MOD005485 International Marketing Assignment Sample
Module Code And Title : MOD005485 International Marketing Assignment Sample
Introduction
The report will describe different global marketing strategies for business expansion in Spain keeping the case of Greggs Bakery into concern. It will discuss STP analysis to identify the target market and the way they will position it in the market. Further, the report will describe standardization, adaptation, and Glocal approach to entering the market. On the other hand, the AIDA model and push-pull marketing strategy will be discussed. At last, SEO and analytics will be described.
Content Analysis
Background of product and target country
Political analysis: The country has an unstable political environment even though they are part of various powerful organizations worldwide. On the other hand, it also faces several corruption issues that can affect the business (Semenova and Vitkova, 2019). These can be challenging at some points while establishing the business. Spain also has some territorial disputes with the UK over Gibraltar that can act as a barrier to entering the market.
Economic analysis: The economic stability of Spain is tremendous and ranks as the 14th largest economy in the world. On the other hand, the general corporate income tax rate is 25%, and other tax rates vary based on the type of company (Cox, 2021). The economic stability of the country would be beneficial for increasing the income and sales of the company as it offers great spending power to consumers as well.
Social analysis:
Figure 1: Hofstede’s country comparison. (Source: Country Comparison, 2021)
It can be observed that there are cultural differences between Spain and the UK that can act as a barrier as they have to adapt to Spain’s culture to meet local consumer needs. Spain and Britain are different in power distance factor as Spain scores 57 and the UK scores 35 depicting that Spain believes in inequality and has a hierarchical society (Favaretto et. al. 2019). On the other hand, Spain is a feminine society, whereas; the UK is described as a masculine society.
Technological analysis: Spain is known as an advanced nation of technologies. Along with that, people from Spain also utilise different social media networks that will be beneficial for the company to reach target consumers and along with analysing their needs. These technological advancements in Spain can be opportunistic as well as challenging.
Product
Greggs Bakery has varieties of products available including sandwiches & salads, savouries & Bakes, drinks and snacks, sweet treats, and hot food. The products for Greggs Bakery are developed at the factory in Longbenton, North Tyneside which produces steak bakes and sausage rolls for around 1650 branches all around the UK (Jewell, 2019). On another hand, its savoury products are produced at the northeast factory. In 2020, ASDA has become the first supermarket to open counters selling Greggs’s products.
The revenue of Greggs is 1.23 billion and revenue per share is 11.96 and they have experienced a decline of 30.5% in sales during the 2020 financial year. The company is rated as one of the most popular dining brands in the UK. They are continuously expanding its outlets so it can secure a competitive position in the market. They compete against sandwiches, bakery and coffee shops market.
STP analysis
Segmentation: Greggs Bakery needs to target the middle and high-income population in Spain due to its economic stability. It would help them in enhancing their sales and generating profits. On the other sight, they must segment customers from 10-30 years and 30-50 years as the food taste and preferences of both segmented consumers are different. Youngsters like to have fast-food eateries, whereas; the population between 30-50 years will be more health-conscious (Ma et. al. 2021).
They must focus on opening outlets in urban areas from locations like Barcelona, Madrid, Valencia, and more. It has been found that bakery items are mostly consumed by people that go to work, from school, and families coming from dine-out. The lifestyle of people also affects the eating habits of the population so they must aim at segmenting customer that goes to work or school and colleges. It would be beneficial for the company to attract the most population.
Furthermore, utilising CRM (Customer Relationship Management) would help the Greggs bakery in keeping all-time information about its customer interaction that would further help in optimising customer satisfaction. From the analysis, their key segments must be middle and high-income people between the age group of 10-30 years from Barcelona going for work or school and colleges.
Figure 2: Key Segments. (Source: Self-made)
Targeting: The major target market for Spain must be individuals that are going to work or schools and colleges as these are the population that goes to restaurants and other outlets for business meetings, get-togethers, and even during their breaks. Other than that, this population majorly likes to have fast food in comparison with other populations. According to Liu and Shan, (2021) Word-of-mouth advertising will also be beneficial while targeting youngsters and it would help the company in increasing its market share and revenue.
Utilising a targeting approach for attracting this customer is must for the company’s growth and success. Looking at the targeted market, it has been suggested that Greggs Bakery needs to utilise differentiated marketing as it will help them in concentrating on the primary target market that can help the company in generating value in the market. Using a differentiated marketing approach, the company can develop different marketing strategies for different segments (Sukma et. al. 2019).
