International Management and Marketing Assignment Sample
Introduction - International Management and Marketing Assignment Sample
Marketing can be defined as the approaches and strategies used by a business to make more and more people aware of the products and services offered by the company. Earlier marketing was the tool only to sell more and more products, but in today’s modern business environment, marketing has a broader meaning. In the present business situation, marketing is not only involved with the selling of more and more products but also to identify new market opportunities for the products and services and design the products and services as per the needs and desires of the customers (Armstrong et al., 2018). This assignment is also related to such a case in which a company wants to widen its market and take entry into the international market. In the current business situation, companies need to take their operations internationally to make more profits and have a larger market share. In this assignment also, a case will be described in which a company wants to have a larger market share by taking entry in some other international marketplace. The company taken into account for this assignment is Cake Box, which is a U.K. based company specialized in making eggless cakes.
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Aims & Objectives
This report will throw light on all the marketing strategies and approaches used by the Cake Box to have a stand in the international market.
There will be a discussion about the international market plan made by the company.
Analysis of the micro and macro level of factors influencing business operations.
Discussion about marketing entry modes.
Preparation of an international marketing plan.
Risk management strategies.
Methodology
The methodology used in the report is a secondary research methodology. All the data has been collected by the secondary data sources like internet websites, journals, and articles. All the data has been obtained from reliable published sources.
Findings, Analysis, and Evaluation
Cake Box- An introduction& history
The journey of this fantastic company began in the year 2008. The company was named as Egg-free Cake box or E.C.B. The company first started in the year 2008 in east London. It was just a small store started by a Sikh guy. He started the company with a vision to provide some new concepts to the cake world of London. Now the E.C.B. is a very famous company with more than 120 branches all over the U.K. The company now also deals in cheesecakes, muffins, and 100% pure buffalo milk sweets (Cake Box, 2020). But the company is still a leader in the cake market-making utterly delicious egg-free cakes on demand of the customers.
Vision and Mission
The company started with a view to provide on-demand service to the customers and make delicious eggless cakes for the customers. The new concept was to eliminate eggs from the cake but not to compromise on the texture, taste, and quality of the cakes. The quality commitment was the first promise of the company, and they led this to a high level.
After capturing a massive market in the U.K., E.C.B. thinks of expanding its operations by taking the lead in the international market. The company wants to have more and more profits and make more people aware of the products and services offered by it by taking entry into another country. This can only be done by opening stores in some other country—the host country was chosen by the company for its expansion inIndia.
Internal and Cultural Analysis of Cake Box
Before planning any step to take the business to an international level, the market needs to have an internal review of the activities of the business. This internal review helps to identify several essential aspects that are necessary for a company to look upon. With the help of SWOT analysis, Cake Box can know about its strengths, weaknesses, threats, and opportunities.
The SWOT analysis of Cake Box is given below:
Strengths
Egg-free cake concept: The first and foremost strength of the business is that it provides egg-free cakes to the customers. This is a very new and useful concept for the customers who do not eat an egg or are purely vegetarian. This concept makes it unique, and it is the unique selling proposition of the business.
Availabilityof funds and other resources: The company has worked hard for many years, and now the company has enough funds and resources to think about its expansion so that it can earn more profits. The company can easily take entry into the international market as it has enough backup of funds (Keegan, 2017).
Deals in other products: Earlier Cake box dealt only in cakes, but the product line of the business has increased, and the company is now dealing with many other eatable products that are liked and preferred by the customers. All these products are 100% pure in nature, which shows the quality commitment of the business (Cake Box, 2020).
High market value: Cake Box has worked for many years, and the company has gained a high market value. This is a strength for the business to built brand loyalty among the customers.
Weakness
No international trade: The major flaw of the business is that it has no operations in the global market. The company deals only in the U.K., which is a weakness. In today's modern business environment, it is essential for a business to have international trade, so the Cake Box must also think of taking its business to the international level.
Opportunities
Establishment of international business: Talking about the possibilities of the company, Cake box needs to look for new avenues to set up its business in the global market. This is an excellent opportunity for the company to earn more substantial profits.
