International Marketing INTRODUCTION 1 TASK 1 1. Drivers of globalisation, nature of environment 3 4. Identification and justification of one specific target market within UK 4 5. Critical evaluation

Critically evaluate one International Market Entry strategy 5 CONCLUSION 6 REFERENCES 7 INTRODUCTION Global marketing is a term which means exchange of goods and services across the international marketplace in order to seek the attention of domestic as well as foreign clients. Nike is a most popular American brand which is famous for its unique designs, development, manufacturing and worldwide marketing such as; sales of footwear, apparel, equipment’s, accessories and services. Thus, various factors associated with globalisation is outlined in the project

International
Marketing

INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
1. Drivers of globalisation...........................................................................................................1
2. Analysis of nature of global environment...............................................................................3
3. Identification and justification of one specific target market within UK................................4
4. Identify and justify one type of global international strategy method....................................5
5. Critically evaluate one International Market Entry strategy...................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Global marketing is a term which means exchange of goods and services across the
international marketplace in order to seek the attention of domestic as well as foreign clients.
However, main objective of expanding business across distinct market is to grab the opportunity
which is available into global market also. It helps in meeting the requirements of selected
foreign nations where values of organization can also exported (Berthon and et. al., 2012). Nike
is a most popular American brand which is famous for its unique designs, development,
manufacturing and worldwide marketing such as; sales of footwear, apparel, equipment’s,
accessories and services. However, company is having its headquartered near Beaverton, Oregon
in Poland. Therefore, assignment is going to highlight the expansion process which needs to be
followed by Nike while expanding their business into UK market. Thus, various factors
associated with globalisation is outlined in the project such as; drivers, nature of market, specific
market with justification, global entry and exit strategy for Nike.
TASK
1. Drivers of globalisation
Nike is an American multinational brand which is involved in manufacturing large
number of products such as; footwear, apparel, equipment’s, accessories and distinct services.
Basically, this association is considered as world’s largest supplier of athletic shoes and apparel
as well as major producer of sports equipment’s by having revenue more than nearly US$24.1
billion in their fiscal year 2012. However, in 2012, company is having more than around 44,000
employees across the worldwide. In coming year 2014, brand alone is exceeding the value of
around $19 billion. Now company wanted to expand their business in UK market for generating
more or more revenue by seeking the attention of European members also. Therefore, it is
essential to come analyse the various drivers of globalisation before entering into new market for
minimizing the possibilities of mistakes (Papadopoulos and Heslop, 2014). However, four main
drivers of international marketing are; market, government, cost and competition. Basically,
these extrinsic drivers influence the major conditions of associations which are not controlled by
firm individually.
 Market- This driver includes various areas such as; common needs of final users, trends
of marketplace which fluctuates due to changes in choice or preferences of clients and
1

various other fluctuation that affect the business operations of Nike. It means, analysis of
market aids in understanding the alteration which is mainly incurred a UK market for
designing their planning or strategies as per customer needs.
 Government- Advisory bodies also act as major driver for Nike because governing
bodies are responsible for implementing various policies which leads to reduction in trade
barriers. Along with this, supports a nation in shifting towards open market economy
which is really beneficial for Nike while emerging into UK marketplace.
 Competitive advantage- In case of this driver, increase trade between various nations
with foreign direct investment supports in maximizing interdependence among nations
and associations as well as expose the company into new competitors (Ruzo and et. al.,
2011).
Apart from this, there are few other major drivers of globalisation are also identified which are
explained as follows-
 Trade liberalization- In order to control global economic position, governing bodies is
using various trade policies for analysing that what is goes in and what is going out like
export and import. Basically, number of restrictive norms are implemented for import
system such as; barriers such as tariffs, non-Tariff barriers, whilst for exports. Apart from
this, one of the key major feature and driver of internationalization has been liberalization
of barriers on exchange in goods and services.
 Distinctiveness in cost between nations- Every nation is having major difference in
currency, phase of development, location and demography. For example; price of
production factors, land, capital and labour. However, these major differences maximize
international trade and investment also. For instance; in southern city of Guangzhou,
China almost 10,000 labourers perform legitimate hours stitching shoes for Nike at nearly
$95 per month (Czinkota and Ronkainen, 2013).
 Instant change in technology- Emergence of advanced technology in past few decades
lead to great improvements in global connectivity, mobility and interaction. For instance;
changes in technology facilitating Nike while expanding their business into new market
by accomplishing various business activities in more suitable manner. As it aids in
maintaining long distance relationship with various customers, suppliers and
shareholders.
2

