ASSIGNMENT SAMPLE ON INTERNATIONAL MARKETING
1. Introduction
International marketing is a broad area that is closely involved with different types of market operations and increases business performance. The aim of the study is to examine International marketing, focusing on the leading food industry, Papa John’s Pizza. The study sheds its light on the background of the company, product, SWOT analysis, PESTLE analysis, customer and consumer, Porter’s five forces, Hofstadter’s Cultural dimension, 7Ps, Dole & Lowe model for understanding the market entry strategy.
2. About the Company
The leading food industry, Papa John’s Pizza serves its business by satisfying a wide range of customers and aims to achieve more revenue from this competitive market. Papa John’s Pizza serves delicious food items by associating different sponsorships and partners with a strong supply chain management system (Papajohns.com, 2021). In 2020, this American-based organization receives recorded global revenue of 1.81billion U.S. dollars. The organization serves its pizza in different countries and recently it is highly concerned to spread its marketplace in Germany.
Cultural issues
Food safety, diverse culture within global employees and changing preferences in different cultural group are key cultural issues of Papa John’s Pizza. In this critical situation, food safety becomes a prominent problem and it creates different barriers on the sales performance of this organization. As opined by Mercon-Vargas, Poelker, & Tudge (2018), cultural diversity among the global employees creates communication problem and other potential issues in understanding the demands of customers. Besides, a preference of different items in several regions of Germany is challenges that reduces its potential customers and decrease its profit.
Competitors
This leading organization is conducting its different operations dealing with different competitors in Germany to satisfy its customers. Domino’s Pizza, McDonald’s, Pizza Hut are the key competitors of this food company in the UK who servers different products to meet customer demands.
3. about the selected Product/Service
Papa John’s Pizza serves different types of delicious food items, for instance, Garden Flesh, Hawaii BBQ Chicken to its customers. In this market entry mode in Germany, the organization focuses on serving these items through introducing online sales. As cited by Agawam, & Wu (2018)0, this market entry through its diverse products and online medium is essential for increasing brand value and the organization becomes able to satisfy its customers. The popular pepperoni Pizza allows the organization to achieve more revenue and satisfies its customers.
4. SWOT analysis
| Strengths
● High brand loyalty
● High-quality products, food, and ingredients ● Efficient restaurant layout and the strong support of the German government ● Competence workforce and political stability in Germany |
Weaknesses
● Franchise management and limited menu list ● High labour costs and unskilled labour in Germany |
| Opportunities
● New menu items and venturing more for creating the online market ● The high availability of renewable energy in Germany for reducing costs ● High population and greater customer in Germany |
Threats
● The selected menu of Papa John’s Pizza while other competitors serve different products. ● The presence of different health-conscious people in Germany. |
Table 1: SWOT analysis
(Source: Watson et al. 2018)
5. PESTLE analysis
| Political factors | ● Germany has developed strong relationships with several other countries and this is significant for this organization to enter into this marketplace.
● The alliance and relationship with the EU and USA is another political advantage for market entry. |
| Economic factors | ● The annual GDP rate of Germany stands at about 4.454 trillion dollars and it is recorded as the fifth-highest in this World (Davcik et al. 2021).
● Import and export and taxation with a 3% employment rate are the crucial factors that affect the economy. These factors create a negative impact on this market entry of the food industry, Papa John’s Pizza. |
| Social factors | ● The high population and the high quality-life of the citizens in Germany are the crucial social factors and it is beneficial for marketing entry and Papa John’s Pizza will be able to increase its customers (Ju et al. 2018).
