Strategies for International Marketing: Hawthorn Company Analysis

This report provides a comprehensive analysis of international marketing strategies, focusing on the expansion of Hawthorn Company into global markets. It begins with an introduction to international marketing, outlining its scope and key concepts. The report then delves into the rationale for international expansion, discussing opportunities like foreign investment and access to talent, as well as challenges. It explores various market entry strategies, including exporting and licensing, and evaluates the key criteria for selecting international markets, detailing the stages of country identification, screening, and final selection. The report further examines different market-entry strategies, such as exporting and franchising, outlining their advantages and disadvantages. The report also examines the impact of international marketing on the company's product, price, place, and promotional distribution approaches, alongside the key arguments in the global versus local debate. Finally, it analyzes different international marketing approaches that a business organization can adopt, comparing home and international orientations, and ways to assess competitors to outline implications of each approach. The report concludes with a summary of the key findings and recommendations for Hawthorn Company's international marketing efforts.

International Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
LO.1.................................................................................................................................................1
P.1. Analyse the scope and key concepts of international marketing.........................................1
P.2 Explain the rationale for it to want to market internally and describe the routes to market
the operations..............................................................................................................................2
LO 2.................................................................................................................................................4
P.3 Evaluate the key criteria and selection process to use when considering which
international market to enter.......................................................................................................4
P.4 Different market-entry strategies and their advantages and disadvantages..........................5
LO 3.................................................................................................................................................7
P5 Overview of the key arguments in global versus local debate...............................................7
P6 How the product, price, place and promotional distribution approach differ in variety of
international context....................................................................................................................7
LO 4.................................................................................................................................................8
P7 Explain and analysis the various international marketing approaches in the business
organisation can be adopted........................................................................................................8
P8 Compare home and international orientation and ways to assess competitors to outline
implications of each approach.....................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
International marketing is the application of marketing principles in more than one
country by companies overseas or across national borders (De Mooij, 2015). It is the marketing
activities coordinated as well as integrated across multiple country markets. Marketing activities
play a strategic roles in expanding the market in international platform. This present report is
context with Hawthorn company of United Kingdom. It is one of the leading clothing company
in UK producing garments of the highest quality. This present report will help company to
expand in international market by strategic international marketing. This report will also analyse
the scope and key concepts of international marketing. Further this report also evaluate entry
selection of international markets and also define the success factors. Moreover, this assignment
will also investigate the factors of marketing plan which can be adapted across the global market.
In the end of the report, different approaches of international marketing will also include in this
assessment.
LO.1
P.1. Analyse the scope and key concepts of international marketing.
International marketing is very broad concepts, the scope is also very wide. International
marketing which is called as global marketing has earned a great scope today. It is very
important that to expand the business in international marketing, it is very important to gave
strategic plan and strategies. Hawthorn company is going to expand the business in the global
market so it is very important that company should have complete information about the global
market (Hakansson, 2015).
The scope of International Marketing
Imports- The products which are imported or brands works in the same way like it does
for a whole country. Company may purchase products so that they can resale it to potential
customers base in home country that they have collected with the lot of efforts as well as hard
work. In order to improve the production line, usually organisation takes help from imports for
their personnel used. Companies do this activity when they are confidence that it can lead them
to accomplish to desire goals and objectives.
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Exports- It is same as in terms of concepts for a brand as it is for the nations.
Organisations used to sell their products in international market or on to their other franchises in
far off markets where they can sell their products in the communities in order to generate huge
revenues and profit. On the other hand, it is not only limited that finished goods are exported
only but companies also export semi-finished goods in the international market (Hult and et.al.,
2018). Exports and imports both aids the company to develop and expand in the international
market.
Joint Venture- It is the name of collaborative organisations two brands for sensible time
period. A new venture takes birth by joining of two firms that work jointly for achieving the
common goals and objectives other than parent organisation. The profit, loss and expenses all are
divided in equal ratio.
Key Concepts
International Trade- trade means selling and purchasing of goods and services in global
market. International trade means selling and buying of goods in international markets. In
international market company exports and import its goods and resources to the customers as
well as its branches (Knight, 2015).
Targeting Demographics- It is very important for the organisations to target the
demographics in order to raise the strategies of marketing. It is fact that the success and
achievements of marketing strategies is directly depends on the targeted group as well as its
features. For example- Hawthorn company is dealing in clothing brand, thus, the best
demographic group to target the customers are females.
