Global Marketing Portfolio: Progress, BRIC Markets, Entry Modes

This portfolio report delves into the multifaceted world of global marketing, commencing with an exploration of the evolution of the 'global marketing' concept, incorporating insights from academic sources and real-world business examples such as McDonald's. The report then assesses the int...Read More

AS1 - Portfolio
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CONTENTS
Portfolio Entry 1: Progress of the ‘global marketing’ concept........................................................4
Task 1...............................................................................................................................................4
Q1. Concept of ‘Progress of the global marketing’.....................................................................4
Q2. Further research on development of an international marketing concept, utilizing three
academic sources.........................................................................................................................4
Q3. Example from business world that upkeep portfolio entry and its relation to progress of
international marketing concept..................................................................................................5
Portfolio Entry 2: Assessment of integrating BRIC markets...........................................................5
Task2................................................................................................................................................5
Q1. Emerging BRIC market........................................................................................................5
a. Back ground to India.........................................................................................................5
b. Political risks in India.......................................................................................................5
c. Trade, non-trade & tariff barriers between United Kingdom & India........................6
d. Economic environment for India.....................................................................................6
e. Benefits and drawbacks for a United Kingdom firm looking to move into Indian
market.....................................................................................................................................6
Portfolio Entry 3: Factors impacting choice of entry mode............................................................7
Task 3...............................................................................................................................................7
1. Firm from ‘real’ business world and business it is in..............................................................7
2. The way “Factors influencing the market entry mode decision” model can assist in choosing
‘right’ entry mode to enter in new market...................................................................................7
Portfolio Entry 4: Franchise entry method......................................................................................8
Task 4...............................................................................................................................................8
1. Retailer that utilises franchise as an entry mode and name of the retailer...............................8
2. List of markets that retailer has select to utilize franchise as a mode of entry........................8
3. Evaluation of benefits and drawbacks of utilizing franchise as a mode of entry....................8
4. Benefits to choosing franchise to Marks & Spencer...............................................................9
REFERENCES..............................................................................................................................10
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Portfolio Entry 1: Progress of the ‘global marketing’ concept
Task 1
Q1. Concept of ‘Progress of the global marketing’
Global marketing is referred as a publicising to target marketplaces all over the world and
it is very crucial for almost all businesses. Global marketing provides a steady opportunity to
company for growth in international market. It is the procedure of adjusting marketing tactics of
company in order to adapt with the circumstances of other nations. It is other than selling a
product or service all over the world as it is a complete procedure of planning, developing,
positioning as well as endorsing the products in international market. Today, with the spread of
internet, companies can reach to consumers anywhere globally (Moreno Ramirez, 2017). There
are several developments takes place in global marketing. The dimensions of this concept
includes nature of packaging, labelling, product design, absence or presence of warranty, choice
of brand name, after sales service support and advertising strategy. For each of the dimension of
global marketing, an organisation must select a degree of customisation and standardization.
Q2. Further research on development of an international marketing concept, utilizing three
academic sources
As per the view point of De Mooij, (2018), the development of international marketing
details all the relevant aspects of development stage that has been continue since capitalism and
its concepts took centre place in redefining the manner individuals to business globally as well as
the course of industrialisation which shaped and altered outlook of global process of economy.
According to the view of Sana Haroon, (2016), global marketing is the procedure of marketing to
target markets all around the world and is significant for every business. Proper understanding of
market competition, customers, supplier networks operate globally etc. are important to market
the products and services effectively at global level. Development in global marketing provides
the opportunities to businesses to develop and grow internationally and maintain sustainability in
the market (Developing the Global Marketing Concept, 2016).
As per the views of Martin Lunendonk, (2019), the process of global marketing involves
adjusting marketing strategies of a firm according to the circumstances of other nations. Global
marketing improves the effectiveness of product or service and provide strong competitive
advantage to company. Developments of global marketing helps in increase the consumer
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awareness of brand and also reduce the cost of company by achieving economy of scale (Global
Marketing: Strategies, Definition, Issues, Examples, 2019).
