International Marketing Report for JD Sports: Strategies and Analysis

This report provides a comprehensive analysis of JD Sports' international marketing strategies. It begins with an introduction to international marketing concepts and the rationale behind JD Sports' global expansion, including potential routes to market such as exporting, licensing, and joint ventures. The report then delves into the criteria and selection processes for entering new international markets, emphasizing the importance of market analysis, competition analysis, and understanding legal and regulatory barriers. Different market entry strategies, along with their advantages and disadvantages, are discussed, with a focus on licensing and joint ventures. The report also examines the key arguments in the global versus local debate, highlighting the differences in capital requirements, technology usage, and customer behavior. Finally, it explores how pricing, product, promotion, and distribution strategies should be adapted across various international markets, concluding with an overview of international marketing approaches and a comparison of home and international orientations, including ways to assess competitors.

INTERNATIONAL
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1:Scope and concepts of international marketing.....................................................................3
P2: Rationale of international marketing and routes to market the company can adopt............4
LO2..................................................................................................................................................5
P3: Criteria and selection process company should use when considering which international
market to enter.............................................................................................................................5
P4: Different market entry strategies, including advantages and disadvantages........................6
LO3..................................................................................................................................................7
P5: Key arguments in the global and local debate......................................................................7
P6: How pricing, product, promotion and distribution approach differs in variety of
international market....................................................................................................................8
LO4..................................................................................................................................................9
P7: International marketing approaches the company can adopt................................................9
P8: Comparison of home and international orientation and ways to assess competitors
outlining implications of approaches........................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
International marketing can be defined as activities of business that are performed like to
make plan, pricing strategy, promotional method and distribution channel for the proper flow of
goods and services to the consumers in different countries (Cateora and et.al., 2020). JD sports is
a public limited company which is established in 1981 by John and David. Its headquarters are in
Bury, England, UK. The company provide clothing and sportswear accessories to the consumers.
In the present report scope and challenges re discussed. Various routes the company can adopt
and opportunities of international marketing is also described. Strategies that are available for the
company to enter into the market.
LO1
P1:Scope and concepts of international marketing
International trade can be defined as the exchange of goods and services, capital across
international territories or between countries as there is need and requirement. International trade
provides opportunity to the expose goods and services which are not available in their countries.
Goods and services will be expensive domestically. International business can be defined as
trading of goods and services, technology across global scale and national borders (Ewahand
Osang., 2018).
There are three main approaches:
 Ethnocentric: Ethnocentric approach refers to the method which is used for
international recruitment. The HR recruits right people for the right job in international
business. It refers to plans for overseas market. There is no attention is given to
customer need and requirements.
 Geocentric: Geocentrism refers to different aspects such as distribution channel and
marketing and promotional strategies, languages used in advertising. The geocentric
approach is international recruitment method where multi national companies recruit the
appropriate employee.

 Regio centric: Regio centric approach is also a method of international recruitment in
which managers are recruited or selected from various countries within geographic
region of the business.
Challenges that are faced by international marketing are:
 Tariff barriers: It refers to taxes and duties that are imposed on imports. Tariff barriers
restrict the activities of international marketing to prevent foreign products. Changes in
tariff and variable rates for different categories to trade internationally. It is challenge
for JD sports company as they have to pay the amount of various import duties and tax.
 Administrative policies: Different countries have different system of government and
rules and policies are also different both in the host country and guest country.
Countries have many formalities and the procedure is lengthy which has to be clear by
importers and exporters. It is challenge for international marketing to adopt rules and
policies of different countries where they want to operate.
P2: Rationale of international marketing and routes to market the company can adopt
Normally, companies go international marketing to expand their business and the
company want to grow. There are many benefits of entering into international market as it helps
the company in generating revenue and increase profit (Gomes., Sousa and Vendrell-Herrero.,
2019). It also provides investment opportunities to the companies and reducing the cost. It also
provides stability through diversification. JD sports want to expand its business by opening its
stores in international market.
JD sports in Ethiopia want to buy a US sportswear DTLR to expand its business and
provide consumers different products to increase the revenue of the company. Rationale of
international marketing helps the organization in increasing growth rates and smooth working of
the company. Company uses this strategy to cover large area in the market and attract more
customers to buy the product.
There are various routes to market that JD sports can adapt to enter into the new market.
Different routes are:
Exporting: Exporting refers to the sales of goods and services directly in another country. It is
one of the best method which will help in entering international market. This will be cost

