International Marketing: A Comprehensive Analysis of House of Fraser's Expansion Strategy

This report delves into the intricacies of international marketing, focusing on House of Fraser's strategic expansion plans. It examines the scope and key concepts of international marketing, evaluates entry strategies for various international markets, and analyzes the global versus local debate in marketing mix adaptation. The report also explores different international marketing approaches and provides recommendations for structuring the organization to maximize opportunities in a global context.

International marketing
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Table of Contents
Introduction......................................................................................................................................4
LO1 Demonstrate an understanding of how marketing contributes to business strategies in an
international context........................................................................................................................6
P1 Analyse the scope and key concepts of international marketing............................................6
P2 Using your chosen client organisation, explain the rationale for it to want to market
internationally and describe the various routes to market the organisation can adopt................8
M1 you should evaluate the opportunities and challenges that marketing internationally
presents to your chosen client organisation...............................................................................10
LO2: Evaluate entry to a selection of international markets and define the key success factors. .11
P3 Using your client organisation, evaluate the key criteria and selection process to use when
considering which international market to enter.......................................................................11
P4 Explain, using examples, the different market entry strategies, including the advantages
and disadvantages of each.........................................................................................................12
M2, you apply the market evaluation criteria and entry strategies, and make recommendations
for your chosen client organisation............................................................................................14
D1, you should produce a critical evaluation of the international market context, including
insight into how your chosen client organisation should adapt their marketing strategies for
various markets..........................................................................................................................15
LO3 Investigate how elements of the marketing plan can be adapted or standardised across
international markets.....................................................................................................................16
P5 Using your client organization, present an overview of the key arguments in the global
versus local debate.....................................................................................................................16
2

