International Marketing Plan: Zorbas Bakeries' UK Expansion Strategy

This report provides a comprehensive international marketing plan for Zorbas Bakeries, focusing on its potential expansion into the United Kingdom. The analysis begins with an introduction highlighting the importance of international expansion and the need for thorough market analysis. It includes an overview of Zorbas Bakeries, detailing its history, operations, and growth. A PEST analysis examines the political, economic, social, and technological factors influencing the UK market. A SWOT analysis assesses Zorbas Bakeries' strengths, weaknesses, opportunities, and threats. Porter's five forces framework is then applied to analyze the UK bakery market's competitive landscape, including the bargaining power of buyers and suppliers, threats of new entrants and substitutes, and the intensity of rivalry. The report also outlines a marketing mix for Zorbas Bakeries in the UK, and concludes with marketing objectives and recommendations for successful market entry and sustained operations. The report emphasizes the importance of adapting strategies to the UK market's specific characteristics and competitive dynamics.

Running head: INTERNATIONAL MARKETING PLAN
INTERNATIONAL MARKETING PLAN
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction....................................................................................................................2
About the company........................................................................................................2
PEST Analysis of the UK market..................................................................................3
SWOT Analysis of Zorbas Bakeries..............................................................................4
Porter’s five forces analysis of UK Bakery market.......................................................6
Marketing mix of Zorbas Bakeries in the UK................................................................8
Marketing objectives....................................................................................................10
Conclusion....................................................................................................................10
Recommendations........................................................................................................11
References....................................................................................................................12

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Introduction
As discussed by Albrizio, Kozluk and Zipperer (2017), the expansion of an
organization in different countries is mainly based on the ways by which it is able to increase
awareness based on the products and services that are offered to the consumers. The presence
of the organization can be increased with the help of expansion in different countries or
destinations. International expansion proves to be highly important for the long term
operations of different organizations irrespective of the industries to which they belong. The
analysis of environment or the country in which the organization wishes to expand its
operations is quite important for the development of proper strategies (Boasson and
Wettestad 2016).
The report will be based on the analysis of expansion plans that have been made by an
organization named Zorbas Bakeries in order to start its operations in the United Kingdom.
The analysis of external environment in the UK is highly important for the ways by which the
organization can develop effective expansion based strategies. The analysis of the industry
will also be made in the report with the implementation of Porter’s five forces framework.
The major aim of the report is thereby based on the ways by which the organization can
develop effective strategies in order to maintain its operations in the new country.
About the company
A. Zorbas and Sons Ltd. was established in the year 1975 by Mr. Andreas Zorbas.
The organization had then received its limited status in the year 1979 with the main activities
being performed on the production and the sales of different bakery based products. The
company mainly started its operations in Athienou, Cyprus (Zorbas.com.cy 2019). The
operations were further expanded in province of Nicosia. Zorbas Bakeries started its public
operations in the year 2000 and in 2012 it was listed on Cyprus Stock Market. The major

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activities that are performed by Zorbas Bakeries include, production, sales and effective
distribution of fresh pastry and confectionary based products. The company has showed
immense levels of growth in the bakery based industry with the help of a variety of products
that are offered to the consumers (Zorbas.com.cy 2019).
PEST Analysis of the UK market
The PEST model can be implemented in order to analyse the external environment in
the United Kingdom. The external environment related factors need to be analysed in order to
form strategies that will prove to be effective for the future operations of Zorbas Bakeries in
the country (Boasson and Wettestad 2016).
Political factors – The industry based on food retail and bakery is affected in a huge
manner by the changes that take place in the political environment. The decisions based on
taxes that are taken by the government are considered to be highly important factors that have
an impact on the operations of organizations that are a part of the bakery industry (Carter et
al. 2016). The Food based standards that have been developed by the UK government need to
be followed effectively by the organizations that are a part of the bakery industry. The UK
government has developed many hygiene maintenances based rules that are required to be
followed by the organizations in bakery industry (Chaffin et al. 2016).
Economic factors – The economic condition of the UK has been affected in a huge
manner by the Brexit based decision that has been taken by the government of the country.
The economic downturn has an impact on the policies that have been recently developed by
the government. The value of UK currency has been affected in a huge manner by the
implementation of Brexit in the country (Chandler 2017). The lack of the value of the
currency is considered to be a major economic factor that can have an impact on the
operations of Zorbas Bakeries. The slow economic growth of the UK is considered to be a

