International Marketing Strategies for Unicorn Grocery in Denmark

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International Marketing
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Table of Contents
Introduction................................................................................................................. 3
LO1............................................................................................................................. 4
LO2............................................................................................................................. 7
LO3........................................................................................................................... 10
LO4........................................................................................................................... 12
Conclusion................................................................................................................ 16
Reference List...........................................................................................................17
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Introduction
International marketing is regarded as the multinational process of planning as well
as executing the promotion, pricing, conception and distribution of innovative ideas,
products and services for creating exchange, which satisfy organizational and
individual objectives. Due to globalisation and advanced technologies, most of the
business organizations are showing their interest in expanding their existing
business to new location, especially at international level. In simple words,
international marketing is quite similar to global marketing. Many of the market
researchers have defined the international marketing as the application of marketing
principles for satisfying the varied wants as well as needs of various people residing
throughout the national boundaries.
“Unicorn Grocery” is one of the famous co-operative grocery stores across the UK
premises that were founded in 1996 with the aim of providing best quality grocery
products to customers (Unicorn-grocery.coop, 2019). The company has
approximately 70 trained employees those perform to generate revenue for the
company. In 2017, the turnover of the specified company was almost £7 million and
the company is accelerating its profitability.
Contribution of marketing to business strategies, especially in an international
context will be evaluated in this study. Different marketing strategies and their
effectiveness will be discussed in this portion of the study. Along with that, key
arguments in the local versus global debate and various international marketing
approaches will be assessed in the paper for better understanding of the project.
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LO1
1. Analyse the scope and key concepts of international marketing.
International Marketing is defined as the concept of expanding a local business
into a global market through the application of marketing principles. In simple words,
it means global business activities in more than one country (Albaum and Duerr,
2011). A case study on a domestic UK based company Unicorn Grocery is
associated with this analysis. The chosen company will be going to internationalise
in order to expand its business globally. For this extension, the Unicorn Grocery will
be likely to choose Denmark as a target of their new international market.
Scope: Internationalisation gives business plenty of scopes, all being related to the
betterment of the business in future. The major scopes are discussed a here as-
 International or global marketing helps in building good relationships among
different countries. All the corporate activities like production, development and
marketing involve people around the planet. The grocery products of Unicorn
Grocery will be available at Denmark after gaining an enhancement in the
concepts of internationalisation. A peaceful relation is expected to be
established between the customers of the UK and Denmark as new clients will
definitely like to review for it’s previously sold products in the UK market.
 International markets open opportunities and reduce risks. Scopes of global
marketing increase with the opening of international markets.
 Importing helps to find potential customers internationally for business.
 Exporting is another scope opened by international marketing by which a
global business can sale its products or services outside a national border
(Ottaviano et al., 2018). Unicorn Grocery can export or import products
between Denmark and the UK as per the market requirements. For this policy
to be executed, the company should maintain a good relationship with both the
national governments in order to conduct a smooth business.
 When a business expands out to an international level, the scope of its
international marketing got increased and helped in finding more contractual
agreements. Those agreements may consist of either technical assistance or
licensing.
Key Concepts: International marketing includes finding potential customers to meet
the needs and satisfy them with goods or services. A competitively strong concept of
international marketing can attract global customers within the global environment.
The main reason for the recent growth of international marketing is the rapidly
increasing rate of globalisation. It is a broad concept which further includes
technology advancements, cross-cultural management (CCM), gradual growth in a
competitive environment and many more (Bradley, 2005). Unicorn Grocery can use
the benefits of cross-cultural management by incorporating the different cultural
aspect used in the business strategies of Denmark. Moreover, the implications of the
emerging technologies in Denmark can also help in attracting new customers as it
will be cost-effective as well as time-saving. The main difference between
international and domestic marketing is that in an international business, the
complexity is more in terms of communication and international trade policies with
respect to a domestic business.
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2. Explain the rationale for it to want to market internationally and describe the
various market routes the organisation can adopt.
International marketing has a goal for a multinational company which is directly
associated with its security for a long-term profit-making activity. In the case of a
commercial company, the basic priority should be to earn a profit in the long run in a
foreign market (Keegan, 2013). Unicorn Grocery will look to serve these purposes
as their business goals in Denmark. In order to market the grocery products of
Unicorn Grocery internationally, the company should follow the effectiveness of
international marketing as described.
