International Marketing Report: UHT Milk's Chinese Market Expansion

This report examines the international marketing strategies for UHT Milk, a UK-based company seeking to expand into the Chinese market. It begins with an overview of the company and its rationale for internationalization, emphasizing the opportunities presented by the Chinese market. The report then applies relevant trade theories, such as factor of production, comparative advantage, and absolute advantages, to the company's market selection process. It explores various entry strategies, including exporting and licensing, and analyzes the PESTLE framework to assess the political, economic, social, technological, legal, and environmental factors influencing the company's expansion. Furthermore, the report identifies potential barriers, particularly language and cultural differences, that UHT Milk may encounter. Finally, it critically evaluates the implementation approach for internationalization, offering insights into the company's strategic decisions and providing recommendations for successful market entry and sustained growth in China. The report highlights the importance of understanding market dynamics and adapting strategies to overcome challenges in the international business environment.

INTERNATIONAL
MARKETING

Contents
Executive Summary...............................................................................................................................3
INTRODUCTION.................................................................................................................................4
TASK....................................................................................................................................................4
Provide brief an overview of their chosen organization and their reason for going international
market................................................................................................................................................4
Demonstrate Application of their relevant Theory/Models which are related to their process of
International market selection and Entry Strategies...........................................................................6
Trade Theories...................................................................................................................................6
Entry Strategies.................................................................................................................................8
Discuss typically barriers which will faced by an organization to expand when they do their
business on internationally................................................................................................................9
Language and Cultural Barriers:........................................................................................................9
Critically evaluate their relevant implementation approach for their internationalisation process for
their specified target market............................................................................................................10
CONCLUSION...................................................................................................................................12
REFERENCES....................................................................................................................................13

Executive Summary
In this repot it will based on International Market this is very important to know about the
organization that if they want to expand their business in International Market then they need
to follow all legal procedure when they expanding their business then only it is valid for
management to run their organization in market, otherwise it will forced by government to
shut down their organization in market. The management must know their target market and
before entering and select the new place for their organization first they need to do proper
examine of their organization in market about their taste and preferences then only it is
possible for management to run their business successfully on international level in market.

INTRODUCTION
For any organization if they do international business then it creates so many opportunities
for them which help management to grow and expand their business in market. International
business gives higher profit to their organization as compare to domestics profit and their
organization also run at large scale in market so it becomes easy for organization to capture
customer in market because when any business do international business then it creates good
image in market and they easily make trust bond with their customers (Arici and Arici, 2021).
This report will be based on UHT Milk which was established in UK around in the year 2012
and now they want to expand their business on international level in market. In this report it
includes brief discussion on their organization and it also includes that which country they
prefer and they recommended for their business. In this report it also includes the application
of their relevant theory or models which related to their process of international marketing
and what strategies they choose for entry and it also includes the barriers that will faced by an
organization while they expanding their international business.
TASK
Provide brief an overview of their chosen organization and their reason for going
international market
In UK, there is UHT Milk is there who have a great demand in UK by their citizen because it
provide a good quality of bakery products and it make good image in market so people easily
trust on their product in market. The UHT Milk owners by seeing the demands they start
thinking to expand their business so that they able to full fill the demands of market. The
management of UHT milk wants to expand their business Chinese country because they have
great source of income in the world so Chinese country citizens easily afford the products of
UHT Milk and it creates a good opportunity for UHT milk that they capture more customers
in market and they generate more revenue in their organization (Asseraf and Shoham, 2019).
It has been observed that in UK the Chinese citizen has consumed more products of UHT
Milk, So management can get best opportunity that they can easily available there products
by expansion of their organization in Chinese market so that customer don not need to come
UK to purchase this products. So for this they have to find out the best and suitable place
where they start their business in Chinese market. The management of UTH Milk have to do