Closed Looped Marketing- This is one of the most important concept of international
marketing. It means the regular monitor of the response of customers to the marketing techniques
or methods. It is fact that when customer know the actual needs and expectations of customers
that it become very easy for the company to grow and expand in the international markets
(Papadopoulos and Heslop, 2014). Closed loop marketing is very complex task in international
market because customers are completely new.
P.2 Explain the rationale for it to want to market internally and describe the routes to market the
operations.
International marketing gives numerous opportunities for the company or the industry to
grow and develop. Hawthorn Hotel is going to expand there business in China and there are
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various opportunities for the company to raise there market share and profit of the company. The
significance of international expansion is describes as follows-
Opportunities for gaining foreign investment- This is one of the emerging opportunity
that company can gain from international expansion. Companies with the global activities can
also take advantage from the opportunities of lucrative or profitable investment which might be
not present in there home country (Skarmeas, Zeriti and Baltas, 2016). For Hawthorn company
there are numerous opportunities available in China for more growth and development.
Access to Talent- This is also another advantage of expanding the business in global
market. Company can access new talent as well as skilled and knowledgeable candidates from
the country. In many conditions, Hawthorn company can take unique advantages from
international workforce or employees.
Competitive Benefits- This is also one of the great opportunities that company can gain
form internation expansion. It is true that companies used to select expansion in internal market
because of gaining competitive benefits over there rivalries. For example- Hawthorn company is
expanding there business in China where the opponents does not have satisfactory performance
often gain the first benefits.
Several routes to enter in foreign markets
Exporting-This is one of the best route that company can use to enter in the global
market. There are tow types of exporting which are direct exporting and indirect exporting. The
exporting which is straight forwards is known as direct exporting. In this type of exporting,
company used to sell there products by their own name and own efforts. Whereas in indirect
exporting, the goods and services are sold by any other export agencies in home country. The
power of control in direct exporting is remains in the hand of the company but in indirect
exporting the power and control remain in the hand of other agencies. Thus, exporting is the best
way to expand the business operation in internal market.
Licensing- This is very broad route of expansion as it includes franchising, turnkey
contracts and contract manufacturing. This is also one of the best way to enter in the global
market. Licensing is where the company charges feel or royalty for the use of technology, brand
and expertise as it is a systematic arrangement where organisation transfers the rights to other
company in order to use their goods and services (Zhao and Priporas, 2017).
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Franchising- This is also one of the best way to expand the business in the global
market. This option is best for the organisations operating in the business of clothing and food
items. It is the relationship in which franchisor provides rights to the franchisee to carry-on the
business and offer assistance in organizing, training, marketing, merchandising as well as
managing in return for a monetary return.
Opportunities and Challenges that marketing globally presents to a company
Challenges
There are various challenges and opportunities that is faced by organisations in
international marketing which are as follows-
Challenges Opportunities
Trade Barriers
Challenges of ethics and norms
Political instability
Market Expansion
Access to new talent
Market expansion
LO 2
P.3 Evaluate the key criteria and selection process to use when considering which international
market to enter
International marketing is very broad and wide concepts. When company decide to enter
in the international market it is very important to follow the legal procedure and all steps to enter
in the market. Hawthorn company also have to follow all the legal procedure for entering in the
international platform. There are four stages that needs to be follows while expanding the
market on international platform. Here are key steps that which are as follows-
Stage 1- Identification of the country
This is first step when company moves to enter in the global market. In this first stage,
hawthorn company will identify the internal and external factors of environment that affects the
entire operations and functions of the company (Hult and et.al., 2018). It is very important to
track the external environment because the international market is entirely different from the
home country.
Stage 2- Preliminary Screening
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This is the second stage to enter in the international market as it includes scoring, grading
or ranking of counties on the basis of external factors or macro environmental factors that affect
the prof, operations, functions and performance of company in the international market. For
example, foreign exchange rate, stability, currency fluctuations etc. This step is also very crucial
for the organisation to carry on the business on international level and to achieve the desire goals
(Morschett, Schramm-Klein and Zentes, 2015).
Stage 3- In-depth- Screening
In order to enter in the international market this is third step which need to be followed
by the company when they decided to expand their business. This is the third stage which
involves the in-depth screening of micro or internal factors that affect the entire business
operations and functions. In addition to this, it includes the pricing of the product and services,
competitive forces, segmenting, targeting and positioning.
Stage 4- Final Selection
This is the last and the final stage to enter in the global market. In this stage organisation
have to select one of the best option by comparing all other options. Organisation will select the
that country that have more opportunity for growth and expansion.
P.4 Different market-entry strategies and their advantages and disadvantages.