P6 the management team of your client organization would like you to investigate how the
product, price, pricing and promotional distribution approach differs in a variety of
international contexts.................................................................................................................17
M3 you should evaluate the context and circumstances in which your client organization
should adopt a global or local approach, highlighting the implications of doing so.................18
M4 you should determine and articulate in detail how to adapt the marketing mix of your
client organization in different international markets................................................................19
D2 you should produce a critical evaluation of how the marketing mix is applied to a range of
international contexts.................................................................................................................20
LO4 Demonstrate an understanding of how to organise and evaluate international marketing
efforts (multinational, global, transnational, meta-national, etc.)..................................................21
P7 Explain and analyse the various international marketing approaches your client
organisation can adopt...............................................................................................................21
P8 Compare home and international orientation and ways to assess competitors, outlining the
implications of each approach...................................................................................................23
M5 Evaluate various marketing approaches and competitor analysis in relation to an
organization and make recommendations on how they should operate in an international
context........................................................................................................................................24
D3 Make recommendations on how organisations should be structured to maximize the
opportunity in an international context......................................................................................25
Conclusion.....................................................................................................................................26
References......................................................................................................................................27
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Introduction
In this report, it discusses the various aspects of International marketing. The House of Fraser
wants to expands their business and develop their market so they emphasis on the aspects of
international marketing. They focus and develop on the different plans and strategies to expand
their business. It is fragmented in to four parts. The first part analyses the scope and concepts and
also the different routes of market. The second part evaluates the selection process with different
strategies. The third part evaluates the various elements of marketing plan and provides the
arguments of local and global market. The fourth part helps to understand the different efforts of
marketing in global, Transnational, global etc. It also provides the recommendations that help to
maximise the share of market.
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Overview of the organisation
Concept of international marketing:
It is an important concept which involves the aplication of various forms of marketing principles
on the strategic and global level. House of Frasee should develop this concept to diversify its
activites in the other areas.
House of Fraser is the UK based company that serves and offers the wide variety of serices and
products such as Homeware products, Accessories, clothing , cosmetics. etc. It expands their
business around the Ireland and United kingdom. It isthe multi-channel business that has to
invest in large number of activities to achieve the goal.
Mission- The main aim of house of Fraser is to manage the environmental factors and that is
responsible for the communities and maintains the sustainable growth.
Vision-The vision of house of Fraser is to make shopping for brands and realise the experience
through worldwide.
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LO1 Demonstrate an understanding of how marketing contributes to business strategies in
an international context.
P1 Analyse the scope and key concepts of international marketing
International marketing is also called as global marketing which earned a large scope in today’s
business world. House of Fraser deals in products of fashion clothing, boots and shoes,
accessories, cosmetics, electrical, home ware, furniture etc. The company intends to expand the
business internationally in Australia, India, USA, China, Mexico etc.
Scope of international marketing:
Imports: importing of goods to increase the high quality goods from different countries by the
House of Fraser in all articles. The company imports the goods for resale them to the customers
who required such goods and services. Most of the time company imports products for their self-
use improving and creation their own manufacturing line.
Exports: Companies export the product and goods to international market and their own
franchises where company sell the goods in local market to generate more revenue. Both the
exports and imports support in expansion the business (Papadopoulos and Heslop, 2014).
Joint venturing: This is a combined organisation of two different brands for a prescribed time
period. This is used when companies intends to expand the business in international marketing to
receiving the advanced technology, resources, etc.
Contract manufacturing: This is most used strategy because it reduces the production cost of
the company takes the responsibility of collecting and arranging the products. This process cut
down the risk and price to encouraging the easy exit (Armstrong, et. al., 2015).
Key concept on international marketing:
The objective of international marketing is to publicity the value and significance that
differentiate between two international and national environment and way in which House of
Fraser control the implementation and formulation of marketing policies in different foreign
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markets. It develops together with the experience of organisational and philosophical
developments with particular peculiarities. It is divided into three phases such as:
 Foreign business orientation
 Leadership to sale in different foreign markets
 International marketing orientation
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P2 Using your chosen client organisation, explain the rationale for it to want to market
internationally and describe the various routes to market the organisation can adopt.
House of Fraser has objective to expand the business in international market for more
development and growth of the business for increasing the revenue. There are several routes
which may be adopted by company which are as follows:
Strategic Alliance: It describes a complete series of various relationships among companies that
market internationally, For example, shared manufacturing, research and developments
arrangements, marketing agreements and distribution alliances etc. It is a non-equity based
agreements which companies remain separate and independent.
Internet: This is a new channel which is used by many small and large organisations. The e
marketing includes new internet business companies that emerged with the technique of internet.
Existing companies are also the part of complete marketing plan that employs the marketing
approaches in business. This is the additional channel which increases or replaces the old
channel of marketing. It also gives the opportunity for a new online company (Samiee, et. al.,
2015).
Exporting: There are two kinds of strategies direct and indirect to exporting the various
countries. Direct exporting is very simple and company makes a promise to overseas market on
its own behalf. It provides a large control over overseas operations and brand above indirect
exporting. Some examples of indirect exporting covers:
 The management of export houses that works as a secure on export authority for the
company. It offers a complete level of la carte services to exporting organisations
(Morschett, et. al., 2015
 Consortia are the groups of medium and small organisations that work together with the
market and supplies related or unrelated goods and products in international markets.
Overseas manufacture: A company can decide that no options are supportive as overseas
manufacturing plant that is the business invests machinery, labour, plant in the global market. It
is also called foreign direct investment. It is a new inovative build, and the company can take
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over the present business which has more comfortable plants. The key importance is that the
business of company becomes restricted, manufacturing such products which are demanded by
customers.
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M1 evaluate the opportunities and challenges that marketing internationally presents to
your chosen client organisation.
House of Fraser deals in fashion clothing, cosmetics, furniture, accessories, boots and shoes etc,
so company faced several opportunities and challenges. The opportunities are importance for the
business organisation.International marketing plays an important role in expanding the target
market, which helps in enhancing the brand as marketing and positioning of the firm’s products.
It helps in getting linked with the world and connects large number of customers (Samiee, et. al.,
2015). It plays an active role in opening the doors for growth of future in different markets and
different customer of various countries. The cultural diversity of different countries is extreme
challenge, the different nature of marketing environment, changing nature and behaviour of
customers, mind-set and perception towards foreigners, problem in selection of the promotion
tools, different market forces various markets, problem in facing the different nature of markets
at the same time.