Q3. Example from business world that upkeep portfolio entry and its relation to progress of
international marketing concept
From a global perspective, market planning and marketing mix are crucial and where
feasible in marketing mix, the standardization efficiencies are sought. Global marketing is
specifically significant for products or services which have universal demands like automobiles
and food. Example of global marketing includes McDonald's. The company standardise its logo
and processes in most of its store decor, layouts and advertising wherever and whenever
possible. The organisation makes certain that its Big Mac has similar taste in each nation, but
varies items in its menu as per the local tastes. Customers in Arab Nations can enjoy Mac
Arabia, Green chili cheese burger in Mexico, bulgogi burgers in Korea, pork burger in Thailand
etc. It means the way of looking into market for commonalities which can be standardized across
markets.
Portfolio Entry 2: Assessment of integrating BRIC markets
Task2
Q1. Emerging BRIC market
a. Back ground to India
India is a nation in South Asia and is one among the largest nation in the world by area. It
is the most populous democracy globally. Bounded through the Arabian sea in south west, Bay
of Bengal in south east and Indian ocean on south, it shares land borders with Nepal, Bhutan and
China to the north, Myanmar and Bangladesh to the East and Pakistan to the west. Since year
1950, the country has been a secular federal republic, governed in parliamentary system which is
democratic. It has become the fastest growing economy and a hub for IT services. The nation is
divided into 28 states along with 8 union territories and the capital of country is New Delhi.
Since independence, India has attained self-sufficiency in terms of grains and food.
b. Political risks in India
India is well known for its largest democracy all over the world. Political situations of the
nation influence the commencement of business. It is necessary for each business firm to comply
with political regulations of the nation like minimum wage act, voluntary codes and practices,
taxes and trade agreements, anti-discrimination laws, there are several political risk in the India
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including fluctuation in inflation rate, interest rates and currency rates, corruption, slowdown in
decisions of government because of political instability, cultural issues and legal disputes
because of some local suppliers and partners. Apart from this, the land acquisition process in
India is complex and the tax structure is also complex which creates a risk for business to
operate.
c. Trade, non-trade & tariff barriers between United Kingdom & India
International trade with India is a challenge, given the market diversity, sheer size, non-
trivial obstacles and decentralized political system of the country obstacle to ease of doing trade
and business. The businesses of India operating in United Kingdom cited visa regulations as a
problem that influence hiring and mobility of workforce across Nations. For businesses of United
Kingdom in India, there is a lengthy process of securing permits to operate business which is
emerged as a key non-tariff issue or barrier. Apart from this, the tax imposed by the country is
also one of the barrier don't national trade between United Kingdom and India.
d. Economic environment for India
The Indian economy is a developing economy and has one among the largest economy in
world as per the nominal Gross domestic product. In year 2018, the GDP of country was around
2.72 trillion dollars. Apart from this, the corporate tax rate in the nation is lowest in the world. In
year 2019, it reduces tax rates from 30 percent to 22% for existing organisations and 25% to 15%
for new manufacturing companies. The key exports of India are pharmaceutical products,
readymade garments, transport equipment, jewellery, machinery and petroleum products. On the
another side, it imports pearls, gold and silver, crude petroleum, electronic goods etc.
e. Benefits and drawbacks for a United Kingdom firm looking to move into Indian market
For any organisation, there are some advantages and disadvantages to move in another
country. The advantages for a UK business to move into Indian market is that India is an
emerging market that provides huge opportunity to the organisation to grow and develop. The
operational cost is also low as infrastructure, moderate tax strategies and cheap labour is
available in the India. The country also has well regulated financial system and vast trade
network which provides an opportunity to organisation to establish its business. However, there
are some disadvantages also including high corruption rates which may create a challenge for
business to operate successfully. Apart from this, lack of awareness about cultural differences
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and availability of unqualified or less qualified workforce are also the disadvantages for
company to run business efficiently.
Portfolio Entry 3: Factors impacting choice of entry mode
Task 3
1. Firm from ‘real’ business world and business it is in
Marks and Spencer is a leading multinational retailer of Britain that deals in fashion retailing
industry. The company was established in 1884 through Michael Marks and Thomas Spencer
and its headquarter is situated in London, United Kingdom. The organisation specialises in
selling home products along with clothing and food products. It operates its stores in around
1463 locations all over the world with the brands like blue harbour, Per Una, autograph, Rosie
etc. It is listed on London stock exchange. The company mainly emphasize on quality of its
product and aims to provide customers with high quality products and services at fair value for
money. There are various markets in which the company is currently operating it stores
successfully and 18 high growth and success in the market.
2. The way “Factors influencing the market entry mode decision” model can assist in choosing
‘right’ entry mode to enter in new market
There are several forces that influence the process of decision making regarding selection of
entering into a another market. These influences are categorised into internal and exterior factors.
