International Marketing: A Case Study of Henleys in Dubai

This report examines the international marketing strategies of Henleys, a men and women wear brand based in Manchester, UK. It analyzes the rationale for Henleys to expand globally, particularly into the Dubai market. The report explores key criteria for market selection, different market entry strategies, and the global versus local marketing debate. It also investigates how the marketing mix (product, place, promotion, and price) differs in an international context. Finally, the report examines various international marketing approaches and compares home and international orientations, outlining the impact of each approach on competitor assessment.

INTERNATIONAL
MARKETING

TABLE OF CONTENTS
Introduction......................................................................................................................................1
LO 1.................................................................................................................................................2
P1 Analyse the scope and key concepts of international marketing............................................2
P2 Explain the rationale for it to want to market internationally and describe the various routes
to market the organization can adopt...........................................................................................4
LO 2.................................................................................................................................................8
P3 evaluate the key criteria and selection process to use when considering which international
market to enter.............................................................................................................................8
P4 Explain, using examples, the different market entry strategies, including the advantages
and disadvantages of each.........................................................................................................10
LO 3...............................................................................................................................................12
P5 Present an overview of key arguments in global versus local debate..................................12
P6 Investigate how product, place, promotion and price distribution approach differs in variety
of international context..............................................................................................................15
LO 4...............................................................................................................................................17
P7 Analyze and explain various international approaches of international market of client
organization you have adopted..................................................................................................17
P8 Compare home and the international orientation and various ways to assess competitors, by
outlining the impact of each approach.......................................................................................19
Conclusion.....................................................................................................................................21
References......................................................................................................................................22

LIST OF FIGURES
Figure 1: Dubai retail market...........................................................................................................5
Figure 2: Different routes to market................................................................................................6
Figure 3: Dubai retail sales..............................................................................................................8
Figure 4: Economic sector of Dubai................................................................................................9
Figure 5: Global marketing approach in international market.......................................................13
Figure 6: EPRG approach for international marketing..................................................................18

Introduction
International marketing is concerned with suitable means that includes application of marketing
principles on global level. This includes trading and selling goods to other countries other than
operating in single country. Current report is based on the case study of Henleys that is one of
the men and women wear brand in Manchester, UK. Due to increase in competition, business
wants to expand globally in different markets such as Dubai to earn more sales and revenue.
Current report will discuss about scope for Henleys to expand globally into different markets.
Entry to selection of markets is illustrated with following suitable process that will help
organisation to enter into different markets. Moreover, different elements of marketing mix will
be discussed to investigate about distribution of product into different markets with following
suitable strategy. At last, different approaches of international marketing can be adopted by
Henleys to follow suitable strategy to expand in global markets.
1

LO 1
P1 Analyse the scope and key concepts of international marketing
International marketing and its scope:
Increase in scope of potential markets, it is important for brands to improve their global presence
with having whole information to expand in global markets. Reasons for awareness of such
markets are due to growth of internet, social media, advertisements, etc (Armstrong et.al. 2015).
Globalisations are also one of the main reasons that has witnessed the growth and scope of
international marketing. Economy is Dubai is one of the potential opportunities for business that
is enabling Henley to expand business. Suitable scope of international marketing includes:
 Imports: here, business will buy products from the international market and then resale it
to suitable customer base. This tends to improve the business relations from other
countries that will bring creativity in the production and supply line. This will help to
achieve the objective with the help of unique of solutions.
 Exports: Trading the products and services to another country by the same on social
media that includes abiding rules and regulations of both the home country and also
international country (Papadopoulos and Heslop, 2014). Here, Henley wants to ship
products from UK to Dubai markets.
 Contractual agreements: Business moving to international level has more extended
scope of doing more business. For international trade, business needs to make different
contracts with others. This can be either in terms of licensing and even technical
assistance. It includes agreements of trademark, patents, brand names, etc that is gaining
more presence in global markets.
 Joint venturing: Sometimes to expand in international markets, business needs to take
assistance of expanding to different markets for suitable period of time. It includes
venturing the brands with dividing the profits and losses. This will increase the expansion
value of business and framing more relations that will increase the scope of international
marketing (Samiee et.al. 2015).
Rationale to international marketing
2

Henleys need to expand business for enhancing the revenues and increase the presence among
suitable base of customers. There are different reasons for business to expand internationally that
includes:
 Reduces risk and enhances opportunities: Global markets generally reduce risk and
increase the opportunities of global market expansion. Dubai is one of the huge markets
that enhance business to attract customers. This country is one of the resourceful places
to generate revenues and business profits.
 World trade organisation has lead to open potential opportunities to trade in different
countries (Skarmeas et.al. 2016). Also internet technology trends are leading to accept
market system that includes meeting with satisfaction of the customers.
 Business with global expansion will observe effective management of resources and
gaining efficiency. Social media, Internet, cloud and mobile technology is providing
larger opportunities to reach across global barriers without facing major barriers.
Global and consumer trends
Increasing customer demands: Perception of the consumer regarding brand purchase is
increasing as it is affordable and reasonable for the consumers. But at the time of recession many
customer back out for purchase. This is one of the challenging factor but management need to
perform adequate market research before expanding into global markets. It is necessary for
Henleys to plan such strategy that will overcome people to switch towards substitutes. However,
Henleys need to increase the criteria of investment towards social media and internet.
Spreading social information: Media, social sites, news, etc are having major sort of
information about consumer and rising trends. However, Henley can be benefited with proper
customer relations and focussing on social media that will lead to provide information about the
products. Challenges are related to data protections and that need organisation to respond
towards it (Kotabe and Helsen, 2014).
Effective opportunities: Global market provides opportunities to make new relations and
improve the strategies of marketing that will develop stronger base of consumers. However,
business will also lead to improve the brand presence and will invite more and more investors to
invest in the operations of the business.
3

P2 Explain the rationale for it to want to market internationally and describe the various routes to
market the organization can adopt
Marketing plays critical role in business promotion that will help to expand internationally. It is
necessary for business to use Pest analysis as the tool for analysing the potential of Dubai
market. Some of the factors are explained below that defines the rationale to expand business
into other markets.
Political factors: Political conditions of the Dubai are not that favourable but government allows
businesses of other countries to have expansion of the business. International players of different
markets exist and they are operating well on the platform. There are slight increase in the
shopping malls and increase in the sales of branded products (Kotabe and Helsen, 2014).
Business need to analyse the regulation that are imposed by the government on other countries
brand. It is necessary for business to take the benefit of plans and policies of the government for
gaining country advantage.
Economic factors: These include the economical stability of the country which affects the
business of Henleys. Dubai has the stable economy that attracts more and more businesses. Tore
variety of fashion brands are produced to the consumers as it is in major demand. Dubai is one of
the top ten among the attractive market that is the potential place for doing the business. It has
high rate of per capita income where the people will have high purchasing power.
Social factors: Dubai is quite expensive that have different cultures but people have the
perception of consuming branded products where consumers are having the knowledge of correct
markets (Johanson and Mattsson, 2015). Youth of the market is attracted towards purchasing
new brands of clothes. However, diverse variety of culture can be challenging but effective
decision making of business will be effective to meet with demands of the customers.
4

Figure 1: Dubai retail market
(Source: propertywatch.ae, 2018)
Technological factors: Dubai being a huge market has existing retail players and strategies to
attract consumers. It is suitable for Henley to take effective advantage of online platform that
will avoid the cost and perform market research to analyse the taste and preferences. However,
actual demand can be fulfilled by meeting with adequate supply of products and services.
Routes to international market
There are different routes to international market but it depends upon the choice of the business
to choose the best for increasing sales and revenues of the business. Market research will lead
Henley to analyse about reaching the potential markets (Hafeez et.al. 2016). This includes both
direct and indirect routes that want to reach the potential markets.
Direct routes: It is necessary for Henley to keep in mind the value proposition and target
audience. It is effective to have the high cutting edge for increasing the sale of clothing for men
and women. Stakeholders are responsible for sale the goods to increase the value propositions of
the business. Moreover, public relations are the campaign that are organised and also websites
can support to attract customers and meet with expectations of the stakeholders.
Indirect routes: Henley can take support of wholesalers, retailers and high street fashion
retailers that will lead to enter into the international markets. For example, business can frame
5

contracts and agreements with the existing retailers that are leading in marker to know about the
current strategies that are adopted by businessmen’s.
Figure 2: Different routes to market
(Source: International market routes, 2018)
Opportunities and challenges to enter international markets
Opportunities:
 Global marketing opportunity have the opportunity of global market expansion that will
help in gaining effective scope of exporting, importing and exporting in foreign markets.
With this management of the business will be effective to manage the resources and
deliver optimum quality that will help in collaborative arrangements with the foreign
partners (Barnes and Lea-Greenwood, 2018). There are different strategies that can be applied that will help in establishing cost
effectively productions and also will lead to exploit the business opportunities.
International expansion will leads to observe less tax, regulations and increase the
economies for scale and scope will lead to gain more revenue and profits.
Challenges
6

 It is challenging factors for the business to handle the emerging forces and unseen
influences can be observed within the business. Business will develop new strategies of
doing the business and attract more bases of customers. It is necessary for business to
change the way of doing and plan new marketing strategies.
 Uncomfortable with the foreign cultures will lead to develop uncertainty and risky
conditions for the business (Al Faris and Soto, 2016). Internet, media,
telecommunications system need to be implemented to avoiding such risky conditions of
the business.
 Changing demands of consumers and tastes and preferences will lead business to face
risk of planning new strategies. This can be due to increase in higher competition rate in
foreign markets that can gain hinder competitive advantage.
7

LO 2
P3 evaluate the key criteria and selection process to use when considering which international
market to enter
Criteria include having the accurate choice of selection that will help in effective market to enter.
Decisions of the business are based on having the improvement in future performances along
with promotion of the business that includes:
Market demand: Dubai is structured with huge market and huge size of populations that have
high spending power that attract them towards clothing purchase (McFarlin and Sweeney, 2014).
According to the below image, retail sector has also observed positive growth in attracting more
customers and gaining suitable market share.
Figure 3: Dubai retail sales
(Source: Euro monitors international, 2018)
Performance:
8

Economy of country as a whole is stable and GPD is also continuously increasing that is
increasing the expansion of spending of consumers on clothing. Dubai is one of the growing
sectors that offer the opportunity for retail sector businesses to expand in Dubai. Moreover,
continuous rise in GDP is adequate that business will does not have to face much risk of changes
in economic conditions of the business (Gereffi and Luo, 2015).
Figure 4: Economic sector of Dubai
(Source: Dubai market share, 2018)
Current trends: Technology and businesses are one of rising trends in Dubai where the people
prefer online shopping to the greater extent. Social media and internet platform will provide
opportunity for Henley to offer attractive websites and discounts for attracting more and more
customers. Henley can attract people of Dubai towards online shopping by offering attractive
discount packages and sale for expanding internationally into different markets.
Environmental factors: Dubai has strong environmental conditions that are effective for
attracting more and more businesses (Trudgen and Freeman, 2014). Tourism footfall is also to
greater extent that will maintain stability in the business sales with having the strong marketing
strategy. Clothing have challenges due to changes in weather conditions such as winter, summer,
rainy that can cause fluctuations in demands of the customers.
Selection of international market
9

 Management of Henley need to make prior discussions to analyse the potential markets
that include country’s performance, industrial growth, consumer growth, etc. Dubai has
favourable conditions of the economy that will help Henley to expand in international
markets.
 Segmenting the market include that is one the basis of age, gender, lifestyle, income, etc.
However, these factors are kept in mind to analyse the conditions of the markets and also
trends and preferences of the consumers. Market research is needed to be performed for
proper selection of the customers (Gillespie and Riddle, 2015).
 Market screening is performed that includes having the suitable choice of target market,
suitable medium of marketing that will help to enter the market. Identification of
screening will help to gain competitive strength to enter into the international markets.
 Finalising the market will lead management of Henley to make investments and design
suitable budget for optimum utilisation of resources. Final selection of market is
dependent on entire decisions making of the Henley that will start practicing in
promotion of sales in Dubai (McFarlin and Sweeney, 2014).
P4 Explain, using examples, the different market entry strategies, including the advantages and
disadvantages of each
Following different market entry strategies will lead to have possible advantage to follow
suitable direction that will enable Henley to enter into different markets. Some of the strategies
are explained below that will help in effective market entry that includes:
Licensing:
It is the official permit or gaining permission to get entry into different markets. In the foreign
entry mode a licensor in the entry makes home country to have limit rights and resources that
will help license to export in host country. It is the planned strategy by the business that will help
business to expand into new target market and distribution of goods (Chen et.al. 2017). Suitable
advantage include it is the authorised permission to export into different markets. One of the
disadvantage include business to follow suitable permissions of restricting the amount of trade
and make relations to greater extent.
Franchising:
10

It acts as one of the market entry strategies that help business to expand business into different
markets. Here, Henley will make relations with existing retailers in Dubai market that will
purchase franchise to that organisation that allows other person to use business brand name, logo,
process, etc for expansion of the business. Franchising the business is the right way of
performing the business activities that will help in effective expansion of the business. One of the
advantages includes promotion of business and sharing hands with other people will lead to
generate more ideas and performing the business in better manner (Johnson, 2016). Disadvantage
includes failure of performances of the business into other markets can lead to impact on the
reputation of the business into different markets.
Joint ventures:
It is one of the business entities that are generally created by two or more parties. It includes
creating share ownerships, returns, risk, shared governance, etc; it is one of the market entry
strategies as business will be able to form new market relations and can enhance the business
relations with generating more investments opportunities. Henley can enter into new market
relations, specially emerging markets, to gain efficiency in scale of business and to increase the
skills and capabilities of business to enter into new markets (Ang et.al. 2015). One of the
advantage includes it will help in increasing the business efficiency and increase the effective
productivity of business. Moreover, disadvantage include business have higher amount of risk of
investments and entering into foreign markets can extent the risk of meeting with satisfaction of
the customers.
Above strategies are different methods that can enable business to enter into different markets.
Henley can consider all such strategies by proper planning and also can form partnerships with
current market leaders to have adequate information of the market in which business wants to
expand.
11

LO 3
P5 Present an overview of key arguments in global versus local debate
Henleys, is the brand which sells men and women wear which is located at Manchester, UK.
Firstly it was producing men products till 90’s after that it also started women’s wear too in
2002. Its sales growth is around 63% and ranked as 76th organization out of 100 companies
globally. Henleys has planned to set up its branch in Dubai with same products and services
which will provide customer satisfaction in the international market too.
Global strategy is the technique which covers three areas that includes multinational, global and
international strategies. These are the three techniques which will help Henleys to achieve its
objectives of expanding the business internationally (Hoppner and Griffith, 2015). The
organization has to develop its skills so that it can perform its functions into the international
market. The setting of Henley’s branch in Dubai lets the organization to perform in international
market. Organization will be able to perform internationally according to the marketing
conditions of the international market. The entry of new organization must be easy in Dubai so
that they can think of setting another branch in Dubai by properly doing market research.
Local marketing strategy will bound the services of the organizations to limited extent. Local
marketing will only focus on social media, website designing and targeting the audience which
will not let the Henleys to develop into the competitive market of the Dubai. This type of
marketing strategy will not foster high rate of growth which has been desired by the
organization. The marketing strategy is very easy and short term, which will not create any kind
of positive impact on the setting up of organization in Dubai (Sola, 2017).
12

