International Marketing Strategies for Oak Cash & Carry

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INTERNATIONAL MARKETING
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Table of Contents
Introduction...............................................................................................................................3
LO1............................................................................................................................................3
P1 Analyse the scope and key concepts of international marketing...........................3
P2 Explain the rationale for it to want to market internationally and describe the
various routes to market the organisation can adopt.....................................................4
LO2............................................................................................................................................6
P3 Evaluate the key criteria and selection process to use when considering which
international market to enter..............................................................................................6
P4 Explain, using examples, the different market entry strategies, including the
advantages and disadvantages of each..........................................................................7
LO3............................................................................................................................................9
P5 Present an overview of the key arguments in the global versus local debate.....9
P6 Investigate how the product, price, pricing and promotional distribution
approach differs in a variety of international contexts.................................................10
LO4..........................................................................................................................................12
P7 Explain and analyse the various international marketing approaches your client
organisation can adopt.....................................................................................................12
P8 Compare home and international orientation and ways to assess competitors,
outlining the implications of each approach..................................................................13
Conclusion..............................................................................................................................14
Reference list.........................................................................................................................15

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Introduction
International marketing is implemented by the organisation in order to enhance the
popularity and brand value in global market. Oak Cash & Carry is UK grocery
wholesalers that are operating local business in England UK. It has been found that
the organisation is willing to grow in the global market for rising the sales and profit
level of the business. According to the report, it has been found that 58 employees
are working in the company and it has been able to earn 8.2 million sales in year
2011 (Beta.companieshouse.gov.uk, 2019). Moreover, it is found that company has
been able to satisfy the requirements of the clients by delivering grocery products
such as breads, spices, dairy goods and other food items. Moreover, the company
offers different range of goods in huge amount for the offices, retailers, caterers,
newsagents, licences and other local markets. As the company is planning to move
in the international market, they need to do a research on international marketing for
reducing any negative impacts in business.
The aim of the paper is to evaluate the selection process in international market by
revealing the scope of international marketing. Hence, this study will concentrate on
analysing the international strategies of marketing in order to advise the company to
better techniques.
LO1
P1 Analyse the scope and key concepts of international marketing
The main significance lies in the business of global marketing is development of
brand value and positioning of the company. The opportunities of international
marketing are the chances of export and import in the business. The company gets
scope of selling the products in the international markets that helps in generating
higher revenue. Implementing international marketing, the company gets a chance of
market expansion, customer base expansion and others. The company can get
scope of growing exponentially by involving in contractl agreements with different
overseas partners.
The key concepts of international marketing are mentioned below:
Development of products to satisfy customer: As mentioned by Mathewset al.
(2016), developing products is the main concept in entering in an international
market strategically. Use of this concept would aid the company to meet the growing
demands of the customers and create a positive image in the chosen international
markets.
Expansion of sales: Companies are involved in international marketing for
expanding their sales rate. For example, by implementing international marketing,
Oak Cash & Carry can be able to gain chances of growing popularity of their
products by involving in with more retailers. This would help the firm in gaining more
customers and develop competitive advantage in the market.
Availability of broader market: A wide platform is available for advertising and
marketing of product and services. The market would get a chance of interacting with
wide range of suppliers and customer for implementing better marketing approach.