The external factors include market size, government regulations, rivalry level, physical
infrastructure, market growth rate, level of risk involving production and shipping cost,
economic, political and operational risk, etc. The internal factors that affects the decision of
business expansion includes objectives of organisation, availability of resources, international
experience, commitment level, flexibility, organisational structure etc. All these factor influence
the decisions of a company associated with international market entry (Ang, Benischke, and
Doh, 2015). For instance: the objective of Marks and Spencer is to cater customers with high
quality products at affordable prices. So, when the company take decision to enter into to new
market, it mainly focuses on the buying behaviour of customers and offer them with products
and services accordingly. Apart from this, government regulations also impact the entry decision.
If the government regulations of any of the market are stiff, then it impacts the entry decision of
company.
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Portfolio Entry 4: Franchise entry method
Task 4
1. Retailer that utilises franchise as an entry mode and name of the retailer
The fashion retailer that uses franchise as an entry mode is Marks & Spencer which came
into existence in year 1884 and 134 glorious years of expansion and growth, it is one among the
largest retailer in United Kingdom.
2. List of markets that retailer has select to utilize franchise as a mode of entry
Marks and Spencer render its franchisees with constant training before and after opening of
store. It enters into various markets by using Franchise mode (Our International Franchise
Partners, 2020). The markets which the fashion retailer has select to enter through franchise
mode of entry are listed below in the table:
Cyprus France Tenerife Ukraine Hong Kong
Malta Jersey Paris Guernsey Kuwait
Libya Finland Turkey Thailand Lebanon
Morocco Philippines Russia Vietnam Macau
Bermuda India Singapore Armenia Malaysia
Romania Indonesia UAE Georgia Oman
Gibraltar Gran
Canaria
Saudi Arabia Kazakhsta
n
Qatar
Marbella Greece Bahrain Egypt
3. Evaluation of benefits and drawbacks of utilizing franchise as a mode of entry
There are several disadvantages and advantages of utilizing franchise as a mode of market
entry. Some of the merits and demerits in context of Marks and Spencer are mentioned below:
Advantages:
 The expansions become faster and easier s franchisees provide the labor and sales
provide growth to the company.
 The franchisor needs to put relatively less money into new to areas all locations as this
comes from franchise (Sulistianingsih and Fidiyani, 2018).
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Disadvantages:
 This cannot be managed as proximally as workforce and they may have distinct goals to
franchisor.
 Franchisors gets royalties from sales and franchises gets money from profits. Attaining
growth isn't always possible in both, potentially causing conflict.
4. Benefits to choosing franchise to Marks & Spencer
There are several benefits that Marks & Spencer gets of choosing Franchise as an entry mode
in new market. Some of the benefits that company gets are mentioned below:
 Working with international franchise partners assist Marks and Spencer in extending the
reach of its brand to even more consumer all around the world.
 Franchise model also enables company to get benefit from its partner’s local market
expertise as well as gain better access to leading retail locations (Our International
Franchise Partners, 2020).
 In Indian market, the company has its retail franchise partnership with Reliance Retail
Limited which helps it in reaching to large group of customers in Indian market also.
 This also helps in improving profitability and revenues of company in an effective way
and attaining a large loyal consumer base by providing them with high quality products.
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REFERENCES
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
Sulistianingsih, D. and Fidiyani, R., 2018. Empowerment of Small to Medium Enterprises using
Franchise Takeover Model. In SHS Web of Conferences (Vol. 54, p. 06009). EDP
Sciences.
Ang, S.H., Benischke, M.H. and Doh, J.P., 2015. The interactions of institutions on foreign
market entry mode. Strategic Management Journal, 36(10), pp.1536-1553.
Moreno Ramirez, M.A., 2017. Análisis de la influencia de internet en la fijación de precios de
productos y servicios: casos de pricing.
Online
Developing the Global Marketing Concept, 2016. [Online]. Available through:
<https://www.marstranslation.com/blog/developing-the-global-marketing-concept.
Global Marketing: Strategies, Definition, Issues, Examples, 2019. [Online]. Available through:
<https://www.cleverism.com/global-marketing-strategies/>
Our International Franchise Partners, 2020. [Online]. Available through:
<https://corporate.marksandspencer.com/aboutus/our-
partners#b8a5de96d13c4ce8a6eddc5c58f7df64>
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