MGT308 International Marketing Management: Bush Babee Expansion Report

This report provides a comprehensive analysis of international business expansion strategies for Bush Babee, a company specializing in apparel, footwear, and accessories. The report begins with an overview of the company's objectives, mission, and current business performance, followed by a situational analysis using SWOT and PEST frameworks. It then outlines international marketing management objectives and analyzes two potential markets: the UK and Brazil, considering political, economic, social, and technological factors, as well as cultural adaptation and trade agreements. The analysis includes a discussion of competitive advantages, modifications to the marketing mix, resource planning, and budget forecasting. The report concludes with a scenario analysis and recommendations for successful international expansion, supported by relevant references.

Business expansion strategies

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BUSINESS EXPANSION STRATEGIES
Table of Contents
Introduction................................................................................................................................1
Company’s objectives and mission............................................................................................1
Current business performance....................................................................................................1
Situational analysis of the Company..........................................................................................2
(a) SWOT analysis for the Company................................................................................2
(b) PEST Analysis of the Company..................................................................................3
International marketing management objectives.......................................................................4
Analysis of two new markets.....................................................................................................5
First market: Apparel market of UK......................................................................................5
Second market: Fashion market of Brazil..............................................................................6
Analysis of competitive advantage of the selected market....................................................7
Modifications in marketing mix of the Company......................................................................8
Resource planning, control and implementation........................................................................9
Budget forecasting of the project:..........................................................................................9
Scenario Analysis...................................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

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Introduction
In this report an analysis will be done over the international business expansion
strategy for The Company named ‘Bush Babee’. As an external business consultant the team
has to suggest the expansion strategies for The Company which is dealing with apparels, foot
wears and accessories for babies, children, teenagers and women. The Company was
established in the year 2000 with having a small and single shop in Victoria. Now The
Company is planning to open new branches through-out in Australia and even in other
countries. The Company is focusses on making beautiful and unique designs in the products
made from natural fibres and fabrics.
Bush Babee continues to deal with the various products related to the girls with the
age group of 5 years to 12 years and a new Company named as ‘Landed Lady’ has been
launched for women.
Company’s objectives and mission
The major objective of The Company is provides attractive and beautiful designs of
apparels and other accessories to their clients by gaining maximum benefit. The Company is
also trying to open its new branches in other countries and cities to expand its business. The
goals of the Company are to get exposure in the market of other countries by extending its
branches with retail stores in different countries as well as in its host country (É Foley, 2010).
Current business performance
The Company is performing well in the field of apparels and beauty products of girls.
It has a vast variety of products and has a great retail experience in both stores and online
websites. The company is performing exceptionally well in the field of customer satisfaction.
It is doing well in generating revenue and profit that is why it is planning to open its new
branches inside and outside the country. The company wants to establish a brand name in the
field of apparels and accessories for girls and ladies (C Curchod, 2020).
Situational analysis of the Company

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Before making any expansion or marketing strategy for the Company, it is very
important to conduct a situational analysis of the Company to know the real and exact
situation of the Company. It is an analysis of internal and external factors of the business in
order to assess the position of the business (BO Babatunde, 2012).
The following analysis models are used to analyse the situation of the Company:
(a) SWOT analysis for the Company
It focuses on the factors related to strength, weakness, opportunities and threat of the
Company.
Strength: The strength of the Company is the unique and beautiful designs of the apparels
which the Company designs for the girls and women. Company is designing and selling the
beautiful garments, beauty products and accessories for girls. A large group of customers is
one of the important strength of the Company. The quality of the products is also the strength
of the Company (S Kosti, 2020).
Weakness: The Company is not performing satisfactory at acquiring customers. Although,
the Company is earning the significant revenue but the production requires a lot of selling
effort to utilize and explore the full production capacity of the Company. Moreover a lot of
efforts are required for doing market research in order to know the latest trend and fashion in
the field of apparels and beauty products. Research should also be done for knowing the
mind-set and likings of the customers (BO Babatunde, 2012).
Opportunities: There are a lot of opportunities exist for the business. The Company can
extend its business in other countries as well as in domestic country. The product line can
also be widened by producing new products of the same line of business for fulfilling the
demand of the customers and for gaining a competitive advantage over the rival firms by
having a large chain of products (S Kosti, 2020).
Threats: The increasing competition is the major threat for the business of the Company.
Other companies are also performing very well in the field of garments of baby girls and
women. Suppliers of the natural fibres and fabrics may increase their cost for their benefit; in
that case Company has to suffer a little bit declines in the revenue. Client finding and
acquisition is one of the crucial threat for the Company because the competition is keep on