● The high standard of living and demographics are the social advantage that creates a great impact on the business operation of the food company. |
| Technological factors | ● Research and development (R&D) and the technological advancement of the country are beneficial for this organization to improve its business performance. |
| Environmental factors | ● The favourable atmosphere and the increasing number of tourist places are the critical factors that enable the organization to expand its business. |
| Legal factors | ● Equality lAW (2017) is promoted and the organizations in Germany are facing several problems in maintaining several operations. |
Table 2: PESTLE analysais
(Source: Ju et al. 2018)
6. about the customer and consumer
The renowned food organization, Papa John’s Pizza serves its wide range of customers by delivering quality products. As stated by Martin et al. (2020), increasing the number of citizens in Germany is another major advantage of the organization to serve its business and expand business performance. The strong supply chain management system of the organization provides several advantages and the organization is able to meet a wide range of customers. The organization is further concerned to increase its customers through better product quality and services and therefore, manages different consumers in this global market.
7. Porter’s 5 Forces diagram
| Five factors | Level | Impact |
| Competition from Rival Sellers | High | In Germany, the competition from river sellers can create a high risk for this leading food company, Papa John’s Pizza. This can impact the business performance and it finally leads to economic downfall with difficulties in managing customers. |
| New Entrants
|
Medium | In this new market, Papa John’s Pizza serves high-quality products with healthy ingredients to satisfy its different customers (Kaufmann et al. 2019). There is a medium chance for new entrants in this market for its high product quality and customer service. |
| Substitute Products
|
High | High risk is created for substitute products as Papa John’s Pizza serves superior products at a high range. In the competitive market, there is a chance for the introduction of substitute products at lower prices. |
| Supplier Bargaining Power
|
Low | The lower bargaining power of the supplier is beneficial for expanding the market and the organization is able to satisfy its different customers. |
| Buyer’s (consumer’s) Bargaining
|
Medium | The medium consumer’s bargain sometimes created difficulties in managing different business operations in the new marketplace. |
Table 3: Porter’s five forces
(Source: Kaufmann et al. 2019)
8. Hosted culture Dimension
This theory assists in understanding the culture of Germany to expand the marketplace and it is evaluated through five categories: “Power distance, Individualism, Masculinity, Uncertainty Avoidance, and Long Term Orientation“. The highly decentralized country is supported by a strong middle class and leadership is the best chance to expand the business (Poulis, 2020). These factors of the cultural dimension in Germany are significant and this leading organization, Papa John’s Pizza becomes able to improve its business performance.
9. 7Ps analysis for the product
The 7Ps analysis for the product of Papa John’s Pizza is important to expand its new market in Germany to achieve more revenue. The “product” and price strategy of the organization establishes a new market and finds its potential customers. As influenced by Hult et al. (2018), innovation and change assist in developing the product quality and the organization is highly concerned with product differentiation. Promotional and advertising strategy of Papa John’s Pizza is also essential to increase its potential customers. Therefore, it can be noted that the favourable pricing strategy and the targeted group of customers are beneficial for this marketing entry of the food company.
- Papa John’s Pizza sells its products under different categories which allow the customers to select a particular product and perceived high quality than its competitors. Product differentiation and innovation are the product strategy of this leading organization to meet changing demand of customers (Hult et al. 2018).
- This organization further follows market skimming strategy to maximise the revenue through covering up development expenses. It is generally adopted benefits, uniqueness and features through Research and Development in cost. The competitive pricing policy and distribution strategy assist the organization to reach its new customers.
- Papa John’s Pizza opens its stores in Berlin, Munich and Hamburg in Germany to meet a wide range of customers with creating a strong relationship. Distribution strategy in these places assist in increasing its customers through establishes a new market in these places.
- Advertising strategy, mail and direct campaigns are the key promotional strategy of this leading food organization to influence purchasing behaviour of its customers. It makes the customers enable to accept product through digital marketing technique with increasing awareness (Do, & Vu, 2020).
- Retaining the right employees and increasing the customers are major people strategy of this organization and this make the customer and employee satisfied. Training of the employees and better customer service plays a vital role in delivering value to its customers.
- Zero inventory and sustainable processing strategy are significant to influence the customers and increase profit.
- Attractive family outlet is the major physical evidence that influence customers purchasing behaviour and Papa John’s Pizza able to reach its maximum number of customers.
