Global Marketing: Development, BRIC Market, Boux Avenue, Franchise Method

This document discusses the development of global marketing concept, evaluation of BRIC market (specifically Brazil), Boux Avenue's entry mode decision, and advantages/disadvantages of using franchise method. It provides insights into the importance of global marketing for modern businesses and how it can help organizations expand their reach and meet the needs of international consumers. The document also highlights the case of Boux Avenue, a popular fashion retailer, and its strategies for entering foreign markets.

Global marketing
AS1 Portfolio

EXECUTIVE SUMMARY
The report summarises that global marketing is provital for modern businesses. With the
concept, organisations are able to sell and ship their merchandise to consumers outside their
nations boundaries and innovate their thinkings to meet needs of targetted population. Boux
Avenue is well popular fashion retailer that promotes as well as sells wide variety of sleepwear,
swimwear and many related products. The report is prepared in four Tasks. Task 1 discusses
about development of global marketing concept, example from real business that supports
portfolio entry. Task 2 includes information of BRIC country and evaluation of political risks,
and other related factors. Task 3 covers information about Boux Avenue and ways factors
affects entry mode decision in foreign market. Task 4 highlights about franchise method and
advantages and disadvantage to use it as entry mode.

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
1. Explanation of “Development of global marketing concept”..................................................2
2. Discussion on development of global marketing concept ......................................................2
3. Example from real business world which supports the portfolio entry ..................................3
TASK 2............................................................................................................................................4
1. Selection of emerging BRIC market.......................................................................................4
a. Background of chosen BRIC country......................................................................................4
b. Evaluation of political risks of the country..............................................................................4
c. Discussion on trade, tariff along with non trade barriers among UK and selected BRIC
country.........................................................................................................................................4
d. Reviewing economic environment of the country ..................................................................5
e. Summarising advantages and disadvantages for UK Company looking towards moving in
the market.....................................................................................................................................5
TASK 3............................................................................................................................................6
1. Selection of entity from real business world and information about it....................................6
2. Explaining the ways factors affecting foreign entry mode decision model can help in
selecting right entry mode for entering in new market................................................................6
TASK 4............................................................................................................................................7
1. Choosing Fashion retailer that uses franchise as method of entry...........................................7
2. List that makes fashion retailer to use franchise as entry method ..........................................7
3. Evaluating advantages and disadvantages of using franchise base an entry method..............7
4. Benefits for choosing franchise for fashion retailer.................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Global marketing is defined to marketing a brand on worldwide scale for reconciling
commercial advantages related to international operational differences, opportunities together
with similarities with the hope of meeting universal objectives (De Mooij, 2019). It is a field of
study within general business management which aims for promoting commodities, solutions etc
to customers in local, regional, national and international areas. The present portfolio is all about
Boux Avenue which is fashion retailer specialised in promoting and selling sleepwear,
activewear, swimwear etc. The portfolio entries covers development of foreign marketing
concept, Background, political risks and economic environment of a BRIC country. It also
discusses about advantages, disadvantages and benefits of using franchise for fashion retailer.
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TASK 1
1. Explanation of “Development of global marketing concept”.
Global marketing concept refers to overall marketing framework that is adopted by an
international entrepreneur for the purpose of designing, launching, distributing, promoting,
selling and maintaining organisational products within global arena. Global marketing concept
has developed in last decades and involves different marketing concepts in which each varies in
functions which they deals with. The marketing concepts are production concept, product
concept, selling concept, marketing concept and societal marketing concept.
Developing global marketing concept requires a business to globalise its networks along with
influences international consumers for buying products when organisation promotes or sells
there offerings at extensive level (Steenkamp, 2017). The concept emphasis towards delivering
values which preserves consumers along with well being of society.
With evolution and implementation of the mentioned marketing concept, the global
marketing concept was developed to huge extent.
2. Discussion on development of global marketing concept
As per Charter and Polonsky (2017), development of global marketing concept is one of
essential investment for an international organisation. Global marketing concept is said to
strategy which businesses executes for satisfying customer choices, maximising profits, meeting
sales targets and beating competition. with proper support and implementation of firms, global
marketing concept has developed and helped entities to build healthy and profitable relations
with society and targeted customers.
According to the view points of Gielen and Et. Al. (2016), Global marketing concept has
developed because of increasing needs of customers. When the concept was evolved, production
oriented companies dominated the market and developed the concept through paying more
attention on the idea that supply creates its own demand. Moreover, emphasis of business
concerns towards delivering values in better ways than the rivals along with creating wellbeing
of society is also the reason that have developed the international marketing concept.
The thoughts of Bilos and Galic (2016), reflects that global marketing concept have huge
impact on decision making of entity in complex environment. It improves product effectiveness
that helps in growing business fastly as they learn new things from each element of marketing
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concept. With implementation of marketing concepts, global marketing decisions are well
articulated as well as get international businesses on board. It allows adapting changing contexts
of complex environment and creates a trend that assist in developing international marketing
concepts with positive influences on dynamic business environment.