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LO2: Evaluate entry to a selection of international markets and define the key success
factors
P3 Using your client organisation, evaluate the key criteria and selection process to use
when considering which international market to enter.
House of Fraser wants to extend their business and transactions, for this they require the large
amount of finance and revenue to develop their share of market. House of Fraser is small
company with 56stores and sells the products of fashion clothing, Accessories, Home ware etc.
They want to expand internationally for this they have to make transactions and contract with the
Indian market. There are various factors that are recognised by the organisation to enter in to
international market these are:
o Electronic money transfer:In this the money can be transferred from one bank account to
other either with single monetary institutions and severalinstitution through the system of
computer, the bank do not play any role. It is necessary for the house of Fraser to monitor
the online transfer so that they can easily transfer the funds across the world.
o Internet:Internet plays a significant role in the marketing. It is a global market that
provides the wide variety of information and communication that includes the unified
networks with the communication protocol. To expand the business, it is necessary for
house of Fraser to have the understanding of plans and strategies and receive the other
information through internet (Armstrong, et. al., 2015).
o Allocation of resources: Resources play a vital role in the organisation, without these no
organisation can work in effective manner. It is necessary for the House of Fraser to use
effective and efficient use of resources so that they can expand easily in Indian markets.
o Cost of communication: Communication skills should be used in effective manner. This
skill helps the managers and staff to communicate better in the organisation that leads to
the attainment of goal.
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P4 Explain, using examples, the different market entry strategies, including the advantages
and disadvantages of each.
Market entry strategy is the planner process of transferring the services and goods to new target
market and distribute. In case of importing and exporting services it denotes the managing and
establishing the agreements in foreign country. House of Fraser adopts the different strategies
such as licensing, franchising, joint venturing etc.
Licensing:It is the arrangement in which firms transfers the rights to use the services and
product to another firm. It can be issued for the production and marketing activity.
Advantages:
 A license contract provides the enterprise access to technical advances.
 It provides the opportunity to house of Fraser to form the new services and products.
Disadvantages:
 The licensee made commitment for technology which is not prepared to exploit.
 It creates the dependence of technology on supplier who does not renew the agreement of
license.
Franchising:This strategy is used by the house of Fraser to expand their business. It is a system
of marketing that creates the image in the mind of customers about the services and products of
the company.
Advantages:
 Franchisees are the cost effective expansion which means it does not spends more capital
and funds.
 It acquires the experts’ managers to run the organisation so that they can easily handle the
issues(Sharma and Gautam, 2018).
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Disadvantages:
 Franchises are monitored and controlled by the laws and regulations so it is complex for
the managers to follow their own method.
 It requires the more time and cost in the development of marketing activities.
Joint ventures: It is the business entity that can be formed by two or more parties and shares the
equal risks and governance.
Advantages:
 They can access to new markets easily as they collaborate with other entity.
 They can improve their technology and resources by engaging the other foreign partner.
Disadvantages:
 It is the complex process as their aims and objectives are different so that creates the
problem in achieving the goal.
 There is difference in the style and culture of business that leads to dissatisfaction and
poor co-operation.
For example, if House of Frasercombines with other country that provides them opportunity and
strength and these will leads to expansion of business.
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M2, you apply the market evaluation criteria and entry strategies, and make
recommendations for your chosen client organisation
House of Fraser adopts different strategies that help to enter internationally. Licensing is the
contract in which business transfers their title to share the services and products to another
business. Franchising is the strategy to expand the market. It grants the companies and
individuals to use the name and produce to sell the products and services. They also follow the
concept of joint venture in which two companies collaborate with each other and share the
governance and risks. By this strategy they can easily access to the resources and technology that
leads to the goal of company. If house of Fraser all this strategies they can understand the
technology and skills of different firms.
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D1, you should produce a critical evaluation of the international market context, including
insight into how your chosen client organisation should adapt their marketing strategies
for various markets
House of Fraser has objective to expand the business in different countries for the growth and
development of business at large scale. Company may adopt one of the best methods for the
development and it is of internet, direct and indirect exporting method for products. It increases
the business in China, India, Mexico, Australia and different countries. Before selecting the
method and strategy company have to analyse the coming opportunities and challenges present
in such methods of international marketing (Skarmeas, et. al., 2016). Internet is the best method
by which company can advertises its products by online method. There are several challenges
are present in the organisation and environment related to international marketing so overlook
them and try to reduce such challenges.
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LO3 Investigate how elements of the marketing plan can be adapted or standardised across
international markets.
P5 Using your client organization, present an overview of the key arguments in the global
versus local debate
Domestic marketing International marketing
 Domestic market operates in the
single country.
 It is the marketing that is followed
within the geographical boundaries
of the nation.
 They can share or use the limited
technology.
 Domestic marketing caters a small
area as it operates in the limited
area.
 Domestic market is less risky and
easy to conduct the business.
 In case of domestic marketing there
arefewer requirements of finance
and funds to operate the activities of
business.
 It includes the small number of
consumers.
 Domestic marketing requires the
knowledge of research to know the
concept of marketing.
 International marketing operates in
more than one country.
 It is the marketing that followed outside
the geographical area and it consist the
activities such as promotion,
production, distribution etc.
 They can share or use the latest
technology in organisation.
 International marketing caters the large
area as it operates in world-wide area.
 It is more difficult and complex process
and incurs more risky.
 In case of international marketing they
need more funds and finance to operate
the activities.
 It consists of large number of
customers.
 International marketing requires deep
knowledge of research to understand
the concept of foreign markets(Key
differences, 2015).
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Figure: Marketing
Source:key differences, 2015.
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P6 the management team of your client organization would like you to investigate how the
product, price, pricing and promotional distribution approach differs in a variety of
international contexts
Marketing is the concept of management that is used to form, satisfy and keeps the customers
satisfy. Marketing mix is the set of marketing tools that can be used by the business enterprise to
pursue the objectives of marketing. It consists of product, price, promotion and place.
Pricing: Pricing plays an important role in the marketing. It defines as the amount of money
which house of Fraser charges against their services and products and in return the customers
have to pay the amount for that particular services and product. It includes the profit margin ,
seasonal pricing , retail price etc. It enables the organisation to make the decision in relation to
pricing strategy, price setting etc.
Product: It denotes to the services and products, which was offered by House of Fraser to sale in
the market. Product includes the design, name and quality. It also includes the packaging of the
goods and services. For example, House of Fraser sells the products of clothing, Accessories,
Furniture, gifts etc. With the product the organisation can take decisions in relation to labelling
and packaging, design of product, returns etc.
Place:Marketing is all about the receiving the products to customers. It should be situated in
proper place so that every customer can easily access that place. For example, House of Fraser
offers their products to Europe and it has around 59 stores to serve their services and products. It
is the retail industry that provides all kinds of products.
Promotion: To develop and expand their business in foreign market, House of Fraser has to
promote their services through different means. It consist advertising, personal selling, sales
promotion etc. Promotion denotes to the activities which communicate the features, advantages
and attributes of the product and persuade targeted customers to purchase it. It helps to make
decisions in relation to advertising, media and sales promotion(Leonidou, et. al., 2018).
19

