International Marketing Plan: Zenith Pizza's Global Market Entry

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International Marketing
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Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
Task 2...............................................................................................................................................7
Task 3.............................................................................................................................................10
Task 4.............................................................................................................................................15
Conclusion.....................................................................................................................................19
Bibliography..................................................................................................................................20
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Introduction
International marketing refers to the use of marketing principal to expand business in more than
one country and satisfy the needs of customers worldwide. The study analyzes the international
marketing strategy. The study includes four sections. The first section analyzes the contribution
of the market in the international business context. The second section evaluates the strategy for
entering new markets worldwide. The third and fourth section includes the standardization of the
marketing plan and evaluation of marketing efforts. The organization Zenith pizza is chosen for
the analysis. Zenith pizza is a European cafeteria, which is famous for their vegetarian-friendly
servings (Webcache.googleusercontent.com. 2019).
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Task 1
Introduction
This section of the study analyzes the international marketing scopes and skills. The key concept
of the International market is that the market outside the origin nation of an organization. The
strategy of exploring the global market is called international marketing. International marketing
is the source of cross exchange of currencies, cultures, lifestyle, and others of the respective
nation. The companies, which have successfully established their business globally, are called
multinational companies (Cavusgil et al., 2014). The business strategy needs to be highly
developed to accomplish the marketing goals. There are many ways to enter a market in an
opportunistic way. In order to expand the business, the company needs to identify the challenges
and opportunities first. The main aim of international marketing is to make a new customer base
globally. The scopes are described below.
International bonding- International marketing helps to establish a healthy relationship between
nations. An organization can get many loyal international customer bases. The activities like
development and others can be achieved by marketing internationally.
Risk reduction and the opening of opportunity - the global opening of any organization can
lead to new opportunities. Foreign currency can be earned and exchanged.
Joint venturing- Brand associations can be made in this way. The brand associations help to
attract new customers so the joint venturing will lead to the development of brand equity in other
nations (Dai et al., 2014).
The rationale for an organization to market globally
Competitive market- The risk of competition is lesser in the global market. The competitive
national market plays an important role in an organization’s globalization. International
marketing also helps to attract new customers, which is beneficial for the brand’s growth (Martin
and Javalgi, 2016)
Availability of resources and labors- The organizations can get sufficient amount of labors and
resources at a very low cost (Arensman et al., 2015). If the organization spends less cost in
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production then there is a chance of lowering the product price, which will help to drive
customers.
Advantages- the company will be able to focus on producing those products more, which can
help them in marketing internationally. For example, a country is better at producing wine and
another different country is better at producing coffee. The countries can produce for each other
so that they will be able to explore other countries.
Domestic political issues- the major driver of global marketing is political issues and
governmental policies. The domestic policies can sometimes affect the business environment.
The globalization of the market helps to generate revenues from the international market while
the political condition of a country is not stable.
Zenith pizza should expand their business globally as the resources and commodities can be
available at a low price in other nations so that will be helpful for cost saving. The market will be
a bit less competitive than the domestic market. The opportunity will help Zenith pizza to
generate more revenues and new customers.
Entering a new market can affect the business of an organization favorably or unfavorably. The
globalization of a market may unlock new opportunities as well as threats. The critical analysis is
conducted.
Opportunities Threats
 If the company manufactures a good
quality product. There is a chance of
earning a strong customer base and
higher revenues. The market in Japan is
very large and the customers are more
willing to pay money for a good quality
product. Zenith pizza should collect
information about the demands of
customers of that market. The brand
 A company should always evaluate the
essential factors before entering a new
market. International marketing
strategy can have several layers. The
international market may seem
attractive to the business heads but the
products of UK are much more
expensive than the regular product so
there is a chance of reduction in sales.
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can establish itself by providing good
quality food product.
 The brand needs to immerse itself in
that market and learn about the
demands of the local market. It takes a
longer time to understand the
international market and make
decisions on it but once the company
understands it will easily grab the
market share of that country.
 The labor exploitation may be
beneficial for Zenith pizza in any other
country’s market. There are some other
countries where labors are available at a
very low cost so if Zenith pizza starts
exploring that country’s market it will
be beneficial for the company in saving
cost.
 The brand can improve their equity and
earn foreign currencies, which will help
to build the company more strong. The
company will get global recognition.
Zenith pizza will have to face a tough
time. For example China is said to have
a larger market but most of the people
of China are poor so they would not be
able to afford the product of Zenith
pizza.
 Foreign laws and regulation may not be
suitable for entering a new market. UK
has decided to leave the European
Union which has made the political
condition of the country unstable so the
new entrants of UK market will have to
cope up with a challenging situation
and the brands of UK will not be able
to market globally (Clarke et al., 2017).
 International marketing is totally
dependent on the supply chain. The
distribution channel has to be managed
very well so that the company can earn
from that. If Zenith pizza wants to
expand business globally there may be
some risks like unavailability of some
spices or expensive exporting cost.
Table 1: Opportunities and threats of a company
(Source: Created by the learner)
Conclusion
The section of this study concludes that Zenith pizza should conduct research on the international
market before investing in some international project. There are many reasons to enter a new
market, which is discussed in the study. The section includes the outlines of threats and
opportunities or Zenith pizza.
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Task 2
Introduction
The section of the study analyzes the various market entry strategies for entering a new market. The
market area is evaluated to guide Zenith pizza. The advantages of using marketing strategy are
outlined. However, a strategy is suggested to Zenith pizza, which will help the brand to establish
itself in the global market.
A market strategy is tactical planning, which helps an organization to expand their business globally.
There are few strategies which are discussed below. Marketing strategy varies according to multiple
factors such as the size and type of the organization.
Exporting- There are two methods of exportation, which includes direct and indirect exportation.
Direct exportation refers to the involvement of organization while shipping products
internationally. Indirect shipping refers to the international shipping of products through a
middleman.
Licensing- The right of reproducing any company’s authentic product is said to be licensing.
The organization has to create an agreement with any other company of that nation who will
reproduce that organizations authentic product.
Franchising- Franchising is the essence of pasting and copying any product. The company can
sell their franchise in order to expand their business. Where the need of product and services is
small the organization should sell their franchise to that area (Khan, 2014).
Partnership- the partnership is basically a joint venture. When two or more brands work
together for a product then the brands said to be partners. Partners may belong to different
regions and markets that will help to grow the business (Eriksson, 2015).
Turnkey projects- turnkey projects play an important role in international marketing. A contract
is created, which includes the agreement of full design, equip and other improvement of a service
facility. The project is turned over to the purchaser once it is ready.
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Investment- The Company can invest in buying a new company s that they can expand their
business and explore the market. The company will get global recognition if they take over a
local company.
Zenith pizza should invest in franchising. The initial investment for a restaurant franchise is
relatively lower than others. Franchising generally represents much big organization’s services in
a small business. Zenith pizza should sale the franchises so that they can be a household common
name. The brand should support and provide training to the franchisers to maintain their product
quality and promises of brands. The franchisers will contribute to a brand’s fame. The concept of
the franchise needs a lot of time to develop so the brand should conduct researches before
opening any franchises (Choi and Yeniyurt, 2015). The business becomes successful for
expanding globally by starting franchises. Zenith pizza will be able to earn higher revenue from
the international market if they start franchising their brand. The brand needs to evaluate the
market criteria based on the market size, demand, and urgency of local people, the pricing
strategy, investments, and others. They should focus on customer acquisition based on the
lifestyles of local people.
The tariff barrier is the most common barrier to trading. A tax is imposed on the import and
export of goods internationally and domestically. But the international import-export cost is
higher than domestic export and import. There are two types of tariff barriers, which includes
tariff and nontariff barrier.
The tariff barrier is used to protect the new industries and the growing economies. The list of
tariff barriers are discussed below
List of tariff barriers
Specific tariff- A fixed fee for importing goods is referred to as a specific tariff. The specific
tariff may change as per types of goods.
Ad valorem tariffs- The word, ad valorem is originated from Latin. The word has a significant
meaning which is according to value (Hayakawa and Kimura, 2014). The tariff helps to protect
the producers from becoming undercut.
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The nontariff barrier helps to monitor import and exports by following some mechanisms. The
nontariff barriers are often known as nontariff measures (Egger et al., 2015).
List of nontariff barriers
Licenses- License is a government policy, which helps in the authorization of importing goods.
The licensing helps to reduce the competition among the companies and the prices will be
increased.
Important quotas- The important quota covers the restriction on the number of certain goods and
this is related to the licensing.
Export restraints- Voluntary trade barriers emphasize the exporting of goods rather than
importing of goods. The companies are often accompanied by the voluntary export restraints to
support the export of goods.
Requirements of local contents- the government make a decision on producing some products
domestically. This leaves an impact on the pricing of products (Cimino et al., 2014).
Zenith pizza may have to face a tough time while exporting or importing their products. That
may leave an impact on the prices of their products. If they are expanding their business in a
large international market, most of the customer segment belongs to the low-middle income
group. Tariffs increase the cost of imported goods so the company may not be able to witness a
large number of customers.
Zenith pizza can start franchising and partnering with locally established brands so that they can
grab the share of the international market. The brand may also select the market carefully before
expanding the business.
Conclusion
The section concludes that zenith pizza should follow the marketing strategies that are discussed
above to ensure customer satisfaction. The process will help to achieve the business goals.
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Task 3
Introduction
In this study, a debate in between global and local marketing approach will be conducted.
Additionally, difference in between merchandise and service import and export will also be
assessed. Process of import and export in addition with 7 P’s marketing mix will also be assessed
in this study from the perspective of Zenith Pizza.
Global vs local debate
International marketing strategy is a conceptual model and it has a core relationship with
standardization and adaptation. There are some key elements belonging from both global and
local marketing approaches, which have been enlisted below:
Elements of global and local marketing
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Table 2: Elements of global and local marketing
(Source: Created by the learner)
Difference between Merchandise and Service imports and exports
Merchandise imports and exports Service imports and exports
Merchandise service imports and exports are
entirely based into moving tangible goods and
products from a country. Different products
such as toys, furniture and such other things
can be merchandised as a way of import and
export.
Service import and export are for generate
earnings through non-product things. Zenith
Pizza can open a new shop outside, but they
cannot export their pizza. It will be considered
as service.
The biggest advantage of merchandise
import and export is it allows any
organization to both import and export
The biggest advantage of it is it does not rely
into one particular product or item.
Organizations like Zenith Pizza can surely use
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Global marketing Local marketing
In order to be successful as an International
organization, Zenith Pizza needs to have some
good and realistic goals.
Zenith Pizza needs to create a very strong
brand image in order to be successful at
local markets.
Zenith pizza needs to be flexible at modifying
their pizzas in accordance with the needs of
their international customers.
They can also start a blogging strategy for
their target guests at certain extension.
They need to identify any emerging need. By satisfying the needs of local customers,
they can move up their revenue.
The most important element in order to get
success at global scale is to have sufficient
amount of resources (Gillespie and Riddle,
2015).
They can promote their pizzas by leveraging
Hashtags in social media marketing.
Zenith Pizza also needs to have good
understanding of different foreign culture.
To be successful in local market, Zenith
Pizza needs to follow their organizational
guidelines.