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increasing day by day. The Company has to take some necessary steps to overcome from the
threat related to the increasing competition in the field (S Kosti, 2020).
(b) PEST Analysis of the Company
Political analysis: The government policies related to tax and import duties may change any
time for improving the economic condition of the Company. Laws related to the protection of
the environment may also change with respect to time. Although the Company is using
natural fibres and fabrics for making the apparels and beauty products but the environmental
laws may impact over the raw material supply for the Company (Gupta, 2013). Overall, it can
be said that the political factor is in a volatile position and may negatively affect the business
of the Company (Bush, 2020).
Economic analysis: The economic condition of the Company is up to satisfactory level
because customer likes the uniqueness in the designs of the products of the Company. The
GDP of the country is also in a satisfactory position so that it can be said that economic
environment of the Company is stable and favourable for the Company. The monetary
policies of the country is also not very much fluctuating and country is known to be a
growing economy (Bush, 2020).
Social factors: Social factors are very much responsible for the growth of the Company. The
Company also has its retail and shopping stores on online websites that is related to the
public. Social norms and culture may directly influence the business of the Company. The
advertisements and promotional events of the company also linked towards the social
environment of the firm (RJ Calantone, 2006). The social factors of the country like choices
of the customers, psychology of the employees and stakeholders may vary with respect to
time but by knowing the trends in the liking of the customers can increase the revenue and
benefit for the firm (T Çitilci, 2020).
Technological factors: Changing technology especially in the field of E-commerce and
information technology may affect the business of the Company up-to a great extent.
Company is using E-commerce and digital marketing techniques in order to promote its
business. That is why the changes in the technological factors are directly links to the client
acquisition and sales for the Company. The updations with the latest trends and innovation in
the technology are essential for the growth of the Company (QT Dang, 2020).

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International marketing management objectives
The Company is planning to extend its business inside and outside the country. The
major marketing objective of the Company is to extend its sale in different areas of the
country and even outside the country. By establishing the retail stores at different places,
Company may obtain a large group of customers having different backgrounds. By opening
various stores at different position; the Company may establish a brand name and fetch a
large amount of benefit (BO Babatunde, 2012).
Growth and expansion in the international market is necessary for getting a competitive
advantage over the rivals. In this globalised world, the success of a business is depends up-on
the extension of its business in various countries by obtaining a large base of customers
(Waral, 2020).
Analysis of two new markets
First market: Apparel market of UK
If the Company is going to extend the business of apparels and beauty products in UK, it
has to analyse the various risk factors. Some of the risk factor’s analyses are as follows:
(a) Political risk: The political environment of the UK is very much fluctuating because
of the decision of the government that from now, UK is not the part of European
Union that is why the political scenario is very much fluctuating in these days. The
import and export policies and tax duties may vary any time because of the
fluctuations in the political environment. Changes in the ministers and presidents may
also impact over the business of the Company. It can be said that there is a significant
level of risk exists in the political environment of UK.
(b) Economic/Financial risk: The monetary and taxation policies of the Company may
change with respect to the fluctuations in the political environment of the country.
Exchange rate and raw material availability is also very uncertain in the country. That
is why investing in this country may be risky for the business of ‘Bush Babee’.
(c) Cultural adaptation: The people of UK are different in culture and values as
comparative to Australia. That is why cultural diversity issues may be found in UK.
The likings, choices and opinion of the customers may vary because of the cultural

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diversity. The Company has to do a sufficient market research to know the consumer
behaviour process and trends of UK.
(d) Trade agreements: Although trade agreements and policies of the UK is favourable
for the business of the Company but there may be changes and up downs take place
because of the changes in economic factors of the country (C Curchod, 2020).
Second market: Fashion market of Brazil
If the Company is going to open new retail branches in the market of Brazil, it has to
assess the various features of the risk associated with the country. Some of the factors related
to risk analyses are as follows:
(a) Political risk: Brazil has a political stability now days but still there may be chances
to variations in the import and export policies of the country. Brazil usually organise
many international events and carnivals. Because of these events, changes may occur
in the political environment of the country. Before extending the business in Brazil,
the political risk factors should be assessed in an efficient way (GENERALE, 2020).
(b) Economic/financial risk: Brazil is still in recovery stage because of the worst
recession faced by the country in the year 2015. However the country improves a lot
but still GDP of the country is not very much satisfactory growing rate. In 2018,
inflation recorded in the economy by 3.7% and it is expected to increase in further
years. A deficit of 7.3% is expected to be recorded in 2020. These statistics stated that
there is a high economic and financial risk is associated with the investment inside the
country (GENERALE, 2020).
The Company need to take preventive steps in order to safeguard their business from
the financial and economic risk exists inside the country.
(c) Cultural Adaptation in Brazil: There is a huge difference in the culture of Brazil
and Australia. The Company need to do a lot of research over the consumer behaviour
before entering in the market of Brazil. The fashion trends are very different in Brazil
because of the changes in believes and values of the culture. Liking and disliking is
totally different in the field of apparels, beauty products and cosmetics. Survey,
primary and secondary research related to the choices of consumers may help the
Company in extending its business in Brazil (Frue, 2020).
(d) Trade agreement: Although the country is at satisfactory level related to trade
agreements, it is not very costly to extend the business in Brazil but because of the

