An Analysis of International Marketing Strategies for Absolute Vintage

This report delves into the intricacies of international marketing, focusing on the case of Absolute Vintage, a UK-based clothing retailer, aiming to expand into Portugal. The report commences with an introduction to international marketing, defining its scope and key concepts, and then proceeds to analyze various routes organizations can adopt for international market entry, such as licensing, agents, and subsidiaries, along with their strengths and weaknesses. A significant portion is dedicated to the market selection process, emphasizing the importance of country identification, preliminary screening, and test marketing. The report further explores international marketing strategies, including their advantages and disadvantages, and examines the global versus local debate concerning product, price, place, and promotion. Finally, the report analyzes international marketing approaches for Absolute Vintage, comparing home and international orientations and assessing competitor analysis, highlighting the implications of each approach. The report aims to provide a comprehensive understanding of international marketing principles and their practical application in a real-world business scenario.

INTERNATIONAL
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
P1 Analysing scope and key concepts of international marketing..............................................1
P2 Various routes an organisation can adopt for international marketing..................................3
TASK 2............................................................................................................................................4
P3 Selection process considering before entering into international market..............................4
P4 International marketing strategies including its advantage and disadvantage.......................5
TASK 3 ...........................................................................................................................................7
P5 An overview of key arguments in global versus local debate...............................................7
P6Investigating product, price, place and promotional distribution approach differs in variety
of international context...............................................................................................................8
TASK 4............................................................................................................................................9
P7 Explain and analyse the various international marketing approaches your client
organisation can adopt.................................................................................................................9
P8 Compare home and international orientation and ways to assess competitors, outlining the
implications of each approach...................................................................................................11
REFERENCES..............................................................................................................................13
.......................................................................................................................................................14

INTRODUCTION
International marketing is basically defined as performance of business activities
designed to plan, price, promote and direct flow of company's goods and services to customer.
Main objective is to make profit by selling products or services in geographic which create a
demand for them (Wang and Wu, 2012). It is simply application of marketing principles to more
than one country. In other words it can be defined as exchange of goods and services between
different nations marketers involving buyers and sellers. In this report organisation chosen is
Absolute Vintage, a clothing store for men's and women's fashionable clothes, shoes and
accessories, London United Kingdom. It sell high quality, great value clothing and home
products and outstanding food quality. Now they have decided to expand their business in
Portugal with help of international marketing. This report is going to analyse scope and key
concepts of international marketing and various routes to enter into international marketing.
Evaluating and selecting process in which an organisation is going to enter in international
marketing by using examples and marketing strategies including advantage and disadvantage.
Moreover investing how its product, price, place and promotion distribution approaches differs
in variety of international context. Analysing international marketing approaches adopted by an
organisation. Furthermore, comparing home international orientation, its ways to access
competitors with implication of each approach.
TASK1
P1 Analysing scope and key concepts of international marketing
Concept of international marketing
International marketing is application of marketing principles to satisfy the varied needs
and wants of different people residing across national market. It help organisation to come and
play in outer market and become self dependent, and its promotional strategies began getting
huge response(Buckingham and Jepson, 2013). It basically help an organisation in seeking new
marketers to spread its product and services at international markets. Moreover, international
marketing is application of marketing strategies and principles in more than one country. It is
based on extension of company's local marketing strategy, with special attention paid to
marketing identification, targeting and decision internationally. Thus, it as planning process of
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conception of pricing, promotion and distribution of goods and services to create exchanges that
satisfy individual and organisational objectives.
Scope of international marketing:
The scope of international marketing is a wider in nature and constitutes in following
area. Such as:
Exports and Imports: International trade can be good beginning to venture into
international marketing. By developing international markets for domestically produce goods
and services a company can reduce risk of operating internationally (Nsamba, 2016). The export
and import will help manger of Vintage to develop their products and services in international
market by reducing risk factor and adequately gain experience of it.
