B95345 - Sustainable Watch Co: Global Value Chain Marketing Report

This report examines the international marketing management of The Sustainable Watch Company, a UK-based manufacturer of eco-friendly watches. It explores the company's background, strategic objectives, and international competitiveness. The report analyzes potential international markets, specifically focusing on entry into the Indian market, and applies the STP (Segmentation, Targeting, Positioning) model. It evaluates various market entry modes, including licensing, franchising, and joint ventures, and assesses the firm's international marketing strategies, considering the standardization versus adaptation of the 4Ps and 7Ps marketing mix elements. Recommendations are provided to enhance the company's success in international markets. The report aims to provide a comprehensive understanding of international marketing principles and their application in a real-world business context, highlighting the challenges and opportunities associated with global expansion and sustainable business practices.

B95345

Managing sustainable
global value chains

Contents
Executive Summary.........................................................................................................................4
INTRODUCTION...........................................................................................................................5
TASK...............................................................................................................................................5
A brief introduction to the firm, its background, origin, strategic objectives.............................5
A brief introduction to the extent of the firm’s local/global operations and its international
competitiveness............................................................................................................................6
Deciding which international market/s to enter...........................................................................7
STP strategies in market..............................................................................................................7
An evaluation of the firm’s market entry modes into the new market........................................8
An evaluation of the firm’s international marketing strategies in the new market
(standardisation vs adaptation of the 4Ps or 7Ps)........................................................................9
Recommendations......................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

Executive Summary
This report covers different aspects of international marketing management that help an
organisation in gaining competitive edge over competitors within the market place. Some of
these aspects include local or international operations of a company along with its global
competitiveness. Within this report, there will also be use of theoretical models that are
concerned with the marketing approach such as STP for market selection and many more.
Moreover, there will be a description of different modes of market entry in order to expand
business and thereby enhancing its productivity and efficiency. In context to international
marketing management, marketing mix also plays a significant role in deciding marketing
strategies which facilitate an organisation in achieving its objectives in an effective manner.

INTRODUCTION
International marketing management is concerned with the application of marketing
principles in order to satisfy the different wants as well as needs of varied people residing
throughout the world. Within this report, The Sustainable Watch Company is taken into
consideration for demonstrating different aspects of this report. It is a UK-based organisation that
is engaged in creating handmade, unique, yet affordable watches for both women as well as men
(Dzwigol, Dzwigol-Barosz and Kwilinski, 2020). This report includes brief introduction of the
company as well as its strategic objectives. There will be a discussion on the local or global
operations of the firm along with its international competitiveness. Additionally, this report also
covers the description of international market to enter with the help of STP model and varied
entry modes. Furthermore, there will be an evaluation of international marketing strategies of
firm within new market in relation to standardisation vs adaptation of marketing mix elements.
At last, recommendations will also be given to company regarding successfully conducting
business operations in international markets for gaining competitive advantage.
TASK
Management of international marketing refers to the performance of business operations that
are designed for planning, pricing, promoting and directing the flow of business products and
services to market share over one country for a profit.
A brief introduction to the firm, its background, origin, strategic objectives
Within this report, The Sustainable Watch Company is taken into account that will assist in
representing varied prospects in context to international marketing management. The respective
company is located in London, United Kingdom and is involved in making hand made watches
from the recycled natural wood that contributes to the environment. The company is maximising
the use of sustainable materials, using eco-friendly packaging and also comprises of carbon
offset shipping and along with it, the company is also supporting reforestation (Gereffi, 2018).
The warmness, natural colours of the woods in the watches of the company becomes a
complementary attribute for a wide variety of styles and each watch has a unique and new wood
grain pattern. These features help the company in gaining competitive advantage over the
competitors in the market place. The strategic objectives of the respective organisation is to
become a simple, sustainable as well as stylish brand of the watches as it is designed to be kinder

to environment. Another strategic objective of the company is to support the reforestation
through its partnership with One Tree Planted, planting one tree with every order. One Tree
Planted is a charity of The Sustainable Watch Company which is working in a forest in order to
re-plant the tress for a reforestation.
A brief introduction to the extent of the firm’s local/global operations and its international
competitiveness
The Sustainable Watch Company is a product-based organisation that is offering its
products including unique and hand made watches to the market share throughout the world
(Gereffi, 2019). The company is globally conducting its business operations and provides the
watches at affordable price to its potential customers. Sending parcels to the target market across
the globe has an effect on environment and therefore, the respective company care about the
planet and maintain green environment. In context to international competitiveness, The
Sustainable Watch Company is involved in creating hand made watches that are made from
recycled natural woods that are repurposed from superior quality of the furniture. The company
has a belief that the watches need not to be shiny as well as expensive to be beautiful but it
should be eco-friendly. Hence, The Sustainable Watch Company was born from a desire for
contributing to help in saving the planet as well as making eco-friendly lifestyle as accessible as
possible. This helps the company in gaining competitive advantage over the rivalries in the
market place. Another international competitiveness of the respective organisation which
provides assistance to it in chasing competitive benefits is that the company is providing the
watches that are hand made from the natural woods and the production department of the
organisation is giving each piece a unique grain pattern. The Sustainable Watch Company is
designing the watches with everyday use in mind and these watches are lightweight with a
smooth finish. The simple as well as elegant designs can be dressed up or down and along with
it, the natural colours as well as the patterns of the wood become a complementary characteristic
for a broad variety of styles that gives a competitive edge to the organisation (Paes and et.al.,
2019). The company cares deeply about the planet and making a business which gives back to
the nature. Trees help in cleaning the air and water, create habitats for the biodiversity, contribute
to the wellbeing and health along with generating employment for the social impact. It is a major
feature of the products of the company that gives it a competitive edge within the market place.

Deciding which international market/s to enter
From above discussion, it can be decided that The Sustainable Watch Company can enter
into the international markets of India because it can be an organisation prioritising the
sustainable development of India within its growth strategies stand to benefit in the coming time.
The another reason for choosing India as an international market for conducting the business
operations of The Sustainability Watch Company is that there are competitors of such company
which is creating watches that are made up of natural woods and other unique features (Ponte,
2019). It will provide assistance to the company in capturing a large number of market share
within the international markets of India. By offering such watch products to the customer-base
which are having attractive and unique attributes within them, the organisation will gain a
competitive advantage in the market place of India. The people of India are also having the
environmental concerns with them and will also get easily attracted towards this respective
company in an effective as well as efficient manner. In such way, The Sustainable Watch
Company can enhance the target market towards the organisation through providing eco-friendly
watches to the people of India. In order to take entry into the international markets of India, the
company has to develop effective business and marketing strategies for the purpose of selling
environmentally friendly watches to the potential customers within the market place. This will
assist the company in enlarging the base of its customers and will also enhance the productivity,
efficiency as well as profitability of the organisation.
STP strategies in market
The marketing strategy is overall plan of business ideas that helps in reaching its customers
(Ponte, 2019). There are various different factors that are included in marketing strategies such
as choice of customers, customer’s data, vision for future, business proposition and all. These are
made with the aim of achieving business goals. STP is process that consists of segmentation,
targeting and positioning of an organisation for analysing and identifying potential customers. It
is used by sustainable watch company and its use enables it in running business operations in
efficient and effective manner. Factors related to STP model that Sustainable watch company
uses, are as follows:
Segmentation: Segmentation involves organisation to divide its whole market into smaller parts
on the basis of similar needs and requirements of its customers. Sustainable watch company
segments its market and customers on the basis of certain psychological factors such as

customer’s lifestyle, personality as well as social characteristics. Demographic segmentation is
also used by Sustainable watch company to divide the customers into group. This demographic
and geographical segmentation is done in UK. Segmentation of market will be done according to
the demands, needs and wants of the customers in the market.
Targeting: Targeting can be defined as the process of targeting potential and profitable market
segment of customers (Roheim and et.al., 2018). Sustainable watch company targets customers
who are ready to invest and are interested in saving the ecosystem and are also ready to pay its
pricing. The target audience is all people of all ages in UK, who are wanting sustainable watches.
UK market will be its targeted market for growth and development. Sustainable watch company
targets its customers who are ready to buy eco-friendly products and are ready top serve their
duties and responsibilities in saving the mother planet.
Positioning: Positioning is last step in which organisation maintains their valuable and strong
image in the mind of customers by increasing awareness. Sustainable watch company conducts
various marketing campaigns like road shows, television advertisements and many other
activities that help in analysing customer’s needs, requirements and other aspects. Sustainable
watch company attracts attention by letting people know about sustainable policies that are
adopted by the firm in the production and making and other benefits that are served by it in
saving ecosystem and the planet. Positioning is done on the basis of spending qualities and
behaviour by sustainable watch company.
An evaluation of the firm’s market entry modes into the new market
In order to expand the business of The Sustainable Watch Company within the
International Markets of India, the respective organisation can use a wide variety of entry modes
for taking entrance to these markets (Song and Zhou, 2020). Different types of modes of entry
are explained below in context to The Sustainable Watch Company along with their advantages
and disadvantages:
Licensing and Franchising: The organisations that want to establish a retail presence within the
international market with less risks or threats, then this entry mode of licensing and franchising
will be effective as well as beneficial for it. This strategy of entry mode will allow another
company in assuming the threats or risks on behalf of the respective organisation. Through
getting licensing agreement and franchising, business of International market will pay some
royalty charges or commissions for using its brand name, manufacturing process, trademarks and

