International Marketing Report: Unilever Plc's African Expansion Plan

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This report analyzes Unilever Plc's international marketing strategies with a focus on entering a stable African market. It covers the scope and key concepts of international marketing, various routes to market, and potential opportunities and challenges. The report also discusses key criteria and the selection process for international market entry, along with different market entry strategies, their advantages, and disadvantages. It applies market evaluation criteria and entry strategies to Unilever, providing recommendations for its expansion plan, considering factors like high population, demand, growth rate, and domestic market conditions. The report concludes by highlighting the importance of strategic planning for successful international marketing endeavors.
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International
Marketing
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Contents
Section 1...........................................................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Overview of chosen organisation...........................................................................................3
TASK 1............................................................................................................................................4
Aanalysation of the scope as well as key concepts of international marketing......................4
Rationale for organisation to want to market internationally and description of various routes
to market that can be adopted by company............................................................................5
Opportunities and Challenges that can be presented through International Marketing to
organisation............................................................................................................................6
TASK 2............................................................................................................................................6
Key Criteria and Selection Process that can be used by company when considering which
international marketing to enter..............................................................................................6
Different market entry strategies along with examples and their advantages and disadvantages
................................................................................................................................................7
Application of the market evaluation criteria, entry strategies and recommendation for chosen
organisation............................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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Section 1
INTRODUCTION
The concept of international marketing is said to be the exchange of the products as well
as services across the national borders in order to meet the needs of the market share. The
process of international marketing consists of the customer analysis within the international
countries along with the identification of the target market. In this report, the chosen organisation
is Unilever Plc which is taken into consideration for demonstrating different aspects of this
report. It is a UK-based multinational organisation that is conducting its business operations
throughout the world in an effective manner (McCauley and et.al 2020). The Board of Directors
of the respective company want this research report regarding launching into a stable African
Market for business expansion. This report covers scope and key concepts of international
marketing and along with it, there will be description on various routes to market that can be
adopted by company. Opportunities as well as challenges to organisation in context to
international marketing will be discussed. Moreover, there will be description of key criteria and
selection process that can be used by company for internationalism. Additionally, this report also
includes different strategies of the market entry along with their advantages as well as
disadvantages.
MAIN BODY
Overview of chosen organisation
Within this report, the chosen multinational UK-based organisation is Unilever Plc that
exists in London, England. The company was founded in the year 1929 by William Lever and is
considered as one of the largest organisation throughput the world as it has around over 150000
employees within its workplace. The organisation is engaged in offering a wide variety of the
products as it has large product line such as home care products, beauty care products, personal
care products, health care products and food products. The company has around 400 brands
through which it generates large amount of profit. Most of the common brands of Unilever Plc
include Lux, Dove, Axe, Lipton, Sunsilk, Magnum and many more.
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TASK 1
Aanalysation of the scope as well as key concepts of international marketing
The scope of international marketing can be referred to performance of different business
operations that are designed to plan, promote, price and direct the flow of goods as well as
services of organisation to end users in more than a nation for earning profits. Such kind of
marketing is also defined as global marketing. In this competitive world, the concept of the
international marketing is large and is owing to increase the awareness about the process of
globalisation into the world of business.
There is large scope of international marketing and some of these include:
Exports: In context to the export, an organisation sells its finished products to the global markets
or its franchises in order to offer them an opportunity for the purpose of selling such products
and services into its local markets. This helps a company in enhancing the level of its sales
volume and thereby profitability within the business. Revenue that is generated through the
process of exports is used to make the import payments including the cost that is related to the
profit enhancement and products development (Jian and et.al 2021).
Fully owned manufacturing: An organisation that has significant interest into the global
markets may develop fully owned manufacturing facilities within the respective nation. There
are some of the factors that motivate the organisation in establishing production unit throughout
the world. These factors consist of trade barriers, cost differences and other which can help in
overall control the quality as well as manufacturing of the products.
The key concepts of international marketing cover the following points:
International Trade: This is largely concerned with the products and services that flow among
the countries. The key objective is to gain the information or knowledge regarding the influences
of the business and its financial situations on the resources that are transferred among the balance
of payment as well as country.
Comparative Marketing: This kind of marketing occurs at the time when different systems of
the marketing are analysed in a collaborative manner in order to determine the differences and
similarities among them.
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Rationale for organisation to want to market internationally and description of various routes to
market that can be adopted by company
Businesses use international marketing to enter the global market and effectively run their
operations. By creating and implementing a corporate strategy, all business processes and actions
become simpler to manage and increase income. Any company that wishes to overcome
obstacles and increase income must have a marketing strategic framework. In a changing market,
advertising by Unilever Plc is utilised to develop the company's clientele (Chien and Tsai 2021).
The following is the justification for developing marketing campaigns for the firm of selection:
High population: The primary drivers of creating promotional campaigns are the majority's
ongoing growth and shifting consumer preferences in markets where businesses may establish
themselves and have an impact on the populace. Unilever Plc may be able to increase the amount
of communities it serves through expanding its operations and increasing the market share. The
chosen company enhances revenues and profits by concentrating on this (Schwens and et.al,
2018).
High demand: Since buyers occasionally ask for items that are in style, this may be taken into
account when planning an international marketing strategy. Unilever Plc is expanding its global
product offerings through comprehending consumer demand and providing higher-quality items /
products that might affect consumers' purchasing decisions.
Growth rate: The frequency at which a country expands and operates in a challenging
environment. It will be vital for companies to establish up in a country that is not always growing
because people will not be eager to regularly purchase goods. Unilever Plc wants to expand its
company in California, America, and other countries wherein population development gives
lucrative chances for companies to operate and build enterprises, generating more income.
Domestic market: It is challenging for firms to increase income and grow their businesses
because when country's economy is both expanding and small. They both resort to international
advertisements as a consequence, which might allow them to increase income. The management
of Unilever plc uses global tools such as advertising output, profitability, and profitability in a
fast-paced environment.
To increase efficiency and income, all of these considerations encourage businesses to do
worldwide business and employ global marketing in their activities and management.
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Opportunities and Challenges that can be presented through International Marketing to
organisation
Businesses have a variety of options through international marketing, but there are also
some drawbacks (Yaacob and et.al 2021). Speaking of prospects, Unilever Plc may achieve
significant returns on capital, appropriate efficiencies of scale, new markets, and strategic
partnerships through its worldwide marketing efforts. These chances provide the firm a number
of advantages that will help it stay competitive for a considerable amount of time, but they also
have the drawback of being hard to identify and, once discovered, to take the advantage of,
which puts Unilever Plc in risky circumstances.
TASK 2
Key Criteria and Selection Process that can be used by company when considering which
international marketing to enter
An approach for expanding a business and increasing productivity is international marketing.
Every time a business intends to expand production to some other country, it must first establish
the business and manage all activities. Companies must first choose an area and country that
would enable them to effectively operate and expand the business while retaining a higher profit
margin. Market analysis is a challenging process that calls for several procedures, market
dynamics information, market analysis, and corporate investment in order to increase the sales
and income. Unilever Plc has the capacity to enter the market depending on the following
appropriate procedures:
National identity: The first step in opening a business is to choose the location and area which
will be required to choose. In order to support the creation of a firm, it is crucial for a business to
select the right country and area upon which to boost their revenues. Control is very important in
Unilever Plc's business model when deciding on the right nation and area to promote the
products or services (Nakayama and Wan 2018).
Preliminary screening: Another step required in creating promotional campaigns that may
really help a business run more smoothly and generate more cash. Sales representatives from
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Unilever Plc are now assessing international markets, particularly Australia and America, to help
the company that created the item operate and grow its core audience.
In depth screening: Executives must conduct in-depth consumer research and examine
possible investment areas during this stage. Controlling the dollar's value, rate of increase,
effective governance, GDP, and macroeconomic conditions well for Unilever Plc would help the
company's executives and progress (Anning-Dorson, 2018)
Direct experience: This is the last step in deciding which country would be best for
international sales and marketing. The management of Unilever Plc uses this phase to develop a
company by obtaining direct knowledge and maintaining a good effect on the profitability. The
chosen corporation uses each stage to determine the South Africa state that has chosen to expand
relating to the financial and improve productivity.
These stages are crucial for Unilever Plc in building its business and adopting promotional
initiatives, which might also help increase output and income.
Different market entry strategies along with examples and their advantages and disadvantages
In the perspective of the marketplace, entry plans are those commercial activities that allow
organizations to expand into new territories. This is regarded as one of the implement multiple
strategies that effectively reaches the target audience. Because this could be used to pinpoint
advantages and disadvantages, management must discuss and evaluate each option. The primary
strategies Unilever Plc can use to enter new markets are shown in the table below.