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major factor that has an impact on the ways by which an organization like Zorbas Bakeries
can maintain its operations (Corcoran and Gillanders 2015).
Social factors – The social condition of a country can be affected in a huge manner by
the ways by which an organization is able to develop effective customer relationships. The
changes that take place in the preferences and tastes of the customers are important for
Zorbas Bakeries in order to consider the development of appropriate products. Customers of
the United Kingdom currently prefer the products that are healthy and can fulfil their taste
based needs as well. The tastes of consumers have changed based on millennial
demographics and the products and services that they prefer (Dechezleprêtre and Sato 2017).
Technological factors – The investments that are made by bakery based organizations
on research and development activities are quite low. Development of franchise based outlets
are considered to be the most important part of the technological developments that have
taken in the UK Del (Río, Peñasco and Romero‐Jordán 2015). The presence of Zorbas
Bakeries can be developed in the country with the help of investments that are made in the
development of franchise based stores. The collection of customer data is able to play a major
role in the ways by which the Zorbas can develop the required products for customers (Du
and Temouri 2015).
SWOT Analysis of Zorbas Bakeries
Strengths – The outlets of Zorbas Bakeries that have been developed in Athienou
have been able to provide the required products to the customers. The growth of the
organization is mainly based on the ways by which positive response has been gained from
the consumers (Fritsch, Kamkhaji and Radaelli 2017). The group has been able to develop the
name of its brand and has expanded its operations in New York. The catering based services
that are offered by the organization are quite unique in nature and are operated by the

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experienced catering based consultants. The infrastructure of Zorbas Bakeries has played a
major role in development of effective products (Hamilton and Webster 2018).
Weaknesses – The lack of proper advertising and promotional activities are
considered to be major weaknesses of Zorbas Bakeries. The organization had not been able to
develop promotional strategies that can have an impact on the decisions that are made by the
consumers (JORDAN and RAYNER 2016). The reach of the organization has also been
reduced due to the lack of proper advertising based activities. The online presence of Zorbas
Bakeries is low and the organization has not been able to maintain relationships with the
customers with the implementation of proper communication based channels (Laudon and
Traver 2016).
Opportunities – The health consciousness of customers are increasing and this can act
as a major growth based opportunity for the organization in order to develop its operations in
the industry. The success levels of the brand are mainly based on the ways by which it can
improve the operations and improve the relationships that are formed with the customers
(Maxwell et al. 2015). Diversification of the services will be able to provide opportunities of
growth to Zorbas Bakeries. The customer base that has been established by the organization
in the UK can further be improved in order to increase the revenue levels. Zorbas can also
think of increasing the number of vegetarian food items in the menu in order to maintain the
operations and increase the revenues as well (Meyer and Peng 2016).
Threats – Zorbas Bakeries faces major competition from the other bakery based
organizations in its domestic operations. The increase in levels of competition further leads to
the ways by which products can be developed and included in the portfolio of the
organization. Changes have also been experienced in the choices of the consumers and trends
in the market (Mian, Lamine and Fayolle 2016). The changing trends have acted as a major

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factor that has an impact on the ways by which the organization is able to maintain the
operations in the industry. Zorbas Bakeries needs to consider the changes that are
continuously taking place in the external environment in order to improve the products that
are being offered to the customers (Neelankavil 2015).
Porter’s five forces analysis of UK Bakery market
The external competitive environment can be analysed in detail with the help of
Porter’s five forces framework. The five different forces that can be considered for proper
analysis of the bakery based industry of the UK are bargaining power of the buyers,
bargaining power of the suppliers, threats of the new entrants, threats based on substitutes and
levels of competitiveness (Ormazabal and Puga-Leal 2016).
Bargaining power of the customers – High – The customers are provided adequate
amounts of choice based on the products that they wish to purchase. The local and
international fast food based chains are operated in the UK that are able to provide a wide
variety of products to the customers (Parnell and Brady 2019). The switching based costs for
the customers are quite low in this case and they are able to fulfil their needs with the help of
different types of products that are offered to them by various bakery based organizations.
The UK market is able to provide huge opportunities based on growth to the bakeries and this
has increased the entry of different types of organizations. The levels of competition have
been increased due to this factor (Shaukat, Qiu and Trojanowski 2016).
Bargaining power of the suppliers - Medium – The bakeries that operate in the
United Kingdom have huge number of suppliers who are able to provide them the required
raw materials. The multiple number of suppliers who offer the raw materials to organizations
in bakery industry have reduced their power to affect the prices of different products. The
change in suppliers of the organization is however considered to be a major factor that can

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lead to disruption in the supply based process on a short term basis (Simionescu 2016). The
supplier base of UK based bakeries is based on the development of the short term and the
long term suppliers as well. The disruptions in the supply chain need to be avoided in order to
ensure that the operations of the organization can be maintained smoothly. Zorbas Bakeries
can develop a supplier base in such a manner that will be able to help in the formation of an
effective supply chain. The efficiency of supply chain is considered to be a major factor that
can help in deciding the prices of products that are offered to consumers (Statista.com 2019).
Threats of the new entrants – Medium – The entry of a new organization in the
bakery based industry of the UK requires the development of proper resources and
infrastructure. The requirement of resources in the industry is quite high and the
organizations need to make high levels of investments in the ways by which they can enter
the market. The supply chain and infrastructure needs to be developed in such a manner that
can play a key role in development of its operations (Parnell and Brady 2019). Zorbas
Bakeries has been able to develop an effective infrastructure in the domestic market.
However, the development of international expansion will be mainly based on the ways by
which the infrastructure can be developed in the UK. The development of infrastructure in
the UK will be easier for Zorbas Bakeries as the company already has successful operations
and infrastructure in its home country (Mian, Lamine and Fayolle 2016).
Threats of the substitutes – Medium – The bakery based products are provided by
many different organizations in the United Kingdom. The major bakery organizations that are
already operating in the country include, Honey & Spice, Violet, Oree, Princi, Fabrique
Bakery, Dominique Ansel Bakery, Kova Patisserie, Bread Ahead, St. John Bakery. The
organizations provide similar types of bakery based products to the customers. The number of
substitutes that are available for the bakery based products are huge and the customers have a
lot of options to choose from (Río, Peñasco and Romero‐Jordán 2015). The high availability

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of substitutes requires development of effective differentiation by the organizations in order
to maintain their profitable operations. Zorbas Bakeries also needs to take into consideration
the capability levels of substitute products that are available in the market to fulfil the
demands of customers. The development of differentiation in services and products is
considered to be important for the revenues that are gained in the industry (Corcoran and
Gillanders 2015).
Levels of competitive rivalry – High – The competitive rivalry levels in the bakery
industry are high and the organizations that are operating in the industry are able to form a
saturated market. The companies like, Baker’s Oven, Druckers and Krispy Kreme have been
able to develop the products in such a manner that is able to increase the competitiveness
between the organizations (Carter et al. 2016). The competitiveness in the industry can be
taken into consideration by Zorbas Bakeries in order to develop a product portfolio that can
fulfil the demands and needs. The diversity of product portfolio is considered to be an
important factor that has an impact on the ways by which the company will be able to
develop a customer base in the industry (Simionescu 2016).
Market entry mode – The market entry mode that can be implemented by Zorbas
Bakeries in order to enter the United Kingdom can be Franchising.
Marketing mix of Zorbas Bakeries in the UK
Products – The product portfolio that has been developed by Zorbas Bakeries is
mainly based on different types of products that include, breads, savouries, confectionary
based products that include different types of sweets, sandwiches, salads, Magerio and Coffee
Berry (Zorbas.com.cy 2019). The variety of products are related to the demands and needs of
the customers. Zorbas Bakeries can continue to offer similar products in the stores that they
are already providing to the customers in its home country. The product portfolio of the

