Global Marketing Report: Evaluating Global Market Expansion

This report provides a comprehensive analysis of global marketing concepts, focusing on market entry modes and international expansion strategies. The report begins by defining global marketing and discussing its development, supported by academic sources, with the example of IKEA's global expansion. The report then evaluates the political risks associated with entering the Indian market and discusses trade barriers between the UK and India. Furthermore, it summarizes the advantages and disadvantages for a UK firm moving into a new market. The report then examines a real-world business, Topshop, and analyzes factors affecting foreign market entry mode decisions, including market size, competition, and available resources. The report also suggests Porter's diamond model to aid in the selection of the best entry mode. Finally, it discusses Topshop's use of franchising as an entry mode, listing the markets where it has been used, and outlining the advantages and disadvantages of this method. The report concludes by highlighting the benefits of the franchise entry method for Topshop.

GLOBAL MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
Description on development of global marketing concept..........................................................1
Discuss development of global marketing concept with use of academic sources. ....................1
Provide example that supports portfolio entry.............................................................................1
TASK 2 ...........................................................................................................................................2
Background of chosen Brick country..........................................................................................2
Description on evaluation of political risk for chosen country....................................................2
Discussion on trade, tariff and non trade barriers between UK and chosen country Brick. .......2
Summarise the advantages and disadvantage for UK firm to move into new market.................3
TASK 3............................................................................................................................................3
Company of real business world..................................................................................................3
Factors that affect foreign market entry mode decision & model that can help the company to
chose the right entry mode...........................................................................................................4
TASK 4............................................................................................................................................5
Fashion retailer that uses franchise..............................................................................................5
List of markets that has been chosen by Top shop to use franchise............................................5
Advantages and disadvantages of franchise entry method..........................................................5
Benefits of franchise entry method for Topshop.........................................................................6
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Global marketing defined as process that inclusive of planning, producing, placing and
promotion of product and services. It is crucial for firms that offers product and services that
have universal demand (Agarwal and Wu, 2018). Thus, preset report is based on global
marketing that is relate to expansion of product and service into another market.
Henceforth, assignment will cover activities as to develop global marketing concepts,
components that affects on the selection of the entry mode within new market. Lastly report will
lay emphasise on entry method that aids to have international expansion.
TASK 1
Description on development of global marketing concept.
Global marketing concepts aids to business in many ways. This allows customer at world
wide level to be better informed and more focused on product and service that offer by firm.
However, creation of global branding and marketing strategies aids entity to adapt, change and
provides services that can full fill customer demands. Henceforth, beneficial aspect of this
concept are as-
 It tends to improvise economies of scale in production and distribution.
 This enhance power and scope.
 It leads to have lower marketing cost.
Discuss development of global marketing concept with use of academic sources.
As per the view of McDaniel and Gates, (2019) stated that global marketing is crucial for
firms that provide product or services to adapt to the conditions of other countries. In contrary to
stated that Graham, (2019) global marketing defined as to sell the product and services of the
enterprise at the international level. Therefore, it is inclusive of process as to plan, produce, place
and promote commodities at the world-wide level. Henceforth, De Mooij, (2018) stated out that
international trade aids to enhance the business functions by reaching potential clients within the
market. In contrary to McDaniel and Gates, (2019) stated that globalization is mainly for
growing interdependences that are coming together in context of global economy and to make
international trade much easier. However, globalization allows to have free movement of goods,
services and people across the world in seamless mode.
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Provide example that supports portfolio entry.
The global expansion aids to have competitive advantage to the enterprise. For example-
IKEA is Swedish founded multinational group that works as to design and sell ready to assemble
furniture, home accessories, kitchen appliances etc. Furthermore, IKEA has taken initiatives to
expand their working in Serbia, South Korea, China, India etc. It is main driving force to offer
trendy functional commodities and determine strategic position to enhance key performance
indicators. Therefore, strategic global outsourcing of commodity manufacturing enables Quoted
enterprise to effectively reduce the price of commodities.
TASK 2
Background of chosen Brick country.
The global expansion can be conducted in grouping acronym referring to the countries
like Brazil, India, China and Russia. Henceforth, internationalization will be conducted in India.
Therefore, Indian subcontinent is the site of civilization as ancient in the world (Andersson,
Evers and Gliga, 2018). As per the research, the economic situation of India GDP growth is
expected to speed up to 7.6 per cent in 2019-20 from an estimated 7.4 per cent in the current
fiscal ending March 2019. Henceforth, the growth rate has been declined to 7.4 per cent a year
later. This is one of the seventh largest country by area. Thus, expansion of the product and
services will be beneficial in order to gain competitive advantage by internationalization of
commodities.
Description on evaluation of political risk for chosen country.
Business foundation suggests foreign firms and investment guarantors on evaluation and
management. India is having the strong political condition (Kasemsap, 2018). Therefore, by
expansion of business within the boundaries of will be beneficial as it impacts investor,
consumer confidence etc. Recently, foreign investors has identified that there is no control over
the external events as this can adversely affect the commercial viability of their investment and
future expansion within India. These developments are inclusive of-
 Slow down in legal decision due to political instability.
 Adverse changes or unpredictability on foreign investment.
 To have fluctuation in inflation, interest and currency rates.
 The unexpected delays and cost overruns happened due to overlapping jurisdictions of
legal authorities (Gupta, Gupta and Gupta, 2019).
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Henceforth, the political risk is kind of Macroeconomic issue such as high interest rate, civil
unrest and social issues. Legal authority actions like confiscating the company assets make this
all typical to acquire financing and this can also affect the ability of firm supply chain to support
the product activity. Therefore, it can be mitigated with proper actions as are-
 By managing the credit risk.
 Legal authorities' inability to honor its financial obligation that can quickly spread to
private sector.
 To ensure supply chain that can withstand unplanned disruptions.
Discussion on trade, tariff and non trade barriers between UK and chosen country Brick.
The UK has no specific trade or investment barriers. There are no restriction on the
transfer of capital or reparation of profits. Furthermore, free trade agreements leads to have
reduction in tariff barriers. Additionally, Non tariff barriers can impact the all forms of goods
and services ( Özsomer, 2019 Sahu, 2018). Henceforth, few barriers that are exists within the UK
are almost key attribute to the UK implementation of EU directives and regulations. Henceforth,
it has been identifies that United Kingdom has no significant trade investment and has no
restriction on the transfer of the capital.
Within India, the most common non-tariff barriers is the restriction on imports that
maintained with the help of importing licensing requirements. Additionally, India has also
eliminated its import licensing necessities for the consumer commodities, certain products face
licensing that relate to trade barriers. There are certain commodities that are subjected to licence
relates with the trade barriers. Hence, one of the most common trade barrier is related with
prohibition or the restriction on the imports through licencing requirements. Therefore, barrier to
trade is a government-imposed restraint on the flow of international goods or services.
Summarize the advantages and disadvantage for UK firm to move into new market.
Globalization termed out as interaction of one economy with all the other economies in
the world. Henceforth, this can be related with terms of financial transactions, trade, production
and education etc. Additionally, it led to enhance market competition by having fluctuation in the
prices of commodities (Asseraf, Lages and Shoham, 2019). Therefore, advantages and
disadvantage for UK firm to move into market of new market of India defined in following
manner as are-
 Enhance employment- It leads to enhance the employment opportunities.
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 Greater investment- This allows to have creation of an environment for flow of capital
and to make investment in the other countries.
 Technical adaption- It allows to have free flow of technical advancement from one
country to another.
 Improve quality- With the help of global expansion, the quality of the commodities can
be improved and this also leads to have reduction in the cultural barriers.
Disadvantage-
 Balance of payments- The international expansion can also enhance the imports than
increment in exports that leads to increase trade deficit and balance of payment problem.
 Redistribution of power- Global marketing paves the way for redistribution of economic
power at the national level and this can also lead to have domination by economically
powerful nations over the poor countries.
TASK 3
Company of real business world
Top shop is a British multinational retailer that is well-known for its unique stylish
fashion clothing, accessories, make up & shoe. Top shop retailer belongs to Arcadia group that is
also known as its franchisor. Arcadia do not only have Top shop but also consists other retail
outlets like Dorothy Perkins, miss Selfridge etc. With the help of franchising entry mode,
Topshop is now focusing on expanding its business to new dynamic markets as it has strength
that its offers variety of products at affordable prices (Ali and Akter, 2018).
