U40 International Marketing: Sainsbury's Strategies and Challenges

This report provides an analysis of international marketing concepts, focusing on Sainsbury's as a case study. It explores the scope and key concepts of international marketing, the rationale for Sainsbury's to market internationally, and various routes to market. The report evaluates the opportu...Read More

International
Marketing

Table of Contents
INTRODUCTION ..........................................................................................................................3
Section 1 ..........................................................................................................................................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.....................................................................................3
M1 Evaluate the opportunities and challenges that marketing internationally presents to your
chosen client organisation......................................................................................................3
P3 Evaluate the key criteria and selection process to use when considering which international
market to enter........................................................................................................................3
P4 Explain, using examples, the different market entry strategies, including the advantages
and disadvantages of each......................................................................................................4
M2 Apply the market evaluation criteria and entry strategies, and make recommendations for
your chosen client organisation. / D1 Produce a critical evaluation of the international market
context, including insight into how your chosen client organisation should adapt their
marketing strategies for various markets...............................................................................4
Section 2 (COVERED IN PPT).......................................................................................................4
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The national marketing is the certain aspect which involved at all the principles of marketing
and the business practices in the international boundaries which leads to enhance the presence of
an organisation in larger work areas. The concept of international marketing animals the the
organisation to attract the large group of audience from global space. The main consideration of
the approach is to advertise their goods and services so that they can spread awareness to their
potential wire that are in the foreign nations in order to fulfill their needs and demands within the
given product. 10 respectively goat discovering the understanding through the concept of
international marketing in consideration of Sainsbury's, it is the second largest supermarket
which is instability in in 1865 by John James sainsbury. This respective report will also evaluate
the certain roots and the successful opinion will be suggested. Lastly it will analyse the aspect of
marketing plan in order to adopt the international market & certain approaches of marketing that
can be adopted by company.
Section 1
P1
International marketing is a effective methods that consists of certain business practices in
order to perform their operations across the the globe. Nowadays markets and business are
operating their business in the modern world and having dynamic environment. International
marketing also enhance the scope of globalisation which facilitate with better interaction with the
large group of customers.
 Import- it is the simplest and common form of international marketing in which the
business import certain product from the foreign market and sell them in the national
boundaries to their potential buyer. Export- it is the aspect which is opposite to the import as the main consideration is to
save their product and services to the international organisation which can be in the form
of franchise of joint venture.
 Contractual agreements- it is the basic expansion opportunity for every business that are
entering with the contract basis agreement with the international partners and enable them
to expand their business in the international market with the help of their foreign partners.

P2
There are certain factors due to which an organisation is moving and expanding their
business in the international boundaries and offering certain goods and services in a wider areas.
But when it's come to the international marketing the main consideration of the organisation is to
conduct certain advertisement activities in the international markets so that they can increase the
presence and customer base to become the business partner of global country. There are certain
methods which are suggested to the century for expanding their business in the international
market: Franchising- it is the basic rule that can be used by the various organisation and as per
this method we can allow other international business for the sole venture owner to form
their Store in the global market & use their brand name and image while operating their
operations and sale in certain goods to their potential buyers. Licensing- it is the aspect in which patent company who wants to expand their business
in the international market they can allow other forms of the international market to
access their intellectual property rights and then conduct their own business on the behalf
of international businesses. Both franchise and licensing are a different procedure and can
have their own advantage as well as the associated risk.
 Exporting- it is the simplest method of entering into a new venture market & moving
from domestic boundaries to international areas. Sainsbury's can use this route for
expanding their business in the foreign borders. They will manufacture and offer their
product and services in the domestic market & then sending the semi finished products to
the international border where product can be sold on larger and diversify customer base.
M1
International marketing is the wider concept that includes the cert-in opportunities and
challenges for the organisation who are planning to expand their business or already engaged in
such procedures. Some of the opportunities and challenges that are associated with the operations
of Sainsbury's are given: Opportunities sainsbury can have better infrastructure development in
the international market and able to sell their products and services in the large market which
leads to establish extensive global image across the world. Another opportunity is date and
increase their overall revenue and reduce the cost of marketing file expanding their business to

