International Marketing Report: Hatchards' Global Expansion Strategies

This report analyzes the scope and concepts of international marketing, using Hatchards, a UK bookstore, as a case study. It explores the rationale for international market entry, examining various routes such as exporting, licensing, and strategic alliances. The report delves into key criteria for ...Read More

International Marketing

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Analyse the scope and concepts of international marketing...................................................3
P2 Rationale for an organisation to market internationally and describing the various routes to
market it can adopt.......................................................................................................................4
M1................................................................................................................................................5
LO2..................................................................................................................................................5
P3 Key criteria and selection process to use when considering which international market to
enter..............................................................................................................................................5
P4 Different market entry strategies with pros and cons.............................................................6
M2................................................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The international marketing commonly referred to as the application of principles and
theories of marketing on a global level. This might also be called as the global marketing which
outlines the various marketing strategies and tactics to over more than one nation. In this report,
Hatchards is taken as an organization which is considered to be the oldest book store in UK
founded in the year 1797. This report presents about how the marketing practices contributes in
expanding business in a global level. It covers the key criteria to use and market entry strategies
for entering the international markets.
LO1
P1 Analyse the scope and concepts of international marketing
Concept of international marketing
International marketing accounts for the implication of various marketing strategies in
order to execute the business on a global level. It same as the marketing but is on the
international borders which helps in creating the global exchanges which helps in meeting up
with the individual and the company objectives (Cavusgil and et.al., 2018). It is fundamental to
the Hatchards in respect to creating a international recognition and in order to do this, they are
needed to export and import their product and services to various clients on a global level.
Scope of international marketing
It is important to employ various global marketing approaches which involves the higher
scope in the current marketing business. Due to the various marketing strategies available the
deployment of the same has been confined within the nation. Thus, there are certain scope of
international marketing to the organization in further business expansion globally.
Exports: This is just similar to the national marketing and pertaining to this the company
is required to export and import their finished products and services to the international market.
This results into attaining global brand recognition and successfully grabbing the market.
Imports: This is important in international marketing in which the particular product is
purchased from the other countries along with selling the same to the domestic markets in an
effective way (Ahi and et.al., 2017). Hatchards can deliver distinguished services through the
way of importing in-demand product along with effective services.

Re-export: This is the last scope of international marketing which refers to the importation of
the product from the other nation and after little modification if required, is exported to the other
global nations as the finished good.
P2 Rationale for an organisation to market internationally and describing the various routes to
market it can adopt
Rationale
With respect to the chosen organization which is currently operating at the domestic level
is being doing well in regard to the UK market and can be determined by looking at its sales and
profits. Therefore, after successfully placing itself in the UK market, the company is now willing
to focus on the international market which will results into expanding its customer base along
with the market at internal level. By taking into consideration, the international marketing, it is
being observed that the Hatchards needs to expand globally with the purpose of acquiring the
larger share and thus, selling its books on a global platform. The another cause pertaining to the
organization's reason to tap the worldwide market as it will help in extending the business at a
larger level and results into increasing the deals and incomes and nowadays MNCs are those
which operates on a larger scale. The primary motivation behind this is the growth of the
company and grabbing the expansion benefits which is why the organization is willing to move
to the global markets. This results into expanding the self-esteem and enhancing the income of
the company and so forth.
Various routes to enter international market
There are various routes through which the company can enter into the global market and
each of these routes can be adopted by Hatchards but for the final selection it is essential to
evaluate each of these routes inan effective way.
Licensing: Hatchards can provide license to some of the firms in the international market
which will use its brand name or the expertise in return of the royalty or fees.
International agent or distributors: Pertaining to this, Hatchards can also involve the
some agents and distributors with the respected country for expansion to sell its product in that
market in return of a commission. These agents and the distributors will sell the products of the
company and will be given commission on every sale.
Strategic alliances: Hatchards can enter into different types of agreement with the which
involves different aspect such as the manufacturing, R&D or marketing and distribution. In this

way, the organization can access the international market without any requirement to share their
ownership and in addition remaining independent.
Internet: It can also be considered as another route for expanding into the international
market. There are various platforms on the internet like e-commerce which will help in tapping
the international market without any requirement of actually visiting it.
M1
There are number of opportunities and challenges which revolves around the
international marketing that Hatchards might come across. In respect to the opportunities, it will
give Hatchards in expanding its market which in result assist the organization in becoming
competitive at the internal platform (Watson and et.al., 2018). In addition to this, it is observed
that international marketing will help in discovering new avenues which results into achieving
the economies of scale. But on the other side, there are certain challenges to it. It involves
incompatible political, social, economic or the environmental factors which might stood up as a
barrier in the process of conducting the business. Also, cultural taste and preferences of the
customers might also come across in expansion process.
LO2
P3 Key criteria and selection process to use when considering which international market to
enter
There are certain criteria which is needed to be considered by Hatchards in the process of
entering the foreign market like the technology, culture, economic integration along with the
vision of the management. These criteria are essential to be taken in account for the selection of
the specific foreign market (Mitkidis, Magoutas and Kitsios, 2018). Hatchards deals in books
therefore, factors like taste and preferences and the culture of the people matters and plays an
important role.
In addition to this, the selection process, is needed to be utilized for exploring the foreign
market to enter which are described below.
Determining the international marketing objectives
Hatchards requires to determine the marketing aim and goals and based upon which the
company can identify its marketing strategies and the main aim of the company is to enhance its
market share along with higher profitability.
Collection of information

