International Marketing Strategy for The Shed Restaurant in Malaysia

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International Marketing
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Executive Summary
This report deals with the international marketing strategy in the context of The Shed
Restaurant. This is a UK based company and wants to expand their business in
Malaysia. However, it is important to take proper market entry strategy while entering in
a new market. Application of franchising strategy will be effective for this company to
enter in a new market. On the other hand, different markets have different trends that
require different marketing mix approaches to grab the consumer attention. It can be
said that this restaurant needs to carry out a proper marketing research through short
listing the markets while entering in a new market.

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Table of Contents
Introduction...................................................................................................................... 5
LO1.................................................................................................................................. 6
Demonstration of how marketing contributes to business strategies in an international
context..............................................................................................................................6
P1 Analysis of the scope and key concept of international marketing..........................6
P2 Explanation of the rationale for the company to want to market internationally and
description of the various routes of marketing..............................................................7
M1Evaluation of the opportunity and challenges in international marketing.................8
D1 Critical evaluation of the international market and the way through which The
Shade Restaurant will adapt their marketing strategy..................................................9
LO2.................................................................................................................................. 9
Evaluation of entry to a selection of international market and the key success factors....9
P3 Evaluation of the selection process and the key criteria that are used when
considering which international market to enter...........................................................9
P4 Explanation of the different market entry strategies including advantages and
disadvantages............................................................................................................ 11
M2 Application of market evaluation criteria and entry strategies along with
recommendations.......................................................................................................11
LO3................................................................................................................................ 13
P5 Overview of the key arguments in the local versus global debate............................13

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P6 Investigation of the method through which the product, pricing, and promotional
distribution approach differs in a variety of global contexts........................................14
M3 Evaluation of the context and circumstances in which The Shade Restaurant
should adopt a local or global approach.....................................................................15
M4 Determine how to articulate the marketing mix of The Shade Restaurant in
different international markets....................................................................................15
D2 Critically evaluate how the marketing mix is applied to a range of international
contexts...................................................................................................................... 16
LO4................................................................................................................................ 16
P7 Explain and analyse the various international marketing approaches your client
organisation can adopt............................................................................................... 16
P8 Compare home and international orientation and ways to assess competitors,
outlining the implications of each approach................................................................18
M5 evaluate various marketing approaches and competitor analysis in relation to an
organization and make recommendations on how they should operate in an
international context................................................................................................... 20
D3 Make recommendations on how organisations should be structured to maximize
the opportunity in an international context..................................................................23
Conclusion..................................................................................................................... 25
References.....................................................................................................................26

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Introduction
Internal national marketing is considered as a global marketing application that satisfies
dynamic needs and requirement of residing consumers. An international market can be
defined as business performance related to business activity that are designed plan,
price, promoted and use to direct organisational flow with its goods and services. In this
context present study paper is focused to narrow down marketing contribution with
respect to business strategies in international marketing context. The Shed Restaurant
is the chosen organisation UK based, internal national market entry mode and key
factors has been illustrated. The Shed has been introduced in the study for
understanding the requirements of entering into the International market. Malaysia is
regarded to be one of the developing places in Asian countries so the organisation has
focused to set up the business over there and has marketing consultant to avoid the
issues. This paper has entailed key arguments among local versus global context.
Analysis the various international marketing approaches