PESTLE analysis so that they able to find the best and suitable new market in the country.
Let’s do in brief about PESTLE analysis of Chinese market in below:
PESTLE ANALYIS: PESTLE evaluation is beneficial tools and techniques in figuring out
and analysing various factors that might have an effect on commercial enterprise and its
performance (Curiel, 2020). This evaluation will assist respective business enterprise to take
higher choice on the way to result in increase and improvement of commercial enterprise.
 Political Factors: These things have considerable effect on overall performance of
SME enterprise. Political thing encompass numerous rules this is set for companies.
China has strong political parties and their system so as to have an effect on the
respective activities which they performed for their production of an organization
(Desbordes and Richelieu, 2019).
 Economic Factors: China is having a very strong financial system is constantly
developing and its super increase may have considerable effect on SME enterprise
this is working in Chinese marketplace. This thing will cause growth the shopping
strength of residents and enhance income of respective organizations.
 Social Factors: This thing consists of society lifestyle in addition to the manner
wherein clients are behaving. Attitude and perception of clients in the direction of
UHT milk will have an effect on their income and overall performance of respective
enterprise in marketplace area (Donthu, Kumar, Pattnaik and Lim, 2021). It is
important for UHT Milk SME enterprise to do not forget concept and possibilities of
clients even as providing it’s to population of their Chinese citizen who are the
customers.
 Technological Factors: Recent and trending generation will have an effect on the
overall performance of SME enterprise this is undertaking organization activity
performance in Chinese marketplace area. This is one of the important things so as to
have an effect on the increase and improvement of respective enterprise. Innovations
in generation have effect over price chain shape of Milky manner UHT milk
organization (Farrell, 2020).
 Legal Factors: This consists of framework in addition to group this is advanced for
preserving protection and safety of clients and employees. Legal thing will cause
notable effect on overall performance and productiveness of company. It is important
for respective enterprise to do not forget all of those elements for easy functioning of
respective company.

 Environmental Factors: It is vital for SME Company to do not forget this thing even
as growing and creating UHT milk merchandise. Environmental thing encompass
weather, weather change, legal guidelines concerning pollution, recycling and so on.
These elements assist SME enterprise to offer excessive exceptional merchandise to
clients without harming surroundings and society.
This will help management to know about which new market place is good for their
organization. They also prepare for hurdles which will impact their organization activities
performance. This is very effective for management that they have to prepared plan so that
they don’t have to face many problems in market and they able to accomplish their objectives
in market. It will help management to sustain long term in market and they can gain
competitive advantages in market. The management will able to expand their business in
different country from their revenue so that they make their brand image more popular in
market (Foltean, 2019). If UTH Milk also produce those products which is need by customers
in market then it will able to know get huge customer support towards their brand in market.
If management want to expand their organization in different countries then it will be
necessary for management that they have to do proper examine of their organization by
PESTLE analysis in market.
Demonstrate Application of their relevant Theory/Models which are related to their
process of International market selection and Entry Strategies
In this management of an organization have to applied and follow Trade theory in
organization for process of International Business in market selection and they prepare entry
strategies accordingly for their organization (Gbadamosi, 2019). Let’s discuss in brief about
trade theory for their organization and it will affect their process of International business in
market.
Trade Theories
There are extraordinary sorts of alternate concept and this will assist for organization to take
higher and powerful selection for boom and development. Trade theories have useful for
organisation at the same time as stepping into new worldwide marketplace in addition to
overseas alternate. There are numerous alternate theories inclusive of element of production,
absolute benefit and comparative advantages (Gillespie and Swan, 2021). Trade theories are
taken into consideration to be useful for powerful allocation of assets in addition to
specialization.