Factors that affect foreign market entry mode decision & model that can help the company to
chose the right entry mode
There are several methods of entering in international market such as joint ventures,
direct export, franchise, strategic acquisitions etc. different modes have some strengths and
weaknesses and it becomes difficult for companies to decide the best and appropriate method of
entering in international market. There are several factors that affect foreign market entry mode
decision which includes:
Market size: It is called one of the main factor for those companies who wants to expand
their business in international market and want to made foreign entry mode decision. Companies
who have larger market size like Arcadia and its all franchisee, they require selecting the entry
mode who can give long term commitment.
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Level of competition: It is external factor that can have impact on selection foreign
market entry mode. For responding effectively to competitors and being in a competition it is
important for Arcadia and Topshop fashion retailer to analyse this factor while selecting entry
mode.
Availability of company resources: For entering in foreign market, it is essential for
Top shop fashion retailer to have enough human and financial resources. Selection of entry mode
is depends on this factor as some entry modes have several advantages but are costly (Tulung,
2017).
Model for choosing the best entry mode:
For choosing the right entry mode there are some factors which should keep in the mind
like location advantage, ownership advantage, internationalization advantages etc. With the help
of Porter's diamond model, Topshop can decide and select the best foreign market entry mode on
the type and size of their business. It helps companies to understand that why certain industries
within a particular nation are competitive internationally, while others might not. It also shown
importances and benefits of market entry modes which can be appropriate for companies. It
mainly shows location advantages as in which country and location, an organization wants to
expand its business. So, it can be said that Diamond model is the best used model when
analysing foreign direct investment decision (Porter-diamond-model, 2018).
TASK 4
Fashion retailer that uses franchise
Topshop is a British multinational private retailing company (Zhang, 2018). Headquarter
of this retailer is in London, UK. It offers higher quality of clothing, shoes & accessories and it is
a part of Arcadia group. It is stated that it has around 510 shops including franchised.
Approximate 300 shops of this retailer in UK and offer services to the people of around
37 countries. For entering in international market it uses franchise mode. It is owned by Arcadia
group (Franchiser of Topshop, 2018).
List of markets that has been chosen by Top shop to use franchise
According to the market analysis franchising entry strategy is being used by Top shop
due to the unique market that this retailer is aiming. It is stated that Arcadia group accomplished
its goals to conquer the global fashion market with Topshop. It is also identified that a well-
known British fashion retailer has opened its first flagship store in China in Shanghai.
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Franchising business of Topshop to explore the Chinese market. It is also looking for its
expansion in Mexico, South Korea and South Africa. There are approximately 450 Top shop
stores across the UK (Lists of market chosen by Topshop, 2016).
It has also revealed its multi channels expansion plans in China of its partnership with
Shangpin.com. It has 5 shops in Japan. It is also reported that Topshop is going to open 5 more
stores in US. It opened and expanded its business as a franchise in New Zealand.
Advantages and disadvantages of franchise entry method
There are several advantages and disadvantages for those companies who want to make a
strong presence in an overseas market with having minimal risk (Mussina, Anarbay and Nurgali,
2018).
Advantages:
Franchise has lower cost than others entry modes as there is no requirements of investing
much money (Weaven and et.al., 2018). Franchisee company can expand their business into
several regions without investing as they do not require to invest in research, marketing because
of having a strong image in the market. It does not require investment in promotional and
advertisement as business use a recognized brand name (Hoffman, Munemo and Watson, 2016).
Disadvantages:
In the type of franchisee entry mode, there is a less control as business and franchisee can
not make changes without running into disagreement and they have to take permission of their
franchiser and follow all rules.(Bobek and et.al., 2019)
Legal actions are costly as compared to others entry modes because in this type,
franchiser have some control and they take main and important decisions.
Benefits of franchise entry method for Topshop
Top shop started planning for international expansion to the United State. It also
announced 5 year international expansion plans to open new shops across Australia, Asia etc.
There are several benefits of franchise for Top Shop fashion retauiler as it made its business and
expand it rapidly by using franchise entry mode (Bobek and et.al., 2019).