Larger market share: By taking its business to a higher level, there are opportunities for the business to grow its operations and have a hold on a larger market share. This will help the company to have sustainable growth and development (Sheth, 2020).
Better customer loyalty: As the Cake Box has the right brand name, it is the opportunity for the business to have better customer loyalty in the international market as well.
Threat
Market Competition: The primary threat to the company is the intensive market competition. The bakery market is so hugs, and various sellers are selling different kinds of cake and bakery products. So, it is a threat to the business to have its place in the market and be the market leader.
Whether to Internationalize
Microanalysis of India
As the Cake Box has chosen Indian as the host country to expand its business operations, then the company needs to have a close look at the micro-level aspects of the country. Several factors have a direct effect on the working of a business in a country. Given below is the SWOT analysis of the Indian Bakery industry.
SWOT analysis of the Indian bakery industry:
Strengths
An adequate supply of raw material: The first and foremost strength of setting up a business in India is that the country has adequacy of raw material (De Mooij, 2018). As the country has farming of cattle, it will be straightforward for the business to get the raw material very easily and also at affordable costs.
Low capital requirement: To start a business in India, meager capital is required. The place and raw material will be available at a low cost, which is again a benefit for the company. People working in the store will also be available at meager costs, which is another strength of setting up a business in the country.
Rising middle class: earlier, it was the trend that only high society or high-class people used to have cakes and other bakery products like cheesecakes. But as the country is a developing country, people of the nation are also developing to a great extent. The middle-class people are also rising, and they are also very much into the trend of having cakes, pastries, and other bakery products on every occasion (Deepak and Jeyakumar, 2019). This is going to help the company to have a larger market share in India.
Weakness
The larger share of unorganized market players: In India, there isa large number of people who can be said as unorganized market players. They run tiny stores, but their customer loyalty in their locality is very high. So it is the weakness of the people of the country that they do not want to try something new.
Price fluctuation sensitivity: It is important to note that India is a developing country, and people of the country make every move by taking a look at the prices of the products and services they are going to buy (Datta, et. al., 2017). It is also a weakness in the country that people are price sensitive. There are fluctuations in the prices of products and services in the country which lead to fluctuations in demand for products and services.
Fragmented cold supply chain: The supply chain in India is not very well managed. It is fragmented, which leads to difficulties in the transfer of products and services from one place to another. This is a weakness in the supply chain system of the country,especially for nonperishable goods.
Opportunities
The potential market in rural areas: As it is already said above that the country is growing day by day. So the rural areas of the country are also developing and growing day by day. It is essential to note that a large part of the country is a rural area. There are opportunities for having a potential market in the rural areas as well.
More vegetarian people: In India, a large number of people are purely vegetarian, and they always wanted cakes to be egg-free, but most of thetime, they could not get it. It is also an opportunity for the business to set up in India so that it can have a larger market share of the vegetarian people (Wu and Li, 2018).
Threats
Rising Prices: One of the major threats in the country is the rapidly increasing prices of everything. As people of the country are price-sensitive, it is a threat for the business to set up in the country.
Technology up-gradation: Technology is growing day by day in India. People love the latest technology, and the people of India also go for the latest technology products and services. If the business adopts the latest technology, it can be a threat to the company.
Lack of skilled workers: It is also important to note that the people of the country are not highly skilled in bakery work (Stead and Hastings, 2018). There is a lack of skilled labor in this industry. So it is a threat to the business.
Macro analysis of Indian bakery industry
Once the micro-level analysis of the country is done, it is also important that the macro-level analysis of the country is also done well before making any decision to set up a business in the host country. The macro-level analysis of a country involves the political, economic, social, technological, environmental, and legal structures of the country.
Political factors: The political factors of the country involve government interference in the production of eatables items. It is because they are directly associated with the health of the people of the country, so the government of the country does not take any chances with that. It is prescribed by the government that information about the ingredients and all the nutritional information about the products should be disclosed by the producer (Jindal, et. al., 2020). The government in India is stressing on healthier options for the people of the country.
