Global Marketing Report: Entry Strategies, BRICS, and Market Review

This report provides a comprehensive overview of global marketing, focusing on strategies for international expansion. It explores the development of global marketing concepts, emphasizing the adaptation of marketing strategies to diverse international environments. The report analyzes the BRICS nations (Brazil, Russia, India, China) as emerging markets, examining trade relationships, political risks, and economic factors influencing market entry. It delves into various entry modes, including licensing, franchising, and joint ventures, and discusses factors influencing the choice of these methods, using examples like Zara and Benetton. The report highlights the advantages and disadvantages of franchising, illustrating its application in different markets and offering valuable insights for businesses seeking global growth and market penetration strategies.

Global Marketing

Executive Summary:
From above report it can be said that global marketing concept is very helpful for
organisations in expanding themselves to different parts of world. It is a used as a strategy by
adoption of various entry modes to enter into countries such as joint ventures, franchising etc. all
this are very helpful in entering a new country and establishing with new culture and structures.
Global marketing concept is related with the purpose of creating a new customer base
across different parts of world. This is very helpful in addition of a customers that can help in
increasing brand awareness and attracting new customers in the organisation.
There are various entry methods that can be used by organisations for entering in new
countries that are licensing, franchising. Various factors are considered before choosing a
particular method such as availability of resources, cost associated, political factors of a country
etc.

Table of Contents
INTRODUCTION...........................................................................................................................5
TASK 1............................................................................................................................................5
Development of Global marketing Concept...............................................................................5
TASK 2 ...........................................................................................................................................6
Review of BRICS........................................................................................................................6
TASK 3............................................................................................................................................8
Factors posing influence in choice of various entry modes........................................................8
TASK 4............................................................................................................................................9
Entry methods used by Companies.............................................................................................9
CONCLUSION..............................................................................................................................11
REEFRNCES.................................................................................................................................12

INTRODUCTION
Global marketing is a concept that is related with overall process of how various
marketing strategies have to be adjusted by a company according to conditions prevailing in
other countries. Global marketing is far broader concept then just selling of products in the
global market. It involves various activities such as planning, creating a position and final
promotion of products in the global market (De Mooij, 2018). The present report is based on
production of a comprehensive portfolio that is answering various questions such as development
of concept of global marketing, review of emerging market in BRIC, there is discussion of
different factors that posses influence on entry mode and franchise as a entry mode used by
retailers is discussed.
TASK 1
Development of Global marketing Concept
According to Martin (Luenendonk, M., 2016), Global marketing concept is a process that
is sued for adjusting of various marketing strategies for a company to adapt according to
environmental conditions present in other countries. With the development of global marketing
concept a organisation can improve overall effectiveness of their product or service.
With the help of view points of (Inbound marketing best practises and insights, 2020),
with the advantage of digital world it has helped in removal of barriers & has lead to companies
focussing on adoption of marketing strategies that are more unified. Marketers are looking for
ways to expand and reach to new customer base. There are basically some steps that can be used
in this regard such as know your market in this there is a need for developing an understanding
of overall environment where a organisation has to world. Each part of world has different
behaviour and norms that has to be adopted while entering a new country. Next step is
development of a marketing plan where there must be use of present marketing strategies that
have to be further expanded and modified according to cultural and structures that are present in
another country. Then there must be customization of approaches of marketing according to
environment of new country. Last step is related with localizing of the message for global
audiences.
According to (Kasemsap, , 2018) Global marketing is a marketing that is taking place
across different parts of the world. There are various operational differences and opportunity that

have to be fulfilled by business organisations to meet their overall objectives. When a firm is
selling their products across globe then it is a part of global marketing.
For example Nike is a brand which is evolving its global presence by selection of various
international sponsorships like they have related long standing relationship with brands such as
Manchester United. They have also bale to successfully created a base of global audience.
Another similar strategy is Nike's NikeID co-creation platform that is serving as another
profitable strategy for this organisation in appealing to various international markets. By
providing the power of design to their consumers Nike is a brand that has a competitive
advantage of providing products by aligning with various cultural preferences & styles.
TASK 2
Review of BRICS
BRIC is a acronym of various developing countries such as Brazil, Russia, India &
China. These countries are believed that they will be future dominant suppliers of various
manufactured services, goods & raw materials by the year 2050. China & India are predicted to
become dominant suppliers of manufactured services and goods.
UK & India posses bilateral relationships of trade it is sign of healthy relations between
these two countries (Kotabe, ., 2020). Both these countries are important trading partners as and
policy changes in these countries may lead to increase in domestic growth & consumption.
Political risks are related to risk that are connected with returns of investment that can
occur because of political changes and instability of a country. Instability of a country is posing a
impact on overall returns of investment from Changing governments, foreign policy makers and
legislative bodies. Political risks is also sometimes related with “Geopolitical risks” and is a
factor of time horizon for investment. In India there are chances of various political risks usch as
risk of conflicts in Iraq, Pakistan. There have been rising issues of corruption and structural
conflict that is present between capitalism erupts and democracy. After 1991, Indian economy is
moving at one direction that is becoming more transparent it has lead to become worlds fifth
largest economy.

