International Marketing Report: Sainsbury's Market Strategies

This report provides a comprehensive analysis of international marketing, focusing on the application of key concepts and strategies to the case of Sainsbury's, a UK-based supermarket chain. The report begins with an introduction to international marketing, defining its scope and core concepts, and then explores the rationale for international market entry, including various routes to market such as exporting, licensing, and franchising. The report then delves into the evaluation of market entry criteria, selection processes, and different market entry strategies, along with their advantages and disadvantages. Furthermore, it presents an overview of the key arguments in global versus local markets and investigates how product, price, promotion, and distribution approaches differ in various international contexts. Finally, the report explains and analyzes various international marketing approaches, comparing home and international orientations and methods to assess competitors, outlining the implications of each, concluding with a summary of the key findings and recommendations for Sainsbury's international expansion.

INTERNATIONAL
MARKETING

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analyse scope and key concepts of international marketing.................................................1
P2 Explain rationale for market internationally and describe several routes to market the
organisation.................................................................................................................................2
TASK 2............................................................................................................................................4
P3 Evaluate key criteria and selection process to use when considering the international
market to enter............................................................................................................................4
P4 Explain examples different market entry strategies including advantage and disadvantage.5
TASK 3............................................................................................................................................7
P5 Present overview of key argument in global verses local markets.......................................7
P6 Investigate product, price, pricing and promotional distribution approach differs in variety
of international context...............................................................................................................8
TASK 4............................................................................................................................................9
P7 Explain and analyse various international marketing approaches.........................................9
P8 Compare home and international orientation and ways to assess competitors, outline
implication of each....................................................................................................................10
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
International marketing defines as a application of the marketing that is helpful in
satisfying the needs and wants of the several people within the national borders. In this larger
number of audience are to be attracted. In this business main purpose is to promote the goods and
services by spreading awareness within the marketplace(Gomes Sousa and Vendrell-Herrero,
2020). It is basically helpful to attain the high knowledge related to the international marketing
concept with the use of the local UK company which is Sainsbury's that is not doing their
business internationally. It is operated within UK by the John James Sainsbury's in 1865. This
organisation can only deals in the market of UK that is headquartered in London. This report
includes the concept and scope of international marketing including the several routes. For
completing this project Sainsbury's is one of the best option that can focus on several marketing
strategies, evaluating the several elements of marketing mix. At last in explains the approaches
of international marketing and comparing home and foreign competitors.
TASK 1
P1 Analyse scope and key concepts of international marketing
International marketing is an essential terms within the business environment that reflects
the several practices, activities, functions etc. for effectively performed within the international
boundaries for generating the high profits, customer base and more stakeholders groups.
International marketing is highly focused on the implementation of the several marketing
functions that can highly reflects the capabilities of the business within the global market.
(Bizumic, 2019). It is very effective because it is the combination of promoting and selling the
goods and services outside the home country effectively and efficiently by satisfying all the
needs of the customers present at globally.
Scope of international marketing
Current situation of the business and market is very complex and in this international
marketing is taken the huge part and contribute highly in the economies of the country by
developing the business international level.It includes the several scope of international
marketing that can be shown below:
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 Export- Export refers to that in which business can offer their commodities by selling is
another international company or the related franchise. In this after getting the exports
commodities importing company can sell that offering within their local and domestic
market
 Import- Another scope of international marketing is importing the goods and services
from the foreign countries and selling it to the local market to their regular and potential
customers. (Yamin, and Kurt, 2018).
 Contractual agreement- It is another opportunity for business by involving into the
contractual agreement with the international business partner. This helps in expanding the
enterprises within global market by joining the hands within the other country business as
a partner.(Alon,Chen, and Mandolfo, 2019)
Concept of international marketing
 International trade- This concept of marketing is highly focused on promoting and
selling the offerings within the international market for enhances their presence within
the global market. For instance- Tesco can deals in the international market and do their
business operations in several countries within globe
 Comparative marketing- It includes the several marketing standards and practices
within market that are basically adopted by the marketers to get success. In this
companies are doing business with comparing their codes of conducts for gaining higher
profits is majorly reflected as comparative marketing.
 Domestic marketing- In this type of marketing organisation can highly focus on
promoting their offerings within the domestic market without focusing on the operations
related to global market. In terms of Sainsbury, the company is only dealing in the local
market of UK till today.