other key intellectual properties. The licensee or franchisee presumes all the threats or risks and
suffers all the losses, however, it also shares a proportion of its revenues and profits to the
licensor. The advantage of this entry mode is that it will help The Sustainable Watch Company
in lowering its entry cost into international markets of India. This will also assist the organisation
through offering indirect source of income (Strange and Humphrey, 2019). However, this entry
mode has also disadvantage that it can leverage the acquired knowledge and pose just like future
competition for respective business.
Joint Venture: As per this kind of entry mode, the businesses do not mind in sharing their
brand, knowledge as well as expertise. The Sustainable Watch Company can form the joint
venture with local business of India in which both the parties of joint venture will share both
threats and profits that are associated with business. They both will share costs, profits,
investments and losses at a defined proportion. The major advantage of this entry mode is that
this strategy will facilitate both parties in leveraging their respective experts for business
expansion within selected market. But there is also a drawback of this entry mode that joint
venture can face chances of cultural clashes within business because both parties will have
different cultures.
Strategic Acquisitions: Such entry mode implies that company acquires a controlling interest
within business which is already existed in international markets. Acquired company can be
directly or indirectly engaged in offering same watch products within overseas market (Vicol and
et.al., 2018). Main organisation can retain existing management of newly acquired company for
getting benefits from its expertise, knowledge and experience. Main advantage of such strategy
is that it is considered as one of the most entry mode into international markets on large scale.
Limitation of this strategy is that it includes some problems with seamless integration of systems
and technological issues.
An evaluation of the firm’s international marketing strategies in the new market (standardisation
vs adaptation of the 4Ps or 7Ps)
International marketing mix is efficient marketing tool or strategy that enables a business in
attaining its predetermined goals and objectives in specific time with greater profits with its
operation in international or global market. These marketing mix strategies are adopted by an
organisation or business to operate their functioning effectively and efficiently in the market.
These effective and efficient decisions of organisations here, sustainable watch company will

lead to the growth and development of it in the UK market. All aspects of international
marketing mix are price, place, promotion and product. International marketing mix of
sustainable watch company is described as follows:
 Product: product is the main element that is produced and provided in market for its use.
It is element which is offered to its customers for availing and use. Sustainable watch
company provides its customers with highly qualified and sustained watch and watch
products (Wang, Zhang and Zhang, 2020). There are latest technologies that will also be
used and implemented for more creation of quality and sustained handmade watches.
Even it makes watches that are eco-friendly as they care for ecosystem and planet.
 Price: It is value of products or services in terms of money that is decided by an
enterprise for its product. Sustainable watch company has set up a good and reasonable
price for its products. Along with that sustainable watch company has opted great
discounts for its regular customers. Sustainable watch company uses pricing strategy and
targets higher and middle class customers. This reasonable pricing of these watches by
sustainable watch company will lead to the increased growth of sales in the market.
 Place: This is another important factor that includes location from which customers can
will purchase particular products and services of a company. It can be a high street,
retailing stores, e-commerce, mail order, shopping malls and many others. Sustainable
watch company provides its sustainable and eco-friendly watches and its related products
in UK market through large number of outlets. It has number of retail stores, online stores
and will go for more stores. There will be availability of sustained and eco-friendly
watches in UK market.
 Promotion: Promotions helps in persuading customers to purchase more organisational
products and services. This factor includes activities that are related to advertising, sales,
promotion, personal selling and other related activities to an organisation (Wellesley,
Preston and Lehne, 2019). Sustainable watch company uses various promotional
activities, advertisement, social media marketing and other media marketing too, direct
marketing and other modes of marketing.
Recommendations
From above discussion, it is recommended to the manager of The Sustainable Watch
Company to use the entry mode of Joint Venture at time of expanding its business operations in

international markets of India. This process affords both parties in having access to resources of
organisation to another company without investing a large amount of capital. Such process of
entry mode will also facilitate The Sustainable Watch Company in maintaining its own
recognition as well as can easily return to normal business operations once the process of
formation of joint venture gets completed.
CONCLUSION
From the explanation of the above report, it can be concluded that the concept of
international marketing management plays a significant role in the process of conducting
business operations that are concerned with marketing in an effective as well as efficient way.
Within this report, there has been analysis of the existing marketing strategies of the given
organisation. Along with this, there has been also a discussion of the STP model as well as
international marketing mix strategies that facilitate the company in gaining competitive edge.
Moreover, different modes of entry for taking entrance into the international markets have also
been described within the project that help the company in its business expansion effectively.
Furthermore, certain recommendations have also been given to the respective organisation within
this report so that it can easily operate its marketing activities within the international markets of
the world.

REFERENCES
Books and Journals
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Roheim and et.al., 2018. Evolution and future of the sustainable seafood market. Nature
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Wellesley, L., Preston, F. and Lehne, J., 2019. An Inclusive Circular Economy.