Development of Global Marketing Concepts for Lazy Jacks in the Brazilian Market

This report identifies the changing market trends in the global market and focuses on the emerging market of Brazil. It discusses the development of global marketing concepts for Lazy Jacks, a UK-based clothing retailer, in the Brazilian market. The report also explores the different modes of entry available to businesses planning to expand, with a special consideration given to the franchisee mode. It analyzes the advantages and disadvantages of using franchise as an entry method and highlights the benefits of using this method for Lazy Jacks. The report concludes with a discussion on the political risks, trade barriers, and economic environment of Brazil that may affect Lazy Jacks' operations in the country.

GLOBAL MARKETING

EXECUTIVE SUMMARY
The environment and trends in the global market are changing rapidly where the organizations
are developing marketing strategies at a global level. This report will identify the changing
market trends in a global market and the emerging market of Brazil will be taken into special
consideration. The report will identify the different modes of entry that are available to
businesses planning to expand and the franchisee mode will be taken into special consideration.

Table of Contents
TASK 1............................................................................................................................................4
Development of global marketing concept..................................................................................4
Detailed Discussion based on Development of a global marketing concept...............................4
Development of global marketing concepts in reference to Lazy Jacks......................................4
TASK 2............................................................................................................................................5
Background of Brazil ..................................................................................................................5
Political Risks in Brazil...............................................................................................................5
Trade, Tariff and Non-Trade barriers present between UK and Brazil.......................................5
Economic Environment of Brazil................................................................................................6
Advantages and Disadvantages faced by Lazy Jacks in Brazilian Market..................................6
TASK 3............................................................................................................................................6
Lazy Jacks and its Operations......................................................................................................6
Factors affecting the foreign market entry mode decision...........................................................7
TASK 4............................................................................................................................................7
Franchise as a method of entry....................................................................................................7
Market Chosen by the Retailer....................................................................................................8
Advantages and Disadvantages of using franchise as an entry method.......................................8
Benefits of using Franchise method by the fashion retailer.........................................................8
REFERENCES................................................................................................................................9

TASK 1
Development of global marketing concept
Global marketing in general is a field of marketing which deals with the selling of a
particular good or commodity in the international market (Schlegelmilch, 2016). Facing a
saturated market in their domestic countries, many brands tend to invest their time and resources
in the global market. Fuelled by the prospects a global market can offer, there is a worldwide
increase of companies going global with their operations, setting up manufacturing units and
offices in foreign countries. Hence, an exploding need of development of global marketing
concepts is observed in modern times. Businesses look for new concepts related to global
marketing that might help in establishing long term presence in the domestic market of a foreign
country. Since, the marketing mix suitable for one nation may not be applicable to another, there
is a need of continual development of marketing concepts for businesses that want to keep a
global recognition in the market.
Detailed Discussion based on Development of a global marketing concept
In the view of Keegan, (2017) it is the work of powerful trends observed in the market
that has led to the development of a global point of view. In order to keep up with the increasing
change in the market environment, industries face challenges to sustain their presence in the
market. This force these companies to invest in start-ups suitable to the changing market trend.
In the opinion of Mooij, (2018) the development in the marketing concepts in the global market,
should be based upon the cultural preferences of the customers. A company can gain global
recognition only if the vision behind the goods sold by the company resonate with the vision of
the customers it targets to serve. Furthermore, in the view of Alon and et.al., (2016) a brand can
successfully gain popularity in the global market with the help of standardizing its offerings.
Hence, it is evident that a brand recognition can be easily achieved in the global market with
suitable development of global marketing concepts.
Development of global marketing concepts in reference to Lazy Jacks
Lazy Jacks is a UK based chain of clothing which has made a leading presence in the
Brazilian markets in the recent years. This retailer is primarily known as a popular clothing
company providing a vast range of bright and colourful garment options to its customers. A
proper standardization of their product in the Brazilian market helped the brand to grow in its