Figure 5: Global marketing approach in international market
(Source: Maria Adriana, 2016)
Therefore, the Henleys should follow the global approach marketing which will be beneficial to
the organization in following ways:
 The global approach will help in enabling the company by leveraging the economies of
scale. The organization will be able to sell the products globally and it can buy the raw
materials into bulk which will save million dollars per year.
 The company can enjoy its launching of old products into the new international market
which will also save the money that will charge on launching activities. The new style of
clothing will be acceptable by the customers at Dubai (Lasserre, 2017).
 The organization can easily maintains the uniformity in the global market without
changing any practises which are being followed in the domestic market too for
producing the products.
 The global approach for the establishing the branch in Dubai will also help in making
new customer relationships and relationships outside political arena which will signifies
the new rules and regulations of Dubai in which the organization will take charge for
selling products.
13

P6 Investigate how product, place, promotion and price distribution approach differs in variety of
international context
Product, place, price and promotion are the 4p’s of marketing mix which are also necessary in
the international markets too. The establishment of organization in international marketing will
also require marketing research, competitors etc which are important for the organization.
Following are the 4p’s of marketing mix which are differing in the context of international
markets and they are as follows:
Product Mix – Concept of basic marketing determines selling of more and more products for
meeting the demands of target markets whereas in international markets, various factors are
being taken into consideration like religion, buying habits, personal disposable incomes, and
personal background of the consumers. Standard and customized products will be purchased by
the customers at Dubai also. The right approach for the organization will majorly depend on
strength of brand, foreign market and the product that marketing is aiming at (Huang and
Sarigöllü, 2014).
Promotion Mix – With the decisions of international products, an organization can standardize
or adopt their choice of promotional strategy for the international market. Effect of advertising
can be adopted due to political climate, regional practises, cultural attitudes and language. For
doing any kind of promotional activity proper planning and research of the international
destination where the organization has to operate the business. For completing the promotional
approach for foreign market the organization should do the PEST analysis for having better
understanding of complete market factors.
Price Mix – Defining prices of the products at international scale is very complex task. The
organization needs to consider various factors like fluctuations due to exchange rates, import
duties and tariffs, cost of transport, personal disposable incomes of target market, the economic
situation of Dubai and its influence on pricing. Internet has played very important role as
customers can view prices of products and services from all over the world (Kraus, et.al, 2016).
The pricing has been the major issues which have increased the rate of competition in the world
which reduces the operational cost of competitors.
14

Place Mix – The place element of marketing mix refers to the distribution of the product and
services to customer, at the right time and at the right place. Distribution in national markets of
UK involves proper movement of the products with the supply chain like from manufacturer to
the wholesaler and from wholesaler to the retailer and at last from retailers to consumers. In
overseas market, more parties for supplying the products have to be involved like in international
market five types of wholesalers are being included in the supply chain. The strategy of
distribution majorly depends on transportation costs and profit margins (Bahadir, et.al, 2015).
15

LO 4
P7 Analyze and explain various international approaches of international market of client
organization you have adopted
The global marketing renders many marketing strategies worldwide. Henleys organization is
ready to implement marketing strategies for expanding the growth of the organization in
international markets. The market of clothing is very wide used for shopping which has
advanced step of marketing which includes online shopping based on digital marketing.
There are various approaches of the international market which are used for the client
organization and they are as follows:
Polycentric Approach – It includes application of the marketing mix that includes appropriate
strategy for planning the products, place, promotion, price etc. which will meet the demands and
preferences of the customers in international market. Henleys will use the internet approach for
marketing its products of clothing (Jackson and Sørensen, et.al, 2016). The uniqueness of the
market can be maintained by the profitability and consumer acceptance of the product. The
major challenge of every market is the change in customer’s preferences and taste which
sometimes creates barrier in meeting with demand of the customer.
Geocentric Approach – It is method of standardized strategy of marketing which fosters global
orientation of business. It has proven very effective for the Henleys, in accessing the market at
international level which helps in increasing the sales of the business. In this approach, most of
the suitable and highly skilled persons are being hired for handling the functioning of the
organization (Vadhanavisala, 2018).
Ethnocentric Approach – In this approach, the Henleys tries the marketing of the product of the
organization in the same way it has done in domestic market. The major advantages of this
approach are make the market superior, and maintaining the equality between the foreign and
home market of the organization. There is doubt also regarding this approach of not enhancing
the growth in domestic market and may not lead in the international market.
16