Contractual Agreements: Patent licensing, turn key operations, co production help in
licensing is important in all part of international marketing. Licensing includes all part of
contractual agreements which will help mangers of Vintage, whereby intangible assets such as
patents, trade secrets, know how, trade marks and their brand names. It will help to lead their
brand names in foreign firms in return of fee.
Joint Ventures: Joint venture is form of collaborative association for a considerable
period. This will help mangers of Vintage to come into existence of foreign investors acquires
interest in local company and vice versa or overseas local firm jointly forming a new venture.
Moreover, it is helpful where fully owned firms are not allowed to operate, joint ventures is the
basic alternatives.
Mergers and Acquisitions: Mergers and acquisitions provide to access to markets,
distribution networks, new technology and patent rights. The managers of Vintage can also help,
mergers and acquisitions with other country to grow in international market. This will help to
reduce level of competition of their business if they acquire to go merger and acquisitions.
Strategic alliances: A firm is able to improve its long term competitive advantage by
forming strategic alliance with its competitors (Rajagopalan, 2015). This method will help
managers of Vintage in leveraging critical capabilities, increase flow of innovation and increase
flexibility in responding to market technologies. Further, strategic alliances mostly differs from
propose and structure of organisation.
Factors affecting international marketing
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The rapid growth of World Trade organisation and regional free trade as well as trend
towards acceptance of free market system among developing countries. One of the burgeoning
impact of internet, mobile phones and other global media by adopting availability of resources
of global environment in an effective manner.
Critical evaluation of international marketing:
Positive impact: International marketing help an organisation to evaluate and develop a
particular organisation in expanding their business at international level. It will help a respective
organisation to assist its brand image as well as increase their market share in an effective
manner.
Negative impact: If an organisation fails to adopt proper strategies then they will not able
to attain sustainability for longer period of time. Moreover, an organisation may have many
restriction or else firm have to accept or expect risk factor.
Thus, the above mention are some of scope of international marketing that help Vintage
in growing and developing its product and services in international market.
P2 Various routes an organisation can adopt for international marketing
Mode of entry into an international market are channels which an organisation employ to
gain and entry to new international market. Some of the routes that will help managers of
Vintage do develop their product and services in international marketing. They are determined
below:
Licensing: Licensing includes franchising, turkey contracts an manufacturing contract. It means
that an organisation is charge fee or loyalty for use of its technology, brand or expertise (Baber
and Upadhyay, 2015). This will help Vintage in providing branding, concepts, expertise and in
fact most faces that are needed in operating overseas market to franchisee. Moreover, build its
own plant of manufacturing is one of major strategies. It often includes training and development
of employees, acquiring investment from banks and other financial institution.
Strength: Licensing will help an organisation to create an opportunities for passive
income, creating business opportunities and easier entry into foreign markets.
Weakness: Entering into international market place with adoption of licensing have
negative factors too such as loss of control over business or else risk of poor strategy may lead
to execution of damaging product success.
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International agents and distributors: Agents are often an early step into international
marketing. It simply puts that agents are contracted of business and market on behalf in a
particular company. It will help managers of Vintage to intend in international marketing.
Moreover, they will have an incentive to make products and make profit from them. It do have
certain porns and cons if an organisation is not able to maintaining good relationship with their
respective agents.
Strength: Distributor will enable to access international market by avoiding logistic
issues and trade risk associated within business expansion and growth.
Weakness: Herein, if an distributor are taking trade risk and burdens distributors will
expect heavy returns, discounts and generous credit from an organisation.
International sales subsidiary: A business may decide that none of other option are as visible as
actually owing overseas manufacturing plant. Such as investment in plant, machinery in overseas
market. International subsidiary will help mangers of Vintage to build a company that might
acquire a current business that has suitable plant. The benefit is that business will become
localised in the respective country where they are trading. Furthermore, it do have downside that
risk is associated with local domestic market. Thus, sale subsidiary help in reducing elements of
risk and more like distributors that is owned by an organisation.
Strength: If an organisation have full government and customer support an organisation
will lead to have success in an effective manner. Moreover, an organisation will have support of
subsidiaries and other tax benefits.
Weakness: If their no support for government and other agents such as bank and
financial institution then an organisation will not able to develop their business effectively.