2. Analysis of nature of global environment
Nike Inc. is popular in footwear, apparel, equipment and some of the accessory products
for men, women’s and children. However, this organization offers various footwear for sports
games such as; football, basketball, soccer, baseball, tennis, golf, walking henceforth. Basically,
nature of global environment always fluctuates due to changes in various other factors such as
external and internal elements. Therefore, nature of environment is discussed as follows-
External environment- These elements are not controlled by an organization as it
always changes due to modification in other factors which is discussed as follows-
 Political- Governing bodies of nation is liable for enforcing economic policies which is
beneficial for growth of Nike in UK market. However, US policies have mainly enables
Nike to develop its market and products. US government have supported Nike in various
manner such as; stability in macroeconomic, low-interest rates, stable currency situations
and international competitiveness of tax system. Therefore, political rules and regulation
is somehow affects the business performance by allowing them to perform in much better
manner (Morgan, Katsikeas and Vorhies, 2012).
 Economic- Most biggest threat for Nike is economic downturn which leads to slowing
down in purchase of product. As a result, it influences the growth of Nike because price
of raw materials get increased which automatically minimize the profit margin of an
organization. Therefore, it is essential to get aware about the changes which incurred in
UK economic situation.
 Social- In this modern world, customers are becoming more brand conscious and prefer
branded goods. However, this is not an obstacle for Nike as this association is considered
as top most company in sports brand across the world. Its most populous slogan is
“SWOOSH” is quickly recognizable. Preferences and choices of users are changing
rapidly and becoming more fashion oriented for leisure activities instead of sports
activities (Moon and Park, 2011).
 Technological- Nike is having integrated technology for developing its goods very vastly
as now-a-days users are always connected with modern tools for accomplishing their day
to day activities. For example; prefer mobile application and gone through company’s
websites before going for shopping. However, Nike always adopted latest tools and
technologies for their product manufacturing and development.
3

 Environment/Green- Nike always do various attempt for reducing influence of various
products from environment in entire product life cycle which started from designing to
manufacturing. Therefore, environmental change affects the Nike performance while
expanding its business in UK and somehow support company to attain their set objectives
or goals.
Internal factors- These factors are somehow controlled by organization and manage to
cope up with current internal changes which is described as follows-
 Main competitors- Foremost competitor of Nike is Adidas and Reebok as well as
various other small organizations such as; New Balance, K-Swiss and so on. However,
Nike is having major brand awareness across the international marketplace due to which
they doesn’t requires much efforts for selling their products.
 Sales and Profit trend- Nike is seen as market leader in Athletic footwear industry by
having almost 31% of market share. Along with this, company is focussing on product
development and offering its users with various creative and new edge for goods (Lee
and Carter, 2011).
3. Identification and justification of one specific target market within UK
UK is a very broad marketplace because number of competitors are emerging which
affects the success of an organization in various manner. Basically, various types of users are
available which are having distinct choices, preferences and taste towards products. However,
various types of markets are available such as; Demographic, Geographical, Behavioural and
psychographic. All these four are different from each other in various terms and suitable for
several industries. But, Demographic market is most suitable for Nike within UK because it
helps an organization in targeting individuals as per their age, life-cycle, gender, occupation and
generation. Primarily, Nike needs to target the consumers who are in an age group of 15-40
because these people are more brand conscious and believes in maintaining their image at
societal place. For example; professional persons always wanted to establish their outstanding
personality in between community place by preferring branded products. Therefore, Nike must
have to maintain their goodwill amongst adolescent people who are working and connected with
public place.
4