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This is beneficial for the marketers for increasing profit levels by getting involved in
international marketing.
As mentioned by Kienzlerand Kowalkowski (2017), international marketing is the
process of the business concept for satisfying the varying requirements and
demands of various ranges of people in international regions. The main reasons for
implementing international marketing are increasing the economic sales in business,
developing huge-profit scopes in international market, gaining market share and
increasing brand value of the company. On the contrary, Gomeset al. (2017)
commented that for entering in the global market, organisation requires to using
various strategies such as licensing, franchising, direct investment, joint ventures
and global web strategy. Hence, it can be said that global business marketing is
dependent on the expansion of the local marketing strategy by giving extra attention
to market analysis, targeting and decision-making concepts. Apart from this,
Cacciolatti and Lee (2016) pointed out that international marketing is a way of
multinational planning for implementing the concept of pricing, distribution, idea
promotion, products and services for meeting the needs of individual and objectives
of organisation.
Point of difference between local and domestic market are stated below:
 Local marketing is the production, distribution, promotion, and sales of the
products and services in the national market. On the contrary, international
market is the manufacturing and distribution of the product in the global
market.
 Local marketing is comparatively easier and less risky than international
marketing as it deals with a country that is completely unknown for the
marketer.
 In case of domestic marketing, it is found that organisation is able to have
same policies and strategies according to their wish. However, in global
marketing, the marketers need to implement policies and strategies as per the
regulations of the international government (Cacciolatti and Lee, 2016).
 International marketing is found to be quite challenging and it requires large
commitment and loyalty from the side of company as there is a difference in
law and legislations in international market. However, local marketing only
associated with the rules of the one country.
P2 Explain the rationale for it to want to market internationally and describe
the various routes to market the organisation can adopt
Oak Cash & Carry is a grocery service provider to the retailers and other local
business of UK. However, it is found that the company is willing to enhance their
profit levels in business in order to increase sustainability of business. The company
established in year 2000 has been successfully operating its business in local
market. However, the sales and growth rate of the firm has become stagnant which
has created a major issue in business operation. Moreover, as the competitors of the
firm are increasing at a huge rate in UK, the management team of the firm has
thought of growing their trade in international market (Gomes et al., 2017).
Furthermore, urgency of international marketing has grown for meeting the demands
of the global retailers and supermarkets. As the company is selling unique products
at affordable cost, there is a demand from the global suppliers and customers. As

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these facts, represent that, the major reasons for implementing international
marketing using different routes.
Different routes of international marketing that the company can choose are
exporting, direct investment, licensing, franchising, partnership and others. Using
exporting, the firm can export their products in the global market using agents and
distributers. On the other hand, using partnership strategy, the company can enter in
foreign country without facing any difficulties and challenge in business. Potential
partners would help Oak Cash & Carry in communicating with the global suppliers by
understanding their rules and regulations in business. As mentioned by Samiee et
al., (2015), joint venture is a unique route that is used for gaining financial resources
in the international business. However, licensing is other strategy that can be used
by Oak Cash & Carry business in dealing with the lawyers and government of the
operating country. Gaining a proper licence in business would help the company to
operate business successfully. Licensing is the easiest way for starting international
business as it helps in dealing with the local authorities and political parties without
having any conflict in business implementation.
Therefore, among the discussed international marketing routes, the company needs
to choose the specific strategy after doing a detailed research on these strategies.
The managers of the company need to use the proper strategies in order to balance
the business operations in proper manner.

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LO2
P3 Evaluate the key criteria and selection process to use when considering
which international market to enter
It is important for Oak Cash & Carry to consider different criteria for selecting the
international market that they are going to enter, as this will determine their
increased brand image and sales.
It is extremely important for the organisation to enter into the market by learning
about the demand and the value of the products and services provided to the
customers. This is extremely necessary as this can determine the sales and
profitability of the company and will increase the overall goodwill of the organisation.
It is important for the company to differentiate the cost of the products and services,
according to the needs of the customers, so that the product provided by the
organisation is of proper value to the customers. The company to increase its sales
can use this process (De Mooij, 2018).
The company must learn about value creation, and market research is extremely
necessary for the same. New business ideas and current business insights must be
used by the organisation to create the products and services that suit the customers
in the international market and provide them with multiple values at the same time
(Fatehi et al., 2018). The demand of the customers is different in different countries
as their culture is different; and therefore, the companies cannot use same strategies
if they are going to operate in countries like India, China, France, and Australia. This
is because the cultures of these countries are extremely diverse.
The market research must also focus on the competition in the market, and grocery
companies like the organisation can face extreme competition in every market it
operates in. This can be a result of extreme saturation in the retail market and most
of the companies provide the same type of products and services to the customers.
Therefore, to make their place in the market, it is important for Oak Cash & Carry to
differentiate the products rather than standardizing, so that it becomes easy for the
company to increase the value of the products and services offered, and allow no
substitutes to capture the market (Håkansson and Snehota, 2018). Learning about
the competition is extremely important as entering into a very saturated market can
result in losses, and in turn, can affect the profitability or the consumer base.
The organisation will have to learn about different trade barriers so that the process
of marketing can be done across the borders hassle free. It can be easy for the
company to operate in those countries that provide free trade restrictions as this can
help the organisation in gathering easy investment, reduce legal challenges, and
establish its operations without much aggravation (Ibeh et al., 2019). The company
will have to learn about value delivery and therefore, it will have to research about
the political risks that the organisation can face when operating in the market.
Political risk can negatively affect business operations and the business will have to
establish them, looking at the stability or the political condition of the country. This
will allow lucid operations of the company (Javalgi and La Toya, 2018).