The effectiveness of international marketing is-
 The joint venture is an effective application which opens a benefit in terms of
international marketing. It is the collaborative linkup of two brands for a definite
timescale (Connelly et al., 2018). For example, if Unicorn Grocery wants to
collaborate with another grocery company that is locally established in
Denmark, will surely help the newly expanded company to understand the
market demands for the grocery industry. On the other hand, both the
company is supposed to be profited after signing an agreement for a definite
timescale. Joint venturing can help Unicorn Grocery to gain a competitive
advantage over the other companies in the Grocery industry of Denmark.
 International marketing also helps in building a strong trade relationship
between two countries so that the importing or exporting can be done smoothly
between the two nations. This application can also be effectively incorporated
with Unicorn Grocery. The importing and exporting can facilitate the company
in serving many business purposes.
 Licensing is another important application of international marketing.
Licensing means official permission provided by a national government for
carrying a business smoothly without any authenticated obstacles (Teece,
2018). Unicorn Grocery can also use the methods of licensing to gain
permission for conducting business from the Denmark Government. It will
surely make the international business functions of Unicorn Grocery to
work smoothly under the laws and legislations governed by the Denmark
Government.
 Moreover, the optimum utilisation of the available resources is an important
topic to be considered when applying international marketing policies. Unicorn
Grocery would like to use all the available resources available in Denmark.
Firstly, they would like to operate an agricultural field from where they can
manage to get a continuous supply of grocery items. The main part of their
resources will be dependent on human resources. More Unicorn Grocery will
be able to involve the available human resources in Denmark; more it will get
the scopes to make a brand image or value in the perspective of a new
international market.
From the above-mentioned effectiveness of international market, Unicorn
Grocery can evaluate the appropriate market routes to meet their business goals.
Hence, it is recommended Unicorn Grocery to undergo joint venturing market
strategy in order to have a grip in the new market initially.
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3. Evaluate the opportunities and challenges that marketing internationally
presents to your chosen client organisation.
Opportunities and challenges are both considered as positive and negative business
drivers in a global context.
Opportunities- From a recent study, it is observed that most of the Danish
population are demanding organic foods from the retailers and most importantly,
they are not currently showing reliability to their supermarket retailers. Hence, there
is a window of opportunities for Unicorn Grocery to grow as a grocery retailer
establishing their brand name in the international market for by producing organic
foods and beverages (Bjerregaard et al., 2018).
Challenges- International business involves marketing challenges and risks as well.
For expanding a business internationally, a business should look after their
investments, competitors or other challenges. Aldi, Spar, Netto, Fotex, Many are
the examples of some food and grocery retailers already established in the Denmark
market which can have competitive advantages over Unicorn Grocery. In order to
overcome these challenges, the company should focus on how they can attract
foreign direct investors (FDI). Moreover, joint venturing can also be stated as a
beneficial way to overcome these challenges to survive in this highly competitive
market.
Both the opportunities and as mentioned in this above context can play a vital role in
determining the future growth of Unicorn Grocery in an international context.
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LO2
1. Evaluate the key criteria and selection process to use when considering
which international market to enter.
For an organisation to be expanded internationally, needs to select an appropriate
international market. Choosing the right international market for international
marketing is a business practise which determines the future possibilities and scopes
of growth of that business. The importance of the selection for the right international
market lies in understanding the market demands of the products or services
provided by the organisation.
The suitable international market selection process involves these following steps-
1. Understanding the objectives of international marketing
2. Understanding the parameters for the selection like the current market scenario,
government policies, international environment, firm’s resources and nature of
the competitors
3. Eliminating the markets which are not up to the mark in terms of potential, such
that, Preliminary Screening
4. Short listing of markets, such that, the process of choosing the potentially strong
markets
5. Testing the market by launching a comparatively smaller scale of products in
the market
6. Finally commercialising the product after once it is tested for an experiment
including minor changes (He et al., 2016)
After analysing the procedural stages as above, it can be concluded that Unicorn
Grocery will choose the Denmark market as an international market understanding
the market scenarios and customer demands on the retailing of organic foods. The
high demanding rate of organic foods and beverages make Unicorn Grocery
convinced to go for internationalisation in Denmark.