effective as goods are manufactured in the home country and then sent to another country for
sale. This will help JD sports company to increase its sales and enter the market.
Licensing: Licensing provides other company to use your property. The property is generally
intangible like, patents and trademarks. It requires little investment and in return provides high
return. License gives the right to use the property.
Joint venture: A joint venture can be defined as two companies establishing a new jointly
owned company. One of the owner of the joint venture will be local to the foreign market. JD
sports can also establish jointly owned company with any company related to its field.
LO2
P3: Criteria and selection process company should use when considering which international
market to enter
When entering into international market JD sports should focus on some important points
that will help the company to enter in the international market. The points are:
Focus on market analysis: When entering into the international market the company should
properly analyse the market. Market analysis refers to qualitative and quantitative analysis or
assessment of market. Market analysis helps the company in identifying the size of the market in
terms of value and volume both (Hult and et.al., 2018). It also helps in determining the buying
pattern of the customers, needs and wants of the customers.
Competition analysis: Before entering into the new market company should gather information
about competitors in the market. It helps in determining strengths and weaknesses of the
competitors and helps in comparing. This will help the company in improving its strategies and
can take the advantage. JD sports company should also gather details of its competitors and their
strategies. This will help the company in entering into the new market and compete in the
market.
Distribution channel: Distribution channel refers to the intermediaries which will be helpful in
proper delivery of goods or services to reach the final consumer. It includes wholesalers,
retailers, distributors. JD sports company should plan that which distribution channel should be
used through which goods or services reach its end consumer. This will help the company in
identifying the target audience and the company should focus on them.

Legal and regulatory barriers: Legal and regulatory barriers can be refer to state laws and
local laws, rules and regulations that can be a barrier to enter into the market. Different countries
have different policies and procedures. JD sports company should determine legal and regulatory
barriers before entering into international market.
P4: Different market entry strategies, including advantages and disadvantages
 Licensing: It is the strategy which is used to enter into the market. The company allows
other company to use the property. Intangible property can be used like patents,
trademarks and production techniques (Jiménez-Asenjo and Filipescu., 2019). Less
investment is required in licensing and return on investment is high.
Advantages of licensing are:
 License helps in creating new opportunities for the company. It requires less investment
and the return on investment is high. It helps in building reputation and image in the
market and provides information of the market.
 It is easier to enter into the international market as license gives right to use the
intellectual property. Tariff barriers can be avoided.
Disadvantages of licensing are:
 After signing the license agreement, it creates more dependency on the licensor. There is
no guarantee as there are multiple businesses competing in the market using the same
tools or same production techniques.
 It could damage reputation of both parties as multiple licences can be offered and then it
will damage the reputation. To resolve this problem there is only one way to have good
quality management.
 Joint venture: A joint venture can be defined as when two companies are establishing
jointly owned business. Both the companies then provide new management to the jointly
owned business. This joint venture is a strategy that is used by many companies to enter
in the intentional market.
Advantages of joint venture

Joint venture provides better resources like, new technology and talented staff. Two companies
have their strengths and when they combine all the resources are combined and they can perform
better by utilising resources effectively and efficiently.
Disadvantages of joint venture
Disadvantage of joint venture is that there can be clashes of culture. Every company has its
different management styles, staff having different tastes and preference.
LO3
P5: Key arguments in the global and local debate
There are many differences in doing business at local level and business at global level.
 Capital requirement: It refers to the amount that is required to run a business smoothly.
It should be properly managed. Capital requirement is different for local business and
global business. In local business less capital is required and also less investment whereas
in global business huge amount of capital is required (Lu., Scholz and Nguyen., 2018).
JD sports will require more capital as company want to enter in the international market.
At global level things are different, prices of the products is different from local business.
The way of doing business vary from country to country. So, there is difference in capital
required for local business and global business.
 Use of technology: Technology used in local business is not so advanced. If the company
wants to do business at global level then company should use new and advanced
technology. The company need to make innovative product and then sale it in global
market. Organisation cannot use old technology in global market. JD sports should use
the latest technology for manufacturing product. Talented and skilled employees are
selected so that they can understand how to use technology and they will know about new
technology.
 Nature of customers: Different countries have different cultures and traditions. Nature
of the customers vary from country to country as there choices, taste and preference is
different. In global market customers prefer good quality products. The prices are also set
according to the demand of the product. JD sports should identify what re the needs and
demands of the customers in international market and make product according to that.

There are many differences in doing business in local market and in global market.
P6: How pricing, product, promotion and distribution approach differs in variety of international
market
The international marketing mix refers to four elements i.e., product, price, distribution
channel and promotion.
Product: In international market product involves different factors like, cultural
background of the consumer, religion, buying habits of consumer, level personal disposable
income (Morgan., Feng and Whitler., 2018). In many situations, company has to adopt marketing
mix strategy to meet the needs and wants of the consumers. JD sports company should do market
research which will help the company in identifying the needs and wants of consumers. The
company should study about the buying pattern of the consumers and their income level.
Price: Price on international scale is identified by taking traditional price such as, fixed cost and
variable cost, competitors price and target groups. There are some additional factors that an
organisation need to consider are: cost of transportation, import duties, tariffs, personal
disposable income of the target market,economic situation of the country etc. JD sports should
identify the price of competitors and set price according to that. In today's global world
consumers view prices with the help of internet and purchase products. Online marketing has
increased competition in the market as people buy product online.
Promotion: It is one of the important element of marketing mix. Advertising should be done by
the company to increase sale of the product. There are different ways of doing promotion.
Promotional strategy in one country can cause offence in another country. It is due to change in
language, culture, tradition, political climate and cultural attitudes. So, JD sports company
should make its promotion strategy according to that.
Place: Place refers to the distribution channel through which product reaches to its consumers.
Distribution channel in the international market involves more parties as goods need to be move
around foreign market.

