Journal of Business And Industrial Marketing

GLOBAL MARKETING

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Contents
Introduction...........................................................................................................................................2
Choice of foreign market.......................................................................................................................2
Entry mode............................................................................................................................................3
Recommendation on marketing strategy................................................................................................5
External factor analysis.....................................................................................................................5
Strategies...........................................................................................................................................6
Conclusion.............................................................................................................................................9
References...........................................................................................................................................10

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Introduction
In today’s time most of the companies are planning to expand in other parts of the world. The
major reason for it is not only the fact that it adds a new business unit for the firm but it also
acts as a new source of income. It is seen that the home countries for the firms have become
saturated hence it has become critical for the management to ensure that they are able to deal
with the challenges in an effective manner. It is also seen that there is an increase in the
numbers of players in the home markets which has reduced the scope of the companies to
expand in one nation. It is due to this firms are searching for potential market. However to
achieve success in expansion it is critical that effective strategies are being made on the basis
of the external environment of the potential. It is also critical make the best possible entry
strategy as it the core of success. ERIBES Knitwear is an award winning manufacturing and
Design Company based in the Scotland having its establishment in Melrose. This company is
known for its excellent design in the Knitwear’s. This company was established back in the
year 1986 (ERIBE, 2020). This report is going to examine one of the potential foreign
markets for ERIBES knitwear. It will also provide the best strategy for entry into that foreign
market. In the last section of the report the recommendation on the marketing strategies that
this company should make has been provided on the basis of the external environmental
factors.
Choice of foreign market
There are many countries in which this company can expand as the demand for such products
is very much higher. However the potential in the developing markets are higher than others.
This is why the market that will be selected for the expansion will be India. India is one of the
fastest developing nations with a population more than 1.3 billion (Raichurkar and
Ramachandran, 2015). This is a huge market where 30% of its population comes under the
middle class. With the government’s effort more than 50 million people have come above the
poverty line in the past 5 years. The demands of the high quality products have increase. One
of another major reason for selecting this market is the fact that government have made many
provisions that allows easy expansion of the firm in the country. There are very large
numbers of graduate unemployed in the country which can act as a good skill base for the
firm. Government has made many types of infrastructural development that is able to provide

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a good base for effective supply chain management in the country. At the same time India
also has higher potential as there no such firms with greater control over the market. India is
one of the youngest nations in the world which can give this company a huge target market to
sell their products.
India is the fifth biggest economy of the world with GDP of 2.6 lakh crore USD. This is an
indication that company will not face economic challenges due to lack of investors. The
fashion industry of India is also growing. Fashion industry of India is of 1000 crore rupees
and this only the little part of the need of garments in the country. In the next five years it is
expected that the industry size will get double (Nifadkar and Dongre, 2013). Another
important region for selecting India as a country for expansion is the fact that there is easy
availability of cheap and high quality raw materials. Even the neighbouring countries like
Bangladesh also act as a good raw material suppliers for the company.
India can also be used as a manufacturing location for the country (Tiwari and Babel, 2013).
Since the cost of production is on the lower side hence they can manufacture products in
India under the Make in India scheme which gives the foreign companies some kinds of tax
benefits if they choose to open their manufacturing unit in the country. This will help the
company in terms of the fact that they can manufacture the products in India and they can sell
in other parts of the world. Another major reason for selecting this country is the fact that
Indian government has launched skill development mission that helps the unemployed people
to learn skills such as knitting which has been one of the traditional hobbies of ladies in the
household. This will make it further easier for the companies to make products easily. ERIBE
can also use India as a country from where they can expand in the South-East Asian markets
that is very big. The locations that can be chosen for this is the Tirupur (Tamilnadu) Ludhiana
(Punjab) Ahamedhabad (Gujarat) as these centres have been the place of Knitting over the
years. Knitted garments right now accounts for 32% of the total export of garments from
India (Yoganandan, 2015). India is also good potential market as it has good economic
relations with the UK government. In the time when the trade war between China and United
States has increased, India can be a good option to expand.
Entry mode
For the type of products that ERIBE is planning to launch, the best entry mode for the
company will be strategic partnership. This is an entry mode in which ERIBE will have to