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It will have to consider different aspects like the distribution accessibility and the
position so that it becomes easy for the organisation to carry on its operations in
different parts of the country. Accessibility of distribution includes proper transport
and availability of raw materials and without lucid movement of these processes, the
business operations can be affected negatively (Kowalik and Danik, 2018). Being a
grocery company it can be hard for the organisation to have a good network of
distribution initially. Finally, it is important for the organisation to learn about the
culture of the place and differentiate the products and services according to the local
culture. This can help the organisation to influence the business activities in a
positive and negative manner, and reduce the legal restrictions as much as possible
(Morgan et al., 2018). It is important to learn about the legal environment and the
legal restrictions that can affect the business activities and the organisation can hire
a legal expert to do the same so that the problems can be exterminated and the
business can carry on its operations easily.
P4 Explain, using examples, the different market entry strategies, including the
advantages and disadvantages of each
Some of the common strategies that can be used by Oak Cash & Carry to enter into
the international market are as follows:
Firstly, the organisation can indulge themselves in exporting the goods and services
into the international market and this is one of the simplest tactics that can be used
by the company to establish their operation across the borders. The process is totally
hassle-free and the organisation will have to maintain a good relation with one of the
parties abroad so that they can sell their products and services, a mediator will be
acting as a marketing device for the company (Nes, 2018). This is where the
company will have to create new products and services according to the demand of
the customers abroad, and use this intermediary body to sell the products and
services without taking many hassles for self-marketing (Paul and Mas, 2019).
It is important for the organisation to maintain the prices of the products and services
considering the transportation costs, export costs and other costs that are included in
the same. This process is beneficial for the organisation as this can allow it to use
the action plan and deliver the products and services to people abroad, without the
stress of marketing. This is also suitable as the intermediary body will provide
security and the company will have to focus on delivering the products to that body
(Pedada et al., 2019). However, the organisation will not be using this process as it
will be hard for the company to maintain its goodwill in the international market and
the process is not totally secure. Moreover, the operations can be very costly and
they will not be able to judge the market.
Another method that can be used by the organisation is the process of licensing in
which the company will have to provide the licence to another company abroad so
that the company can sell the products and services of the organisation and make a
profit while paying a certain fee at the same time. This process can also be beneficial
for the organisation as it allows it to make a decent income and create strong
relationships in the international market (Shiflett, 2018). However, providing licences
is not suitable for this type of organisation as a grocery organisation needs a lot of
supervision of its operations and flaws can result in decreased brand image.
Therefore, this process is also not suitable for the organisation and additionally, it

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cannot allow the company to interact with the customers and the company cannot
make enough profits.
The best option for the organisation can be carrying on a venture with other
companies in the international market as this can increase the pool of products and
services as well as human talent within the organisations. Moreover, the company
can easily operate on international level and introduce new resources that can help
the companies to dominate the market and increase their market share (Vaillant and
Lafuente, 2018). This is one of the best ideas that can be used by the organisation
as this can increase profits and it will not be a problem for the organisation as it can
get the goodwill from the venture company. Sometimes, the companies may face
turmoil during their business, however, steps should be taken to reduce conflict as
much as possible and increase profit extensively.
Another option that can be taken by the organisation is the option for franchising and
in this process; the company will have to replicate its operations across international
borders and will have to serve the products and services by standardizing them in
the new market. This is also an advantageous option and can allow the organisation
to increase goodwill however, it is extremely expensive, and the company cannot
spend such a lot of money at this point of time. Therefore, this option will not be
chosen.

