Evaluating Globe International's Market Expansion Strategy in India

This report evaluates the attractiveness of the Indian market for Globe International's international expansion strategy. It begins with a company background, outlining its strengths and weaknesses, followed by a market selection rationale that identifies India as a lucrative opportunity. A comprehensive PESTLE analysis examines the political, economic, social, technological, legal, and environmental factors influencing the market. The report then defines the target market, segmenting it geographically, demographically, and behaviorally. Competitor analysis identifies key players in the Indian retail market. The report recommends an e-commerce entry strategy and concludes that while the Indian market presents challenges, the potential for Globe International is significant. The report references various academic sources to support its analysis.

Marketing in an
international
environment
GLOBE INTERNATIONAL

Introduction
Purpose- To evaluate the attractiveness of Indian market as
an international market expansion strategy for Globe
International.
Scope- A brief analysis of the various micro and macro
environmental aspects linked with the Indian Market with a
focus on PESTLE analysis, competitor analysis, market
segmentation and target market.

Company Background
Name- Global International
Founded in the year- 1985
Background- producer & distributor of specialist products such as purpose-built
footwear, skateboard hard goods and apparel.
Business- categorised into distributed brands, licensed brands and proprietary
brands (Hoovers, 2018).
Presence- International (over 100 nations)
Promotion strategies used for success- constant tours, promotions, magazine
advertising and video ads.

Strengths and Weaknesses
Strengths Weaknesses
1. Extensive distribution strategies and
customisation strategies that focuses on the
unique demands of customers all over
different market segments.
2. It is constantly innovating its product
portfolio as well as adding new market and
customer segments for expansion and growth.
1. It has limited branding and advertisement
strategy.
2. It is popular among its loyal customers,
very few people are aware of the
company’s brand name and recognition is
low.

Market Selection
Globe International has identified India as an opportunity international
business expansion.
India is a lucrative option for any brand planning to enter the market.
The international business grows at a rate of 7 percent annually in India,
bringing numerous opportunities for International market.
54 percent of India’s total GDP (gross domestic product) comes from
international trade and India is 9th biggest commercial importer across the
globe.
Thus, the scope towards business expansion and growth in Indian market is
huge.

PESTLE analysis
Political Economic Social
 Indian political events have been
volatile in the past few years and
with elections coming, the political
scenario will be disrupting.
 the government is more welcoming
towards international investors as
they provide revenue as well as
employment opportunities across
the nation (Cavalcanti, Oliveira-
Castro & Foxall, 2013).
 . Factors such as inflation and
changing currency rates will need be
considered before investing in Indian
market.
 At present, Indian economy is facing
volatile with rupee price falling
significantly (Schultz, 2006).
 The market in India has seen
numerous changes in the past
decade, one of them being increase
in consumer spending.
 India is home to numerous cultural
and socio-economic backgrounds
and as such, the company will have
to target its market based on socio-
economic factors (Allon & Gurvich,
2010).
 consumers across metropolitan cities
will be more attracted to street
fashion and apparel compared to
rural or semi-urban customers.

PESTLE analysis
Technological Legal Environmental
 The use of IT and analytics has
helped companies understand their
consumers and meet the ever-
changing demands in fashion.
 social media has become a prime
channel for connecting with young
demographics (Macdonald & Sharp,
2012).
 India has become one of the biggest
hubs for online retailing, creating
opportunities for brands like Globe
International to sell its products
without having to establish
traditional stores.
 As a result of strengthening
environmental regulations,
companies investing in India need to
be careful regarding environment
aspects such as carbon footprint,
waste management, recycling efforts
as well as maintaining environmental
friendly status.
 The Indian government has placed
several laws which prevent fashion
retailers from using unethical or
environmental-damaging practices
(Hantula, 2013).
 While the governance has improved,
there are still numerous stages and
legislations which the company will
have to pass before being able to sell
or distribute its products in India.
 Getting license is difficult as it
involved numerous offices and
stages.
 the company will have to follow laws
across environment, wages,
employee protection areas to ensure
its legal establishment in India
(Donovan, 2011).

Target Market
Primary Target Market: The primary target market for Globe International will
comprise of young consumers, specifically those who are attracted to
international brands. To target the primary market, the company will approach
high-value, moderate-pricing strategies.
Secondary Target Market: The secondary target market for the company will
majorly comprise of teenagers and school-goers. For this market, the company
will develop products which are value-based, fashionable and come at a
reasonable rate.
Tertiary Target Market: The tertiary target market will comprise of smaller but
specific target markets. For instance, premium sports customers looking for
personalised or customised footwear and apparel wear will be one tertiary
target market (Schiffman & Kanuk, 2010).

Market Segments
Geographic Segmentation: The most suitable geographic segment for the
company will be metropolitan cities like Mumbai, Delhi, Chennai, Bangalore,
Pune and Hyderabad. Even in case of e-commerce models, the company will
have to establish contracts with local delivery services which might not be
available in other two-tier cities (Macdonald & Sharp, 2012).
Demographic Segment: The company will be majorly attracting young
consumers, particularly students, teenagers and young working professionals.
Age: The target age group for Globe International will be between 15 years and
40 years. This will include students, high-schoolars, teenagers, graduates as well
as young working professionals.

Continuation..
Gender: The Company will be targeting both male and female customers and will provide variety
of products for the target customers
Socio-economic group: Since majority of the target customers will be financially dependent on
their parents and guardians, the products will be marketed as value-based. The company will
distribute its street-wear fashion brands to teenagers, students and high-schoolers. Also, the
main target for the company’s work wear brands will be young working professionals (Chan &
Wu, 2005). High-quality sports gears and personalised or customised footwear and clothing’s
will be targeted to premium customers.
Behavioural Segment: The company will be basically targeting customers who are attracted to
fashion brands and street fashion

Competitor Analysis
The Indian retail market is filled with online and offline brands, traditional and
contemporary as well as domestic and international brands.
Alley Solly: It is a brand from Aditya Birla Group, India’s premier retail house with
presence in more than 35 nations across the globe.
United Colors of Benetton: It is a retail brand from Italy with more than 5,000
online and offline stores across various international markets (Govindarajan &
Bagla, 2016).
Local Brands: The company will also face competition from local brands and
retail outlets across the nation (Federgruen, 2007).

Recommendations
The company will need to evaluate and place its products as per the local
demand such as traditional clothing and colours of its apparel and footwear as
per popular customer demands
One of the easier and safer market entry strategy for Globe International will
be to enter via e-commerce only mode. This will help in analysing the market
based on which, further expansion plans can be made.