International Marketing Case Study: S Annie's Entry Strategies

This case study analyzes the international marketing strategies for S Annie's, a family-owned fashion shoe producer. The report examines two viable market entry methods: non-equity modes (indirect/direct exporting, licensing, franchising) and equity modes (joint ventures, wholly owned subsidiaries), outlining their advantages and disadvantages. It also addresses various international marketing issues related to product (country of origin, branding), price (uniform pricing), and distribution (grey market), offering suggestions for S Annie's to navigate these challenges. The analysis provides insights into market selection, branding, pricing, and distribution strategies for successful international expansion, particularly within the European market. The study emphasizes the importance of adapting to cultural nuances, managing costs, and developing a strong online presence for distribution.

INTERNATIONAL MARKETING
CASE STUDY

Table of Contents
INTRODUCTION.....................................................................................................................................2
QUESTIONS..............................................................................................................................................2
A- Explaining 2 viable market entry methods open to the firm outlining the advantages and
disadvantages...........................................................................................................................................2
B- Suggestions based on number of international marketing issues........................................................4
CONCLUSION..........................................................................................................................................8
REFERENCES..........................................................................................................................................9

INTRODUCTION
The present report is based on the case study that is of international marketing. The
chosen form of the report is S Annie’s that is a family owned producer that serves high quality
fashion shoes for woman. They’re working from last 70 years along with this they also have
turnover of euro 23 million per year. The report will explain about the two viable market entry
methods along with their advantages and disadvantages of each method. On the other hand, it
will also give the information about the number of marketing issues that are based upon the
product, price, distribution and communication indeed it will include different types of question
that has to be answered on the basis of market entry method.
QUESTIONS
A- Explaining 2 viable market entry methods open to the firm outlining the advantages and
disadvantages
The two viable market entry modes open to the farm are
 Non-equity modes
This mode is related to indirect and directs exporting, franchising and licensing. Mainly there
are so many types of companies that start their business by indirect exporting that is why
working through independent international intermediary (Zhang, Luo and Zhu, 2018). The
company can use this because it requires less investment the as in this the firm they do not
require any overseas marketing organization or networks. In this mode there is less risk. Under
the render seller can move to the direct exporting by handling their own exports. In the direct
export there is greater number of investment and risk in strategy but it also result in potential
return. The company can also conduct direct exporting in different ways and they all can also set
up domestic Department with leaves to carrying out different exporting activities. It also helps
the business at the time of free entry because it is conducted through a dealer and himself no
what the final price is given to the customer without taking any instructions from the seller or the
exporter.
Licensing is also another mode that the form can used at the time of market entry as it is very
simple way to enter international markets. The form can easily enters in an agreement with the
license that is related to foreign market that can be based upon the fees, royalty as bad as they

will get right to use companies manufacturing process, patent and trade rights. along with this by
this the company will also get profit in the market at the time of entry with little risk in addition
to this they can also gain there production expertise as that will be the well-known product or
brand name that do not have to start to scratch. Franchising is the other mode that company can
use which is very similar to the licensing as in this the company can signed the agreement that is
based upon individually owned other companies. In this this apply provide different types of
support that can be in the form of marketing, training that is to franchisee along with this they
also request them to follow special rules that is to decorate their stores and different ways that is
to act in sales situation.
Advantages
• In this mode there is very less entry cost along with this it also had low financial risk
• Entry on this mode are related to domestic intermediaries and in this it also requires low
staffing
• This mode is known as very simple extension that is related to sales markets
• In this there is lack of marketing cost (Tadic, Ratkic and Suput, 2017)
Disadvantages
• In this mode there is low probability at the time of doing transitions
• The other disadvantage of this is that it is fully depended upon the domestic intermediaries
• At the time of entry markets by this more the company required lack of knowledge that is
related to foreign markets
However this mode can be best for the farm to take the entry in the international market
because in this order selling of goods and services are based upon the domestic intermediaries
that can be exported by foreign agent, distributor, representative i officer and one foreign
distribution network
 Equity modes
It is a type of modes that allows the organization so that they can be closer to their customers
by using two options that are joint ventures and wholly owned subsidiaries. The giant can be in

