Strategic International Marketing Analysis: Sainsbury's Kazakhstan

This report provides a comprehensive analysis of Sainsbury's international marketing strategy, focusing on its potential expansion into Kazakhstan. It begins with an introduction to international marketing and its relevance to Sainsbury's, the second-largest retailer in the UK. The report then delves into a PESTLE analysis of the Kazakhstan market, examining political, economic, social, technological, legal, and environmental factors. It explores market structure, geographic spread, customer segmentation, and competitive positioning. The report further evaluates Sainsbury's domestic, regional, and international success, highlighting competitive advantages using Porter's Five Forces. Challenges in the international market, such as political instability, cultural differences, and legal regulations, are also discussed. Finally, the report outlines strategies for global marketing and concludes with recommendations for Sainsbury's to establish a successful presence in Kazakhstan, including recommendations for adapting to local market conditions, customer preferences, and competitive dynamics.

INTERNATIONAL
MARKETING

TABLE OF CONTENTS
INTRODUCTION................................................................................................3
Section 1..........................................................................................................3
Pestle analysis of Environment and Market Trends:-....................................3
Market structure, geographic spread, customer segmentation and
positioning:-..................................................................................................4
Section 2..........................................................................................................5
Domestic, regional and International success :-...........................................5
Competitive advantage:-..............................................................................6
Challenges in international market:-............................................................7
SECTION 3........................................................................................................7
Strategies for Global Marketing....................................................................7
CONCLUSION..................................................................................................12
REFERENCES....................................................................................................1
Online...........................................................................................................1

INTRODUCTION
International marketing refers to the principle of marketing to satisfy
the needs and wants of audience in international level. International
marketing and by which way it is easy for the company to expand its market
in new location and country. Sainsbury's is second largest retailer in UK
supermarket share and working in expansion of its business in other
countries and working globally.
Kazakhstan is the new target of Sainsburry's, and discuss that in the report
the factor to establish in Kazakhstan. Further, in this report discuss the
factor's and environment in Kazakhstan which can affect Sainsburry's growth
in the business. It shows what factor and product choices sainsburry will
focus in working in Kazakhstan as it is different from working in UK. Report
will also provide the recommendation to build an advantage to the
sainsburry for future.
SECTION 1
Pestle analysis of Environment and Market Trends:-
Pestel analysis of market environment of Sainsburry's for Kazakhstan:-
Political Factors:- Political factors which effect the working environment as
working in UK is totally different from working in Kazakhstan. Both works in
different culture and both have different scenarios. Sainsburry's as working
in retail sector need to focus on the Political changes they have to take care
in the Kazakhstan while working there with the plan of expansion.

Sainsburry's work in a big sector of retail and it includes a lot of things which
can also effect the policies of any country and for that the company need to
focus.
Economic Factors:- Economic factor refer to the economic policies of the
country and working according to the economic condition as is it good for the
people to work in Kazakhstan as there is total different language and
different policies even the economic structure of Kazakhstan is totally
different from UK. Inflation in prices strength of the market, economic
structures of a country, employments of Kazakhstan etc. Economic factor
affect the costing and pricing as according to the economic condition prices
varies, it also affects the purchasing power of the audience and the
behaviour of the audience on their purchasing habits due to the pricing and
economic condition (Cateora, 2020).
Social factors:- Social factor include the taste and preference and the
habits of people in a country. People from UK think differently and People in
Kazakhstan thinks differently as it can show effect in the organizations goal
and the company need to focus on the surveys as to know the taste and
preferences of the audience from Kazakhstan. It also includes their habits as
Kazakhstan audience for on health eating and in according to that sainsburry
need to provide new ways and product so that they can attract more of the
customer.
Technological factor:- This factor includes the availability of technologies
in the country and it shows the use of technologies in Kazakhstan. Working

