International Market Entry Strategies: A Case Study of Superdrug

Desklib provides past papers and solved assignments. This report analyzes Superdrug's international marketing strategies.

INTERNATIONAL MARKETING

Table of Contents
INTRODUCTION......................................................................................................................................................... 2
TASK 1............................................................................................................................................................................ 3
P1................................................................................................................................................................................. 3
P2................................................................................................................................................................................. 5
M1................................................................................................................................................................................ 6
TASK 2............................................................................................................................................................................ 7
P3................................................................................................................................................................................. 7
P4................................................................................................................................................................................. 9
M2............................................................................................................................................................................. 11
TASK 3.......................................................................................................................................................................... 13
P5............................................................................................................................................................................... 13
M3............................................................................................................................................................................. 15
P6................................................................................................................................................................................... 16
M4............................................................................................................................................................................. 16
TASK 4.......................................................................................................................................................................... 18
P7............................................................................................................................................................................... 18
P8............................................................................................................................................................................... 19
M5............................................................................................................................................................................. 21
CONCLUSION............................................................................................................................................................. 22
REFERENCES............................................................................................................................................................ 23

INTRODUCTION
According to the World Trade Organization, the international business has been raised
from 1951 to 2010. In current scenario, there are many companies which working in
International market (Akaka et al., 2013). International marketing is a broader concept
which involves many elements in it. When a business organization provides services and
products across the national boundaries is generally known as international marketing. It
has been observed that the level of competition has been increased after international
marketing and the companies are making different and innovative strategies to gain
competitive advantages from the market. International business is helpful in maintaining
sustainability in the global business environment (Armstrong et al., 2015).
This assignment will be discussing the different approaches and framework of
international marketing (Bengtsson et al., 2010). Superdrug has been selected to
understand the concept of international marketing. There are different advantages and
disadvantages of international marketing which will be presented in the report.
Superdrug is a popular organization of UK which provides B. Skincare & Make-Up and
other health and beauty products and services to the customers. There are many
competitors of Superdrug. The company is working in retail industry and has not expanded
their business in other areas (Berthon et al., 2012). Now the company is planning for
expanding their business with the help of entering into the international market.

TASK 1
P1
The organizations mainly enter into the international market in order to gain profit and
brand image from the market (Buhalis and Crotts, 2013). It has been observed that the
sales volume of business organization has been enhanced after entering into the
international market. Superdrug provides affordable services in economic prices which
are appreciated by the customers. It has been found in the review of the customers that
here services and facilities are good as compare to other business organization. There are
some key concepts of international marketing which are described in context to
Superdrug (Christou, 2015).
IDEA OF INTERNATIONAL MARKETING
Multinational marketing
This is a type of marketing in which business organizations provide their services in
different areas and countries in order to gain profit (Crooks et al., 2011). Multinational
marketing business is a concept in which organizations work in different areas and
situations as per the needs of the customers.
Export Marketing:
In this concept a company provides products and services to the customers across the
national boundaries (De Mooij, 2010). The organization need to follow the legal procedure
to export their products.
International Marketing:
Trading one country to another country is called as international marketing (Grissemann
and Stockburger-Sauer, 2012). This concept is followed by many business organizations in
order to enhance their brand image in the global business environment.

Domestic Marketing:
Domestic marketing can be seen in the national boundaries. In this concept the consumer
and the organization bot belong to the same country (Haggerty et al., 2012). It can be said
that conducting business in the national boundaries is known as domestic marketing.
Global marketing:
Global business marketing can be helpful in enhancing the brand image of the organization
in global business environment (Haynes, 2010).Superdrug can use the global business
marketing to enhance their brand image.
SCOPE OF INTERNATIONAL MARKETING
Export
International shipment of services and products is known as export. In this concept a
company provides products and services to the customers across the national boundaries
(Hsu, 2012). The organization need to follow the legal procedure to export their products.
Import
Purchasing good and services from the other countries in a legal way is known as import.
In this the nation purchases the product from other nation.
Re-export
Re-export is a procedure in which one country purchase products and services from other
country and resell it in the other areas to gain more profit.
Procedures and Actions of Marketing
There are different policies and standards for managing the international business which
needs to be followed by the organization for taking actions in the market (Huang et al.,
2011).
Trade block and their impacts

There are some important trade measures which are mainly used by the organization to
manage the international market successfully (Huang et al., 2011).

P2
The concept of international marketing can be adopted by the organization with the help of
selecting an appropriate route (Hudson and Thal, 2013). There are different routes of
international marketing but the organization must select the route as per the situations of
the business. The different routes are defined above:
Opportunistic Development
This is one of the most effective routes to enter into the international market. In this,
Superdrug can gain competitive advantages and other opportunities from the market by
which they can earn profit and reputation in the international market (Johansson, 2010).
Following Customers Abroad
This is the stage which states that the business organization must have knowledge about
the foreign trends and the requirements of the customers there. It will be helpful in
managing the business in international market successfully (Majaro, 2013). By knowing the
demands of customers abroad the organization will be able to complete it appropriately.
Following Competition Abroad
The market analysis will be the most effective method to know the level of competition in
the international market (Mauri and Minazzi, 2013). Following the competition of aboard
can be helpful in developing accurate plans and strategies for entering into the
international market.