P2 Explain rationale for market internationally and describe several routes to market the
organisation
For every business enterprises several reasons are to be considered to enhance and
expand the operations within the international market by offering and promoting the goods and
services for enhancing the customer base. To enter into the global market a business enterprise
can promote their business activities within several international market so that their presence is
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to be enhanced and millions of customers are to be attracted. It elucidates the several reasons in
context of Sainsbury's to expand their business internationally:
 It includes the key aspects of the marketing that helps the company Sainsbury's for
enhancing the business operations and profits by attracting the large number of customers
within different countries and also gaining competitive advantage within international
and domestic marketplace
 Further essential reason for Sainsbury's for doing their business internationalisation is
developing the firm's operations and market size.
As per above rationales several routes is to be evaluated that can be suggested for
Sainsbury's to move into the global market that can be shown below:
 Licensing- It refers to that route in which parent organisation can offers the permission to
the other organisation to manufacture their commodities for specified price. It reflects the
granting the permission by the licence to use their intellectual property rights for saving
their products and services from copying. In this agreement licensing firm grants the right
to intangible property to other foreign company for a limited period of time. At the same
time it will includes the risk and benefits for expanding and entering into the market.
 Franchising- It refers to that concept of marketing in which company can adopts the
strategy for expanding their business enterprises. In this method Sainsbury's can permit
other global companies or other business owner to established their store within the
global market. In this permitting firm can use the name and brand image for running a
business and selling their operations within international for gaining customer base.
 Exporting- It refers to that term in which company can sales their products and services
within the foreign market by manufacturing the offerings within the home country. In
context of Saainsbury's this route is very effective to do the operations within
international markets.In this firm will produce their goods and services within the
domestic country and sales it to the foreign nation for enhancing the customer base and
gaining high profit margin.(Njinyah, 2018.
Evaluate opportunities and challenges that marketing internationally presents to
Sainsbury's
International marketing is an essential concept for the business enterprises to enhance the
profits and sales of the companies. From above analysis it is evaluated that firm will face the
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major opportunities and challenges that is very vital for the Sainsbury's. For this company major
opportunity is that they can hold effectively the infrastructural development within the foreign
market. This also helps in growing the customer base and high market image within the global
market. This will reduce the cost of marketing by attracting the millions of customers or the
different countries at a time. The company can focus on developing the quality served to the
customers to create customer retention to gain the customer satisfaction towards the company.
There is a opportunity to make the company 's staff flexible so that the employees and workers of
the company. At the same time it also contain major challenge at the time of doing international
business as they can get the high competition due to which their goodwill is to be affected. As
also the company has to prioritized their product and services such as staple food items like
fishes, pizza etc. is to be prioritized when it is needed. As the company is dealing with the food
items so it is necessary for the company to do prioritization of food items which can become a
major challenge for the company to operate the business internationally.
TASK 2
P3 Evaluate key criteria and selection process to use when considering the international market
to enter
International market is the best place for the businesses to expand the operation within
new area or place that can includes the several stages and because of this firm will take the major
decisions that can helpful to getting the higher success and movement within the international
market. As international market is carrying different opportunities the company carry its business
with highly selective, trained and well skilled employees and workers to generate more revenue
for the company. In context of Sainsbury's several selection processes is to be adopted for
entering into the international market that can be shown below:
 Objectives of International marketing- It is the core process for internationalise the
marketing objectives and goals. In relation to the selected market and prominent place
that a company can adopts to operate their outlet for delivering the services and products
at international market will be effective that can attain the objectives related to global
market.
 Factors for selecting- It includes the several essential factors that is needed to be
evaluated by business enterprises to analyse their success on the chosen place related to
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their products and services. In case of Sainsbury's several factors are taken into
consideration is availability of raw material, government code of conducts,
infrastructure,present rival of the companies within the international market.
 Preliminary screening- In this stage Sainbury's can highly focus on the locations for
their store so that not effective locations can be removed by proper research and
screening the area based on spending power of society people, population, consumer
perception related to company products and services and most importantly economic
conditions and many more.
 Examine and selection- In this stage Sainsbury's can evaluated the international market
where they can expand their business operations. This helps in analysis the cost and other
essential factors that is helpful to attain the business objectives related to the right
selection.
 Test the market- In this process of selection company i.e. Sainsbury's can deliver the
sample of their products within the chosen market so that they can gain the high
knowledge related to customer perceptions and creations which helps in enhancing the
brand image of the company.
 Commercial production- It is the last stage of the selection process of that is adopted
by Sainsbury after getting the outcome related to test marketing. If it is in favour of
company benefits then they can sell their commo0dities within their chosen area that
helps in gaining high advantageous results.
