International Marketing Report: Subway's Global Market Entry

This report delves into the realm of international marketing, using Subway as a case study for its expansion into the Myanmar market. It begins by defining international marketing and its rationale, discussing various market entry routes like exporting and joint ventures. The report outlines the key criteria for market selection, focusing on economic, social, and political factors, and analyzes the advantages and disadvantages of different market entry strategies. It also examines how the 4 Ps of marketing (Product, Price, Place, Promotion) are adapted in different international contexts. Furthermore, it compares home and international orientation, assessing competitors and their implications. The report highlights the importance of cultural dimensions, organizational factors, and experience in successful international marketing. It concludes by emphasizing the significance of market evaluation, consumer needs, and promotional strategies. The report provides an executive summary, background information on Subway, and an analysis of its market position and expansion plans, offering insights into the complexities and strategies involved in global market entry and expansion.

International Marketing

Table of Contents
INTRODUCTION...........................................................................................................................4
Explain the rationale for it to want to market internationally and describe the various routes to
market the organisation can..................................................................................................16
Key criteria and selection process to use when considering which international market to
enter......................................................................................................................................16
Explain, using examples, the different market entry strategies, including the advantages and
disadvantages of each...........................................................................................................17
Analyse how 4 P's approach differs in a variety of international contexts...........................18
Compare home and international orientation and ways to assess competitors, outlining the
implications of each approach..............................................................................................20
CONCLUSION..............................................................................................................................21
REFERENCES..............................................................................................................................22

INTRODUCTION
International marketing consist of applying principles of marketing to satisfy wants and
needs not only at national level but also at international level for enlarge business opportunities.
In this process, business activities held for more than one nation or parent country which known
as global marketing. It can be possible with the help of designing marketing mix by analysing
organisation's strategy as well as by identified customer's needs and wants at world wide.
Purpose of report
This report is based on scope and concept of international marketing and rationale to go
in international market. Evaluation criteria while entering into international market and their
strategies with their pros and cons. It also elaborates about key arguments about global and local
market with difference in marketing mix strategy in different markets. The main purpose of the
report to get benefits of international expansion and find out factors that affect at time of expand
business opportunities.
Background of organisation.
This report is based on Subway which is an American privately owned fast food restaurant
franchise that initially sells sandwiches of submarine and salads and become one of most fast
growing franchises in whole world and currently it has approximately 42,000 stores in 100
countries and it not deals in large fast food section. It deals in majorly food chain and focus on
giving delight experience to consumers.
Market position:
Subway segment their market by Country operational program, store operational program
and market operational program. The main market of subway is their sandwiches and consumers
are middle and upper class people. The organisation wants to expand their business in Myanmar.
Executive Summary:
International marketing is based on strategic process that created in home country of an
organisation in order expand their business size in different countries. For this organisation
requires to create strategic planning so that they can create their roots on international
boundaries. Subway wants to expand their business in those countries where they can easily
build direct connection with target customers. For this, they can analyse target market and best
entry option through which firm can get maximum competitive advantages as strategic alliances,
joint venture and so on. All these activities will be classified while firm identify effectiveness of

local and internation business which can be possible through effective debate on such topic. In
this procedure strategic procedure of firm take a place that assist in providing desired results to
firm in effective manner.
Scope of international marketing:
According to Hannah fleishman international marketing focus on providing providing
products and services according to global consumer demand.
According to Arpit srivastava International Marketing is defined as the performance of
business activities created to plan, price, promote, and direct the flow of a company’s goods and
services to consumers or end users in more than one nation for a profit and objective.
Meaning of international marketing:
Marketing is a business activity and process that used to creating, communication,
analysing and distributing business services in target market. International marketing related to
the performance of various business and their activities design to coordinate plan, price and
promotion for direct flow of products and services to end users for more than one nation motive
of earn profit ( Akaka, Vargo and Lusch, 2013 ).
Difference in international and domestic marketing:
Domestic marketing covers an small area on other hand in international market it covers
an large sphere. In domestic market less government influence its works and activities on other
hand in international market it impacts on government works and activities.
There are various activities that associated with business such as development,
marketing and production in context of high tech goods to interact consumers from all over
world. With help of consumer interaction in national market they can easily interact from
consumers of other countries because they have distinctive brand image in national market by
recreation and commercialisation. It has wide scope that can be illustrated with the help of
following attributes (Baack, Harris and Baack, 2012).
Importance in global arena:
World peace:
The one of important factor that influence to international marketing that it helps in build
an healthy relationship with other countries while deal with them and builds an strong
relationship with them.
Global markets reduce risk and open opportunities:

Scope of international marketing assist to open gate of global market to do business and
enlarge business opportunities. When an organisation produce products and services at national
level can be much cost effective and that nation become hub of export activities. If an
organisation going global their significant portion of their revenues from outside of parent
nation.
Major types of businesses:
The major types of businesses consist in which
Service Business.
Service business are recognised subset of an economic services and share their
characteristics. In service industry includes intangible products and services.
Merchandising Business
merchandising business consist from which an individual interact daily. It is an business
in which products and services should be finalised and sells to an ultimate consumer.
Hybrid Business:
In hybrid business consist of in which they use traditional methods of distribution but
also use modern techniques to expand their marketplace.
Cultural dimension:
Culture is an important attribute in which consist of norms, values and ethics which vary
from organisation to organisation and gives an definite path so that objectives should be achieve.
Rationale for international marketing:
Imports:
It is one of easiest form of international marketing that helps firm to go in global market
when firm only operates in domestic marketplace. It can be only possible when products of firm
in national market is in demand and then they can import these goods in global market. For
example, Subway basically deals in fast food industry as the requirement of such services are
very high in each market so that firm can import their business services indifferent market.
Organisational:
organisation factors helps to make its importance in market majorly. With the help of it
organisation can grab attention of large no. of consumers.
Factors that influence international marketing:
Organisational:

Organisational factor are very important factor that helps in expand business
opportunities in case of if organisation is flexible enough then it can easily adapt changes.
Domestic:
Domestic taste and preferences are also very important factor that helps in build products
and services according to needs and wants of consumers.
At global level some factors that are uncontrollable in which consist of product, price,
place, promotion, people, physical evidence and process consist in it. It is one of important factor
that an organisation have to consider before building international marketing strategies.
factors that influence internationalisation:
Global also uncontrollable:
There are 7 ps of marketing that are product, price, place, promotion, people, physical
evidence and process.
Factors that influence internationalisation:
Experience (Domestic and International):
Experience is one of important factor which owner have, that support and enables them to
beat in adverse situations and comply with challenges in positive manner.
Capability (HR):
capable staff and their contribution is one of important factor that helps in behave in
positive manner and give their best while deal in international market.
Networks ambition:
Network is an important attribute that helps while expand in international market, with
help of network an organisation can easily expand its market in international market.
Learning:
Learning is an important attribute that helps while expand in international marketplace,
past experience and learning give experience to deal in adverse situations.
Role of marketing:
Marketing in international spheres helps to grab attention of large no. of consumer base
by examining their needs and wants in proper way. Marketing is an important tool that helps to
reach at large consumer base by accessing their emerging needs and wants and enlarge business
opportunities.
Entry routes:

Joint venture:
joint venture is an partnership agreements in which two companies invest money for self
interest of each other to gain profit and enlarge business opportunities.
The main advantage that brand loyalty of both the organisations increase in that case but due to
some hazardous effects it impacts on profitability of both the organisation.
Exporting:
Exporting is one of important entry strategy in which an organisation export products and
service in another country in another market.
It is very advantages for an organisation to enlarge business opportunities in different countries
and expand business share. But some due to cultural diversity it fails to give best attribute in
organisational development and enhancement.
Evaluation criteria based on economic condition with political stability of an another country
with strategies that use by an organisation are major factors.
In their main strategies consist of differentiation in which they lead with new products and
services in internation market.
Key success factor of international marketing:
 Market should be evaluated in proper manner by political, economic and social factors.
 Products and services should be frame according to consumer needs and wants.
 Strategies should be differ from localised market and from their strategies so that differ
products and services should be offer to them.
 Different kinds of promotional tools and techniques should be adopted that helps in reach
at large consumer base.
 Proper segmentation.
Criteria and selection or international markets selection criteria.
Before selecting right kind of market firm have to check its viability in proper manner
such as its economic, social, political working conditions that are major attributes that helps in
taking important decisions.
The importance of choosing the right international market:
choosing right kind of marketplace helps to organisation in expand and enlarge business
opportunities and give delighted experience to consumers. It also helps in expand market share in
domestic marketplace so that helps in becoming a leader.

The international market entry selection process:
The international marketing entry evaluation process is an five tier process and the main
purpose is to collect or gauge foreign market to grab large opportunities of product and services
to get success (Felzensztein and et.al ., 2014). In five steps consist of country identification,
preliminary screening, in depth screening and final selection and at last direct experience.
Country identification:
The first and foremost aspect before enter into foreign market place that is choose best
country in which all conditions should be favourable enough. In that case might be simple match
is necessary to grab opportunities such as two countries share same or similar heritage. As
Subway is going to expand their business in Myanmar market so it need to study about taste and
preference of their consumers.
There are various considerations which international market to enter into new business
should be kept in mind which are as follows:
Subway is planning to expand their food chain business in Myanmar because it is
emerging market with significant potential. Due to government reforms, it has improve their
business climate and provided with favourable conditions for entering into new foreign market.
Myanmar is considered as party to ASEAN- Australia-New Zealand Free Trade Agreement
(AANZFTA) that delivers benefits to Australia businesses in tariff reduction and elimination,
cooperation and economic engagement and supply chain opportunities. Currently, Myanmar has
52.65 million population with 7.1% GDP, income level per capita is US$5,540 (Doing Business
in Myanmar, 2019). It has free and open policy for new business so it is great chance to increase
their market share and profits. The people of Myanmar are very food and like to taste new dishes
which is great chance for increasing profits.
In Myanmar there are 27,000 above food and beverage companies and only 24,000 are
registered. Out of those, 5% has functioning waste water treatment system. It is very important
for Subway to consider these factors while operating their business in Myanmar for protecting
environment and system. The main motto of Myanmar is to make their place clean, green and
save from pollutions. This can provide positive impact to the organisation and their working
style. Before entering into any market, enterprise should keep in mind regarding their GDP, per
capita income then only it should enter into foreign market. If Subway can analyse such factors

before coming to Myanmar market then it can easily survive, increase profit, growth and
revenues.
Opportunities and Challenges:
There are both opportunities and challenges while expand in international market that
organisation have to bring product in international market by considering ethical values and
norms that are important for an organisation to give best attributes.
On other hand when an organisation fail to build products in ethical manner it impacts negative
on its brand image.
In legally organisation have to follow rules and regulations of international marketplace that are
sometime hazardous for them. On other hand following legal considerations helps them to take
government support.
Risk Management and Contingency Planning in relation to volatile markets:
Risk management and contingency planning is an important attribute in case of volatile
marketplace because planning helps in taking action before any adverse condition arise in
context of an organisation. Risk management is an important factor to determine factor that
reduce risk and eliminate it at maximum level.
Market entry strategies:
Direct exporting:
Direct exporting is one of most important method to expand or enlarge business to select
directly in market to break and capture new marketplace (Demangeot, Broderick and Craig,
2015). For example as Subway aimed to expand in international market In Myanmar then
organisation have to get product and services into Myanmar market and observe their reaction or
response so that an organisation can assume positive outcome out of them.
Advantages:
It helps in expand large market share by evaluation of market possibilities.
Disadvantage:
There are high risk in that entry strategy and affect on organisational profitability.
Partnering up:
The another method or tool to going global that is partnering with some another same
field organisation in foreign market that helps in marketing of products and services. In this case
Subway can get a partner that just invest money. In that scenario organisation have to check out

viability of co partner that it can actually can contribute in economic and market expansion of
Myanmar. Evaluation of best partner to gear up business and enlarge business opportunities.
That organisation uses partnering with other organisation to enlarge business opportunities.
Advantages:
It is one of best strategy to expand in market because through it an organisation can
expand in international market too.
Disadvantage:
It is not suitable in context that sometimes other organisation mistakes have to face to
another organisation too.
Success factors in international marketing:
There are some factor that are major that are as follows:
 Intercultural competence
 Unique products and services
 Market intelligence drives quality of services.
 Structured market development process and many more.
 Customer taste and preference observation.
Global Vs local debate in international marketing:
To better understand market and its various considerations an organisation have to
understand various aspects with helps of an organised debate that should be based on different
basis that are as follows:
Key arguments:
While going global by companies they face potential scope and effective retranslation of
web and its content in multiple languages and way by which an organisation can communicate
with local users. In today's globalized world firms always wish to operate at global market to
reach at that level some challenges face by organisation (Kaynak, Wong and Leung, 2013).
Organisation have to follow goal of global operation and also accountable for local differences.
While conduct in foreign market companies have to understand major attributes that influence
choice in local marketing and standardised global marketing. That vary from according to
countries in marketing mix encompassing business strategies. The main dilemma in local and
international marketing concept is that same product could be sold across all boundaries by
implementing accordingly to local marketing strategies. By adopting contingency theory that

stages about that is no one method is best in all circumstance so for local and foreign there are
distinctive strategies should be adopted to enlarge business opportunities (Majaro, 2013). By
unifying products, services and distribution channels, sales and their promotional strategies
should be unite in standardised form to differentiate in both local and global marketplace. In
local and global market needs and wants of consumers are different accordingly to their culture
so to give delighted experience to them organisation have to build overall homogenization of
needs through out world to commonest justification of marketing strategy. The local does not
provide more profits as compared to foreign market. As Subway already knows their taste and
preference of their local consumer and fulfils their requirement whereas entering into new or
global market requires research that increases cost which is high.
After analysing local and global debate, it can be concluded that Subway need to adopt
global approach that can lead to maximum profits and increase of market share. Apart from this,
firm can know more about other consumers and their requirement.
Pricing in international market:
As per the above mentioned, it has been analysed that Subway is expanding its business
in Myanmar. Before expanding its business company should examine the market and its targeted
customers. If company target young people, who have high per capita income they can fix high
prices. But on the other hand if per capita income is low, they should charge moderate pricing as
it already sell expensive products.
Technologies to support international distribution:
Hardware:
Hardware is an important techniques to record all necessary knowledge and information
to reach at desirable goals and objectives. They use kinds of techniques to enlarge consumer
base. In major hardware include computerised system and telecommunications.
Telecommunication:
Telecommunication is an transmission of signs, symbols and messages with help of
wires, radio and optical and sound information.
Computerised system:
It is an composed computer system and controlled function or process. It composed of all
computer, hardware, system and installed devices.
Software: