International Marketing Report: Maybelline in Emerging Markets

This report provides an in-depth analysis of international marketing strategies, focusing on the factors influencing pricing decisions within emerging markets, specifically using Maybelline as a case study. The report examines the political, economic, social, and technological factors that impact pricing, including competition, cost, and demand. Furthermore, it explores the role of "Grey Marketing" in international marketing, defining its practices and its positive and negative impacts on businesses. The report suggests several strategies to mitigate the negative effects of grey marketing, such as utilizing intelligent software for monitoring, increasing employee awareness, and establishing contractual agreements with distribution partners to protect brand integrity. The analysis covers a range of topics from the economic environment of the host country to the price-quality relationship, which are crucial for businesses aiming to succeed in international markets. The report concludes with a summary of key findings and recommendations for effective international marketing practices.

International
marketing

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Critically evaluate the factors that will influence your international pricing decisions in the
chosen emerging market..............................................................................................................3
Discuss the role of “Grey Marketing” in International Marketing and suggest possible
strategies to reduce Grey Marketing............................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
International marketing is referred as the process that is undertaken by business to design
business plans, setting price as well as promoting and directing the flow of organisational
products and services to customers across the national borders. The main objective of
international marketing is to make profit through providing goods and services to different
geographical areas which have demands for that specific products. Generally, international
marketing is the application that is applied in more than one country respectively by the
company beyond national borders. In this report the chosen organisation is Maybelline which is
an American multinational brand that deals in cosmetics, skin care as well as personal care
company based in New York city. It is founded in 1914 by the Thomas Lyle Williams,
headquarter situated in Manhattan, New York, United State. In this report factors which
influence international marketing pricing decision and role of Gray marketing as well as
strategies to decrease the impacts of Gray marketing are covered in this project report.
TASK
Critically evaluate the factors that will influence your international pricing decisions in the
chosen emerging market
Emerging markets are also termed as the emerging economies and developing countries of a
particular nation that invest in more product capacity. The respective market moving away from
their traditional market and traditional economy activities. Leaders of emerging markets create
better quality products to enhance their lifestyle (Abraham and Reitman, 2018). These markets
are rapidly adopting industrialization through free market. Skin care brand such as Maybelline
which is focus on business to customer market want to enhance opportunity by creating
emerging market in Brazil. So, there are various factors and aspects that influence the
international pricing decisions of Maybelline in order to provide its products and services to
respective emerging market. As the pricing is the most difficult decision in marketing process
because of having competition in respective emerging market, regional trading blocks as well as
exchange rates. These factors are discussed below:
Political factors: Political factor such as lows and regulations, political stability as well
as instability of Brazil influence the international pricing decision of Maybelline in effective
manner (Suarez and Belk, 2017). All these factors are necessary for product modification,

compile all health and safety as well as environmental regulations. Apart form them many
policies and legislations that are imposed by the government of respective emerging market also
plays important role in setting price of products that are exported to the market.
Economic factors: In economic factor GDP of emerging market is play essential role to
attract foreign markets to deal with country to provide products and service to gain profits.
Inflation and growth rate of economy, distribution level of income and other activities affect the
international marketing and pricing decision of products and services that are offered by the
Maybelline skincare brand to the Brazil country (Bamberger, Bronshtein and Yemini, 2020). The
economic environment of host country influences the pricing decision effectively.
Social factors: Customers of different culture, place or country have different taste as
well as different response towards same product and service. Hence, demographic structure of
respective emerging marketing must be considered by the Maybelline brand before setting
prices. To provide skin care products across the country Maybelline has to adopt social such as
local material culture, education and religion, attitude and values as well as purchasing behaviour
that influence the international pricing strategy that should be formulated according to respective
customers of Brazil and their preferences and perceptions as well.
Technological factors: All technological factors and aspects are determined by the
Maybelline brand in order to establish effective communication with all customers of Brazil to
respond quickly to customers needs. respective organisation should be rely on various existing
distribution and transportation facilities to deliver its products and services to the emerging
market customers. All cost that are related to these factors influence the pricing strategy of
respective skincare brand. Now various technological upgradation and innovations are happened
such as internet that facilitates the organisation to being in connection with customers and
suppliers.
Price-quality relationship: Prices of products are strongly influenced by the quality of
products because customers of Brazil have various options to switch their products from
different competitors who are providing better quality products on affordable prices (Guercini
and Milanesi, 2017). As the Maybelline skincare brand provide better quality skincare cosmetics
and products to their customers that influences its pricing decisions effectively. Respective
organisation set price according to products that is provided in the market of Brazil.

