HND Business Management, Unit 40: International Marketing Report, 2017

This report provides a comprehensive analysis of international marketing strategies, using Dorothy Perkins, a UK-based fashion retailer, as a case study. The report begins by defining international marketing and its scope, differentiating it from domestic marketing, and exploring key concepts. It then examines Dorothy Perkins' rationale for international expansion, specifically focusing on the Russian market, and evaluates various routes to market, including franchising and online sales. Furthermore, the report outlines key criteria and selection processes for entering international markets, such as GDP development, legal and regulatory barriers, and cultural considerations. Finally, it explains various market entry strategies, including franchising, direct exporting, and licensing, discussing their respective advantages and disadvantages. The report highlights the importance of adapting marketing strategies to cultural differences and the benefits of international expansion for business growth and consumer base enhancement. This assignment is a valuable resource for students studying international marketing and business management, providing insights into real-world applications and strategic decision-making in a global context.

HND Business Management October 2017 Group 1
Unit 40: International Marketing
2229 words

International Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1. Analysis of the scope and key concept of international marketing......................................1
P2. Rationale and various routes to market they can adopt........................................................2
P3. Key criteria and selection process to use when entering in international market.................3
P4. Explaining various market entry strategy including advantages and disadvantages............4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
International marketing can be defined as implementation of activities of marketing
exceeding national borders of country. The study of international marketing will begin with an
understanding of key concept and scope of marketing at international level. The essay is based
on Dorothy Perkins, fashion retailer in the women segment that is based in UK. The present
essay aims to evaluate various opportunity and challenges that are associate with international
marketing. Various routes to enter in global market will also analyse including various market
entry strategies. The study also provide a brief understanding of the criteria and selection process
that company should use when considering which international market to enter.
MAIN BODY
P1. Analysis of the scope and key concept of international marketing
Overview of the company
Dorothy Perkins is multinational fashion retailer for women. It was founded in 1909 and
headquartered in London, UK (Dorothy Perkins, 2019). Dorothy Perkins is a part of Arcadia
group that controlled by Philip Green. The company sells both branded fashion products and
own range of clothes. Area served by the organisation includes; UK, India, Ireland, Kuwait,
Turkey and 17 more countries.
Key concept of international marketing
Marketing is the activity and process for developing, interacting, delivering and
exchanging value to consumers and for manage the relationship with consumers (Alguacil, Martí
and Orts, 2017). In the business strategy, marketing have an important role to play to increase
brand awareness, market the products, attract consumers, generate revenues, etc. International
marketing is the strategy developed by the organisation that allow to take better opportunity to
enter into foreign markets and expand the activities across the boundary. International marketing
strategy developed by the company when they are planning to carry out business in other nation.
International marketing includes dealing crossways between markets of different nations in
which exclude the unmanageable components also the controllable components for instance,
cost as well as price, opportunities in context of advertisement and distributive infrastructure.
Varies importantly between one market to other. These sorts of deviation then give rise to
complexities of international marketing. On the other hand, Global marketing management is an
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even larger and more complex international operation where enterprise coordinates, integrates
and controls a whole series of marketing programmes into a substantial global effort
(INTERNATIONAL MARKETING WITHIN AND BEYOND VISEGRAD BORDERS, 2014).
Difference between international marketing and domestic marketing can be arise in terms
of culture, language, ideology differences and more. Obtaining international marketing is more
difficult than national, mainly because of language barriers (Budzinski, 2017). Message in
advertisement also should care or cultural differences. The purpose of International marketing is
to advertise value and importance to formulation and implementation of marketing strategies in
foreign market. The advantage of international marketing can be stated as it provides higher
standard of living and benefited in rapid industrial growth.
Scope of International marketing
The use of social media, internet and advertisement has motivated the global marketing
development and growth. Globalisation is a witness of change and providing a path to the scope
of international marketing (De Mooij, 2018). There are various factors that have influenced
growth of international marketing;
Import is the easiest way of international marketing an organisation. It is purchasing of
goods and services through external source out from the boundaries of nation. This component
provide an opportunity to the company to import their goods. Opposite to import, Export refers
to the trading of products and services from one region to another through marketing it on social
media. Company can market internationally through sell the products through franchisee or any
other form that help in generate huge revenues.
