International Marketing: Halfords' Expansion Strategies Report

This report delves into the realm of international marketing, focusing on the application of marketing principles to promote products and services across international borders. It uses Halfords Group as a case study to illustrate key concepts. The report explores the scope of international marketing, differentiating it from domestic marketing and highlighting its importance in the global arena, considering opportunities, risks, and cultural dimensions. It examines the rationale for international marketing, factors influencing internationalization, and various entry routes. Furthermore, it covers international market selection criteria, including the importance of choosing the right market, the selection process, opportunities, challenges, and risk management. Market entry strategies are analyzed, along with their advantages and disadvantages. The report also addresses the global versus local debate in international marketing, different marketing approaches, and competitor analysis, ultimately providing a comprehensive overview of the subject.

International
Marketing

Table of Contents
1.0 INTRODUCTION.....................................................................................................................4
2.0 EXECUTIVE SUMMARY.......................................................................................................4
3.0 Scope of International marketing...............................................................................................5
3.1 Meaning of international marketing.................................................................................5
3.2 Difference between domestic and international marketing .............................................5
3.3 Importance in global arena in respect to world peace, opportunities and risks................6
3.4 Major types of businesses ................................................................................................7
3.5 cultural dimensions ..........................................................................................................7
4. Rationale for international marketing..........................................................................................7
3.1 Factors influencing international marketing ....................................................................8
3.2 Factors that influence internationalisation........................................................................9
3.3 Role of marketing.............................................................................................................9
3.4 Entry routes....................................................................................................................10
4.0 International markets selection criteria....................................................................................10
4.1 The importance of choosing the right international market...........................................10
4.2 International market selection process...........................................................................11
4.3 Opportunities and challenges.........................................................................................11
4.4 Risk management and contingency planning in relation to volatile markets.................12
5.0 Market Entry strategies............................................................................................................12
5.1 advantages and disadvantages........................................................................................12

5.4 Key factors of success in international marketing..........................................................14
6.0 global v local debate in international marketing......................................................................14
6.1 key arguments.................................................................................................................14
7.0 International marketing approaches.........................................................................................14
8.1 competitor analysis.........................................................................................................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................18

1.0 INTRODUCTION
International marketing refers to application of marketing principles or strategies in order
to promote products so that consumer needs can be fulfilled overseas. It can be achieved through
expansion. Globalisation is the way for an entity for operating in multiple countries (Andersson,
and Evers, 2015). To understand the concept of international marketing and its related elements,
Halfords Group has been chosen which has its headquarters at Worcestershire, England. Further,
the report covers understanding of ways through marketing contributes to strategies in
international business context and evaluation entry to a selection of international markets along
with success factors. Furthermore, investigation of how elements of marketing plan can be
adopted or standardised overseas and understanding of ways to organise and evaluation of
international marketing efforts.
2.0 EXECUTIVE SUMMARY
This report is drawn upon international marketing explaining its scope which includes
meaning, explanation of distinguishing between domestic and international marketing.
Importance of various factors has been mentioned by exploring risks and opportunities for
Halfords in overseas market which can be faced by it after expansion. Furthermore, impact of
cultural dimensions has been mentioned.
Rationale for international marketing from various angles such as organizational,
domestic and global which is then followed by factors influencing internationalisation for
example, capability, market knowledge etc. Also, role of marketing and entry routes have been
explored. Risk management and contingency planning in relation to volatile markets is also
mentioned. Furthermore, strategies for entry with advantaged and disadvantaged. Key success
factors of international marketing, critical evaluation of 4Ps, technologies and other implications
have been made a part of this report.
Lastly, approaches available in international marketing and analysis of competitors,
organizational structures, level of competition and performance have been written.

