This document discusses international retail marketing and the marketing mix. It explores various marketing mix theories including the 4Ps model of product, price, place and promotion. It examines the differences between an international and domestic retail marketing mix. Finally, it provides a case study on how the UK retail company Superdrug could internationalize its marketing mix when expanding to the Australasian market. Key recommendations include maintaining product quality, reducing prices initially, increased promotion efforts, and identifying convenient advertising locations.

1. INTERNATIONAL RETAIL MARKETING
write an individual, critical, structured report on international retail marketing issues;
applied to the case study scenario of a retail organisation of your choice?.TABLE OF
CONTENTSTOPIC PAGE1.0 I
NTRODUCTION 32.0 PART
(A) 3 2.1 MARKETING MIX THEORIES AND
CONCEPT 32.2 ROLE OF THE MARKETING
MIX 63 PART
(B) 114 CONCLUSION
135 REFERENCES
14INTRODUCTIONThe aim of any company that is in business is to grow and
expand in terms of market share and product range. Many companies usually employ
various optimal techniques towards these objectives and the choice of the concepts and
theories to use is very important. There are various ways in which the company can achieve
these desired results and one of them is through the use of the marketing mix strategies
that target the key elements involved in market analysis. These key elements are the
product itself, the price of that product, its placement and also the promotion modes
employed to ensure the customer accesses the product.PART (A)In this part we are going to
explore the various theories and concepts that pertain to marketing mix and the role they
play in the designing of a marketing strategy for a retail organization. We shall also look at
the main differences between an international retailer marketing mix and a domestic retail
marketing mix.MARKETING MIX THEORIES AND CONCEPTSIn seeking to understand the
optimal utilization of a company’ s resources to enhance product penetration and
affordability there is the 4Ps concept (Luan, 2010). It focuses on the product, price, place
and promotion.Product This refers to a good or service that is the end result of a process
initiated either by the company, subsidiary or trading partner. It is what the company offers
to its customers.The producer must ensure that the product will satisfy the customers need
adequately. It must be of the required quality standards and before production starts the
company must carry out surveys on the exact requirements by the consumers. The
company should be able to offer assurances on the safety of use of the product through
warranties and safe packaging. This will ensure brand loyalty from the consumers which
will lead to higher sales volumes and it will increase the market share of the
product.PriceThis is the value attached to a product or service and it must be paid in
monetary terms to the producer.The company must know how much the target customers

2. are willing to pay and also their ability to pay for the product (Pitsaki, 2011). This will have
a direct effect on their demand for the product. Therefore the product must be priced
competitively to ensure affordability and also profitability on the part of the producer or
company.PlaceThis is the venue where the buyer of the product expects to find it and all
relevant information that pertain to the product.The consumer should know where to find
the product easily at any time and at the right quantities. This will call on the sellers to
devise clear places where the information on the product can be accessed easily. They can
use the internet and even mobile phones because majority of the people have access to
them.PromotionThis is the process of reaching out to current and prospective customers to
ensure the product has a wide customer base.This calls for the stakeholders to come up
with ways to inform the consumers of the presence of the organization and also its
products. They must advertise their products through aggressive techniques (Peter, 2007)
like sales promotions and also conduct public relations campaigns to make sure the
company’ s presence in the market is known by many.The 4Ps model clearly indicates that
the marketing mix is surrounded by the four elements which must be carefully determined
to enhance success in the market.2. Growth strategy mixThis concept focuses on the use of
the internet to ensure product penetration in the market (Yanan , 2000). Market
Development StrategiesThe company can adopt the use of the internet to penetrate
international markets. They can start advertising their products early in the potential
market to make sure when they finally enter that particular region there products will
already be known in various segments of the markets.Market PenetrationThe marketing
team will be required to devise the strategies to be used to increase the market share of the
products. They must increase their presence online to target new customers. This will also
improve the loyalty of the existing customers because they will be able to engage more with
the company.DiversificationThe internet will be used to ensure that the company engages
fully with its suppliers and intermediaries. This will make them identify potential target
areas and also whether they can develop other products to compete with those that are
already in the market.Development of the productThrough the use of the internet the firm
will know the strategies to use in the development of their products. They will be able to
know how to aID value to existing products, how to improve efficiency in the subscription
procedures and also how to increase the product range so that to bring on board more e-
retailers as possible. They must seek good service providers who are reliable in the market
and who will offer competitive prices.The 4 C’ s ModelThe customers being the target of
many marketing initiatives take the centre stage in this model. The model focuses mainly on
the pull marketing strategy as opposed to the push strategy adopted by the other
models.Customers: Their needs must be fully satisfied by the products in the market.Cost:
The cost of the product to the consumer should be analyzed to enhance
affordability.Convenience: The product should be readily available to the consumer anytime
and anywhere.Communication: There should be more interaction between the sellers of the
product and the customers. This will ensure customer
satisfaction CUSTOMERWhat do they need? How do they need it?
COSTHow affordable is the product? CONVINIENCEWhere are they
getting the product and how much is it costing them to reach the venue?

