing like it can contribute to the overall
effectiveness of the product as well as services. Apart from this, the company can gain
a competitive advantage in the international market and attract a greater number of
potential customers because they will be aware of the brand as well as the products and
services that are offered by it (Samiee and Chirapanda, 2019). Local marketing on the
other hand, can be defined as a marketing strategy that targets customers in a local
region like a city. This type of marketing is usually used by small businesses in order to
conserve their resources and reaching the customers by closely gaining an
understanding about their needs as well as preferences. Local marketing is important
because it can allow a small business to attract potential customers. There are various
benefits of adopting a local marketing strategy like increase in overall sales as well as
awareness among local customers, strong valuable connections with them etc.
Local marketing allows an organisation to reach a target audience within its local
market. For example, if an organisation providing services related to renewable energy
decides to operate locally, it will be able to build strong meaningful relationships with the
customers. This will lead to the company gaining their loyal and trust and as a result,
the overall profitability as well as revenues of the firm will increase (Sheth, 2020). Apart
from this, it will also gain a lot of positive reviews because the customers will be
satisfied with the services that are offered to them. Therefore, both global as well as
local marketing have their own advantages and disadvantages and an organisation can
choose whichever it likes based on the market that it wants to operate in.
P6 How the product, price, pricing and promotional distribution approach differs in a
variety of international contexts
When introducing products and services in international market, each and every
organisation carrying out different strategies. These practices assist them to manage
business activities in effective manner. All these approaches are based on customer’s
requirement and needs for which organisation implements different variation in their
business practices. In this context, main objectives of organisation has to be create a
9

desired sustainability in target market by creating a desired customer base. For each
country, a company applies a separate marketing strategy on the basis of need and
preferences of target customers. This a standardized approach of a business which are
based on market analysis practices. The variation in product, price, place and
promotional practices re determined below as:
Product: While introducing products in different countries, an organisation
implements adjustment in its properties based on prevailing conditions of the target
market. Changes that firm taking into consideration at the time of internationalized their
business is based on customer’s cultural background, buying habits, level of personal
disposable income, culture, religion and so on (Stekelorum, Laguir and Elbaz, 2020). At
this time, firm implements product and marketing mix strategy that can assist them to
analyze consumer buying behavior in order to effectively represent their services.
Purchasing practices also varies on the weather of different countries according to
which firm introduce their services to their target audience.
Price: This can be a complex task for an organisation to take traditional pricing
method into consideration in international market. At this stage, firm consider additional
factors while setting cost of their products as tariffs, exchange rate, transportation cost,
value of current and so on. For this, firm implement changes in their pricing policies on
the basis of disposable income of individual’s. Hereby, pricing policies of firm have to be
competitive that can that can reduce level of competition for a firm. In this context,
general economic situation of the country also influences pricing practices of firm.
Place: This element determine distribution practices of firm which are based on
geographical values of a country (Strizhakova and Coulter, 2019). Place mix determine
the common places on which distribution of goods and services involved via
manufacture to distribute. In this regard it is required for na organization to analyses
most common platform through which they can easily sale their services to direct
customers. This decision of firm requires to be based on common places that influence
effectiveness of distribution chain. In this regard firm requires to create an effective
distribution strategy for each country through which they can gain a desired profit
margin easily.
10

Promotion: This is a most common aspect that taking consideration by
different firm in order to introduce their product and services in target market. For this,
organization implement several strategies in order to promote their products and
services in front of target audience. The strategy of firm needs to be effective that
requires to base on different promotional channel on which customers spend their
maximum time to purchase different products and services. On this, organization can
promote their products to direct customers.
LO 4
P7 Explain and analyse the various international marketing approaches your client
organisation can adopt
There are two types of international marketing approaches, centralized as well as
decentralized approach that the respective organisation, Pure Planet can adopt. Both
the approaches are explained below -
Centralized Approach – In this type of approach, the marketing team of an
organisation at the headquarters is responsible for making most of the decisions relating
to marketing. This approach is the most effective when the marketing department of the
organisation is very competent and is experienced with in different international markets
(Azoulay and Al-Maghribi, 2019). Most of the products of the company in this approach
are sold through direct export. The marketing materials of the company require very
little or no localisation. If a company adopts this approach, it will have to focus on
marketing capabilities that are developed in house because it will have more control on
the marketing cycle.
Decentralized Approach – In a decentralized approach, decisions as well as
marketing functions are pushed into the market. A strong market bias is there in this
type of approach. Apart from this, the marketing team of the company is not very highly
trained and the availability of the resources is also limited. The approach works best
when the products are present in industries that are heavily regulated (Bamberger,
Bronshtein and Yemini, 2020). The focus of this approach is basically on motivating and
supporting the local marketing strategy. If an organisation adopts this approach, it will
have to build strong relationships with the local marketing representatives of the region.
11

Therefore, the best international marketing approach that Pure planet can adopt
is the centralized approach. This is because it has decided to expand its business and
market its products internationally to different countries.
P8 Compare home and international orientation and ways to assess competitors,
outlining the implications of each approach
Home Vs International orientation with their ways to assess competitors
Home orientation can be regarded as a approach where a entity is having focus
on the market and they assume that all goods & services if have achieved higher
popularity in domestic market then it is going to succeed in other foreign markets also
(Mbazira, , 2019).
Ways of assessing competitors: Home orientation is a approach that is related
with power of rivals and nor causing any damage to a entity's reputation. Home
orientation is used for developing confidence in services and products that are offered
by a organisation if threat of competitors is low (Lewis, 2017). Pure planet is a UK forts
digital energy supplier and they have a aim to revolutionise the markets of UK by
supplying the renewable sources of power.
International orientation: It is a approach that is in the assumption that there
can be differences and similarities among various markets that can be easily spread
across different boundaries.
Ways of assessing competitors: International orientation is a approach that
can be perceived by compositors threat is low and they posses a willingness to decline
the present market position & goodwill in the global scenario.
Porters five forces
It is a model that can be sued for the purpose of making assessment of the
external business environment of a organisation.
Threat of New Entrants: Pure planet is a organisation that is based on a belief
that it is UK's first energy supplier and has a aim of revolutionise the markets of UK by
supplying the renewable power to the consumers at low cost (Bensecilas, , Ombuiand
Iravo, 2016). They are first digital energy suppliers but there is a threat that now more
start ups based on similar business idea can emerge in UK and Pure planet has to
12