Understanding custom and business etiquette: Each country has its own culture and
traditions. It extends from the way you greet someone, holding business meetings and its culture
and custom of doing business (Zahran and Cox, 2012).It is necessary of Vinatge to understand
the culture differences where they are expanding as it very important to establish a long term
business relationship.
Strength: If an organisation is bale to meet the need and requirement of customers in an
effective manner an organisation will able to attain sustainability for longer period of time. Such
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as by understanding business norms and custom an organisation will able to sell their product
and services in effective manner.
Weakness: If an organisation fails to meet up customers need and requirement then an
organisation will not able to attain sustainability for longer period of time.
Challenges: Some of challenges faced by marketers of adopting international marketing
are, different coordination of marketing actives, need and demand of customer differ from
country to country. For growing in international market the marketers need to adopt strong
strategies and handle challenges with creative development process.
Opportunities: If an organisation, Vintage are adopting right strategies of marketing in
their business internationally then they will adopt good advantages of international marketing.
The adoption of adopting right practices of business will create them more opportunities to
attract customer and maintain their sustainability of their business in international market.
The above mention are some of mode of entry in international marketing. This routes
help managers of Vinatge in developing their premium quality of product and services in
international market.
TASK 2
P3 Selection process considering before entering into international market
Market selection process plays a crucial role at international level. Selection process is
based on evaluating different markets with reference to certain well defined criteria of an
organisation resources and objectives.
Country identification: Country identification is very important for an organisation
before expand their business in international market. An organisation need to identify a country
custom and culture of doing business (ZHANG and JIANG, 2014). It is very important of of
selection process as managers of Vintage need to overview of potential of new markets before
expanding their business.
Preliminary Screening: Preliminary screening help an organisation to eliminate market
which are not potential in nature. Before entering into international market, it will help mangers
of Vintage in preliminary screening market as it vary from product to product. Moreover, it will
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help them in parameters such as size of population, per capita income, structure of economy,
infrastructure factors and political condition of a country.
Direct Experience: It is important for marketing manager to travel to a particular
country to experience first hand nation's culture and business practices. As this will help
managers of Vintage to know the culture and business practices which enables them to develop
their product and services with ease. They need to be careful in respect of self referencing their
custom and culture of doing business. Thus, this will help to attain their potential customer and
remain competitive in market.
Test Marketing: Initially, the mangers of Vintage need to test their product and services
that they are offering in other country by launching their product in a smaller part of scale
(Weimin, 2012).At same time it will help them to produce in assessing overall response of
customer's from specific market, after test is successful. Thus, the production can be undertaken
on large scale of mass scale.
These are some of the selection criteria of international marketing which enables an
organisation to grow and develop in other country. Hence, it help marketing managers of Vintage
to critically evaluate best selection process and help them to expand their business.
P4 International marketing strategies including its advantage and disadvantage
Marketing strategies are used by different companies to collaborate with their customers.
It is also employed top aware customers about features, specification and benefits of company's
product and services (Sohrforuzani, Moslehi and Shakib, 2017). Moreover, it helping managers
of Vintage to focused on encouraging its target population to busy specific product and services.
Global marketing strategies: Global marketing strategy is associated with firm's
commitment to coordinate its marketing activities across national boundaries in order to satisfy
global customer needs. This marketing strategies help managers of Vintage in associating with
standardised approach as it is being applied in multiple markets at same time. With objectives of
achieving global efficiency and economic scales. It is helpful for organisation to sacrifices
responsiveness to local requirement within each of its markets in favour of emphasizing
efficiency. Further, it stresses the need to gain economics of scale by offering essentially same
product and services in market.
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Multinational marketing strategies: Multinational marketing strategies focus on
diversity of international marketing imply a strong adoption of need of each market. It help
managers of Vintage for developing an individual market with multiple of diverse marketing
programs that are being applied simultaneously. This marketing strategy will help to adopt strong
marketing base of their product and services they are offering to their potential customers.