3. Example from real business world which supports the portfolio entry
Boux Avenue is one of example from real business world which supports development of
global marketing concept through adopting the 5 marketing concepts in its practices or
operations. It is seen that the company has adopted all the marketing concepts as per the
pertaining situations in retail industry (Rosas and Ridings, 2017). For example, product concept
is used by it for making available its commodities at affordable prices. Societal marketing
concept is used in order to deliver customer values in the manner which maintains well being of
audiences and society as whole. When all the concepts are effectively implemented then it
reflects towards development of overall global concept.
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TASK 2
1. Selection of emerging BRIC market
a. Background of chosen BRIC country
The selected emerging BRIC country is Brazil which have been significantly driving
growth across Latin America. In past years, the country is making huge efforts for recovering
from worst recession till date. Results of recovery are seen as 1% increase in GDP growth as
well as reducing in inflation rates by 2.9%.
b. Evaluation of political risks of the country
The major political risk in Brazil is on instable political system. It is evaluated that Brazil
has volatile political history which even remains persistent in today’s era also. Moreover, high
investment grade yield, diverse economy, cheap assets, despite scandal etc creates huge political
risk in the nation as political turbulence along with deteriorating relationships among
government parties are increasing concerns about ability of government to meet fiscal targets
(Rapoza. 2020).
c. Discussion on trade, tariff along with non trade barriers among UK and selected BRIC country
The trade, tariffs along with non trade barriers between UK and Brazil are as follows:
Trade barriers: UK has launched programmes for trading with Brazil which is a new
trade facilitation programme which supports businesses in Brazil for export so to boost trade
with nations like UK (Trade between UK and Brazil. 2020). There are no trade barriers among
the both countries which can help Brazil to strengthen trading ties and improve its conditions.
Tariff barriers: UK and Brazil government are making huge efforts for boosting
relationships among parties and opens consultations on tariff schedules which do not require
FTA. There are certain tariff barriers between Brazil and UK that are imposed for protecting
domestic employment, protecting consumers and infant industries for both nations (Souza,
2016). Common tariff barriers are import quotas, specific tariffs, local content requirement and
voluntary export requirements.
Non trade barriers: Certain non trade barriers between the nations includes foreign
exchange restrictions, quantity restrictions, preferential agreements, licensing procedures and
consular formalities that restrict trade at some extent between UK and Brazil.
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d. Reviewing economic environment of the country
The economic environment of Brazil is based on mixed economy which relies on import
substitution for attaining economic growth. In 2019, the inflation rate in Brazil was equalivant to
3.7%, and in 2020, it is 3.3%. The BRIC country is still mired in debt. Unemployment rate in the
country are also high that is around 11.9%. The country also faces various economic issues and
has highest inequality levels. More than 10% population lives in poverty while 5% only are the
in rich category.
e. Summarising advantages and disadvantages for UK Company looking towards moving in the
market
Advantages:
Boux Avenue is one of retail organisation that is planning to move in market of Brazil for
enhancing its customer base and meeting demands for its products. It will benefit the company in
improving its operations and product life cycle in retail market of Brazil. Moreover, the UK
Company can also attract large audiences towards its unique and innovate products that will help
in achieving sustainable performances (Berger and Roman, 2015).
Disadvantages:
The main disadvantage for Boux Avenue is that it will require huge capital for entering,
establishing, promoting etc the business in market of Brazil. Along with this, the company can
also face ignorance from population of the new market when they find its prices high.
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TASK 3
1. Selection of entity from real business world and information about it
Boux Avenue is the retail business that has headquarters located in London, UK since
2011. It has unusual selling layout in United Kingdom. It is specialising in promoting and selling
sleepwear, swimwear etc that makes women confident in whatever shape and style they have. Its
unique shopping destinations, desktop sites, convenient delivery options etc allows consumers to
fit shopping in their busy schedules. In minimum duration, the business has achieved huge
success in the retail market and now it is planning for expansion in other regions for maximising
profits and having large customer base.
2. Explaining the ways factors affecting foreign entry mode decision model can help in selecting
right entry mode for entering in new market
Entry mode decision is one of complex decision for a business to select in the dynamic and
competitive scenario. It is beginning phase that organisational owners take for future operations
in international market (Gillespie and Riddle, 2015). It requires scanning of external market
along with monitoring internal business conditions for selecting effective entry mode in order to
make entrance in totally new market. In order to handle complexities, managers of business
require an analytical framework which facilitates methodical differences among entry mode. The
one of element of factors affecting international entry mode decision model is external factor.
Ecological, market, production, customer attitudes, available technology etc are some of external
factors which influence entry mode decision of business to huge extent. In context to Boux
Avenue, managers must consider demand uncertainty, trade barriers, size and growth or retail
market and social cultural distance among home to that of host country in which it is planning to
enter.
Available technology and constant legislations helps managers of Boux Avenue to take
effective decision for entering in untapped region. For example, foreign organisations in Brazil
work with local distributors for the purpose of marketing products. Along with this, competition
intensity and small number of relevant export middlemen availability are also considered by the
team of company at the time they decides to choose right entry mode (Dühring, 2017). As when
these are not properly scanned and monitored then it can increase chances of affecting decision
making of company for entry mode in the global market context.
