Icebreaker's International Marketing: Strategies and Analysis

This report provides a comprehensive analysis of Icebreaker's international marketing strategies. It begins by examining key factors for global expansion, including defining a point of difference, establishing a clear vision, maintaining brand control, leveraging local expertise, balancing central and local operations, and scaling quickly. The report then analyzes specific international marketing strategies such as licensing, franchising, and collaboration. It identifies Icebreaker's domestic and international competitors, including Ibex, Smartwool, Uniqlo, and Mufti, and uses a positioning map to illustrate their competitive landscape. The report further explores the international marketing strategies Icebreaker could implement in Japan, India, China, and Bhutan, considering market opportunities and constraints, and justifying the chosen approaches. Finally, the report analyzes international marketing strategies of other organizations and provides the reasons for undertaking a different approach.

Running head: MARKETING
Marketing
Name of the student
Name of the university
Author Note

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Table of Contents
Task 1.........................................................................................................................................3
1. Defining point of difference...............................................................................................3
2. Clear vision about going global..........................................................................................3
3. Control of brand and close to the customers......................................................................4
4. Locals in overseas market..................................................................................................5
5. Balance about centrally and locally run.............................................................................5
6. Scale quickly and accommodate growth............................................................................6
Task 2.........................................................................................................................................7
Question 1...............................................................................................................................7
Analysing international marketing strategies used by Icebreaker..........................................7
Question 2...............................................................................................................................8
a. Analysing international and domestic competitors of Icebreaker......................................8
b. Summary of competitors and opportunities of Icebreaker.................................................8
Task 3.........................................................................................................................................9
Part 1.......................................................................................................................................9
International marketing strategy Icebreaker could implement for each target market...........9
Evaluating opportunities and constraints of the market.......................................................10
Justification of the strategies................................................................................................10
Part B....................................................................................................................................11
Analysing international marketing strategy on the selected organisations..........................11

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Reasons for undertaking a different approach......................................................................17
Bibliography.............................................................................................................................22

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Task 1
1. Defining point of difference
In order to expand into the international market, it is necessary that Icebreaker
undertake an analysis of the external factors that may affect its opportunities in the
international area. For Icebreaker, the point of difference that can be undertaken in order to
understand its capabilities in the market includes the use of merino wool in the international
market (Icebreaker.com, 2019). It can be seen from the analysis that Icebreaker works with
simplicity and thus have the best results in the New Zealand market (Icebreaker.com, 2019).
However, the simple approach may not be enough to gain opportunities for success.
For example, the vision of Icebreaker is to expand in China (Icebreaker.com, 2019).
The analysis shows that the way of conducting business in China is different from in New
Zealand. Thus, it can be said that the point of difference that exists in the expansion is of the
manner in which Icebreaker can apply itself in terms of operations as well as the structural
approach that is needed for gaining success in the international market (Icebreaker.com,
2019). Hence, it is necessary that excessive changes not be made but the application of tools
required for expansion be undertaken.
2. Clear vision about going global
For the global expansion to take place, it is necessary that Icebreaker have a clear
vision so that success can be attained while going global in the market. The success of
Icebreaker in terms of going global can be attributed by the vision of its founder Jeremy
Moon (Icebreaker.com, 2019). The vision was that a global perspective needed to be from the
start so that later pains of growth can be avoided (Icebreaker.com, 2019). The reason is that
the growing pains are the reasons for holding the start-ups back. However, currently, analysis

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has shown that over 80 competitors of Icebreaker offer merino wool within their range
(Icebreaker.com, 2019).
Therefore, for Icebreaker the agile business is necessary along with the repositioning
of its organisational structure. In this regard, it can be said that the development and set up of
a proper vision at the start have been influential in the growth and development of Icebreaker
and have helped in its expansion (Icebreaker.com, 2019). The fact that Icebreaker had been
ahead of its time in terms of manufacturing merino wool had also helped in gaining a proper
vision of expansion for the company (Icebreaker.com, 2019).
3. Control of brand and close to the customers
The brand that is in focus is the manufacturing of high quality merino wool for the
manufacturing of clothes. For Icebreaker, the thought that the use of merino wool is in scarce
can be considered as one of the options for the adoption of dominant synthetic
(Icebreaker.com, 2019). The editing of the market can help merino to have constant benefits
of wool and ensure that the market share of the company erodes. This had a high level of
influence over the competitors as the adoption of merino products had been a signature move
in the cloth manufacturing market (Icebreaker.com, 2019).
At the same time, proper attachment is required to be made with the customers so that
the manufacturing as well as the production of merino wool can help in the development of
the company (Icebreaker.com, 2019). The demands of the customers particularly outside the
country need to be taken into account so that Icebreaker can invoke the simplicity in its
methods used for gaining market dominance (Icebreaker.com, 2019). Therefore, from the
analysis, conclusion can be made about the importance of the brand as well as the closeness
that Icebreaker have against its customers (Icebreaker.com, 2019).

