Global Marketing Report: Cotton On's Market Entry Options in India

This report examines the global marketing strategy of Cotton On, an Australian fashion retailer, for expansion into the Indian market. It analyzes various market entry options, including online sales, direct exporting, and greenfield investment, evaluating their advantages and disadvantages within the Indian context. The report also identifies potential market segments in India and outlines ways Cotton On can provide services to customers. Furthermore, it explores marketing strategy options based on segmentation, targeting, and positioning (STP) and recommends specific strategies for the chosen target market segments. The analysis considers factors such as scalability, margins, risks, and government regulations to determine the most suitable approaches for Cotton On's success in India. The report concludes with a summary of the chosen strategies and recommendations for positioning in the Indian market.

Running head: GLOBAL MARKETING
Global Marketing

GLOBAL MARKETING 2
Table of Contents
Part 1...........................................................................................................................................................3
Market entry options for Cotton On in India...........................................................................................3
Reasons for adopting or discarding market entry modes within the context Cotton On, India................6
Part 2 of Assessment 2................................................................................................................................8
Potential market segments for India........................................................................................................8
Ways of providing services by Cotton On...............................................................................................8
Marketing strategy options (segmentation, targeting & positioning (STP) strategies).............................9
The reason behind the selection of the target market segment(s) in the Indian market..........................11
Recommended positioning strategies for each target market.....................................................................12
References.................................................................................................................................................13

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Part 1
Market entry options for Cotton On in India
Online Sales
Cotton On would make efforts for entering into international market indirectly through targeting
international customers via internet. Cotton On can sustain to its physical operations within
Australian market but can ship to product in India. Moreover, Cotton On can contract to home
organizations via internet and can take orders of consumers (Das, 2015). The key benefit of
using this channel by Cotton On is cheap application and considering only marketing cost. The
limitation is that it could be less significant as compared to developing the physical availability
in global environment. Furthermore, consumers could be discouraged because of shipping
expenses, taxes, and duties that could be levied through administration and length of time it
considers for their order in terms of arriving (Roy, Sethuraman, & Saran, 2016).
Direct Exporting
Direct exporting is another mode of market entry that could be used by Cotton On for penetrating
into India. This mode is related to direct selling within market. In this mode, Cotton On can
develop the sales initiatives and leads agents as well as, distributors for representing products in
market. Moreover, the role of distributors and agents would be creating awareness about the
Cotton On. Hence, they are essential part of company. Furthermore, Cotton On will focus on
hiring proficient staff in India for starting offline store (Jain, Khan, & Mishra, 2017).
Greenfield Investment
Greenfield investment is a kind of foreign direct investment in which, a company develops
operations in a foreign nation. Under Greenfield investment, Cotton On can develop new

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facilities such as sales office and manufacturing services in cross-border from ground up
(Kautish& Sharma, 2018).
It is a form of market entry that is highly practiced while Cotton On can wish for attaining a
higher extent of control over foreign practices. It could be effective compared with other foreign
direct investments like purchasing foreign securities and acquisition-related to a majority stake in
global companies where, parent company exercises little to no control over the daily operation of
thebusiness (Roy, Jain, &Matta, 2018).
Advantages and disadvantages of market entry options
Online Sales
Online sales arethe easiest and fastest method that could be used by Cotton On for capturing a
share of the Indian market. Furthermore, online availability could be supportive of establishing
the business anywhere as well as, permitting the consumer for ordering products from Cotton
On. But, there is no matter the physical location of a business. This technique would be also
advantageous for Cotton On as it is flexible. Cotton On can also join the forces with developed
global sellers such as Myntra where, it can sell the fashion products to global consumers as they
already know and trust on this platform (Sarulatha&Sasirekha, 2017).
Business could be dealt via Anywhere
E-commerce websites can decline the physical restrictions that a Cotton On will face due to
office-based organization. E-commerce mode is beneficial for Cotton On to operate their
business from anywhere around the globe as well as, it is highly productive for business due to
no need of higher marketing costs. The significant elements that Cotton On hasthe need for
overseeing the e-commerce websites from anywhere as well as, having access to email, phones,
and the internet (Srivastava, 2016).