2. Explain, using examples, the different market entry strategies, including the
advantages and disadvantages of each.
Market Entry Strategies: For internationally expanding its business, a particular
company may include one or more than one of these following market entry
strategies-
Strategies Advantage Disadvantage Example
Acquisitions  Time-saving
 Helps in resolving
the entry barriers
 Problems arise
when
integrating two
or more
business
parties
 Not Economical
ALDI entered the
UK retailer market
using this business
strategy
Educational
Acquisitions
Provides an
involvement of human
resources like initial
Risk also involved
while the uncertain
departure of
Procter & Gamble
(P&G) uses this
market entry
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non-teaching staffs entrepreneurs
happens
strategy to enter
the UK market
Joint Ventures
or Alliance
The risks get
distributed
Chances for arising
conflicts while
operating between
two parties
This market
strategy was
signed between
Vodafone and
Telefonica for
sharing their
networks in the UK
Internal
Ventures
 Uses existing
resources
 Talented
entrepreneurs are
retained
Internal stress may
be created
BMW and Toyota
have entered the
UK market using
this business entry
strategy
Internal
Development
 Uses available
resources
 Acquisition of cost
is neglected
Time-consuming
Uncertainty cannot
be avoided
SANTANDER is an
example which
successfully
entered in UK
market using this
strategy
Licensing to
others
 Economical
 Low risk
 Rapid access to the
market
Dependent on
license
Remit Now
International
Limited entered in
the UK industry
following this entry
strategy
Licensing from
others
 Financial risk is
reduced
 Rapid access to
technology
The technological
skills may be
dependent on the
licensor in some
cases
Starbucks entered
the UK market by
using this entry
strategy
Franchising  Capitals can be
expanded easily
 The growth of risk
get minimised
(Fan et al., 2017)
 Challenges
faced regarding
innovation
 Control over
managers
become less
McDonald’s has
entered the UK
market applying
this market entry
strategy
Exporting  Operational
facilities are not
required in the host
nation
 The Internet can be
used as a tool for
exporting marketing
opportunities
 It may lose the
location
advantages in
the host nation
 Gives exposure
to the trade
barriers
 Major
transportation
costs
BP is an oil and
gas supplier
company which
entered in the new
UK market
following this
strategy
Table-1: Different market entry Strategies
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(Source: Created by the learner)
3. Apply the market evaluation criteria and entry strategies, and make
recommendations for the chosen client organisation.
International marketing can be achieved by analysing the following factors according
to their success or failure rates-
Joint Venture: Joint venture can be a key factor to run an international business
successfully. In order to incorporate this factor to Unicorn Grocery, it should be
determined at first that the Danish company with which it is going for joint venturing
is a well-reputed brand in the Danish market or not. Moreover, before joint venturing
with a grocery retailer company, its position in the industry and future goals should
also be evaluated.
Government Influence: Before starting a business internationally, a domestic
company should be well aware of the government legislations in the host country so
that it can measure its business goals in future. For example, Denmark is positioned
at one of the best nations in Europe, where business can be set up and done very
easily. Keeping these factors in mind, it can be said that, the choosing of the
international market by Unicorn Grocery can be fruitful in future.
Customer Demand: The Danish customers are emphasising more on organic foods
for maintaining their food habit. In spite of the presence of several international
supermarket brands in Denmark, Unicorn Grocery can build a strong brand name
by focusing on the cultivation of agricultural foods (Christensen and Friis, 2017).
Moreover, Unicorn Grocery also has to concentrate more on the food habits of
Denmark before starting an international business. This complication can be
resolved by hiring food experts and cultural personnel from the hoist country.
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LO3
1. Present an overview of the key arguments in the global versus local debate.
Key arguments for local market
The principle of local marketing is extremely simple. Local marketing is regarded as
a strategy that is generally aimed at capturing the local market and targeted
customers as well as meeting their expectations and needs (Isaksen, 2017). In
simple words, local market ensures efficient and smooth functioning of a range of
business operations of different business organizations like “Unicorn Grocery”.
Companies, which are operated across the local market place, are not subjected to
rise in the company’s operational cost. However, local market has limited scope and
limited numbers of targeted customers, which actually limits the organizational sales,
profitability and growth in long term (Torbaghan et al., 2016). “Unicorn Grocery” will
also face this issue of less organizational growth, scope and profitability during
conducting business operations at local market. Therefore, the company has
decided to expand internationally that is justified for increasing the revenue and
profits of the company.