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4. Locals in overseas market
Expansion in the global market always accounts for the best development of an
organisation. However, Kotler et al. (2015) is of the opinion that one of the important things
that are to be taken into consideration is that of the involvement of the local people in the
overseas market. The reason for the importance of this strategy is that for Icebreaker, locals
in the overseas market can provide good knowledge and understanding of the unwritten rules
that exists (Icebreaker.com, 2019). According to Lovelock and Patterson (2015), local
knowledge can help in the expansion of the company and ensure that success of the company
can be guaranteed.
Similar example of the opportunities gained after its potential expansion in China, can
be considered as an example about the importance of local in the overseas market
(Icebreaker.com, 2019). The aspect related to operations, structuring as well as the customer
profile that exists needs to be analysed based on the identification of the locals in the overseas
market. Thus, it can be concluded that knowledge about every locals, irrespective of the
market, rules and regulation as well as workers need to be taken into consideration during
expansion in the overseas market.
5. Balance about centrally and locally run
A balance is required to be made between the central and local running of business
along with the operational tactics that are to be undertaken. It is necessary that for Icebreaker
that a central balance be maintained which can help in the development of the brand in the
international market (Icebreaker.com, 2019). Icebreaker need to understand the importance of
the brand as well as ensure that the central focus of the business is on the expansion of the
brand in the overseas market (Icebreaker.com, 2019).

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At the same time, the local market needs to be analysed so that proper knowledge
about the regulations and customers can be gained. The centrally run business also need to
include gaining an ethical start to the business so that the manufacturing and production of
the merino wool can be made legal despite the scarcity of wool in the market
(Icebreaker.com, 2019). In this regard, it can be said that balance between the central as well
as the local market need to be maintained so that Icebreaker can continue with its business in
the local market (Icebreaker.com, 2019).
6. Scale quickly and accommodate growth
According to Kotler et al. (2018), in order to succeed in the overseas market, it is
necessary that organisations scale the highest order quickly so that they can accommodate
growth in the business. Therefore, it can be said that for Icebreaker, it is necessary that the
company undertake an analysis of the marketing factors that exist in the overseas market and
at the same time ensure that growth be developed based on the application of the strategies
that exist in the overseas market (Icebreaker.com, 2019).
For Icebreaker, it is necessary that scaling the new levels of the international market
be done quickly so that it can avoid the immense competition that may be faced from the
domestic companies (Icebreaker.com, 2019). Thus, it can be said that for the development of
proper marketing strategies, Icebreaker need to enhance the growth strategies that exist so
that it can continue to on level terms with the domestic competitors (Icebreaker.com, 2019).
In this manner, Icebreaker can ensure that it holds a strong position in the overseas market
and at the same time accommodate growth via the technical expertise that exists in the
company (Icebreaker.com, 2019).

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Task 2
Question 1
Analysing international marketing strategies used by Icebreaker
In order to ensure its success in the market, Icebreaker needed to undertake certain
strategies that could help the company to realise its potential in the business. One such
international marketing strategy undertaken by Icebreaker is that of licensing of the products.
The licensing of the merino wool can help Icebreaker to make acquisition of the local market
and thus, reduce competition (Icebreaker.com, 2019). At the same time, another marketing
strategy that can be adopted by Icebreaker is the franchising. The franchising can help
Icebreaker to ensure that rapid market expansion is made and that scaling and growth of the
company be ensured at a proper time (Icebreaker.com, 2019). The repeatable business model
adopted by Icebreaker can help in transferring other market products.
Along with this, another international marketing strategy that can be adopted by
Icebreaker is the collaborating (Icebreaker.com, 2019). This strategy can be useful as
Icebreaker can overcome the initial scepticism that exists in the market (Icebreaker.com,
2019). As stated by Kerin and Hartley (2015) this can help in making sophisticated strategic
alliance required for the manufacturing of the products. Apart from this, Icebreaker can
implement the strategy of acquiring a company similar to its stature so the proper
manufacturing of the merino wool can be made which in turn can help Icebreaker to remain
active in the international global market (Icebreaker.com, 2019).