Figure: Marketing mix
Source:chanimal.com, 2017
20

M3 you should evaluate the context and circumstances in which your client organization
should adopt a global or local approach, highlighting the implications of doing so.
It is to be recognised that the House of Fraser adopts and follows the global approach to
international marketing. As if they follow the global approach then there will be high rate of
volatility in domestic and global market. House of Fraser is the retail shop and serves the large
variety of products such as home ware, clothing, accessories etc. So it is essential, for them to
know the tastes and preferences of the customer. To expand their market they have to follow the
strategies of international marketing and adopt the licensing, joint venture, franchising etc.
21

M4 you should determine and articulate in detail how to adapt the marketing mix of your
client organization in different international markets
Marketing mix is adopted by the House of Fraser as it serves and offers the wide variety of
products. It adopts the elements of marketing mix that is product, price, product and promotion.
House of Fraser has to expand their business internationally for they have to understand the
concept of marketing mix as these elements helps to achieve the goal of organisation. They have
to decide the pricing system of products that consists of different factors such as rates,
transportation cost, and expenses in packing the products. They have to determine the better
place that helps the customers to buy the products easily. Product should be reliable and it should
have some consideration and value. Promotion helps to promote activities of organisation by
advertising, sales promotion etc (Ando, 2018).
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D2 you should produce a critical evaluation of how the marketing mix is applied to a range
of international contexts
Marketing mix is used to develop the effective strategy of marketing. It is the element of
marketing plan that is place, product, price and promotion. International marketing follows the
tool of marketing mix to develop and expand business to the greater extent. Price is the sum that
is paid by the customers for the particular product. This element creates the impact on the
strategy f marketing and that influences the supply and demand of the product. Product is
created or formed to satisfy the needs and wants of customers, it produced according to the tastes
and preferences of customers. Product should be available at proper place so that every customer
can easily access. To expand that product they have to promote it by various means (Nishida and
Remer, 2018).
23

