International Marketing Report: Dorothy Perkins' Global Expansion

This report provides a comprehensive overview of international marketing principles, focusing on the case of Dorothy Perkins, a UK-based fashion retailer. It explores key concepts such as the scope of international marketing, various routes to enter international markets (including franchising, exporting, joint ventures, and wholly-owned subsidiaries), and the criteria for selecting target markets. The report delves into market entry strategies, discussing their advantages and disadvantages, and analyzes the global versus local marketing debate. Furthermore, it examines different international marketing approaches, comparing home and international orientations, and assesses competitor strategies. The report covers market size and growth, risk assessment, and the importance of factors like government regulations, competitive environments, cultural distance, and local infrastructure. It concludes with an analysis of promotional strategies and the challenges of international marketing, providing valuable insights into global expansion and market entry for businesses like Dorothy Perkins.

INTERNATIONAL
MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Scope and key concept of international marketing................................................................1
P2 Various routes to enter into a international market................................................................2
LO 2.................................................................................................................................................4
P3 Criteria for selection while considering which international market to enter........................4
P4 Different market entry strategies with their advantages and disadvantages..........................5
LO 3.................................................................................................................................................6
P5 Give an overview of how global market is differed from local market.................................6
P6 explain how marketing mix on global context is differed from local marketing mix...........7
P7 Assess various approaches related to international market....................................................9
P 8 explain how home and international orientation are different and assess the ways that
competitors implements the approaches...................................................................................10
CONCLUSION..............................................................................................................................11

INTRODUCTION
International marketing refers to the process of marketing activities undertaken in more
than one nation. It is the utilization of marketing principles to fulfil the various wants and needs
of different people residing across the national borders. It is also known as global marketing.
Present report is based on Dorothy Perkins. This is a multinational women's fashion retailer
which is based in UK which deals in its own range of clothes and branded fashion goods best
known for its tights and sleepwear collections. It is a part of Arcadia group. This report is
consisted of the scope and key concepts of international marketing, the rationale for an
organisation to want to market internationally with the various routes to market, opportunities
and challenges that marketing internationally presents to an organisation. The key criteria and
selection process to use when considering which international market to enter is being discussed
with examples to the different market entry strategies including the advantages and
disadvantages. It also includes an overview of the key arguments in the global vs local debate.
Lastly, this report consists of various international marketing approaches which can be adopted
by an organisation with comparison of home and international orientation ways to assess
competitors outlining the implication of each approach.
LO 1
P1 Scope and key concept of international marketing
International marketing refers to the applications of marketing principles to satisfy varied
needs and wants of all the different types of people residing across the national boarders.
Whereas, Global marketing is majorly a similar concept as international marketing but it views
the whole world as one and creates products that will only require weeks to fit into any regional
marketplace. A business is only survived if it is internally prepared for its plan for marketing. In
the era of globalisation international marketing is playing a major role in expanding and growing
a business by allowing the business to enter in international market by encouraging products
internationally.
The key components of international marketing are majorly Imports, exports, contractual
agreements and joint venturing. Importing is a major way of international marketing in which a
company can get into by importing the products from another country and sell it in the domestic
market, it is only possible when there is a demand for the product in the domestic market.
Whereas exporting is the opposite concept of importing and selling, here companies export there
1

finalised products in the international market to generate huge revenue(Kotler and et.al., 2018).
Export can only be possible if there is demand for the product in the particular market, this is
done by their own other franchises far off markets where they sell products for increasing the
profitability. Joint venture is a process where two brands come together for entering into a
potential market. Profits and loses in investments are being pre decided by both the brands for a
time period and in terms of value. With the increase in demand for the international products in
the global market, domestic businesses started converted into international businesses as it is a
simple way in entering into a international market because of low trade barriers as having
business with a local venture which is being proved extremely useful for performing business not
only operationally but also with the domestic understandings of market dynamics. Contractual
agreements are also being done in order to enter into international market. Company can grow
exponentially by getting into contractual agreements with different other partners
overseas(Vellas, 2016).
There are several benefits of global marketing which includes several aspects that helps
the organizations in several ways. It leads in creating peace among nations and it reduces risk
and open opportunities. The activities that are being associated by business such as production,
development and marketing especially in case of technology dealing in high tech products,
involve people around the world to work together in a environment having demand for various
products. The interactions for the purpose of business leads to create personal relations across the
nation which creates mutual understanding in people of two different nations. In order to fulfil
the objectives of both the brands working together in different markets come together with the
teams which involves interaction and generation of new ideas and innovations. Dorothy Perkins
is being indulged in the international marketing which helps them in generating high revenues
with demand of their products the international markets. International marketing have several
challenges with the benefits which includes several aspects. It takes time and skill to create a
campaign for a specific region, identifying personas, translation, customer data collection and
budget are the major challenges to international marketing.
P2 Various routes to enter into an international market
In order to expand and grow a business, international market is the best alternative. It
helps a business to import and export its products and services in the domestic and global
market. Emerging markets are to be determined as they are the emerging economies or
2

