Global Marketing Management Assignment Sample

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INTRODUCTION

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The global marketing management refers to the emphasis on marketing activities of the company`s products or services in the international markets. This global marketing leads to satisfying the needs of the global consumer’s enables company to enhance the market share. The current report is based on the Sainsbury that located in the United Kingdom expands its business to the new market place or new country India. The study will conduct the CFA analysis of the Sainsbury. Further it will analyze the macro and micro market analysis of the Indian market using different tools. Moreover, it will evaluate the macro industry`s competition, micro-market positioning and competitiveness of the Sainsbury in the new market. The study will further shed light on value chain analysis and market entry modes for the Sainsbury. At last it will highlight some international theories along with some recommendations with regards to marketing.

PART 1

In the current time, each and every business requires to expand its business to the global level. The global expansion leads to generate several benefits to the expanding company as it able to increase its market size, competitiveness and reach to new talent as well as resources. It is a strategy that enhance company`s revenue by engaging new customers in the new market place. The Sainsbury is a retailer company of the UK, offering grocery items, and merchandise and clothing items (Jones, 2023). It operates business through supermarkets and convenience store; also provide services through online channel. Now the company expands its presence to the global market India. To expand business in the new market, the company needs to understand the requirement of the product in the costumers in the new market.

CFA Analysis

 To expand the business of Sainsbury to the new location India, the company needs to do marketing. For this the Sainsbury requires to be aware of three levels of products. The company has to analyze the core, formal and augmented benefits of the product to new market customers (Rejeb, Rejeb and Treiblmaier, 2023). By analyzing these three levels, it enables company to market the products and services effectively and make sure that customer get what they required.

Core benefit- The core benefits of the Sainsbury product is that provide high quality items at fair price, this leads to satisfy customer needs.

Formal product- It offers products such as food items including juices, fruits, vegetables, pet foods, child and toddler products, frozen foods, clothes for the man, women and child’s.

Augmented Product-It is intangible benefits offer by Sainsbury to its customers give competitive advantage. The service includes good packaging, sales service and so more.

Macro and Micro Market analysis

Macro Market Analysis

For the expansion in the new location, the company requires to do macro market analysis before entering that country. As the macro factors impacts the working of the company, to conduct business effectively and efficient, the business needs to consider these factors-

Political Factors- These factors includes the rules, regulations that need to be followed by any of the company. The government has made several rules for the entry of new firm in the country as well as products of the company due to safety of the people. If this rules are not adhere by the Simsbury regarding food safety, then there is high chances that company will banned by the authority.

Economic Factor- Economic factors, such as interest rates, prices, costs, and exchange rates, significantly impact business activities. Management Assignment Help Sainsbury must analyze these factors as they directly influence its operations. For instance, rising inflation in India, currently at 5.10%, reduces purchasing power and decreases demand for Sainsbury's products. This imbalance between demand and supply negatively affects the company's profitability

Social Factor- It includes factors like culture, belief, taste and preference of the customers. The Sainsbury needs to offer the food products and merchandise according to the demands of the Indian customers. As their culture and preference is different from the UK.

Technological Factor- In the modern times, the use of technology increases. With the help of technology, the company engages customers via social media, facilities payment, online services and so more (Kardes, Reinecke Flynn and Dugan, 2021).

Environmental Factors-It includes the environmental factors like weather condition, temperature, climate changes. It leads to affect the Sainsbury in the Indian market as it impact the inventory of the company.

Legal Factors- There are different legal laws that the Sainsbury needs to follow before entering the Indian market. The company needs to accept terms and condition set by the local authority related to taxation, registration and so more.

Micro market analysis

To conduct the activities of the business effectively and efficiently, the business evaluate the micro market. To engage customers the company offers high quality product at the affordable prices. The company provides good working facilities to its employees that enable the company to attract the highly skilled and cost- effective labor. To conduct the business successfully the company evaluates its competitors in the market like D-Mart, Spencer`s retail and ensures that furnish better services from its competitors. The company makes better relation with the suppliers to get the supplies on the time so effectively able to fulfill the demand of the customers. By increasing profitability, the company able to grab attention of shareholders leads to offer high returns.

The Sainsbury also evaluate the Micro market by using the SWOT analysis, in these the company analyze the strengths, weakness, opportunities as well as threats of the Indian market.

