International Marketing Strategies of Armani in New Zealand: Report

This report examines the international marketing strategies employed by Armani, focusing on its operations in New Zealand. It analyzes various market entry strategies such as exporting, franchising, and joint ventures, assessing their tradeoffs and risks. The report delves into Armani's marketing mix strategies, including product development, pricing, place (distribution), and promotion, highlighting how these elements are adapted for the target market. It explores how Armani caters to different customer segments, manages pricing to maintain brand image while targeting broader markets, establishes retail presence, and leverages promotional activities, including celebrity endorsements and social media. The report concludes by summarizing Armani's approach to international marketing, emphasizing the importance of market entry strategies and the strategic use of the marketing mix to achieve success in the global business environment.

Running head: INTERNATIONAL MARKETING
International marketing
Name of student
Name of University
Author note

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Table of Contents
Introduction......................................................................................................................................3
Purpose and scope of the report.......................................................................................................3
Suitable market entry strategy including tradeoffs and risks...........................................................3
Relevant marketing mix strategies...................................................................................................5
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

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Introduction
The report revolves around the various aspects of managing
international business by Armani and how it has established its position within the global
business environment of New Zealand with ease and effectiveness. The market entry strategy
will help in developing proper plans for managing the delivery of products and services to a
targeted market segment and distribute those properly too. The import and export activities can
help the organization to develop as well as manage contracts within a foreign country and ensure
successful business functioning too (armani.com, 2017).
Purpose and scope of the report
The purpose of developing this report is to analyse how the fashion brand named Armani
has managed to operate in the global business environment of New Zealand. To become
successful in the global business environment, an appropriate marketing strategy should be
chosen such as exporting, franchising, joint venture, relationship based entry, etc (Berthon et al.,
2012).
Suitable market entry strategy including tradeoffs and risks
There are various effective market entry strategies including exporting, franchising, joint
venture and relationship based entry that can be used by Armani to sustain within the
international business environment. Direct exporting activities could help the company to sell the
products and services directly in the market by utilizing a vast amount of resources. Armani has
developed a sales program for the distributors and wholesalers by representing those in the

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market as well as consider them as major agents to manage product distribution and selling
within the foreign country (Czinkota & Ronkainen, 2013).
Franchising allows for rapid market expansion by transferring the business models into
another market segment in some other country. It works as an effective market entry strategy
when the company has a string brand image and name to survive in the competitive business
environment in New Zealand.
The joint ventures could enable to form partnership between the two companies or
individuals and manage coordination to work as an unit. The losses and profits gained would be
shared equally between the two companies. Armani can export the products and services
delivered and even get involved in the processes of manufacturing, distribution and export of
fabrics that are needed for both shirting and suiting purposes (Helm & Gritsch, 2014). The new
technologies essential for improving quality of clothing products are projectile, airjet, rapier
looms, etc. that are used by Armani to weave the fabric items and provide a better quality
product. This will not only suit the service users but can also keep their needs and preferences
fulfilled (armani.com, 2012).
The exporting activities are managed through utilization of the most recent machinery
including calendar machine, kd machine, comfit machine and formula machine that can enhance
the quality of products and services and ensure that the high level of demands of customers in the
different market segments are fulfilled. Direct selling and indirect selling are major methods of
exporting (Kuo et al., 2012). To manage indirect selling, the export intermediary manages its
roles by identifying the customers in the overseas market of New Zealand and check out proper
ways of shipping products. The wholesaler is responsible for gaining possession of the products

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and even obtains better profit through obtaining knowledge and expertise by selling products of
Armani in the foreign market. The risk of surviving in the international market is huge and so
There could be risks related to the trading activities and so the domestic buyers must assume the
risks and then handle the exporting details properly (Laufs & Schwens, 2014). Exporting has
enabled Armani to enter new market by exporting directly through intermediaries to become
aware of the foreign competition, market opportunities and new technologies implemented. This
could facilitate the ways of managing e-commerce website and sell products online by shipping
those in the foreign countries with convenience. While exporting directly, Armani has developed
contracts to increase its sales and increase the customer base (Meissner, 2012).
Relevant marketing mix strategies
The marketing mix strategies implemented by Armani has helped in targeting the
consumers in the foreign market and even cater to the segment consisting of customers who
cannot afford the signature line. The company has targeted the young customers’ segments and
provides them with modern and innovative designs that can be applicable for the target
customers.
Products
Giorgio Armani has developed its products by providing some identifiable features in
their designs and even increased the product line through introduction of wide range of apparel
consisting of signature Armani suits. The targeted segments of customers are mainly between the
age of 35 to 50. To survive in the competitive business environment of New Zealand, the
company has focused on the lower market segment by introducing Armani Collezioni and
fulfilled the requirements of lower market segments (Terpstra, Foley & Sarathy, 2012). Modern