Competition: Competition level within respective emerging market is able to influence
the international pricing strategy of Maybelline skincare brand. Organisation evaluate the
competition level as well as competitors pricing policies in order to set international pricing of
products as services. The organisation respectively provides products at low prices to gain wide
market share and take sustainable competitive advantages (Herstein, 2017). As, competition
within emerging market is the important aspect that affect the pricing decisions that must be
considered by the Maybelline skincare brand.
Cost and demand: Cost as well as demand are some factors that influence the
international pricing decision of Maybelline. In production of product involves various
expenditures such as direct and indirect cost that affect the overall pricing. On the other hand,
demand is also a important factor like if demand of skincare products in Brazil in high than the
organisation set high prices that maximise profitability ratio as well.
Marketing policy and export strategy: The international pricing decision is also affected
by the distribution channel through which products are delivered to customers of emerging
market, promotional activities as well as after sale services. Shorter period of export strategy is
the major factors that plays important role in establishing effective and appropriate pricing for
products selling in international markets. Price skimming and penetration are some strategy that
are used by Maybelline skin care brand in order to set pricing of its products and services.
Discuss the role of “Grey Marketing” in International Marketing and suggest possible strategies
to reduce Grey Marketing
Grey Marketing: Grey marketing is defined as the form of arbitrage in which grey marketers
purchase products from market place where prices are lower as well as sell them in different
markets where prices of that products are comparatively higher. Differences between prices are
the benefits of marketers. It is generally used to describe the sale of organisational products that
are intellectual property rights without having any permission of property owner in respective
market place (Hollebeek, 2018). It is related to the trading of business commodities through
various distribution channels which as not authorised by the original manufacturer as well as
trade mark proprietor. There are five examples of grey marketing such as unavailability of goods,
temporary demand, differences in prices of products, convenience and various rules and
regulations that are imposed by government on organisations of particular territory.
Roles of Grey marketing in international marketing:

Grey marketing plays important role in international marketing as well as affects its
activities in positive as well as negative manner. organisation must evaluate all factors related to
grey marketing than take decisions according which help organisation to reach potential
customers as well as persuade them to purchase products. Some role of grey marketing are
discussed below:
Establish direct online channels: Grey marketing help organisation to as well as manufacturing
department to create effective direct online channel through which retailers can sell their
products and services in respective market of other country as well. Direct online channels
facilitate marketers to earn extra profit by selling low priced products and services at high price
in another country as well as market place (Ju and Gao, 2017). Grey marketing plays important
role in international marketing to connect customers of other country with organisation and
provide them better quality products and service at low price than other competitors.
Enhance business competition: As in the grey marketing the products are supplied by the
organisations to their competitors at low prices that enhance the competition level that enhance
the value for international marketing as well. Because of having high competition organisational
which are involved in international business provide effective and quality products in order to
establish effective brand value that facilitates the respective organisation to gain various
sustainable competitive advantages as well.
Affects profitability: In the grey marketing, products and services are promoted that are sold on
low cost that is decided by the respective organisation. The prices of products are established
after calculating the profit margin of organisation that affects business overall profitability level
and provide it various competitive advantages than other competitors (Lundberg, 2019). In
international marketing, organisations promote their products and services to sell them to
potential customers world widely. So, grey marketing plays important role in international
organisations to gain desirable profitability level.
Multiple market prices: Because of having parallel marketing, organisations are dealing
with products that are offered in differentiated prices that confused to the customers that affect
the business functions and procedures. In grey marketing the original brand offer the product at
high price and grey marketers offer same products in lower price that affect the international
marketing as well.
Strategies for removing Grey marketing:

As grey marketing affects the business functions and their profit margin as well as. This is
the unauthentic way to earn profits that must be remove by the organisation through developing
various effective strategies and policies in order to create effectiveness and run business in legal
manner across the country. Strategies for removing grey marketing from business are discussed
below that are adopted by the Maybelline skincare brand:
Use an intelligent software for monitoring: To get the proper information about the products
that are involved in the grey marketing various updated software are utilised by the respective to
organisation to remove grey activities from business (Magnusson and Westjohn, 2019). There
are various tools and techniques are implemented by Maybelline such as Blackbee Business
intelligence software that facilitates organisation to evaluate data. Effectively monitoring and
controlling help organisation to efficiently remove all unethical activities from organisations.
Make employee aware about grey market: Organisation can successfully remove grey
marketing from their organisational activities through enhancing employee knowledge as well as
their awareness regarding grey markets, its activities and harmful impacts on respective market
place. As the products prices are varies across the region because of their requirement,
distribution cost and warranty claims that creates price differentiation in different countries as
well. proper awareness helps Maybelline to eliminate grey marketing activity from business
functions.
Protect organisation by creating contractually with partners: Organisation must evaluate
the contract that compile all rules as well as regulate by legal framework agreement before
working with any distribution partner. Maybelline oblige their distribution partners to prepare all
document transactions and grant all auditing options in order to provide better quality products to
emerging market like Brazil on same price and help to protect organisation from grey marketing.
Enhance awareness about organisation customers: Proper research is being conducted by the
Maybelline to know about its potential customers to provide them suitable products and services
on affordable prices. Potential structure facilitate organisation to recognise grey marketing in
efficient manner (Sharma, Kumar and Borah, 2017). Different random test as well as serial
number tracking are implemented by to identify that weather their products are included in grey
marketing activities.
All these strategies help respective organisation to protect their products from grey market
activities as well as marketing.

CONCLUSION
From the above report, it can be concluded that international marketing in an important part for
business which as providing their products and services across national borders. There are
various promotional activities, pricing strategies as well as effective business plans are
formulated in order to provide better quality products to their customers of other countries. There
are various internal as well as external factors that influence the pricing decisions. All these
factors are properly evaluated by organisation than effective decisions are taken that provide
competitive advantages than other competitors. Grey marketing plays important role in
international marketing so, organisational develop suitable strategies in order to reduce to effects
of grey marketing on organisation performance.

REFERENCES
Books and Journals
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Bamberger, A., Bronshtein, Y. and Yemini, M., 2020. Marketing universities and targeting
international students: a comparative analysis of social media data trails. Teaching in
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Guercini, S. and Milanesi, M., 2017. Extreme luxury fashion: business model and
internationalization process. International Marketing Review.
Herstein, R., and et. al.,2017. Exploring the gap between policy and practice in private branding
strategy management in an emerging market. International Marketing Review.
Hollebeek, L.D., 2018. Individual-level cultural consumer engagement styles. International
Marketing Review.
Ju, M. and Gao, G. Y., 2017. Relational governance and control mechanisms of export ventures:
an examination across relationship length. Journal of International Marketing. 25(2).
pp.72-87.
Lundberg, H., 2019. Bank relationships’ contributions to SME export performance. International
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Magnusson, P. and Westjohn, S. A., 2019. Advancing global consumer culture
research. International Marketing Review.
Sharma, A., Kumar, V. and Borah, S. B., 2017. Ritualization: A strategic tool to position brands
in international markets. Journal of International Marketing. 25(2).pp.1-24.
Suarez, M. and Belk, R., 2017. Cultural resonance of global brands in Brazilian social
movements. International Marketing Review.