For instance, they can develop a unique strategy for working individuals while targeting school and college-going individuals differently. It helps in the advantage of personalisation as every segment of the market has its needs and preferences. This would also help them in differentiating products for different segments like sandwiches and salads for the working population, while sweet bakery products and drinks for school and college-going people.
Positioning: The Company will face tough competition from Pasteleria Jansana Gluten free, Dolceria De La Colmena and La Pastisseria Barcelona. These are the tough competitors that would make it difficult for Greggs Bakery to achieve strong market position.
7Ps of marketing mix
| 7Ps | Analysis |
| Product | Greggs Bakery serves a diverse range of products including sandwiches & salads, savouries & Bakes, drinks and snacks, sweet treats, and hot food (Soegoto, 2021). They will have to adopt the taste as per local consumer demands to attract the Spain population. |
| Price | The company focus on keeping the price that is affordable by every individual belonging from middle and high income families. They will aim at keeping the price low in comparison with the competitors to attract more customers. |
| Promotion | Utilising diverse online platform and social media sites is beneficial in promoting and advertising the products to selected target market. |
| Place | They will open up its first store in Barcelona at the place near to schools and colleges to attract target consumers. |
| Packaging | Looking at the sustainability concern, the Greggs Bakery has to package all their products in eco-friendly packaging materials or the material that can be recycles and reused to make their contribution to environment. |
| Positioning | For this, develop a strong relationship with customers to identify the product positioning and based on their feedback try to improve the services (Mallik and Farhan, 2018). |
| People | Proper training will be offered to employees so they can continue to sell the authentic taste they have at the UK outlets. |
Glocalization
Standardization approach: Standardization means serving the international market utilising the same products, promotional, pricing and location strategies as in the home country (Podrug, 2021). This strategy is used with the belief that the needs of the consumer can be met by the same product without bringing significant modifications.
The concept of standardization has achieved more importance with the growing trends of MNCs going global for improving their economies of scale. The major constrain in product standardization depict customer preference and trade and government restrictions. In the context of the food sector, the approach doesn’t work well as consumers from foreign countries have different food trends, preferences, and tastes.
Adaptation approach: The adaptation approach focuses on bringing changes in different aspects of products and services to meet local consumer demands (Spencer-Oatey and Dauber, 2019). In context with the food sector, the adaptation approach plays a critical role as serving the same food product as in Britain is not capable of meeting the local consumer demands of Spain. High-level adaptation can make it challenging for MNCs to manage different network activities on a global scale. The company must make mandatory adaptations before serving products to the consumer.
Glocal approach: This approach means the presentation of global knowledge within a local context. It means that “think globally, act locally”. Food sectors adapting to this strategy will probably achieve more benefits (Unkule, 2020). For example, McDonald’s operates around 36,000 restaurants all over the world but they adapt to local needs keeping their global brand image. Utilising the Glocal approach will help the company in achieving a market position in the target market. It is the process of expanding the brand globally while meeting the needs of local consumers.
Looking at the above approaches, it has been justified that Greggs Bakery should use the Glocal approach as it will help them in meeting the local consumer demands along with keeping their brand image globally famous (Lehmberg and Hicks, 2018). It is must adopt this approach as Greggs Bakery serves food meeting Britain’s consumer needs and they have to bring changes as per Spanish food trends and preferences.
Through this approach, they can keep their food products the same but bring some changes in their taste as per local consumer demands. From the elements of the marketing mix, they must bring changes in product, pricing, and place primarily. They must adapt pricing as per the affordability of local consumers and keep the price lower in comparison with competitors to attract local consumers. On the other hand, they must focus on choosing the place where people like to go out.
EPRG Framework
Figure 3: EPRG Framework. (Source: International Marketing- EPRG Framework, 2021)
Based on the ERPG framework, Greggs Bakery must go for a polycentric approach focusing on offering equal importance to every country’s domestic market unlike the ethnocentric to treat every market similarly (Annushkina and Regazzo, 2020). This approach will help in bringing several changes in its products and consumer along with bringing uniqueness to meet local consumer demands.
Market entry strategy
The company must utilise franchising as a market entry strategy in which a semi-independent business owner (the Franchisee) pays fees to the franchiser for using a company’s trademark and selling its products or services (Glowik, 2020). Utilising this strategy will help the company in identifying the local consumer needs easily and the franchisee will help them meet those demands using their trademark.
