International and Global Marketing

This report discusses the drivers and factors impacting international expansion in the context of Bath and Body Works. It explores the entry modes and their benefits and implications for the entry of organization's products and services into a new foreign market. The report also highlights the internal and external factors that may influence the choice of entry modes.

International and
global marketing

INTRODUCTION
Now a day every company want to expand their business at the national as well as
international level because through that they able to gain numbers of benefits such as enhance
profit, market shares, customer’s shares and many more. International marketing is determined
as marketing practices conducted by a company in order to expand their business at the
international market (Buccieri, Javalgi and Cavusgil, 2020). Organization selected for this report
is Bath and Body Works which is founded in 1990 by Les Wexner and its head office is located
United State. Its parent company is L Brands and products offer by company are fragrance mists,
shower gels, lotions, cream, candles and so on. Now company is planning to open their store at
Vatican City. Topics covered in this report are related to expansion method, factors which
impact, drivers which leads to expansions and principle which company may adopt for
expansion.
MAIN BODY
A - Drivers that prompt organisations to seek international expansion. Discuss the factors that
could have an impact on your business abroad. Support with examples.
International expansion is considered as process through which an organization able to
expand their business at different nation market as through that they can attain more profit and
market share. There are several drivers which prompt a company to seek international expansion
from which some main are mentioned below in respect of Bath and Body Works :-
 High rate of profit – It is one of the main factor which attract company to expand their
business at the international market because they able to increase their profit rate. In
respect of Bath and Body Works they want to expand their business at the Vatican City
market through which they able to increase their profit (Kotabe and Helsen, 2020). For
example if respective company expand business they able to attract more and more
customers which increase their sales as well as profit.
 Increase technology and advancement – According to this driver if a company expand
their business internationally they able to adopt new as well as advance technology which
enhance effectiveness of their productions. In respect of Bath and Body Work by

expanding at Vatican City they able adopt new technology as well as advancement of
respective nation. For example it will help in adopting new technology which increases
their effectiveness.
 Increase customer’s base – It is also one of the main drivers which encourage companies
to expand their business at the international market because through it they can attract
more and more audiences toward the products and service (Kumar and Ravikumar,
2020). In respect of Bath and Body Works by expanding their business at the Vatican
City they able to increase their customer’s base which help in enhancing sales and then
profit ratio.
Along with this there are several factors which impact on the business when they operate
at the international level. From which some are mentioned below in respect of the Bath and Body
Works:-
 Political factor – There are different political elements influence worldwide variables.
Political factor for example, changes tax rates, policy, and activities of the government,
political dependability of the nation, foreign trade guidelines, and so forth influence the
working of a global business firm. Absence of political soundness in the nation
straightforwardly impacts the activities of a business firm. So it is essential for Bath and
Body Works to understand Vatican City political condition before expanding business.
 Economic factor – Financial or economic elements identify with the economic system of
the nation where the firm has its operations (Madura, 2020). Different economic factors,
for example, inflation rate, employment ratio, salary circulation, work level, distribution
of the administration spending plan, and so on, directly affect business of respective firm.
 Social factor – Social factors are like education, awareness, and patterns, trends and
status of individuals in the public impact on the consumer behaviour in order to purchase
several goods and services. Additionally, Social condition as well s culture such as
customs, ways of life, and qualities vary from nation to nation which further
straightforwardly impacts the Bath and Body Works and accordingly they need to
conduct innovation.