Transactional marketing strategies: The transactional marketing strategies implies the
combination of global efficiency and multinational diversity with a strategy to satisfy think
globally, act globally (Lu, 2016). By adopting this international marketing strategies mangers of
Vintage will able attain a balance between both global and multinational marketing strategy.
Thus, it will help managers to maintain a balance of their business and desire for efficiency with
need to adjust local preferences within various countries.
Advantage of international marketing Strategies:
Encourage market competitiveness: When a brand and business operates in or competes
in several market simultaneously, then it focus on its competitiveness to achieve thrive (Kaya,
2015).Vintage, will able to attain thrive only if they are observing a large range of trends because
of their greater level of global market. It help in assessing brands and businesses focusing on
quality, design and product development improvements that continuously improve productivity
and diversity of an organisation.
International growth: In today's context companies are involved in exporting and
achieving high levels of growth in international marketplace. This allows Vintage to create an
opportunities to achieve sustained revenues from a diversified portfolio of customers in several
markets.
Disadvantage of international marketing strategies:
Culture complications: Different culture have different attitudes, standards and
expectation that can create problem for a brand or business in expanding their product and
services. If Vintage fail in adopting culture and custom of a particular country before expanding
their business than it will lead low down their business. It will lead to damage its reputation of
their brand image and can be very costly to bottom line. Sometimes a small inappropriate
understanding is roughen to permanently damage a brand's reputation.
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For example: different negotiating of goals, person style and attitude, communication,
norms and values, languages, art and aesthetics etc. are some of the examples of cultural
difference in doing market internationally.
Credit risk: Many brands and business tend to over look the risk on non payment where
they being to operate in world of international marketing (Baber and Upadhyay, 2015) The
mangers of Vintage can manage their credit by obtaining letter of credit but it can still impact in
number of potential sales of a business. Moreover, they need to understand business to business
and business to customers to attain credit potential in an international market.
For example: Change in exchange rate, changes in import duties or tariff barriers and
foreign market characteristics are some of the examples of credit risk.
Adaptation and standardisation strategies:
In international marketing adaptation and standardisation play's an effective role in
developing strategies and implementing them in an effective manner. It help an organisation help
in cost saving strategy and adopting effective customer orientation strategies so that strategies
can implement various aspect of product and services. In such manner an organisation will able
meet up the needs and requirement in an effective manner.
Above mention are some of the international marketing strategies that are adopted by
Vintage in order to remain competitive in marketplace. Moreover, the advantage and
disadvantage of international on marketing strategies can call to be managed appropriately with
good market research and understanding cultures of other counties before expanding.
TASK 3
P5 An overview of key arguments in global versus local debate
For an organisation it become difficult to play effective role both in local and global
marketplace(Cranmer and Jung, 2017). It leads to crate a debate for an organisation for
adopting market to play without any difficulties.
Basic Local Marketplace International(Global)
marketplace
Consistency in Brand Vintage are able to attain their
local and domestic
In international market, the
need to identify what are the
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marketplace with their
consistency in brand. As they
know what exactly the needs
and wants of customer they are
looking forward.
needs and wants of customer's,
what kind of offerings they are
looking forward. For theses
the managers need to do
continuous research for
developing their products in
international market.
Cultural differences In present context, Vintage
know local and domestic
culture an custom as well
practices of doing business.
They are less worry about
when it comes to
misconstruing marketing
message across cultural lines.
In international market
cultural differences is much
more obvious as it creates
cultural puzzle for managers of
Vintage. Sometimes if culture
and custom are not understand
properly them it leads to
downfall for an brand. Thus, in
this case marketing goes
wrong across cultural barriers.
Political Interferences In local marketing political
interferences are very less. As
in local marketplace the
government need to increase
their value of their state.
Moreover, political
interferences are very less for
Vintage as the can engaged
with government to grow their
productivity as well as
profitably. Thus, it help both
government as well as
In international market,
Vintage have to face lot of
political interferences as rules
and regulation differ from
country to country. Thus, they
will need to compromise on
different aspect of rules and
regulation in order to develop
their brand in international
market.
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