Pret A Manager: International Marketing Approaches and Analysis

This report serves as a marketing consultation for Pret A Manager, focusing on international marketing concepts and expansion strategies. It examines the rationale for international expansion, various routes to market (franchising, joint ventures, strategic alliances), and evaluates the opportunities and challenges presented by international marketing. The report also assesses key criteria for selecting international markets, including market demand, economic and political scenarios, and trade barriers. Different market entry strategies are analyzed with their advantages and disadvantages. The report further explores the global versus local debate, adapting the marketing mix in different international contexts, and various international marketing approaches, including competitor analysis and home versus international orientation. The overall goal is to provide recommendations for Pret A Manager to operate effectively in an international context, utilizing resources available on Desklib for further research.

UNIT 40 INTERNATIONAL MARKETING
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Table of Contents
INTRODUCTION..........................................................................................................4
LO1...............................................................................................................................5
P1 SCOPE AND KEY CONCEPTS OF INTERNATIONAL MARKETING...............5
P2 EXPLAIN THE RATIONALE FOR PRET A MANAGER TO WANT TO MARKET
INTERNATIONALLY AND DESCRIBE THE VARIOUS ROUTES TO MARKET
THE ORGANISATION CAN ADOPT........................................................................7
M1 EVALUATE THE OPPORTUNITIES AND CHALLENGES THAT MARKETING
INTERNATIONALLY PRESENTS TO YOUR CHOSEN CLIENT ORGANISATION
..................................................................................................................................8
LO2...............................................................................................................................9
P3 EVALUATE THE KEY CRITERIA AND SELECTION PROCESS TO USE
WHEN CONSIDERING WHICH INTERNATIONAL MARKET TO ENTER..............9
P4 USING EXAMPLES, THE DIFFERENT MARKET ENTRY STRATEGIES,
INCLUDING THE ADVANTAGES AND DISADVANTAGES OF EACH.................11
M2 APPLY THE MARKET EVALUATION CRITERIA AND ENTRY STRATEGIES,
AND MAKE RECOMMENDATIONS FOR YOUR CHOSEN CLIENT
ORGANISATION.....................................................................................................12
LO3.............................................................................................................................13
P5 AN OVERVIEW OF THE KEY ARGUMENTS IN THE GLOBAL VERSUS
LOCAL DEBATE.....................................................................................................13
P6 INVESTIGATE HOW THE PRODUCT, PLACE, PRICING AND
PROMOTIONAL DISTRIBUTION APPROACH DIFFERS IN A VARIETY OF
INTERNATIONAL CONTEXTS...............................................................................15
M3 EVALUATE THE CONTEXT AND CIRCUMSTANCES IN WHICH YOUR
CLIENT ORGANIZATION SHOULD ADOPT A GLOBAL OR LOCAL APPROACH,
HIGHLIGHTING THE IMPLICATIONS OF DOING SO..........................................17
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M4 YOU SHOULD DETERMINE AND ARTICULATE IN DETAIL HOW TO ADAPT
THE MARKETING MIX OF YOUR CLIENT ORGANIZATION IN DIFFERENT
INTERNATIONAL MARKETS.................................................................................18
LO4.............................................................................................................................19
P7 EXPLAIN AND ANALYSE THE VARIOUS INTERNATIONAL MARKETING
APPROACHES YOUR CLIENT ORGANISATION CAN ADOPT...........................19
P8 COMPARE HOME AND INTERNATIONAL ORIENTATION AND WAYS TO
ASSESS COMPETITORS, OUTLINING THE IMPLICATIONS OF EACH
APPROACH............................................................................................................22
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.................................................................................25
CONCLUSION............................................................................................................26
REFERENCES...........................................................................................................27
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INTRODUCTION
As a marketing consultant of Pret A Manager this report will lay emphasis on the
international marketing concepts and the different routes that it can undertake to
expand internationally. This will also cover the key criteria and the selection process
that wit will undergo while moving to international market. Different market entry
strategies will also be undermined with the advantages and disadvantages of each.
Pret a manager is an international sandwich shop chain that is based in the UK since
1983. It has approximately 500 shops in nine different countries and is
headquartered at London, England. This local company of UK utilizes natural
ingredients of the sandwiches at every location and it sends the unsold food to the
charities at end of the day. The 67% of its total trade is conducted in London. This
company has nearly 1400 people working out of which nearly 19% are from the UK
and 60% are from the European Union Countries. The sandwich chains are spread
in other locations too such as China, France, US, Hong Kong, Dubai and many
more. Its key products include salads, sandwiches, sushi, coffees, snacks and soups
(Alexander, 2015).
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LO1
P1 SCOPE AND KEY CONCEPTS OF INTERNATIONAL MARKETING
International marketing is termed as the application of the marketing principles in
many other countries too. It is termed as the multinational process when the planning
and execution of the marketing processes is carried out so as to render satisfaction
to the individuals as well as organisations (Alexander, 2015).