B - For the entry of organisation’s products and services into a new foreign market, some
institutional arrangements is necessary like entry modes and discuss benefits and implications.
Which factors (internal/external) may influence choice of the mentioned entry modes?
There are several entry modes which help a company in expanding their business at the
national as well as international level. from which some of the main entry modes are given below
which can be adopted by Bath and Body Worked while expanding business operations and
functions as Vatican City as well as it will also include its benefits and implication :-
 Franchising – It is depends on an advertising idea that can be embraced by an
organization as a technique for business development at the international level. Where
actualized, a franchiser licenses its ability, methods, protected innovation, and utilization
of its plan of action, brand, and rights to sell its branded products to a franchisee (Samiee,
2020). In respect to implement franchising method for the expansion Bath and Body
Works will contact franchisee at the Vatican City who will sell their products and
services at the respective market place.
Benefits:
o CAPITAL - The franchisor's capital necessities will be lower as that the
franchisees give the funding to open each diversified outlet.
o LESS EMPLOYEES – The quantity of workers which a franchisor needs to
operate or run a franchise unit is a lot littler as compare to other method of
expansion internationally.
 Partnership – It is considered as an arrangement where parties, known as business
partners, consent to coordinate to propel their shared advantages or interest. The partner
in a partnership might be people, organizations; interest based firm, schools, governments
or mixes (Tanasychuk, Sirenko and Shapovalova, 2020). In respect of Bath and Body
Works, in order to implement it they can conduct partnership with mall store, retail store,
or any other cosmetic company of the Vatican City as that will help them in increasing
their market shares at the international market by attracting more customers.
Benefits:
EASY TO START – Partnership is a very easy method for expanding business into new
market areas. This method will support owner to start business in with less legal

restriction and formalities. Partners can start a firm in partnership without registration and
this provide ease in performing organisational task.
SHARING OF BURDEN – Partnership is considered as a effective approach of
expansion of business and increasing market share as in this owners will be able to share
responsibility and task. This helps in effective performance of organisation as well as
bearing all profits and losses occurred by business operations.
Exporting - This can be describe as the method that could be adopt by organisation for
offering its manufactured products to new market area. Exporting is a method of
transferring goods and services from one place to another in order to meet with the need
of different customers and increase sale or profits of organisation. Exporting will help in
increasing the sales of Bath and Body Worked by selling its products across borders. In
this method respective company will create and produce products in one country and
shipping it to other countries. This is cost effective method of expanding business into
new and different market area.
FAST ENTRY – Exporting method is very beneficial for organisation as this
assist in fast and easy entry to new market area. Respective company can use this method
for selling its products to new and different market. For adopting this method
organisation does not need to invest for infrastructure of organisation in order to establish
in new market.
LOW RISK – This major advantage of exporting is that it includes low risk for
expansion of organisation as well as have impact on organisational profits. Respective
company does not have to bear huge loss if the business in not able to meet with the set
objectives. Exporting method for expansion of organisation will be at low risk.
Acquisition – This can be describe as the process in which one company is purchasing
other in order to perform business activates. For adopting acquisition method for
expansion of company. Bath and Body Worked organisation have to purchase most of the
shares of other organisation for gaining control over business and its activities. This is the
most common approaches that is used by larger organisation for taking control over small
company that is located in different market area. In the process of acquisition respective
company will purchase personnel, brand name and other intangible assets of organisation.

REDUCE ENTRY BARRIERS – Acquisition method will support in reducing entry
barriers for respective organisation as well as help in smooth performing of business task
in new market area.
NEW COMPETENCIES AND RESOURCES - Respective company will be able to take
advantage of new competencies and resources for performing organisational task. This
will benefit business in conducting organisational operations in new market area.

REFRENCES
Books and Journals
Buccieri, D., Javalgi, R. G. and Cavusgil, E., 2020. International new venture performance: Role
of international entrepreneurial culture, ambidextrous innovation, and dynamic
marketing capabilities. International Business Review. 29(2). p.101639.
Kotabe, M. M. and Helsen, K., 2020. Global marketing management. John Wiley & Sons.
Kumar, G. A. and Ravikumar, A., 2020. SOCIAL MEDIA FOR GLOBAL MARKETING IN
KPS TECHNOLOGIES, CHENNAI. International Journal of Management
(IJM). 11(3).
Madura, J., 2020. International financial management. Cengage Learning.
Samiee, S., 2020. International marketing and the internet: a research overview and the path
forward. International Marketing Review.
Tanasychuk, A., Sirenko, S. and Shapovalova, Y., 2020. STRUCTURAL SET OF THE
CONCEPT OF MARKETING MANAGEMENT OF THE INTERNATIONAL
ACTIVITY OF THE ENTERPRISE. COLLECTIVE MONOGRAPHS.