Global Marketing: Entry Modes and BRIC Market Analysis Report

This report provides an overview of global marketing, discussing strategies for selling products and services worldwide. It emphasizes the importance of a talented workforce and identifies Russia as a key emerging market within the BRIC nations, highlighting its media market growth. The report explores various entry methods into foreign markets, such as licensing, franchising, and joint ventures, and their impact on sales, profit, and market share. It delves into the concept of global marketing, its evolution, and the advantages of expanding business activities internationally, including cost reduction and increased customer awareness. The report analyzes the Russian market, including its political and economic environment, trade barriers, and the advantages and disadvantages for companies entering this market. It also examines factors influencing the choice of entry modes, such as government regulations, political risk, and market size. Finally, the report uses Pepe Jeans as a case study, focusing on its use of franchising as an entry mode, discussing its advantages and disadvantages, and its benefits for the company's expansion into markets like India and Russia. The conclusion summarizes the key findings and implications of the analysis.

Global Marketing

EXECUTIVE SUMMARY
In the present report, there is a discussion about global marketing that is basically selling
products as well as service in all over the world. It is essential for an organisation to have
talented workforce so that they can perform all the activities at global level.
One of the most emerging BRIC market is Russia as there are more marketing as well as
development opportunities. The global media market of Russia is increases by 6% whereas
media market of Russia is grew by 7% as compare to past years.
In addition to this, there are different methods to enter in foreign markets that is
Licensing, Franchising, Joint Venture and so on. All these entry methods helps an organisation to
enhance their level of sales as well as profit that leads to raise in market share of company.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Concept of global marketing ......................................................................................................4
TASK 2............................................................................................................................................5
Emerging BRIC markets.............................................................................................................5
TASK 3............................................................................................................................................7
Factors affecting the choice of entry mode ................................................................................7
TASK 4............................................................................................................................................7
Entry Mode .................................................................................................................................7
CONCLUSION................................................................................................................................8

INTRODUCTION
Global marketing is termed as a procedure of adjusting marketing and strategies of an
organisation in order to adapt conditions as well as policies of other countries. It is basically
selling of goods and services globally (Buccieri, Javalgi and Cavusgil, 2020). It is determined
that global marketing is a broad concept which encompasses creation, positioning as well as sale
in order to do promotion of goods and service at global level. For this, organisations conduct
market research in order to enter into foreign markets. The project shows the manner in which
organisation implement market assessment that helps in searching out a strategic location for
expansion of business activities and operations. The report involves reason for choosing a
particular country and also it discusses about the entry modes that an organisation adopts in order
to enter into other foreign markets.
TASK 1
Concept of global marketing
Global marketing is termed as a procedure of making adjustments in marketing strategies
of an association in order to adapt conditions and policies of other countries. Global marketing
helps an organisation to raise their client base, enhance sales and gain higher profits. If an
organisation is not extending their business activities at global scale, it might face domestic
competition which are expand its business globally.
According to Martin Luenendonk, 2016 it is determined that global marketing is the
procedure of planning, developing, positioning & promotion goods and service in a global
market. Global marketing help companies to improve effectiveness of goods & service along
with it also assist organisation to gain competitive advantage at marketplace. It is important for
an organisation to have strong workforce so that they can compete in the global market (Curiel,
2020). Along with this, the opinion of author is global marketing decline cost level and enhance
savings of an organisation. By emphasising on other markets an organisation can attain
economies of scale and standardize their processes.
As per the point of view of Sana Haroon, 2016, it is analysed that organisations evolving
into global markets is quite gradual. On the first phase, an entity focuses on domestic side and on
the activities which is conducted on their home markets. In the second stage, organisations still

emphasises on domestic markets but start doing exports. Moreover, at the third phase companies
seems that they require to enhance marketing overseas and thus their focus is shift towards
global marketing. At the last and fourth stage, organisation creating value by extending activities
and serve product in the worldwide market. It has been analysed by author that there is no
specific time limit of this evolution process.
According to Emily Pribanic,2018 it is determined that global marketing concept raise
customer awareness of an organisation. Internet allows customers to gain an insight about the
progress of goods and services worldwide (Galli, 2020). Development of global marketing
strategies assist an organisation to cut down cost by standardization process. Along with this,
when an entity leverage internet and social media applications in order to market their product
and service globally it reduce cost and increases profitability level of a company.
For instance, General Atlantic which is a private equity firm and established in the year
1980. The company headquarter in New York, United states and provides capital as well as
strategic support to growth companies. In order to expand globally, the company hold 40% share
of Genpact which has presence in more than 30 countries globally. By the assistance of this,
General Atlantic converts its presence from the home market to global market. Its mangers uses
various strategies, adopts social marketing tools and follow global marketing process in order to
create awareness about its services in the global market.
TASK 2
Emerging BRIC markets
Russia is a European country which is located in European Europe. In terms of land area,
it is the biggest country in the world and covers around one-eighth of Earth's land area. The
country shares borders with china, North Korea, Norway and so on. It has been analysed that the
media market of Russian is increases by 7% whereas global media market grew by 6% (Gümüş,
Geçti and Yılmaz, 2020). It is one of the most emerging market among the BRIC countries and
thus expanding marketing activities in these country is beneficial for companies in order to
generate higher profits.
Political risk of Russia: Russia is a federative, democratic and law-based state along with a
republican form of government. It has ample market and growth opportunities which is
beneficial for the investors as they get good returns after investing in this country. The political

