Development of Global Marketing Concept and Review of Merging BRIC Markets

This report discusses the development of the global marketing concept and reviews the emerging BRIC markets, with a focus on Brazil. It also explores the factors influencing choice of entry modes and the advantages and disadvantages of using franchise as an entry mode. The report includes a real-life example of Coca Cola and the fashion retail brand Boxfresh.

Portfolio

EXECUTIVE SUMMARY
This report is mainly based upon development of global marketing environment which is
mainly used by companies for the purpose of enhancing awareness of customers about the
products and services. Coca Cola is one of the main company which is focusing upon it as it
operates its business in more than 200 countries. BRIC is the group of four different countries
which are Brazil, Russia, India and China. If organisations are willing to expand in these nations
then it is very important for them to find the challenges and opportunities in these countries.
There are various factors which may affect the decisions of foreign market entry modes these are
economic and political conditions. It has been recommended to an organisation to make sure that
they pay attention towards advantage and disadvantage of entry modes such as franchising which
is selected by them to expand business in a new country.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
PORTFOLIO ENTRY 1: DEVELOPMENT OF THE GLOBAL MARKETING CONCEPT......1
1. Explanation of development of global marketing concept......................................................1
2. Development of global marketing concept..............................................................................1
3. Finding of one real business world example that supports this portfolio................................3
PORT FOLIO ENTRY 2: REVIEW OF MERGING BRIC MARKETS.......................................3
a. Providing back ground of chosen BRIC country.....................................................................3
b. Evaluation of political risks for the country............................................................................3
c. Discussion of trade, tariff and non trade barriers between UK and Brazil..............................4
d. review of economic environment of Brazil.............................................................................5
e. Summary of advantage and disadvantage of the company which is looking to move in Brazil
......................................................................................................................................................5
PORTFOLIO ENTRY 3: FACTORS INFLUENCING CHOICE OF ENTRY MODES...............5
1. Select real business world company and give its overview.....................................................5
2. Evaluate the factors which impact foreign market entry mode decision.................................6
PORTFOLIO ENTRY 4: ENTRY METHOD FRANCHISE.........................................................6
1. Select fashions retail and identify the market where organisation select franchise as entry
mode.............................................................................................................................................6
2. Advantage or Disadvantage of using franchise as entry mode................................................7
3. Benefits of franchise as entry method......................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Glocalisation can be defined as combination of two main terminologies – globalisation
and localisation, that states that a product is not only distributed globally but also accommodate
for local markets (Cannon and Yaprak, 2014). It refers to a practice which is conducted by
businesses on the basis of local and global business environment for the purpose of attaining
growth. Global marketing can be defined as the procedure that helps business entities to adjust
their different strategies which are focused for the purpose of promoting their products. With the
help of it enterprises can market all their products in different countries (Cannon and Yaprak,
2014). This report is also based upon this concept. It covers various topics such as development
of global marketing concept, analysis of a real life business that supports the portfolio, emerging
BRIC markets, factors which are influencing entry mode etc. along with this detailed analysis of
franchising is also covered under this project.
PORTFOLIO ENTRY 1: DEVELOPMENT OF THE GLOBAL
MARKETING CONCEPT
1. Explanation of development of global marketing concept
Global marketing is a concept that facilitates organisations to make modifications or
adjust their marketing strategy according to the conditions and situations of other countries. With
the help of it, all the products of a company could be marketed in different nations. By paying
attention towards it an organisation can meet all its global objectives such as increasing market
share.
Currently the concept of glocalisation is developing continuously because most of the
organisations are forming strategies to expand their business in different locations (Charter and
Polonsky, 2017). In order to operate in various countries it is very important for organisations to
market their products and global marketing is the most beneficial way for it.
2. Development of global marketing concept
According to Cody Pearce, all the companies are focusing in the development of their
business in different countries which is resulted in development of global marketing. It helps to
attain growth opportunities that are available in internation market (Global marketing, 2019).

According to Hollenson, global marketing is a concept which is followed by most of the
companies now a days in order to market their products in different countries. With the help of it
all of them can expand their business successfully (Concept of Global marketing, 2019).
According to Dr. Philip Kottler, global marketing is a wider concept which is more than
just selling of products in international market. It is beneficial for companies that are looking for
development at global level as it provides them opportunity to carry out operations in various
nations.

3. Finding of one real business world example that supports this portfolio
The real life business that may support the portfolio is Coca Cola. The organisation apply
glocalisation by taking local and global situations in to consideration. It is a US based company
which is operating business all around the world and generating high profits. It had started to sale
all its items in global market sine year 1919. Currently it is supplying its products in more than
200 nations (Coca cola, 2019). The organisation focusing upon global marketing development as
its mission to is to be the market leader in beverage industry. In order to market all its products in
internation market organisation is using different techniques for advertisement such as TV
commercials, online marketing etc.
PORT FOLIO ENTRY 2: REVIEW OF MERGING BRIC MARKETS
a. Providing back ground of chosen BRIC country
The country which is selected from the BRIC group is Brazil which is a part of South
America. It is considered as the largest country by area after Russia, US, China and Canada. The
currency which is used within the nation for transaction is Brazilian real and its capital is
Brasilia. 60% area of the Amazon River the 2nd longest river of the world is covered by this
nation (Overview of Brazil, 2019).
b. Evaluation of political risks for the country
In Brazil one of the main risk is related to foreign direct investment which cannot be
made by the companies in some specific industries such as stock exchanges (De Mooij, 2018).
Level of corruption in Brazil is very high which results in the higher possibility of political
tension (High level corruption in Brazil, 2019). In order to analyse all the hazards in Brazil the
below chart could be analysed:
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Illustration 1: Political risk in Brazil, 2019
(Source: Political risk in Brazil, 2019)
From the above chart it has been determined that political risk in Brazil is continuously
increasing which may affect the organisations which are planning to expand their business there
(Political risk in Brazil, 2019). It shows that in year 2018 the political risk in the country will be
around 5 which is very high as compare to Russia where it is low for foreign industries (Political
risk in Russia, 2019).
c. Discussion of trade, tariff and non trade barriers between UK and Brazil
Trade, tariff and non trade barriers are related to the factors which are required to be paid
by an organisation to operate business in another country. All the barriers between UK and
Brazil are as follows:
 The Brazilian government has banned some of the goods and the company which is
planning to expand there should focus on them (Ban on drugs in Brazil, 2019). These
trade barriers includes offensive weapon, firearms, illegal drugs etc.
 The non trade barriers are such obstacles which are imposed by the importing nation on
the country which is exporting the goods (De Mooij, 2019). In Brazil and UK these are
Unreasonable packaging, product standard, unjustified sanitary etc. (Non trade barriers
in Brazil, 2019)
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 Tariff barriers are related to tax which is paid in imports. Import duty ranges between 10
to 35% which is paid according to the nature of goods (Import duty in Brazil, 2019).
d. review of economic environment of Brazil
One of the main economic factors in Brazil is unequal distribution of income. It affects
the growth of economy because if income is not distributed equally then it is not possible for a
economy to grow. Inflation and deflation rates of the country fluctuates suddenly that leaves
impact upon the process of operating business as due to this buying power of customers gets
decreased. Another issues which is affecting economy of Brazil is unemployment which is very
high (Economic environment of Brazil, 2019). Currently it is around 12% (Unemployment rate in
Brazil, 2019).
e. Summary of advantage and disadvantage of the company which is looking to move in Brazil
Naked Wines is small sector organisation which is looking to expand its business in
Brazil in upcoming period. Advantages and disadvantages of the expansion for the company are
as follows:
 Advantage: Brazil is a developing country where companies such as Naked Wines can
attract customers by providing them good deals (Naked wines, 2019). It is good choice
for the company because here it can grow.
 Disadvantage: In order to expand business in a new location it is very important for a
company to arrange funding which is very high because expansion need money. For a
small company such as naked Wines it will be very difficult to acquire funds for its
business (Why small businesses need high funding for expansion, 2019).
PORTFOLIO ENTRY 3: FACTORS INFLUENCING CHOICE OF ENTRY
MODES
1. Select real business world company and give its overview
Naked Wines is an online store which provide variety of wines across the UK. Company
founded in 1st December 2008 by Rowan Gormley. In 2015, naked wine purchase by Majestic
Wine who is an British brick and Mortar retailer. This company follow the social network
principle which encourage customers to review or interact with other customers online. Naked
Wines won the host award which presented by the National Business Awards in the category of
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Online business (Gillespie, 2015). Currently company have more than 100 staff & around
3,00,000 customers and 100 independent wine maker in the 14 countries.
2. Evaluate the factors which impact foreign market entry mode decision
As per the foreign market entry mode scheme, there are number of factors present that
affect the same. It includes firm size and international experience as internal factors, demand
uncertainty, market size, direct and indirect barriers etc. as external factors, transaction specific,
desired mode characteristics and so on, all of which helps in determining the entry mode
decisions of a firm (Charter and Polonsky, 2017). In order to select entry mode for the
expansion of business will required various steps. So before implementation it is important for
the manager of Naked Wins to analyse market. They have to select right entry mode so initially
they have identify internal as well as external factors which can impact the business at the time
of entering in the new market. External factors are uncertainty of demand, growth or size of
market, trade or non trade barriers, difference between culture etc.
Naked Wines is Home country which is UK based so it is important for manager to
reduce gap between both culture. After analysing all the external factors manager have to build
strategy accordingly which support the decision of expanding business in the new market. Trade
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policies of every countries is different from other countries managers have to fulfil their
responsibility to identify scope for the expansion of business.
Internal factors may affect the business and it include size of firm and experience of
company to deal in the international market (Ratten, 2017). Naked Wines is very small company
so they enable to enter in foreign market because of lack in capital, proper resources and small
market share. But company can resolve their issue through borrowing from various financial
institutions. Naked Wines already expanded their business in USA or Australian country because
of variety in their wine range or effective customer service.
Manager of the company have to their past experience at the time building strategies to
enter in the international market. Because it is not for the first time so manager have to perform
effectively and try to avoid previous mistake in order to get effective results. With the help of
intense market research and identify factors which can impact will helps the manager to identify
opportunities. Along with this, manager have to analyse organizational strength as well as
weakness in order measure their capability or capacity to perform in the foreign market.
PORTFOLIO ENTRY 4: ENTRY METHOD FRANCHISE
1. Select fashions retail and identify the market where organisation select franchise as entry
mode
Boxfresh is British brand which founded in 1989 by Roger Wade. This company select
franchise as an entry mode in the Indian market. Company focus on niche market through selling
product on low cost. Boxfresh in order to expand their business in India they initially develop
strategy in order to attract or try to retain for longer period. Company offer huge range of shoes
and other fashion item through analysing Indian market (Tiago and Veríssimo, 2014). Boxfresh
select franchise method to enter in India and generate brand awareness among the people.
Organization prepare franchise agreement which already mention the terms & condition of this
exposure. Boxfresh provide them guidelines regarding how to manage cloths in the stores, their
labels, shelf etc.
2. Advantage or Disadvantage of using franchise as entry mode
Advantage:
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 Capital: With the helps of franchise as entry mode in the foreign country will provide
financial help (Advantage of Franchise, 2019). Because it will create awareness in the
market without their personal investment.
 Speed of Growth: Franchise method help the business to provide huge growth in
minimum time. It is good method to expand their business in international market
without any capital investment.
Disadvantage:
 There are no control over franchisee business because it is already mentioned in the
agreement which consist some rules & regulations (Zimmerman and Blythe, 2017).
 Company already provide instruction regarding interior of store and way of managing
shop so it is difficult for business to manage their work.
 Some times it happen than any bad action or quality of product will impact the image of
overall brand.
3. Benefits of franchise as entry method
There are various of choosing franchise as an entry mode in any country and it helps in
expanding business in the foreign country (Benefits of Franchise, 2019). Benefits will be
discussed below:
 It helps in providing additional exposure through franchise and located in various places
will increase brand awareness.
 At the time of franchising business, franchisor required initial franchise fee which paid
by the franchisee. It will be used as investment in the brand in order to promote it.
 Having franchising will provide new ideas which can be used for future expansion.
 By using franchise method as an entry mode will helps the organisation to increase their
profit margin without investing single penny.
All the above mention benefits can be enjoyed by the Boxfresh company is they choose
Indian market to expand their business and franchise as an entry mode.
CONCLUSION
From the above discussion it has been concluded that, in order to expand business
internationally company have to formulate global strategies in order to promote their product &
services in the international market. There are various factors which impact the BRICS market
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and trade between the countries. Along with this, report discuss about entry method for the
expansion of business which further provide various benefits. So most of the organizations select
franchise method as an entry mode in the foreign market. In addition, further discussed based on
the internal as well as external factors which impact the business when they try to expand in
international market.
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REFERENCES
Books & Journals
Cannon, H. M. and Yaprak, A., 2014, March. Cosmopolitan-based cross national segmentation
in global marketing simulations. In Developments in Business Simulation and
Experiential Learning: Proceedings of the Annual ABSEL conference (Vol. 28).
Charter, M. and Polonsky, M. J., 2017. Greener marketing: a global perspective on greening
marketing practice. Routledge.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
De Mooij, M., 2019. Consumer behavior and culture: Consequences for global marketing and
advertising. SAGE Publications Limited.
Gillespie, K., 2015. Global marketing. Routledge.
Ratten, V., 2017. Gender entrepreneurship and global marketing. Journal of Global Marketing.
30(3). pp.114-121.
Tiago, M. T. P. M. B. and Veríssimo, J. M. C., 2014. Digital marketing and social media: Why
bother?. Business horizons. 57(6). pp.703-708.
Zimmerman, A. and Blythe, J., 2017. Business to business marketing management: A global
perspective. Routledge.
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