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LO3
P5 Present an overview of the key arguments in the global versus local debate
One of the major argued options has been the globalisation and the way in which it is
affecting the modern markets. It has been important for every company moving to
international borders to use different elements of globalisation and restructure the
organisation to meet the demands of the market. It is also important to introduce
different marketing strategies so that it the company can deal with the market
conditions and provide goods and services that can allow increased value and brand
image in the international market. The major argument has been based on product
adaptation (Wu and Zhou, 2018). It is often argued that the companies must
standardise or adapt the products and services in different markets. Most of the time
it has been said that market standardization or adaptation must be done based on
the genre of the company and the type of operations they provide to the customers.
It is argued that the companies will have to implement global strategies with similar
type of themes and messages so that they can market the same product all around
the world and sometimes.
It has been argued that the companies will have to make physical changes to the
products so that they can match that tastes of the customers abroad. This is called
and adaptation strategy. Moreover, it has been argued that if the markets will
become standardized, it is important for the companies to market the same products
and services in all countries (Pedada et al., 2019). It has been said that technologies
must be introduced to learn about the needs and preferences of the customers and
the companies will have to reduce the marketing costs by standardizing the physical
features of the product and introducing different marketing strategies. It is argued
that global pricing must be used in international markets so that the companies can
achieve different production costs in different nations and guarantee a proper selling
price in the international market. This can help in increasing the purchasing power of
the local buyers, or in getting rid of problems like fluctuating currencies. This can
affect product prices (Håkansson and Snehota 2018).
It is argued that standardized pricing must be used when the company wants to have
a fixed price all over the world, the company do not want to take too much of risks
responding to the local conditions. However, the use of adaptation pricing can be
done so that the company can adapt to the local conditions and established
themselves in the foreign market (Ibeh et al., 2019). It has been argued that
distribution is also a major factor that can affect business and the company must
follow different types of channel depending upon market structure. The company to
sell the products to limited resellers must use the exclusive channel and intensive
channel can be used to sell the same among large retailers.
The organisations that offer homogenous commodities to people needs to
standardise it and make sure that they use the latest technologies in order to make
sure that the needs and preferences of the customers are met effectively. The local
markets are in a better position as compared to the international markets because
they have a better knowledge of the market. Further, it can also be stated that the
local markets being in their home country have a better estimation of the needs and

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desires of the customers. Thus, they are able to provide products and services as
per the demands of the customers and use better strategies of promotion.
With respect to the organisation, it is necessary that the organisation establishes
itself to best grocery store in the local market initially and then slowly move to the
international segment. In the initial level, the organisation will be aided to decrease
its cost of production and maximise its profit as it will operate in its hometown and
obtain raw materials at a lower rate. Thus, the organisation needs to operate and
become popular in the local market then slowly the organisation can expand in the
international market and become an international brand.
P6 Investigate how the product, price, pricing and promotional distribution
approach differs in a variety of international contexts
The elements of marketing mix are of high importance with respect to the growth and
development of an organisation in the international as well as local market. The
marketing mix comprises of the tools or the equipments of marketing that is used by
an organisation in order to meet the objectives that it has set with respect to the
market that it targets. The primary four tools that aid in making decisions that are
made with respect to marketing are price, product, promotion, and place (Fan et al.,
2015). The combination of the four tools of marketing mix can be used in order to
influence the consumers so that they are attracted and purchase the commodities
that the organisation offers.
With respect to the organisation, the approaches of marketing mix that can be used
in the international context are as follows:
 Product: In order to penetrate the international market it is necessary for the
organisation to offer the products of same quality in every segment of market that
it wishes to enter. However, it is also necessary for the organisations to research
on the varying needs of the customers so that they can be satisfied. Oak Cash
and Carry needs to provide homogenous products to the customers in every
segment of market that it targets. However, the approach that it would use in
order to draw the customers can be different based on the culture of the country
in which the market is present (Rajavi et al., 2019). It is necessary for the
organisation to concentrate not only on the quality of the products that it will offer
but also the variety of the commodities that it will offer to the customers. The
organisation needs to be particular about the services that will be provided to
people or customers within the stores as well so that the customers are assisted
well and they are satisfied.
 Price: It is of utmost importance for the organisation that has international
branches to be very particular about the price at which it offers its products or
commodities to the customers. The price that the organisations charge from the
customers must be standardised that it is necessary for the organisations to
charge the same price from the customers against the commodities that it offer at
various locations or countries. Homogeneity must be maintained even in terms of
the price that the organisations charge from the customers in different locations.
It is also required that the retail organisations do not charge very high price from
the customers because there are several organisations in the retail market (Liu et
al., 2017). Therefore, if an organisation charges very high price then the chances
of the organisation to lose its customers increases. It is necessary for Oak Cash
and Carry to offer its commodities to the customers at a standard and feasible