There are various options for Hawthorn company to enter in the international market.
Market entry strategies means the systematic as well as planned distribution of products and
services in the new market (Demangeot, Broderick and Craig, 2015). It is very helpful for the
organisation in order to enter into a new market.
Here are the market entry strategies-
Exporting- This is one of the best strategy than Hawthorn can use to enter in the
international market. Direct exporting and indirect exporting are the two main types of exporting.
Straight forward exporting is known as direct exporting. In direct exporting, company used to
sell there products by their own name and own efforts. Beside this, in indirect exporting, the
goods and services are sold by any other export agencies in home country. For example,
Hawthorn company can make contract with export agency of India and start selling the products
in the new market.
ADVANTAGES DISADVANTAGES
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 The power of control in direct
exporting is remains in the hand of the
company.
 Expenses are less than compare to
other.
 Increase sales, profit and
competitiveness.
 In indirect exporting the power and
control remain in the hand of other
agencies.
 Financial Risks
Franchising- This is also one of the best way to expand the business in the global
market. This option is best for Hawthorn company as it is operating in the business of clothing.
It is the relationship in which franchisor provides rights to the franchisee to carry-on the business
and offer assistance in organizing, training, marketing, merchandising as well as managing in
return for a monetary return (De Mooij, 2015).
ADVANTAGES DISADVANTAGES
 The risk of failure of the company is
minimized.
 A good share of market is established.
 Financing of the business become easy.
 Higher cost.
 There are huge restrictions.
 The bad image or reputation of
franchisees can affect the business.
Recommendations and Critical Evaluation of internation marketing and strategies
In order to evaluate or measure the marketing strategies, there are some methods which
are as follows-
Urgency- Importance of good in present time is called urgency.
Size of Market- how people are active or interested in buying and using the products and
services of company.
Pricing- It is the willingness of buyers to pay for the particular price.
Recommendations
The best option for Hawthorn company is to use the market entry option i.e. franchising.
This is because it is one of the best way to expand the business in the global market (Advantages
of Franchising, 2017). It is cost effective expansion because all the market research, funding for
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outlets are handle by franchisee, hawthorn does not have to spend its capital amount. Hawthorn
also acquire talented managers which is also a great benefit for home country. For example,
Hawthorn company is opening its franchising in China and they are targeting women's. But,
Hawthorn company have to keep in mind the cost of operation because in Franchising the cost
operation tends to raise, they have to comply with huge restrictions and the bad image or
reputation of franchisees can affect the business.
LO 3
P5 Overview of the key arguments in global versus local debate
As per the view of Garry and Hall, (2015), in marketers it is universal truth that in local
acknowledge when it comes to thought leadership, consistency rules. With this regard, powerful
cumulative impression has been made so that clients are reassured that experience will be same
in the world. Brand is bolstered with content and continually reinforce its values. However,
Beck, Chapman and Palmatier, (2015) argued that different market have different needs. This is
because, Hawthorne operates in different areas to fulfil distinctive level of requirements and
needs. Content generation programme also successfully developed in regional market with invite
local offices from the centre. Large multinational and small medium sized businesses now
dependent to develop pool of talent which can be operate flexibly and internationally. Difficulty
arrives to advising clients with source of their marketing. Global manager consider universal
approach to management. It is only inexperienced for appropriate transfer best practices of
management from home country to another place. In international level, Hawthorn need to focus
on adding new products and services. Hence, they can build their significant advantages to sell
more products and services to target new and existing customers. New territories can be
successfully expanded to place several products. At local level, supply of sourcing can be
successfully placed to focus on strict regulations and availability of raw material.
According to the point of Michaelidou, Reynolds and Hassan, (2015), within the local
areas, difficulties also arrives to advising clients that how to source marketing talent in the
particular areas. Consequently, difficulties arises in advising rages to recruit globally or locally.
There is simple universal approach to management. It is only the inexperienced which believe
appropriate to transfer the best practice of management from the home country to elsewhere.
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Some people can also adopt culture with appropriate behaviour to translate managerial or
technical skills as it required.