P4 Explain examples different market entry strategies including advantage and disadvantage
Market entry strategy defines as the base that a business organisation can choose to
engage in the new market with new clients and develops the powerful relations within the new
market. In the business environment businesses have several options to enter into the
international market so that their profits and resources is to be developed by getting the modern
resources to attain the business strategies. There are various types of market entry options that is
helpful to enter into the global market for getting the profitable results. In context of the
Sainsbury's several market entry strategies can be shown below with their pros and cons that can
be discussed below:
 Exporting- It refers to that strategy of market entry which is adopted by organisation for
not directly enter into the foreign market. In this one company can sell their products and
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services to the another company and reflecting their presence within that foreign country
which is more essential to gain higher profits. It contains some advantage and
disadvantage in context of Sainsbury's that can be shown below:
◦ Advantage- The major advantage of exporting is that the company can selling their
products and services within the global market for gaining higher profits without
including high expenditure. It also leads the high economies of scale because of their
country will gain higher advantage
◦ Disadvantage- The main drawback of Exporting for Sainsbury's is that due to
exporting they cannot focus on the home market and their existing buyers due to
which brand image within the home country is also be affected. In this they can also
paid higher tax to enter into the international market.
 Licensing and franchising- In this market entry strategy company can develops their
profits and growth. It will gives the productive results to the Sainsbury's to get in touch
with various global based companies and also selling their products and services within
the international market. (Asseraf and Shoham, 2019). .By adopting the use of the
franchising and licensing Sainsbury's can adopts the use of intellectual property rights so
that their operations and products and services is to be saved and also other foreign
companies cannot copy it. It will helps in developing the brand image. (Bertoli and
Valdani, 2018). It also includes some advantage and disadvantage that can shown below:
◦ Advantage- The prominent advantage of licensing and franchising for Sainsbury's is
that it helps in reducing the cost related to infrastructure and capital investment that is
useful at the time of operating the business. This will helps in developing the high
customer base and fulfils all the requirements related to the customers on global level.
It will also helps in gaining higher returns. (Gupta,Pansari, and Kumar, 2018).
◦ Disadvantage- The major con of this market entry strategy is that it will maximised
the risk by entering into the new market with their modes because of duplicated
business environment. Due to this method several secrets are to be revealed to other
companies if it is not to be secured by the Intellectual property rights.
Apply market evaluation criteria and entry strategies and make recommendations
It is to be evaluated that the marketing strategy is very prominent as it also includes
several benefits and drawbacks related to operations and effectiveness of the business
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enterprises. In this several option is to be discusses related to market entry that are franchise,
exporting, licensing etc. Sainsbury's can adopts the Licensing and Franchising strategy to gain
the capital investment for increasing the customer base and enhancing the large market size. It is
to be highly recommended for the company to enter into the international market. As the
company puts its customers at the top of the list and to carry business activities internationally
the company can put investments on stores, labour force and other distribution channels to
provide better customer service. The strategy of market segmentation can be referred to the
company to generate more sales and attract more customers to buy the product and services from
the company. The market segmentation is necessary for the company to carry the business
activities globally.
TASK 3
P5 Present overview of key argument in global verses local markets
International marketing is very prominent term that can reflects the several opportunities
and benefits to the company which can grow and enhance the organisation and customers
engagement to get the high profitable results. In international marketing company can highly
focused on the infrastructure and several marketing practices that can enable for rapid changes
and development. In context of the Sainsbury's the company is one of the largest local superstore
within the UK that cannot deal in any other country within the international market. It reflects
the comparison between the Local and Global market that helps in enhancing the knowledge
related to this
Basis Local marketing Global marketing
Goods and services In local marketing Sainsbury's
can have the huge knowledge
regrading the customer taste
and preference this would
helps in gaining the high
customer base.
In this market plans are much
bigger and wider and
understanding the Customer
needs and wants are not
effectively fulfilled by the
company effectively.
Promotional tactics In the local marketing context
firm will does not includes the
high cost and it can be done
Within the global market
context organisation can
includes the high promotional
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effectively as per the budget
set. Developing plan for the
promotion is very effective on
local level.
tactics that can be diversified
as per the countries which is
quite complex for the business
enterprise.
Cost and budget By including in the local
market cost cannot be high and
this helps in preparing the
budget to fulfils the activities
and accomplishing the plans
effectively
In this global market company
can cover the wider market
and this will includes higher
cost because of this budget can
be divided into the different
regional offices rather than
marketing functions.
Evaluate circumstances in which Sainsbury's could adopt global or local approach
It is evaluated that Sainsbury can adopts the global approach in conducting the market
research and making the promotional strategies for entering into the new global market. It helps
in increasing the customer base and also business operation. In this local marketing is highly
related ton the domestic marketing that only helps in gaining the customers within that country.