Economic factors: There are several economic factors that affect the decision to set up a business in the host country. The economic factors for the Cake box are the price fluctuations of raw material and the income status of the people of the nation. In the case of India, it is very feasible to set up business in the country as the people of the nation are earning more, meaning that their per capita income is growing day by day. The raw material is also available at affordable rates. The country is growing, so the gross domestic product of the country is also increasing year by year, which is a positive sign for the business.
Social factors: Society or the people of a country are the main target customers for whom the products or services are designed by a business (Ismail, et. al., 2018). Talking about the people of India, a large portion of people in India are vegetarian, which is a good point for the Cake box as it also has the concept of egg-free cakes. People of India always look for cakes that are eggless, but sometimes they could not find. On-demand services of the cakes are not very easily available in the country. Talking about the lifestyles of the people of the country, the society is growing at a very fast pace. People try out new things in their daily lives. People of the middleclass are also rising at a very rapid speed. People in rural areas also try out new things for their daily lives. They are also rising.
Technological factors: Technological factors are related to the up-gradation in the methods of production of goods and services in a country. As it is already known that India is a growing and developing nation, the level of technology is also growing and developing in the country. Businesses in the nation are using the latest technology and production methods to produce the goods and services in the country. People of the country are also taking an interest in the latest goods and services.
Environmental factors: Environment factors are significant to be considered while setting up a business in any country (Liu et al., 2017). In India, the environment is a major concern, and the government has imposed many rules and regulations on the protection of the environment in the country. Any company setting up a business in India has to adhere to the laws of government regarding the protection of the environment.
Legal factors: The legal factors of a country are related to the laws and regulations of the government. The legal framework of the country is rigorous in the case of eatable items. The government has imposed several regulations and standards tests that are to be cleared by the companies producing any kind of eatables.
Justification for Internationalization
After the analysis of the macro and micro level analysis of India, it is estimated that the country is feasible for Cake Box to set up its business. The first and foremost justification is that there more than half people of the country are purely vegetarian who do not even have eggs. This is the strength for the business as the concept of egg-free cakes will do the best in such a country. The cost of setting up a business is also not too high in the country. Only a small amount of capital will be required to start the stores in India. Labour will be available at cheaper rates. Coming on the point if unskilled labor, they can be trained by the company. Cake Box is an excellent company with high standards of quality, so it does not need to worry about the strict government regulations imposed on quality on eatable items. The company would not face any difficulty from the government side. Looking at the environment, it is the production of cakes and another eatable item, so there will be no harm to the environment (Massingha and Pomering, 2017). All the items are purely organic, and there will be no adverse effect on the environment of the country.
Which Market To enter
Indian Political, economic and cultural environment
The political elements of the nation include government impedances in the creation of eatables things. It is because they are legitimately connected with the wellbeing of the individuals of the nation, so the administration of the nation doesn't take any risks with that. It is endorsed by the administration that data about the fixings and all the nourishing data about the items ought to be uncovered by the maker. The government in India is worriedabout more beneficial alternatives for the individuals of the nation.
In the event of India, it is entirely plausible to set up business in the nation as the individuals of the country are winning all the more implying that their per capita pay is developing step by step. The crude material is additionally accessible at moderate rates (Boughtaling, et. al., 2019). The nation is developing, so the total national output of the nation is additionally expanding step by step, which is a positive sign for the business.
India is a socially diverse country, and there are different cultures that are practiced in the nation. If cake box wants to open more than more store in different parts of the country, it has to make sure that the products are prepared as per the needs and wants of the people in the different region because, in India, every state of the country has different taste and different sets of people having different cultures. Individuals of India consistently search for the cakes that are eggless; however, some of the time, they couldn't discover. On request services of the cakes isn't effectively accessible in the nation.
Taking entry into India’s Bakery industry
After the analysis of all the factors, it can be said that the most feasible and appropriate sector for the cake box is the bakery industry of India. The industry is growing day by day, and there are many chances that the company would grow in this industry.