M1
There are different challenges and issues which need to be faced by the organization in
order to enter into the international market (Park et al., 2015). Superdrug needs to
maintain strong and effective strategies in order to develop healthy reputation in the eye of
customers and other business organization.
OPPORTUNITIES
 Superdrug is having the opportunity to gain competitive advantages from the
market.
 The company is having opportunity to enter into the global business environment.
 The company can sell effective and comfortable services and facilities to the
customers in order to gain strong brand image in the market (Park and Oh, 2012).
 The company can develop effective plans and strategies in order to enhance the
efficiency of business for working in global business environment.
CHALLENGES
 The company is not having strong financial condition and for entering into the
global business environment that can be a big challenge for the business (Ragland et
al., 2015).
 It is tough to understand the policies and standards of a new market place.
Recognition of customers’ behavior is also a big task for the organization.
 Follow up of government rules and regulations in a different market place will be
challenges for Superdrug (Perlmutter, 2017).
 The existing competitors and their relations with the customers can be barrier in
the success of the organization.

TASK 2
P3
SELECTION CRITERIA FOR ENTERING INTO THE INTERNATIONAL MARKET
There must be appropriate criteria for entering into the international market (Ragland et
al., 2015). Superdrug can gain success in the international market by selecting appropriate
criteria for entering into the global business environment.
Political risks:
There are many political risks which need to be handles by the business organization at the
time of entering into international market. At global business organization political risk can
be seen in companies.
Market demand:
The company needs to analyze the market demand and environment before entering into
the international market (Rothaermel, 2015). Superdrug should evaluate the market
demand for gaining success in global business environment.
Trade barriers:
The company needs to face different trade barriers and challenges at the time of entering
into global business environment. Superdrug can manage the trade barriers by following
the policies and standards of the market place.
IMS- INTERNATIONAL MARKETING SELECTION
This is the process which is followed by the organization which has desired to enter into
the international market (Sapouna et al., 2018). With the help of this process a business
organization can select an appropriate market segment where the company can earn more
profit and brand image. Superdrug is using STP Segmentation, positioning, and targeting
model which is really effective in selecting the place, position the product and targeting the

appropriate group of customers. In the international business IMS is the best process to
select accurate market segment and customers (Schniederjans et al., 2015).
Figure- selection process for international market
[Source: Sigala et al., 2012]
With the help of this process a business organization can select an appropriate market
segment where the company can earn more profit and brand image (Perlmutter, 2017).
Country identification, preliminary screening, In-depth screening, final selection, and direct
experience are the essential stages of this model which needs to be followed by the
organization.
Superdrug selected this model to choose the appropriate market segment where they can
earn profit and brand image (Smaliukiene et al., 2015). Identification of the market can be
done by the market analysis which will be helpful in gaining the information about
customer’s preferences and choices. It will also helpful in knowing the competition level in
the market so that the organization will be able to make the strategies and plans
accordingly (Perlmutter, 2017).

P4
The organization need to maintain different and effective strategies in order to manage the
level of competition and challenges in the international market (Bengtsson et al., 2010).
The effective frameworks and approaches can be really helpful for the growth and success
of the organization. Superdrug wants to expand their business by entering into the global
business environment for which they need to create effective strategies and plans.
EXPORTING
Exporting is a process in which the company provides services and products to the
customers across the national boundaries. This process is completely managed by the legal
laws and formalities of nation (Akaka et al., 2013). This process is mainly helpful for
enhancing profit of the business organization.
Advantages: Exporting can be helpful in enhancing the profit and brand image of the
organization.
Disadvantage: This is a risky process in which the organization is bound to follow all the
legal procedures and policies (Bengtsson et al., 2010).
FRANCHISING
Franchising is a procedure in which an organization transfers their ownership to others in
order to enhance their brand image in the market. This process is also helpful in increasing
the profit of the organization.
Advantages: The organization can use this method in average financial conditions.
Disadvantage: The other nations have their different legal frameworks and trade secrets
which are not known by the organization and that can be a disadvantage for the business
(Buhalis and Crotts, 2013).
TURNKEY PROJECTS

Turnkey projects are the type of projects which is mainly adopted by the organization for
entering into the international market successfully. The turnkey projects include the
process of export and import which is helpful in improving the brand image of the
company in different locations and nations.
Advantages: This is helpful in entering into the international market easily (Christou,
2015).
Disadvantage: This can be risky for the organization as they need to follow the different
types of rules according to the nation.
MERGERS AND ACQUISITIONS
This is a famous procedure which is mainly adopted by the organization to earn more
profit in the business (Crooks et al., 2011). This is one of the most effective techniques for
entering into the international market. In merger one company merge with the other
company and share the profit and loss. In acquisition a company acquires the ownership of
other company and come together as whole in the market.
Advantages: Merger can be helpful for the average company to merge with the successful
and reputed company for entering into the international market.
Disadvantage: The Company can loss their brand image and profit in this process because
it is risky to trust other organization (De Mooij, 2010).