the form of licensing, contract manufacturing, joint ownership and management contract. The
company can it was this moment by opening their market in international asks it differs from
direct investment that is from the Association where it is found with someone that is in the
foreign country. In this equity mode another method is wholly owned subsidiary that means
exporting company can have its own local business in their own country that can be on the basis
of both selling and producing. In this mode the company gets full control under operation that is
related to exporting country (Kavoura, Sakas and Tomaras, 2017). This both method already
useful as it helps S Annie’s at the time of opening their market an international markets they can
use this equity methods that are based upon the joint venture and wholly owned subsidiaries.
Advantages
• It result in synergy effect
• They have to spread their risk that is between the exporter and the partner
• They have good image in the local market
• This mode has full control on the holding centralized
• Potentially it resulted in highest profitability
Disadvantages
• It requires very high entry cost and high risk
• In this type of modes the company has to follow different types of complicated registration
procedures
• They have different types of conflicts of interest that are related to exporter and the partner.
It has been identified that this mode is used by the company as the creation of foreign
subsidiaries letter jointly controlled by minority and majority interest that is pertaining to parent
company and the foreign partner on the other hand they can also get wholly owned subsidy by
the parent company in this entry mode (Xiao and et.al., 2019).

B- Suggestions based on number of international marketing issues
International marketing is not an easy task for any company to conduct whether it is
small or large¸ because it may require strategic management planning, effective monitoring
strategies and good decision making power. Like other companies S’ Annies may also face
certain marketing challenges or problems while conducting into international extent, which is
quite common. They may consider varied methods, techniques and ways as advice to overcome
international marketing issues such as market selection, branding, pricing, etc.
Product-
Country of origin effect is known as nation bias and made in image. It considered as
psychological effect that define how customers, perceptions, buying decision and attitudes are
influenced by specific products or service country of origin labeling, which may describe to
where a company is based and their goods is designed (The Importance of the Country of Origin
Effect, 2021). It is important because country of origin effect help to reinforce importance of
organizations like S’ Annies in relation of abroad markets. In the context of concept relevance, it
can be said that country of origin effect may contribute to perceived value of an item and a
company that may need to manage this component in a systematic as well as strategic way.
Branding is one of those marketing practices that has been conducted into systematic
manner, just to promote ventures all over the world. While conducting this practice, S’Annies
must be aware of certain branding problems that may put negative impact on process related to it
and may lead to decrease its sales within European market (Hospers, 2020). Inaccurate brand
perception, low rankings in search outcomes, possessing a compelling vision & mission, creating
new subcategories, generate breakthrough brand building and maintain brand relevance. These
are the most common challenges that chosen company may take into its consideration, which
help to prevent its venture from the negative impacts of international marketing issues in which
branding is the one.
In term of elements, culture, competition, market development and packaging of products
will company need to be adapted, which help to gain the attention of new customer’s in
European capital city where firm seek to open a flagship outlet. It also contributes to increase its
profitability, sales and productivity level. Product packaging as well as quality play vital role in

success of shoes sales. Furthermore, before introducing product, company may take European
culture into its consideration that is essential and beneficial in several terms.
Price-
S’Annies and its directors have desire to start their new outlet in Europe, where they may
sell quality fashion shoes to women’s, according to their needs and expectations that help to
enhance their satisfactory level, in unexpected manner. In order to satisfy each customer and
sustain for longer within new market, management may put more efforts in term of making
changes related to product packaging, price and other activities related to goods, for which firm
may face challenge in term of increasing costs in regard to each activity or practice. They may
face issue relate to increasing cost for re-product packaging, because new customer needs and
preference is change.
Uniform pricing tactic is one of those strategies that most of the companies used to offer
the same price to all consumers, whether it exist in national or international boundaries. The best
thing about this strategy is that it helps management to maintain pricing policy related to
products in same manner, which they manage in home nation. In simple term, it provides
benefits in form of ease of management and consumer goodwill created by it in market. On the
other hand, uniform pricing strategy may put negative impact by having disadvantages. For
example, the main drawback is that it may easily be undercut and matched by rivals.
Another drawback of uniform pricing strategy that affect negatively upon sales of
company when it implements it in all nations where it exists and desire to open venture for
commercial purpose (KINTLER and REMEŇOVÁ, 2020). For example, in certain nations
people are unable to pay fix price in exchange of products or services when price is high. At
same time, many individuals are capable to buy expensive items, because they have high
disposable income. So company may not be able to gain profit from those two types of markets
as it may not satisfy these area and lead to decrease profit margins and success chance of brand.
Distribution-
Grey market is named as parallel market and define as one concept where trading of
products or services take place outside realm of producers’ official trading sources. Small
venture selling merchandise it the best example of grey market. In this type of market is