LO4
P7: International marketing approaches the company can adopt
Various international marketing approaches the company can adapt to expand its
business:
Inbound marketing: Inbound marketing refers to the methodology that helps in attracting
customers. It helps in creating content that is valuable and experiences. They are searching
answers online, researching industry, details of competitors and also decide whether consumers
want goods or services or not (Paul and Mas., 2020). Some key benefits of inbound marketing
are, reduced expense, opportunity to learn, attract visitors, delight customers, higher trust and
credibility etc. Some examples of inbound marketing are, social media campaigns, search engine
optimized, viral videos, webinars.
Outbound marketing: Outbound marketing can be defined as a marketing approach in which a
company initiates conversation. It is opposite of inbound marketing in which the company did
not attract customers. Benefits of outbound marketing is it provides immediate results, it allows
to target messages strategically, it support inbound efforts. Examples of outbound marketing
involve traditional method of advertising like television, radio, advertisements in newspaper, use
of print media, trade shows. This approach helps the company in satisfying customers and
promotion of the product.
B2B marketing: B2B marketing refers business to business marketing. It can be defined as
marketing of products is done to other organisations. Business to business marketing refers to the
best techniques and practices that are used by the companies to directly sell the product or
service to other businesses (Samiee and Chirapanda., 2019). Benefits of B2B marketing is that it
helps in identifying more sales opportunities, it creates better end to end customer experience,
improves return on investment, increase customer lifetime value.
So, these are some international marketing approaches that JD sports can adopt to in
crease sales of goods and services, build reputation, earn trust of the consumers, learning about
the marketplace. Companies should study these marketing approaches before entering into the
international market.

P8: Comparison of home and international orientation and ways to assess competitors outlining
implications of approaches
Competitor analysis refers to identify the strategies that are used by the competitors.
There are many competitors of JD sports company in international market. Competitors are, The
Iconic, Reiss, Sports Direct, Belle international, Lamoda, Sports power Bundaberg etc.
Competitor analysis is important as it helps in identifying competitors strategy and helps ion
identifying competitors position in the market. It also helps in taking review from social media
and also collect feedback from the customers. It helps in improving performance and quality of
the product (Rezaee., 2017).
Different marketing strategies that can be used by the company social networks and viral
marketing, paid media advertising, internet marketing, email marketing, direct selling, point of
purchase marketing, conversational marketing and many other strategies to increase the sale of
the product. There are many strategies that can be used by JD sports to compete in the market
and better perform than its competitors.
Opportunities that are available in the international market are, economies of scale, return
on investment is high, exporting, increased market size and many other. JD sports can expand its
business and can start business in international market. The company should make strategies
according to the need and requirement of the consumers in the international market and increase
its distribution channel.
CONCLUSION
From the report it can be concluded that, there are three main approaches i.e.,
ethnocentric, geocentric and regio centric. There are various routes which can be adopted by
company like, licensing, exporting and joint venture. Criteria and selection process is discussed
which company can use when entering in the new market. Different strategies and its advantages
and disadvantages are described. Key elements that are helpful for JD sports are discussed in

global and local business like, capital requirement, use of technology and nature of customers.
Product, pricing, promotion and place in international marketing is discussed. Different
international marketing approaches that company can adopt are discussed.
REFERENCES
Books and Journals
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Ewah, S. and Osang, J. E., 2018. Influence of cross cultural differences on international
marketing. International Journal of Academic Research in Business and Social
Sciences. 8(7) pp.363-376.
Gomes, E., Sousa, C. and Vendrell-Herrero, F., 2019. International marketing agility. Emerald
Publishing Limited.
Hult, G. T. M., and et.al., 2018. Addressing endogeneity in international marketing applications
of partial least squares structural equation modeling. Journal of International
Marketing. 26(3). pp.1-21.
Jiménez-Asenjo, N. and Filipescu, D. A., 2019. Cheers in China! International marketing
strategies of Spanish wine exporters. International Business Review. 28(4). pp.647-659.
Lu, V. N., Scholz, B. and Nguyen, L. T., 2018. Work integrated learning in international
marketing: Student insights. Australasian Marketing Journal (AMJ). 26(2). pp.132-139.
Morgan, N. A., Feng, H. and Whitler, K. A., 2018. Marketing capabilities in international
marketing. Journal of International Marketing. 26(1). pp.61-95.
Paul, J. and Mas, E., 2020. Toward a 7-P framework for international marketing. Journal of
Strategic Marketing. 28(8) pp.681-701.
Rezaee, R., 2017. The impact of international marketing strategies on export
performance. Journal of Business Administration Researches. 9(17). pp.55-80.
Samiee, S. and Chirapanda, S., 2019. International marketing strategy in emerging-market
exporting firms. Journal of International Marketing. 27(1). pp.20-37.
Online
Srivastava,A., 2017 International Marketing[Online]. Accessed Through
:<https://marketinglessons.in/international-marketing-definition-examples/>