Sainsbury's: Marketing Mix Adaptation in International Contexts

This report provides a comprehensive analysis of international marketing strategies applicable to Sainsbury, a major UK supermarket chain. It covers the scope and key concepts of international marketing, including import strategies and the impact of differing national policies. The report evaluates opportunities and challenges Sainsbury faces when marketing internationally, such as cultural differences and market competition, drawing from examples like the company's failed Egyptian market entry. Key criteria for selecting international markets, including market analysis, competition analysis, supply chain considerations, and demand analysis are discussed. Various market entry strategies like direct and indirect exporting are examined, highlighting their advantages and disadvantages. The report further explores how product, pricing, and promotional approaches differ across international contexts, and analyzes the application of the marketing mix in diverse global settings. Finally, it compares home and international orientations, assessing competitors and outlining the implications of each approach for Sainsbury, ultimately providing recommendations for the company's international marketing endeavors. Desklib provides students with access to past papers and solved assignments.

Faculty of Business and Management Studies
BTEC HND in Business
International Marketing
UNIT 40 – GROUP E
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Table of Contents
Introduction…………………………………………………………….………………………….3
Main Body………………………………………………………………………………………...3
Scope of international marketing…………………….…………………………………………....3
Evaluate the opportunities and challenges that marketing internationally parents to your chosen
client organisation………………………………………………………………………………....3
Evaluate the key criteria and selection process to use when considering which international
market to enter…………………………………………………………………………………….6
The different market entry strategies, including the advantages and disadvantages of each.…….7
Apply the market evaluation criteria and entry strategies, and Make recommendations for your
chosen client organisation…………………………………………………………………………9
How the product, price, pricing and promotional distribution approach differs in a variety of
international contexts…………………………………………………………………………….11
Produce a critical evaluation of how the marketing mix is applied to a range of international
contexts…………………….…………………………………………………………………….12
Explain and analyse the various international marketing approaches your client organization can
adopt……………………………………………………………………………………………...13
Compare home and international orientation and ways to assess competitors, outlining the
implications of each approach…………………………………………………………………...14
Implications of each approach for Sainsbury……………………………………………………15
Recommendations……………………………………………………………………………….16
References……………………………………………………………………………………….17
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Introduction
International marketing is application of principles to satisfy different needs of people
living across the national borders. It is trading of goods and services among different countries. It
is also known as global marketing. Taking an example of an organization of United Kingdom,
Sainsbury is the second largest chain of supermarket in the UK. The company was established in
1869, 152 years ago. The headquarter of the Sainsbury is in Holborn, London. The further report
will be covering scope and key concepts of international marketing, later it will discuss the
various market routes the organization can adopt (Asseraf, Lages and Shoham, 2019).
Main Body
Scope of international marketing:
The application of marketing satisfies the various needs and want of different people
from out border is called as international marketing. Discussing the scope of international
marketing in context with Sainsbury Company.
Import: The most important way of international marketing a company will chose is importing.
Importing of goods from on country and selling it to domestic market. Talking about
Sainsbury, the company import their goods from other countries but sell them in domestic
market. Company localizes the import product depending on the needs of the market.
Formalities and procedures of marketing: There are different laws and policies of countries
framed by the government. It makes international marketing more complex and more time-
consuming process. Most of the time the rules and regulations are not that static for all the
participating countries. Sainsbury export its goods only within its boundary. So, they will
not face much issues related to rules and regulations.
Key concept of international marketing:
International marketing refers to marketing across the international borders. Under the
process marketing principles are being applied by various industries in one or more than one
country. In simple words international marketing refers to trading of services and goods from
one place to another. Being in the process key considerations to international trade agreements
that is responsible for the increase in international marketing are being taken into consideration.
The major concept of international marketing is trade of good and services worldwide. The
important key concept of international marketing is as below:
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 Production concept: Most of the consumers prefers to buy the product which are widely
available and inexpensive (Baack, Czarnecka and Baack 2018). This is the most
operational oriented other than any concept.
 Product concept: consumer prefers to buy that product which favors the quality the
most, performance, or with some innovative features. This concept believes in the
consumer and it says that more likely to be loyal if they have more options of products or
they get more benefits from the product of the organization (Anning-Dorson, 2018).
 Selling concept: This is completely depended upon promotion of the product which
company aggressively promotes and sell these products.
