International Marketing Strategy

This report analyzes the market expansion strategies of Nu skin enterprise. It identifies and justifies the market entry methods that can be adapted by the company to expand its business to the Spanish market. It considers the branding strategies that can be used by the company to enter the new market. Further, the report identifies the cultural issues that exist in the Spanish market, the ways in which the company can position its products in the market place of Spain. It provides recommendations concerning the marketing mix elements. Lastly, it identifies the barriers and challenges that can be faced by the company, and concludes the assignment.

Running head: INTERNATIONAL MARKETING STRATEGY
INTERNATIONAL MARKETING STRATEGY
Student’s Name
University Name
Author note

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Executive summary
The purpose of this report is to choose a market for the business expansion of a particular
company and analyze the market suitability for the company. The selected company Nu skin
enterprise plans to expand its market operations in the selected country Span. The report has
identified and justified the market entry method for the selected company. It has analyzed the
market situation of the country and determined the branding strategies that can be implemented
by the company. It has identified the cultural issues that can be faced by the company. It
provides strategic international marketing recommendations in respect to the marketing mix
elements. Lastly, it identifies the considerations in respect to the economic barriers, the legal and
other challenges that can be faced by the company and concludes the report.

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Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................4
1) Identification and justification of market entry methods............................................................4
2. Branding strategies to enter Spanish market...............................................................................5
3. Cultural issues and other challenges............................................................................................7
4) Strategic international marketing................................................................................................9
Product strategies to be used in the international markets.......................................................9
Pricing strategies to be used in the international markets......................................................10
Promotion strategies to be used in the international markets................................................10
Distribution strategies to be used in the international markets..............................................10
5) Identification of market/economic barriers, related risks and mitigation.................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................14

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Introduction
The selected company Nu skin is considered to be one of the largest multilevel marketing
firms in the world. Nu skin enterprise was founded in the year 1984. It sells its products directly
and distributes more than 200 beauty and wellness products in the categories personal care and
nutritional supplements. It operates in various countries in and around Europe. The company
develops and distributes its beauty and well being products. It offers anti-ageing personal care
products and items along with nutritional supplements. The company operates and distributes its
products through direct selling personal channel (Ahmed, P. K., & Rafiq, M. 2013).. The
company prefers person to person selling and prefers to promote its products by direct approach.
The primary category of products offered includes core skin care items, treatment products and
other skin related products. The other range of products includes anti-ageing products and beauty
products. Further, it also offers Epoch products featuring items that are derived from botanical
ingredients and other renewable sources. It also offers beautifying products like cosmetic,
personal care and other hair care product items. Currently, the company plans to expand its
market to Spain and operate its business there (Andersson & Evers, 2015). The purpose of this
reportis to analyze the market expansion strategies of Nu skin enterprise. It identifies and
justifies the market entry methods that can be adapted by the company to expand its business to
the Spanish market. It considers the branding strategies that can be used by the company to enter
the new market. Further, the report identifies the cultural issues that exist in the Spanish market,
the ways in which the company can position its products in the market place of Spain. It provides

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recommendations concerning the marketing mix elements. Lastly, it identifies the barriers and
challenges that can be faced by the company, and concludes the assignment.
Discussion
1) Identification and justification of market entry methods
There are various ways in which the company can expand its products and services in the
foreign market. According to Bharadwaj et al., (2013), the most appropriate method of
expanding the products and service to the foreign market is direct exporting and licensing the
manufacturing unit in the foreign country. Direct exporting and indirect exporting is one of the
most used and common method for expanding the market internationally. For indirect selling, the
company needs to contact and export intermediary for the export management company who in
turn performs the various marketing expansion related functions like finding overseas buyers,
getting paid and shipping products in exchange for payment. As mentioned by Bidgoli, (2010),
the benefit of implementing indirect exporting methods is that the responsibility of the
manufacturer ends upon delivering the products to the wholesaler. The one negative aspect of
implementing an indirect exporting is that the wholesale takes the responsibility of the products
and might gain more profit margins from selling it in the international market.
However, According to Czinkota & Ronkainen, (2013), indirect selling is not convenient
for the selected company as it is a company which prefers direct selling. Therefore, for
international marketing entry it will be beneficial to implement the direct exporting approach.
The company would prefer to deal directly with the foreign customers. The direct marketing
methods require the business organization to devote much of the company’s resource. There are
few considerations for exporting the products and services in the foreign market, it includes the

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size of the company, the risks tolerance of the company, the availability of resource of the
company to develop and establish in the foreign market, the opportunity costs, the nature of the
products and services, the business conditions in the foreign market (De Mooij, 2018). These
mentioned factors are needed to be considered while expanding the products and services in the
foreign market. The company needs to implement an export plan and plan the marketing
strategies to export the product. There are various approaches for exporting the products. The
approaches of the exporting, the company will be considering direct export.
As stated by Doole & Lowe, (2008), the direct export approach is considered to be highly
ambitious and challenging because it requires high amount market research and analysis before
implementing the plan of exporting the product. The company needs to manage every aspect of
the process of exporting which includes planning and research of the foreign distribution and the
method of payment collections. This requires high amount of management’s time and attention
in order to achieve better result. Marketing research and analysis is critical for the business
organization to achieve maximum profits and initiate long term growth (Ford & Leonidou,
2013). Nu skin enterprise needs to utilize its personal website for direct selling approach; it must
also consider processing of credit cards. The company also requires direct and active
involvement by the company. Exporting directly to the foreign market leads to expected growth
in sales volume.
2. Branding strategies to enter Spanish market
As per the analysis of Spanish market, majority of the business operators such as the
distributors, agents, business operators and other government controlled entities operate in two
main hubs that is Madrid and Barcelona (Gabrielsson, Gabrielsson & Dimitratos, 2014). The

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purpose of branding strategies is to differentiate the products from the other company’s products
and services. Branding the products in highly essential in the foreign market as it is essential to
create brand awareness and identification. The branding strategy must be chosen in terms of
brand architecture. The company needs to analyze whether to implement an integrated marketing
strategy or global marketing strategy. That is applying the same branding strategy as
implemented in other markets. Therefore, decisions need to be taken by the company upon
geographic extension of brands. According to Onkvisit & Shaw, (2009), the purpose and mission
of the company needs to be considered while implementing the branding strategy. Nu skin
enterprise plans to achieve a consistent image in every country in which the products has been
expanded to. In order to implement a global branding strategy, the company must take into
consideration the economies of scale. However, As mentioned by Rosson & Ford, (2016), there
are few challenges that the company might face by implementing the global strategies. The
Spanish market might not be suitable or fit the global brand’s image thereby limiting the
applicability. Moreover, the global branding names of the product might not be applicable or
suitable for internationalization. The advertising and promotion message crafted by the company
needs to be customized so that the local customers of the country can understand. Further, the
product design and the services provided must be such that it meets to local needs, demands and
requirements of the customers (Hallbäck & Gabrielsson, 2013). This strategy needs to implement
for better marketing of product in the Spanish market.
According to Ahmed & Rafiq, (2013), the Nu skin enterprise can implement the strategy
of price differentiation policy along with different brand names. Therefore, as a strategy, brand
differentiation will limit the parallel and grey markets. Along with the price differentiation
strategy, the company can also consider implementing the mixed strategies which Nu skin

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enterprise uses in other markets. However, As stated by Andersson & Evers, (2015), the
company must use product brand names that can be adapted by the local requirements. For the
international distribution strategy, the company needs to take decisions regarding the structure of
the market and the marketing channels along with the marketing logistics. Nu skin enterprise
needs to consider the Spanish market, the characteristics of the customers and the culture,
attitude of the local people. Considering these factors, the company can determine the channel to
be used. The order handling capability of the company, the transportation system of the country,
the inventory management, storage and warehousing are the factors that are needed to be
considered while taking decisions on the international marketing logistics (Bidgoli, 2010). The
company will be implementing a direct channel for distributing the products to the customers.
3. Cultural issues and other challenges
As per research and analysis, the culture of Spanish is deep rooted to tradition. The
country is very large with diverse climate and diverse landscape. The country is divided in 50
provinces; each province has varied and diversified culture. The religions of the country are
different from one to the other (Doole & Lowe, 2008). The cultural diversity of Spain might be a
challenge for the foreign investors who are not familiar with the Spanish market. The location of
the country is exposed to various invasions in the past. As mentioned above, the country is
divided into 50 provinces, which keeps the culture of Spanish separated and independent. There
is a division of the Spanish society in small groups which further divides the culture. Therefore,
it can be said that cultural diversity within the country can be increasingly challenging and
problematic all across the country (Ford & Leonidou, 2013). There is a strong sense of
individualism in the country; this has resulted from the country’s cultural diversity. The sense of

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identity among the customers comes from various culturally diverse groups and the minority
groups. There is a sense of identity and belonging to a particular group.
It is the culture of the Spanish people to value their physical appearance, personal
qualities like personal attributes, appearance image, relationships, personal attributes and
character. This factor is an opportunity for the company as it deals with beauty and wellness
product (Huang & Sarigöllü, 2014). These personal factors are also valued by the local people as
much as the technical and professional ability, experience and competence of the person are
valued. Among all, individualism is a predominant factor in the management for performing
business in Spain. Face is also an important factor for personal pride and respect as per the
Spanish culture. They avoid the fear of losing face, it is crucial for the Spanish locals. Therefore,
it can be said that the local people do not prefer any forms of public criticism or embarrassment.
Hence, they highly avoid misunderstanding and unnecessary conflicts (Kale & Sudharshan,
2017). This is an important consideration in the business context. This fact in the Spanish culture
indicates that the company needs to focus highly on relationship building in order to protect their
business investments.
As mentioned by Hamel & Prahalad, (2017), on a business level, the business
organization values interpersonal relationship. Therefore, relationship-building is highly
important for the company. It is very time consuming to build trust and confidence among the
customers however, upon gaining trust and confidence the company will be able to build long
term profitable business. This strongly indicates that the business organization make effort to
gain trust and confidence of the local Spanish customers and indicate that they value the
relationship-building as much as the local people. As per the analysis, it can be said that the local
Spanish people are also cautious about new ideas and business relationships (Hallbäck &

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Gabrielsson, 2013). The locals prefer being familiar with the new products brands or ideas before
taking an action. Therefore the business must have patience and avoid ambiguity.
4) Strategic international marketing
The international marketing mix requires the usage of various different marketing
instruments in order to achieve desired results of the company. By proper integration and usage
of the marketing instruments viz. Product, price, place and promotion. For the international
marketing mix the company needs to consider the socio economic culture, the legal aspects of
the country of expansion and other economic consideration (Lee & Carter, 2011). Nu skin
enterprise consider using the a hybrid marketing mix strategy, this includes standardization of the
products and services offered by the company and the marketing instruments while adjusting and
customizing the products as per the needs and demands of the local customers to make the
products and services suitable for the Spanish market conditions that is the customs, traditions
and regulations of the company.
Product strategies to be used in the international markets
The products offered by the company needs to be adapted by the Spanish market to meet
the needs and requirements of the local customers. This requires the product’s characteristics and
properties to be adjusted to the prevailing culture of the country. It has been analyzed that the
Spanish locals highly values personal values and personal attributes of people, hence, the beauty
products and well being products will be highly suitable for the Spanish market. These offered
products will be high utility for the local customers. The Spanish locals considers are highly
quality conscious hence the company needs to focus on the product variety, maintains the
quality, design, characteristics, local brand name and others. The packaging of the products, size

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and symbols requires much attention by the management. Product adaptation also requires high
level of adaption (Onkvisit & Shaw, 2009).
Pricing strategies to be used in the international markets
The company needs to change the pricing policies in order to survive in the international
markets. It needs to introduce separate pricing policy as there are differences in the wealth,
culture and competition prevailing in the Spanish market. The pricing techniques of the company
play an important role especially when the company plans on penetrating the international
market and for business expansion. The company might face various challenges like inflation,
export price escalation; licensing and these factors need to be considered while deciding the
pricing policies (Lee & Carter, 2011). It might consider the value based pricing, which involves
assessing the customer needs, determining the costs and delivering the product.
Promotion strategies to be used in the international markets
Promotion implies communicating the desired message to the target audience. The
advertising and the message crafted by the company must match with the culture of the country.
The advertising itself creates a culture which influences the advertisements. The culture of the
country must impact the advertising, especially in Spain which is a culturally-sensitive. The next
step from promoting the product is setting a budget for the advertising. The company can choose
a standardized approach (Kale & Sudharshan, 2017). The advantage is that it can achieve
economies of scale which reduces the cost and helps to maintain the image of the brand.
However, there are cultural differences which can be challenges for the company.
Distribution strategies to be used in the international markets

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Distribution of the products implies that the fourth ‘P’ in the marketing mix. The process
of distribution deals with handling of product and distributing it to the customers (De Mooij,
2018). There are various distribution strategies; Nu skin enterprise will be adopting a direct
marketing strategy. Implementing a direct distribution strategy will help the company to
maintain and build relationship with the customers.
5) Identification of market/economic barriers, related risks and mitigation
As per the research and analysis, it has been analyzed that the country has suffered a
stagnant economy in the past 10 years. There has been economic recession. However, in the
recent years the country is showing progress in the economy. There are high unemployment rates
and high debts faced by the country (Ford & Leonidou, 2013). Therefore, Nu skin enterprise
needs careful analysis and research before entering the market. However, there is abundant
availability of resources and labour. Hence investment and operation cost will be minimized.
Despite the economic conditions, the country has a suitable climate and has a geographical
location that is suitable for the business expansion. The poor economic condition can be treating
to the company and might be risky for the company (Kale & Sudharshan, 2017). Concerning the
socio-cultural factor of the country, Spain has a diversified and varied culture for which the
company can face risks. However, by customizing the products and product adaptation that
company can gain the trust and confidence of the local customers. It is the culture of the Spanish
people, to value personal attributes and attitudes of the people along with the technical skills and
capabilities. Therefore, Nu skin enterprise can take advantage to the market situation (Lee &
Carter, 2011).

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The legal environment of the country is the same as that of the other European countries.
The country has a strict legal environment especially for the business enterprises. It has strict
data protection laws as well as copyright laws (Hallbäck & Gabrielsson, 2013). As per analysis,
the country is highly bureaucratic, which implies there are might be some amount of political
disturbances. This might be a cause of risks for the company while investing in the country.
There are various laws and regulations concerning the utilization of natural resources, climate
change and pollution. The Spanish locals are highly concerned about the environment and there
are strict regulations to the pollution generated by the industries and the companies and disposal
of waste. However, the country has a rich and varied culture, the country is progressing in the
field of technology and environment (Hamel & Prahalad, 2017). Bureaucracy might increase the
paperwork and legal involvement of the business enterprise.
Conclusion
Therefore, from the above analysis, it can be concluded that Nu skin enterprise can use a
direct exporting for entering the Spanish market. From the analysis, it has been identified that
implementing a direct exporting method will be beneficial for the company. The resources of the
company need to be allocated efficiency for the success of the market expansion. This approach
requires the business organization to be highly ambitious and encounter various challenges. The
steps required of business expansion must be implemented effectively. The market expansion
and entering in the foreign market requires high level of involvement by the management of the
company. The branding strategies have been determined for entering the Spanish market. It
requires a price differentiation strategy and product adaptation needs to be considered as per the
local needs, demands and expectations of the customers. Further, the reporthas identified the

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cultural issues and other challenges that might be faced by the company upon expanding the
business operations in the Spanish market. It has been identified that the culture of the country is
deeply rooted to tradition and there is diverse culture in the Spanish economy. This can be highly
challenging for the company to adjust itself to the varied culture of Spain. By direct distribution
channel the company can take the advantage of building relationship with the customers, this
would help the company to built trust and confidence among the people. The local people of
Spain are extremely cautious about the new product or new idea in the market. Hence they
require time to adapt to the new product and therefore, the business organization needs to be
highly patient and gain the trust and confidence of the customers. Further, the reporthas
discussed about the strategic international marketing mix. It has also identified the economic
barriers and other risks that can be faced by the company.

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