In this stage, relevant information is being gathered from the foreign market pertaining to
the demand of the product, prevailing competition within the market along with the nature of
consumers.
Analysis of information
After gathering all the information in respect to the specific market, the next step is to
analyse the same and interpreting the outcome from it (Lindstrand and Hånell, 2017). This is the
result based on which the formulation of the strategy for entering the international market is
carried out.
Short listing of market
Under this, the short listing of the market is done conducted based upon the analysis and
is also dependent upon the various criteria like the competitiveness in the market, prevailing
demand and the governmental policies and regulations.
Selection of markets
This is the final stage in which the selection of the overseas market is done which build
on the certain factors like the inflation, political stability and barriers pertaining to the trade.
P4 Different market entry strategies with pros and cons
The different forms of entry strategies which can be used by Hatchards for the purpose of
entering the foreign market are described below.
Exporting: Hatchards can make an entry in the selected foreign market through the way of
exporting. It is the easiest strategy which helps in avoiding unnecessary cost of establishment of
the business.
Advantages:
 It can avoid the risk of investing the money on establishing the business in oversea
market.
 The exporting also assists in learning and exploring into the diverse market without
requirement of making much investment (Morgan, Feng and Whitler, 2018). This also results into reducing the potential risks of operating internationally.
Disadvantages:
 The company might not have any control on the activities of the foreign markets.
 The 3rd party might not show any interest in the goods.
 Customer may not find the product as per their need and preferences.

Licensing: Hatchards can also make use of licensing method which will allow the company to
effectively make use of its brand and the expertise pertaining to selling out its products using its
brand name in return of a charge or a fee.
Advantages:
 The cost involved in it is less in the oversea nations like India.
 The risk of establishment is low. The capital invested within the international market is relatively blocked.
Disadvantages:
 The participation of the organization is very limited.
 Also, the potential revenue and the profit might be lost.
 It needs extensive planning for providing license.
Joint ventures: The company can also tie with other entity for entering the oversea market over
mutual conditions (Cateora and et.al., 2020). Under this, the ownership and rights of the
resources in the venture are shared.
Advantages:
 Knowledge and skills of both the entities can be used to full. Financial burden is also shared.
Disadvantages:
 The partners in this, do not have full control on the firm.
 Views of the partners may clash.
Franchising: It is a reformed form of licensing which works effective in the repeatable business
model and can be transferred from one market to another.
Advantages:
 It involves lower risk. Easy to establish under the brand name.
Disadvantages:
 Impacted by the legal and regulatory business environment.
 No control over business activities.
M2
Hatchards requires applying specific market evaluation criteria along with the selection
process being discussed above (MARKET ENTRY STRATEGIES. 2020). It states about the

specification and the factors which is needed to be considered by the organization and as far as
the entry mode is considered fit for Hatchards is franchising model and the reason involved for
this is that being a book store company, it requires to follow repeatable business model and
under such circumstance, franchising is the best way.
CONCLUSION
It can be inferred that there are various factors and aspect which is required to evaluate
before entering into a new foreign market such as the market conditions, competition, social,
technological factors. It is important to understand the various entry strategies and identifying
which one is beneficial for it. On an overall, it can be said that Hatchards needs to make various
consideration before expanding globally.

REFERENCES
Books and Journals
Ahi, A., and et.al., 2017. International market entry: how do small and medium-sized enterprises
make decisions?. Journal of International Marketing. 25(1). pp.1-21.
Cateora, P. R., and et.al., 2020. International marketing. McGraw-Hill Education.
Cavusgil, S. T., and et.al., 2018. Middle-class consumers in emerging markets:
Conceptualization, propositions, and implications for international marketers. Journal
of International Marketing. 26(3). pp.94-108.
Lindstrand, A. and Hånell, S. M., 2017. International and market-specific social capital effects
on international opportunity exploitation in the internationalization process. Journal of
World Business. 52(5). pp.653-663.
Mitkidis, G., Magoutas, A. and Kitsios, F., 2018. Market and economic feasibility analysis for
the implementation of 2nd generation biofuels in Greece. Energy Strategy Reviews. 19.
pp.85-98.
Morgan, N. A., Feng, H. and Whitler, K. A., 2018. Marketing capabilities in international
marketing. Journal of International Marketing. 26(1). pp.61-95.
Watson IV, and et.al., 2018. International market entry strategies: Relational, digital, and hybrid
approaches. Journal of International Marketing. 26(1). pp.30-60.
Online
MARKET ENTRY STRATEGIES. 2020. [Online]. Available
Through:<http://www.tradestart.ca/market-entry-strategies>.