LO4 Demonstrate an understanding of how to organise and evaluate international
marketing efforts (multinational, global, transnational, meta-national, etc.).
P7 Explain and analyse the various international marketing approaches your client
organisation can adopt
The international marketing has the various marketing approaches which help in making the
better marketing and advertisement of the organisation's product. As the house of Fraser deals in
the retail sector which provides the fashion clothing, shoes & boots, and all the other accessories,
electrical products to its customers (Venkatesh, 2017).House of Fraser wants to spread their
business in the international market too. As the organisation wants to enhance their business in
the international market they need to follow the different marketing approaches. The different
approaches are –
Commodity approach – Commodity approaches mainly focus on the product of the
organisation. In this approaches the main factor is the commodity. Because the product is the
main component of every organization and due to that they are known by the customers.
Institutional approaches - This approach provides the study regarding the different strategies
and plans to the middlemen, wholesalers, retailers, importers and the exporters of the
organisation. This approaches emphasis on understanding and the analyses of the functions of the
organisation.
Functional approaches –this approach helps to understand the various functions of the
marketing (Pencarelli, 2017). The main concentrations of this approach are given to specialized
services and functions of the marketer. As the marketers are the important elements of the
international marketing.
Management approaches - Management approaches is newly introduced in the market. This
approach is very scientific as this focus on the decision making of the different levels of the
organization.
System approach - This can be explained by the set of objectives which provides the
relationship between the different attributes. System approach mainly focus on the interrelation
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and the interconnection of the different activities of the marketing. System approach provides the
connection between the internal and the external factors of the business organisation which helps
in providing better marketing plans to the organisation.
House of Fraser use the commodity approaches to extend their business in the international
market. Because they deal with the various segments of the products which helps them to deal
with the different type of the product and needs to show their product effectively and properly to
achieve the goal of the organisation.
25

P8 Compare home and international orientation and ways to assess competitors, outlining
the implications of each approach
The main objective of the executive is to identify the needs and wants of the customers and
evaluates their expectations in the market orientation. On the other hand, in international
marketing orientation it is supposed that all the clients have the similar needs and expectations.
But in the international orientation there are dissimilar expectations and experiences of the
customers and they moderate according to the different levels.
It can be observed that the marketer adopts the behavioural approach in which they has to put
emphasis on the home orientation and it can be recognised that the organisation has the same
preferences, tastes andtrends. So for this there are various strategies that help the organisation to
differentiate with other services and products. House of Fraser develops and form the product by
understanding the taste and preferences of the customers The home orientation adopts the
different approaches that are given below:
Ethnocentric Polycentric Regiocentric Geocentric
This approach is
adopted by the home
country and it
emphasis on the
expansion of
domestic strategy
that is followed at the
international level.
This approach is
based on the culture
which includes the
plans and policies
and that can adopt to
fulfil the needs of the
clients.
House of Fraser
adopts the various
strategies of
marketing for the
different countries.
The approach divides
the segments of
market on the local
culture. It is suitable
for the localisation as
well as the
standardisation.
This approach is
based on the fact that
the whole market is
recognised as the
unified market and
according to that
operations are carried
out (He, et. al.,
2018).
26

M5 Evaluate various marketing approaches and competitor analysis in relation to an
organization and make recommendations on how they should operate in an international
context.
In international marketing, there are several types of marketing approaches available to market
the products of the business organisation. Proper marketing approaches need to be analyses
when an organisation wants to enhance their business and wants to advertise their product on the
market. International marketing requires marketing and developing the different strategies to
increase the sales and profit of the organisation (Miah, 2018).There are some recommendations
are require to be analysed to properly use the various strategies and plans-
 The organisation needs to maintain both local and international area to work as per the
marketing specific plans and different approaches.
 While doing international marketing House of Fraser needs to take the proper patents and
trademark which helps to provide the safeguard to the product of the organisation.
 To attain the proper and desired objective of the organisation management needs to
analyze the strengths and weakness of both own and their competitors of the organisation.
27

D3 Make recommendations on how organisations should be structured to maximize the
opportunity in an international context
To expands the market and internationalise the operations of the business. It can be evaluated
that the organisation should adopt that approach and strategy that is best suited to him. The
structure of house of Fraser should be flexible so that it can adopt the strategies and approaches
easily. If there is complex situation which was faced by the organisation and there is fluctuation
in the process of business the company will perform effectively by adopting the approaches. It is
necessary for the organisation to adopt the Structure that is compatible and suitable with the
nature. To expand the business, it is necessary for them to divide the structure so that each
department can function properly. By adopting the particular structure, it allows the company to
cover the larger area and it helps in the production and marketing activity (Shin, et. al., 2018).
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Conclusion
The above analysis determines that the international marketing plays a crucial role in the
country. House of Fraser is the retail industry that offers the wide variety range of products and
services such as in clothing, cosmetics, accessories etc. It has 59 stores across the country. It
adopts the different market strategies to expand their business and provides the services. It also
adopts the element of marketing mix that helps to analyse the structure of product, price place an
promotion. To generate more revenue they have adopted the joint venture, franchising, licensing
etc. They also evaluate the concept of domestic and international marketing and adopt the one to
expand their business.
29

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