Strengths- the Indian market is worth for the retail food industry. It is the rapid growing market with widely growing population. The market is considered important for the Sainsbury as it aids the company to increasing market share and more customers. Customers of the Indian market love to taste new food items as well as interested in acquired new fashion.

Weakness- The Company needs to analyses weakness of the new market, this enables the company to find solutions of the problems. As it is difficult to earn loyalty of the customers, it takes time and the company needs to be keep patience.

Opportunity- There is opportunity for the Sainsbury to grow their business buy offering products and service in new market it leads to increase the income of the company as well as able to engage new customer with different taste and preference and leads to increase the market share (Karthik and Prasad, 2020). It gives the opportunity to company to further develop its products according to the taste of new customers, and offers this to own country. It provides a competitive advantage to the company.

Threats- The Sainsbury has to face some threats in the new market as the language and culture is different. The company finds it difficult to make a strong relationship with its customers rapidly. For this, it needs some time. If the company not able to coordinate with the needs and demand of the customers, it may face some problems, leads to hampers the reputation and make losses.

Macro industry competition and market positioning, competition

Macro Industry Competition

Threats of Substitute product- The Sainsbury have threats to the substitute product in the Indian market. There are large numbers of substitute product offer by Reliance, D-Mart at lower price (Birru, Sudarmiati and Hermawa, 2022).It make difficult for the company to attract customers rapidly.

Bargaining power of buyers- The bargaining power of the buyer is high as there are many companies that offers grocery and merchandise product in the Indian market. The little increase in the cost of the Sainsbury makes the buyer shift to the products of the other company.

Threat of new entrants- There is a chance that company face threats to the new entries, because in the market mechanism there are low barriers for entry of new firms. This may impact the Sainsbury.

Bargaining power of the suppliers- In the new market, the bargaining power of the suppliers is weak as there are large numbers of supplier. Also, there is tough competition in suppliers, increments in the price of one shift the Sainsbury to purchase supplies from other suppliers.

Rivalry among existing competitors- There is high rivalry among competitors in new market. This impacts the profits of the Sainsbury and due to this the company makes efforts to keep its product different from its competitors.

Micro-market positioning and competitiveness

The micro-market positioning means the ability of the Sainsbury to influence the perception of the customers related to the product compare to its competitors. The aim of the market positioning is to set the image of the company`s product that grab the attention of the customers. The Sainsbury can position the company in the new market by offering high quality products including healthy and fresh food items. For market positioning the company make promotion through social media including Face Book, Twitter, Insatagram and so more as company can attract the attention of more customers from this medium (Dolega, Rowe and Branagan 2021). It can done advertising through newspapers, radios, magazines and so more. The strategy of company to charge lower prices to its customers gives a competitive advantage (Bonfre, Chintagunta and Dhar, 2022). Also, the various offers on products such as discounts, buy one get one free, free coupons by the company aids it to grab large audience in a less time.

A company that wants to enter into the new market firstly identifies its competitors. The competitors are the group of people who plays important role for the entry of Sainsbury in the Indian market. The competitors of the Sainsbury in the Indian markets are Reliance, D-Mart, Big Bazaar, Star Bazaar and so more. It is essential for the company to analyze the activities of this competitors, it help the Sainsbury to conduct its activities like marketing, product offering nad so more. There is high competition in the Indian market for the retail supermarket of forign country as well as for the Sainsbury. There are number of competitors that also use same business model like Sainsbury means offer goods of high quality at affordable price. It make little difficult for the Sainsbury to make its position in the market. For this, it has to offer some different services like discounts, coupons, offers and so more.

PART 2

Value chain

A value chain is a activities that carried by the Sainsbury to create or build a value for its customers. According to the value chain, activities divide into two parts mainly primary activities and support activities.

Primary activities

Inbound Logistics- For manufacturing of the products, the company makes and effective supply chain that enables the Sainsbury to receives raw material on time, make good storage of food. When the management of supply chain is effective, it build a value to the company`s operations as well for the customers.

Operations- The Sainsbury convert raw material into finished good. By evaluating operations, Sainsbury maximize operations. It aids in enhancing the efficiency of the business and ensures that customers get the product with the most value added means at lower cost.

Outbound Logistics- In this, the Sainsbury move the goods to the ultimate consumer. In this activities include material handling, warehousing, order processing and delivering (Xiao, Chen and Yu,, 2021). By improving this, the company get competitive advantage and growth.