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Disadvantageous
Unfriendly Customer Service
An e-commerce mode can provide unfriendly customer service since it is not act as a real
individual who are competent for offering the free sample and greeting the customer walking via
an online door. There are different sites where customers face this issue during online chatting
with sales representatives. In addition, video chats could be another visual touch with extra
elementsregarding personal services. Furthermore, another promising strategy that could be used
by Cotton On is to offer phone numbers for facilitating personalized communication (Saran,
Roy, &Sethuraman, 2016).
Direct exporting
The benefits of direct exporting for Cotton On are more control over specific areas such as
labeling, distribution, higher margins of profit, pricing, as well as, closer ties with markets along
with, customers. Direct sales could increase the sales volume of export in future even though
Cotton On can get faster initial outcomes. The major resources areessential for Cotton On is time
as compared to capital. In addition to this, exporting could initiate small and create overtime
without undue risk in Cotton On (De Mooij, 2019).
The limitation of using direct exporting involves effective travel and service expenses because of
time commitment. It could outcome in a loss of focus in the Indian market. Commitment related
to senior staff of Cotton On could limit the number of consumers as well as, geographical spread
that could be serviced primarily. The exporter should learn the ways for performing business in
Indian market like terms and conditions, and pricing (Jain & Khan, 2017).
Greenfield investment

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The benefits of Greenfield investment are to attain economies of scale as well as, scope in
finance, marketing and production, transportation, research and development, and purchasing. It
is also used for higher control related to all aspects of the business of Cotton On. This could be
competent for executing the long-term strategy by Cotton On. In addition, commitment to the
market in Cotton On would be solid as well as, vendor financing is available. The company can
perform with appropriate authorities through initiation. It would have control over brand and
staff with the application of this strategy (Islam &Rahman, 2016).
Disadvantageous
The limitation of using this tool is that Cotton On could be more costly and rivalry would be
complex for overcoming. Another disadvantageous of using this strategy is that the entry
procedure may take long periods and barriers to entry could be expensive. The limitation of
practicing this technique is that government regulations may create complexities for multi-
national enterprises in a shorter period (Atwal& Williams, 2017).
Reasons for adopting or discarding market entry modes within the context Cotton On,
India
Reasons for adoptingonline sales
Following are some reasons for adopting online sales:
Scale-ability
E-commerce websites can be significant to allow Cotton On for assessing fashion and stationery
products to sell effectively. It would make sure increases in stock levels of fashion and stationery
products. Furthermore, these successful goods could be diversified for creating a higher category
of products for selling via website (Islam &Rahman, 2016). It would permit Cotton On to grow
the business with respect to the base of customer, sales together with, profits. Myntra online

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shopping website would be joined effectively in around to scale their product range as well as,
monitoring nearly what is selling to consumers. It would consequently be permitted them to
dramatically diversify the product range into different sectors (Ozuem&Azemi, 2017).
Higher Margins & Better Cashflow
When Cotton On is involved and sells within the fashion retail sector then the e-commerce
website will permit business for selling at higher margins. It would make profits by selling a
wider range of products. The payment options and shopping cart on these websites would
indicate Cotton On is gaining 100% of payment through customers in a straight manner. It would
enhance the cash flow specifically while consumers normally offer payments in different
installments (Sharda&Bhat, 2018).
DIRECT EXPORTING
Direct exporting would be discarded due to some reasons that are discussed as given below:
Higher initial cost
Expenditure of performing a direct export business could be higher for Cotton On. It entails a
higher primary outlay before profit is initiating to flow in. Hence, Cotton On Company cannot
arrange adequate finances for exporting (Teo, Nik, &Azman, 2019).
Larger risks
Direct exporting entails different risks associated with financing, credit, rejected and collection
merchandise as well as, after-sale services. These uncertainties could be occurred by individual
manufacturer (De Mooij, 2018).
Complexities in the stocks maintenance

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Success related to direct exporting relies on timely availability of products in abroad markets.
However, stocks maintenance in abroad warehouses could be expensive factor that could be
entailed as a big limitation for direct exporting (Kumar, 2019).
Greenfield investment
Greenfield investment would be discarded due to different reasons. These are an extremely high-
risk investment and riskier for foreign direct investments. Furthermore, there are potential high
market entry expenses, and barriers to entry. Government regulations could create a restriction
for foreign direct investments. Along with this, higher fixed expenses entailed in developing
Greenfield location (Diddi&Niehm, 2017).
Part 2 of Assessment 2
Potential market segments for India
Target market
Cotton On will target the market such as kids, men, and women, with all ethnicity. The gaining
trends within fashion industry together with, purpose of achieving sustainable fashion offer a
wider opportunity for Cotton On in order to enlarge the business in Indian market (Rahman,
&Mannan, 2018).
Ways of providing services by Cotton On
Seek Customer Feedback
Cotton On should understand needs, experiences as well as, paint points for offering better
customer services. The company has a requirement for making sure that it facilitates several
ways to consumers for sharing their feedback. Cotton On can conduct telephone surveys and
share feedback forms through email. Apart from surveys, the company can develop a complaint
system that would better enable the consumers for raising their concerns (De Mooij, 2018).