The overall tariff rates in India is 48.5 percent according to latest data of WTO and
average applied tariff is 13.8 percent. Such rates have lead to movement of people and goods &
services that has resulted in boost in bilateral trade agreements. Trade policies after 1991 have
been very liberal policies. There have been some challenges such economic slowdown, increase
of protectionism can posses a impact on overall trade policies in India. The U.K. India trade
relationships have declined in early decades after 1947 (Zaveri, and Amin, ., 2019). U.K has
been accounted as third merchandise of imports and exports. There is a requirement of long term
planning for UK companies willing to establish in India.
Economy of UK is regarded as a developing economy. It is one of fifth largest economies
of world according to nominal GDP and is third largest according to Purchasing power parity.
Since 1947, there have been promotion of economic policies with state intervention &
regulations. In year 1991 there has been adoption of broad liberalization of policies by India.
Since year 2014 to 2018 India is amongst the fastest growing economics of world and its has
surpasses china also. The growth prospective of Indian economy is positive because of low ratio
of dependency and young population. there have been certain shocks such as demonetisation in
year 2016 and GST in 2017. but after that also it remains to 19th largest exporter and worlds
tenth largest importers. It entered in the year 2006 by having a tie up with Bharti Enterprises. As
Bharti will be using the name “Wal-Mart” for their stores. Wal-mart is willing to expand on
different parts of India it is great threat for exiting supermarket chains. This has been a major
reason why since 2006 and 2020 it has not been able to expand successfully in different parts of
the country.
Walmart is a chain of hypermarkets that is having specialisation of discounted
departmental stores & grocery stores. They have around 11.503 stores in 27 countries.
Pros of establishment in India: Walmart is a world's largest retailer and they have a
belief that they can establish relationship with small business community that can help them in
taking benefits from small business communities. More benefits can be obtained by partnering
with such small business in terms of lower cost & enhanced profit percentage.
Cons of establishment in India: Overall logistics infrastructure us a concern fort global
retailers such as Walmart. It is about creating of a new industry for attracting more foreign retail
stores. There is availability of workforce but there is lacking of skilled workforce that is required
by Walmart if they are able to successfully establish themselves in other parts of India.

TASK 3
Factors posing influence in choice of various entry modes
Zara is one of famous retail brands in the world that si part of fashion industry and is
parting successfully in 59 countries (Zekiri, 2016). Zara is one of second largest retail of
clothing and is having a competitive advantage because of product quality which they offer to
their customers.
There are several factors that are affecting the decision of entering a foreign markets such
as supply chain management networks, cost associated with making investment in a new country
and various trade barriers that are present in a new country.
Zara as a global brand also makes use of several models for formation of strategies to use
while entering a new country. In the present scenario, there has been internal analysis in form of
strengths & opportunities that are present for brand such as Design & trend of their products,
brand image of Zara, potential growth in new markets and fast delivery of products are several
strengths that provide increased number of opportunities to this brand.
There are certain weaknesses that are associated with this brand such as no advertisement
strategy of Zara leads to many people remaining unaware if this brand and also there so a
centralized distribution system that limits the overall supply chain network of Zara (Kisanga. and
Mohammad,, 2019).
For example: In case of Korean fashion markets in past it was not large enough. There
were additional difficulties related with development of distribution networks. Now, Zara has
adopted a new entry strategy where designers of Zara is visiting once in a month to get a idea
about who product planning has to be done by surveying consumers of Korea.
Basically entering a new market can be done in three of the following ways: Joint
ventures, owning of subsidiaries or franchising. In case of Korea Zara has adopted the entry
mode of Joint ventures, this mode has been adopted as Zara didn't posses any knowledge about
the Korean markets and joint venturing with local operators results into synergy.
Pricing strategy in case of Korea: Zara's pricing strategy in Korea is price skimming
where they have sued this because of transportation cost that were very high. But after some time
various SPA brands were a big threat in terms of price this lead Zara lowering of prices to
gaining advantages of price competitiveness.

