Henleys' International Expansion: A Marketing Strategy for Dubai

This report provides a comprehensive analysis of Henleys' international marketing strategy as it considers expanding into the Dubai market. It begins by outlining the scope and key concepts of international marketing, including imports, exports, contractual agreements, and joint ventures, emphasizing the rationale for Henleys to expand internationally to reduce risk and enhance opportunities. The report evaluates the key criteria for selecting an international market, focusing on Dubai's market demand and economic performance. Different market entry strategies are examined, along with their advantages and disadvantages. The global versus local debate is presented, investigating how product, place, promotion, and price distribution differ in international contexts. The report analyzes international approaches to marketing, compares home and international orientations, and assesses competitors, concluding with a discussion of the impact of each approach on Henleys' potential success in the Dubai market.

INTERNATIONAL
MARKETING

TABLE OF CONTENTS
Introduction......................................................................................................................................1
LO 1.................................................................................................................................................2
P1 Analyse the scope and key concepts of international marketing............................................2
P2 Explain the rationale for it to want to market internationally and describe the various routes
to market the organization can adopt...........................................................................................4
LO 2.................................................................................................................................................8
P3 evaluate the key criteria and selection process to use when considering which international
market to enter.............................................................................................................................8
P4 Explain, using examples, the different market entry strategies, including the advantages
and disadvantages of each.........................................................................................................10
LO 3...............................................................................................................................................12
P5 Present an overview of key arguments in global versus local debate..................................12
P6 Investigate how product, place, promotion and price distribution approach differs in variety
of international context..............................................................................................................15
LO 4...............................................................................................................................................17
P7 Analyze and explain various international approaches of international market of client
organization you have adopted..................................................................................................17
P8 Compare home and the international orientation and various ways to assess competitors, by
outlining the impact of each approach.......................................................................................19
Conclusion.....................................................................................................................................21
References......................................................................................................................................22

LIST OF FIGURES
Figure 1: Dubai retail market...........................................................................................................5
Figure 2: Different routes to market................................................................................................6
Figure 3: Dubai retail sales..............................................................................................................8
Figure 4: Economic sector of Dubai................................................................................................9
Figure 5: Global marketing approach in international market.......................................................13
Figure 6: EPRG approach for international marketing..................................................................18

Introduction
International marketing is concerned with suitable means that includes application of marketing
principles on global level. This includes trading and selling goods to other countries other than
operating in single country. Current report is based on the case study of Henleys that is one of
the men and women wear brand in Manchester, UK. Due to increase in competition, business
wants to expand globally in different markets such as Dubai to earn more sales and revenue.
Current report will discuss about scope for Henleys to expand globally into different markets.
Entry to selection of markets is illustrated with following suitable process that will help
organisation to enter into different markets. Moreover, different elements of marketing mix will
be discussed to investigate about distribution of product into different markets with following
suitable strategy. At last, different approaches of international marketing can be adopted by
Henleys to follow suitable strategy to expand in global markets.
1

LO 1
P1 Analyse the scope and key concepts of international marketing
International marketing and its scope:
Increase in scope of potential markets, it is important for brands to improve their global presence
with having whole information to expand in global markets. Reasons for awareness of such
markets are due to growth of internet, social media, advertisements, etc (Armstrong et.al. 2015).
Globalisations are also one of the main reasons that has witnessed the growth and scope of
international marketing. Economy is Dubai is one of the potential opportunities for business that
is enabling Henley to expand business. Suitable scope of international marketing includes:
 Imports: here, business will buy products from the international market and then resale it
to suitable customer base. This tends to improve the business relations from other
countries that will bring creativity in the production and supply line. This will help to
achieve the objective with the help of unique of solutions.
 Exports: Trading the products and services to another country by the same on social
media that includes abiding rules and regulations of both the home country and also
international country (Papadopoulos and Heslop, 2014). Here, Henley wants to ship
products from UK to Dubai markets.
 Contractual agreements: Business moving to international level has more extended
scope of doing more business. For international trade, business needs to make different
contracts with others. This can be either in terms of licensing and even technical
assistance. It includes agreements of trademark, patents, brand names, etc that is gaining
more presence in global markets.
 Joint venturing: Sometimes to expand in international markets, business needs to take
assistance of expanding to different markets for suitable period of time. It includes
venturing the brands with dividing the profits and losses. This will increase the expansion
value of business and framing more relations that will increase the scope of international
marketing (Samiee et.al. 2015).
Rationale to international marketing
2

Henleys need to expand business for enhancing the revenues and increase the presence among
suitable base of customers. There are different reasons for business to expand internationally that
includes:
 Reduces risk and enhances opportunities: Global markets generally reduce risk and
increase the opportunities of global market expansion. Dubai is one of the huge markets
that enhance business to attract customers. This country is one of the resourceful places
to generate revenues and business profits.
 World trade organisation has lead to open potential opportunities to trade in different
countries (Skarmeas et.al. 2016). Also internet technology trends are leading to accept
market system that includes meeting with satisfaction of the customers.
 Business with global expansion will observe effective management of resources and
gaining efficiency. Social media, Internet, cloud and mobile technology is providing
larger opportunities to reach across global barriers without facing major barriers.
Global and consumer trends
Increasing customer demands: Perception of the consumer regarding brand purchase is
increasing as it is affordable and reasonable for the consumers. But at the time of recession many
customer back out for purchase. This is one of the challenging factor but management need to
perform adequate market research before expanding into global markets. It is necessary for
Henleys to plan such strategy that will overcome people to switch towards substitutes. However,
Henleys need to increase the criteria of investment towards social media and internet.
Spreading social information: Media, social sites, news, etc are having major sort of
information about consumer and rising trends. However, Henley can be benefited with proper
customer relations and focussing on social media that will lead to provide information about the
products. Challenges are related to data protections and that need organisation to respond
towards it (Kotabe and Helsen, 2014).
Effective opportunities: Global market provides opportunities to make new relations and
improve the strategies of marketing that will develop stronger base of consumers. However,
business will also lead to improve the brand presence and will invite more and more investors to
invest in the operations of the business.
3

P2 Explain the rationale for it to want to market internationally and describe the various routes to
market the organization can adopt
Marketing plays critical role in business promotion that will help to expand internationally. It is
necessary for business to use Pest analysis as the tool for analysing the potential of Dubai
market. Some of the factors are explained below that defines the rationale to expand business
into other markets.
Political factors: Political conditions of the Dubai are not that favourable but government allows
businesses of other countries to have expansion of the business. International players of different
markets exist and they are operating well on the platform. There are slight increase in the
shopping malls and increase in the sales of branded products (Kotabe and Helsen, 2014).
Business need to analyse the regulation that are imposed by the government on other countries
brand. It is necessary for business to take the benefit of plans and policies of the government for
gaining country advantage.
Economic factors: These include the economical stability of the country which affects the
business of Henleys. Dubai has the stable economy that attracts more and more businesses. Tore
variety of fashion brands are produced to the consumers as it is in major demand. Dubai is one of
the top ten among the attractive market that is the potential place for doing the business. It has
high rate of per capita income where the people will have high purchasing power.
Social factors: Dubai is quite expensive that have different cultures but people have the
perception of consuming branded products where consumers are having the knowledge of correct
markets (Johanson and Mattsson, 2015). Youth of the market is attracted towards purchasing
new brands of clothes. However, diverse variety of culture can be challenging but effective
decision making of business will be effective to meet with demands of the customers.
4