It would help in achieving speedy success and attain the aims and goals of expanding. A franchisee would be able to bring changes in products and services so they can meet the demands and needs of the local consumer. The primary benefits of this strategy are a rapid expansion of the sales market and increased sales. Therefore, Greggs Bakery must enter the Spanish market using franchising and they will update their products and services quickly as well.
Promotional Strategy
AIDA model: AIDA model stands for Attention, Interest, Desire, and Action model and it is an advertising model that helps in identifying the various stages people go through while purchasing the product (Ullal and Hawaldar, 2018). The model is primarily used for sales strategies, digital marketing, and public relations campaigns. Attention signifies the ways to attract consumers. Interest means increasing the consumer’s interest in the product after they are aware of it. Desire means changing the consumer mind set from liking to buying the product. Lastly, action means initiating consumer action towards purchasing of product or service.
It is must that the company creates awareness among consumers about the products and services they are delivering instead of just assuming it (Fortenberry and McGoldrick, 2020). For this purpose, Greggs Bakery must focus on developing an intensely targeted message that helps in personalising the services being delivered. It would help them in seeking customer attention by offering them personalised services.
Further, gaining consumers’ interest is the hardest part. It is must to identify the most relevant ads that are essential for the chosen target market. Convey the essential message to the consumer rather than adding useless information. For example, Greggs’ “Where’s the chocolate donuts?” ad campaign would keep them unique and different from their competitors. This ad will help them in attracting teenagers.
After building the interest of consumers in particular products or services it is must to make them realise the reason they need this particular product or service (Abdelkader and RABIE, 2019). For this, they can optimise their desire of buying the product by advertising the benefits of having the less sugar-contained donuts they are serving. Lastly, for invoking customers to take immediate action the company can serve one free food item if they are buying donuts will allow customers to buy them immediately.
Push-Pull strategy: Push and pull are described as two major principles for guiding the marketing strategy. Before choosing one of the marketing strategies it is must to identify the long-term and short-term goals of the business. A push marketing strategy can be defined as the process in which companies try to take their products directly to the customer (Susanty et. al. 2020).
It includes all the techniques and procedures in pushing their products to the potential customer. Utilising this strategy, the seller will develop awareness among consumers and simultaneously put it in front of consumers. This marketing strategy is majorly used by companies that have recently launched a new product or service, and when they want to stand out from the crowd.
On the other hand, a pull marketing strategy means pulling the customer to come and buy the products. This marketing strategy assures that there are some factors that consumers come looking for in the brand and its products. It includes mass media promotion, advertising, sales promotion, and verbal referrals (Vieira et. al. 2021).
It is majorly focused on developing long-term consumer manufacturer relationships. It aims at developing brand loyalty along with assuring that customers keep patronising the brand. This strategy requires lots of effort in advertising and promotion so customers will be aware of the products and services.
The Greggs Bakery must use a pull marketing strategy to attract customers. For instance, they can advertise and promote products to a great extent that pulls customers to the brand. The primary disadvantage of using the push strategy is that pushing the customer to buy a product can sometimes irritate customers resulting in customer dissatisfaction.
Attracting customers through mouth-watery images and posts can pull customers toward the brand. Other than that, they can also pull customers by offering those discounts and vouchers. Therefore, utilising a pull marketing strategy helps attract customers along with enhancing customer satisfaction.
Digital
Web Presence: From the four different e-commerce areas, the Greggs Bakery must utilise B2C e-commerce business model to attract consumers. B2C business model allows businesses to sell its products and services to end consumer (Civelek and Ertemel, 2019). The world is developing rapidly and trends of online shopping are also increasing rapidly. This is the most common business model but offers diverse advantages.
The decision-making process through this model is much easier in comparison with B2B business model. It is also known as retail e-commerce that incorporates sales between online businesses and consumers. Utilising B2C comes with diverse advantages like products offered at lower prices or wider reach to customers.
Further, B2C e-commerce will allow them to enhance profitability in comparison with B2B as they have to share profits with third-party sellers. It also allows direct communication with buyer that helps in improving customer satisfaction along with analyzing future demands of consumer. It also benefits the company in offering personalized services optimizing customer service experience. B2C e-commerce business model also allows companies to develop value for consumers and people (Chen et. al. 2019).
B2C innovators have optimized technology like native advertising, mobile apps, remarketing to consumers directly and more. Therefore, the Greggs Bakery will achieve more benefits if they incorporate B2C e-commerce business model.