risk in Russia is seem to be low as its government allow foreign businesses to enter into its
market along with this tax rates is low in these country which is an advantage for organisation to
save their cost and raise profitability level.
Trade, tariff and non-trade barriers among UK & Russia : UK imports more products from
Russia as compare it to exports. The common trade barrier is government subsidy to a specific
industries. Along with this, tariffs increase price of imported goods as compare to domestic
goods (Guo and Zhang, 2020). Russia only import products like machinery & equipment as it
does allow other products to be imported in the country. The government of UK is not easily
allow other organisations to enter in their market for business as they impose high trade rates to
them.
Economic environment of Russia: The economic conditions of Russia is good that affect
positively on the business which is prevailing in the country. In addition to this, the purchasing
power of people of Russia is strong and thus impact positively if companies enter in its market.
Its rank 11th in terms of GDP and 6th largest by buying power parity. The inflation rate of Russia
is 3.5% and its GDP rate is 1.6% at present.
Advantage & Disadvantage for companies to enter into Russia market:
Advantages: one of the benefit to enter in market of Russia is increase in profit level as it is
analysed that buying power of people prevailing in Russia is high and they prefer to use
innovative and new product that is coming in market. The other advantage is it increases
customer base of a company due to which companies enhance their market share level.
Disadvantages: The disadvantage for UK company if it enter is Russia market is language
barriers as well as cultural differences. The other drawback for companies is Intellectual property
Theft. Russia imposes high trade rates on exports due to which an organisation profit and
revenue is declined.
TASK 3
Factors affecting the choice of entry mode
Pepe Jeans, a casual wear jeans brand which is funded in the year 1073 in London. It has
more than 900 stores al over the world and offers high quality clothing in market which is the
reason of its success at marketplace (Kumar, 2020). The company enter into the new markets by
the mode of Franchise method which is cost effective and enhance profits of Pepe Jeans.

The factors which affect on selecting entry modes are as follows:
Government regulations: The policies as well as regulations of government has affect
on choosing entry modes as many countries is not allowed foreign marketers to enter in their
market and performing business activities.
Political risk: political instability of a country affect on selection of entry mode up to a
greater extent. Political instability might decline overall productivity as well as profitability of an
organisation.
Market size: The another factor that affect on entry mode is market size in which the
company is deciding to enter (Kotabe, 2020) (Madura, 2020). As countries with large market
size requires high investment as well as long term commitments so it is important for mangers of
an organisation to analyse market size before selecting entry method.
Along with this, there are also other factors that influence on entry modes that is
competition level, physical infrastructure, economical risk, technology and many more.
TASK 4
Entry Mode
Pepe Jeans, which is a casual and denim wear jeans brand and established in the year
1973. The company headquarter is in London and at present its presence in more than 13
countries. In order to expand its business and to enter into the new markets, the managers of
Pepe Jeans was used franchise that is an entry method. The countries where Pepe Jean is enter by
the assistance of Franchise method is India and Russia.
Advantages & Disadvantage of Franchise method:
According to Philiphe, 2018, it is determined that Franchisee involves higher rate of
success as compare to any other modes of entry. Along with this, Franchise arise less cost to
company instead of starting a new business of same type. Moreover, Franchise enhance
reputation as well as improved work practices that leads to generation of higher profits. The
disadvantage of Franchise is company need to enter into formal agreement with the franchisor
(Magalhães, 2020). Along with this, organisations need to share their profits with franchisor
which in turn decline revenue of companies. As per the point of view of Klern Mara, 2017,
Franchise help companies to acquire talented managers as they put more interest in order to run
Franchise as compare to the organisation run by employees. Along with this, it saves down the

marketing cost of an organisation as they need to implement same advertisement as well as
promotion strategy in the new market. On the other hand, the drawback of franchise is managers
have less control on activities as franchisor is managing as well as controlling all business
activities (Mogaji, Maringe and Hinson, 2020). The other disadvantage is fall in reputation of
one Franchise affect on the overall business performance of company.
According to Mark sibert, 2015, it has been analysed that Franchise entry mode increases the
customer base of an organisation due to which they can gain higher profits. Moreover, Franchise
allows an organisation to attain rapid growth as compare to another modes of entry in new
market. On the other side, managers of an organisation need to follow all the policies as well as
legislation of other countries which occurs coat to company and might reduce revenue level of an
entity. As per the view point of Adrian, 2018, it is determined that Franchise enables an
organisation to less work in building reputation of the brand. Furthermore, acquisition of
Franchise mode give a benefit of company of registered trademark. The disadvantage of
Franchise entry mode is it involves high risk as damage in reputation of Franchise declines sales
as well as profit of a company.
Benefits of franchise mode to Pepe Jeans
This method assist company to enhance the level of customer base that affect positively
on the sales as well as profit of Pepe Jeans (Osuji and Amadi, 2020). The other benefit to
company is development of high reputation in market that leads to raise in market share of
organisation in a effective manner.
CONCLUSION
From the above study, it has been analysed that global marketing plays vital role in the
development and growth of an organisation. In addition to this, there are various modes to enter
in other markets such as Licensing, Franchise, Joint Venture and so on. Among all this,
Franchise is considered as most effective method as it raises customer base level of company
which impact positively on sales and profit of an entity.

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