TASK 4
Entry methods used by Companies
Benetton group has reached U.S. Markets has opened stores in New York. After a time
period of two years later these store was launched in Tokyo. Expansion was also done in Model
eastern Europe & Soviet Union. Since 1980, The Benetton group has a 50 years of experience
that is related with establishment of new stores in various regions. Its franchisees are based on
long term success and increased profitability in every possible way.
There are various market that have been approached by United colours of Benetton, as
they are planning to open their more stores through franchise in those areas where presently they
are not operating (Nyadzayo, , Matanda, and Rajaguru, 2018).
There are pros and cons of using franchise as a method of opening new stores in new
countries. Franchise is very helpful in experiencing advantages of a known brand. It helps in
taking benefits of a trademark.
Simple business financing: Franchise is also very helpful in investment in a business
with a established networks (Hajdini and Windsperger, 2019).
Business relationships: There are number of already established business relationship by
a franchisor. Benefits of such franchise can also be taken by franchisee (Hoffman, , Munemo and
Watson, 2016). The known brand image in already established countries is very helpful for
organisation in
There is are many disadvantage of franchise as a option such as first is no control over
business. After providing franchise usually franchisor does not posses any control over all the
business transactions.
Cost associated with franchise: generally the cost of franchise are very high. Hence,
there is preference to start a own company instead of using franchise as a option. It also has a
very negative impact on overall profit percentage of a a franchisee.

In case of united colours of Bentton there have been several benefits of using franchise as a
option for establishing in different countries such as:
Franchisor's capital requirement will be low as franchisee will have to arrange such
franchise on their own (Bretas, Galetti, and Rocha, 2019). In case of United colours of
benetton, this brand has established themselves in different countries and they presence in 120
countries in whole world. Apart from this this store has a network of about 5,000 stores. Since
initial stages of this company they have been able to build up customer loyalty in form of loyal
base of customers. And this has resulted into easier international expansion as franchises in the
local market leader posses deep knowledge about such established brands.
There are certain more examples of Companies that are using franchising as a strategy for
entering into different countries such as Subway and 7-eleven are examples of organisation that
have been involved in sue of franchising as a mode of entering into countries.

CONCLUSION
From the above report it can be concluded that global marketing is a concept that is
related with how business organisation are able to expand themselves across different parts of
world. It is having related with how business functions are taking place in the complex business
environment. There are various entry modes that can be used by organisation while they are
planning to enter a new country in this franchising is the most preferred options by many retail
brands. Apart from this overall benefits and demerits of such retail options have been discusses
in detail so that its overall affect on organisations can be understood in detail.

REEFRNCES
Books & Journal
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
Kasemsap, K., 2018. The roles of social media marketing and brand management in global
marketing. In Social media marketing: Breakthroughs in research and practice (pp.
425-453). IGI Global.
Kotabe, M.M., 2020. Global marketing management. John Wiley & Sons.
Zaveri, B.N. and Amin, P.D., 2019. Global Marketing Strategy in Digital Era: Global Online
Presence. In Breaking Down Language and Cultural Barriers Through Contemporary
Global Marketing Strategies (pp. 103-112). IGI Global.
Hajdini, I. and Windsperger, J., 2019. Contractual restraints and performance in franchise
networks. Industrial Marketing Management, 82, pp.96-105.
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.
Bretas, V.P.G., Galetti, J.R.B. and Rocha, T.V., 2019, March. The Brazilian franchisors
governance mode choice in international markets. In 16th SGBED & XII ESPM
International Conference in Management.
Nyadzayo, M.W., Matanda, M.J. and Rajaguru, R., 2018. The determinants of franchise brand
loyalty in B2B markets: An emerging market perspective. Journal of Business
Research, 86, pp.435-445.
Kisanga, N. and Mohammad, S., 2019. Entry mode and institutional conditions to consider when
entering a new market: The case of fashion apparel franchising in Germany.
Zekiri, J., 2016. The Motivating factors for entering into Foreign Markets-The case of Republic
of Macedonia. Ecoforum Journal, 5(1).

Online:
Inbound marketing best practises and insights, 2020 [Online] Available
through<https://www.prismglobalmarketing.com/blog/4-tips-to-developing-your-global-
marketing-strategy>
Luenendonk, M., 2016. Global marketing strategies, Definition, Issues, Examples. [Online]
Available through<https://www.cleverism.com/global-marketing-strategies>