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find a strategic partner in the form of suppliers. This is also because India has not given full
permission for 100% FDI in single brand retail. There is a condition that the foreign company
that aims to expand in India with 100% FDI will have to purchase 30% of the raw materials
from the local MSMEs plus there are many other conditions that have to be followed by the
company in order to gain success (Yoder, Visich and Rustambekov, 2016). In this type of
entry mode the ERIBE will have to find the partner in the form of distributors that will help
them in reaching to every potential place of sales. There are many investors in India that are
ready for investing in the new kinds of fashion products. This is because they understand that
in the age of social media such a large population of young people can act as a good source of
income for the company (Shanmugasundaram, Loganathanand, Panchanatham, 2010).
It is also important to choose this type of entry mode in the country like India because there is
a huge socio-economic and cultural difference between Scotland and India. ERIBE do not
have the experience of working in this type of socio-economic condition. On the other hand
the cultural difference between India and Scotland is huge. This can be a problem for the
company that is aiming to expand in the country. This is where the role of the strategic
partners will come as they will be the local players hence they have better knowledge about
the way in which businesses works. ERIBE will provide its designer products while the role
of the strategic partner will be to provide local human resource for the company (Akwetey,
2015). This will help them in gaining success in the market. At the same time it will also help
the firm in reducing the chances of failure due to inappropriate understanding of both
marketing and distribution channels. This will help the firm in restraining the initial shocks
that they might face in the countries like India where
There are certain essential factors that this company should take in consideration before
selecting this entry mode. First is the fact that company should select the strategic partners
very wisely as any wrong choice may lead company to lose huge amount of invest money.
Partner must also be selected checking their financial base so that if anything goes wrong in
the business they will be able to provide necessary funds (Chan, Finnegan and Sternquist,
2011). Other important thing that they will have to see is the fact that they will have to keep
the control over their intellectual property so that the strategic firm is unable to know it.

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Recommendation on marketing strategy
External factor analysis
In order to recommend any strategy first it is critical to understand the external factors that
will have impact on the business of ERIBE in India. Some of these factors are:
 Political and Legal: Government is supporting any kinds of FDIs in the nation. For
this they have made many types of structural changes in the country’s business
infrastructure. For instance remove of multi-tax systems has been another major step
towards economic reforms done by the government. Government is also providing
skill training in the areas like Knitting to the unemployed people which will help the
company in finding labourers at lower cost. However government has made strict
laws over any kinds of dumping in the country (Kumar, Gaur and Pattnaik, 2012).
Labour laws have also been strengthened to ensure that their rights are also protected
while the companies expends in the country. However the bureaucratic processes in
the country seem to be slow and sometimes company will also have to deal with the
corruption.
 Economic: With the 5th biggest economy in the world India acts as a good financial
market. However it is also the fact that there is a large population within the country
that lives under the poverty line. This has made it critical for the management to
ensure that they have a large population of people that lives under the poverty line
hence making it an economy whose most of the amount is spent on welfare activities
(Gaur, Kumar and Singh, 2014). Amidst the international economic crisis the
challenges for the Indian economy has also increased especially in terms of attracting
new talents.
 Social: Society of India has changed drastically in the past three decades. From being
a country that preferred the Indian culture now it has become the country which is
ahead is ahead of many of other nations. The major reason for it is the fact that there
are large numbers of youngsters in the nations and they are inspired through the
online media (Shanmugasundaram, Loganathan and Panchanatham, 2010). This is
why India has become one of the favourite destinations of the garments industry.
There are large numbers of graduated unemployed in the nation. These people will act
as a source of skilled labour that too at the lower cost.
 Technology: Technology has changed the garments industry. India has also developed
its technology infrastructure with more than 800 million smartphone users (Bhaumik,

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Driffield and Pal, 2010). This acts a good channel through which ERIBE can do
marketing. However this increase in the technology use has increase competition in
the market as even the small MSME is able to sale their products in any part of India
which was previously confined to only local regions.
 Environment: The environment related laws have also strengthened in the nation. This
is why ERIBE will have to ensure that in all their processes of different units they are
able to manage the environmental norms. For instance they will have to reduce the
use of plastics as it is now banned in the country. The disposal of waste will also be a
challenge for the company (Paul and Gupta 2014).
Strategies
On the basis of this analysis the marketing strategies that need to be selected by the company
are:
 Higher use of technology: India has a very large population of people that are
connected with the technology especially the internet technology. This will help the
firm in doing marketing at lower cost. Technology will also ensure that they can do
research of the demands in the market and according they can present their designs in
front of the market. This will help them in making their process of expansion
smoother (Goldberg, Khandelwal and Pavcnik, 2011).
 Social media strategy: There is a very big population of people that are connected
with the social media in this country. This can act as an effective platform through
which the company can develop its brand image (Kaur and Singh, 2010). It is also a
platform that can be used by the company to communicate with the people. In the
beginning stage this will be effective for the company.
 Focus strategy: This Company should use this porter generic strategy in order to gain
success in the market. Following this strategy the company should think of upper
middle class and rich people and prices should also be made in this direction only
(Wilson, 2015). The focus should be on diversifying its products on the basis of the
needs of this target segment.
On the basis of this the STP strategy for the company is as follows:
In order to make the marketing successful, it is critical that proper segmentation and targeting
is done.