P6 How the product, price, place and promotional distribution approach differ in variety of
international context
In order to expand business in China by Hawthorne, it is important to find standard of
marketing mix that adapt to carry different business activities. It can be successfully suit to the
country with each element of marketing mix. They are as follows: Product: Basic marketing concept shows that in China Hawthorne need to focus on meet
with target market demand and requirements. It includes taking consideration with
number of factors which includes cultural background, religion, buying habits and level
of personal disposable income (Garry and Hall, 2015). This is because, on the basis of
cultural factors and marketing mix strategy, the chosen business easily develop their
positive results in China. Different variety of clothing can be successfully deliver in
China to produce more desired outcomes. Price: Pricing at international market consider complex task to the chosen business. In
this regard, traditional price consideration taken with fixed and variable costs, target
market and competition. Hence, Hawthorne need to consider additional factor with cost
of transport, exchange rate fluctuations, currency which paid by customers. Nowadays, in
international areas' internet created several challenges as customer can view global prices
and purchase items from around the world (Beck, Chapman and Palmatier, 2015).
Competitive pricing strategy used by business for clothing products of the enterprise in
China. Place: In place element, marketing mix is consider distributing of products and services
to their customers at right place and right time. Distribution in the international market to
create successful chain. It involves China market in which Hawthorne expanded their
operations and functions. In each country, products and services distributed to investigate
distributional channel. Hence, different people such as businesses, retailers, wholesaler,
consumers, etc. the chosen business determines place to sell their products (Michaelidou,
Reynolds and Hassan, 2015). With online and physical store, China can be expanded at
different places to focus on desired level of results.
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 Promotion: In China, there are different types of promotional activities that assists to
distribute products in several areas. With this regard, advertising message in countries
adapted because of changes in language, political climate, cultural attitude, religion
practices. Promotional strategies assists to focus on cultural background and practices
which affect to consumers. Hence, level of media development and availability also need
to take into account. Advertisement tools used to promote products in China by
Hawthorn.
LO 4
P7 Explain and analysis the various international marketing approaches in the business
organisation can be adopted
In international market, there are different kinds of approaches exists that assists to
increase positive results to develop significant advantages. In this regard, Hawthorne operates to
gain sustainability with examined marketing program. This program assists to continue expand
their operations in new and current market. They are as follows: Centralised approach: In centralised approach of international marketing, team need to
set effective decisions in plan and execute more important program. When Hawthorne
makes sense with marketing department, they need to highly competent and experience to
work in China market. Furthermore, they can also find expertise that assists to marketing
team to localise material at right level. Direct exporting on own country subsidiaries
require little or no localisation. Hence, highly globalised markets includes certain types of
software to increase products and services in international areas. With the help of this
approach, focus also needed on developing country with marketing capabilities and
scalable processes that develop scientific products and services. If the chosen
organisation adopt centralise approach, focus on developing nation with manage
marketing talent carefully and hire great professionals.
 Decentralised approach: Decentralised marketing approach consider several functions
and decision making strategy to primarily pushed into field. With the help of small
consideration, independent distributors or representatives. In addition to this, it is the
option that rely on local in country sales offices so that it is best approach for Hawthorne
for products that are heavily regulated in the industries. Furthermore, the chosen business
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can also significantly localised their order to sell items in different markets. There is
strong market bias towards local language and sales connection (Michaelidou, Reynolds
and Hassan, 2015). In China, employees are fully trained so that the chosen business have
limited resources to cope up with desired level of results. In order to focus on
decentralised approach, support and motivate in the local marketing staff and
representative exists. With the help of marketing material, template produced for local
marketer to increase approach to develop relationship within the country.
 Online and physical store: In the market of China, Hawthorn can expand their
operations and functions to continuous develop significant advantages at workplace. With
online, they can build and create website to focus on goals and objectives. On the other
hand, physical store also assists to target several customers with using different strategies
such as recruitment, selection, etc.
P8 Compare home and international orientation and ways to assess competitors to outline
implications of each approach
Home and international two kinds of markets in which Hawthorne need to operate with
their effective consideration and development program. International orientation consider degree
and nature of involvement where companies can vary widely that is important for whole
consideration development (Garry and Hall, 2015). Depending on the nature of business
operations and producing products is suitable for the foreign environment and customers. Hence,
the chosen organisation perform business with different orientations. They are as follows: Ethnocentric: In this strategy, extension includes for different domestic products that is
suitable for foreign market. In order to dispose excess of domestic production (Beck,
Chapman and Palmatier, 2015). Prime focus of the enterprise is to develop products of
Hawthorne in China in domestic market environment. There are different strategies
developed according to local market conditions. This kind of orientation includes
producing products to satisfy customers of home country with implementing different
tactics and strategies. Marketing mix also develop on the basis of suitability so that
international business also create purpose to dispose surplus domestic production. This
orientation is considered as home country orientation that works on domestic market that
is superior. Focus on similarities between home and foreign market continuously develop
with extension of domestic market.
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