Making contractual agreement provide a scope of international marketing to the
companies to expose its greater chance to expand the market and consumer base (Eteokleous,
Leonidou and Katsikeas, 2016). It is different from joint venturing as JV occurs when two brands
come together and enter into potential markets. In contractual agreement two parties do not have
to distribute market share equally like Joint venture.
P2. Rationale and various routes to market they can adopt
Dorothy Perkins is the market leader in the women's fashion relating store in UK. They
sell own manufactured goods and products from various brands in UK as well as in 21 more
country (Gillespie and Riddle, 2015). The retailer clothing company is very famous in UK and
expanded the business in various countries that help to build a strong and expanded consumers
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base. The plan of the organisation is to develop effective strategy and select a key route that will
help in selecting the best route to enter into new market. There are many benefits through which
Dorothy Perkins has selected Russia to market their products and services and established at the
effective position in the new marketplace. Marketing internationally helps the company in
enhance sales and profits. Along with it, extending consumer base internationally can assist the
industry to develop new products and make them able to learn from the competitors. This will
also enable them to bring more innovation and creativity in their products and services and
overall organisational structure (Johanson and Mattsson, 2015).
The reason is to select the market internationally by Dorothy Perkins is the market of
Russia is economically very stable and international marketing enable the company to reach the
population that bring an immense change in positive manner. Moving internationally is also
provides an advantage to the company to enhance the demand of products and services. Focus on
the planning of the company is because the future opportunity and diversified market growth
(Ozturk, Joiner and Cavusgil, 2015).
Franchising is the most effective way for Dorothy Perkins as it deals with the repetitive
business model such as; clothing outlet that is easily transferable to the new market. The
franchising can be defined as the system in which business grants another party the right to
utilise the trademark and brand name as well as certain process and system of business to
manufacture or promote the products and services as per the certain specification. Website is also
the easiest and low cost way to enter into global market. For promoting the products or selling
directly to the consumers. It is an efficient manner that provide a route to market internationally
and should adopt by the organisation. This market route will allow franchiser to grow the supply
chain in minimum time ( (Global marketing management,2014 )). It is the marketing concept
that can be adopted by organisation to developing chain stores in order to deliver products and
services. Franchising is also effective in enter into Russian market as expansion plan of the
company assist in managing change in its promotion and advertising that will improve the brand
equity (Solberg, 2017). It is one of the effective approach of international marketing and by
looking at the benefit of the franchising concept, Dorothy Perkins should adopt international
franchising as their main market entry method in the global market of Russia.
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P3. Key criteria and selection process to use when entering in international market
There are many elements that should consider by Dorothy Perkins while entering in the
international market that ensure the success of the expansion plan.
Key criteria
Development of GDP- The main key criteria before entering into the international market
is GDP development. Dorothy Perkins is planning to enter into the Russian market. The
economy rank of Russia is positioned at 12th largest by nominal GDP. The GDP increased by
1.4% in the year of 2019. This stated that the company can expand in the market of Russia.
Legal and regulatory barriers- Russia is an opportunist marketplace for company with
demanding consumers and growing market. However, continuous political and legal stability in
Russia is slightly worrying. Russian laws and regulatory can be a barrier to the company. But
with proper strategies and plan company can make their activities efficient that overcome the
possible barriers.
Culture- Culture of Russia is the major issue for Dorothy Perkins and it is essential for
the company to consider this key criteria as the strategies regarding marketing and conveying the
message can hurt the cultural norm of the consumers (Stead and Hastings, 2018). Thus, company
should develop their p[lan on marketing and designing of products as per the country's culture.
Selection process
Country identification- This is the first step in entering in the international market. Thus,
Dorothy Perkins should identify the necessary elements that provide opportunity to the company
should consider. The country can be identified on the basis of analysing macro environment that
stated that political and legal environment of the country is unstable, economy of the country
provide opportunity to the business growth and success.
In depth screening- Under the second stage, marketer of Dorothy Perkins will identify the
feasibility of the market of Russia through collecting detailed information regarding the target
market. In this step, marketer also conduct micro environmental analysis of the firm and identify
the capabilities and weakness and is responsible to identify the need of target market (Stead and
Hastings, 2018).
Final selection- After identifying the micro environment of the country and macro
environment. Also, organisations will lay emphasis on the competitors and secondary option for
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its product. On the basis of which, it will decide the price of its product. After all these criteria
marketer will give final scoring, weighting and ranking and will shortlist remaining nations.
