International Marketing Report and Presentation Assessment

International Marketing Report and Presentation Assessment

Task 1: Report

1. Introduction: International Marketing Report and Presentation Assessment

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International marketing often termed global marketing, is a term used to describe the marketing process that occurs across country boundaries or transatlantic organisations (Czinkota and Ronkainen, 2013). This strategy is based on the growth methods used in the primary nation of the company’s operations. International marketing is the practice of promoting products, services, and ideas throughout the world to meet the goals of both businesses and people. It is a cutting-edge idea that involves putting marketing ideas to use on a worldwide scale (Khan, Wong and Sultan, 2019). It implies that the marketing mix choices have to be made for a variety of nations, rather than just one country.

Analysing the scope, reasons, difficulties, benefits and risks, as well as understanding the advantages and disadvantages of different ways and factors of consideration in marketing internationally, along with recommendations for the case study organisation for entering an international market is the aim of this report. Five Guys, a restaurant chain established in the United States, has been selected as the subject of the conversation. Founded in 1986, Five Guys has subsequently grown to more than 1,000 locations throughout the United States and Canada, as well as in Europe, with plans to build more locations in the future (Five Guys Enterprises, 2022).

2. Scope of International Marketing

The scope of international marketing can be understood through a comparative discussion of different marketing processes:

• Domestic Marketing

It is the major goal of domestic marketing, which works in a single country, to buy and sell domestically and nationally. Family enterprises, such as supermarket and restaurant chains and hair salon chains, make up the majority of small companies. The vast majority of the world’s largest corporations are based only in their own countries. Products and services that are sold and acquired inside the borders of a country are referred to as domestic products and services. Global, foreign, international, and exterior markets make up the majority of this market.

• Export marketing

Export marketing includes the documentation, production, marketing, and price of the offering to draw in clients from other countries. It is possible to make an offering available and supply it to distributors and agents abroad in many different ways (Morgan, Katsikeas and Vorhies, 2012). Import marketing is all about getting your product or service in front of the right people. The challenge of export marketing is that one must take into account linguistic, cultural, and payment preferences and systems disparities.

• International marketing

In international marketing, national boundaries or transatlantic organisations are used to describe the marketing process, as per Terpstra, Foley and Sarathy (2012). This strategy is based on the growth methods used in the primary nation of the company’s operations. International marketing uses a global approach to the execution and planning phase, principles from the 4Ps, and goods and services to fulfil the aims of both organisations and people.

• Global marketing

For the most part, a global marketing strategy involves selling a product throughout the world. As stated by Kotabe and Helsen (2020), this includes the whole process of creating, planning and advertising the organization’s products in foreign markets. However, small businesses may now reach clients all over the world, thanks in part to the growth of the internet and the resulting global reach of large corporations.

3. Reasons Organisations Do International Marketing

When it comes to business, today’s world is all about competition. There is a b likelihood that the company will succeed if its rivals expand into new markets abroad (Hassan and Gioeli, 2016). If a company faces competition in the United States, the rival may get established brand recognition or exposure by entering the markets, while a company does not exist. By chasing or going before rivals, a company may ensure that its exposure and actions are equal to those of its competitors. As a result of regional agreements and the removal of trade obstacles, the general market is encouraged to trade. To take advantage of free trade in a given area, companies tend to focus on a few specific markets. As per Khan, Wong, and Sultan (2019), a lot of businesses are expanding their company abroad for better cooperation in the resources that raise the growth value.

Five Guys is a family-owned restaurant chain that specialises in burgers and fries of the highest quality. Five Guys, in contrast to many other fast-food chains, does not utilise frozen meat in the preparation of their burgers. Refrigerators are used to keep their fresh supplies, especially meat, at their optimal temperature (Five Guys Enterprises, 2022). In an increasingly global corporate environment, Five Guy recognises the necessity for standardised marketing activities with an international emphasis to reach national borders. Five Guys has to expand worldwide to get a greater portion of the market and promote its fast-food items on a global scale, as stated in the preceding section on foreign marketing ideas. To put it another way, according to Kotabe and Helsen (2020), this will help the firm expand internationally. The firm may also adjust to swings in domestic demand by becoming worldwide. 