4. Identify and justify one type of global international strategy method
Marketing strategy of Nike is totally depending upon their goodwill at marketplace and
image of goods. However, Nike invests lots of things in commercials and promotions of product
for capturing the minds of distinct clients. Most common strategy of Nike is to offer similar
product in various market which helps them in gaining trust of domestic as well as foreign users.
Nike get succeeded in international marketing because this company get understand the whole
markets and method of reaching towards each audience in personalized approach which is ;
working for people belongs from distinct languages, cultures, customs, needs and differences.
Mainly, this organization is most successful organization across the globe in various terms such
as sales standpoints and in their marketing initiatives. Apart from this, there are another
technique through Nike can achieve success by passing correct message to various audiences.
From the beginning of an organization, Nike is recognized by customers with their most famous
slogan “Just do it”. However, Nike get succeeded in marketing across the borders by using
emotional advertising and branding. Company is not selling the product directly as they are still
managing to build a strategy which appeals to consumers aspirations or emotions in order to
establish an attachment with brand (Cadogan, 2012).
Consequently, company is based on emotions of activity, heroism, success, achievement
and triumph for appealing consumers. Some of the Nike’s emotional branding techniques
includes advertisements with phrases such as; “Anticipate greatness” or “Your only limit is
you”.
5. Critically evaluate one International Market Entry strategy
Market entry strategy is a term which shows an appropriate path or way for company to
get entered into new market by considering necessary facts or figures. Therefore, some of the
necessary strategy of entering into market is –
 Exporting- Direct exporting is an appropriate method of selling products to directly into
the selected market. After establishment of sales program, an organization appoints
agents or distributors for representing the company further in marketplace.
 Licensing- It’s a kind of sophisticated arrangement where an association transfers the
authority to use of product or service to other firm. Somehow, this is also suitable for
Nike while expanding their business in UK as it helps in controlling the extra expense of
an association.
5

 Joint ventures- As per this strategy, an organization come closer to get engaged with
other organization for making a joint venture in order to attain set objectives or goals.
Nike can also go for this option but by using this profit margin of an enterprise also get
minimized because business is shared with two organizations.
CONCLUSION
From the above report, it has been summarized that Nike is having number of options and
techniques for gaining competitive advantage in UK also because of their strong brand
awareness. However, globalisation is hard to predict due to which an association have taken all
the measures for attaining their set objectives or goals in a prescribed duration. Throughout the
analysis, it has been understood that analysis of external and internal environment is
indispensable for enterprise whether it’s small or large because changes are unpredictable. In
fact, company cannot able to control external factors due to which it is essential for association
to make suitable plans before entering into new market. Hence, all the information associated
with UK market that is used by Nike while expansion process is fully explained in the above
project.
6

REFERENCES
Books and Journals
Berthon, P.R and et. al., 2012. Marketing meets Web 2.0, social media, and creative consumers:
Implications for international marketing strategy. Business horizons, 55(3), pp.261-271.
Papadopoulos, N. and Heslop, L.A., 2014. Product-country images: Impact and role in
international marketing. Routledge.
Ruzo, E and et. al., 2011. Resources and international marketing strategy in export firms:
Implications for export performance. Management Research Review, 34(5), pp.496-518.
Czinkota, M.R. and Ronkainen, I.A., 2013. International marketing. Cengage Learning.
Morgan, N.A., Katsikeas, C.S. and Vorhies, D.W., 2012. Export marketing strategy
implementation, export marketing capabilities, and export venture performance. Journal
of the Academy of Marketing Science, 40(2), pp.271-289.
Moon, T.W. and Park, S.I., 2011. The effect of cultural distance on international marketing
strategy: a comparison of cultural distance and managerial perception measures. Journal
of Global Marketing, 24(1), pp.18-40.
Lee, K. and Carter, S., 2011. Global marketing management. Strategic Direction, 27(1).
Cadogan, J.W., 2012. International marketing, strategic orientations and business success:
Reflections on the path ahead. International Marketing Review, 29(4), pp.340-348.
7

8