Topshop's Indian Market Entry: A Marketing Mix Strategy

The report provides an analysis of international marketing strategies for Topshop, a fashion brand looking to enter the Indian market. The report highlights the importance of the four Ps (product, price, place, and promotion) in establishing the company's presence in the target market. It also discusses the need for effective budgeting using zero-based budgeting method. The conclusion emphasizes that with proper analysis and planning, Topshop can successfully enter the Indian market and expand its business.

Global Marketing Management

Table of Contents
INTRODUCTION ..........................................................................................................................1
Various competencies of brand and the ways through which they are utilized to market the
product.........................................................................................................................................1
Analysis of internal strengths and weaknesses pertaining to the brand......................................2
Analysis of organizational external opportunities and threats pertaining to the brand...............3
Evaluation of organization's competitor analysis pertaining to the chosen brand......................5
Evaluation of target market selection and positioning of Topshop product and services in US
market..........................................................................................................................................6
Overview of realistic marketing objectives that Topshop should set in the target market
pertaining to the product/service.................................................................................................7
Analysis of entry mode strategies that Topshop should pursue in the new market....................7
Evaluation of international marketing-mix strategy that Topshop should follow to launch the
new product in new market.........................................................................................................8
Analysis of internal marketing budget strategy relevant for Topshop plan................................9
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
In the present scenario, companies are growing at a greater speed to retain in the diverse
market place and make the offerings to the customers and expand the market share. In order to
expand across the national boundaries, different aspects are ascertained and managed to take
appropriate decisions to make entry into the new market. This report discusses about the
competencies that are related to the brand which helps in analysing different dimensions and
perspectives that will properly evaluate the market trends. Topshop has been chosen to evaluate
different strategies that will help to make the entry into India’s market with the new product that
is offered as per the tastes and preferences of customers. As the trends modify sooner over the
limited time frame. Topshop is the multinational retailer of the fashion brand which offer the
different shoes, clothing and the accessories and make up for the women's. It has 500 store which
are opened worldwide to make he offering.
Various competencies of brand and the ways through which they are utilized to market the
product
There are several competencies that are related to the brand and essential to determine the
entry of products in the new market. Competencies reflect the portfolio of business that helps
Topshop in making their product offerings to reach the market and significantly, meet the
customer needs (Canel, Bejou and Khumawala, 2015).Topshop is the multi clothing brand which
require expansion with the boundaries of India to make the offering of the product and the
services. Generally, it is the growth strategy that is adopted by Topshop to make the offering.
There are four growth alternatives which are available for Topshop:
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 Market penetration: This is the strategy which was adopted by Topshop to grow their
market share by providing special discounts and various facilities to expand and make the
offering more attractive and affordable.
 Market development: This is the strategy which is adopted by Topshop to enter into
Indian market with the help of the new product range as per the market demand. There
are 142 stores of Topshop which are opened worldwide.
 Product development: The major objective behind this strategy is to develop a new
product to the existing market to expand the market share. Topshop include various
brands to make the offering to the customers with the help of the unique collection of
different designers.
 Diversification: Topshop adopted this strategy to offer the new product range in the
market of India.
With this strategy it can be easily determined that Topshop adopted these strategy to
make the offering to the customer of India. As India is developing with the objective to adopt the
fashion trend and grow their level of standard.
All these competencies are beneficial as they help in developing the conceptual
framework that is utilized to enter in the new market with the product that they are offering to the
customers as per their need specification (Kanibir, Saydan and Nart, 2014.). Topshop effectively
determines the respective elements that are based on different aspects. This competency provides
a clear image that can be efficaciously presented and would help Topshop to market the chosen
product to the target group.
Analysis of internal strengths and weaknesses pertaining to the brand
The internal strengths and weaknesses determine effective process to analyze the
elements that help to evaluate different aspects. Topshop is a multi-branding store which they are
offering to obtain competitiveness and competencies that are utilized while carrying out the
operations to make offerings. Thus proper analysis will define the respective strength and
weakness of the brand which will determine the different aspects that are related in order to
enter into a global market with the formal shoe range. The strengths and weaknesses are stated as
below:
Strengths:
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Knowledge and experience: It is an essential aspect that helps to effectively determine
and pinpoint various opportunities that are identified by Topshop as per the knowledge and
experience which is attained by making offerings reachable in the market (Hollensen, 2015.
