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