International Marketing Strategies for The Furniture Practice

This report provides an in-depth analysis of international marketing strategies for The Furniture Practice, a furniture-related services company. It begins by defining international marketing, outlining its scope, and differentiating it from local marketing. The report then examines key concepts and the rationale for international expansion, specifically focusing on The Furniture Practice's objectives. It explores various routes to market, including direct and indirect approaches, recommending indirect routes for the company. The analysis further delves into the opportunities and challenges associated with international marketing, such as currency fluctuations and regulatory issues. The report evaluates international markets, emphasizing the importance of understanding cultural and legal factors. It also details the key criteria and selection processes for entering international markets, along with different market entry strategies like joint ventures and turnkey projects, including their advantages and disadvantages. Finally, the report applies market evaluation criteria, entry strategies, and provides recommendations tailored to The Furniture Practice's context.

International Marketing
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
P1 Determine the scope and key concepts which take place in international marketing............3
P2 Describe the rationale for organisation who is planning to market internationally and also
describe various routes to market adopted by them....................................................................5
M1 Determine the opportunities and challenges take place in marketing internationally..........6
D1 Evaluation of international market so that organisation would able to adopt effective
marketing strategies....................................................................................................................6
TASK2.............................................................................................................................................7
P3 Key criteria and selection process process to enter international markets.............................7
P4 Determine different market entry strategies along with its advantages and disadvantages...7
M2 Application of market evaluation criteria, entry strategics and make recommendations in
context of chosen organisation....................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
The organisations working in the changing business environment are taking steps to
expand their business in the international marketplace by planning and implementing new
strategies. International businesses provide support to those organisations who want to grow in
marketplace and experience various advantages (Cateora and et. al., 2020). For introducing
business in international marketplace the organisation need to work hard where they have to
consider many aspects such as trends in marketplace, preferences of customers, government
rules, etc. The organisation chosen for this report is The Furniture Practice. The company was
established in year 1997 and provide furniture related services to various architects and designers
working for corporate clients. The company is taking steps in bring innovation in its work so that
they would able to provide better services to its clients. The company is working with
approximately with 25 employees and its revenue is $ 4 million (The Furniture Practice. 2020).
The topics covered in the report are scope and concept in international markets, different types of
markets, advantages and disadvantage faced by company in formulating international strategies,
marketing mix adopted by company in international market and evaluation of strategies used by
competitors.
TASK1
P1 Determine the scope and key concepts which take place in international marketing.
International marketing is define as process in which progressive steps are taken by the
business organisations with the motive to expand its business in international marketplace. It
plays important role as it helps company in achieving success and focus on its development in
the global market (Gnizy, 2019). In the process of business expansion in international
marketplace, the company identifies the various strategies adopted by its competitors so that it
would able to take competitive advantage.
Difference between local and international market
Bases Local market International market
Meaning The companies dealing in local
market focuses on smaller
target audience. These
The companies dealing in
international market formulate
generalised message
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organisations serve limited
areas.
containing important
information for its large target
audiences. These organisations
serve large market area that is
across the globe.
Scope in international marketing
The Furniture Practice is focusing on coming up with new innovative services with the
motive to expand its business (Javalgi and La Toya, 2018). Hence, they have large scope in
international marketplace where with the help of experienced staff members they would able
formate effective strategics which help in achieving desire objectives. Hence the global
marketing scope of The Furniture Practice is explained below-
 Export services- The company will export its goods in the different counties in which
they are operating with the primary motive to increase its profit margins by gaining the
attention of clients towards the goods and services provided by the company. With the
help of exporting services the company would able to make people aware about its
existence in market and the range of products it is offering. Hence, exporting has boarder
scope for, The Furniture Practice Ltd as they would directly able to reach to its potential
customers and able to maximise its sales and profit margins.
 Own manufacturing- The company by establishing its own manufacturing unit would
able to meet the demand of its customers in effective manner. The company will be
competent to offer its products and services in new marketplace. It would be able to
provide better quality products and services to its clients in comparison to its competitors.
International marketing key concepts
In international marketing there are various concepts which take place according to the
different situations (Kaufmann, Czinkota and Zakrzewski, 2015). In content of global marketing
the key concepts in context of The Furniture Practice is as follow-
 Domestic marketing- This method is adopted by organisation in the situation where they
want to target local audience in domestic market. The Furniture Practice is focusing on
its designs with the motive to satisfied its customers by fulfilling their needs a d demand.
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 International trade- In this the focus of the company is to carry its promotional activities
in effective manner in order to make its potential customers aware about its new offering.
P2 Describe the rationale for organisation who is planning to market internationally and also
describe various routes to market adopted by them.
In this changing business environment where organisations are helped dependent on new
technology they would able to attract large number of customers and can take competitive
advantage (Leonidou and et. al., 2018). Through entering into new market respective
organisation has to operate practices of business. It will be aids firm to sales their offering to
audiences of international nation. It is vital for chosen firm to develop activities of business and
increase their performance. The management of The Furniture Practice need to focus on its
activities and operations in order to established its business successfully in new market. Mainly
by adopting digital marketing strategy the company is focusing on increasing its sales in the
international marketplace.