Digital marketing approaches: Looking at the business model and PEST factor of Spain, it can be observed that technological advancements and utilisation of social networking site is high (Shankar et. al. 2021). Based on this, it has been suggested that Greggs Bakery must have their social media accounts on the most used social networking site in Spain like Instagram, Facebook, Pinterest, and more to attract their targeted customer. On the other hand, the age group they are aiming to target mostly uses social networking sites before buying any products and services. According to this, it is necessary to target customers through social networking sites.
Furthermore, they can also create mouth-watering Facebook ads and publish YouTube ads in between episodes’ customers are watching to attract them. On the other hand, advertising with the help of Instagram influencers will also help in attracting consumers (Minculete and Olar, 2018). People believe in the quality of products and services if it is referred by someone.
Therefore, they must use social media for marketing their products. Operational CRM approach has been adopted by the company so they can focus on offering optimised customer service and market their products to meet customer demand. It will also help in identifying issues customer are facing with company’s services so the company can bring changes as per market demands.
SEO: SEO stands for Search Engine Optimization and it is the process majorly used for optimizing a website’s technical configuration, link popularity, content relevance, and more to make the web pages easily findable and popular for related search queries. Search Engine helps in ranking the web page better. It is beneficial for improving the user search experience and increasing the page’s ranking as well by adding the content that meets the user search needs (Schultheiß and Lewandowski, 2020).
Utilizing this technique means using relevant keywords in Meta descriptions, titles, featuring descriptions URLs, and headlines with keywords instead of strings of numbers and schema mark-up. It is the primary practice that helps the website in ranking higher on a search engine result’s page (SERP).
On-page SEO aims at improvising the parts of the website that are under the company’s control, whereas; off-page SEO aims at increasing the authority of the domain with the help of earning backlinks and content creation from different websites. On-page SEO means looking at what the site is about, while; off-page SEO looks at the way the site is popular and authoritative (Kumar and Paul, 2020). The Greggs Bakery must use on-page SEO as it helps in determining the ranking factor of the site.
It includes factors like page speed, keywords, optimised content, title tag, and site accessibility. The more the site is ranked the more it will be able to reach customers while they search keywords similar to sites.
Analytics: Analytics helps in measuring the advertisement ROI along with tracking the video, flash, and social networking sites. It is all about interpreting, discovering, and communicating significant patterns in data. In simple terms, it helps in analysing the insights and helpful information that the company wouldn’t be able to detect. The Greggs must use data analytics to better understand their customers and their choices.
With the help of this information, they would be able to personalise content, develop strategies and products (Mariani and Wamba, 2020). Using data analytics also help in identifying the products that are sold the most and liked by customers. Through this data, the company can also optimise its business performance and attract more customers.
Furthermore, KPIs will be developed to measure sales of the products and this will help in predicting the products and taste customer likes. With the help of this, companies can bring product innovation and change in taste that is preferred by customers. Therefore, using data analytics and KPIs will help in boosting organisational performance along with sales and revenue.
Conclusion
It has been concluded from the entire analysis that every organization needs to analyze several aspects before expanding their market into a foreign country. The report has described various factors of entering a new market and the business model that they should adopt. The company chosen is Greggs Bakery established in the UK aiming to enter Spain.
For this purpose, they must adopt the Glocal approach to enter the market and brings product development meeting local consumer demands. Further, they can use AIDA and a push-pull marketing strategy to attract consumers and increase sales and revenue. The Greggs Bakery must use B2C as its e-commerce business model to increase revenue and profit. Lastly, they must use on-page SEO to increase web page ranking and data analytics.
References
Abdelkader, O.A. and RABIE, M.H., (2019). Exploring The General Awareness of Young Users According to AIDA Model Applied to Social Networking Ads. Journal of Theoretical and Applied Information Technology, 97(6), pp.1693-1703.
Annushkina, O.E. and Regazzo, A., (2020). Implementing Internationalization Strategy: The People Question. In The Art of Going Global (pp. 155-180). Palgrave Macmillan, Cham.
Chen, J., Guo, Z. and Tang, Y., (2019). Research on B2C E-commerce business model based on system dynamics. American Journal of Industrial and Business Management, 9(04), p.854.
Civelek, M.E. and Ertemel, A.V., (2019). The role of brand equity and perceived value for stimulating purchase intention in B2C e-commerce web sites. Business and Economics Research Journal, 10(1), pp.233-243.
Cox, J., (2021). The higher education environment driving academic library strategy: A political, economic, social and technological (PEST) analysis. The Journal of Academic Librarianship, 47(1), p.102219.