developing countries which are investing in more productive capacity. Global competition is also
be considered while entering into new market as it is the services and products that are being
provided by the competing companies and that can substitute the company's products. Another
aspect which is to be considered while new market entry is global integration which refers to the
process through which a company combines different activities around the world so that they
operate using the same methods. Last thing which is to be considered while new market entry is
internet revolution which has played a significant role in globalization, it is the process through
which businesses are being conducted online with the help of internet.
This leads to variety of products and generates demand for the products internationally.
In order to enter into an international market there are several ways in which a business can be
conducted globally by franchising, direct exporting, partnering up, licensing and joint
ventures(Ibeh, Crick and Etemad, 2019).
 Franchise: It refers to a business opportunity which allows a franchisee to start a
business with someone else's name by their ideas, expertise and processes. It plays a
major role in entering in a global market as it provides chances to an entrepreneur to start
its business globally with the name by the help of a person across the nation. It allows
setup a store in the global market which helps a business in local guidance with local
demand determination of the product.
 Export: This is a process in which products and services are being exported directly by
the business without involvement of any partner in the global market, it only involves
distributors and agents across the nation which are the branch between the stores. It is a
much easier way as it does not involve any partner in the foreign market which makes
convenient for an organisation to operate with its suitable policies and procedures. It is
very similar to selling products in domestic market. For direct exporting the things which
should be considered are export policy of the country and demand of the product in the
market(Gomes, Sousa and Vendrell-Herrero, 2017).
 Joint venture: In international market joint venture refers to the partnering up of two
brands from different nations. Profits and losses of investments are being pre discussed. It
is the way by which an entrepreneur can get into global market with the help of existing
brand of the other nation. It is a convenient way as it involves the involvement of a local
3

brand which determines the demand for the product in global market that helps to take a
stand for the product in the international market.
 Partnering up: It refers to partner in a foreign country to help with international
marketing and can partner in the business, it can be done with someone who is already
invested in the similar kind of business. It is an easier way for entering into international
market as it helps in determining the local factors affecting the demand for the products.
A good partner can help the business to grip in the new market more easily as it knows
everything about the market(Demangeot, Broderick and Craig, 2015).
 Wholly owned subsidiary: It is a process which can be used for market entry that
includes acquisition of a whole organization in order to operate a business with that
organization name in the new market in order to target local consumers.
 Contract Manufacturing: This is a market entry strategy in which an organization
enters into a new market via a cooperation on a contractual basis between a domestic
company and an independent contract manufacturer in the country where to enter,
without engagement of capital.
 Licensing: It is a method of market entry where a company grants permission to a
company in another country to use its intellectual property for a defined period of time.
M1
In order to expand Dorothy Perkins and grow it in the market, international marketing is a
great opportunity. It helps a business to expand by exporting and Importing the products
globally. It depends on the demand of the product in the global market, if the product is being
demanded then there is an opportunity for the business. Whereas global marketing have some
challenges like the physical distance, different trade policies, tariffs and export fees, human
resources and unfamiliar culture. These factors play a major role in success of a global business.
D1
Dorothy Perkins can use promotional strategy in order to survive and develop in
different markets. Advertising through messages in the country focused on religious practices,
climate and cultural attitude of the people. Promotion is to done in such a manner that it covers
4

the major population that attracts the highest number of consumer towards Dorothy Perkins
products(Javalgi and La Toya, 2018).
LO 2
P3 Criteria for selection while considering which international market to enter
International market selection process is based on a thorough analysis of different
markets in reference to certain well defined criteria by giving the company resources and
objectives. Before the selection of a international market, it is to be evaluated properly for
prevention of any failure and loss of investments. International market selection process consist
of five steps which includes country identification, preliminary screening, in-depth screening,
final selection and direct experience. These steps helps in identifying several aspects that
includes market size and growth, risk, openness of government regulations, competitive
environment, cultural distance and local infrastructure.
Market Size and Growth
Country identification is the first step in selection of international market which plays a
vital role in selecting the appropriate market, by determining market size and growth. Dorothy
Perkins can undertake the overview of the country of its target market. Company needs to
identify the similar countries sharing similar target market with same language, culture and
political situations. It will help the company in identifying the barriers and making strategies as
per the global market to attract a new customer base(Gillespie, 2015).
Risk
Preliminary screening is the second step for identifying the international market which
involves several aspects that helps in determining risks. It weights, score and rank the nations
based on macro economics factors like currency stability, level of domestic consumption and
exchange rates. Dorothy Perkins needs to go through preliminary screening which helps it by
determining the market entry costs and expenses incurred in international market entry.
Local Infrastructure
Depth screening is the third step which includes a detailed information about the target
market for determining the factors affecting the business of Dorothy Perkins. It includes local
research in relation to identify local infrastructure that includes marketing mix like the price
5