especially for varied companies where their shares are bought and sells outside authorized
trading. It may put negative impact on organization in term of losing trust of potential and loyal
customers. It can be said that a maximize in transaction of grey market may affect economy
development and industry turnover as it may put positive impact. While it may impact negatively
in term of losing consumes trust. Furthermore, when gray market products are continually
accessible to customers at huge discounts via online, it may cause organizational issues in term
raising concern of each customer regarding product quality as they wonder why firm sell these
into cheap prices.
Distribution is process of selling specific items to target market, which a company may
identify and set for quality offering. S’ Annies may take advantage of developing its online
presence as compare to open a flagship outlet in European market. It is one of those common
distribution methods that has been utilized by several organizations. Here, chosen company may
use this and take varied benefits from it (Stouthuysen, 2020). In term of advantage, online
presence provides benefits to firm in form of increasing its web tariff, increase profitability via
selling products online. By developing online presence, it may generate brand awareness in
faster as possible, which is not possible to develop when management open a flagship store in
Europe. It helps to retain potential buyers and new by making them capable to find organization
and its products. Another advantage of online presence that company may obtain is increasing its
credibility.
Communication-
Trade fairs considered as an exhibition that has organized in systematic manner. It drives
the attention of organizations in a sector to showcase and demonstrate their latest goods as well
as services, which meet industry or business partners and consumers. Organization with chose
market entry mode, should concentrate upon trade fairs because it is cost effective method that
provide benefits to firm in term of offering budget friendly approaches to market its brand and
sell quality fashion shoes in European market. Another benefit that firm may obtain by taking
trade fairs into its consideration is that it helps to pull management towards highly targeted
markets, where manager may increase their sales by selling quality items. It enables brand to
grab opportunity in term of grabbing the attention of new customers who are able to pay in

exchange of money, instead of conducting bargaining, which in return increase profitability of
organization.
It is quite important for firm to choose the best and most profitable sources or channel of
product promotional. For example, they can utilize Instagram for purpose of promotion because
it is now in trend in term of increasing number of users that has created their accounts on this
application just to make themselves aware about varied things like goods, services, etc. in which
they are highly interested to buy. It is the best promotional approach in today’s competitive
market, where each marketer may face challenge to advertise their items whether in national or
international market. Company can utilize Instagram and create its account which made marketer
capable to promote shoes and gain attention of target customers like women.
CONCLUSION
By summing up above analysis, it has been summarized that company has successful
conducted its marketing activities across national boundaries at international level in beneficial
and productive manner, which in return has increased its customer base even better than last
certain years. By choosing the best and appropriate market entry mode, organization has
successfully entered into new market where it has sales quality fashion shoes that has especially
designed for women. By using social media and other effective marketing platforms firm has
promoted its 11 different styles of shoes in market that has generated awareness about products
and also contributed to gained the attention of the most profitable customers. Furthermore, from
above discussion it has been concluded that with online along with offline presence, organization
has increased its profitability and also obtained unexpected outcomes more than expectations in
term of increased customers base, web tariff, sales and productivity.

REFERENCES
Book and Journals
Hospers, G.J., 2020. A short reflection on city branding and its controversies. Tijdschrift voor
economische en sociale geografie. 111(1). pp.18-23.
Kavoura, A., Sakas, D. P. and Tomaras, P., 2017. Strategic innovative marketing. Springer.
KINTLER, J. and REMEŇOVÁ, K., 2020. EFFECTIVE USE OF THE PRICE
DIFFERENTIATION STRATEGY IN PRICE MANAGEMENT. Ekonomické
Rozhl'ady/Ecomomic Review. 49(3).
Stouthuysen, K., 2020. A 2020. A 2020 perspective on “The building of online trust in e-
business relationships”. Electronic Commerce Research and Applications. 40.
p.100929.
Tadic, D. P., Ratkic, H. and Suput, B., 2017. Comparative analysis of marketing communication
strategy on social networks: case study of presidential candidates Donald Trump and
Hillary Clinton. Economic and Social Development: Book of Proceedings, pp.372-
380.
Xiao, Y., and et.al., 2019. The effect of service quality on foreign participants’ satisfaction and
behavioral intention with the 2016 Shanghai International Marathon. International
Journal of Sports Marketing and Sponsorship.
Zhang, L., Luo, M. and Zhu, L., 2018. Product Information Diffusion in a Social Network and
Marketing Implications: A Case Study of Huawei Mobile Phone. In Wuhan
International Conference on e-Business. Association For Information Systems.
Online
The Importance of the Country of Origin Effect. 2021. [Online]. Available Through: <
https://440industries.com/the-importance-of-the-country-of-origin-effect/#:~:text=The
%20Country%20of%20Origin%20effect%20reinforces%20the%20value%20of
%20a,associated%20with%20a%20geographical%20location. >