Favaretto, R.M., Musse, S.R. and Costa, A.B., (2019). Detecting Hofstede cultural dimensions. In Emotion, personality and cultural aspects in crowds (pp. 93-103). Springer, Cham.
Fortenberry, JL and McGoldrick, PJ, (2020). Do Billboard Advertisements Drive Customer Retention?: Expanding the “AIDA” Model to “AIDAR”. Journal of Advertising Research , 60 (2), pp.135-147.
Glowik, M., (2020). Market entry strategies: Internationalization theories, concepts and cases. Walter de Gruyter GmbH & Co KG.
Jewell, J., (2019). Greggs, its vegan sausage roll and the art of effective PR. The Western Mail, 2019(11 Jan).
Kumar, G. and Paul, R.K., (2020). Literature review on on-page & off-page seo for ranking purpose. United International Journal for Research & Technology, 1(06).
Lehmberg, D. and Hicks, J., (2018). A ‘glocalization’approach to the internationalizing of crisis communication. Business Horizons, 61(3), pp.357-366.
Liu, Y. and Shan, H., (2021). Fresh Fruit Time based on STP analysis and statistics method (Changchun) Word-of-mouth marketing strategy research. In E3S Web of Conferences (Vol. 233, p. 02055). EDP Sciences.
Ma, Y., Pu, L. and Wang, G., (2021, December). A Business Analysis for the Taier Company Based on STP Model and Market Forecasting. In 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021) (pp. 1282-1287). Atlantis Press.
Mallik, A. and Farhan, S.N., (2018). Customer Centric Approach Using 7ps of Marketing Mix. International Journal of Innovative Knowledge Concepts, 6(11), pp.136-149.
Mariani, M.M. and Wamba, S.F., (2020). Exploring how consumer goods companies innovate in the digital age: The role of big data analytics companies. Journal of Business Research, 121, pp.338-352.
Minculete, G. and Olar, P., (2018, June). Approaches to the modern concept of digital marketing. In International conference Knowledge-based organization (Vol. 24, No. 2, pp. 63-69).
Podrug, N., (2021). SHIFTS IN INTERNATIONALIZATION OF MULTINATIONAL CORPORATIONS. Economic and Social Development: Book of Proceedings, pp.89-96.
Schultheiß, S. and Lewandowski, D., (2020). “Outside the industry, nobody knows what we do” SEO as seen by search engine optimizers and content providers. Journal of Documentation.
Semenova, T. and Vitkova, E., (2019, February). Impact of macroeconomic indicators on the financial stability of construction companies in the Czech Republic and Spain. In IOP Conference Series: Materials Science and Engineering (Vol. 471, No. 2, p. 022030). IOP Publishing.
Shankar, V., Grewal, D., Sunder, S., Fossen, B., Peters, K. and Agarwal, A., (2021). Digital marketing communication in global marketplaces: A review of extant research, future directions, and potential approaches. International Journal of Research in Marketing.
Soegoto, F.A., (2021). Product Development using SWOT Analysis. International Journal of Entrepreneurship & Technopreneur (INJETECH), 1, pp.1-10
Spencer-Oatey, H. and Dauber, D., (2019). What is integration and why is it important for internationalization? A multidisciplinary review. Journal of Studies in International Education, 23(5), pp.515-534.
Sukma, D., Lubis, P.H. and Utami, S., (2019). Analysis of Marketing Strategy of Minyeuk Pret Using STP, Ansoff Matrix, and Marketing Mix.
Susanty, A., Handoko, A. and Puspitasari, N.B., (2020). Push-pull-mooring framework for e-commerce adoption in small and medium enterprises. Journal of Enterprise Information Management.
Ullal, MS and Hawaldar, IT, (2018). Influence of advertisement on customers based on AIDA model. Problems and Prospective in Management (December, 2018) Vol , 16 (4), pp.285-298.
Unkule, K., (2020). From Global to Glocal: A New Direction for Higher Education Internationalization.
Vieira, V.A., Severo de Almeida, M.I., Gabler, C.B., Limongi, R., Costa, M. and Pires da Costa, M., (2021). Optimising digital marketing and social media strategy: from push to pull to performance. Journal of Marketing Management, pp.1-31.
Online
Country Comparison. (2021). [Online]. Accessed through: <https://www.hofstede-insights.com/country-comparison/spain,the-uk/>
International Marketing- EPRG Framework. (2021). [Online]. Accessed through: <https://www.tutorialspoint.com/international_marketing/international_marketing_eprg_framework.htm>
Know more about UniqueSubmission’s other writing services:
