International Marketing Report: BTEC HND in Business - Unit 40

This report delves into the intricacies of international marketing, using Unilever as a case study. It begins with an introduction to international marketing, differentiating it from local marketing, and outlining its scope and key concepts. The report then explores Unilever's rationale for international expansion, examining the benefits such as increased sales, improved profits, and innovation. It analyzes various international market entry routes, including exporting, licensing, franchising, and joint ventures, and recommends the most suitable strategy for Unilever. The report also discusses the key criteria and selection process for entering international markets, including market analysis and risk assessment. Furthermore, it evaluates the advantages and disadvantages of different market entry strategies. Finally, it provides conclusions and recommendations on how and why Unilever should enter the international market, summarizing the findings and offering actionable insights for global marketing success.

International Marketing

Table of Contents
Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Introduction to the organization ............................................................................................3
Define international marketing and differentiate to local marketing.....................................3
Scope and key concepts of international marketing...............................................................5
Rationale for an organisation to want to market internationally............................................6
International marketing entry routes and which one the company should adopt ..................7
Key criteria and selection process company should use when entering international market8
Market entry strategy advantages and disadvantages of each..............................................10
Conclusions and recommendations on how and why the company should enter the
international market. ............................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
International marketing is the applications of the different principles of marketing in
order to satisfy the need and demand of the different people resides across the global boarders. It
is a marketing that is performed on a worldwide scale so as to reconcile or taking the advantage
by grabbing the different market opportunity that helps to keep the objectives of the business. It
is useful for the companies who want to expand their business at global level and it has been
done to improvise the profitability of the business at larger scale (Cateora, 2020). This report is
based on the Unilever that is the British multinational consumer company and provides the
diverse products and services as like food, energy drink, ice cream, tea, cleaning agents, beauty
products, and personal care products and it is the largest producer of soap at global level. This
report includes the understanding of marketing contributes to business strategy and entry
selection in international context.
MAIN BODY
Introduction to the organization
Unilever is larger leading national organisation and one of the oldest multinational
companies and have served their products and services in 190 countries. Unilever has worked
with the 400 brands and it is the dual listed company as Unilever N.V that is based on
Rotterdam, and Unilever plc, based in London (Cavusgil, 2018). They have organised the
business in major division as like Home Care, Foods, Refreshment (beverages and ice cream),
and Beauty & Personal Care and having the research and development centres at India, UK, US,
Netherlands and China.
Define international marketing and differentiate to local marketing
International marketing is the procedure through which the products and services of the
business will get provided in the global market so as to make the effective promotion and using
the suitable pricing and distribution strategy thus right services get served at right time. It will
help to take the better revenue under which the attention of the customer will also get developed.
International marketing define the performance of the company that is developed the the suitable
development and flow of price, promotion, plan so as to maintain the certain supply of good and
service to the customers of more than one country and that all is done so as to make more profit
and sales (Misirlis, 2018).
3

Features of international marketing: There are some certain features of the international
marketing that are as explained below as:
 The marketing activities and actions of the business get performed all across the different
borders.
 It facilitates the exchange and working in between the business of customers of different
nations.
 The international marketing has been done in order to satisfy the need and demand of the
international customers.
 The company must get performed this by promoting the global business environment and
have changes the decision making accordingly.
For example, the business expansion must have been done as by using the acquisition
with the company that is already established over there and with this working ability, size, scope
of company get enlarges (Ibrahim, 2019).
Basis Domestic Marketing International Marketing
Meaning It is related to the marketing that get
performed for the local people and
covers the national boundaries
(Christofi, 2018).
In this the products and services get
served in the international market and the
international boarder will get covered.
Area served The local areas are beleaguered. The international customer of different
country will get targeted.
Government
interference
It is low. Relatively high.
Business
operation
In particular country i.e. home nation. More than one nation.
Use of
technology
It is used to arrive at domestic markets It will used to get in reach to more
customers.
Capital
requirement
Less Huge
4

Scope and key concepts of international marketing.
International marketing provides the superior opportunity to the business by which the
captured range will get enhanced and brings a large scope that is as defined below as: Imports: It is useful to meet the requirement of customer by resold the international
product in domestic market (Gao, 2018). Exports: It is used to increase the profit and sales of the business by selling the product in
newer market at different nation. Management of international operations: In this the products and services get assemble
in different country and sell out in different country to develop better economy.
 Joint venturing: It is the collaboration in between the different companies that get makes
to expand the business at national level.
 Availability of broader market: It is the aspect as under this the company is able to
gain the broader market while using the global marketing and with this they have served
the better services in the new market.
 Required broader competence: The competency is a factor that motivates the business
to work on the better achieve ability. As much the competition is that much the working
performance and capabilities of the business get expands.
 Involve high risk and challenges: There is a huge risk while working at global context
and with this the company also worked to get over from the different challenges that is
associated with the sustainability that every business demands (Bocconcelli, 2018). But
to get worked over the new standard it is not easy to make effective changes in the
working prospect and criteria of business.
Analyse of scope:
 Establishing a brand: The scope of the business get analysed by the brand establishment
as with this the company is more acknowledged by the new marker along with have make
the respective profit as per the need and demand of market.
 Franchising: It is the aspect under which the company will able to open the franchisee of
their business as it defines the wider acceptability of the company while working at
global marketing.
 Technical and management knowledge: It is relative to the scope of the business while
performing the international marketing as in this the company is able to manage all the
5

technicalities by which easily get over from all the relative situation with more comfort.
In addition as much the better management the company has that make more easy for
them to complete the task within the certain period of time.
The international marketing support the business to expand their product and services at
global level thus the larger market will get captured which is more important to manage the
foreign trade by following the adequate guidance at national level and it helps to manage the
business with ethical and legal basis (Hollensen, 2019).
Rationale for an organisation to want to market internationally
Unilever have rationale and with this target the international market by accepting the
different benefits by which the sales and profit will get developed that will improvise the
working standard of the business in systematic manner and some of the major reasons due to
which Unilever expand the business in German are as follows: Increase sales: Unilever uses the marketing platform to grab the attention of the
customers with that served the different products of beauty and care that helps to make
better expansion. Improve profits: Unilever export the products and services in German and from their
emphasis its sales and attain better profits (Hult, 2018). Increased innovation: In this Unilever has induced rapid changes in the business and
induce the better food and beverages by which more healthy products get served to
customers. Economies of scale: Unilever get the cheap labour in German as compared to UK by
which their production cost will get reduced by which more effective profit will get
gained.
 Emerging markets: As German has provide the better opportunity in corporate world so
that Unilever get the flexible surround to establish their market.
There are some risks as well that get faced by the Unilever in international market and as
defined below as: Global economy: It is the vital factor that affect the performance of business by which
trading get performed and the tax amount will also get levied by which profit will get
affected (Ju, 2018).
6

 More competition: In the international market more competition will get faced as a lot of
companies get worked in the same services.
 Tariff barriers: It is related to the barrier as from which the marketing cost will affect the
cost of the business.
Rationale for Unilever to market internationally:
 Increases sales: It aid the business to increases the sales of the Unilever as they have
served the diverse range of product and services in the market by which they are able to
make the certain advancement as per the suitability of marketplace.
 Improve profit: As Unilever works over the wider range with the support of different
kind of product and services with this there profit generation also get enhanced. The
company works with the variety of product by which have easily make the certain
relation with the customers and also perform the effective marketing by which able to
enhance the productivity of the business (Jiang, 2018).
 Increases innovation: Unilever is able to introduce the efficient innovation and
creativity within there offered product and services by which there market acceptance and
accessibility will get enlarged. The customer are always been looking forward for the
advancement in the product and also get attracted as well with this Unilever make
innovation in product so as to attract the large number of customers.
International marketing entry routes and which one the company should adopt
The business must get follow the different route to get enter in the international market
under which the successful implementation will get induces and that is as defined below as: Exporting: It is a process through which the products and services will get served in the
different country and get transferred by the shipping by which the potential customer will
get attracted by which more profit will get gained (Morgan, 2018). Licensing: It is a procedure through which the agreement will get performed in between
the two businesses by which one company will provide the license to other by which the
foreign trading will become easier and helps to deliver the best services. Franchising: It is the process through which the business will expand their products and
services by giving right to other parties that are called as franchisee with that brand right
and its name provided to them.
7

 Joint venturing: It is the process through which the company will perform the
partnership in between the foreign company by which the effectual deal will get
performed by which better profit will get gained (Nyuur, 2018).
 Exporting and importing activities: It is a strategy under which the Unilever perform
exporting and importing by which there market acceptance will get increases. With the
support of these activities the profit and revenue of the business get enhanced.
 Acquisition of existing operations: In this the Unilever must perform acquisition and
with this have worked collectively with the other businesses that are already well
established in the newer market and with this they are able to expand the working
liability of the business.
 Merger: It is based on the mixing of two business that are working within the similar
fields and that is done to enhance the market performance and market share. Thus
Unilever also get perform the merger with the company over there are with this enlarges
the market and profit share.
Unilever can use Joint venture that helps to get expand the business with more perfection in
German and with this they have induce different strategy by which the customer reach will get
more improvised by which the cheaper expansion get performed that help to make more profit.
Key criteria and selection process company should use when entering international market
International market define the geographical area at where the company conducts its
business outside its home boundaries. There are some key criteria to enter in international market
and as define below as:
 Take an appropriate look out at finance, team, leadership along with product and services
as it provide the working the better understanding about that is that company is able to
perform the operation outside the business or not.
 The company must have select the market as per the suitability of the business in future
period of time by which potential ability of company get managed.
 The adequate planning and executions must have done by managing the working and its
reflective by which appropriate strategy get developed as per the assigned budget.
The selection process include the preliminary research that is conducted by the company so as to
make the business international as with this relative strategy and policy get performed to make
the suitable expansion.
8

The selection process of the Unilever by which they could choose the different country by
which easily expands the business and with that follows the certain criteria that are as defined
below as: Environment and market analysis: It is vital for the business so as to analyse the
different factors by which the negative impact will get reduced so that they have perform
the PESTLE analysis by which the macro environment aspect will get analysed in easiest
manner (Radulovich, 2018). Analysis of competition: It is also be needed that before making the expansion the
company will get make analysed the different strategy by which they could easily attain
the customer attention by which the better positioning will get attained in effectual
manner. Distribution channels: It is channel through which the company will manage the supply
of different good and services to the suppliers by which they could more easily get attract
the customer by which the efficient supply chain will get maintained to enhance the
customer satisfaction.
 Demand analysis: In this the company will analyse the different demand of the customer
about the relative product and services and according to that make the innovation by
which larger number of customer will get attracted (Sapouna, 2018).
The market selection process comprise following steps: International marketing objectives: In this the international expansion objectives of the
business will get resolute. Parameters of selection: Property available, worldwide selling atmosphere, advertise
situation, scale of competition, supporting situation etc. must be evaluate. Preliminary screening: In this the screening of different factors will get affect will get
analysed by the business. Short listing of markets: As after the markets screening the bazaar with most
encouraging situation for business are diminutive scheduled Evaluation and selection: The short listed markets are considered that are based on cost
advantage examination and viability revise and the most constructive souk is particular. Test marketing: The diminutive areas in the certain market are tested with business
products by which the customer need and demand will get analysed and measured.
9

 Commercial production: As after realization a positive retort commercial production of
goods is taking place by the business.
Market entry strategy advantages and disadvantages of each
Marketing strategy refer to the overall plan that is developed by the business so as to reach
out to the prospect on customers. There are a variety of strategies under which Unilever can go
into the German market by which they have expanded the business at international level in
systematic manner (Morrison, 2018).
Evaluation of strategy in internationalisation process:
As the time passes the competition has been raised on another level and with this the
companies also get used the different diverse strategy by which there working ability and
capability will get increases. The company must have uses the diverse range of strategy by which
have attract more of the customers over the limited period of time and also to retain them for the
longer period of time.
Licensing: It is the form in which the official permission get permitted by the company
to the others in the form of agreement as with this the authority get transmitted so as to use the
different services of the company as by there own .
Advantages:
 Enormous opening to generate reflexive revenue.
 Effortless access in worldwide market. Risks implicated are of a smaller amount.
Disadvantages
 The maltreatment of scholar goods of business can arise.
 Dependence of licensee on licensor.
 A lot of competition in existing marketplace.
Exporting: It is used while performing an international trade of the goods and service
that is produced by the company as from one country to another and includes the involvement of
customers authorities as well.
Advantages
 Opening to discover new marketplace and its demands.
10

 Economies of scale can be increase. Enhanced competitive advantage can be expanding in familial market.
Disadvantages
 The costs of exporting can be more in former country.
 Inadequate knowledge of international market.
Franchising: It is the marketing concept that is chosen by the company in order to
expand the business with this have provide the licence to the other to work on the similar
business model, brand and its right to the other party.
Advantages
 Charge efficient development of industry Novel markets can imprison and market can be prolonged
Disadvantages
 Vast capital speculation is concerned (Armstrong, 2018)
 The logicalities and rules and regulations can augment the cost of company
Joint venture: It is basically in between the two entities that generally shared the
ownership, risk, profit, loss etc.
Advantages
 It is an simple method to capture marketplace by live market Both parties will share the risk and cost.
Disadvantages
 There can be conflict in the connecting and implicated parties.
 It can be tricky to administer the industry and labour force of together company
Conclusions and recommendations on how and why the company should enter the international
market.
As from the above discussion it could be analysed that Unilever must have expand the
business in a lot of places but get expand more in German and by which get paired up with the
joint venture that is easy for them to get make the better connection in between the existing
market of German (Bertoli, 2018). It is even more helpful to make the better ideas by which
more creative and better output will get attained by which the effectual approach will get used by
which the cost efficiency and effectiveness will get measured. It is also be more helpful to
11

manage the different resources by which more profit will get attain in systematic manner and
there are some recommendation that are as defined below as:
 The maximum profit will get shared by both the companies by which the profit margin
will also get more developed.
 The businesses must have use the different strategy and leadership approach by which the
working culture and behaviour of the company will get improvised.
 It is also be more vital that the company will give the preference to the customer and
fulfil their demand and requirement in effectual manner.
12