However, these aspects prove to be beneficial as they are utilized to enter in the new market.
Creativity and innovation: In the present scenario, customers are attracted towards
creative and innovative product that is offered in the market. It is because; this aspect is involved
by Topshop and is used effectively to offer the products in the market of other countries.
Reputation: Along with the different dimension, it is essential for Topshop to build up a
good reputation in the market place as well as in the minds of customers. Now a days, the
customers are very conscious about the brand reputation as this element helps to enter in the
international boundaries for the purpose to offer the product and services ..
Weaknesses:
Lack of experience: This is the prospect that led into the biggest weakness as Topshop
does not have any prior experience to operate within new market of other nation. It is because; it
is difficult for them to manage the entire functioning as numerous aspects are involved to carry
out several operations (Kuang-Ying Loo and Hackley, 2013).
Different brand: As the accessibility to brand is unique and exclusive, it may result in the
controversy in the nation in which Topshop is offering the product and services. The brand
competencies reflect deficiency and other aspects that weaken the overall functioning of
Topshop.
Deficiency of budget: While making entry in the new market, this perspective is essential
as all the operations are designed while keeping in mind the functional perspective that needs
appropriate budget to carry out the entire functioning and to ascertain the exact amount as
deficiency may result in failure in context to the entry in new market. Thus, this weakness may
hinder the performance as well as the standard of Topshop.
Analysis of organizational external opportunities and threats pertaining to the brand
In order to expand and grow, they require ample amount of resources that help to work in
order to meet new opportunities that are present in the market place in which they are trying to
enter to make the product offerings (Davies, 2012). In order to expand further within the
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boundaries of India, Topshop needs proper pestle analysis for the external opportunities and
threats that are discussed as underneath:
 Political factors: These factors influence the integration of work policies to a greater
extend. In India these factors determine proper agreement that develops new
opportunities for Topshop to make the entry into the market. Threats are also involved as
there is a huge gap in various factors that are associated with the offerings as they lack in
policy and regulation. This affect the management of different political factors and
discourages the investment due to which the performance hinders to the certain extent.
 Economic factors: Now a days, People of India are more fashion forward and opt for
shopping new things, they have a unique style and attitude. The demand of the customer
is related to the new product which is matching the trend of the market place and
provides the opportunities to Topshop as they will satisfy the customer needs. However,
the threat that is associated with it is the controversy between present brands in the
market with Topshop as it is difficult to acquire the market share at an ease in the highly
competitive market. As the market is developing and the other brands are also trying to
enter as there is large market place to operate. The margin of the net cash deposits were
of £ 205.1 m as compared to the previous year. The total sales were £ 2,706.5 m as
compared to the previous which was £ 2,682.6m.
 Social factors: In India the people are becoming more fashion oriented and the earning
objective is to raise their standard of living which will provides new opportunities for
Topshop to make entry into the market. The customers are quickly adapting the product
and the services as now people of India are concerned more about the quality. On the
other hand, this factor also influences the market offerings as the cultural factors play a
vital role while making the purchase on customer hand from the new brand because the
people still follow some traditions that are associated with their communities.
 Technological factors: These factors determine different aspects that help to develop the
product as per the perspective that will help Topshop to meet the opportunities as the
customers which are present in the market of India are concern about modification and
diversification in the product and service that is being offered to them. As the technology
is expanding at a greater speed, it influences the overall performance. However,
sometimes, firms are not able to use the latest techniques as it requires huge investment.
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As the market of India is still at a growing stage and require greater development in
respect to the technological factors.
 Legal factors: The rules and regulations differ across the boundaries as the operations
are different from place to place. As Topshop needs to meet the opportunities by stepping
into the market, as the market of India is encouraging the new company and provides
them ease to function and carry out different operations as it contributes in the successful
entry to make the offering. However, to a certain extent, they are also restricted with
certain rules as the competition is raised by the entry in new market.