3. COMMUNICATIONAre they aware the product is available? ROLE OF THE
MARKETING MIXThe role the marketing mix plays in the formation of a marketing strategy
for a retail business will determine the suitability of the strategy and definitely the success
of the business (Albers, 2010).The marketing mix will ensure the product chosen for sale by
the retailer is suitable and fit for the particular market. This is because the success of the
business will be determined by how good or bad the product is. The suitability of the
product in the market will be determined by several factors which will revolve around the
geographical area, the income levels of the consumers since it will affect their purchasing
power and also their consumption and buying habits. The retailer will decide the units or
packages of the product that best suit that market to ensure there are sales volumes and
also customer satisfaction.The marketing mix will also help the retailer in knowing the
pricing modes he is going to adopt for his products. If he prices his commodities very highly
they will not get customers and again if he prices them low he won’ t meet set revenue
targets. The retailer will therefore be required to analyze all the factors that will influence
his product prices such as supplier prices, price of substitutes, competing retailers’ prices
and transportation costs. This will ensure the retailer does not lose customers and he gets
the expected profits from his business. The company will also be able to meet its obligations
like payment of taxes, rents and rates.Also the marketing mix will make the retailer know
how his product will have wider reach to its customers. This can be done through opening
more retail stores in different localities to enhance wide coverage. He will also be able to
evaluate the aIDitional costs that will result from such expansion such as increased rental
bills, more wages because of the aIDitional employees hired and even more utility bills.The
retailer will decide whether he will advertise his business. This may not be feasible because
majority of the commodities he could be dealing with are normally advertised by the
producer. The only advertising he can do is to inform the prospective customers of the
location of his business.There are various factors that may cause the international retail
marketing mix to differ from the domestic retailer’ s marketing mix. These include;a) The
international retailer will be expected to heavily advertise his products in the new market
as opposed to the domestic retailer who expects the advertisements for the products to be
done by the producer. This means the international retailer will incur heavy advertisement
costs which in the initial stages may eat into his profits. This implies that profits may not be
realized in the short run for the international retailer as opposed to the domestic retailer.
The product may therefore take long to penetrate the international market due to these
initial costs. The domestic retailer is already established in the market and his product
enjoys loyalty from his customers and is already in profitability.b) The international
retailer will have no control of the prices that are in the market. The prices will already have
been set by the local operators in that market (Rossi, 2000).The international retailer will
be forced to take the prices as they are in that market to ensure that there are sales
volumes. This is despite the many expenses he has incurred at the set up stage which if
taken to account will mean his product price should be higher, but because the international
retailer wants to enhance competitiveness he will take the market prices so that he can
compete adequately with the rival products.c) The international retailer will be supposed
to carry out very intense promotional campaigns for his products. This is as opposed to the