which can be charged in the target market, channel of distribution, area of promotions and place
for conducting the business. This informations help a business in forming the basis of
positioning, segmentation and targeting(Ju, Jin and Zhou, 2018). The value of the target market
and tariffs or quotas in operation with similar opportunities and threats to new entrants are to be
taken into consideration.
Competitive environment
Final selection is the fourth step after country identification, preliminary screening and
depth screening. Short listing of countries is to be done. Dorothy Perkins can reflect upon
strategic goals and can look for a match in the nations. Company can have a look on the other
competitors in the market who have set up their business in this period. A final scoring, ranking
and weighting is to be undertaken based upon more focused criteria.
Cultural Distance
Last step in the process of selection is direct experience. The manager of Dorothy Perkins
can visit the target nation to discover the market environment by determining the cultural
distance which is necessary in order to cover the target market. A personal experience is far
better than books researches and studies. It shows the actual impact of International marketing in
the foreign market. A manager can be flexible and experimental in the target nations markets.
Manager should not be judgemental, as it is for determining the best alternative for expanding
the business in international market(Boso, Debrah and Amankwah-Amoah, 2018).
P4 Different market entry strategies with their advantages and disadvantages
In order to enter into a global market, there are several strategies which can be used by
Dorothy Perkins. Global market entry should be planned to prevent the losses of the investment.
Demand of the product in the international market should be determines so that a business can
survive, without any demand for the product, it is not possible for the company to survive. There
are several market entry strategies that includes joint venture, direct exporting and franchising.
Joint venture is process where two brands come together for performing a business at
both the places. It is a good alternative for Dorothy Perkins as it provides the company with the
opportunity to gain a new capacity and expertise, as well as it enables the organisation to enter
new geographic markets and gain access to new technology. It is good for international
6

marketing as it have involvement of a local businessman which help to identify the market much
in a much easier way. Whereas it has some negative effects as well. It is a time consuming
process and take takes too many efforts to find a good venture. The partners do not provide
enough leadership and support in the very early stages of the business. Success of a joint venture
is totally depended on the thorough researches and analysis of the objectives(Perera and Hewege,
2016).
Direct Exporting for international market includes direct export of products through
suppliers and agents in the global market. There are several advantages for Dorothy Perkins
direct marketing which includes the customers are known, percentage of profits is good because
of no involvement of typical channel of distribution resulting in elimination of intermediaries.
Whereas there are some disadvantages of direct exporting which includes different trade policy
in different markets, customers cannot approach as quickly a local venture could approach(Baker
and Saren, 2016).
Franchising refers to a business opportunity which allows a franchisee to start a business
with someone else's name by their ideas, expertise and processes. Advantages of franchising
includes existing establishment of aq market share, reduced risk of business failure because of
working with other successful franchises and it helps in competing with big businesses because
of a large franchisee. Disadvantages of franchising is higher costs, includes restrictions, bad
sharing of profits and difficulty in selling franchise.
Licensing is a method of market entry that includes several advantages that are quick and
easy entry into foreign markets, allowing a company to jump border and tariff barriers, lower
capital requirements and potential for large return on investment. Disadvantages of the same
consist of loss of control over invention and risk of poor strategy or execution damaging the
product success.
Contract manufacturing includes several advantages which can help the company in
entering into new market includes cost advantages over an organization's internal production
facilities that can be achieved with the help of skilled labour, bulk purchasing and reducing
number of errors. Disadvantages to the same consist of time and cost consumption if a buyer
defaults on the contract and a seller can immediately foreclose on the property if the buyer
defaults.
7