Figure 1: Dubai retail market
(Source: propertywatch.ae, 2018)
Technological factors: Dubai being a huge market has existing retail players and strategies to
attract consumers. It is suitable for Henley to take effective advantage of online platform that
will avoid the cost and perform market research to analyse the taste and preferences. However,
actual demand can be fulfilled by meeting with adequate supply of products and services.
Routes to international market
There are different routes to international market but it depends upon the choice of the business
to choose the best for increasing sales and revenues of the business. Market research will lead
Henley to analyse about reaching the potential markets (Hafeez et.al. 2016). This includes both
direct and indirect routes that want to reach the potential markets.
Direct routes: It is necessary for Henley to keep in mind the value proposition and target
audience. It is effective to have the high cutting edge for increasing the sale of clothing for men
and women. Stakeholders are responsible for sale the goods to increase the value propositions of
the business. Moreover, public relations are the campaign that are organised and also websites
can support to attract customers and meet with expectations of the stakeholders.
Indirect routes: Henley can take support of wholesalers, retailers and high street fashion
retailers that will lead to enter into the international markets. For example, business can frame
5

contracts and agreements with the existing retailers that are leading in marker to know about the
current strategies that are adopted by businessmen’s.
Figure 2: Different routes to market
(Source: International market routes, 2018)
Opportunities and challenges to enter international markets
Opportunities:
 Global marketing opportunity have the opportunity of global market expansion that will
help in gaining effective scope of exporting, importing and exporting in foreign markets.
With this management of the business will be effective to manage the resources and
deliver optimum quality that will help in collaborative arrangements with the foreign
partners (Barnes and Lea-Greenwood, 2018). There are different strategies that can be applied that will help in establishing cost
effectively productions and also will lead to exploit the business opportunities.
International expansion will leads to observe less tax, regulations and increase the
economies for scale and scope will lead to gain more revenue and profits.
Challenges
6

 It is challenging factors for the business to handle the emerging forces and unseen
influences can be observed within the business. Business will develop new strategies of
doing the business and attract more bases of customers. It is necessary for business to
change the way of doing and plan new marketing strategies.
 Uncomfortable with the foreign cultures will lead to develop uncertainty and risky
conditions for the business (Al Faris and Soto, 2016). Internet, media,
telecommunications system need to be implemented to avoiding such risky conditions of
the business.
 Changing demands of consumers and tastes and preferences will lead business to face
risk of planning new strategies. This can be due to increase in higher competition rate in
foreign markets that can gain hinder competitive advantage.
7

LO 2
P3 evaluate the key criteria and selection process to use when considering which international
market to enter
Criteria include having the accurate choice of selection that will help in effective market to enter.
Decisions of the business are based on having the improvement in future performances along
with promotion of the business that includes:
Market demand: Dubai is structured with huge market and huge size of populations that have
high spending power that attract them towards clothing purchase (McFarlin and Sweeney, 2014).
According to the below image, retail sector has also observed positive growth in attracting more
customers and gaining suitable market share.
Figure 3: Dubai retail sales
(Source: Euro monitors international, 2018)
Performance:
8

Economy of country as a whole is stable and GPD is also continuously increasing that is
increasing the expansion of spending of consumers on clothing. Dubai is one of the growing
sectors that offer the opportunity for retail sector businesses to expand in Dubai. Moreover,
continuous rise in GDP is adequate that business will does not have to face much risk of changes
in economic conditions of the business (Gereffi and Luo, 2015).
Figure 4: Economic sector of Dubai
(Source: Dubai market share, 2018)
Current trends: Technology and businesses are one of rising trends in Dubai where the people
prefer online shopping to the greater extent. Social media and internet platform will provide
opportunity for Henley to offer attractive websites and discounts for attracting more and more
customers. Henley can attract people of Dubai towards online shopping by offering attractive
discount packages and sale for expanding internationally into different markets.
Environmental factors: Dubai has strong environmental conditions that are effective for
attracting more and more businesses (Trudgen and Freeman, 2014). Tourism footfall is also to
greater extent that will maintain stability in the business sales with having the strong marketing
strategy. Clothing have challenges due to changes in weather conditions such as winter, summer,
rainy that can cause fluctuations in demands of the customers.
Selection of international market
9