Implications of International Marketing Strategy for Kickerco Company
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This report discusses the implications of international marketing strategy for Kickerco Company, including the risks and benefits, operational considerations, technology and communication, legal implications, and key insights from Apple Inc.
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Marketing International Marketing 21 FEBRUARY 2019 Student’s Name: _____________
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INTERNATIONAL MARKETING1 KICKERCO COMPANY Formal Brief A brief of implications of the proposed international marketing strategy for the company Kickerco has been presented as follows. Some of the significant arguments that justify the case of international marketing for the company are the protection against the economic downturns, market expansion, enhanced brand reputation, increased competitive advantage, and large base of consumers among others(Morgan, Feng and Whitler, 2018). However, these are in addition to certain risks. The country risk, statutory risks, political risks, pricing risk, financial, exchange rate and interest risk are the key issues faced in international marketing scenario. The same can be countered by the formulation of an effective marketing strategy on the pillars of research and resources of the entity. In addition, a financial feasibility report must be drafted together with the cost analysis, considering the effects of wages, transport, transfer pricing, anti-dumping laws, inflation rates and other incidental factors (Gillespie and Riddle, 2015). In order to explore the opportunities internationally, the first step that must be taken is to conduct a research with respect to key areas such as the long-run household and business penetration rate, consumer’s preferences, nature and market share of competitors. In addition, an analysis of the cultural and demographical background is vital. Some of the methods that can be adopted by the company Kickerco to expand trade internationally are the direct exporting, franchising, licensing, joint ventures, partnership, or acquisition of a local company. The pros, cons and requirements of each of the means are required to be carefully analysed.
INTERNATIONAL MARKETING2 KICKERCO COMPANY Report Over the years, the global boundary less world has led to a number of opportunities and challenges for the entities. The following report is aimed to aid the senior management of the company Kickerco, in developing an international marketing plan. The report is divided into sections, to enable the managers to gain a better understanding of key areas involved. Features of International Markets A number of distinctive characteristics together constitute the international markets. The first key feature is the geographical specialisation leading to the separation of the producers and the customers. While every country is specialised in certain natural resources and incidental services, there lies an opportunity to take the trade further beyond a region, to new customers. While the producers and buyers are geographically separated, long chains of middlemen comprised of indent houses, foreign exchange banks, clearing and forwarding agent in relation to export and import are an essential part of the international trade (Morschett, Schramm-Klein and Zentes, 2015). Another key feature is the existence of international competition and International rules and regulations. There is an intense competition in terms of quality, design, advertisement, cost, packing and other elements (Kotler, Burton, Deans, Brown and Armstrong, 2015). The same must be within the framework of reporting and compliance requirements of the international statues and the local statutes of the destination country. Inaddition,someotherfeatureofinternationalmarketsarethemutuallyacceptable currencies, role of the government, technology, logistics facilities, value and volume of trade, and likewise. Operational Considerations of International Market Strategy The first operational consideration is to choose the mode of entry in the international market and the budget for the same. The decision should be based upon the strategic importance, competition, strengths of local resources, and the level of regulations and deregulations in the country. The choice of mode of entry is significant for the risk, return and control. The next set of operational consideration is based on the environment of the company. The factors like the political stability, ease of doing trade, population dynamics such as GDP, inflation rate, unemployment rate; social and cultural practices, demographical trends, health
INTERNATIONAL MARKETING3 and environmental considerations must be evaluated. These must be in addition to the technological and regulatory environment. The last stage is to develop a marketing strategy taking into account the above mentioned factors and the size and nature of demand of the products of the company. The marketing strategy is deciding the products to be offered, at a particular price, together with its distribution and promotion aspects. The entity can choose to develop new products or modify the existing ones. The price level must be decided taking into factors like compared to competitors, geographical and exchange rate margins, terms of sale and payment. Technology and Communication In addition to the above considerations, it is significant to note thata pure global strategy will not be suitable for the company work without taking the local taste into consideration while designingthemarketingcampaign.TheentityKickercomustdevelopamarketing communication strategy based on the concept of “Glocalization.” The concept calls for the consideration of the wide range of variables such as local culture, regional practices, ethics, local beliefs and language issues while designing the marketing campaign.It is significant for the company Kickerco to integrate the marketing information of the destination country into their marketing information systems such as the features of the demographics, taboos in the culture, level of education and awareness, lifestyle preferences and others. The social media would play a phenomenal role in branding and promotion of product, and communication withstakeholders on the lines of Glocalization (Mathews, Bianchi, Perks, Healy and Wickramasekera, 2016). Legal Implications Some of the key legal and statutory requirements that must be complied with by the company Kickerco in the destination country, in the event of international trade are listed as follows. The primary laws are the company laws, employment laws, intellectual property laws, transfer pricing requirements, money laundering and counterfeiting requirements and others (Zentes, Swoboda and Schramm-Klein, 2013). Some of the key procedures are the availing of the import export codes, data security, and management of disputes and sales contracts. Key insights from international marketing strategy of Apple Inc. Some of the key take away from the strategy of global giant Apple Inc. are listed as follows. The company has maintained a consistent brand over the year in terms of luxury phones, and
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INTERNATIONAL MARKETING4 gadgets, and the same is most unique feature of the products of the entity. The brand has made an effective use of the local resources, and has provided a consistent consumer experience on the lines of glocalization.In addition, the company has devised customised content for its consumers on its social media platforms. Lastly, the company has taken into account the needs and aspirations of the various stakeholders including the government, suppliers, investors and others.
INTERNATIONAL MARKETING5 References Gillespie, K. and Riddle, L. (2015)Global marketing. UK: Routledge. Kotler, P., Burton, S., Deans, K., Brown, L. and Armstrong, G. (2015)Marketing. Australia: Pearson Higher Education AU. Mathews, S., Bianchi, C., Perks, K. J., Healy, M. and Wickramasekera, R. (2016) Internet marketing capabilities and international market growth.International Business Review, 25(4), pp. 820-830. Morgan, N. A., Feng, H. and Whitler, K. A. (2018) Marketing capabilities in international marketing.Journal of International Marketing,26(1), pp. 61-95. Morschett, D., Schramm-Klein, H. and Zentes, J. (2015)Strategic international management. UK: Springer. Zentes, J., Swoboda, B. and Schramm-Klein, H. (2013)Internationales marketing. Vahlen.