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changing political scenario, the risk is associated with trade agreements. The
Company need to make a back-up and recovery plan in case of any significant
changes in the trade agreements (A Chernobai, 2020).
On the bases of the above analysis, the market of Brazil is selected to open new retail
stores and branches to extend the business of the Company. The following factors are
associated to the measurement of the risk:
Analysis of competitive advantage of the selected market
The market of Brazil is comparatively beneficial for opening new retail stores because
the Company is producing very beautiful and unique designs of the apparels and footwear.
The Company is looking for a large customer base to sell its products (CA Bai, 2020). Brazil
has a very variety of group of customers and that is why Brazil will be best suitable country
to extend the business. The market of Brazil is very attractive for investment because of its
unique features (LAKE, 2020).
Modifications in marketing mix of the Company
(a) Product: The Company should modify the designs in the apparels and footwear
according to the choices of consumers. The liking and choices of the consumer may
be observed and changes should be made according to the need and likings of the
customers (B Özoğlu, 2020).
(b) Price: The pricing strategy of the products is very crucial strategy for the Company
because it directly links towards the benefit of the Company (A Golmohammadi,
2020). The price of the various products of the Company should be decided on the
bases of purchasing power and national income of the country (MG Dinis, 2020).
(c) Place: The place for opening the retail store should be based on the maximum
number of customer’s availability. Retail stores should be in the range of maximum
number of customers (S Evans, 2017).
(d) Promotion: Promotional events and advertisements should be made after analysing
the nature and mind-set of the people of Brazil. The psychology of the people of
Brazil has to be assessed before launching any advertisement (Auzair, 2011).

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(e) People: Analysis of the behaviour of the people of the country is very essential to
know about their culture and values. The selling and marketing techniques are very
much based up on the behaviour of the people of the country (Sim, 2020).
(f) Process: The complete selling and marketing process need to be modified according
to the requirements of the clients. The choices and preferences of the customers
should be on priority while modifying the marketing process (J Shields, 2015).
(g) Physical environment: Packaging and appearance of the physical evidence of the
product should be attractive to allure the customers of the Brazil. A good image of the
products of the Company should be established in the eyes of the customers
(Government, 2020).
Resource planning, control and implementation
Resource planning is related to the allocation of the necessary resources in order to
start the new business in another country. Resource planning involved the human resource
planning and raw material planning for opening new stores in other countries. After then,
execution and allotment of the resources are important for the success of the business.
Continuous monitoring over the use of resources need to be done in order to get success of
the business expansion strategies (Paulraj, 2009). This is an important and crucial step in the
successful implementation of the business. The success and failure of the new project is very
much depending upon the effective implementation of the different steps of extension of the
business (A Chernobai, 2020).
Budget forecasting of the project:
Type of resources Required budget
Natural fibres $ 25,000,00
Natural fabrics $ 30,000,00
Machines for making apparels $ 50,000,00
Machines for making footwear $50,000,00
Cost of purchasing building for establishing
branch
$ 1,00,000,00
Cost of hiring new staff $ 25,000,00

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Miscellaneous expenses $ 10,000,00
Total budget $ 29,000,000
Scenario Analysis
The starting of the new project is a little bit risky because of the various internal and
external risk factors associated with the project. The analysis of the complete scenario is
necessary for the effective implementation of the project. Scanning of all the factors of
business environment is very essential for the success of the extension of the business (É
Foley, 2010).
Internal and external business environment is very necessary for the development and
extension of the business. The top level managers of the Company need to be ensure about
the feasibility of the project which requires a lot of hard work. Allocation of resources and
proper execution is the most important factor in the success of the business of the Company
(BO Babatunde, 2012).
Conclusion
The Company named ‘Bush Babee’ have chances to successfully extend its business
in the market of Brazil. On the bases of SWOT analysis, it can be concluded that Company is
in a growing position and it has to take preventive steps to minimize threat and control its
weaknesses. According to the analysis of PEST, it can be said that a lot of fluctuations exists
in the external environment of the Company that is why a lot of attention is needed before
implementing the new project of extending the business. On the bases of the research of the
different factors of the market of UK and the market of Brazil, it can be concluded that
investing in Brazil would be highly beneficial for the Company. Precautions and preventions
are needed before implementing the required budget.

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