3.0 Scope of International marketing
3.1 Meaning of international marketing
The company Halfords is based on British company where they provide various products
and service such as car parts, child seats, vehicle part fitting and so on in U.K. And Ireland. It is
founded by F W Rushbrooke in the year 1892. along with this, their current market is motoring
and cycling. Their is reduction in the registrations for new car as there is a rise in the registration
of used cars which are held for longer period of time. This shows that there is an anticipation of
huge growth in the use car in the year ahead. International marketing can be defined as process
of number of activities directed towards satisfying individual and organizational objectives. It is
also known as global marketing since it involves expanding business cross borders. In other
words, it can be said that international marketing is the orientation and implementation
capabilities of marketing international business. This comprises of actions starting with planning,
pricing, promotion and proper exchange of goods and services to consumers in multiple
countries (Coviello, Jones and McDougall-Covin, 2015).
3.2 Difference between domestic and international marketing
Basis Domestic Marketing International Marketing
Meaning It refers to dealing of goods or services
beyond national boundaries. In other
words, all commercial activities are
dealt in home country only.
It means promotion or sale of products
in more than one country. The
business is conducted globally.
Area served The region of business is small. Only
the local limits are considered for
carrying business.
Large areas are covered such as
customers of multiple countries are
served.
Government
interference
It is low. Comparatively high.
Business
operation
In single country i.e. home country. More than one country.
Use of
technology
Utilisation of technology is limited (De
Mooij, 2018).
Collaborations are formed along with
other types of alliance for shared

usage of it.
Capital
requirement
Less Huge
3.3 Importance in global arena in respect to world peace, opportunities and risks
Every company motive is to expand their business at international level as it helps them to build
their brand image which attract new customers and retain loyal customers in order to accomplish
organisational goal and objectives.
World peace: Expansion of business in international markets provides sustainable growth
and total development. WTO provides rules which are applicable in globalised organizations.
Such entities create a balance in global trade as economy helps in providing stability in market
certainty. WTO trigger free trade between nations and help in forming an alignment in all the
activities in order to create more open market policies. Halfords can approach WTO for
sanctioning of loan in order to expand business at global level.
Opportunities: The market gets bigger and change of business environment also provides
huge opportunities and benefits (Demangeot, Broderick and Craig, 2015). Theses provide ways
for growth of commercial activities in international market. The following are its opportunities:
 More trade: A company is able to make new alliances and relationships with new trade
partners. This helps in attracting new customers together with increased areas of
operations. Halfords can expand its business to have more sales and profits by targetting
more audience.
 Technologies: The exposure to technologies gets high due to collaboration with other
business firms engaged in providing technical services. More technologies expedite
production of goods or service which avoid any sort of delay. Halfords can have more
technologies by creating a collaboration which can train its employees in making good
quality products.
 New talent: New markets provide more chances to employ candidates having more skills
and talent who can use innovation in their work. Also, diverse workforce can be hired
which can help in easy conduct of business in multiple countries. Halfords will have the
opportunity to appoint new employees according to its need who have the capabilities

and competencies to make it successful. In context to, Halfords, it is a very best
opportunity to hire fresh and talented candidates as they have fresh knowledge and talent
to innovate product and expand their business.
Risks: Global business expansion in international market comes with lots of risks which
should be assessed and appropriate provisions should be made to address them. These risks
should be converted into advantages and used as opportunities for further growth. These are as
follows:
 Global economy: There are many factors which exist in global economy, it includes
financial market and intermediaries which affect the business extension in international
market (Gillespie and Riddle, 2015). Further, there are political situations which should
be studied before proceeding with any deal. Hence, Halfords might feel difficulties in
changing its policies according to different needs of various countries.
 More competition: Many companies already exist in international markets who have
built their businesses to a huge level and are successful and profit making. This possess
a great threat and become a barrier in running of business. Halfords will have to face
extreme competition due to presence of renowned companies in the same industry.
 Tariff barriers: Indirect taxes levied on import of goods is also a huge challenges in
international market. Also, changes in tariff policies and rates can impact the business
significantly. Halfords may have to face this risk which should be managed.
3.4 Major types of businesses
A business can opt for one or more types of businesses through which it can expand in
international market. These are as follows:
 Service business: Intangible products are being offered in this such of business. These
may include professional skills, expertise, etc (Jean, and et. al., 2016). Along with this,
Halfords hire highly skilled and experienced employee for attracting customers towards
it.
 Merchandising business: In this business of Halfords, a buyer buys products at
wholesale price and sell in retail price. It is also known as buy and sell business.
 Manufacturing business: A buyer purchase product to be used them as a raw material.
The input is transformed into a whole new product. In context to, Halfords, they also opt