Regiocentric Approach – It enhances Henleys, for planning various strategies on the basis of
culture, laws, of host country. From this approach the Henley will be able to supply its products
to neighbouring countries of the Dubai also. It helps the organization in leading into the
international markets. Various challenges are also being faced by the organization like social,
cultural, economic, political etc from which the organization has to deal for expanding their
operations of business (Shoham, 2015).
Figure 6: EPRG approach for international marketing
(Source: EPRG Framework in International Marketing, 2010)
For analyzing the market approach internationally, which are described below:
Decentralization – This is the approach in which decision and the execution of marketing
programs needs to be throwing out from the market. The services and products which the
Henleys are producing must be useful and significant to the customers so that they can be
utilized for selling purpose.
Centralization – These are the marketing decision which are created and set by the headquarters
of marketing from which the planning and executing of programs in market use to take place
(Dong, et.al, 2016). The organization must produce quality products so that customers cannot
complain about the low quality product in the market.
17

P8 Compare home and the international orientation and various ways to assess competitors, by
outlining the impact of each approach
International and Home Orientation
Home orientation of market refers to the business performance which generally calculates within
the country, where as international market the data is being applied in the foreign language
which proves to be very difficult in understanding the language by the local people. The
messages which are related to the promotional strategy are based on international marketing of
numerous culture and single national cultures which are required to be identified. The home and
international orientation will have different elements of the organizations (Ayuso and Navarrete‐
Báez, 2018). For expanding the market internationally the market applies the segmentation
process in different countries and the domestic market includes the level of performance by
analyzing the regulations and laws of the foreign country.
Assessment of Performance of International Market
The centralized approach must be used by the business for analyzing the suitable selection and
entry into market which will be based on the marketing programs that is done through planning
and after that the execution of the programs have taken place in calculating the performance of
the international market. The centralization methods will help the organization in creating
scalable process and capability of house marketing. This approach will include the following
factors for recording the performance which includes growth, economy, market size, consumers
etc for taking the decisions effectively for expanding the business into international markets
(Katsikeas, et.al, 2016). This approach will help in long term profits too as its major focus is on
selecting the best manpower for the international business.
Assessment of Competition of International Market
For analyzing the competition of the market, decentralization approach must be followed for
providing the support to the local staff and market staff of the organization. This approach is
very effective as it will help the organization in knowing the major competitors which are
present into the international market. The decentralization approach helps the organization in
identifying the major competitors which are present into the international market which are
18

actually leading the market and it will also help in knowing the current threats which are
emerging in the market for targeting the business. Local market will follow the approach of
decentralization as it is the major concern of business (Rugman and Verbeke, et.al, 2017). The
centralization approach will be used by international marketing so that various type of
performance can be handled within the market itself.
19

Conclusion
With reference to above study, it can be concluded that business can enter into international
markets will having objectives of increasing business and sales revenue. Report has illustrated
about criteria for expanding business into Dubai that will lead to expansion of the business in
several markets. International markets have adequate scope of entering into the new market with
having potential market strategy. Management of Henley will take suitable decisions regarding
identifying the target market and take decisions to enter the new market. Application of elements
of marketing mix has been evaluated that will lead to gain standardisation in international market
expansion. At last, approaches of the international marketing are evaluated for expansion of
business into new markets. With this, revenues can be earned with possible extent and presence
can be improved with effective brand awareness among the customers.
20

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