Factor of production
This idea is advanced via way of means of Eli Heckscher and Bretil Ohlin this is focusing of
these elements of manufacturing to be able to assist in developing powerful merchandise.
This change idea is advanced with the purpose of gaining comparative blessings via way of
means of growing merchandise that applied all the ones elements that have been abundance
with inside the use of their country. Factor of manufacturing idea include different factors of
use of an in manufacturing which includes land, exertions in addition to capital (Gilmore,
2020). All of those elements are supportive in imparting budget for the funding in
equipment’s and plants. All the ones elements or assets this is in greater call for are steeply-
priced and assets this is in terrific deliver are cheaper.
Comparative Advantage
This is an exchange concept that allows organization to advantage comparative benefit. This
may be describing as a potential of financial system to provide commodity and items at
decrease operational price. It is crucial for organization to expand services and products at
minimal price to be able to earn greater profits. Comparative benefit offers possibility to
corporation if you want to promote merchandise and decrease price (Gökşen and Karabacak,
2018). This will assist corporation to draw greater purchaser in addition to comprehend
robust margin of sales.
Absolute Advantages
This concept is advanced with the aid of using Adam Smith in 1776 and the reason of making
this alternate concept is to suggest the specialization of merchandise in addition to
department of labour. Absolute gain may be describe because the distinction in potential of
agency in addition to international locations to fabricate items efficiency. This refers back to
the absolute gain of specific country for manufacturing of products (Hagen and Zucchella,
2018).
Benefits of theory in Chinese market
Factor of merchandise may be maximum appropriate alternate idea whilst thinking about
marketplace of China. As in step with this idea it's far decided that fee of aid or characteristic
will cause have effect on deliver and call for of product. China marketplace has greater
sources and hard work on the way to help in engaging in enterprise project in higher way.

High deliver of hard work and different sources will cause engaging in project in fee
powerful way. This will assist Milky Way employer to provide services and products in
powerful way as elements of manufacturing will help in well-timed deliver of UHT milk
merchandise to customers.
Entry Strategies
The entry strategies which management select to expand their organization in new market by
UTH Milk and the entry strategies are exporting, licensing, joint venture, Company
ownership and may more. Let’s discuss in brief of entry strategies which are most suitable by
their organization of UTH Milk.
Exporting: In UTH Milk can do exporting which entails their advertising and marketing the
goods you produce with inside the international locations in that you intend to promote them.
Some groups use direct exporting, wherein they promote the product they manufacture in
worldwide markets without third-celebration involvement. The companies which have to
promote their luxurious products or they have to buy their items in worldwide markets with
inside the beyond regularly select this method.
Licensing: The organization of UTH Milk can do Licensing take place while one
organization transfers the proper to apply or promote a product to every other organization.
An organization may also select this technique if it has a product it really is in call for and the
organization to which it plans to license the product has a big market. For example, a film
manufacturing organization may also promote a faculty deliver organization the proper to
apply pictures of film characters on backpacks, lunchboxes and notebooks (Heggde and
Shainesh, 2018).
Joint Venture: In UTH Milk organization there are some corporations try to decrease the
hazard of getting into an worldwide marketplace with the aid of using growing joint ventures
with different corporations that plan to promote with inside the worldwide marketplace. Since
joint ventures regularly feature like large, impartial corporations as opposed to a aggregate of
smaller corporations, they've the capacity to earn greater sales than man or woman
corporations. This marketplace access approach consists of the hazard of an imbalance in
agency involvement however each events can paintings collectively to set up honest
techniques and assist save you this issue.

Company ownership: If their organization of UTH Milk have plans to promote a product
across the world without handling the cargo and distribution of the products you produce, you
would possibly bear in mind buying an current organization with inside the use of a in that
you need to do business. Owning an organization set up for your global marketplace offers
your company credibility as a neighbourhood business that may assist raise sales (Heidari,
Valipour and Bakhtiyari, 2021). The organization possession fees have greater than
maximum marketplace access strategies however it has the ability to result in an excessive
ROI.
Franchising: A franchise is a series retail agency wherein an person or institution client will
pay for the proper to control agency branches at the agency's behalf. Franchises arise
maximum generally in North America however they exist globally and provide organizations
the possibility to enlarge overseas. The organization of UTH Milk have franchising normally
calls for strong symbol recognition, as customers for your goal marketplace ought to
understand what you provide and feature a choice to buy it. For famous brands, franchising
gives corporations a manner to earn an earnings whilst taking an oblique control approach.
Discuss typically barriers which will faced by an organization to expand when they do
their business on internationally
The barriers faced by an organization of a management when they expand their business on
internationally level so management have to take care that and prepare themselves before
when they enter their organization in international market. There are many legal procedures
which will creates problem for their organization which will hamper their organization to run
their business process on international level. For UTH Milk organization it is compulsory that
they have to take care of all barriers which will creates problem for their organization when
they expand their business on internationally level (Hu, 2020). Let’s discuss all different
types of barriers face by organization of management when expanding their business on
international market.
Language and Cultural Barriers:
It ought to move without announcing that in case you don’t talk the equal language as your
customers, communique goes to be a challenge. It’s sincerely feasible to run your product
descriptions via Google Translate and it is a terrific device in sure circumstances, however
we might now no longer suggest completely depending upon it to symbolize any corporation
in a brand new country. This will be creates problem for management of UTH Milk for their
organization (Hüttner, 2018).

