International_Marketing

International Marketing Seminar 1 Introduction: The purpose of this report is to summarise the research and analysis which launched focus on whether the most important aspect of international market expansion is host country market share, to identify and discuss its advantages and disadvantages. “Cateora (1993) defines international marketing as the performance of business activities that direct the flow of a company’s goods and services to consumers or users in more than one nation.” (Bradley 1999, p.43). Thus, author will use some examples to, identify and analysis whether the market share is most important aspect of international marketing expansion into other country. Marks and Spencer The UK well know retailer, Marks and Spencer, tried to sell the men’s suits into China market based on UK size for tailoring, and M&S did not realise that only fitted few Chinese men because of their narrow hips and shoulders. (Brandley 1999) In this case, obviously, M&S did not do take sociocultural factors into their consideration of expanding its market abroad. Brandley (1999, p.138) said “ that sociocultural influences have been identified as critical determinants of international management behaviour.” Costa Costa coffee belongs to the Whitebread company which is one of the UK’s leading hospitality and leisure groups. Bruno & Sergio Costa set up their famous coffee roastery in Lambeth, London in 1971, supplying local caterers and Italian coffee shops with an exciting coffee, slow-roasted the Italian way. To this day we still use the same method of slow-roasting our coffee beans, serving the brothers’ authentic blend of 6 Arabica beans to 1 Robusta in 500 coffee shops all over the world. Unlike any other coffee company in the UK, we have our own roaster to ensure our unique blend is perfect every time. (http://www.costa.co.uk/coffee/costa_story.aspx) To assume a situation that Costa Coffee is planning to entry to the US market based on the market share in coffee industry in the U.S, what kind of problems are existing to challenge this brand. . As we know, the leading of U.S coffee retailer is Starbucks which is originally based in U.S, thus Starbucks has very strong market shares, strong brand loyalty in the U.S. Therefore, if the Costa wants to bring it brand into U.S market, they must understand American’s taste and behaviour. • Product: Product attributes will vary among nations according to consumer preferences. (Harold,. Etc1998 p.268) The coffee tasting is necessarily to provide within the US market, which can help Costa to understand the American market on what kind of coffee flavors is local people expect. First, the market share can be defined as measures one firm’s or one brand’s sales as a percentage of the total sales in the market.