Personal experience- Personal experience is an essential part where marketer will travel
to the selected nation that is Russia to see actual culture and procedure of carrying business
practices. Here representative of Dorothy Perkins will compare which things are similar and
dissimilar to its country, and will understand the trends of the nation. Finally, it can establish its
branch in Russia.
P4. Explaining various market entry strategy including advantages and disadvantages
The selected country for the expansion of the organisation is Russia. There are variety of
ways in which an industry enter into a foreign market. There are following types of market entry
strategy that can be used by Dorothy Perkins in the strategy;
Franchising- In this method company expand the business in other market across the
national border through providing right to manage, organise and merchandise the organisational
activity. This can build up in the form of an agreement where, franchisor provide license to
franchisee (Solberg, 2017). There are some Advantages and disadvantage of this strategy. The
advantage is the risk of business failure is reduced and products and services will already have
build a market share. The disadvantage of this strategy are; the cost is higher than any other
strategy and it may include some restriction.
Direct Exporting- Direct exporting refers when a company sell their products and
services directly to the new market utilising their own resources. Through this market entry
strategy, Dorothy Perkins can export directly to the consumers rather than distributing it to the
third party. This is the best strategy as company is very much active in online selling that remove
the chain of distribution. Advantages of this strategy are that the potential profit is higher as the
intermediaries are eliminated, it enables faster and direct feedback and disadvantage is that it
contains high degree of risk and required higher investment.
Licensing- In this agreement, Dorothy Perkins can provide a license rights to use a
product that the licensor already owns (Ozturk, Joiner and Cavusgil, 2015). In this, owner of the
company gives rights to the licensee to have regarding its intellectual property, brand name and
the product which licensor is offering. The advantage of this strategy is encourages innovation,
help to reach the products faster in the market and the disadvantage of this strategy are it creates
dependency upon the licensor and can damage the reputation of brand name. According to the
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Kotabe the different modes of entry into the market which can be adopted by the companies
includes licensing, exporting, franchising, Joint venture etc. As per the Kotabe the best method
of entering into market that can be adopted by firm are Franchising. It is the entry mode which
involves less risk (Global marketing management,2014 )
CONCLUSION
As going through the above study of Dorothy Perkins International marketing plan, it has
been summarised that marketing and entering in the international market enabled the company to
speed up the growth and development and it also helped the company in build strong consumer
base and generate revenue and sales. The best route has been analysed in the study for
international market is Franchising. There are various market entry strategy discussed in the
study and it can be summarised that all the strategy contains some advantages and disadvantage.
But the major barrier has been identified in international marketing is language and cultural
barrier that is required by the company to take care of.
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REFERENCES
Books and Journals
Alguacil, M., Martí, J. and Orts, V., 2017. Firm heterogeneity and the market scope of European
multinational activity. International Review of Economics & Finance. 51. pp.645-659.
Budzinski, O., 2017. Lead Jurisdiction Concepts: Prospects and Limits for Rationalizing
International Competition Policy Enforcement. Global Economy Journal .18(2).
p.20160025.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
Eteokleous, P. P., Leonidou, L. C. and Katsikeas, C. S., 2016. Corporate social responsibility in
international marketing: review, assessment, and future research. International Marketing
Review. 33(4). pp.580-624.
Gillespie, K. and Riddle, L., 2015. Global marketing. Routledge.
Johanson, J. and Mattsson, L. G., 2015. Internationalisation in industrial systems—a network
approach. In Knowledge, networks and power. (pp. 111-132). Palgrave Macmillan,
London.
Ozturk, A., Joiner, E. and Cavusgil, S. T., 2015. Delineating foreign market potential: A tool for
international market selection. Thunderbird International Business Review. 57(2). pp.119-
141.
Solberg, C. A., 2017. International Marketing: Strategy development and implementation.
Routledge.
Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix: getting the balance
right. In Social Marketing(pp. 29-43). Psychology Press.
Online
Dorothy Perkins. 2019. [Online]. Available Through:<https://www.dorothyperkins.com/>.
INTERNATIONAL MARKETING WITHIN AND BEYOND VISEGRAD BORDERS, 2014
[Online]. Available Through:< [Online]. Available
Through:<https://www.dorothyperkins.com/>..
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Global marketing management,2014. [Online]. Available Through:< [Online]. Available
Through:<https://www.academia.edu/37319626/Kotabe>..
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