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rate. Discounts and offers are other schemes that the organisation can use in
order to build its position in the marketplace.
 Place: It has been found that the location of the retail organisations plays an
significant role in determining its rate of success. It is required that Oak Cash and
Carry offers a huge shopping space to the consumers because congested space
leads to consumer dissatisfaction. It is suggested that the organisation
establishes its stores within the cities or its centre in order to get attention of more
number of clients (Datta et al., 2017). It will also aid the organisation to increase
its volume of sales as well as the profit that it earns.
 Promotion: Promotion or advertisement is of high importance with respect to the
success of the organisations. In the present era, the range of marketing has
increased up to a huge extent. With respect to international markets, it has been
found that digital marketing that includes video marketing, social media
marketing, pay-per-click (PPC), etc works better and produces better outcomes
for the organisation than conventional channels of marketing (Stead and
Hastings, 2018). It is necessary for Oak Cash and Carry to use digital channels of
marketing more than the traditional means of marketing like hoardings, posters,
pamphlets, etc. so that it can attain its objectives efficiently.

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LO4
P7 Explain and analyse the various international marketing approaches your
client organisation can adopt
Oak Cash and Carry wants to expand its branches at international locations and
emerge as a brand name at a global level. However, in order to penetrate the
international market it is necessary for the organisations to devise new strategies so
that they can be successful in their endeavours. It is necessary that the management
of the organisation comprehends the market in a better way and use approaches
that can aid the organisation to increase the profit that it earns. The organisations
needs to introduce modifications in its strategies as well as marketing mix so that the
needs of the consumers can be met effectively with respect to the changes that are
taking place in the social, cultural, technological, or political factors or aspects
(Hakansson, 2015). The approaches of international marketing that Oak Cash and
Carry can use have been described below:
 Global Approach: The organisation can use global approach in order to attract
more customers. The organisation can increase its investment on different digital
platforms so that the operation of the organisation can be made more efficient
and fast. If the organisation uses social media platforms, then the organisation
increase its brand awareness that in turn can aid the organisation to increase the
revenue that it generates (De Mooij, 2018). Global approach will assist the
organisation to reach the customers easily at an international level thus
increasing the profit that it earns.
 Meta-national Approach: The use of meta-national approach by Oak Cash and
Carry will aid it to expand and develop at an international level by focussing on
the unique or differentiated schemes that works best in the markets that it targets.
It is required that the organisation focuses on its expansion in various segments
of market by devising proper strategies of business in association with resources
that are available and the needs as well as desires of the customers (Zenker and
Jacobsen, 2015). It is required that the organisation uses data pertaining to the
market so that the efficiency and profitability of the organisation can be
enhanced.
 Multinational Approach: In multinational approach, the organisation can expand
itself in global markets by adhering to the regulations and rules that governs
various countries in order to make sure that its productivity and operation is
enhanced. Multinational approach is about setting or fixing the price of the
products as per the conditions of the market so that the services that are
provided to the customers can be improved (Keegan, 2017). Thereby, it will aid
the organisations increase the profit that it generates and develop at a faster
pace within a short span of time.
Oak Cash and Carry must use global approach in order to intrude in various
markets at a global level using different tools of marketing like digital marketing
channels as well as traditional channels of marketing. It is recommended that the
organisation emphasise more on digital channels of marketing because in the
present era it can aid the organisation to reach a huge number of clients in less time
and at less cost.