Rationale behind international expansion of Pret A Manager
Pret A Manager is seeking to expand in other international markets too be expanding
its food chains so as to capture larger market areas. In order to gather information
about the international market it will go through the scope and the key concepts
involved in the international context. International expansion will render it access to
the non-captured markets too and will help to become competitive enough by
capturing international recognition (Alexander, 2015).
Key differences between international and domestic marketing
In the domestic marketing all the activities are carried out on a small scale and
utilises domestic marketing mix according to the local needs of the people. There are
less governmental interventions in the domestic marketing as compared to the
international marketing. In the international marketing the activities are accrued out
according to the international needs of the people and are carried out in more than
one country (Johanson and Mattsson, 2015).
Through globalisation the scope of international marketing has been broadened
through the exports, imports, joint ventures, contractual agreements and the other
methods.
Exports
This renders an opportunity for the international marketing of the products by direct
selling the products and services to another country that helps in earning better
revenues and thus helps in the growth of the company (Alexander, 2015).
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Imports
Through this mode the company gain access to the products and services from the
foreign market which it lacks in and thus fulfils the needs of the local people through
importing (Alexander, 2015).
Joint ventures
The joint ventures are the mode that helps in expanding the international marketing
scope for companies as through the joint ventures strategic alliances are made
which reduces the scope of the competition for the companies going global and thus
leads to better access to the innovation (Armstrong, et al. 2015).
Contractual agreements
This is another scope covered under international marketing which aims to get into
contracts based on time or other conditions which helps to render the required
assistance in terms of the resources and the technology by less cost involved
(Johanson and Mattsson, 2015).
Factors affecting the scope of international marketing involve the advent of the
regional free trade areas and the World trade organisation advent. Through the
trends of the free market system the international marketing is gaining popularity.
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P2 EXPLAIN THE RATIONALE FOR PRET A MANAGER TO WANT TO MARKET
INTERNATIONALLY AND DESCRIBE THE VARIOUS ROUTES TO MARKET THE
ORGANISATION CAN ADOPT
Pret A Manager is seeking to go international for acquiring the opportunities over the
other countries too so as to enhance its market share and build its brand reputation
in other countries too. Pret A Manager is a sandwich chain of the UK based which is
seeking to expand globally (Hoppner and Griffith, 2015).
Some of the key rationales behind its expansion includes the maturity of the market
in which its operating and the rate of growth in the global market which will help it in
delivering it several opportunities. Through the global expansion it can be able to
boost its reputation and compete successfully in the domestic market as well. As the
growth rate of the domestic market of the UK is quite slow which leads to
unattractive cost structure in the global market (Johanson and Mattsson, 2015).
For Pret A Manager to go international there are different routes to market which it
can adopt. These routes include the following:
Franchising
The best route to international market is through franchising which can be adopted
by it to open new chains of the same in other countries too through rendering
permissions to the franchisees in return of fees. Through this it can utilise its brand
name in other countries too (Armstrong, et al. 2015).
Joint ventures
In order to cut the competitiveness and enter the international market Pret A
Manager can opt for joint ventures through which it can work in collaboration with its
competitors or acquire them so that the competitiveness can be reduced and it can
gain access to their customers as well.
Strategic alliances
Through strategic alliances it can also expand in the international market which will
help it to achieve its objectives of going global (Hoppner and Griffith, 2015).
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M1 EVALUATE THE OPPORTUNITIES AND CHALLENGES THAT MARKETING
INTERNATIONALLY PRESENTS TO YOUR CHOSEN CLIENT ORGANISATION
There is a wide range of opportunities and the challenges that is present with Pret A
Manager when it markets internationally. Some of the opportunities and challenges
are mentioned as under:
Opportunities for Pret A Manager
 Pret A Manager has a food-on-the-go success story as it has managed to
exceed the average spending of the British workers on daily lunch by £4.58
with an increase in the average basket size of 2.2 products (Armstrong, et al.
2015).
 It can gain opportunities by raising its brand awareness in the cities like
Bristol, Liverpool and Manchester by opening new shops over there.
 It can grab over other countries of the UK as well as other Asian markets will
give it an upper hand to capture the non-captured markets.
 Marketing internationally will help Pret A Manager to enhance its brand name
and to enhance its profitability.
 It can create its multinational brand by expanding its branches in other
countries too (Hoppner and Griffith, 2015).
Challenges for Pret A Manager
 While marketing internationally it may face challenges of advertising in
different languages
 There may lead to the issues and barriers like of the duties and the tariff
barriers which will be charged on the import and export of the materials from
one country to another (Johanson and Mattsson, 2015).
 It may involve the risk and the challenges of the authenticity and the taste of
the products offered by it which should be same as it is known for.