this business to prepare products by using process of manufacturing to prepare final
product.
3.5 Cultural dimensions
International marketing offers a great way to hire diverse cultured workforce, hence, a
knowledge about cultural dimension is important. Cultural dimensions are a set of beliefs,
values, attitudes or morals. These govern behaviour of a person which should be understood by a
business before target to expand. Halfords can have significant effect due to involvement of
various cultures due to operations in multiple countries. There should be a balance between
culture prevailing in domestic and international market.
4. Rationale for international marketing
A business can have number of reasons to take its business operations at international
level. These are as follows:
 Increase sale: UK economy is having instability in businesses due to BREXIT as the
answer is yet to be final (Li, Chen and Wang, 2016). Halfords can increase its sales by
going international as there will be more customers to buy its products.
 Resources: A company can have exposure to more resources at cheap prices depending
on situations of each and every country. Customer base will be increased together with
infrastructures which will be added to its existing resources.
 Long term security: The business environmental factor varies country to country, which
can affect its business in a positive way. Hence, one can sustain for a long time.
 Economies of scale: It provide a way where variety of products can be sold around the
world. This helps companies gettinmajor types of businessg bigger and increase its
productivity.
3.1 Factors influencing international marketing
This is not similar to domestic market as organisation have to consider various factors as
they are not operating in their own country. These factors include, organisational, domestic and 7
Ps as they are uncontrollable (Mathews, S. and et. al., 2016).
Organisational factors: They comprises of working environment of organisation in
which they are operating internationally. It will include cultural factors as when Halfords will

operate in international market then there will be variation in language, tastes of people, regional
values, customer’s habits and demographics. Management of Halfords needs to consider all these
factors so that they can carry out their functionalities in appropriate manner by which they can
gain sufficient profits. For example, changes in policies and procedures of a company and its
compatibility with international marketing.
Domestic factors: When Halfords will operate in international market then this will have
significant impact on organisation which are operating in particular country with same products
as they are offering. This will increase competition for existing market. But, if existing
organisations are rendering quality services and products then impact will not be so large. For
being competent within market Halfords need to analyse requirements of customers by which
they can ensure that their customers are provided with what they want (Ngo and et. al., 2016).
For example, changes in taste and preferences are major factors which can have significant
impact.
Global factors: While opting to serve in international market global factors needs to be
considered. In this context, Halfords needs to analyse different countries, their economic status
as well as political stability. This will assist them analyse market which can provide them with
enhanced profit. Management needs to consider 7 Ps to evaluate and re-evaluate activities which
they are about to conduct. 7 Ps comprises of product, prices, promotion, place, packaging,
positioning and people (Navarro-García, Schmit and Rey-Moreno, 2015). For instance, changes
in various international standards must be complied with in order to have smooth functioning of
business.
3.2 Factors that influence internationalisation
Internationalization termed as a process in order to increase effective involvement of
organisations in international marketplace. This process influence market knowledge of an
organisation as they get opportunity to perform their business operation in different geographical
locations along with this it also influence learning experience and network ambition of a
Helsford company as they get formative opportunity to gain domestic and international working
experience. In this HR plays a most important role to recruit highly skilled and talented
employees in order to gain localisation advantages. While on the other hand, Internationalization
bring slow growth of as this increase competition in a domestic market (Ngo and et. al., 2016).
Therefore, in order to combat with this situation, it is essential for a business organisation to