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Types of Segmentation Segmentation Criteria ERIBE target segment
Geographic Region India
Density Urban and semi-urban
Demographic Age 12-45
Gender Both Male and female
Life-cycle Stage Married couples and
bachelors
Income Middle salaried and higher
salaried
Occupation All type of employed people,
business owners and
entrepreneurs.
Behavioural Benefits sought Quality seekers
Degree of loyalty Switchers and Hard core
loyal
User Status Loves new and innovative
design
Personality Careless & Easygoing
Psychographic Lifestyle Luxury and normal
Social Class Middle class, upper middle
class and rich people.
The segmentation is done by the company on the basis of different types of factors. This
helps them in proper segmentation of the market in an effective manner. The market segment
that they have target for them are the people that are fashion lovers and most of the time
seeks to have new designer experience. The age group of such people are between the age
group of 10 to 45 years. Their major target segment will be the rich people and the people
that belong to rich class in the society. For this they have made the positioning strategy which
positions them as the company that offers the high quality crafted products at reasonable
prices.
For this company the recommended marketing mix is as follows:

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 Product strategy: In the core of their product strategy lays the diversification. This
should also continue in India. They must be able to provide various kinds of design
options to the people as it is necessary for gaining success in the country. This
company right now is offering all the kinds of knits that also include gloves, sweaters.
The style quotients in their products are on the higher side and they looked trendy
(Padhi and Mishra, 2013). In order to be successful in the country like India, this
company needs to ensure that their products that an Indian touch too. The cultural
designs that matches the Indian traditional wears will not only attract people but will
also ensure that even those people who have not westernised so much are also
adopting these products (Singh, et al 2012). This will reduce the social and cultural
challenges that faced by the company in the market. It is also the fact that Unlike
Scotland, India is one of those nations where winters remains for very few period of
time hence people also purchases such products on the seasonal basis hence the
company will have to make some of those designs that can be wore even in the
summers.
 Price: The prices of the products are on the higher side however it is ensured that it is
according to the purchasing power of the people. India is a price sensitive market
where the prices have more value than quality. This is why in order to attract
customers ERIBE needs to offer the products at some of the discounts. They can take
use of skimming prices where the new collections may be tagged on the higher side
while at the end of the season of winters the products can be sold at some kinds of
discounted rates (Porac, Thomas and Baden‐Fuller, 2011). For some of their products
they can choose the luxury pricing strategy based on the quality. This will help the
firm in gaining a different kind of brand image within the firm.
 Distribution strategy: The distribution strategy that they need to follow is network
strategy. However this needs to be planned with the help of their strategic partners. In
the network strategy they can make network of many retailers and distributors that
can help them in reaching to different cities. They can offer the products through their
dedicated showrooms or they can also offer through the big fashion retailers in the
malls. They also need to ensure that they are offering the products through the online
mediums (ten Have, 2019). This can be done through the help of their own website,
mobile apps or many types of e-commerce websites. At the beginning they can only
open their retail stores in the big metropolitan cities but through online mediums, it
should be available in every corner of the country.

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 Promotional strategy: In order to ensure that ERIBE gains success in the market they
need to ensure that the promotional strategies are effectively designed. It is
recommended that company takes use of both traditional and modern day mediums to
reach to the people however little amount should be used on the traditional marketing
medium. Their advertisement campaign should illustrate their quality and class (Ray,
2012). It should also have some touch of the Indian culture. This will help them in
connecting to the people. For the promotional purpose they should offer one plus one
free time of scheme in the starting phase of the expansion. India has many languages
hence they need to ensure that their advertisements are designed in as many languages
as possible (Sweeney, 2010).
Conclusion
From the above based report it can be concluded that ERIBE is designing various kinds of
designer knitwear. The country that can be chosen for their expansion should be India as it
has a great population of youngsters that can act as a target market for the company. This
company needs to select the strategic partnership as their mode of entry. This is because India
is having a very different kind of social, economic and culture aspects when compared with
Scotland. As a part of their targeting strategy they need to focus on the people that are
between the age group of 10-45 years. As a part pf their products strategy they need to focus
on quality and variety. They need to set the prices at reasonable rates and can use discounts to
attract people. They can offer the products through both online and offline mediums. They
need to mainly promote their products with the help of online technologies.

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