Evaluation of organization's competitor analysis pertaining to the chosen brand
In the present era, competition is expanding at a greater speed which influences the
overall performance of Topshop as there are several aspects that are associated with the offering
that they make to the customers who are present in the market of India (Coates, 2012).
Figure 1: Porter's five forces model
Factors Description Impact
Threat of substitute Product Topshop footwear for
youngsters will be of good
quality but still the other giants
who are present in the market
Moderately unfavourable for
Topshop
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are hard to beat.
Threats of new entrants As the place to make the entry
is new and it requires the
heavy research and
development to make the
offering and identify the needs.
Favourable as they are well
known clothing and accessory
chain.
Competitive Rivalry There is huge competition
from the local brands which
are available in the market of
India.
This is unfavourable for
Topshop.
Bargaining power of supplier As the resources which are
available in India are less
quality based and is available
at the cheap rate. In order to
make the product available the
impose high duty over the
resources.
It is favourable to a certain
extend for Topshop.
Bargaining power of buyer People prefer lowering of the
prices of the product in order
to make the purchase in India
This is unfavourable for
topshop.
Evaluation of target market selection and positioning of Topshop product and services in US
market
Market of India is the fast growing market as it includes ample of potential factors that
help in the proper evaluation of target market which is essential to create the place to make the
offering related to the formal shoe range (Bartlett and Ghoshal, 2013). The target market
selection process and positioning aspects are evaluated in a proper manner as they are very
essential to make the offering as the targeted market is catered to the larger extent. Proper
evaluation while selecting the target market helps Topshop to design respective aspects to make
the offering. Each perspective is essential to select the market to which they are targeting to
make the offering reachable to customers who are present in the market of India.
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Topshop is a well recognised and well established brand as it emphasizes on different
perspectives to strengthen their position in the market in which it is making entry with the new
product (Lea-Greenwood, 2013). Topshop determines the entire perspective related to expansion
and growth in the market of other nation. The perspective related to positioning in Indian market
is related to the aspect to meet the growing needs of customers to satisfy them so that they would
be able to function in an effective manner. Topshop is entering the new market to offer the shoe
range for the young people and form a fashion statement for the people. They is ascertained by
the effective adoption of the STP approach to select the youngsters and the working personal to
market the product to meet their requirement with the offering at a lower rate.
Topshop select the target group to whom they are marketing the product. With the proper
identification of target customers, it helps the organization to operate in an effective manner. The
targeting of customer group in the Indian market will help Topshop to effectively identify the
market needs that are needed to be fulfilled. This will help Topshop in effectively marketing and
selling of the products. This will help Topshop in proper positioning which will help to attain
high returns on investment with the offerings and operations related to the product that is offered
by Topshop. With the help of effective management of the human resources to make the offering
to the customer in an effective manner.
Overview of realistic marketing objectives that Topshop should set in the target market
pertaining to the product/service
There are different objectives that are designed and evaluated in order to achieve the
maximum profits by offering the desired product to a large number of customers. In order to
attain the objective, it is essential that the specific criteria should be defined so that offering is
made in an effective and efficient manner (Kuang-Ying Loo and Hackley, 2013). The overall
objectives are in order to introduce innovative product to the targeted market that will be cost
effective.
The market is very large and have ample amount of offering within same market and in
order to cater the large customer base, it is required that Topshop must create proper awareness
among consumers related to the formal shoe range which they are offering in India's market. This
will help Topshop to cater the ample resources to meet the and offer the product to the
customers.
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While making offering Topshop can build up the high satisfaction level among the
customer as the customer obtains the clear picture related to the product. The offering will
benefit them as it will increase the sale of the product as Topshop offers the product with the
perspective to meet the needs specification of the customers.(Coates, 2012). This will be an
encouraging factor for Topshop as the product will be less expensive and would be within budget
as they can offer discounts or offer the product at a reasonable price. This is the influencing
factor as customers are provided with quality product which helps Topshop to attain the main
objective that is related to get entry into the Indian market.
Analysis of entry mode strategies that Topshop should pursue in the new market
Topshop is a multi-clothing brand that offers ample number of products and services
related to different segments of customers in order to meet their needs specification in an
appropriate manner (Hollensen, 2015). Topshop is entering into the Indian market to expand its
offering criteria with the adoption of different strategies by providing variety of options so that
customers would have lots of options to choose as per their needs. In order to enter in the market,
objectives of Topshop are clearly defined that will help to adopt the strategies that can be
exercised to meet the desired aspect related to the product offering.