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TASK 4
1. Choosing Fashion retailer that uses franchise as method of entry
Boux Avenue is one of fashion retailer that uses franchise as entry method to enter in new
market through product franchise method in which it provide franchise to fashion retailer in other
country. In this method, organisation takes approval of parent company to use the name for
selling products in market (Hoy, Stanworth and Purdy, 2017). In case with Boux Avenue, it
allows small business to use its name and trademarks for distributing products in market.
2. List that makes fashion retailer to use franchise as entry method
Boux Avenue is a retail business that aims to have its presence in multiple nations. The list
that motivate it to ude the netry mode are as follows:
 It emphasis towards unique customer experience along with adopts entry mode of
franchise to hit hard in intense rivalry market.
 The organisation have ambitious plan for global expansion. Along with allowing small
businesses to use its name and trademark, it also signs contract with large companies for
enhancing presence in multiple nations (Khan, 2016).
3. Evaluating advantages and disadvantages of using franchise base an entry method
Advantage:
 Franchising method allow Boux Avenue to have international existence addition to
presence.
 Franchise method can benefit Boux Avenue from growth without worrying for running
costs. The company can also receive royalty payments from allowing small business to use its
name for distributing products that adds profits in its balance sheet (Skiti, 2020).
Disadvantage:
 Franchise method creates difficulties fro Boux Avenue to control activities or ensuring
that performed operations are up to standard.
 One of biggest disadvantage of the entry method is that it damages reputation of business
in existing market. in case, another franchise makes some mistake then it affects the
parent company in huge manner.
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4. Benefits for choosing franchise for fashion retailer
The benefits for Boux Avenue from choosing franchise method are as follows:
 Franchise method offers independence of ownership that is supported by benefit of
making big business network.
 Franchise method benefits Boux Avenue to improve speed of growth through having
relations or contractual agreements with companies that develops truly innovation. With
this, the method assists in growing business in speedily manner and attains objectives
(Jell-Ojobor, 2019).
 Franchise method benefits the fashion retailer to leverage various resources including
human resources, financial, technological etc as per requirements from other franchise.
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CONCLUSION
The mentioned report concludes that international marketing is important for business to
make string presence in foreign market place. Development of international marketing concept is
done through involvement of businesses and implementations of the defined concepts
effectively. Political situations and economic environment of BRIC market impacts of entrance
of other nation company for business purposes. Benefits for an organisation through suing
franchise method includes building big business network, improving growth speed and
leveraging resources.
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REFERENCES
Books and Journals
Berger, A. N. and Roman, R. A., 2015. Did TARP banks get competitive advantages?. Journal of
Financial and Quantitative Analysis. 50(6). pp.1199-1236.
Bilos, A. and Galic, T., 2016. The role of digital marketing in university sport: An overview
study of higher education institution in Croatia. Ekonomski Vjesnik. 29 (2). p.453.
Charter, M. and Polonsky, M.J. eds., 2017. Greener marketing: a global perspective on greening
marketing practice. Routledge.
De Mooij, M., 2019. Consumer behavior and culture: Consequences for global marketing and
advertising. SAGE Publications Limited.
Dühring, L., 2017. Reassessing the Relationship Between Marketing and Public Relations: New
Perspectives from the Philosophy of Science and History of Thought. Springer.
Gielen, A. and Et. Al., 2016. 290 Development and evaluation of a social marketing approach to
reduce pedestrian injury risk. Injury prevention. 22. p.A106.
Gillespie, K. and Riddle, L., 2015. Global marketing. Routledge.
Hoy, F., Stanworth, J. and Purdy, D., 2017. An entrepreneurial slant to franchise research. The
Blackwell handbook of entrepreneurship, pp.408-432.
Jell-Ojobor, M., 2019. Strategic CSR and the Competitive Advantage of Franchise Firms. In
Design and Management of Interfirm Networks (pp. 91-111). Springer, Cham.
Khan, M. A., 2016. Entry modes: franchise. In The Routledge Handbook of Hotel Chain
Management (pp. 168-182). Routledge.
Rosas, S. R. and Ridings, J. W., 2017. The use of concept mapping in measurement development
and evaluation: application and future directions. Evaluation and program planning. 60.
pp.265-276.
Skiti, T., 2020. Strategic technology adoption and entry deterrence in broadband. Industrial and
Corporate Change. 29 (3). pp.713-729.
Souza, C., 2016. Constitutional engineering in Brazil: the politics of federalism and
decentralization. Springer.
Steenkamp, J. B., 2017. Global brand strategy: World-wise marketing in the age of branding.
Springer.
Online:
Rapoza. L., 2020. Putting Brazil’s Political Risks in perspective. [Online]. Available through: <
https://www.forbes.com/sites/kenrapoza/2015/03/13/putting-brazils-political-risk-in-
perspective/#48c6eac195a6>
Trade between UK and Brazil. 2020. [Online]. Available through: <
https://www.gov.uk/government/news/uk-launches-programme-to-promote-trade-with-
brazil>
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