Marketing and sales- The Sainsbury use BTL and ATL techniques to sell its products in the new market. It do marketing through advertising in newspaper, television, billboards and flyers. By offering high quality goods at low price grab attention of more customers and lead to create value for company.

Services- To create value to the customers the Sainsbury furnishes various services to its customers including special offers, discounts, allowing exchange and returns and accepting multiple modes of payments.

Support Activities-

Procurement- To access to the raw material, the Sainsbury makes contact to the different suppliers and negotiates with the suppliers to get the best price. This decline the cost of operation to the company enables to offer goods at low price. High quality good at low price is USP of the Sainsbury.

Human Resource Management- For this, the company recruit right person to fill the vacant position. The company offers voluntary benefits scheme to its employees, this leads to motivate them (Vedhathiri, 2020). The huge dependence of the company on the talent of the employee enhances importance to the value chain support activities.

Technology development- The Sainsbury use technology like automation, technology supported customer services, data analytics and product designing to create value. It inter- connect company with customers. The use of technology creates value to the customers as they receive products as per their preference and on time.

Infrastructure- It includes activities like quality management, legal matters, financing, accounting and so more. Effective management of the infrastructure allows Sainsbury to maximize value to the entire value chain.

The Sainsbury needs to evaluate the market entry factors before entering into the Indian market. The market entry factors include competition, cost barriers, regulations, competitive advantage, legal, political factors and so more. The Sainsbury must considered this factor before entering, it needs to identify the level of competition, if competition is low than it enjoy high sales but if there is high competition, the company find it difficult to mark its presence. It needs to analyze the political and legal factors too as each country have different rules and regulations for conduct business.

Modes of market entry

Through this, company can enter into new market

Joint Venture- The joint venture is one of the modes of entry into new market. The companies who want to expand its business activities in new market can form a joint venture with the local business. The both joint venture partners share rewards, risk, knowledge, brand and expertise. The companies share profits and loss in the predetermined proportion.

Franchising- The company that wants to operates business in the international market with limited and financial risk, can enter in the new market with the help of franchising. In this an agreement made between two parties (Rosado-Serrano and Navarro-García, 2023). In this the right given to the franchisee to market the goods and services while using the trademark of the franchisor.

Greenfield Investment- Through this, the companies can enter into the new markets. In this the company makes investment to purchase new land and resources in the country in which it needs to operate. This entry mode involves high risk and huge cost. This mode is advantageous for the large and well-established companies rather than new companies.

The Sainsbury can enter into the Indian market with the help of entry mode of Joint Venture. It is more beneficial for the company then other modes (Chan, Tetteh and Nani, 2022). Through this the company reach to wider audience in a less time leads to increase profitability.

Internationalization Theory

The company uses this theory to enter into a new market successfully.

Network theory- According to this theory, for entering into the new market for conducting the business activities, the Sainsbury makes formal and informal relationship with the network participants in the Indian market. The company develops and maintains the relationship so that able to gain the access to the external resources (Morrish and Earl, 2021). According to this theory, the Sainsbury recognize and analyze the prospective customers, competitors in the new market. With the help of network, it able to find gaps, opportunities, threats as well as the strategies to enhance the performance of the company. The company make network with the suppliers, distributors, customers. With effective network the company able to do business more effectively and efficiency.

Uppsala model- The Sainsbury can effectively conducts its business activities in the new market with the help of Uppsala Model. The company can use its past learning as well as experience of the UK market to escalate its commitment in the new market. According to the experience of the UK market, the company can furnish services at lower prices with high quality to the new customers (Hult, Gonzalez-Perez and Lagerstrom, 2020). For this the company uses appropriate method of production, effective distribution channels that avail the good to customer on the time. When a company does business according to the past experience, it furnish more opportunity to company to conduct business efficiency. It declines the chances of any problem and losses in the business. This helps the Sainsbury to effectively mark its footprint into the new market.

Transactional cost analysis- In this the company considered the cost for do business in new market. According to this, the Sainsbury try to minimize their cost at all level including operations as well as decision making. To decline the cost of operations in the Indian market, the company approach several suppliers and select the one supplier who furnish the raw material on lower price, so that its make enable company to serve products on less price (Hennart and Verbeke, 2022). Also, the Sainsbury strive to establish effective distribution channel and by maintaining better supply chain, the company able to minimize cost.