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LO1
Demonstration of how marketing contributes to business strategies in an
international context
P1 Analysis of the scope and key concept of international marketing
International marketing refers to the performance of a business designed to promote a
product to customers in more than one country for getting much profit. Due to the
globalization, it becomes an urge for every company to spread its business in the
international market (Jones et al. 2017). Nowadays, the restaurant business becomes a
popular business in every country. In UK this business is growing rapidly to boost the
economy. The Shed is a local restaurant of UK situated in West London (Theshed-
restaurant.com 2019). This restaurant is popular in the local market due to its delicious,
creative cooking, shabby chic interiors and vibrant atmosphere. In order to grab a large
number of customers, the management has decided to make their business global by
entering in Malaysia market.
Nowadays, every business needs to be competitive in various challenging environment.
However, there are many factors to adopt international marketing. One of the most
important factors is the profit (Guiet al. 2017). Maximum business owners seek internal
marketing to gain huge profit and strong brand recognition. Global market contains new
possibilities and huge opportunity for increasing market share. This is a big scope for
every business owner to increase their profit. Research shows that restaurant business
is a growing business in today's international market, which highlights a huge
opportunity for The Shade Restaurant while entering in a new country.
The concept of international marketing shows the performance of a business in
designing the product, price, and promotional strategy. The entire activities are done by
an organization to introduce its business in more than one nation (Holcomb et al. 2018).
In the context of The Shade Restaurant, the marketers need to reveal the scope of their
business in the international market before entering a new country.

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P2 Explanation of the rationale for the company to want to market internationally
and description of the various routes of marketing
There are various reasons for which organizations are seeking to internationalize. One
of the vital reasons is to increase sales and profit that leads the organization to be
global (Norellet al. 2015). However, if The Shade Restaurant looks beyond its domestic
market it will get a huge opportunity. Sales in the local market require a reasonable
price due to the limited number of consumers. On the other hand, sales in the
international market can also be at a high price. This factor leads the organization to
adopt an international marketing strategy. Businesses that are established in a
developed country seek to grab the market in a developing country. This enables them
to establish a short and long term security for their business by improving their
production capacity, financial structure, and employment.
Often the business cannot offer a variety of services in the domestic market. However,
the international market provides an opportunity for growth through market
diversification (Lin 2016). For example, The Shade follows British culture while serving
food in UK market. Hence, their service variety is limited in the domestic market. By
entering in a new nation this company can offer service that is not offered in its home
country. International marketing leads businesses to serve consumers who are situated
abroad. Moreover, international marketing will help The Shade Restaurant to gain new
ideas about services, products and business methods that will boost their business in
both domestic and international market.
There are various routes through which an organization can market internationally. One
of the major routes is research. The Shade Restaurant needs to carry out vast market
research before they adopt any strategy. On the other hand, by using website an
organization can market its product in the international market (Tulung 2017). Working
with international distributors is an effective way to expand business from the domestic
to the international market. The Shade Restaurant is a small organization thus it would
be difficult for them to bear the huge expense of international marketing. By making a
joint venture with a local company of foreign market would be helpful for them to expand

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their business in the international market. This joint venture will reduce discrimination
against this restaurant while operating in a foreign country.
M1Evaluation of the opportunity and challenges in international marketing
International marketing includes both challenges and opportunities that need to
understand properly for every business while taking international marketing strategy.
One of the major challenges is the localization. It is important for The Shade Restaurant
to understand the social platform while selecting a specific location in a foreign country.
As argued by Carpenter and Dunung (2012), compliance with the legal norms of a
foreign country is another major challenge of international business. For example, The
Shade has decided to expand its business in Malaysia. Hence, they need to comply
with the National Agro-Food Policy proposed by the government of Malaysia. This
policy is taken to ensure the quality of food during its supply. Non-compliance with the
legal norms may lead this organization to face legal challenges in this foreign market.
Apart from this understanding, the foreign culture is another big challenge for the
hospitality sectors while entering in a new country. The Shade Restaurant needs to
understand the culture and trend of Malaysian people before delivering food.
Apart from these several challenges international marketing includes a vast opportunity
for The Shade Restaurant. Increased market size is a great opportunity for international
marketing. The Shade Restaurant has a local market in UK that highlights its small
market share. By entering in the international market this organization can enhance
their market share along with increasing their customer base. However, the international
market has a strong economy and it is rich with technology. Expanding a firm's
operation allows the organization to reduce the total cost of production (Onyango and
Wasike 2018). Therefore, this restaurant will gain core competencies by sharing
knowledge with other countries in the international market. This knowledge sharing will
help this local restaurant to develop efficient food and cost-effective food product. On
the other hand, a huge market is crucial in acquiring returns from investment. This
would help The Shade Restaurant to generate new product line to attract the
perspective of customers.