Market entry strategy
Entry mode in India
It is important for Cake Box to decide on the mode of market entry that will be used by the business to start the business in India. The mode of entry that will be used by the company will be a Hierarchal model. This is the mode of entry of the business as a separate entity in the country. There will be no intermediates in this type of market entry mode (Vellas, 2016). For the cake box, the hierarchal model of market entry will be the best suited as the company deals in eatable items. The company can enjoy all the profits, and there will be a centralization of control in this market entry mode.
Management strategy recommendation
For managing the hierarchal mode of market entry, there are some recommendations for risk management for the business which are given below:
The risk management strategy that will be used by the company will be the Avoidance strategy. Avoidance strategy is to avoid the risk at source. This is the best-suited strategy for Cake box, and for that, the company has to take some following steps:
The company must have a backup of funds so that in case of losses, the company is not in a situation of trouble as the company will be solely responsible for all the losses.
There has to be a perfect panel of management that will look after all the activities taking place in the stores (Morgan et al., 2018).
Employees of the host country must be trained well before so that they are all ready to contribute their best efforts to the organization.
Intensive market research must be done by the company about the tastes and preferences of the target market. And for that, effective market segmentation must be done by the company.
Designing the Global marketing program
The global market program is related to the 4Ps of the business. The company needs to have an intensive study on the product, price, place, and promotion of the business so as to attract more and more customers. The marketing program of Cake Box is given below:
Product: The product offered by the company will be the cakes that are egg-free. This is the unique selling proposition of the business. The company will also provide products like barfee that is made from 100% pure buffalo milk. Other than that, cheesecakes will also be produced by the company to offer to the target customers.
Price: As it is analyzed in the above section that the people of India are price sensitive, if there is a slight fluctuation in the prices of the products, they do not purchase the products. So the company will adopt the strategy of economy pricing in the country. In this strategy, the company will keep the prices of the products fairly low, and this will be maintained in the business unless there are some other changes in the income levels of target customers.
Place: The place of the offering of the products will be the stores opened by the company. The products are nonperishable in nature, so it is not feasible to transfer them from one place to another. The company will open different stores at different places for the delivery of products.
Promotion: The Indian population is very much influenced by T.V. and the internet (Hult et al., 2018). So the best strategy to promote the business is to use social media platforms and T.V. advertisements. Social media platforms like Instagram and Facebook will be the best to attract more and more customers. Other than that, website advertisements can also be used as a way of getting the target customers' attention.
Recommendations for implementing and coordinating the marketing plan
There are some recommendations for the Cake box to implement and coordinate the international marketing plan. The recommendations are given below:
Set up correct expectations and forecast the sales of the business.
Build a strong team and procure all the resources that are essential for the company to kick start the business in the host country (Samiee and Chirapanda, 2019).
Communication of the plan effectively to the team is very important for the company to have the correct course of action.
Time scales and tracks must be formulated well before to analyze the continuous performance of the business.
Regularly monitoring the activities of the business is another major recommendation. This will help to keep track of all productive and nonproductive activities of the company (Asseraf et al., 2019).
Willingness to adapt is very important in a country like India, as it is socially and culturally diverse.
Conclusion
It is concluded from the above report that marketing is an essential part of any business. Without effective marketing strategies, a company cannot work effectively. It is also presented in the report that in order to have higher profits and enjoy economies of scale, it is important for a business to take its operations to the international level (Hapsari,et al., 2017). In this case, Cake Box which is a U.K. based company producing eggless cakes wants to take the business to the international level. The company decided to open its stores in India. For that purpose, it is imperative for the business to have a closer look at the micro and macro-level factors that can have an impact on the operations of the company in India. A comparison of political, economic, and cultural aspects is important. It is highlighted in the report that effective market entry mode lies hierarchical mode is to be chosen by the company. There is a need for making an effective international marketing plan to set up business in the host country. Strategies of risk management are also imperative to be decided in advance so as to be safe from any troublesome situation.
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