International Marketing Strategy for Star of India: Analysis & Plan

This report provides a comprehensive analysis of international marketing strategies for the London-based business, Star of India, which currently offers catering services for private functions and aims to expand into the international market. It covers key concepts of international marketing, rationales for international expansion, and various routes to market, including direct exporting, indirect exporting, franchising, and partnerships. The report evaluates opportunities and challenges, such as business risks and competitive risks, while highlighting potential opportunities like increased sales and the introduction of innovative products. It further evaluates key criteria for selecting international markets, considering cultural, economic, legal, and political factors, and presents a selection process involving country identification, preliminary screening, in-depth screening, and on-site visits. The report also explains different market entry strategies, their advantages and disadvantages, and discusses the global versus local debate in marketing, analyzing the marketing mix approach in an international context and providing recommendations for Star of India to adapt its marketing mix for various international contexts. Finally, it analyzes different approaches to international marketing and methods to assess competitors, offering recommendations on how to conduct operations effectively in the international market.

International Marketing
Star of India
Table of Contents

Introduction.....................................................................................................................................3
LO1...................................................................................................................................................4
P1 - Analyzing the scope and key concepts of international marketing.....................................4
P2 - Rationalizing for Star of India for marketing its products internationally and also
describing the various routes to market that can be adopted by it............................................6
M1 Evaluating the opportunities and challenges for Star of India while marketing its products
internationally..............................................................................................................................8
LO2...................................................................................................................................................9
P3 Evaluating the key criteria and the selection process which Star of India should consider to
enter into the international market............................................................................................9
P4 Explaining different market entries and strategies along with their advantages and
disadvantages............................................................................................................................12
M2 Application of market evaluation strategies and entry criteria for Star of India................15
LO3.................................................................................................................................................16
P5 Presenting an overview of the key arguments in the global versus local debate................16
P6 Analyzing the marketing mix approach in an international context for Star of India..........18
M3 Evaluating the circumstances where Star of India must adopt a global or local approach
and also highlight the implications............................................................................................20
M4 Articulating the way to adopt marketing mix for Star of India in various international
context.......................................................................................................................................21
LO4.................................................................................................................................................22
P7 Explaining and analyzing different approaches for international marketing which Star of
India can approve of..................................................................................................................22
P8 Comparing home and international orientation and methods to assess competitors
demonstrating the implications of each of the approach.........................................................23
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M5 Evaluating different approaches of marketing and analyzing competitor in relation to the
firm and suggesting recommendations on how to conduct their operations in international
market........................................................................................................................................25
Conclusion......................................................................................................................................26
References.....................................................................................................................................27
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Introduction
The concept of international marketing is all about expanding the applications of marketing
principles over more than one geographical location. This is done for various purposes by the
local businesses but the main concern is to reach the global customers. The concept of
international marketing is explained by many of the authors and some of the common
definitions of international and global marketing are as follows (MarketingTeacher.com, 2018):
According to Johansson (2000), the definition of international marketing is given as “the
marketing activities that are coordinated and integrated across multiple country markets by the
businesses”. He added more to this that the global marketing is nothing but the big brother of
international marketing. Muhlbacher, Helmuth, and Dahringer in the year 2006 explained that
the international marketing is putting more focus on the international market rather than
focusing on the country’s market for more profit and increasing the customer base of the
company. Apart from this the local marketing is concerned with the growth of business
products in the local market only.
Based on the concept of international marketing, this assignment is dealing with every concept
that is related to the same. One of the London’s local businesses i.e. “Star of India” is taken into
consideration. Currently, the business is providing catering services and facilities for private
functions and wants to grow in the international market (Star of India, 2018).
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LO1
P1 - Analyzing the scope and key concepts of international marketing
Keegan (2002) explained that the Global marketing focuses upon leveraging the belongings,
knowledge and products of the company globally. In addition to this, the author also added that
in global marketing the businesses are focusing to provide unique and different products to the
customers as per their demand in the specific geographical areas. International planning is a
multinational process in which planning of products, pricing, distribution system, promotion
and advertising is one on a large scale i.e. globally (Terpstra, et al. 2012).
Figure 1: CONCEPT OF INTERNATIONAL MARKETING
[Source: Madrigal, 2013]
SCOPE OF INTERNATIONAL MARKETING
Import and export
In import, the businesses are importing products from the other countries and then selling
them in their local market as a part of their business products. Star of India can easily import
the grocery and ingredients from the Indian market at low costs and then use them in their
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business which can earn a large number of profits to them (Czinkota and Ronkainen, 2013). This
is because, in the UK, there is a shortage of Indian ingredients especially as Asafoetida which is
the main ingredient in almost all of the Indian recipes.
Apart from this, Star of India can also sell their Indian products in the other UK’s market
through which they can earn more profit in their business. This process is termed as exporting.
Contractual Agreements
In this agreement, two businesses are sharing the responsibilities in the business market and
many of the companies in the UK are working on the contract agreements for expanding
exponentially (Schmitt, 2011).
Joint Venturing
In this, the foreign investors are taking interest in the local business and then taking the
business into their country as well. Here the Star of India can also start a new business venture
at a new place by adding up with any other food industry business which is having a benchmark
in London (Czinkota and Ronkainen, 2013).
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P2 - Rationalizing for Star of India for marketing its products internationally