Basis Advantages Disadvantages
Direct exporting is one of the
most popular ways for
companies to market their
goods to foreign nations by
setting a shop there. It is
possible to accomplish that
with aid of internet media.
This is how businesspeople
There are many opportunities
to increase revenue and win
over customers because there
is no middleman. Profit of the
company is increased by low
costs. For Unilever Plc, it was
a chance to sell their goods on
a global scale.
This strategy is inappropriate
for small firms since it
demands a lot of money. To
create and maintain a large
clientele, many strategies are
required (Sousa and Magalhes,
2019).
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sell their items / products.
Joint venture: Underneath this
approach, two or more
enterprises conduct business
operations jointly. It really is
crucial for every company to
carry out its functions and
obligations in an efficient
manner.
One of the main advantages
about this is that it enables the
best possible utilisation of all
corporate capital. Due to the
fact that both entities share
equal blame for this mistake,
the responsibility is lighter.
There are misunderstandings,
making it challenging for
companies to operate freely
without obtaining permission
from others. The difficulties of
the business process consists
of two firms is increased by
different cultures.
Buying a company: A local
company in this industry,
although in the one where the
corporation wants to expand
its activities. One of the main
advantages of this is that it
makes it easier to comprehend
consumer wants and helping
them achieves their requests.
It assists Unilever Plc in
conducting proper operation of
the company and in meeting
customer expectations. This
approach will help this
company expand into foreign
markets and boost revenues.
It's possible that current
companies' employees lack
motivation, which reduces
their productivity.
Application of the market evaluation criteria, entry strategies and recommendation for chosen
organisation
It will be preferable to analyse growth options for a certain location that offers excellent success
chances while reducing hazards (Rosson and Ford, 2016). Wide choices for expansion are
accessible to entities in the current period. Partnership and licencing are two examples. While a
partnership offers the benefits of teamwork with other people, it also fosters power struggles
between participants from different geographical regions. In relation to licencing, it offers
advantages of utilising corporate copyrights for securing a place in the market while also
fostering aggressive competition. Unilever Plc is advised to use the licencing approach, since it
opens up additional possibilities for global development (Jian and et.al 2021).
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CONCLUSION
Many businesses use international marketing to connect with their target customers. It is
crucial for managers to utilise the market effectively since doing so may help run and manage a
business effectively in a changing situation whilst still improving sales. Since they discover
needs and supply products that satisfy them, promotional strategies play a bigger part in business
activities. It is possible to travel internationally via import, export, interrelatedness, and other
avenues. To maintain good connections and increase sales, the conflict between the international
and local is employed. Products, price, and promotion tactics are used to build the company and
improve profitability.
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REFERENCES
Books and Journals
Jian, O. Z., and et.al 2021. Effective Marketing Strategies of McDonald’s in Malaysia and
Indonesia. International Journal of Applied Business and International Management
(IJABIM). 6(2). pp.33-46.
McCauley, B., and et.al 2020. Digital gaming culture in Vietnam: an exploratory study. Leisure
Studies. 39(3). pp.372-386.
Tien, N. H., 2019. Customization and Standardization of the Business Strategy of Foreign
Enterprises in Vietnam–the McDonald’s Case and the Fast Food Sector.“. International
Journal of Research in Marketing Management and Sales. 1(2). pp.44-50.
Yaacob, S. A., and et.al 2021. A Concept of Consumer Acceptance on the usage of Self-
Ordering Kiosks at McDonald's. International Journal of Academic Research in Business
and Social Sciences. 11(13). pp.12-20.
Nakayama, M. and Wan, Y., 2018. Is culture of origin associated with more expressions? An
analysis of Yelp reviews on Japanese restaurants. Tourism Management. 66. pp.329-338.
Chien, S. Y. and Tsai, C. H., 2021. Entrepreneurial orientation, learning, and store performance
of restaurant: The role of knowledge-based dynamic capabilities. Journal of Hospitality
and Tourism Management. 46. pp.384-392.
Jian, O. Z., and et.al 2021. Effective Marketing Strategies of McDonald’s in Malaysia and
Indonesia. International Journal of Applied Business and International Management
(IJABIM). 6(2). pp.33-46.
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