initial stage. Although the brand charge approx 50% more for the same goods as the domestic
retailers, still the retailer provides a tough competition in the Brazilian fashion market.
TASK 2
Background of Brazil
Brazil is the fifth largest country in the world and the largest in both South America and
Latin America. It is the sixth most populous country in the world known for its multiple cultures
and ethnic diversity. It is also the ninth largest economy in the world, having the eighth largest
purchasing power (Garmany and Pereira, 2018. ). The Brazilian textile and fashion industry is
considered to be amongst the top five fashion industries of the world and is considered to be one
of the biggest industrial sector of the country. Hence, it is possible for foreign retailers to capture
a sizeable domestic market in Brazil.
Political Risks in Brazil
The forth-largest democracy in the world faces a risk of change in its international
policies in forceful manner, as inferred from a number of inflammatory statements previously
delivered by the party in power. The new government in power aims to increase the market share
of the pre-existing local companies posing a risk to the new entrants to the market. Corruption
being a major issue in the country, the retailer may face some corrupt practices being still present
in the market. A change in the international policies as suggested by the ruling government may
introduce new regulations for the importers, making it even difficult for the foreign company to
grow.
Trade, Tariff and Non-Trade barriers present between UK and Brazil
Brazil exercise complex regulation on imports, with the presence of a number of
government authorities. The UK does not have a free trade agreement with Brazil, and the recent
political instability in Brazil has also led to a possible stir in the previously practised business
culture and ethics between the two nations. Due to a very complex tax systems used for different
goods in Brazil including taxes such as ICMS Tax, IPI Tax, ISS Tax and IPO Tax. There has
been major tariff barriers observed by the importers.
Economic Environment of Brazil
A steady growth in the average income of public is observed with decrease in the gap
between the rich and the poor. The overall economy of Brazil recorder a growth of 1.4% in 2018
even after facing a period of recession in 2015-2016 (GDP Growth (annual%), 2020) Over the

recent years Brazil has emerged as a prime exporter of goods in the world such as iron ore, sugar,
crude petroleum, cars and soybean. Brazil was also the largest coffee producer in the world in
2017.
Advantages and Disadvantages faced by Lazy Jacks in Brazilian Market
The major advantages Lazy Jacks has in the Brazilian market include:
I. A stable increase in the trend of sustainable fashion with more and more entrepreneurs
and companies investing in new clothing ventures providing a required economical
benefit to the retailer.
II. Major acceptance of cultural diversity by the people of Brazil may help Lazy Jacks to
make a place of itself in the market.
The major disadvantages Lazy Jacks has in the Brazilian market include:
I. A major backlash can be faced by the retailer from the already established beachwear
market in the country in the form of tough competition.
II. Possible corruption in the market.
TASK 3
Lazy Jacks and its Operations
Lazy Jacks is a UK based fashion retailer company, with its major operations in the
domestic UK market. This retailer brand was founded by Gayle and John Robinson in early
2002. They started the initial operations from their basement flat in Devon with just a singular
style of drill t-shirt. From pulling up order and building up loyal clientele, the company steadily
increased its operations and introduced new and attractive styles in its clothing section. As the
company grew, it introduced more clothing options for individuals ranging from the age of 1 to
100 years. With more than three stores opened in the domestic market of UK, the company has
made its presence known to the local public. The name of the company was taken from the ropes
used on yacht and boats from sailing, it was preferred by the company to deal in yatchwear. This
retailer deals majorly in beach or yacht themed clothing apparels for men, women and children.
All the clothing garments are made up with breathable fabric to assist people wearing them in
different situations. Bright and elegant colours are used up by the company to provide its
apparels a distinct appeal. Lazy Jacks have been in business for now fifteen years now, building
up their own empire of finished clothing and fashion retail. The retailer have received major