diversify their risk handling capacity and effectively recognize global mobility of consumers
within different geographical locations. In addition to this, localisation advantages also acts as an
most important factor that influence Internationalization as it benefits a Helsford to enhance
their overseas profit and growth opportunities as stimulate their growth efficiencies in best
effective way. Therefore, all these factor acts as most crucial factor that influence
internationalisation in overall way. Thus, by the above discussion it is clarify that
internationalisation is a formative process in which engagement of production of different types
of goods and services takes place across national boundaries.
3.3 Role of marketing
 Meet consumer needs: The department for this assess the demands and wants of
customers in order to satisfy them.
 Organizational survival and growth: Marketers help in retaining customers and attract
more prospective buyers resulting in increased in survival.
 Widens market: Promotional and advertisement tools are used by the team to build a
strong image brand image in the minds of customers. Digital technology is also
considered (Rosson and Ford, 2016).
 Better product offerings: Company can offer variety of products with good packaging
and labelling.
 Creates utility: Marketing department in a company creates place, time, information etc.
for consumers.
3.4 Entry routes
A business can opt for one or more types of businesses through which it can expand in
international market. The different forms of business in global market have been explored below:
Exporting: It can be defined as a business practice whereby goods are sold to customers
in another country. The delivery is done through plane, land or by sea. This can be done directly
or indirectly. Halfords can adopt this form, however, its pros and cons should be assessed
(Schmid, Grosche and Mayrhofer, 2016). Its advantages are diversification, lower per unit costs,
more opportunities for company expansion. On the other hand, disadvantages are product
modification, financial risk and export licenses and documentation.
Licensing: An agreement is executed between both two parties whereby licensor allows
another party, basically a foreign firm, right to use intangible property for a specified period of

time. The licensee is required to pay royalty. This is not an appropriate method for Halfords to
expand its business in international market. Advantages are a great opportunity for business
growth, reduction of risks, easy way to enter in international markets. Disadvantages are there is
an increased theft of intellectual property rights, add competition and it is for limited period.
Franchising: Under this, parent company gives permission to another entity as the right
to do business in a specified manner. The franchisor provides guidelines which should be
followed by franchisee. It can also be used whereby Halfords can have tighter rules for all its
franchisees. It has advantages which are independence to carry business, no requirement of
experience and higher rate of success. On the contrary, disadvantages are execution of formal
agreement, restrictions and sharing of profit.
Foreign direct investment: This means that business activities in a country will be
managed and controlled by entities in foreign land. Halfords can opt for this types as it is listed
in London Stock Exchange and can easily get funds required for such expansion. Along with
this, Foreign direct investment is suitable for Halfords as it is easy for them to expand their
business at global level. The advantages are good control over business activities, increased
economies of scope, and more job creation. Disadvantage are high risk investment, huge
investment, increased fixed costs.
4.0 International markets selection criteria
4.1 The importance of choosing the right international market
 Market demand in the target country: this is directly linked with demand of products or
services of the company in the particular market. In absence of such demand, the business
would fail in international market. Thus, right market must be chosen which has high
demand.
 Level of competition to survive in the market: a market with high competition provides
greater profit. However, a new business should consider the competitive advantage it can
get in the international market.
 Performance in a country based on macro-economic conditions: the economic conditions
in the target country should be viewed and analysed in aggregated form.

 Barriers that posses difficulties in trade: there are certain challenges such as political
instability, fluctuations in currency rates etc. should be considered before establishing a
business (Surugiu and Surugiu, 2015).
 Political risks are also important factor to be considered: these are related to polictical
conditions prevailing in the target market.
 Distribution accessibility in the channels available with the company in international
market: the availability of different distribution channels from which goods can be
transferred from factory to final destination must be assessed.
 Convertibility of currency should be studied in order to understand future market
speculations.
 Legal environment and consequences should be evaluated in order to know legal
implications.
4.2 International market selection process
There are prescribed steps which should be followed and these have been explained
below:
 International marketing objectives: It is the first step in which aims or objectives of an
organizations are determined. There could be differences in objectives.
 Parameters for selection: Different selection basis should be evaluated such as
resources, international business environment, market situation, degree of competition,
plans of government etc (Watson IV, G.F., and et. al., 2018).
 Preliminary screening: This step is followed in order to remove parameters which are
not useful for the business.
 Short listing of markets: The market which should be target must be assessed through
number of techniques.
 Evaluation and selection: The markets short listed will be evaluated by cost-benefit
analysis and feasibility study.
 Test marketing: A small areas of market must be tested before establishing business or
for expansion.
 Commercial production: This is last step in which company check its product mix in
order to remove any mistakes that was left in the proposal.