Key arguments for international market
While it comes to internationalisation of an existing business organization, debate
starts. It is fact that, international market compromises of vital effectiveness and
benefits as well as risks associated with this. Due to globalisation and modern
technologies, business ventures are showing their interest to expand business
internationally, which will provide the organizations an excellent opportunity of
extending their area of target market and attracting more numbers of potential
customers. Alternatively, this will accelerate the organizational profitability and
revenue generation simultaneously (Mathews et al., 2016). Apart from that, there are
several options available to business organizations such as “Unicorn Grocery” to
expand business internationally with an ease. According to market researchers,
internationalization of business can provide more benefits to business firms
compared to local business activities. Along with this, globalisation and
internationalization has influenced business organizations using advanced and
effective technologies for accelerating the organizational productivity, sales and
profitability altogether. “Unicorn Grocery” is going to expand their existing business
to new market place of Denmark that will provide a lot of opportunities to enlarge
entrepreneurial territory.
Additionally, negative aspects are also associated with it. For an instance, the
company will not be able to continue business in the local country so that the existing
customer base of the local area will show less interest to the specified company.
2. Evaluate the context and circumstances in which the client organisation
should adopt a global or local approach, highlo9ighting the implications of
doing so.
Business organizations have to face different business circumstances in order to
sustain in the market and to continue the business operations. Different business
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organizations have their different needs and as per their needs they take the
decision of conducting business operations at local or international market place.
Circumstances arise, while companies like “Unicorn Grocery” have adequate
financial sources, stakeholders, active shareholders, workforce, resources and other
essential resources that are required for operating business functions. In this type of
business condition, business organizations always focus on improving their
expertises, adopting new technologies to influence the organizational growth and
success (Ward, 2016). Internationalization can provide these businesses all the
required resources, expertises and technologies. Along with this, international
market extends the area of target market and numbers of potential customers so that
businesses can successfully accelerate their production, sales and profits altogether.
Companies like “Unicorn Grocery” decide to expand internationally during this type
of circumstance. Through this method, companies will be able to generate higher
amounts of profits in business and the numbers of potential customers will be
increased automatically. Along with that, it will influence the business growth,
prosperity and success as well.
On the other hand, companies may do not have adequate financial resources,
expertises, knowledge and experience that are required for expanding the existing
business to new international market. This actually limits the target market area and
targeted customers’ numbers, which slows down the production rate of the company.
Apart from that, businesses like “Unicorn Grocery” has popularity and great
customer base in the local market so that most of the companies do not want take
risk of capturing new target market and building brand image in new international
market place (Shenkar et al., 2014). This creates barriers in expanding
internationally to local businesses.
The main disadvantage of local market business is that it limits the area of target
market and numbers of potential customers that affect the organizational profitability
and business growth in long term.
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LO4
1. Explain and analyse the various international marketing approaches that the
client organisation can adopt.
International marketing approach is another key consideration in conducting
business operations at international level. There are mainly two approaches to
international marketing: centralised approach and decentralised approach. Both are
important and have their different effectiveness as well.
Centralised approach to international marketing
Centralised approach to marketing is considered as one of the most important
factors in business operations, especially at international level. Within a centralised
marketing approach, most of the marketing decisions are made through the
marketing team at headquarters. Apart from that, they plan and execute most of the
marketing programs (Alftan et al., 2015). This marketing approach is considered the
most effective when:
Company can find national experts for helping the marketing team localise materials
to the appropriate standards
Marketing department of the company is extremely competent as well as has
experience working along with international market places
Company sell majority of the products and services by direct exporting
It is the case of extremely globalised market places, such as different types of
software or scientific products.
This centralised marketing approach focus upon improving in-house marketing
abilities as well as scalable procedures. It will make sure that the company has much
more control over the sales and marketing cycles as well as must be utilised for the
advantage of the company. Therefore, companies like “Unicorn Grocery” will use
centralised marketing approach for improvement of their marketing process. Apart
from that, company will use the 7ps marketing strategy that is another effective
approach to marketing and would help the organization to increase their sales
revenue and profitability simultaneously (Mohammad, 2015).
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