Routes to market globally
There are various ways available in which an organisation would able to market its
offerings at international level (Malhotra, Nunan and Birks, 2017). The higher authorities of The
Furniture Practice along with its management team need to evaluate and examine all the routes in
order to enter in the international market. With the help of appropriate route the company would
be able to establish its brand name in international market and able to maintain its quality. The
Furniture Practice, may adopt following two routes in the process of entering in new marketplace
which are explained as follow-
 Direct routes- With the use of direct routes The Furniture Practice, would able to directly
communicate with its potential customer and provide them information on its offerings.
Moreover it is one of the effective method as they would able to known the responses of
customers on spot and accordingly can improve its offering. The main objective behind
selection of direct route is to establish strong relationship with its potential clients and
take feedback from them so that necessary changes can be done.
 In direct routes- With the use of indirect routes the focus of The Furniture Practice is to
connect with third party for promotional activities. When company is planning to enter in
the international market, with the help of third party they identify the trends and
preferences of customers with the motive to capture market.
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From the above explained method it will be appropriate for The Furniture Practice, to
adopt indirect routes for entering in the international market. As it is small scale organisation, so
it will be better to establish strong relation with third party and after effective study of the market
thy should take step to enter in new marketplace (Moon and Oh, 2017). Furthermore, they do not
have this much fund available to enter directly in the new market without any external support.
M1 Determine the opportunities and challenges take place in marketing internationally.
In the process of establishing business in international market, The Furniture Practice
need to face various various challenges along with wide range of opportunity which are as
follow-
Opportunities Challenges
In context of The Furniture Practice, they are
operating in London, UK which has quite
favourable climate situation that is company do
not face any major difficult. This will help in
better understanding of environment of other
counties and they would able to take corrective
steps in future.
The major challenge which company will face
in new market that is in international market is
fluctuations in currency and frequent changes
in it rates.
The Furniture Practice in London able to stand
on the desires of customers. They are
performing quite well in London marketplace
and able to increase its revenue. They are
focusing on innovation and with its unique
products it would able to attract customers in
international market.
Other challenges which company is facing is
that the changes in the rules and regulation of
government policies create difficulty and they
have to deal with various legal issues.
D1 Evaluation of international market so that organisation would able to adopt effective
marketing strategies.
The higher authorities along with management will focus on formulating effective
strategies according to the culture and preferences of customers of country in which they are
planning to enter (Oyewole, 2018). As trends, taste, preferences, etc of people differ from place
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to place and The Furniture Practice, need to understand this before establishing its business.
They have to spend their time in understanding the rules and legal policies of government so that
they do not break any rule and able to carry its work in effective and efficient manner. The taste
and preferences of people differ from place to place so according to their nature the business
strategies would be formulated by company. Moreover the legal and economic factors also effect
the operations of business so company should identify them and make its marketing strategy in
order to make people aware about the company and its range of products and services.
TASK2
P3 Key criteria and selection process process to enter international markets.
The primary motive of many organisation is to expand their business in new market and
increase its sales and profit margins (Paul and Mas, 2020). The business organisation need to
identify the most appropriate method to enter in the international market. The various methods to
enter international market are joint venture, franchising, partnership and branching.
The Furniture Practice, is the small scale business organisation operating in UK, which
has able to satisfy its potential customers and is focusing to enter new marketplace. Since 1997,
the company is operating in UK and is planning to expand its business by entering new
marketplace and increasing its profit by 10%. The company is planning to expand its business in
Europe and America. The selection process for company includes identification of the market
they want to enter, the type of customers they want to target and the value of proposition of the
organisation (Paul, 2019). This will help the management of The Furniture Practice, to make
effective decisions which provide great support in accomplishment of desire results. The primary
focus of the leaders and management is to analysis the internal and external factors that will
impact the operations of the business in the positive or negative manner. These factors are GDP
of the country, political factors, etc. They should also focus on the strategics adopted by its
competitors so that they would be able to take effective steps in order to gain competitive
advantage.
P4 Determine different market entry strategies along with its advantages and disadvantages.
The Furniture Practice is taking steps for enhancing and expanding its business in the
market of Europe and American by studying there market conditions and accordingly
formulating different marketing strategics.
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Joint Venture- It is the process in which two or more parties or companies from an
agreement. According to agreement they share profits, risks, and other functions together to carry
the new business in effective and efficient manner.
 Advantage- The main advantage of working in joint venture is that company have better
resources and able to formulate effective strategies which helps in accomplishment of
goals and objectives.
 Disadvantage- All the members working together need to take decisions with mutual
understanding due to which changes of conflict are high and lead to deal in the working
process.
Turnkey projects- It is a process in which with the help of small projects organisation
take work where it designs and reconstructs its business with advance tools and equipments.