 Marketing concept: The major concept is marketing which focuses on the needs and
wants of target markets and which results in better delivery of product in comparison of
other competitors.
Various market routes the organization can adopt:
The undertaken company i.e., Sainsbury is a UK-based company. Managers of the
respective company are being regarded well in terms of company workings through the analysis
of the company’s annual report. Therefore, as the company has good hold in the domestic
market, an effective basis of working should be established with respect to international
expansion. Managers of the respective company rest productive working of the company on the
basis of using appropriate management tools and associated techniques. Following are some
potential routes on the basis of which given firm can expand their workings in international
markets (Oyewole, 2018).
Various routes to market that can be adopted by Sainsbury are as follows-
 Creating a website- Having Companies website is as crucial as having shop, office, or
telephone numbers. In research, it has been found that customers expect brands to
have online content about their business to build trust and credibility with their
customers.
 E-market place- The term means electronic market which are used by multiple
separate organizational entities within one or among multiple tires in economic value
chains.
Hence, International marketing is mainly concerned with the capturing the new global
market and promoting the products in that market.
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Evaluate the opportunities and challenges that marketing internationally presents to your chosen
client organisation.
A number of opportunities and challenges are involved with the international marketing
that Sainsbury also faced. Considering the opportunities, managers of a business firm can opt to
platform of international marketing in respect to expand in international business market. This
will deliver better ways in which productive use of technology and related innovation can be
taken to use. This in tune will aid company to handle market competition and associated
challenges of internal and external business market (Magnani and Zucchella, 2019).
Managers at Sainsbury seek to market conditions for which better operational tasks are
being produced. For the given context, key considerations to development of market
opportunities through challenges were being focused by managers at Sainsbury. According to
Ahmed Soliman, (2020), Sainsbury's investment in markets of Egypt failed drastically. Managers
at chosen firm opted for the same strategy they used in their respective home country. The
strategy chosen was focusing on convenience as the way to attract customers and comes under
go-to-market strategy. However, as given company operate in urban and densely populated area,
it faced downfall in its sales being recorded in 2001 annual report of the company. This was due
to ignoring of sociology-culture believes and were unable to understand the differences in taste
and preferences of customers being from different regions or country (Why Sainsbury’s failed in
Egypt – No one size fits all! 2020).
Evaluate the key criteria and selection process to use when considering which international
market to enter
Before entering in an international market business must analyze macroeconomic and
political factors to ensure future potential. Company must develop expansion strategy beforehand
to select the right market and way to reach them to ensure international development and growth
potential. Following are the criteria for selecting which international market to enter:
 Market analysis: Company should put together all the countries with selected target
market while selecting an international market. To achieve this target Sainsbury can
analyses the different variables of each country:
◦ GDP growth- Company can analyze the GDP growth rate of the countries with
demands of the international products.
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◦ Country risk- Involving political and social agitation, currency evaluation and
insecurity.
◦ Political factor: Analysis of intervention of political power in business operations and
decisions.
 Competition analysis: It is necessary to analyze the competition in the international
market before entering. Following are the points Sainsbury can consider to analyze the
competition:
◦ Identify and describe the main competitive firms.
◦ Analyze the sales and economic stability of past years of their competitive firms.
◦ Detect them differentiate policy including product quality, price strategy, distribution
channel and financial position.
 Supply Chain Market: Selection of distribution channel and supply market is essential
to determine the expansion of the company in international market. Sainsbury should
track the distribution process from the manufacturing process until providing service to
the final customers. They should determine the sales structure of the country and how
can company adapt could adapt this to their product and service. Company need to
minimize the supply cost by developing a small supply chain network. Sainsbury can
adopt various types of distribution channel such as:
◦ Company can supply and distribute their product internationally from their domestic
market.
◦ Or it can establish a local distributor in target market.
◦ Supply and distribution is also possible with a subsidiary company.
◦ By internet and online business.
◦ By joint venture with a local business in international market.
 Demand Analysis: Company should analyze the current potential demand of the product
in the international market. This information should help the company in deciding
whether the chosen market is suitable for the firm's product or services. Company will get
chance to learn what is best marketing strategy on the basis of price, distribution,
promotion and product that can fulfills the market demands.
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The different market entry strategies, including the advantages and disadvantages of each
Globalization has made it possible for businesses to enter in foreign markets. However, it
is more complicated process to deal with global market due differences in currency, political
power, social and culture norms and language problems. There are broad varieties for entering in
a global market that includes:
 Direct export: Direct exporting can be termed as when the company has its own
stores and department which sell its products through a direct agent or distributor.
