Marketing Management: Background, Strategy, and Entry Mode

Running head: MARKETING MANAGEMENT
MARKETING MANAGEMENT
Name of the student
Name of the university
Author note

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Table of Contents
Part A...............................................................................................................................................2
1. Background of the organization and product selected.................................................................2
1.1 Background of River Island...................................................................................................2
1.2 Background of the selected product......................................................................................2
2. Choice of the developing country (Cambodia)............................................................................3
2.1 Demographics........................................................................................................................3
2.2 Culture...................................................................................................................................3
2.3 Nature of competition............................................................................................................4
2.4 GDP growth...........................................................................................................................4
2.5 Ease of doing business index.................................................................................................5
3. International business strategy.....................................................................................................5
4. Foreign direct investment as entry mode.....................................................................................7
5. Strategy that might be utilized by the River Island.....................................................................9
Part B: Reflection on the assignment.............................................................................................11
References......................................................................................................................................12
Appendix........................................................................................................................................15

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Part A
1. Background of the organization and product selected
1.1 Background of River Island
The concerned organization, River Island, is a high street fashion brand, which is located
in London. The organization operates in a number of worldwide markets since its establishment
in the year 1948 (Riverisland.com. 2019). The different research and development activities that
are undertaken by the organization have helped the same in maintaining the efficiency of the
product design as per the study of the market trends. It has helped the business in attracting the
attention of huge number of customers in the global markets.
The revenue that was earned by the organization was £944.5million and the operating
income of the business was around £80.6million computed in the financial year 2017
(Riverisland.com. 2019). The development of the organization in the different developing
economies has helped the same in maintaining a steady rise in its net profits since its inception.
On the other hand, the price of the proposition corresponded to the needs of most of the people,
as they are not exclusive and expensive.
1.2 Background of the selected product
The product that will be considered in the research is the Print t-Shirts of the Street
fashion apparel for men collections, which is manufactured by River Island. The specialty of the
Printed t-Shirts is that the customers might customize the contrast and color of the t-Shirts as per
their choices (Riverisland.com. 2019). The organization priced the t-Shirt for £12 only which
might be taken as the most attractive feature for gaining the attention of the customers

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(Riverisland.com. 2019). The target customers of the organization are the students and the
venture aimed at providing 10% discounts to the students, which has helped the business in
maximizing the sales volume in the developing countries (Riverisland.com. 2019).
The organization aimed at providing the customers with apparels that might be utilized
regularly. The fabric that is being used in the apparel is tough for enduring the regular wear and
tear purposes. It has helped the business in gaining the attention of the customers. On the other
hand, the wider availability of the apparels in the ordinary shops has helped the organization in
making its product range available to large amount of target customers. Therefore, the better
quality of the product offering has helped the business in gaining the attention of large number of
customers towards the product offerings while making business in the developing countries.
2. Choice of the developing country (Cambodia)
2.1 Demographics
The population of Cambodia is around 16,245,729 as computed in the year 2018. The
nation ranks 72 in global population (Sothan 2018). The yearly growth rate of the nation is
1.46% as was computed in the year 2019 (Sothan 2018). The population growth of the nation is
surpassed by the higher rate of unemployment, which has affected the capabilities of the nation
to bring forth improvements in the industrial sectors. The continuous growth of population in the
nation has affected the capabilities of the same in developing the resources while competing in
the international markets. The needs of development have enabled the Cambodians in accepting
the diverse product offerings made by the foreign firms.

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2.2 Culture
The major source of cultural inspiration in the nation is dependent on the development of
unique Khmer. The spiritual and culture development of the nation is largely dependent on the
beliefs related to Animism (Sandberg 2013). On the other hand, the basic religious beliefs of the
nation depended on the essence of Buddhism and Hinduism. The deep rooted resilience in the
Cambodian culture is mostly influenced from the Khmer culture. The developments that are
made by the Cambodians while combating the higher rate of population and the lower standard
of living has helped in stabilizing the GDP (Lee, Biglaiser and Staats 2014). On the other
hand, the positive outlook of the Cambodians will help the international organizations in making
business in Cambodia. Moreover, Lindsay, Rod and Ashill (2017) stated that there is a higher
rate of acceptability among the Cambodians which will support the initiatives of foreign
investments and market entry by the foreign companies. Therefore, the Cambodian culture will
permit the entry of the concerned organization in the markets.
2.3 Nature of competition
The market structure of Cambodia is Monopolistic Competition where a large number of
firms undertake differentiated operations as per the needs of the customers (Sothan 2018). In
this relation, the garment- manufacturing sector of the nation includes companies like Dewhirst
Garment Factory, Wai Full Garments Ltd. and Eclat Highter International Garment Co. Ltd
(Raff, Ryan and Stähler 2012). The different competitors in the Cambodian markets have
brought about changes in the proposition and the quality of the products. The monopolistic
competition structure of the nation has helped the nation in undertaking different imports from
the foreign markets. It will be helping the concerned organization in making business efficiently,
despite of all the competitions in the Cambodian markets.

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2.4 GDP growth
The GDP growth of Cambodia is projected to be slightly accelerating to 6.9% in 2018
against 6.8% in 2017 (Sothan 2017). The growth of the GDP of the nation is dependent on the
development of the textile and apparel exports. The nation undertakes 65% exports related to
textiles and apparels which has helped the nation in maintaining the efficiency of productivity as
per the concerns of expanding in the international markets (Sothan 2017). On the other hand,
the growing rate of GDP has helped in supporting the lifestyle of the people, which will b
helping the concerned organization in locating potential buyers.
2.5 Ease of doing business index
Cambodia ranked 138 in respect to the ease of doing business as per the reports published
by the World Bank (Sothan 2017). It might affect the concerned organization’s capabilities of
undertaking business in the Cambodian markets.
3. International business strategy
The organizations might employ transnational business strategy in order to address the
needs of businesses relating to international expansion (Lee, Biglaiser and Staats 2014). The
transnational business strategy combines the different aspects of the global and multi-domestic
strategies, which will be helping the organizations in attracting the attention of a huge customer
base towards the propositions. De Villa, Rajwani and Lawton (2015) stated that the
transnational business strategy would enable organizations to establish their headquarters in its
country of origin while assisting the businesses in undertaking full- scale operations in the
foreign markets. On the other hand, Laufs and Schwens (2014) noted that the transnational
strategy assists the organizations in undertaking the decisions, productions and sales in the