Wholly owned Subsidiary have many advantages as it offers limited liability, separate
management, identity and branding, tax treatment and saleability which can help an organization
in entering into new market. Whereas its disadvantages includes possibility of multiple taxation,
lack of business focus and conflicting between subsidiaries and parent company.
M2
There are several strategies to enter into global market such as joint venture, direct
exporting, franchising, partnering up, etc. Dorothy Perkins should consider the points country
identification, preliminary screening and final selection before entering into a global market. It
can move forward with joint venture, as it have the involvement of a local brand which can help
the company to survive and grow in the global market. As the demand of the products at the
global market is being recognised the Dorothy Perkins can expand its business with the help of
joint venturing because it has local support which have a local customer base which will help the
business in selling its products.
LO 3
P5 Give an overview of how global market is differed from local market.
Global and local market are the differed from each other in many terms these can be
discussed with the help of the argument as local verses global market. Dorothy Perkins retailer
sales its cloths in global market(Kaufmann, Czinkota and Zakrzewski, 2015).
Local market deals with the local area in the market which is within the domestic
boundaries of the country. Whereas, global market increases its boundary for the sales on the
international terms. Dorothy Perkins sales its branded clothes for women on international border.
The area for local market is limited and for global market the are is larger it deals on large
geographical area. As comparing to the local market the global market has more government
interference than the local market. The operating activities of business in local market is in single
country and in global market the company deals with more than on country for its business
operations. Technology in the local market is used limited as compared to global market the
resources used in technology are more the technology changes are rapidly and faster.
The risk factor in domestic market is at lower level as compared to the risk taken in
international market is high. With changes in many factor international market deals with the
varieties of the customer which present their unique demand in the market and local market only
8

deals with the local customer that demands almost same product(De Mooij, 2018). While
entering in the international boundaries the Dorothy Perkins company had to research more on
seeing the global aspects to run the business operation by understanding the scope and analysing
the marketing conditions in the international market. In domestic market the company need not
to work hard on the research analysis on market conditions as the knowledge for operating the
business activity could be at lower level as compared to international market. The product that
are offered to the customers on the local market are not quality product verses to global market
product that are offered to the customers for high quality. Dorothy Perkins provides the quality
product to the customer which gives the satisfaction to the customers.
P6 explain how marketing mix on global context is differed from local marketing mix.
PRICING POLICY: In the context of the global market the pricing policies drives many
challenges as compared to the local market. Some pricing policy are export price refer to the
taxes that are paid for shipping, foreign retail price, insurance, tariffs, etc. are these charges are
higher than compared to the local market. Other instance of price policy is inflation rate, Dorothy
Perkins faces high trouble while inflation because it is not controllable and can be huge obstacle
for the company. There is less trouble in currency movement in the local market while global
market has to exchange the currency to make it in same denomination for the further sale of the
product(Budeva and Mullen, 2016).
PROMOTIONAL POLICY: On global context the promotional policy for the Dorothy
Perkins company plays the important part to retail its cloth in global market. The company faces
problem of the culture of the country. As the women prefers to wear what their culture makes
them allow wear with comfort to use the product. In local market the homogeneous group of the
product are offered which does not required high advertisement or promotional strategy. With
the help of promotional strategies the company can able to achieve high economies of scale
which will help to minimise the cost and maintain their brand reputation in the international
market. In the context of the local market the company will be able to produce on the demand of
the customers. In international market the company will have to meet the demands of the
customers by producing standardise product to customers which will increases the demand in the
international market(Spais and Kaufmann, 2016).
DISTRIBUTIONAL POLICY: Domestic market deals with small channel of distribution
as compared to the international market. The company retails its product at large scale, and the
9

direct marketing is done to get customer. In global market the company deals by making the
middlemen a home country or the company can make the shortest channel of distribution in the
foreign country by hiring expertise.
PRODUCT POLICY: In product policy the local market need not the varieties and
unique qualities in the product as compared to the international market. The product required by
foreign customer hopes for higher quality and has brand reputation in the domestic market. The
standard and product varieties pays a key role in the international market.
M 3 Evaluate the circumstances that company should adopt in local or international market.
By evaluating the in the context of domestic and international market the company
Dorothy Perkins can operate its business if the company has higher economies of scale then the
company can take its business on international borders. If company faces higher risks in the local
market than the company can go for the local market of the product. The company requires
higher capital for the international trade which is possible when the company is able to arrange
funds for the trade in global market(Kotler and et.al., 2018).
M 4 Suitable marketing mixes that company can adopt in global market.
According to the marketing mixes that required for the Dorothy Perkins company is to
make better pricing policy by providing discounts to its customers on the festive seasons or the
company can find other ways to minimise the cost of export for product. In promotional strategy
the company can use various other advertisement tools like hoardings, banners, advertisement
through TVs, radios, etc. more advertisement will increase sales of more product. The cultural
effect can be minimise by providing the product that matches to customer preference. Product on
international border will only be successful when the company will be able to provide the quality
and the standard product which will increase the brand image of Dorothy Perkins in global
market. By keeping small distribution channel company can reduce the middlemen and be cost
effective in the product distribution(Gomes, Sousa and Vendrell-Herrero, 2017).
D 2 Critical examine of the marketing mix.
With the analysis in marketing mix the company can reduce its threats in many ways and
grow its business internationally with more confidence. The product, place, price and
promotional strategies in international market helps to increase the scope of the company. The
competition on the international level makes company to compete with more competitive spirit.
10