This strategy for entering in global market provides more control over the
operations in foreign market. Along with the sales and profit potential there also
high risk include in this strategy because it will need more financial and human
resource investment (Farrell, 2020).
Advantages Disadvantages More control over marketing strategy:
The main advantage of this method is
that company can have more control
over marketing strategy and business
operation in foreign market. For the
given technique i.e .Direct exporting,
business owners can gain better control
of activities that they perform in
international markets this ranges from
rates for transfer of good/ services. Short distribution channel: The second
advantage of the direct exporting is that
it have shorter distribution channel and
supply chain compare to the indirect
exporting (Naeej Haghighi, and
Salarian, 2018).
 High investments: High financial and
workforce investment is needed for
business operation and might face trade
restrictions from foreign market. In its
evaluation it can be said that, due to
ever changing trade policies of various
regions it counts towards disadvantage
for the said technique.
 Cultural difference: Cultural difference
and language barrier create
communication problems that occur
transaction cost.
 Indirect exporting: Indirect exporting involves sell to intermediaries simply means
when exporting manufacturing use independent and established organization in foreign
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market. Indirect export is the fastest way to enter in a global market since company will
not need to work on marketing, promotion and developing customer relationship. Indirect
exports can be of different types including export management companies, trading
companies or broker agents.
Advantages Disadvantages Less use of resources: In this kind of
exporting less amount of financial
resources and investment is required as
third as compared to direct exporting
party will handle the whole transaction.
This facilitates as the foremost
advantage for the chosen company as it
regulates less usage of business
resources thus less risk. Less complex: Company does not need
to have export experience and there is
minimal risk involved in market and
political factors. Being in the given
process there are simplified activities
for which business owners of managers
can concentrate better on their main
task of operation.
 Less control: Company do not have
control over its marketing mix except
for product mix. For the reason being a
formal chain is being established in
process of transferring of products.
This acts as a loophole towards
excising control of business activities
while operating in business market.
 High requirements for labor force:
Additional member in the supply chain
can add cost to the company. This in
turn creates burden on business
manager as not listening to labor force
might create situation of conflict or
disputes in business market.
 Licensing: Licensing is a product or method of production rights protected by a patent or
some intellectual right. Licensing is the method when exporter or the licensor sells the
production rights to a certain market area in the foreign market. In licensing Contract
Company give all operational information to the licensee. Licensing can be of different
types product, method or representation licensing (Francis and et.al, 2021).
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Advantages Disadvantages Cost-effective: Foreign market entry
through licensing saves the marketing
and distributing cost of the company as
this task is done by licensee. This
enables business firm to establish its
decent brand image in international
markets. Easy approach: Licensing method can
be used by inexperienced organization
in international business.
 Needs special knowledge: To use this
method company needs to have specific
intellectual property right to create
enough interest to licensee. A business
owner can be stuck in formalities being
imposed under this strategy of
international market entry.
 External factors: There is threat that
after the ending of agreement licensee
can become the competitor for the
company by using their techniques and
taking their customers.
Apply the market evaluation criteria and entry strategies, and Make recommendations for your
chosen client organization
There are many criteria for evaluating and selecting international market to expand and
each one of them is necessary before entering in global market. Hence Sainsbury also needed to
analysis the competition, market, demand of the company in which it is operating. As for the
market entry Strategies Company can adopt licensing method to enter in international market and
can sell their food process and methods to a certain market. By adopting this method company
can save its marketing and distribution cost and add up more benefits. Licensing is a best option
for an inexperienced company and as an inexperienced company in international market
licensing is best option for this (Oyewole, 2018).
Overview of the key arguments in the global versus local debate
Marketing plan is a document which is used by company in order to successfully carry
out a particular task or activity. When a company decides to go on a global level it is important
for company to make sure that they are having a proper business plan that will help them to grow
and expand globally.
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Global Debate-Many companies have understood the need of Global companies because it
reaches to larger masses in short period of time. In today's growing World, Companies want to
operate on a global scale. It reaches out to larger companies and bring sales to company at faster
pace. It leads to improve the overall image of business as well as productivity to conduct
business globally. There are so many chances of new opportunities.
Local Debate- Is related to focus on smaller audience of local market. The opportunities present
in the local market are low as compared to global market due to high competition in market.