 There may be challenges in meeting the taste and the preferences of the
customers in the other country by designing the marketing mix in accordance
to the international context (Armstrong, et al. 2015).
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LO2
P3 EVALUATE THE KEY CRITERIA AND SELECTION PROCESS TO USE WHEN
CONSIDERING WHICH INTERNATIONAL MARKET TO ENTER
For the international market selection some key criteria should be undertaken by
Pret A Manager so that the international markets can be effectively entered into. So
some key criteria and selection process will be evaluated as under. Some of the key
criteria forming part of the evaluation process of the international market selection
will fall under the trade barriers, market demand and economic scenarios.
Market demand
According to the needs and the specifications of the customers in the market of
international boundary the market research should be conducted so as to meet the
market demand before taking decision to expand internationally (Surdu, et al. 2018).
Economic and political scenario
In accordance to the prevalence of the economic and the political situations in the
international market where Pret A Manager is seeking to expand in the selection
process will be guided by these criteria.
Trade barriers
While going for selection of international market the trade barriers will be duly taken
into key criteria which will help in analysing the presence of the quotas, trade
barriers, and other non-tariff barriers which Pret A Manager will have to pay
(Armstrong, et al. 2015).
Thus these factors will be duly considered by Pret A Manager so as to identify the
potential markets for its expansion in international market so that it can take
advantages from international expansion.
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Selection process used by Pret A Manager
In order to identify a potential international market by Pret A Manager it will undergo
a selection process which will involve series of steps to select a potential market and
then target it for expansion:
Country identification
In the first stage Pret A Manager will go for country identification where plans will be
made related to the expansion. The attractiveness of the potential markets will be
examined by analysing various aspects of that country (Cavusgil, et al. 2014).
Screening
Then comes the preliminary screening where Pret A Manager will render more
focused and concentrated emphasis on the factors that will be preferred for different
market selection which will seem to be best fit for expansion decision. Then after
preliminary screening the in depth screening will be conducted that will eliminate the
country that seems to be challenging for Pret A Manager in any aspect.
Making the selection
After going through the in-depth analysis of the different market alternatives, on the
basis of the attractiveness of the market the final selection will be made by the Pret A
Manager where it can expand (Cavusgil, et al. 2014).
Thus after paying special attention to these selection process stages Pret A Manager
can go for selecting the most appropriate market for expansion.
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P4 USING EXAMPLES, THE DIFFERENT MARKET ENTRY STRATEGIES,
INCLUDING THE ADVANTAGES AND DISADVANTAGES OF EACH
There are different market entry strategies that Pret A Manager can adopt but every
strategy has some benefits and demerits associated with which needs to be
analysed by Pret A Manager before choosing them.
Strategic alliances
It is a market entry strategy where Pret A Manager can enter into contractual
agreements with the companies so as to override the competitors. It helps in
mitigating the risks of the investment and renders more cost savings. The demerit of
this method is that it can lead to conflicts which can negatively impact the whole
business of Pret A Manager (Surdu, et al. 2018).
Exporting
Under this strategy Pret A Manager can go for selling the products and services in
another country. But this method has limitation of lack of knowledge of the local
market which will lead the negative impacts. The transportation expenses will also be
incurred. Through the sales via exporting the risk can be minimised and market entry
process will become easy (Cavusgil, et al. 2014).
Licensing and franchising
Licencing and franchising will be the best suited market entry strategy for Pret A
Manager as it will give another company copyrights and the patents rights to adopt
and then sell the products in other country under the same name and brand. Thus
will boost the brand awareness and will cut the cost (Eteokleous, et al. 2016).
Greenfield venture
Under this strategy Pret A Manager will have an opportunity to launch a new and
wholly owned subsidiary which will allow it to capture the international market
effectively. There exist some demerits of this method as it will attract huge cost for
Pret A Manager and will suffer from the lack of attractiveness amongst the unknown
people (Ahi, et al. 2017).
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M2 APPLY THE MARKET EVALUATION CRITERIA AND ENTRY STRATEGIES,
AND MAKE RECOMMENDATIONS FOR YOUR CHOSEN CLIENT
ORGANISATION
The different factors that can be applied in the market evaluation criteria include the
market size which will involve screening of the number of the potential customers in
the country which are willing to buy its products and services.
The pricing factor will be applied in the potential market like as to what amount is
likely to be spent by the people in the particular market and what can influence their
profitability (Eteokleous, et al. 2016).
Next competitive analysis will be conducted that will help Pret A Manager to develop
effective pricing and other strategies which will help it to override the competitors.
According to the market evaluation performed various criteria and factors will be
undertaken by Pret A Manager to choose the market where it can expand. Through
effective market evaluation the most attractive market will be selected by Pret A
Manager and the market entry that is most suited for Pret A Manager emerge as the
franchising strategy which will help it to save cost and expand easily. It will open up
its branches in other countries too and thus will expand globally (Skarmeas, et al.
2016).
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