 Advantages- This method is quite beneficial for the organisation where for difficult
projects they may hire organisation who take turnkey projects on contact bases. All the
duties and responsibilities related to project are on the other organisation and it will help
the company in managing organisational work in effective and efficient manner.
 Disadvantage- The expenses will increases as company need to pay another organisation
for doing their work. Hence they have to focus on reducing other expenses in order to
maintain the cost budget (Prime and Usunier, 2015).
Partnering- It is an effective process where organisation is run by individuals in
partnership that is they are equally responsible for all decisions and activities.
 Advantage- Companies working in partnership able to work effectively as they can take
decisions together and able to expand their business by making strong relation with
potential customers.
 Disadvantage- The changes of conflict are high as miscommunication may lead into
wrong performance of activities due to which work process get delayed.
From the above discussion it will be appropriate for The Furniture Practice to form
partnership with other well established international brand as with this they would able to enter
international marketplace successfully and establish its brand name there (Rana and Sharma,
2016).
Challenges and opportunities
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 Challenges- In context of The Furniture Practice, they are facing many challenges in
order to enhance and develop its business in marketplace. In furniture business there are
already large number of companies working at international level hence, company have
to compete with them and have to come up with unique products in marketplace.
 Opportunities- In context of The Furniture Practice, they are having large number of
opportunities that is they are currently operating in London where they are able to satisfy
customers. The management is focusing on introducing innovation in its products and
services with the motive to attract more number of customers and increase its sales.
Furthermore, they have the opportunity to expand its business in international
marketplace.
M2 Application of market evaluation criteria, entry strategics and make recommendations in
context of chosen organisation.
For expanding business, The Furniture Practise needs identify the target market which
company will be serving with products and services (Samiee, Chabowski and Hult, 2015). The
company needs to determine the needs and wants of final consumers, preferences, current market
demand and trends to develop the appropriate marketing plans and strategies. Marketing plans
and strategies should be prepared in a manner which covers all important market factors like
consumer expectations, the pricing strategies, competitive pricing policies and marketing plans,
position of competitive brand in the market etc. Marketing campaign should position the
products and services of The Furniture Practise in minds of consumer. The company should
choose an effective supply chain which is economical. An effective supply chain will provide the
products and services available to right customers at right time. The company need to spend its
time in studying the needs and preferences of customers so that it would able to make changes in
its products and services to attract customers (Schlegelmilch, 2016).
CONCLUSION
From the above report it has been concluded that business organisation need to analyse
market in order to grow and develop its business. For expanding business in international
marketplace they have to focus on external and internal factors so that effective strategies can be
formulated in order to accomplish the desire goals and objectives. In order to enter new market
the main focus must be on identifying the current trend in the market place and the preferences
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of the customers. Secondly they should spend time in analysing the strategies and techniques
used by competitors so that company would able to take corrective actions in order to take
competitive advantage.
REFERENCES
Books & Journals
Cateora, P. R. and et. al., 2020. International marketing. McGraw-Hill Education.
Gnizy, I., 2019. The role of inter-firm dispersion of international marketing capabilities in
marketing strategy and business outcomes. Journal of Business Research. 105. pp.214-
226.
Javalgi, R. G. and La Toya, M. R., 2018. International marketing ethics: A literature review and
research agenda. Journal of Business Ethics, 148(4). pp.703-720.
Kaufmann, H. R., Czinkota, M. R. and Zakrzewski, M., 2015. B2B and internal relationships and
curative international marketing: A polish case study. Industrial Marketing
Management, 51. pp.69-78.
Leonidou, L. C., and et. al., 2018. International marketing research: A state-of-the-art review and
the way forward. Advances in global marketing. pp.3-33.
Malhotra, N. K., Nunan, D. and Birks, D. F., 2017. Marketing research: An applied approach.
Pearson Education Limited.
Moon, B.J . and Oh, H. M., 2017. Country of origin effects in international marketing
channels. International Marketing Review.
Oyewole, P., 2018. International marketing of services and developing countries. Services
Marketing Quarterly, 39(2). pp.79-91.
Paul, J. and Mas, E., 2020. Toward a 7-P framework for international marketing. Journal of
Strategic Marketing, 28(8). pp.681-701.
Paul, J., 2019. Marketing in emerging markets: a review, theoretical synthesis and
extension. International Journal of Emerging Markets.
Prime, J. C. U. N. and Usunier, J. C., 2015. Marketing international. PEARSON FRANCE.
Rana, S. and Sharma, S. K., 2016. A review on the state of methodological trends in international
marketing literature. Journal for Global Business Advancement, 9(1). pp.90-107.
Samiee, S., Chabowski, B. R. and Hult, G. T. M., 2015. International relationship marketing:
Intellectual foundations and avenues for further research. Journal of International
Marketing, 23(4). pp.1-21.
Schlegelmilch, B. B., 2016. Global marketing strategy. Cham: Springer Nature.
Online
The Furniture Practice. 2020.[online available through;<https://www.zoominfo.com/c/the-
furniture-practice/348509427>]
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