in this Kazakhstan is very beneficial as Sainsburry's advancement in
analytics is effective in the country and can help the organization in growth
in the economy. It helps analysis the market to sainsburry and prevent
waste. Online features also help the company by providing the audience
about their preference choices from home and can help in benefit to the
people of the country to order or advance the services from their comfort
places and homes (Wellner, 2020).
Legal factors:- Legal factors affect as working in UK have different rules
and regulation and when sainsbury want to start the business in the
Kazakhstan need to beware of the legal policies and the working rules and
regulation of the country to be matched by the sainsburry to work in the
proper way and utilize the resources.
Environment factors:- Every country have different environment factors and
working in UK is totally different as working in Kazakhstan.
Environment Factors:- environment factors are the factor which a
company need to focus while working the environment and should always
follow the rules and regulation which totally depends on the environment
and need to follow them. It includes that every organization need to focus on
environment factors so that environment stays healthy and try to work in a
way which doesn't harm the environment, it includes pollutions, plastic bags
etc. sainsbury need to focus on providing the best qualities and try to use
more of paper bags so that the environment doesn't harm (Ballestar, 2018).

Market structure, geographic spread, customer segmentation and
positioning:-
Market structure:-
Market structure refer to the market situation and the working of the
organization in a country, The market choices in the Kazakhstan is different
from UK as it is more to the food industry and not in clothing much so the
sainsburry need to focus on providing according to the market structure, UK
market of sainsbury structure is on clothing and food both. sainsburry will
focus on providing the services which can give the strength in the market
position in Kazakhstan
Geographical spread of product:- Geographic spread refer to the
geographic condition of a country and while sainsburry working in
Kazakhstan will focus on first to capture the most prominent cities of
Kazakhstan. Sainsburry's have studies the market of Kazakhstan, and they
will serve more of the choices according to the taste of people their.
Kazakhstan people have food preferences and so sainsburry will focus on
providing more of the food item and limited other items and after sometime
they will change those limited product with more choices.
Customer segmentation:- There are 4 segments in customer:-
Demographic:- Demographic segment includes the age, gender, income,
location etc. of the consumer and on the basis of that the organization need
to work in their product.

Psycho-graphic:- In this it is segmented by the factor of personality and
characteristics of a person. Like personality, attitude, interests, lifestyle etc.
Behaviour :- this segment includes the purchasing and spending behaviour of
the customer with their status and brand interest.
Geographical:- In this the interest is depended on the geographic condition
including the city, county, climate and the most important the urban & rural
areas (Solberg, 2017).
Competitive positioning:- Sainsbury Will compete with its competitor by
providing the best of the qualities and in low cost in Kazakhstan to capture
the market, starting the market and providing the best of the product and
services so that the competitor stay at bay and it can help the sainsbury in
capturing the market. They need to provide product with the choices and
customer preferences so that they can work better and can stop the wastage
of items.
The top competitor of sainsbury in Kazakhstan is IKEA group.
SECTION 2
Domestic, regional and International success :-
sainsbury as working in the UK got a huge success and even in other
countries sainsbury capture market and worked very well. The reason for the
success in UK are the quality and the brand name which gave a positive
effect to the organization in its growth and strength in market. While working

for Kazakhstan the company focuses on more to the quality and providing
better qualities to the customer in Kazakhstan get stable.
Domestic Success:- Domestic success of sainsbury in UK totally because of
its brand name and the qualities they are providing in a low budget prices,
the main reason of the success is because of its manufactured product which
are consumer favourite and consumer in UK like to purchase them because
of the quality with low prices.
Regional:- Regional success of sainsbury is the variety of product and
services they are providing to the customer and the way they handle their
services and after services to their customer gives a positive result to their
company.
International success:- The success of sainsbury in international market is
because they provide services and after services which are accepted by the
customer, and they focus on more to after services which give strength to
them in the market and keep them separate from their competitor.
The customer oriented strategies of sainsburry helps them in getting the
business goals and working in Kazakhstan totally focused on quality and
services by the company to keep the competition away and capture the
market.
Competitive advantage:-
Porter five force:-
Porter five forces is a tool to understand the competitiveness of the
business and its environment and it also helps in strategies.