4. Difficulties, Benefits and Risks of International Marketing for Organisations

Five Guys may confront a variety of problems and possibilities as it expands its worldwide marketing efforts. As consequence of the prospects, it can be experienced that they will be capable of growing their market, and this in turn will allow the firm to turn into much more competitive on a international scale (Armb et al., 2015). A side benefit of international marketing for a corporation is that it may open up new business opportunities and get economies of scale by exposing itself to a global marketplace and its associated technology. Opportunities to sell the Five Guys restaurant worldwide are many. When it comes to excellent goods and services, Five Guys is well-versed in the knowledge of the restaurant industry as a whole. For this reason, many customers are eager to learn more about the new restaurant’s menu and other offerings. To ensure that all of these customers are aware of the institutional services, Five Guys has to establish chances for them to learn about them directly or indirectly.

A variety of problems may be encountered by the firm, such as incompatible political, social or economic environments of the nations where the business will be conducted that might provide a barrier to the business’ operations (Papadopoulos and Heslop, 2014). As the organisation expands globally, it may run into issues such as cultural differences and a wide range of preferences and tastes among clients. In regards to foreign marketing, the Five Guys encounters several difficulties. A new market is set to be replaced, so Five Guys must stay up with the competition and use diverse techniques to remain competitive. When entering a whole new market, it will be difficult to stay pace with the competition. In this scenario, it is important to understand the requirements of the consumer, their level of language proficiency, and the laws and rules of the nation in question. Following the completion of these steps, services must be offered to clients throughout the world.

5. Different Ways That Organisations Can Market Themselves Internationally

Five Guys can choose different market entry approaches while entering the international market. Five common entry strategies are:

• Exporting

It is widely accepted that exporting products is the easiest way to reach new markets since it does not need any capital expenditures and has a relatively low risk. However, the biggest downside is the lack of control over the market and the likely environmental impact of transportation (Konu, 2015).

• Licensing

It is an agreement between two companies in which one business licences the right to utilise its product to the other. Fast access and cheap costs are the major advantages here (Agarwal and Ramaswami, 1992). A major drawback is that there is a lack of control, and the licensee might turn into a direct rival for a relevant product or service.

• Franchising

Franchising is a restructured type of licensing, which works efficiently for repeatable business models (e.g. food outlets/restaurants) that can be moved into different markets (Baena, 2013). The key benefit of such an entry model is that this is low risk; however, the main downside is that the legal and regulatory framework might influence it.

• Partnering

It is also possible to reach the global market by creating a contractual arrangement between two or more companies, which is known as an alliance or partnership. The primary benefit of this arrangement is that the firm may be treated as a local one while still splitting the expenses of doing business. The main drawback is that the cost is greater than exporting or licensing. Problems could also emerge when trying to merge the corporate cultures of two organisations (Samiee, Chabowski and Hult, 2015).

• Acquisition

Acquiring another business by paying cash for its shares and then exchanging those shares for those of the target company opens the door to enter the international market (Schellenberg, Harker and Jafari, 2018). In terms of advantages and disadvantages, the key one is that the company may profit from already-established activities.

6. Important Factors an Organisation Needs to Consider When Selecting an International Market to Enter

Five Guys must take into account several factors when entering or expanding into a foreign market, including technology, cultural market demands, free markets, integration into the local economy, and the company’s strategic goal (De Mooij, 2015). All of these considerations must be examined before deciding on a certain international market. Five Guys mostly deals in fast food items, hence factors such as market disparities and cultural variances play a major impact. A US-based firm should also consider economic integration as an essential requirement, and only nations with b economic integration should be engaged in, since this is the case for the company.

• Market Interest

The restaurant business has several facets that Five Guys must be aware of to maintain a consistent supply of rooms for its customers (Madhok, 1997). It is also important for new businesses to think about how they will appeal to these groups of people. Due to their impact on the prices and availability of consumer products and services, Five Guys are expected to have a substantial impact on the whole economy.

• Political and Legal Factors

The growth of a market is impossible without the restrictions and rules imposed by the government (Rahman, Uddin and Lodorfos, 2017). Five Guys needs to understand the political and legal framework of various nations to realise this. As a result, they must first address these concerns if it wants to grow.