Proper analysis is being done to conquer the larger market share by offering products
through adopting diversified strategy as they are selling the product that is not present in the
market of India (Baker, 2014). Main objective behind the strategy is to expand. This strategy is
beneficial as Indian market is becoming more fashion oriented and it is more concerned about
the new product that adds on high standards with the adaptation of new product.
The diversification strategy involves marketing of clothing and fashion products to the
customers in India's market. This helps to analyze various opportunities that can be availed by
them after making entry in the new market.
Evaluation of international marketing-mix strategy that Topshop should follow to launch the new
product in new market
Topshop is the retail outlet that has to be followed in order to launch the shoe product in
the market of India to expand their market share and also, to increase the market offerings. All
strategies evolve against the perspective related to the marketing mix which helps Topshop to
launch the shoe product (Powers and Loyal, 2010).
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Proper evaluation of international marketing-mix strategy helps Topshop to adopt essential four
elements for establishing the place for the product in Indian market. Topshop should effectively
and efficiently adopt these elements to yield the market share and to generate huge profit out of
it. The elements are explained as below:
 Product: It is an essential element as it provides basis for the purpose that makes
existence of business in the market place. The quality of product which is being offered
by Topshop is the lifeline for them while launching the formal shoe range in the market
of India. It offers the product with proper evaluation of the needs which are to be met by
them (Kuang-Ying Loo and Hackley, 2013).
 Price: The price plays a crucial role while making entry to launch the shoe product in the
market of India. It is evaluated that the people are more concerned about the quality that
as well as the price so Topshop need to be more conscious about the quality as well as
about the price as it enhances the sustainability of shoe product.
 Place: As Topshop is new in the market of India and the place where is operates is
highly populated. For the establishment in the market to launch a new product. This will
help Topshop to build up the ideal place in the market by offering new product. As the
market is very advance and fast growing Topshop can effective make the effective place
in order to make the offering.
 Promotion: This marketing-mix strategy provides a clear picture as they are targeting
youngsters as well as professionals who have equal importance for the formal shoes.
With the help of events, the product will be advertised and will create the stir among
youngsters as the product which is offered by Topshop is more trendy and stylish. With
the proper selection of the target group the product will be promoted in an effective
manner.
Analysis of internal marketing budget strategy relevant for Topshop plan
Topshop need to prepare budget through combining all the budgeted revenues and
expenditures for the future period. There is different method available for preparation of budgets.
The two most important methods are zero base budgeting and incremental budgeting method that
are explained below:
Incremental budgeting method: it is the traditional budgeting method. In this method,
budget is prepare by taking current year budget as base. All the business revenues and incomes
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are increases by adding a certain amount or a fixed percentage. It is easiest method of budget
preparation. The advantage of this method is that it follows consistency between budgets of all
the subsequent years. However, the drawback of this method is that it does not determine the
importance of each operating function in future period as it increases all the business
expenditures.
Zero base budgeting: It is the modern budgeting method and overcomes the limitations of
incremental budgeting method. In this method, managers prepare the budget by taking zero as
base figure. They analyses the market changes and its impact on the business in order to estimate
future year revenues and expenditures. The mangers forecast the business incomes and allocate it
in an efficient way so as to reduce cost. Thus, the benefits of the method are that it ensures
optimum allocation of resources in different operational activities. Thus, it is clear that Topshop
can prepare its budget through using this method.
CONCLUSION
From this report, it can be concluded that with the proper analysis of different strategies,
Topshop get support to enter in the new market. This results in the expansion and growth by
meeting the requirement of people in a specific manner. With the proper evaluation, it is also
determined that the diversified strategies strengthen the position in the target market in which
offering is made to the customers in order to increase company’s scope.
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Online
Powers, L. T. and Loyka, J. J., 2010. Adaptation of Marketing Mix Elements in International
Market. [Pdf]. Available through: <
http://www.tandfonline.com/doi/pdf/10.1080/08911760903442176>. [Accessed on 23rd
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