CONCLUSION

As expressed, the global marketing emphasized on the marketing of products and services of the company in the international market. The report based on the Sainsbury, retail company of United Kingdom, that enter into the new market India. The products and services of the Sainsbury leads to attract new customer in the Indian market. The report stated the macro market analysis of the Indian market using PESTLE. The company need to identify this factor as rules, regulation, laws, culture and environment of each country is different. For micro market analysis, SWOT is used to know the strengths, weakness, opportunities and threat of new market. The Porter`s five forces tool is used to identify the macro industry competition, it furnished the idea to company related to rivals, bargaining power of customer, suppliers and so more. The report outlined the competitors of the Sainsbury in Indian market including Reliance, D-Mart. The report covered the value chain analysis of Sainsbury to know the competitive advantage by analyzing internal activities like operations, marketing, sales, and technology. It outlined international theories such as Network, Uppsala and Transactional cost.

Recommendations

With the above analysis it is clear that there are some recommendation which will be assistive to Sainsbury while entering in India. The most important work for the Sainsbury to enter in the Indian market is to grab the attention of the customers. It is done by the company through effective marketing strategies.

For this, the company does advertising with the help of social media using Face Book, Instagram as more, as the company able to connect more potential customers from this.

The Sainsbury can use direct marketing option to grab potential customers. It means direct contacting or communication with the target audience (John and De'Villiers, 2020). It can be done through using several tools like emails, phone calls, text messages. Also, it is a cost-effective measure.

References

Books and Journals

• Birru, A.C., Sudarmiatin, S. and Hermawan, A., 2022. Competitive strategies in the lodging service sector: Five porter analyses and case study SWOT analysis. Journal of Business and Management Review, 3(1), pp.001-017.
• Bonfrer, A., Chintagunta, P. and Dhar, S., 2022. Retail store formats, competition and shopper behavior: A Systematic review. Journal of Retailing, 98(1), pp.71-91.
• Chan, A.P., Tetteh, M.O. and Nani, G., 2022. Drivers for international construction joint ventures adoption: A systematic literature review. International Journal of Construction Management, 22(8), pp.1571-1583.
• Dolega, L., Rowe, F. and Branagan, E., 2021. Going digital? The impact of social media marketing on retail website traffic, orders and sales. Journal of Retailing and Consumer Services, 60, p.102501.
• Hennart, J.F. and Verbeke, A., 2022. Actionable and enduring implications of Oliver Williamson’s transaction cost theory. Journal of International Business Studies, 53(8), pp.1557-1575.
• Hult, G.T.M., Gonzalez-Perez, M.A. and Lagerström, K., 2020. The theoretical evolution and use of the Uppsala Model of internationalization in the international business ecosystem. Journal of International Business Studies, 51, pp.38-49.
• John, S.P. and De'Villiers, R., 2020. Elaboration of marketing communication through visual media: An empirical analysis. Journal of Retailing and Consumer Services, 54, p.102052.
• Jones, P., 2023. UK Retailers and Plant-Based Alternatives to Meat and Dairy Products. Athens Journal of Business and Economics, 9(2), pp.207-220.
• Kardes, I., Reinecke Flynn, L. and Dugan, M., 2021. Online retailing: determinants of competition between multinationals and local firms in emerging markets. International Journal of Retail & Distribution Management, 49(2), pp.263-280.
• Karthik, T.T. and Prasad, T.R., 2020. SWOT (Strength, Weakness, Opportunities and Threats) Analysis of Fast Moving Consumer Goods (FMCG) Industries in India. Shanlax International Journal of Commerce, 8(1), pp.92-100.
• Morrish, S.C. and Earl, A., 2021. Networks, institutional environment and firm internationalization. Journal of Business & Industrial Marketing, 36(11), pp.2037-2048.
• Rejeb, A., Rejeb, K. and Treiblmaier, H., 2023. How augmented reality impacts retail marketing: A state-of-the-art review from a consumer perspective. Journal of Strategic Marketing, 31(3), pp.718-748.
• Rosado-Serrano, A. and Navarro-García, A., 2023. Alternative modes of entry in franchising. Journal of Business Research, 157, p.113599.
• Vedhathiri, T., 2020. Faculty performance improvement through effective human resource management practices. Journal of Engineering Education Transformations, 33(Special Issue).
• Xiao, B., Chen, Q. and Yu, Z., 2021, April. Research on the Investment Value of Sainsbury’s. In 2021 6th International Conference on Social Sciences and Economic Development (ICSSED 2021) (pp. 108-115). Atlantis Press.