• Financial Transactions and Banking

The Five Guys has to come up with ideas on how to handle monetary transactions in the global new market (Abad-Segura and González-Zamar, 2020). Consumers, in particular, want appropriate information about their preferred method of instalment delivery.

• Language and Culture

However, it is an important requirement for international marketing, since it plays a crucial role in attracting customers from other countries. Customers may speak different languages in different markets, thus it’s important to understand the customer’s preferences. This especially goes with culture; hence the promotional and advertising initiatives must be prepared with consideration of the culture of the host country as well.

7. Recommendations on the International Market That Five Guys Could Enter

It is essential to do a systematic critical study before entering the overseas market in question. Discussions such as those in the one above show that the various entrance strategies are each given a thorough examination and debate (Azeem and Hussain, 2018). A variety of marketing approaches are required for various overseas markets. For example, if a corporation is aiming to operate in a developing nation like India, then it must adapt its marketing strategy to the country’s economic situation (Shenkar, Luo and Chi, 2014). So it is necessary to critically examine the global market environment as a whole and then design plans following that analysis. Though there are certain laws and regulations in every industry regarding food that must be adhered to, based on the opinion of Kharub, Mor and Sharma (2018), Five Guys will be able to establish the business in the Indian customer base with ease when utilising the proper approach, such as cost-leading generic strategy, which will assist the firm to provide both customer-oriented quality products and reasonable pricing. To break into the global market, there are a variety of approaches and tactics (Cateora et al., 2020).

There are a big number of worldwide franchise brands that have a b global presence, according to Alon, Apriliyanti and Parodi (2020). An assortment of well-known names may be cited as examples in the hospitality and food service sectors as well as in retail. Different marketing approaches are needed in various overseas markets. It is a good fit for these businesses since the know-how is codified and the behavioural principles that govern output can be set by contracts to ensure consistent quality across outlets (Fladmoe-Lindquist and Jacque, 1995; Kogut and Zander, 2003; Brouthers and Hennart, 2007; Hennart, 2010). Businesses in these sectors mentioned above find it simpler to exchange their trademarks and know-how with each other. Hence, Five Guys would be entering the Indian market with a franchising entry mode.

Controlling free-riding by franchisees also has a lower cost than monitoring workers, according to Brouthers and Hennart (2007) and Hennart (2010). Globally, franchising has had a substantial impact on the growth of the service industry, as per Alon (2004). In service firms, franchising allows for the standardisation and duplication of successful ideas, enabling economies of scale to be comprehended via globalisation, in the opinion of Wang and Altinay (2008). It is common in service-based businesses to employ international franchising to move commodities as well as trademarks, intellectual property (IP), and financial resources across national borders (Combs, Michael and Castrogiovanni, 2004).

8. Conclusion

International marketing is concerned with applying the concepts of marketing outside of national boundaries. As the global economy becomes more interconnected, it becomes more difficult for businesses to break into the worldwide market in this era of globalisation. The primary goal of marketing is to convince consumers and potential customers to buy a product or service. When trying to break into the international market, several considerations and a thorough selection process must be followed by Five Guys, such as market interest, finance, political and legal aspect and culture. It is for this reason that there are many ways to promote a product in different regions. As long as an appropriate strategy and proper implementation are followed, the organisation will be able to meet its objectives promptly. To be successful in the Indian restaurant market, Five Guys will have to change its marketing approach and follow a cost-leadership strategy after entering with franchising entry mode.

References

Abad-Segura, E. and González-Zamar, M.D., 2020. Global research trends in financial transactions. Mathematics, 8(4), p.614.

Agarwal, S. and Ramaswami, S.N., 1992. Choice of foreign market entry mode: Impact of ownership, location and internalization factors. Journal of International business studies, 23(1), pp.1-27.

Ahmed, M., Ullah, S. and Alam, A., 2014. Importance of culture in success of international marketing. European Academic Research, 1(10), pp.3802-3816.

Alon, I., 2004. Global franchising and development in emerging and transitioning markets. Journal of Macromarketing, 24(2), pp.156-167.