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It would help to understand all bad or good experiences while communicating with a brand. By
using this, Cotton can increase real insights about the services that are performing as well as and
the areas that need to make an improvement (Teo, Nik, &Azman, 2019).
Appreciate Good Work
Cotton On can seek for recognizing the efforts for customer service teams who provide a higher
extent of customer satisfaction and experiences. It can reward top performers with gifts and
incentives. It can motivate the workforces for attaining the service goals of customers
(Diddi&Niehm, 2017).
Marketing strategy options (segmentation, targeting & positioning (STP) strategies)
These strategies could be effective for assessing the products and services that are being offered
and provides the values and benefits of the offering that are conveyed to target groups (Rahman,
&Mannan, 2018).
Segmentation
Marketing segmentation entails categorizing several consumers into different groups that have
common characteristics and needs. In such a manner, a company can assess marketing
approaches in order to attain the needs of every group in a cost-effective manner. It also
facilitates an edge over the competitors. Segmentation consumers could rely on different aspects
such as psychographic, behavioral, geographic, as well as, demographic factors (Ozuem&Azemi,
2017).
Targeting
At this phase, corporations should assess which segment they have to target. There is a need to
assess several factors like the effectiveness and profitability of every segment, assessing the
potential size and growth of every segment and comprehend how well the company can meet the

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requirements of specific segments. In this phase, the company can assess revenues, market size
as well as, profits of every segment (Rahman&Mannan, 2018).
Positioning
The positioning strategy has a requirement for companies to assess how they wish to place their
offerings to targeted consumer groups. After this phase, the marketing mix could be chosen. The
business should primarily assess why a consumer would avail of the offering as compared to its
competitors. It could be performed by addressing the unique selling proposition and then shows
the positioning plan for comprehending how different segments would perceive products and
services. In such a manner, companies can address the best marketing model in order to make
positioning of its offering (Sharda, &Bhat, 2018).
Strategic Approach Cotton On used to segment the market
Cotton On can segment the consumers on the basis of influencing consumer purchasing behavior
with respect to fashion and stationery products. It is defined as follow:
Demographic factor:
Cotton On can focus on offering quality fashion products to potential consumers. In such a
manner, a target customer group can be selected from men and women with age of 15-45 years.
This age-group of consumers will be chosen due to persuading both middle and business groups
by offering low rate fashion products with quality as per individual needs (Islam, &Rahman,
2016).
It can also segment the customers as per the majority of targeted consumer i.e. both married and
unmarried groups. This would be beneficial for influencing consumer purchasing behavior. As
per the occupation, the target market for fashion products may vary toa higher extent. In

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addition, fashion brands could cater to individuals who are belonging to each occupational field
(Atwal& Williams, 2017).
Behavioral Segmentation:
Cotton On wouldcategories the consumers according to their behavior regarding fashion
products and stationery products. In India, there are increasing trends within fashion industry
hence purpose of achieving sustainable fashion facilitates wider scope for company in terms of
expanding in the Indian market (De Mooij, 2019). By using this strategy, Cotton On can focus on
segmenting loyal consumers. But, there is a need to offer affordable rates for fashion products
and providing a discount to government employees. As a result, it can be advantageous for
influencing consumer buying behavior (Srivastava, 2016).
The reason behind the selection ofthe target market segment(s) in the Indian market
The reason behind the selection of a combination of B2B and B2C
Lower operational costs
A single website would outcome in declining operational expenses as Cotton On would have the
requirement of less physical infrastructure and staffing. Moreover, it will provide a higher return
on investment by selling fashion products to businesses and consumers (Roy, Jain, &Matta,
2018).
Easier operations
There is a need for technical expertise for developing a site and that can control both B2C and
B2B operations. Cotton On can create a higher proficient custom e-commerce website for
working easily. After completion of this, it is becoming easier for integrating the systems such as
ERP, CRM, and related systems into single places. There is no requirement for separate
integration for different sites in such cases (Roy, Sethuraman, & Saran, 2016).

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Enhanced Customer Experience
Developing a unified approach would permit Cotton On a reliable Omni channel experience to
purchaser whether they are businesses and consumers. In addition, finings products as well as,
delivering products are becoming easier that permit Cotton On to provide better consumer
experience (Jain, Khan, & Mishra, 2017).
Recommended positioning strategies for each target market
Positioning strategies for B2B
It can be recommended that Cotton On can expand the total market by addressing new users and
new applications of products (same or different market). It can also expand the total market by
motivating more usage on each use occurrence. Cotton On should protect the market share
through creating new product ideas, enhancing distribution effectiveness as well as, enhancing
consumer services. It can be also suggested that Cotton can create a positive image in the mind
of customers by providing quality products as compared to its competitors (Kautish& Sharma,
2018).
Positioning strategies for B2C
It can be suggested that Cotton On should use referral programs for distributing rewards every
time to an individual who refers to a friend. A company can also provide the testimonials as well
as, reviewing of happy clients. Cotton On should display user-generated content on websites as
well as, social media mediums like pictures as well as, videos of someone using the same
products or services. It can also share the message on social media about products and services
(Sarulatha&Sasirekha, 2017).