10. Doole & Lowe model for market entry
This model of market entry promotes different ideas for entering into a new marketplace and effectively engages different costumes to achieve more revenue. As opined by Sheth (2020), in identifying, satisfying, and anticipating customers across the borders, the model proves a significant impact on defining ideas. Papa John’s Pizza implements advanced tools with an affordable pricing strategy to satisfy its customers and improve business performance.
11. Conclusion
Based on the above study, it can be concluded that Papa John’s Pizza expands its market in Germany and satisfies its customers. The study develops SWOT and PESTLE analysis to identify different factors and the product and consumer assist in identifying business performances. Hofstede’s culture Dimension and Doole & Lowe model assist in providing different ideas about the market entry mode of Germany.
References
Agarwal, J., & Wu, T. (2018). The changing nature of global marketing: a new perspective. In Emerging Issues in Global Marketing (pp. 3-11). Springer, Cham. https://link.springer.com/chapter/10.1007/978-3-319-74129-1_1
Davcik, N. S., Cardinali, S., Sharma, P., & Cedrola, E. (2021). Exploring the role of international R&D activities in the impact of technological and marketing capabilities on SMEs’ performance. Journal of Business Research, 128, 650-660. https://www.sciencedirect.com/science/article/pii/S014829632030271X
Do, Q., & Vu, T. (2020). Understanding consumer satisfaction with railway transportation service: An application of 7Ps marketing mix. Management Science Letters, 10(6), 1341-1350. http://m.growingscience.com/beta/msl/3600-understanding-consumer-satisfaction-with-railway-transportation-service-an-application-of-7ps-marketing-mix.html
Hult, G. T. M., Hair Jr, J. F., Proksch, D., Sarstedt, M., Pinkwart, A., & Ringle, C. M. (2018). Addressing endogeneity in international marketing applications of partial least squares structural equation modeling. Journal of International Marketing, 26(3), 1-21. https://journals.sagepub.com/doi/abs/10.1509/jim.17.0151
Ju, M., Jin, J. L., & Zhou, K. Z. (2018). How can international ventures utilize marketing capability in emerging markets? Its contingent effect on new product development. Journal of International Marketing, 26(4), 1-17. https://journals.sagepub.com/doi/abs/10.1177/1069031X18809999
Kaufmann, H. R., Paraschaki, M., Tsoukatos, E., Bengoa, D. S., & Czinkota, M. (2019). Curative international marketing, corporate and business diplomacy: A triple application for migration. In The synergy of business theory and practice (pp. 261-283). Palgrave Macmillan, Cham. https://link.springer.com/chapter/10.1007/978-3-030-17523-8_12
Martin, S. L., Javalgi, R. R. G., & Ciravegna, L. (2020). Marketing capabilities and international new venture performance: The mediation role of marketing communication and the moderation effect of technological turbulence. Journal of Business Research, 107, 25-37. https://www.sciencedirect.com/science/article/pii/S0148296319305818
Mercon-Vargas, E. A., Poelker, K. E., & Tudge, J. R. (2018). The development of the virtue of gratitude: Theoretical foundations and cross-cultural issues. Cross-Cultural Research, 52(1), 3-18. https://journals.sagepub.com/doi/abs/10.1177/1069397117736517
Papajohns.com, 2021, About Us, Retrierved from: Technical Difficulties – WD-NS | Papa John’s Pizza (papajohns.com) [Accessed on: 20th November, 2018]
Poulis, K. (2020). Punctuated epistemology in international marketing strategy: A Whiteheadian remedy. Marketing Theory, 20(3), 363-384. https://journals.sagepub.com/doi/abs/10.1177/1470593119897938
Sheth, J. N. (2020). Borderless media: Rethinking international marketing. Journal of International Marketing, 28(1), 3-12. https://journals.sagepub.com/doi/abs/10.1177/1069031X19897044
Watson IV, G. F., Weaven, S., Perkins, H., Sardana, D., & Palmatier, R. W. (2018). International market entry strategies: Relational, digital, and hybrid approaches. Journal of International Marketing, 26(1), 30-60. https://journals.sagepub.com/doi/abs/10.1509/jim.17.0034
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