Local Competition: Well, manifestly that would position you at a drawback proper from the
start. You will ought to be address their export costs and tariffs, doubtlessly slower
turnaround times, and the trouble of managing currencies even as their British counterpart
can simply dealing with having two different currencies and it just have a pounds sterling.
Taxes Codes & Compliance Issues: When UTH Milk have to deal with their tax and it may
be a headache even if they most effective working in a unmarried nation. Dealing with taxes,
fees, and price lists for worldwide change may be a prime impediment for a number of
companies – particularly smaller businesses. They additionally want to be aware about
buying and selling requirements and policies. Failing to satisfy compliance policies in a
country they are trying to increase them into effective positioned a break for their growth
plans however additionally create extra prices in your house country.
Supply Chain Risk: When organizations of UTH Milk have to Imports, exports, delivery,
and logistics are all matters that massive companies have departments dedicated to. That is
due to their fact of coping with their deliver chain that crosses countrywide limitations may
be an actual challenge. If they have delivery items from the area to Chinese Form UK then it
will need to deal with geographical distance. However, the price and time worried in delivery
are not the most effective problem. These are all dangers they have to face whilst buying and
selling internationally, and they will want to stop how all this things done in order to avoid
them and understand their situations.
Critically evaluate their relevant implementation approach for their
internationalisation process for their specified target market
When management want to expand their business in international process and then they need
to specify their target market of their organization. In this organization have carefully
examine all process which is required they cannot skip any procedure for expanding their
business and for their target customers (İpek, 2020). In organization of UTH Milk have to
approach their business on international level so it includes important process which they
need to follow and they also have to specified their target customers.
Choose Your Expansion Country: UTH Milk of organization is using dependable and
correct metrics compare the marketplace elegance of every country below their consideration.
Look for the high-quality match with their specific products and services (Javalgi and
Russell, 2018).

Conduct Market Analysis: The management of UTH Milk have to use tools and techniques
like Porter’s Five Forces and the conventional SWOT evaluation may be useful in figuring
out the benefits and drawbacks of putting in a commercial enterprise in unique countries. As
you examine your options, pay unique interest to the outside environment, given that this
could be the maximum giant departure out of your cutting-edge operations.
Plan for Market Entry: UTH Milk organization have to cutting-edge commercial enterprise
version paintings nicely with inside the new country? To efficaciously input their brand new
market, they could need to take into account obtaining a nearby commercial enterprise to
seize their centre commercial enterprise expertise. In this way, they may get entrance fee to
nearby understanding or make a strategic alliance with a present organization (Katsikeas,
2018).

CONCLUSION
From this above report it has been conclude that if organization wants to expand their
business o international level then there are very crucial steps which are very necessary for
management to adopt in their organization. This report also concludes the proper and brief
discussion on chosen organization and why organization wants to expand their business on
international level. This report also concludes the most appropriate theory and models which
are related to their process of their international business market selection and their entry
strategies. This report also concludes the different types of barriers which will faced by
management of an organization while they expanding their business into new market and this
report also conclude the relevant implementations approach for their internationalisation
process for their specified target customers.

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