Arcadia is an established brand & franchisor of Top shop and by using its recognized
brand name, Top shop attracted wider range of customers and increase bnumber of its stores in
UK. Top Shop alo new different and attractive techniques & trade secrets of brand.
Franchisor of this fashion retailer also invested in training & assistance, so it does not require
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investing in, Hence it increases its sales by decreasing overall cost.
CONCLUSION
From the above study it has been summarized that global marketing played a vital role
for those products that are in universal demand. The selected company used some strategies for
global marketing development. It has also shown about political risks which are being faced by
BRIC countries. It has several factors that influence foreign market entry mode decision along
with model that helped the company to chose the best and appropriate entry mode. Further this
study has shown the importance of franchise as the best suitable entry mode for the selected
fashion retailer company.
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REFERENCES
Books and journals
Agarwal, J. and Wu, T., 2018. Emerging Issues in Global Marketing. Springer.
Ali, M.J. and Akter, S., 2018. Human Resource Management (HRM) Practices: A Case Study on
Arcadia Group, UK. Global Journal of Management And Business Research.
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internationalisation in China. Qualitative Market Research: An International Journal.
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Asseraf, Y., Lages, L.F. and Shoham, A., 2019. Assessing the drivers and impact of international
marketing agility. International Marketing Review. 36(2). pp.289-315.
Bobek, V. and et.al., 2019. INTERNATIONAL FRANCHISING IN THE FASHION
INDUSTRY-THE FRANCHISEE AND FRANCHISE STORE MANAGERS
PERSPECTIVE. Ekonomska misao i praksa. (1). pp.359-379.
Bobek, V. and et.al., 2019. INTERNATIONAL FRANCHISING IN THE FASHION
INDUSTRY-THE FRANCHISEE AND FRANCHISE STORE MANAGERS
PERSPECTIVE. Ekonomska misao i praksa. (1). pp.359-379.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
Graham, P., 2019. Stuart Rubin, Global Marketing Manager. In Music, Management, Marketing,
and Law. Springer, Cham.
Gupta, D.K., Gupta, B.M. and Gupta, R., 2019. Global library marketing research. Library
Management.
Hoffman, R.C., Munemo, J. and Watson, S., 2016. International franchise expansion: the role of
institutions and transaction costs. Journal of International Management. 22(2). pp.101-114.
Kasemsap, K., 2018. The roles of corporate marketing strategies and brand management in the
global retail industry. In Digital Marketing and Consumer Engagement: Concepts,
Methodologies, Tools, and Applications. IGI Global.
McDaniel, C. and Gates, R., 2013. Marketing research. Singapore.
Mussina, K.P., Anarbay, A.M. and Nurgali, A.N., 2018. THE ESSENCE, CONTENT AND
ROLE OF FRANCHISING IN MODERN ECONOMICS. In ДОСТИЖЕНИЯ
ВУЗОВСКОЙ НАУКИ 2018 (pp. 163-166).
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Özsomer, A., 2019. Some recent influences on global consumer culture. International Marketing
Review.
Sahu, M.P.R., 2018. Impact of Global Economic Crisis on India and the ASEAN
Countries. NOLEGEIN-Journal of Global Marketing. pp.12-20.
Tulung, J.E., 2017. Resource Availability and Firm’s International Strategy as Key Determinants
Of Entry Mode Choice. Jurnal Aplikasi Manajemen. 15(1). pp.160-168.
Weaven, S. and et.al., 2018. Predicting organizational form choice from pre-entry characteristics
of franchisees. Australasian Marketing Journal (AMJ). 26(1). pp.49-58.
Zhang, H., 2018. Evoking presence in vlogging: A case study of UK beauty blogger Zoe
Sugg. First Monday. 23(1).
Online
Porter-diamond-model 2018. [ONLINE]. Available through: <https://www.business-to-
you.com/porter-diamond-model/>
Lists of market chosen by Topshop. 2016. [ONLINE]. Available through: <https://www.just-
style.com/news/topshop-reveals-china-expansion-plans_id129589.aspx>
Franchiser of Topshop. 2018. [ONLINE]. Available through:
<https://www.theguardian.com/business/2018/aug/09/arcadia-parts-company-with-
chinese-franchise-partner-shangpin>
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