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designs are created to cater the needs of young targeted consumer while the jeans collection also
could be a major trend among the girls and women in New Zealand. This would make them
experience both luxurious and fashionable line of apparel after making purchases from Armani.
Price
Armani has created a good brand image and name amongst the elite members of the
society but in order to sustain in the global business environment, it would be essential to
manage production of products for both the elite class and normal people of New Zealand. The
price levels are different for introducing new products and services in the market and ensure
successful market expansion. The Collezioni brand items are priced properly, i.e., 20 percent
lower compared to the premium segment products to targeting the lower segments of customers
(Zhou, Wu & Barnes, 2012). Armani’s Prive Line also is an essential segment of fashion and
clothing that can be available at competitive process and this can influence the buying behaviors
of consumers too.
Place
Armani has its stores all around the world and during the management of international
business, the company must establish a chain of retail outlets in New Zealand to serve many
customers and make them know about the brand supremacy. The wide range of accessories,
apparels available could help Armani to showcase its customers and make the, feel the benefits
of deluxe fashion. Armani has made proper strategic plans to develop a retail network of more
than 15 stores in New Zealand and enhance the numbers of customers and sales revenue. The
products of Armani should be made available online and even allow the customers to check the

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products, apply those to an on-screen model and evaluate the shades prior to purchase
(armani.com, 2017).
Promotion
Armani‘s promotional strategies are exceptional, because the company has not only
involved celebrities to endorse the brand products. Social media involvement could also be
beneficial for the company to make more people aware of the new products delivered and
influence their buying behavior too. The celebrities wore the dresses and could do ramp walks to
highlight the excellence in Armani products and influence customers of New Zealand to try those
(Berthon et al., 2012).
Conclusion
The topic focused on the international marketing consisting of how the business
organization Armani managed to operate in the foreign market, i.e., New Zealand. As an
effective market entry strategy, the exporting activities should be used by Armani to enter the
new market segments and attract more customers. Armani has filled orders from the domestic
purchasers who are responsible for exporting the products. Armani has identified the domestic
purchasers who can represent the foreign customers and this would help in attracting huge
numbers of customers. The marketing mix strategies had helped in determining the major
products including suits and apparel items along with the prices set for those and promotions
done to ensure successful business functioning within the global business environment.

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References
armani.com (2017). Armani | Official Online Store |. Retrieved 31 October 2017, from
https://www.armani.com
Berthon, P. R., Pitt, L. F., Plangger, K., & Shapiro, D. (2012). Marketing meets Web 2.0, social
media, and creative consumers: Implications for international marketing
strategy. Business horizons, 55(3), 261-271.
Czinkota, M. R., & Ronkainen, I. A. (2013). International marketing. Cengage Learning.
Helm, R., & Gritsch, S. (2014). Examining the influence of uncertainty on marketing mix
strategy elements in emerging business to business export-markets. International
Business Review, 23(2), 418-428.
Kuo, A., Kao, M. S., Chang, Y. C., & Chiu, C. F. (2012). The influence of international
experience on entry mode choice: Difference between family and non-family
firms. European Management Journal, 30(3), 248-263.
Laufs, K., & Schwens, C. (2014). Foreign market entry mode choice of small and medium-sized
enterprises: A systematic review and future research agenda. International Business
Review, 23(6), 1109-1126.
Meissner, H. G. (2012). Strategic international marketing. Springer Science & Business Media.

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Terpstra, V., Foley, J., & Sarathy, R. (2012). International marketing. Naper Press.
Zhou, L., Wu, A., & Barnes, B. R. (2012). The effects of early internationalization on
performance outcomes in young international ventures: the mediating role of marketing
capabilities. Journal of International Marketing, 20(4), 25-45.