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organization has been able to provide high levels of revenues to the organization in its
domestic operations. The continuation of a similar portfolio will prove to be effective for the
operations of Zorbas Bakeries in the future (Zorbas.com.cy 2019).
Place – Zorbas bakeries can develop its stores in different parts of the United
Kingdom in order to increase the awareness of its products and brand in the country. The
stores will be able to provide the required products to the customers along with differentiated
services. The proper differentiation of the services will be able to play a major role in the
ways by which Zorbas can develop a position in the bakery based industry (Hamilton and
Webster 2018). The development of proper distribution channels and supply chain can
improve the operations and presence of the organization. The development of presence of
Zorbas Bakeries is considered to be an important part of the place related factor of the
marketing mix. The development of an effective marketing mix will be helpful in the
formation of product portfolio of Zorbas Bakeries (Mian, Lamine and Fayolle 2016).
Promotion – The promotional channels that are developed by the organization are
considered to be important for the ways by which Zorbas Bakeries can maintain its operations
in the industry. The advertising and promotion based activities are significant for the ways by
which Zorbas Bakeries can maintain its international expansion related operations (Fritsch,
Kamkhaji and Radaelli 2017). The different advertising channels that can be used by Zorbas
Bakeries include, the digital channels like social media. The traditional promotional channels
like, TV advertisements and print advertisements can also be used by the organization in
order to communicate with the customers (JORDAN and RAYNER 2016).
Price – The prices of products that are a part of the product portfolio of Zorbas
Bakeries are moderate in nature. The pricing strategy that has been implemented by the
organization is termed as penetrating pricing. The strategy is considered to be helpful for the

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organization in order to attract a huge customer base in the United Kingdom (Du and
Temouri 2015). The moderate pricing is considered to be effective for the development of
prices of various items that are provided by the organization. The organization will be able to
attract large number of customers with the help of low prices of the bakery related products
(Fritsch, Kamkhaji and Radaelli 2017).
Marketing objectives
The major objectives that can be set by Zorbas Bakeries based on its operations in the
United Kingdom are as follows,
Increasing the levels of presence of Zorbas Bakeries in the bakery industry.
Development of a large customer base in the new international location of the
organization.
Improving the levels of revenues that are gained by Zorbas Bakeries in the
United Kingdom.
Increasing the share of Zorbas Bakeries in the industry with the help of
effective products.
Development of proper relationships with the stakeholders in order to maintain
a loyal customer base of the organization in a country like the United
Kingdom.
Conclusion
The report can be concluded by stating that the expansion of operations of Zorbas
Bakeries in the bakery industry will be successful if the marketing plan can be developed and
implemented in an effective manner. The external environment and bakery industry has been
analysed in the report in detail. The analysis has been able to depict that the industry of
bakery in the United Kingdom will be able to welcome the organization. The customers in the

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country will be able to provide major growth related opportunities to Zorbas Bakeries in the
industry. Prices of products that have been set by the organization will also be a major factor
that can have an impact on the operations in the United Kingdom.
Recommendations
The recommendations that can be provided to Zorbas Bakeries based on its operations
in the United Kingdom are as follows,
The organization can develop the operations in such a manner that can help in
increasing the awareness of its products in the industry.
The improvement of revenues and profitability of Zorbas Bakeries is a major
factor that needs to be considered by the organization in the United Kingdom.
Zorbas Bakeries can be recommended to retain the product portfolio that has
already been developed by the organization and is offered to the customers.
The success that has been gained by the organization in its domestic area of
operations can be retained effectively with the help of products and prices.