Competitive rivalry:- In this it helps in finding the rivalry in the market and it
shows in the competition and help in making the strategies in the market,
Working in UK sainsbury have competitor like Tesco and working Kazakhstan
there are competition of local and government supermarkets in retails.
Competitor rivalry is high in UK and Low in Kazakhstan.
Supplier power:- Supplier power reflect to the variety of product and the
unique product with unique prices to the customer from supplier plays an
important role in marketing. How easily supplier are available and their
expensiveness. The more the supplies the easier to get replaced, and
sainsburry will focus to provide the best deals in Kazakhstan to terminate the
competition (Wessel, 2017).
Buyers power:- Buyers power is dependent on the buyers as how many
buyers are their and what is the criteria of the buyers choices and habits
which can impact a suppliers' variety. If there are few customers then it is
obvious that the power is in the hand of the buyers and for that sainsburry
have already worked in customer segmentation which cover more to more
variety to every type of customer Buyers power is hight in Kazakhstan..
Threat of substitute :- Substitute threat refer to the product which can
replace r substitute the other product which consumer can use. Suggested
there is any product which can affect the business of sainsburry product then
it's a threat of substitution (Hitt, 2016).
Threat to new entry:- Threat of new competitor in the market which can
affect the business in a way for example if there is a new entry in the retail

market in Kazakhstan which is affecting the business of sainsbury so for that
sainsbury need to be aware while working in a country and new entry threat
as low in Kazakhstan.
Challenges in international market:-
Political instability:- Government in different nations with their different
priorities, philosophies in international trades and it can impact the business
for new entrants. Accepting restrictive approach in international trades can
not be beneficial every time in the business. Long term global politics are
unstable and unpredictable. Their economic policies have direct impact on
international trades.
Culture:- Culture plays very important role in the international market and it
also affect the organization because for every organization they need to
understand the working culture of a country to work in it include the
language, ethics, ways of doing business etc. Culture can directly impact on
any organization because they focus on the basic values of a country and
evry organization need to follow them.
Laws and regulation:- Working in international trade required international
regulation which need to be followed by the organization and every country
have their different rules and regulation. Working in UK is totally different
according to Kazakhstan and sainsburry need to focused on the working in
regulation to get the best result in the country and can get better result and
obtain the goals (Ponsford, 2017).

SECTION 3
Strategies for Global Marketing
This type of Marketing also referred to as International Marketing is
done by adapting the situations of other countries to adjust one's company's
marketing strategies (Bayraktar and et.al., 2017). This deals not only with
selling and producing goods globally but also performs all the processes in
global market. It is done to increase the overall effectiveness of service or
product, to utilize the advantage of competition and to enhance the brand's
awareness among consumers.
Sainsbury holds the second position in the supermarket chain of UK. It
mainly deals with the food products, clothing and fuel services. It plans of
expanding its services in Kazakhstan for targeting more regions and
increased number of consumers thereby increasing the sales and profit
margin.
To achieve this goal and boost up its products and services in the new
country, it must plan and implement certain strategies.
Methods for Entry in new market
There are various strategies to enter market of a new country
(VAHDATI, NEJAD and SHAHSIAH, 2018). It is not at all same in all the
countries instead it depends on the environment of the country where the
company is to be expanded. The numerous methods are as follows:

Exporting Directly
In this strategy, the company sells the product directly without any
intermediaries which works best in small volumes. The advantages are that it
provides control on foreign market selection and trademark protection. The
disadvantages include higher requirements of resources, capital and risks.
Exporting Indirectly
These are concerned with appointing intermediaries which gives no
control to the exporter in foreign market and product (Dombrowski, Krenkel
and Wullbrandt, 2018). This is good as it gives access to market fast. It can
be harmful as gives no control on product thereby decreasing number of
sales.
Licensing
In this, the licensor gives certain rights to the licensee in the country
where the product is to be hosted. The rights can be skills of management,
technology etc. It helps in expanding quickly without higher risks and capital
(O’Hare, Stewart and McColl, 2018). It gives lower incomes as compared to
other entry modes.
Franchising
Under this, the franchisees gives the fees to franchiser to use its
trademark for selling services and products and to sometimes ise the format