Alon, I., Apriliyanti, I.D. and Parodi, M.C.H., 2020. A systematic review of international franchising. Multinational Business Review.

Azeem, M.A. and Hussain, S., 2018. Making sense in marketing: Sensory strategies for international quick service restaurants. Journal of Commerce and Management, 5(2), pp.37-52.

Baena, V., 2013. Insights on international franchising: entry mode decision. Latin American Business Review, 14(1), pp.1-27.

Brouthers, K.D. and Hennart, J.F., 2007. Boundaries of the firm: Insights from international entry mode research. Journal of management, 33(3), pp.395-425.

Cateora, P.R., Meyer, R.B.M.F., Gilly, M.C. and Graham, J.L., 2020. International marketing. McGraw-Hill Education.

Combs, J.G., Michael, S.C. and Castrogiovanni, G.J., 2009. Institutional influences on the choice of organizational form: the case of franchising. Journal of Management, 35(5), pp.1268-1290.

Czinkota, M.R. and Ronkainen, I.A., 2013. International marketing. Cengage Learning.

De Mooij, M., 2015. Cross-cultural research in international marketing: clearing up some of the confusion. International Marketing Review.

Five Guys Enterprises, LLC. 2022. Five Guys Enterprises, LLC. [online] Available at: https://www.fiveguys.com/the-five-guys-story [Accessed on: 17th June, 2022]

Fladmoe-Lindquist, K. and Jacque, L.L., 1995. Control modes in international service operations: The propensity to franchise. Management Science, 41(7), pp.1238-1249.

Harker, M., Brennan, R., Kotler, P. and Armb, G., 2015. Marketing: An Introduction.

Hassan, L. and Gioeli, T., 2014. Foreign Market Entry-Modes and Their Impact on Perceived Cultural Differences.

Hennart, J.F., 2010. Transaction cost theory and international business. Journal of Retailing, 86(3), pp.257-269.

Khan, S.I., Wong, H.Y. and Sultan, P., 2019. A Critical Review of the Value Concept in the International Marketing Context. Value in Marketing, pp.126-144.

Kharub, M., Mor, R.S. and Sharma, R., 2018. The relationship between cost leadership competitive strategy and firm performance: A mediating role of quality management. Journal of Manufacturing Technology Management.

Koev, S.R., Tryfonova, O., Inzhyievska, L., Trushkina, N. and Radieva, M., 2019. Management of domestic marketing of service enterprises. IBIMA Business Review, 2019, pp.1-13.

Kogut, B. and Zander, U., 2003. Knowledge of the firm and the evolutionary theory of the multinational corporation. Journal of international business studies, 34(6), pp.516-529.

Konu, H., 2015. Developing a forest-based wellbeing tourism product together with customers–An ethnographic approach. Tourism Management, 49, pp.1-16.

Kotabe, M.M. and Helsen, K., 2020. Global marketing management. John Wiley & Sons.

Madhok, A., 1997. Cost, value and foreign market entry mode: The transaction and the firm. Strategic management journal, 18(1), pp.39-61.

Morgan, N.A., Katsikeas, C.S. and Vorhies, D.W., 2012. Export marketing strategy implementation, export marketing capabilities, and export venture performance. Journal of the academy of marketing science, 40(2), pp.271-289.

Papadopoulos, N. and Heslop, L.A., 2014. Product-country images: Impact and role in international marketing. Routledge.

Rahman, M., Uddin, M. and Lodorfos, G., 2017. Barriers to enter in foreign markets: evidence from SMEs in emerging market. International Marketing Review.

Samiee, S., Chabowski, B.R. and Hult, G.T.M., 2015. International relationship marketing: Intellectual foundations and avenues for further research. Journal of International Marketing, 23(4), pp.1-21.

Schellenberg, M., Harker, M.J. and Jafari, A., 2018. International market entry mode–a systematic literature review. Journal of Strategic Marketing, 26(7), pp.601-627.

Shenkar, O., Luo, Y. and Chi, T., 2014. International business. Routledge.

Terpstra, V., Foley, J. and Sarathy, R., 2012. International marketing. Naper Press.