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D1 Critical evaluation of the international market and the way through which The
Shade Restaurant will adapt their marketing strategy
In order to enter the global market every organization needs to adopt specific strategies
that will help them to grab various international markets. As a local firm, The Shade
Restaurant needs to follow multi-domestic strategy but in order to be a global firm, they
should adopt global strategy to get a stable position in various nations. As argued by
Randle and Dolnicar (2017), it is hard for a small enterprise to be global as international
marketing includes high cost. As a small organization, The Shade Restaurant should
adapt a partnership strategy, which is an effective global strategy. This partnership
strategy would be helpful to enter in various markets. Having end to end logistic
providers will help the local business to get the finished product in the international
market. However, by taking B2B marketing strategies The Shade Restaurants will be
able to market their product in both developing and developed countries. As commented
by Bengtsson and Stein (2018), B2B marketing and partnership marketing are effective
to reduce cost. As criticized by Randle and Dolnicar (2017), partnership marketing may
reduce operating cost however; it often includes low profit and complication that may
harm the entire business in the international market. Hence, it is important for The
Shade Restaurant to carry out vast market research before taking any global strategy
for entering the international market.
LO2
Evaluation of entry to a selection of international market and the key success
factors
P3 Evaluation of the selection process and the key criteria that are used when
considering which international market to enter
Entering a new market is not easy for a business as it includes a proper selection to
identify which country is suitable for a particular business. As stated by Douglas and
Pejoska (2017), selection criteria include competition level, country performance,
market demand, political risk and trade barriers. In order to enter in Malaysia market,

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The Shade Restaurant needs to analyze the performance and demand of the hospitality
sector in this particular country. However, they need to identify the major trade barriers
in this country to reduce legal complication. In order to select a particular market, it is
important for an organization to use proper selection methods. At first, The Shade
Restaurant requires conducting a preliminary screening to understand the size,
population, infrastructure and political condition of Malaysian market. However,
shortlisting is necessary to choose which market would be suitable for their business.

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P4 Explanation of the different market entry strategies including advantages and
disadvantages
There are several market entry strategies that are often used by the marketers to enter
a foreign market. For example, direct exporting is a common market entry strategy
that allows a business to sell their product directly in a foreign market (Jones et al.
2017). The major advantage of direct exporting is to reduce all cost and confusion of an
intermediary. The Shade Restaurant can connect directly with their customers that may
make their business more secure. Another strategy is licensing through which a firm
gets the right to use a product or service of another firm. This strategy is not suitable for
all businesses as it damages the unique feature of a business. Franchising is suitable
for rapid market expansion. The major advantage of franchising is to transfer any
business into other markets. This helps a business to reduce the risk of business failure.
The cost may be higher in this process, which is the major disadvantage of this strategy.
Therefore, the monitoring process becomes intrusive in the franchising process that can
hamper international marketing (Tulung 2017).
Apart from these joint venture is the particular form of partnership business that is
followed by small organizations to enter a foreign market (Dunung 2012). The major
advantage of the joint venture is profit at low cost. Therefore, by taking this strategy The
Shade Restaurant will be able to get a strong learning ground, which will boost its
marketing in the international market. However, flexibility is restricted in this process,
which is the major disadvantage of this strategy.
M2 Application of market evaluation criteria and entry strategies along with
recommendations
The Shade Restaurant belongs to the hospitality industry and wants to expand its
business in the international market. For this purpose, this company needs to evaluate
different markets based on specific criteria. However, The Shade Restaurant is situated
in UK, which is a developed country. Hence, to get more customers and huge revenue
they this restaurant needs to select a developing country. By analyzing competition