It is clear that any company finds it difficult to grow in the local market. In order to be
international market companies are required to make plans which will help them to face
competition in the global market.
How the product, price, pricing and promotional distribution approach differs in a variety of
international contexts
Marketing mix refers to the promotional tool which provides basic standard for the
operational firm on the basis of which marketers of the corporate firm are able to direct flow of
marketing activities of business firm in guided and corrective direction. In regards to marketers
at Sainsbury, they take relation of provided promotional tool which guides course of action in
operational firm towards productive direction of working. Product and promotion can work
together in international market with proper market research and techniques. The four P's of
marketing are product, price, placement and promotion. The marketing mix consists of four
elements which are as follows-
 Price Decision-Pricing on international context is a complex task because customers can
view global prices and purchase items all over the world this will lead to increase the
competition and price issues. It mainly involves finalising overall price level as well as
choosing discount, how prices are calculated, supply costs, competitor's price, range of
prices and how much amount of money will be paid by customers to buy the products.
Managers at Sainsbury takes considered to be an essential element of the marketing mix
because it plays an important role in company's survival, tariffs or import duties, success,
cost of transport. This requires the company to analyse the product's value for the target
customer.
 Promotion-Is one important element of international marketing that allows a global
company to use cost effective techniques. It helps in persuading the customers to
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purchase the products. It creates awareness about a product. Chosen Retail Company
considers such tools for that purpose like publicity, advertisement, event marketing,
digital marketing, public relation, sales promotion, personal selling, and promotional
activities. Before launching the promotional programs company must share its target
market and decide the products that will satisfy more customers and bring more profit.
How consumer behaviour is shaped by internal conditions like attitude, knowledge, belief
system, family, lifestyle, culture and many more.
 Product- In international marketing a number of factors must be considered like buying
habits, religion, income, needs and wants. Refers to goods or services that company
provides to its customers to meet their demands. The brand value of selected company is
because of its products. It is the first step in marketing so, the company has to make sure
that product should not enter the last phase. Every product goes through a certain
Lifestyle-
 The growth phase
 The maturity phase
 Sales decline phase
Companies come up with new products to have an additional value as compared to the
original product in the market.
 Place decision- It’s all about distribution of a product or service to the customer. In
context of international market. The distribution strategy of each country is differ from
another due to transformation cost and profit margins. Marketers at Sainsbury guides
course of action which is related to choosing the way to sell like through intermediary or
directly to customers and how to interact with members, duties assign to others. Now a
day, the concept of Place is not only a physical address.
Produce a critical evaluation of how the marketing mix is applied to a range of international
contexts
In order to achieve positive financial results by the companies operating in global market
involves use of different marketing instruments like products, price, distribution and promotion.
Whenever a new product is launched in a foreign market then any company can adopt the
marketing mix to meet the needs of target market like people's attitude, backgrounds, buying
habits, preferences, income level, needs and wants. It should also consider the legal and social
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situations according to a particular country. It helps to ascertain its strengths and weaknesses so
that they can become competitive in the market. Marketing is the core foundation of every
business because it plays a significant role in the overall development of business.
On the basis of analysis of marketing mix for the respective company i.e., Sainsbury,
following are some recommendations which are subjected towards boosting productivity for the
said company; Quality focus: The marketers as well as managers of respective retail firm are
recommended to derive the advantage of taking effective initiatives in respect to quality
focus. Under the said technique better development of brand image of retail firm through
offering quality products will contributes towards effective goodwill for the business
firm. Initiatives to management: Better management techniques in regards to handle market
complexities and changes in behavior of consumers are being suggested to given
company. Such initiatives will direct focus of company managers in respect to better
management of inventory and relative resources of the business firm.
 Market researches: Performing regular market researches forms part of further
recommendations which can be provided to respective company in regards to their
marketing mix plan. This will initiate corrective flow of working for organization firm
and will produce better results for the corporate firm.
Explain and analyze the various international marketing approaches your client organization can
adopt
There are variety of approaches to marketing that facilitates better productivity of
selected business firm i.e., Sainsbury includes;
 Multinational marketing: In this promotional activities of the business firm are guided
through engaging marketing operations of the business firm in national operational
activities of the corporate firm.
 Global marketing: For this approach promotional activities of the business firm are
engaged towards promoting products and services throughout global markets.
 Transnational marketing: This approach takes use of globalization policy and set business
brand image in such markets.
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