and also describing the various routes to market that can be adopted by it
Star of India has to face many issues and challenges in the way of international marketing and
expanding their products and services overseas. Following are some of the major issues that
can be considered by the Star of India while expanding its business into an international level:
 For creating an international image and brand value in the global market, it is a primary
goal for the Star of India to expand their business over international boundaries.
 The concept of international marketing will give access to the new talents and
innovation to the Star of India. The new workforce of the business will provide new
directions to the company in bringing innovation to their existing products and services.
 The production and operations of Star of India can also improve the expansion process
with the help of new technologies.
 Also, Star of India can also gain a competitive edge over its competitors by increasing
their services to the global market and increasing its customer base.
Following are some of the major routes that need to be considered by the Star of India while
expanding its business over international boundaries:
Direct Exporting
In this route, the Star of India can easily sell its products and services to their customers directly
in any of the selected geographical locations without taking help of other businesses. Indirect
exporting the Star of Business can place their services in suitable stores from which the people
can easily have access to them (Papadopoulos and Martín Martín, 2011).
Franchising
Here the franchisors are giving the license of their business activities and access to their
products and services to their franchises. Here Star of India can also form its franchises like the
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advertising and marketing franchising that will support it in its business functions like marketing
its products.
Partnership
In this business route, the host company can have a formal agreement with many companies
for operating and managing its business. For example, here Star of India can make partners like
add IT companies that can help it in managing its database and maintain proper information of
the business’s activities and processes (Lee and Lieberman, 2010). It can also add on to the
accounting companies which can help them in making proper details of income.
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M1 Evaluating the opportunities and challenges for Star of India while
marketing its products internationally
Challenges in Business Expansion
Business risk – instability, improper management and financial loss are the major risk factors
that cause failure of the business expansion and this can be faced the Star of India also. As the
company is planning to expand internationally, it will face many problems related to the
different cultures, languages, traditions and religions that are followed by the people of
different geographical areas (Kandachar and Halme, 2017). This is because the people of
London have accepted the concept of Indian food but it may or may not be adopted by the
other country’s people. So, before expanding the market, the business needs to analyze the
market of the new locations and also forecast its people’s demands.
Competitive risk – the companies that are providing better Indian food and doing well in the
local business market of the new geographical areas can also give challenges to the Star of India
as it will be new in that market.
Opportunities in Business Expansion
 By expanding the services in the global market, Star of India can have opportunities like
an increase in its sales margin. This is because the customer base of the business is
increasing and for this, the company can also adopt many marketing strategies for the
product's promotion.
 By exploring new locations, the Star of India can introduce new and innovative
products and services in the existing market. This can be done by business by making
alterations in its existing products (Douglas and Samuel Craig, 2011).
 The business can start a new chain and outlet in the new markets as it is not difficult for
the Star of India because it is a diverse change of products to the customers.
 The increase of customer base and profit margins globally can also be one of the
biggest opportunities for Star of India (Engelken et al., 2016).
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LO2
P3 Evaluating the key criteria and the selection process which Star of India
should consider to enter into the international market
As a marketing expert of Star of India, following are some of the main key criteria and factors
that are advised to be reviewed at the time of entering the international market:
CULTURAL CRITERIA
Language, taste and quality: at the time of making translations, the language criteria need to be
kept in mind by the Star of business at the time of entering the international market. Also, the
business needs to focus on good taste and quality of its services as they are the major key
criteria of success in the food and beverage industry (Mathews, et al. 2016).
Regional values & Consumer Habits
Before entering the business market, the Star of India needs to analyze the regional values of
the local communities as they are changing from place to place. The locations in which the
business wants to enter need to be analyzed by the cultural side first. Also, the customer’s
eating habits need to be analyzed by the researchers because they can be different from the
existing one. It is because; the food habits of the customers are also varying at a high rate from
person to person (Akaka, et al. 2013).
Age and other demographics
The people who are belonging form the Indian culture generally prefer the Indian cousins and
dishes. Other than this the young generations in the London also prefer the Indian products. So
before entering the new market, the age and preference of the target customers need to be
analyzed.
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ECONOMIC CRITERIA
The economic factors of a particular country need to be kept in mind before entering the new
market as it will influence the success criteria in the new market. The per capita income of the
country along with its class structure, need to be analyzed properly as they are allowing the
customers to buy the innovative products. Financial Transactions & Banking procedures in the
country are also focused at the time of entering because they are helpful at the time of
payment transactions.
LEGAL AND POLITICAL CRITERIA
Some countries are having strict laws and regulations and do not allow the foreign business to
grow in their geographical areas. This will affect the success of the business in the new
locations, so the Star of business needs to consider the laws and regulations of the countries
before entering into its market (Shenkar, et al. 2014).
SELECTION PROCESS FOR NEW INTERNATIONAL MARKET
Country Identification – it is very important to analyze the present market conditions of the
country in which the Star of India want to expand its products and services. So it would be
better for the business to research all the possible areas under the food and beverage industry
of that can support the new business in the new marketplace. Also, the factors that could harm
the business in the new location need to be considered at the time of country identification
(Papadopoulos and Martín, 2011).
PRELIMINARY SCREENING – in this process the screening of country’s climatic conditions,
climate change along with the other possibility of natural calamities need to be considered.
Also, the currency exchange rate along with the taxes and tariffs that are imposed by the local
country of the country are to be considered.
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IN-DEPTH SCREENING – In this screening process; the country’s current market along with the
future opportunities in the food and beverage industry needs to be analyzed. The marketing
strategies that the Star of India will use in the new market will be analyzed in this process which
is helpful for the business at the time of marketing (Papadopoulos and Martín, 2011).
FINAL SELECTION – considering all the aspects that are collected in the above two screening
processes, the final selecting of the country or new market location is done by the Star of India.
The country which is having stability is selected here by Star of India along with identifying local
competitors of that place (Armstrong, et al. 2015).
DIRECT EXPERIENCE – after selecting the country, the top management committees of Star of
India business need to have a direct visit to it and then experience that their assumptions and
findings are correct or not.
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