Wang, C.L. and Altinay, L., 2008. International franchise partner selection and chain performance through the lens of organisational learning. The Service Industries Journal, 28(2), pp.225-238.

Task 2: Presentation

Global Approach to Marketing against Local Approach to Marketing

Evaluation of the Pros and Cons of Global and Local Approaches to Marketing

Initially, Five Guys must consider the advantages and disadvantages of each method, and then decide which one to implement. As long as the firm has not yet covered all of the US areas, it should take a more local strategy and look for opportunities to expand in the US market, as well as the international markets it has already covered (Cavusgil et al. 2014). On the other side, when the home and global markets are saturated, the corporation should implement its global strategy for worldwide growth. Furthermore, the firm should take a worldwide strategy to increase its consumer base on the international platform and get a competitive edge in the global market. Whenever the firm has done an extensive study about the overseas market it intends to join, only then must it be prepared to enter the market with the correct strategy.

Marketing Mix of Five Guys

There’s a lot of focus on products/services that can be marketed across the global market nowadays. When a company is operating abroad, it must be aware of the tastes and preferences of its customers in different countries and hence must supply its products in a number of ways to fulfil their needs (Samiee, Chabowski and Hult, 2015). To be concise, a corporation must pursue a strategy based on standardisation and adoption to match the market’s desires and preferences.

Price

A thorough analysis of global economic conditions and consumer purchasing patterns must precede the implementation of a pricing strategy in an international market (Ali and Anwar, 2021). The company should analyse the present economic environment and the viability of the price selection in the international market before making any pricing decisions.

Promotion

For certain nations, such as India, television or PR relations are the primary means of promoting their products or services (Millar, 2014). As a result, the organisation must make an informed decision about the promotional strategy; however, using social media is the most common promotional principle to follow nowadays for both developed and developing nations and Five Guys must use it as their primary method of promotion.

Place

Distribution networks for food and beverages may vary in the nation, based on the needs of the consumers (Jiang, Qu and Jain, 2018). This is why a corporation needs to take into account aspects including the cost of distributing, the most popular distribution route among clients, and channels utilised by rivals in the worldwide market.

Adaptation of the Marketing Mix to Different International Markets

Each of Five Guys’ worldwide markets necessitates a unique marketing approach. As a result, the corporation must examine the unique characteristics of each country’s market before customising its marketing mix (Shenkar, Luo and Chi, 2014). For the company to adapt its marketing mix for international markets, it has been determined that it needs to hire local people to ensure that each part of its marketing mix is correctly related to the host country’s cultural context.

References

Ali, B.J. and Anwar, G., 2021. Marketing Strategy: Pricing strategies and its influence on consumer purchasing decision. Ali, BJ, & Anwar, G.(2021). Marketing Strategy: Pricing strategies and its influence on consumer purchasing decision. International journal of Rural Development, Environment and Health Research, 5(2), pp.26-39.

Bengtsson, L., Stefan, I. and Lakemond, N., 2014. Open innovation: Comparing global and local approaches. In The 25th annual POMS conference, 9-12 May, 2014, Atlanta, USA.

Cavusgil, S.T., Knight, G., Riesenberger, J.R., Rammal, H.G. and Rose, E.L., 2014. International business. Pearson Australia.

Czinkota, M.R. and Ronkainen, I.A., 2013. International marketing. Cengage Learning.

Errasti, A., Rudberg, M. and Corti, D., 2015. Managing international operations: configuration of production network for SMEs. Production Planning & Control, 26(9), pp.691-692.

Ganson, B. and Wennmann, A., 2018. Business and conflict in fragile states: The case for pragmatic solutions. Routledge.

Jiang, Z., Qu, X.S. and Jain, D.C., 2018. Optimal market entry timing for successive generations of technological innovations. MIS quarterly, Forthcoming.

Millar, G., 2014. An ethnographic approach to peacebuilding: Understanding local experiences in transitional states. Routledge.

Samiee, S., Chabowski, B.R. and Hult, G.T.M., 2015. International relationship marketing: Intellectual foundations and avenues for further research. Journal of International Marketing, 23(4), pp.1-21.

Shenkar, O., Luo, Y. and Chi, T., 2014. International business. Routledge.