success in selling its merchandise to a total of 400 domestic retail outlets over the years, and
making a name of its own in the market.
Factors affecting the foreign market entry mode decision
There are various factors affecting the foreign market entry mode decision for Lazy
Jacks. Some external factors (Garmany, and Pereira, 2018). Such as market size, level of
competition and government regulations may pose a challenge in front of the retailer. With a
substantial increasing in the market size based in better economic conditions of Brazil, the
retailer might face a decreasing trend of popularity with the emergence of new players in the
market. Being home to one of the most popular beaches in the world, the retailer will face
serious competition in the already saturated beachwear market. Furthermore, due to the recent
political shift in the country the retailer might experience eased penetration in the domestic
market of the country. Also, there are some internal factors as well that play a pivotal role in
affecting the retailer in the foreign market such as company objectives and company resources.
Although, the retailer might be optimistic in its resolve of entering the global market, a high
frequency of customer demand and the time required to fulfil the same may pose a big challenge
to the retailer. Venturing into global market without having proper resources related to finance
may result in a possible failure to the company. A possible model that can be followed by the
company to regulate its operations globally is perhaps partnering. Lazy Jacks should find a local
partner possibly having an experience in the local clothing market. Such partnership might help
the retailer to gain a competitive advantage in a saturated market.
TASK 4
Franchise as a method of entry
Lazy jacks is a retailer that use product distribution franchise as a method of entry in the
European market. In this particular method, Lazy jacks provides its clothing apparels to various
medium and large fashion outlet stores. The primary retailer do face a shortage of resources to
expand its business across the foreign markets. Therefore, with the help of franchise method, the
primary retailer gets to expand its business in the European market with limited utilization of
resources. Furthermore, this method helps the retailer gain a necessary feedback from a foreign
market, enabling the retailer to work in the required shortcomings before going public.

Market Chosen by the Retailer
Lazy Jacks being primarily a yacht-wear apparel maker, have decided to choose the
market segment of casual beachwear and picnic wear. It offers a wide range of clothing line for
men, women and children altogether. Its products are suitably crafted to meet the demands of the
customer belonging to any age group. Hence, the retailer provides the range of its products in
various secondary retail stores across the UK and some parts of Europe.
Advantages and Disadvantages of using franchise as an entry method
Franchise method can be used to gain sizeable profits in a new market. As the good or
service being one of its kind in that particular market, there lay a strong advantage to business
growth (Peterson and Dant, 1990). A prime advantage in the form of possible favourable
government regulations can come up in franchise method. Leading to decreased expenses and
increased overall profits to the business (Méndez, Galindo. and Sastre, 2014). The main
disadvantage of franchise method comes in the form of possible cultural differences, wherein the
business can be adversely affected due to cultural disappointment of the goods (Holmes, D.E.,
2003). Also, the financial risks present in the form of exchange rates between two nations can
also act as a major disadvantage (Mockler and Easop, 1968).
Benefits of using Franchise method by the fashion retailer.
The various benefits if using franchise method by the retailer are as follows:
 Favourable government policies in the global market.
 Better acceptability of the goods due to increasing global cultural acceptability.
 A chance to gain necessary feedbacks from the global market.
CONCLUSION
The analysis done in the report above concludes that it is the work of growing diversity in
the global market that encourage companies to invest in development of global marketing
concepts. It was concluded that with the development of marketing concepts suitable to the needs
of the public, Lazy Jacks keeps on increasing its market share each year. Furthermore, it was also
identified that Brazil has largely focused in inviting foreign investments in the country over the
years, in order to boost up its economy even more. The franchisee method of expansion was
evaluated and it was identified that for Lazy Jacks, there are certain benefits and disadvantages
for expansion through this method.

REFERENCES
Books and Journals
Keegan, W.J., 2017. Global marketing management. Pearson India.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
Alon, I. and et.al. 2016. Global marketing: Contemporary theory, practice, and cases.
Routledge.
Schlegelmilch, B.B., 2016. Global marketing strategy. Cham: Springer Nature.
Garmany, J. and Pereira, A.W., 2018. Understanding Contemporary Brazil. Routledge.
Peterson, A. and Dant, R.P., 1990. Perceived advantages of the franchise option from the
franchisee perspective: Empirical insights from a service franchise. Journal of Small
Business Management, 28(3), p.46.
Méndez, M.T., Galindo, M.A. and Sastre, M.A., 2014. Franchise, innovation and
entrepreneurship. The Service industries journal, 34(9-10), pp.843-855.
Holmes, D.E., 2003. The advantages and disadvantages of franchising. Callifornia, United States
of America.
Mockler, R.J. and Easop, H.E., 1968. The art of managing a franchise. Business Horizons, 11(4),
pp.27-33.
Online:
GDP Growth (annual%). 2020. Available Through:
<https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=BR>