international borders. Weakness- major challenge that can be faced by Sainsbury's when they
are moving internationally that system competition and their goodwill in the large market.
P3
When an organisation is expanding there business in the new market place it is the critical
task which includes the various stages and major decisions which influence the overall expansion
and the success of business at global level. Certain process that needs to be followed by the
Sainsbury's are explained as below:
 International marketing objectives- it is the state with analyse marketing related to the
export for objectives and organisational target. In relation to this, specific market and the
important area in which the organisation wants to establish their services and product at
global area will be chosen with the consideration of effective objectives of company. Parameters for selection- it is the aspect which is released from the needs of the
individual which is properly given and understood by the company once they have
chosen the the region where they want to spend their business. There are certain
parameters which must be considered by sainsbury in respective of selecting New
Market, raw material, infrastructure, government policies and their competitors. Preliminary screening- it is the basic stage which is related to all the location in which
the company is not offering their product and services and eliminated on the basis of their
screening that includes the insights of the consumer population size buying behaviour of
potential buyer and the economic condition of particular area. Analysis and selection- after this is state where the market is being examined and
evaluated for expanding their business will now undergoes the study and analyse the the
cost-benefit they are providing to the specific market. Test marketing- it is the stage in which some sample of the product will be given by the
company to the people in order to understand the customer reaction and their liking as
well as the necessary changes in their product.
 Commercial production- this is the last age in which result of testing are in the favour of
companies growth and now they are start producing and selling their goods and services
in the chosen international market.

P4
There are various business strategies by which the organisation can enter through different
routes and manage their business effectively but due to some reasons there are number of market
entry strategy that are available and can be adopt by the company with the aim of having
globalisation and modernization and their business. Thursday are various types of market
strategy that can be accessed by Sainsbury's for making their entry in the specific market. Some
of the market entry strategy are discussed and in this section the report will also analyse by
putting emphasize on their advantage and disadvantages as well: Exporting: it is the market entry by which company doo not enter in the market and can
not contribute to the higher sale of their products and services in the market through this
can have the an existing business from by having selling finished products in order to
company. It is the significant in the international boundries.
Advantage it is the aspects of exporting the certain goods in the new market in Sainsbury's which
is leading to more productive and suitable profits and it is the simplest form by which the
company can enter in the international market also enables the organisation to increase their
customer base.
Disadvantage it is the aspect which is related to the exporting of services in international market
but in this there is a increased cost due to huge taxation being paid by the company in order to
avail their new product in the international market. Licensing and Franchising: it is the aspect which can be helpful & productive for the
Sainsbury's as it helps the organisation to get in touch with the other businesses and their
owners of the foreign market & leads to sell their product & services in the international
market. The venture can use licensing and franchise by which they can make the best use
of their intellectual property for operating their business. Advantages and disadvantages
are given below:
Advantage it is the international strategies which is franchising and licensing which is not equal
to the capital and cost in the infrastructure and other business related activities and gaining
access. Sainsbury's will be beneficial by using that also means to enter to enter in the market. It
will analyse the working with cost effective procedures and will be getting higher returns on
their investment.

Disadvantage it is the strategy which is related to the strategy which is also related to the level of
risk in such strategies. It is the duplicated losing the control over the operation and misuse of
their intellectual property by the international level which is getting in the personal advantages.
M2 / D1
Market entry strategies for a business can bring various different advantage and disadvantage
related to the operations and effectiveness of thee venture. The certain market entry strategy add
licensing, franchising and exporting. With these, licensing is the suitable entry strategy for the
business. This wil bring less cost capital investment for the company and also accessible to the
large market and resources. Hence, it is recommended to sainsbury as a entry strategy to enter in
the international market.
Section 2
P5
Global marketing is helpful that access the number of opportunities and the certain
advantages by which the company can enhance and growth their operations and customer base
by reaching out to the large number of possible profitable audience. Organisation leads to use the
diverse approaches and the business practices so that they can use them in their business so that
they can have the rapid growth and changes in the development of the business. Thus, global
marketing is the significant concept that is serving their product at global level and offering the
certain approaches in the large business opportunities to the several different countries and their
respective economies in which they are operating their business opportunities to the different
countries. There are certain aspects which is leading to the growth of the business in running of
the specific market.
There are various business opportunities and the productivity offered by the global
marketing so that they can have the internal business possibilities by which the company can
believe that local marketing it is effectual and best strategy in comparison to the different market
strategy which is being used in local and global market.
Basis Local marketing Global marketing
Products and services Sainsbury's is offering They have made the

suitable product and services
to their customers by meeting
the needs and demands of
them.
marketing plan and
approaches in the wider
concept the product &
services will be more diverse
and unfavourable to the large
customer base then to the
specific segment.
Cost and budget In order to have the local
marketing there are less cost
which is involved and the
certain budget according to
the needs off the task by
which promotional plan can
be developed.
Global marketing is changing
the wide area and therefore
cost involved is hai and the
budget is being divided into
different aspect other than
marketing activities.
Promotional tactics When the marketing is
conducting on local level the
promotional tactics are easy
to analyse and this is less
complex.
When the sensor is moving in
the international foundries in
order to conduct their
business with leading to have
more critical and complex
promotional tactics.
M3
It is the simple approach that we can adopt the global approach of having promotional
strategy and marketing while entering in the new area and expanding their business operations.
The concept of local marketing is more related to the domestic population and market which is
suitable for the organisation in order to adopt the local areas.
P6 / M4
There are certain product price promotion and distribution aspect which is the part of
marketing mix and it is the effective tool which includes the certain is strategy and the factors in
order to support the organisation for taking better decision for enhancing their overall marketing
performance. In an organisation companies different in global and local context which are
explained below in relation to Sainsbury's:

 Product- it is the first aspect which is product and that describes as the prominent item
which is being offered by the company in the large industry. Sainsbury is the supermarket
which is operating their business and industry and offering different types of FMCG
goods to their potential buyers. Price- the aspect which includes the cost of the product that can be fixed by the
organisation while manufacturing the certain goods and services. After that prices of the
product is being decided for making this sale in the respective market and attract in the
large group of potential buyers and give them the appropriate value of their invested
money. The pricing strategy of sainsbury is competitive as they make change their prices
as per the prices of their rivals. Place- it is the aspect which is referred as the distribution channel which is being used by
the organisation so that they can sale large amount of product and services by attracting
large pool of customers which can contribute in increasing the gross sale of the company.
Sainsbury is using both physical and online platform in order to sell their product by
numerous detailing Store and there online delivery system.
 Promotion- this is last p of marketing mix in which the business have to get profit by
using right medium of advertising and promotion. The promotional tactics which is being
used by Sainsbury's is there product and spread awareness to their potential buyers with
the help of digital marketing social media and traditional marketing approaches by which
they can attract large pool of potential customers. Traditional marketing helps the
organisation in attracting those individual who is living their life with the traditional
approaches.
P7
Marketing is a wider concept which involves the various number of tools concept and practices.
According to the the expert of marketing, what is the business function which involves the tactics
and action which is related to the customer awareness in public about offering a product and
services to the specific brand. Inspire increasing globalisation there are many changes take place
and technology and marketing has been changed.
Now a days there are various options by which a business can be productive and give positive
results and order to satisfy the needs and wants of their potential customers. They can use the
right medium of operating business in the large market so that they can attend higher profitability

and growth at the same time. Sainsbury is expanding their business in the new areas of
international border and making informed about their product and services in the respective
market. Omni- channels marketing- it is the upgraded marketing tool that can be used by the
sainsbury when they are entering in the international market for operating their business
with the aim of having more profitability and growth. Marketing approaches which was
generally neglected by the marketers and the organisation. Nowadays there is effective
approach which is used by the virtual and physical platform by the company and
targeting the large audience for their attention with the help of various marketing
phenomenal activities. Digital marketing- this is the other important marketing tools present in the business
environment as the use of of digital technology is rapidly increasing and it is presented a
suitable product to the market segment which is digitalization in order to conduct various
advertisement and promotional activity in order to reach out to their potential customers.
Sainsbury can adopt various marketing strategy and the foreign market that will be cost
effective and give more productivity to the business.
P8
Every business is the different from other as they are having unique market position. Thus
also implies that various business organisation use certain orientation in order to conduct their
different business activity. Disorientation depends upon the nature of business scope of their
product and services and the operations which is being needs to have adaptability and
sustainability to their potential bias in the large market. In context orientation there are various
ways by which sainsbury can assist the competition that is explained as follows: Ethnocentric or home orientation- it is the orientation concept which explain the
expansion of their domestic product in the international boundaries. It also engage the
excess production of their goods and services in the domestic market and same is being
offered in the new international market. The main consideration of this approach is to
meet the requirements of their local customers and develop effective strategy in order to
keep the preferences of their customer in domestic market. Polycentric- it is the approach shows the production of goods and services is being done
by understanding the needs and wants of their customers. By using this technique the

business organisation can make the marketing rights that are associated in the foreign
market in order to operate their business in the the global market.
 Geocentric or International orientation- it is the aspect which consider the whole world
and different types of customer which is been treated by the organisation by offering their
certain goods and services in the single market. The sensory can carry out their business
operation by using suitable marketing approaches while launching their product and the
international market.
CONCLUSION
It is concluded from the above report that international marketing is the concept which leads
to have their potential buyers and earn higher profit by having good customer base within the
organisation. Understanding the certain Idea international marketing can use different routes in
order to enter in the foreign border in that the national and the local market. It is also identify that
international marketing is the potential source which has been expanding the business that
become the barrier between the success and growth of the company. Thus, it is suggested for
organisation to conduct a effective analysis before entering in the new market by using
appropriate route.

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