As Sainsbury can use different promotional strategies to promote their product and services in
the retail market by highlighting their benefits of serving the quality with the affordable prices of
the product and services to the customers in the global market.
P6 Investigate product, price, pricing and promotional distribution approach differs in variety of
international context
Marketing mix refers to the integration of several elements that includes the products,
price, place, promotion. (Agarwal, and Wu, 2018). It is effective tool that can includes the
several strategies which supports the business firm in maintaining the high relations with the
customers. The marketing mix can be discussed below in context of local and global marketing
with relation to Sainsbury's.
 Product- It is an essential element of marketing mix that can highlighting the company
products and services in the industry on which an organisation is to be dealing. In case of
Sainsbury's that is a leading supermarket in retail sector in which they can offers the
consumer goods and services that is necessary for the people survival
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 Price- In this element of marketing mix Sainsbury can focus on pricing by adopting the
several pricing strategy in the competitive marketplace for attracting the customers.
Pricing that a company follows is the competitive based pricing that is helpful in gaining
the competitive advantage. (Kim, Moon, S. and Iacobucci, 2019).
 Place- In this element of marketing mix company can focus on their distribution channel
that is effective for targeting the customers. In this Sainsbury can adopts the online and
offline channels to serve their products and services to the customers and enhancing the
profit margin.
 Promotion- It is the another significant element of the marketing mix that helps in
gaining the success and profits of the company by attracting the larger base of customers.
It is very vital for developing the marketing plan because due to this product awareness
can be done via social media, digital marketing and many more. With the help of these
marketing tool customers can get attracted effectively.( Sinha, and Sheth, 2018).
TASK 4
P7 Explain and analyse various international marketing approaches
The term marketing is very broad which can includes the several number of practices,
tools and concepts. Marketing refers to the business function that can helpful in spreading
awareness related to the particular brand. In globalisation changes can be occur very frequently
relating to the technological, social etc. In context of Sainsbury's there are several approaches of
the international marketing that are analysed in below:
 Omni-channel- It is a significant marketing tool that is adopted by Sainsbury's by
entering into the new place for applying the different business operations. It is highly
affective for the business that includes the both type of marketing which are physical and
virtual platforms so that large number of audience are to be attracted to gain higher
profits and revenues
 Digital marketing- It is very effective marketing tool within the current business
environment. In this technological aspect play an essential role to promoting the products
and services for attracting the large base of customers with less time and any blockages.
In context of Sainsbury's this marketing tool is helpful to conducting the promotional
activities within foreign market. It is also cost effective in nature.
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P8 Compare home and international orientation and ways to assess competitors, outline
implication of each
In business industry every organisation is different from each other and focus on attaining
the market position to get higher profits. In this business organisation is working for selling
product and service in getting the stability and adaptability within the customers and
marketplaces. In this several ways is to be assess competitors of the Sainsbury's which can be
presented below:
 Ethnocentric orientation- This orientation aspect explains the expansion of products
and services within the international market. In this organisation can engage within the
production and services within domestic market and offers the same offerings within the
international market. The main purpose of this strategy is to accomplishing all the
requirements of local markets and plan the business strategies as per the customer
preferences of the home country customers.
 Poly centric- In this approach manufacturing of goods and services are to be included
and in this company can highly focuses on examine the customer needs and preferences
within marketplace. In this approach venture can includes the vital standards of
marketing to present within the foreign market and conducting the marketing operations
for fulfilling the international goals.
Evaluate various marketing approaches and competitor analysis in relation to organisation
From the above analysis it is to be evaluated that marketing approaches is very prominent
within the international business and setting the promotional strategies. (Zeneli, Czinkota, and
Knight, 2018). Among the different marketing strategies Sainsbury's can adopts the digital
marketing as it is very helpful in gaining higher profits and revenues within low cost and
revenues. It also helps in gaining the customer attention because every individual can spend their
most of the time on social media that is a major part of digital marketing. The various market
segmentation can be used by the company to identify the target customers and use different
strategies to attract the customers towards the company.
CONCLUSION
From the above report it is to be concluded that international marketing is an prominent
term for the business enterprises as it helps in expanding and exploring the business within the
foreign marketplace. (Agarwal and Wu, 2018).It will also develops the high customer base and
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market size of the organisation. It inculcates the several routes that is helpful to enter into the
international market. To effectively understand the international marketing several market entry
modes is to be evaluated effectively and also the comparison between the local and international
marketing helps in gaining the high knowledge.It is very effective for the businesses to expand
and enhance the profits and sales of the firm. At the same time it will helps several risk that are
to be short term and long term which highly impacted the growth and success of the company. It
also includes the several approaches that can useful to gain higher success and returns wioth long
term survival.
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