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High
Low
GoodPoor
Quality
Price
Icebreaker
Ibex
Mufti
Smart wool
Uniqlo
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Question 2
a. Analysing international and domestic competitors of Icebreaker
Two domestic competitors of Icebreaker can be Ibex and Smart wool. These
companies have been in the market for a long time and Icebreaker can feel threatened by the
competition posed by these two companies mainly because of the revenue as well as growth
that is incurred by the companies (Icebreaker.com, 2019).
The analysis of the international market has brought about the recognition of Uniqlo
and Mufti as the strong competitors of Icebreaker (Icebreaker.com, 2019). Therefore, for
Icebreaker to gain success in the international market, it is necessary that it assess the threats
that are posed by these companies so that it can continue to expand and dominate in the
market (Icebreaker.com, 2019).
b. Summary of competitors and opportunities of Icebreaker
The application of the position mapping can help to identify the competitors and the
opportunities that Icebreaker may have in the market.

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Figure: Competitors of Icebreaker
(Source: Created by author)
The potential opportunities that Icebreaker can gain from the competitors, is that the
company can understand the potential of success that can be gained in the domestic market
and at the same time, identify the external factors and capabilities that are required to be
maintained for expansion in the international market (Icebreaker.com, 2019).
Task 3
Part 1
International marketing strategy Icebreaker could implement for each target market
The four countries from the Asia Pacific regions include Japan, India, China and
Bhutan. The international marketing strategy that Icebreaker can implement for each of the
country and the target market for each of these countries includes the different approaches
based on the strategies. In the case of Japan, Icebreaker can implement the strategy of
licensing as gaining proper licenses for any type of trade relation with Japan can be made in
an easier manner (Icebreaker.com, 2019). Wilson et al. (2016) stated that for India,
franchising could be considered as most of the big retail outlets related to clothing and food
have gained success by the adoption of the franchising in the country.
This can help to gain popularity among the local people before full expansion in the
market. With China, the application of collaboration can be useful as it can help in enhancing
the trade relations with New Zealand. As observed by Tuten and Solomon (2017) one of the
advantages that can be gained by the application of collaborative approach in the Chinese
market is that the different manner of conducting business can be analysed. For Bhutan, the
application of business acquisition can be considered as an important strategy. This is mainly

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because acquisition of low scale industries can help Icebreaker to gain importance in the
country (Icebreaker.com, 2019).
Evaluating opportunities and constraints of the market
The application of the international marketing strategies can help Icebreaker to gain
popularity in the market overseas. However, the countries may pose certain constraints that
may be difficult for Icebreaker to deal (Icebreaker.com, 2019). At the same time, the
opportunities provided by these countries can be considered so that proper assessment about
the application of the strategies can take place.
Opportunities Constraints
Japan (Licensing) Can provide assistance in large
market gains
May require excessive convincing
of the Government
India (Franchising) Can be transferred in different parts
of India
Requires strong brand recognition
China (Collaboration) Can help in aligning two different
business cultures
Requires legal commitment during
formation and break
Bhutan (Acquisition) Can help in splitting the
manufacturing costs
Requires excessive financial
stability
Table 1: Opportunities and challenges
(Source: Created by author)
Justification of the strategies
The justification of the use of the strategies can be done based on the trade relations,
economic stability and the political affairs of the countries. It can be seen that for Icebreaker
to gain importance in the Asian market, it is necessary that the company undertake excessive
research of the market (Icebreaker.com, 2019). This can help Icebreaker to gain the proper

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opportunities as well as identify the challenges in the market so that it can formulate its
strategies in a proper manner.
As observed by Baker (2016) in the case of Japan, justification of the adoption of
licensing can be made can be made as it can help the country to maintain proper trade
relations with New Zealand. This can enrich the economic condition of both countries and
help in making Icebreaker popular. As stated by De Mooij (2019) for India, the application of
franchising can help Icebreaker to gain rapid expansion in the market. India is a vast country
with a huge population hence; any franchises within the market of the country can help in the
development of its brand and can be useful for its growth (Ryan, 2016).
Armstrong et al. (2018) stated that in the case of China and Bhutan, the adoption of
collaboration and acquisition respectively can be justified by the fact that each of the two
countries can enhance their opportunities in the market in terms of establishing good trade
relations and for building its economy. This can help Icebreaker to gain assurance about the
opportunities that it can gain in the local market along with its mode of success
(Icebreaker.com, 2019).
Part B
Analysing international marketing strategy on the selected organisations
The countries identified for potential expansion opportunities of Icebreaker can be
analysed based on the companies that exist which may pose threat or provide Icebreaker with
opportunities for improvement. These companies can be considered as international rivals for
Icebreaker, however with the proper implementation of the international marketing strategies
these companies can be of advantage for Icebreaker (Icebreaker.com, 2019). The countries
selected are specifically in the Asia Pacific region and the companies are reputed clothing
brands of the respective countries.