International Marketing Report: Sannies Company's French Market Entry

This report provides a comprehensive analysis of Sannies Company's international marketing strategy, focusing on its potential expansion into the French market. It delves into crucial aspects like branding, assessing the competitive landscape and cultural barriers. The report examines product adaptation, considering technological and regulatory requirements for footwear. Pricing strategies are evaluated for both mature Western and emerging Eastern European markets, considering economic factors and consumer behavior. Logistical challenges in Eastern Europe, including supply chain issues and Brexit regulations, are also addressed. The advantages of developing an online presence versus opening a flagship store are compared, and promotional options, including sales teams, digital influencers, and sponsorships, are analyzed. The report concludes with recommendations for additional promotional methods, providing a strategic roadmap for Sannies Company's international market entry and growth.

INTERNATIONAL
MARKETING

Table of Contents.
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Issues and suggestions on the number of international marketing factors.......................................3
1) what branding issues will the firm have to deal with before entering the European market?.3
2) what elements of the product will need to be adapted for the European markets?.................4
3) what increased costs will the company face should they decide to develop their presence in
a particular country?....................................................................................................................5
4) what pricing issues will the firm have to address should they decide to enter a mature
western European market and emerging eastern European market?...........................................5
5) What logistical issues would the firm have to consider should they decide to enter an
emerging market in eastern Europe?............................................................................................6
6) what are the advantages of developing their online presence compared to opening a flagship
store?............................................................................................................................................7
7) outline your views on the advantages and disadvantages of the three promotional options
being discussed – expanded sales team, digital influencer, sponsorship.....................................8
8) which other promotional method would you recommend to the firm, outline your reasons
for this choice...............................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
International marketing which is also known as global marketing refers to the
implementation of fundamental marketing principles and theories by the companies outside the
domestic country (Javalgi and Russell, 2018). Foreign Direct Investment (FDI), joint venture,
export, licensing are the examples of global marketing. It is significant for an organization to
expand its market share outside local border so to achieve the global brand name resulting in
increase in the sales and revenues. The report will discuss the international issues relating to the
Sannies company which is a high-quality fashion shoes Scottish producer working for almost
70 years. The quoted company is having a turnover of £30m yearly due to the high sale in UK
and Ireland. Report will evaluate the issues in regard to the international marketing elements
such as product, price, distribution and promotion activity. The market that is chosen to enter is
France. The reason behind this research is the consistent decrease in sales from the past three
years. Further, the case study will advise to each issue coming between the expansion of the
given organisation.
MAIN BODY
Issues and suggestions on the number of international marketing factors
1) what branding issues will the firm have to deal with before entering the European market?
Branding is what makes a product different from other products in the market and how
customers can easily identify the product of the particular company in the market. No matter how
much a company is famous, branding always have to be done keeping the clarity of standing out
in the market. For Sannies, a Scottish based women shoe producer, it becomes very important to
understand the international market in order to decide the branding strategy for the launching of
the product in France, which is a Western Europe country (Gillespie and Swan, 2021).
Developing a strong branding strategy for the product launch in France market is
important, as one of the challenges faced are that there already is a tough competition in the
France market when it comes to the shoes business. As Sannies focus is on serving the women in
France market and there already are many shoes brands that makes exclusive shoes for the
females in the France, this includes both domestic and national brands. It generates the need for
making brand strategy which is derived from the need of the customers so that it attracts the
customer.

The typical cultural barriers in the France market is another challenge, as Sannies is a
Scottish based brand it has to spend time on understanding the France culture and faith of the
people attached with the same so that in the process of making a European debut company
doesn't hurt the sentiments of the potential customers (Hansopaheluwakan and et.al., 2020). The
language barrier is one thing but brand should understand the strategy of the local marketers in
the business.
Legal obstacles, the recent exit of the UK from the European union which is popularly
known as the Brexit, has affected the business structure as increasing the cost due to the currency
difference and it has led to the establishment of the tariffs which impacts the branding cost of the
product.
2) what elements of the product will need to be adapted for the European markets?
Technological adaptation, as the kind of technology which is adapted by the existing
business models in the France needs to be studied. This is important to understand the kind of
technological aspect company should adapt in working in France as a new and advanced is not
always better if people don't know the use of the same. Tech background and systems should be
according to the need and understanding of the customer (İpek, 2020).
There are number of requirements which should be complied for a shoe manufacture
before entering into France market as the market has formulated robust regulation system for
any new product to be launched in the greater market. Sannies producer must fulfil the various
legally binding guidelines such as directives regarding the Product Safety due to chemicals used
by the footwear industry while manufacturing the product. The quoted company should assure
that the elements used before developing a shoe must be eco-friendly and not hazardous to the
customers. Leather which are being used by the given company must be crossed check before
using as if it does produce aromatic amines which are being prohibited by the EU (Grumiller and
Raza, 2019). The another element which plays a key important role is the labelling of footwear.
This has important part because it provides the information of the materials being used and also
made compulsory the origin label. To adapt the France market Scottish company should launch
it's all five styles of shoes which are being available with the different brand names i.e. Gallus,
Jings and Blether. These brand is based on the diversified prices and should rely on the online
streaming of their products for advertising (Klar, 2020). Before entering the France market they

should thoroughly study the customer trends prevailing in the market so to make small
modification in their products.
3) what increased costs will the company face should they decide to develop their presence in a
particular country?
Pricing of a product is a simple and straight thing and the potential audience would never
pay an extra penny against the true value. When an organisation is planning to expand in
international sphere or to different country then the price of a product may vary in the domestic
as well as international market. Sannies company is developing to another country which is
France, has to deal with many costs such as export cost, taxation cost, labour cost, shipping cost,
storage cost, taxes etc. These all costs definitely increase the overall per unit cost of the product
and the customers are not ready to avail the costs (Fridell, 2022). Because of this they would
emerge the high costs of their products with the existing quality of the products. The given
company should also bear business development cost as well as the labelling and packaging cost.
4) what pricing issues will the firm have to address should they decide to enter a mature western
European market and emerging eastern European market?
Sannies company might face pricing issue while entering into European market due to
the exisitng Brexit, economic crisis and impact of Covid-19 pandemic. European market is
further divided into two: Western and Eastern. Firstly, considering the mature Western market
the company don't have to deal with the pricing issue because this market considered as a mature
one. Belgium, Austria, Italy, Germany, Luxembourg, Spain, UK, Netherlands, France are
considered to be the countries of Western Europe (Di Stefano, Fratocchi and Merino, 2018). In
this region, the e-commerce market is relatively mature to start with a new product. Due to the
wide range of quality shoes with a diversified price group is an advantage for the quoted
company to expand its international boundaries (Selwyn, Musiolek and Ijarja, 2020). There
would be very low degree of risk considering the price range of the company in the Western
market. They should highly focus on the online dealing of the business as e-commerce market
has been well settled area and apparel and footwear is one of the most demanding industry in
Western. Regarding the payment gateway, the quoted company should emphasize on the
traditional method i.e. credit or debit cards (Hrabovska, 2021). They should focus on the better
quality with affordable and highly luxurious product without any delayed deliveries.

Eastern market which is called as Incipient market is an emerging market in future but
currently witnessing a rampant risks due to the Poland migrant crisis, central banks are having
more bad debts, rows due to Brexit and government crisis in Romania resulting in the strongest
inflation surge. For Scottish company this region might be a difficult one with the existing price
range of the products due to existing inflation rate. The pocket of the potential audience is
currently loose, and they are being restricted to purchase high quality footwear. The quoted
company should enter this market with the Gallus Brand which are relatively affordable in the
existing situation. With the span of time, the given company should include more brands to the
market as the Eastern market is comparatively emerging and will be a mature one. Therefore,
considering the current situation Western European market is more beneficial and less risky for
the given company to expand its business because of the low-mid price range segment.
5) What logistical issues would the firm have to consider should they decide to enter an
emerging market in eastern Europe?
The Eastern European market has divided with a combination of regional and global
player. The Western market has comparatively mature one which consists of giant logistics
companies (Jones and Strohecker, 2021). With the emerging trends being shifted towards the
Eastern Europe, the logistics player start to launch new distribution channels and warehouses.
For example, DHL have invested in the given market to gain market. The quoted company while
entering the Eastern European market must consider the logistical issues which arise due to the
recent outbreak of pandemic which shattered the supply chain in the given area (Bugarčić,
Skvarciany and Stanišić, 2020). Apart from this high competition in the logistics results in the
elimination of only one dependency. Complying with the Brexit regulations is another big
challenge for the quoted company which becomes hurdles while shipping the products. With the
lack of innovative technology and slow rate of adaptability to newer techniques the given
organisation has to deal with this issue. The unclear visibility of the supply-chain is another
discrepancy which might be the problem for the Sannies while entering into the emerging
market. The another reason which could be an issue is the shortage of labour force with an
increase in the freight prices due to the rise in the inflation. The customers are looking for free
shipping is another hurdle for the company which would increase the transportation cost for the
company.

6) what are the advantages of developing their online presence compared to opening a flagship
store?
Although, considering the fact that some directors of the Sannies company willing to
launch a flagship store in the major cities of Europe but after analysing or researching the market
condition the online presence have relatively more benefits than offline which are as follows:
 Cover more potential customer: E-commerce business provides an opportunity to
target wide range of audience in a less amount of time. The company should focus on the
attractive interface design of the websites and apps which definitely attract the customers
and has high chance to convert the relevant people into potential audience.
 Built fiduciary relation: In today's world, internet can play an important role and has
the power to build a trust with the audience. The online presence could create a
credibility which is the significant element for the business.
 Increase in the reputation: Online business of the shoe manufacturing product would
enhance the publicity of the company because of reaching the larger range of customers.
 Create brand awareness: The western European market has settled e-commerce which
can be a boon to the Sannies company and with having a popular brand face, this would
aid to spread awareness in that particular region. This would assist the customer while
searching the new product.
 Cost-effective: The one the biggest advantage of online presence is that it reduces the
expenditure of the company with a little investment through the platform of digital
marketing (Sun, Wang and Han, 2020). The quoted company is also in contact with the
popular female influencer who willing to become brand ambassador to promote with the
products with the channel of social media.
 Better customer care support: The quoted company online existence can provide better
opportunity to interact with the audience at any time. The queries of the customers can
be resolved 24/7 from any place which helps to satisfy the clients with proper evaluation
of the situation. This can help to get positive feedback of the company.
 Target the local as well as global: If the company opt for online presence rather than
flagship store, it has a probability to target local as well as global market. With merging
with the regional retailers who have their online market chain and for international

market joining the hands of e-commerce platform such as Sainsbury, Amazon, Walmart
etc.
7) outline your views on the advantages and disadvantages of the three promotional options
being discussed – expanded sales team, digital influencer, sponsorship.
The way a company communicates to its customer about the product is important.
Product is communicated using various promotional methods like digital platforms,
advertisement in newspapers, billboard, TV advertisements etc. (Junaid and et.al., 2019). It is
important to know the platform where most of the target market customers can have access to the
product information. Sannies is targeting the France market where digital modes are quite
prevalent in recent times, therefore the three techniques company is considering, seem to be
profitable for the business. Let's discuss each technique's advantages and disadvantages to
critically analyse the communication strategy of the company.
Expanding the sales team for the purpose of brand promotion, Bringing a bunch of
talented brains onboard who can study the market and develop the strategy to communicate the
major target market and potential market in the Europe is a good idea. As the experienced
individual will bring productivity and make the product visible to the customers via different
ways which can be attractive to all. Yet one disadvantage is that it is time-consuming process to
find the right sales individuals who can meet the expectation of the company. And further the
process of reading the market will be another time-consuming affair as France is a new market
for Sannies.
Digital influencer, social media influencers have revolutionized the marketing strategy
adapted by the companies. As the target market is women between the age of 15 to 40, this
people have huge online presence, and they must be knowing and following the influencer which
has contacted the company to be the face of the brand in France. Therefore, it seems a win
situation for the company to attract the consumers via the influencer. Yet the biggest
disadvantage is the cost, the influencer is charging most of the budget that is allocated to the
promotion by the company and this makes marketing dependent on just one source which is not a
good strategy. Sponsorship, director's idea to sponsor a television show which is viewed by the
majority of the target market is a good idea as it allows company to be recognized by a respected
measure which can make people look up to the creditability. Yet the idea that it may be just an
expensive brand maybe a disadvantage (Liu and Atuahene-Gima, 2018).

8) which other promotional method would you recommend to the firm, outline your reasons for
this choice.
There are various promotional methods available to the Sannies for the product launch in the
France. Running a detailed newspaper advertisement which attracts the consumers. Display and
banner ads which can grab people's attention. Conducting product launch drive on various social
media platforms like Facebook, Instagram, snap chat. And rather than using just one digital
influencer for the promotion, choose various influencer which can inclusively promote the
product on different platforms. As Sannies is making its debut in Europe, therefore if local
people in France are endorsing the product it will make a huge impact. This will enhance the
relatability in the consumers mind. Further, sending PR packages to the celebrities and
influencers who can try the shoes and give their honest opinion to the customers which can
increase the sale of the shoes (Ruiz-Real and et.al., 2020). All these methods can be used by
Sannies to promote the product in the international market.
CONCLUSION
The above report of international marketing has comprehensively depicted the various
challenges faced by the company for making an international debut. Sannies is a shoe producer
Scottish brand serving female customers. Report has illustrated the branding challenges like
cultural barriers etc. which are faced by the company. Also, the price strategy and cost
challenges Sannies has to deal with. Further, the distribution issues like establishing the supply
chain has been mentioned as it has huge impact on the core business activity. At last the
communication and promotional ways company is considering and more ways that are available
like digital advertisements etc. are discussed in detail.

REFERENCES
Books and journals
Bugarčić, F., Skvarciany, V. and Stanišić, N., 2020. Logistics performance index in international
trade: Case of Central and Eastern European and Western Balkans countries. Business:
Theory and Practice.
Di Stefano, C., Fratocchi, L. and Merino, F., 2018. Manufacturing relocations in the footwear
industry: A comparison between Italy and Spain. Adv Manuf Technol. 32. pp.455-460.
Fridell, G., 2022. The political economy of inclusion and exclusion: state, labour and the costs of
supply chain integration in the Eastern Caribbean. Review of International Political
Economy. 29(3). pp.749-767.
Gillespie, K. and Swan, K. S., 2021. Global marketing. Routledge.
Grumiller, J. and Raza, W. G., 2019. The Ethiopian leather and leather products sector: An
assessment of export potentials to Europe and Austria. ÖFSE, Austrian Foundation for
Development Research.
Hansopaheluwakan, S. and et.al., 2020, August. The Influence Of Social Media Marketing,
Website Quality, E-wom, And Perceived Value On The Purchase Intention (Case Study:
PT. Vita Nova Atletik's Local Brand Sports Shoes). In 2020 International Conference
on Information Management and Technology (ICIMTech) (pp. 916-921). IEEE.
İpek, İ., 2020. The relevance of international marketing strategy to emerging-market exporting
firms: from a systematic review towards a conceptual framework. International
Marketing Review.
Javalgi, R. G. and Russell, L. T. M., 2018. International marketing ethics: A literature review
and research agenda. Journal of Business Ethics. 148(4). pp.703-720.
Junaid, M. and et.al., 2019. Brand love: the emotional bridge between experience and
engagement, generation-M perspective. Journal of Product & Brand Management.
Klar, M., 2020. Binding Effects of the European General Data Protection Regulation (GDPR) on
US Companies. Hastings Sci. & Tech. LJ. 11. p.101.
Liu, W. and Atuahene-Gima, K., 2018. Enhancing product innovation performance in a
dysfunctional competitive environment: The roles of competitive strategies and market-
based assets. Industrial Marketing Management. 73. pp.7-20.
Ruiz-Real, J. L. and et.al., 2020. Destination branding: Opportunities and new challenges.
Journal of Destination Marketing & Management. 17. p.100453.
Selwyn, B., Musiolek, B. and Ijarja, A., 2020. Making a global poverty chain: export footwear
production and gendered labor exploitation in Eastern and Central Europe. Review of
international political economy. 27(2). pp.377-403.
Sun, Y., Wang, Z. and Han, X., 2020. Supply chain channel strategies for online retailers:
whether to introduce web showrooms?. Transportation Research Part E: Logistics and
Transportation Review. 144. p.102122.
Online references
Hrabovska, D., 2021. Entering the Western Europe market: all you need to know [Online].
Available through <https://corefy.com/blog/entering-the-western-europe-market-all-
you-need-to-know>
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Jones, M. and Strohecker, K., 2021. Analysis: Investors suddenly see rampant risks in eastern
Europe[Online]. Available through <https://www.reuters.com/markets/europe/investors-
suddenly-see-rampant-risks-eastern-europe-2021-11-19/>
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