4. domestic retailer whose promotions are minimal since his goods which are mostly locally
produced are mainly advertised by the producers. The domestic retailers can devise to
block the international retailer by adopting low price strategies (Harald, 2008). This will
mean the international retailer will take a long time to attain a considerable market share in
the foreign market for his products. The international retailer will be forced to seek
favorable distribution channels for his products to ensure they reach the target
consumer.d) The domestic retailers will be on the look out to dominate the places the
international retailer may choose to advertise his products. They will adopt defensive
techniques to guard against their market share which is under threat from the international
retailer. The international retailer will therefore be expected to identify areas where those
in the domestic market have no full control over. Such areas may include the internet and
other social sites frequented by many people.PART (B)In this part we are going to review
the retail marketing mix for Superdrug Company and what they are supposed to do so as to
internationalize their marketing mix when they venture in Australasia.The Superdrug
Company will have to study the marketing mix in the foreign market carefully to enable it
come up with a good strategy to enter that market.ProductThe market mix for Superdrug is
very strong in theUKwhich is their home market (Meyer, n.d). They are major players in the
beauty and cosmetics industry and their products enjoy wide appeal. The products are of
high quality and the company enjoys sizable market share. This is because the products
have fully penetrated the market. However the beauty and cosmetic industry inAustralasiais
saturated with many players. The company must maintain the same quality for the products
to ensure customer satisfaction. Product quality as seen in the 4Ps model is very important
as it will determine the customer satisfaction levels. The satisfaction derived from the
product will guarantee the sales volumes the company will achieve and the market
penetration levels.PriceSuperdrug will be forced to adopt a price reduction strategy for
their products to realize sales volumes. There are many substitutes for their products in
that foreign market and each of the domestic players will be seeking to guard their market
share. Reducing prices will increase the preference of their products to many consumers
and this will enhance market penetration (Edwin, 2007). However this can only be done in
the short run when the products are still in the initial introduction stages. The company
after securing a sizable market share should revert to applicable prices in order to realize
profits.PromotionThe company being a foreign entrant will be expected to heavily promote
its products among the consumers. This will make the majority to be aware of their
presence. They will conduct sales promotions in the key areas they will identify. They
should convince the consumers why they should stop using their current products and
adopt theirs. This means the advertising budget will be huge because the local companies
will also be guarding against their market share.PlaceSuperdrug on evaluating the market
will be required to identify the most convenient places to place their advertisements to
ensure wide accessibility. They should consult with the major advertising consultants in the
new market and seek their advice. Interaction with the consumer will be very crucial (John,
n.d) because this is what will determine the demand for their products. The company
should also adopt the use of the internet to alert customers of their entrance to this new
market. Loyal customers like the tourists will be happy to know their favorite products from

5. the company are also availableCONCLUSIONThe role played by the marketing mix in the
formulation of marketing strategy to be adopted by companies is very important. It is used
to identify key variables that determine the suitability of a particular product being in the
market. This is because many industries today are dominated by players who will not give
in easily to their market share. The local players want to maintain their profit margins and
when any foreign entrant attempts to venture in to their market they will employ defensive
tactics to ensure they preserve their market share. To overcome all these obstacles a
company should fully understand the market in which they are operating because the
information gathered in local markets may also be important in the foreign markets. Failure
to do this will place firms at a disadvantage whenever they seek expansion and it will be
very harming to the business and to the industry as a whole.ReferencesAlbers,M (2010)
Marketing Demand.London. Penguin Books, P. 9Edwin, S (2007) Product
Management.Bristol. Ace Publishers Ltd, P.23Harald,J (2008) Brand Evaluation.Berlin. Dietz
Printers, P.41John, E (n.d) “ Relevance of Competition” ( Online). Available from
http://www.markettrends.org/ (Accessed on 28th April 2012)Luan, Y (2010) Marketing
Mix Responsiveness.Brisbane. Senton Publishing House, P.17Meyer,P (n.d) “ History of
Superdrug company” (Online). Available from http://www.superdrug.com/ (Accessed on
28th April 2012)Peter, E(2007) Marketing Mix methodology.Cambridge.CambridgePress,
P.25Pitsaki, J (2011) Strategic Brand Management.Dublin. Alwin Books Ltd. P.31Rossi, P
(2000) Marketing Research.London. Pearce Publishers Ltd, P.53Yanan,W (2010) Internet
Marketing.Dublin. Green Books Ltd, P.39Place your order now…………..