International Marketing: Versace's Entry Strategy and Global Approach

This report provides a comprehensive analysis of international marketing concepts and strategies, focusing on Versace's potential expansion into the Brazilian market. It examines the scope and key concepts of international marketing, the rationale for entering international markets, and various market entry routes. The report evaluates criteria for selecting international markets, analyzes different market entry strategies, and outlines key considerations in the global versus local debate. Furthermore, it explores how product, price, and distribution approaches differ across international contexts, various international marketing approaches a client organization can adopt, and compares home and international orientation while assessing competitors. The report concludes with recommendations and a critical evaluation of the discussed strategies.

International
Marketing

Table of Contents
Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK-1............................................................................................................................................3
P1 Analysis of the scope and key concepts of international marketing......................................3
P2 Rationale of working in an international market and the various routes which can be
considered for going to international markets.............................................................................5
TASK-2............................................................................................................................................6
P3 Evaluate the criteria which has to be considered for the selection of international market...6
Market evaluation criteria ..........................................................................................................7
P4 Different market entry strategies including the advantages and disadvantages of each........8
Recommendations ......................................................................................................................9
Critical evaluation.......................................................................................................................9
TASK 3............................................................................................................................................9
P5 An outline of the key review in the global versus local debate.............................................9
P6 Product, price and distribution approach differs in a variety of international contexts.......10
P7 Various international marketing approaches a client organisation can adopt......................13
P8 Compare home and international orientation and ways to assess competitors, outlining the
implications of each approach...................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
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INTRODUCTION
International marketing is also termed as global marketing in which the marketing of
products and services takes place across the world. In simpler words, it can be explained that
International marketing is that type of marketing which is taking place across the borders of a
home country(Farrell, 2020). There are many reasons why the company makes the marketing of
products and services in different market as it opens the gate for making expansion of business
not just in the home country but also in other countries. With which marketing of the products
across the country is considered to be the most important thing because with that consumers
would get to know about the products which exist in the market and how it differentiates from
the other business. Versace is an Italian luxury brand which was founded in the year 1978 and is
having its headquarters in Milan, Italy who is now making its expansion of business in Brazil.
This report will cover that how marketing makes the contribution to business strategies, entry to
a selection of international markets and the key factors, how elements of marketing plan can be
adapted across international markets and how to evaluate international marketing efforts.
TASK-1
P1 Analysis of the scope and key concepts of international marketing
International marketing is defined as an activity which covers to sale the products and services in
the another market considering the rules and regulations which is framed by the government of a
particular country. The scope of international marketing have been explained below-
Scope of International marketing-
 Exporting- Exporting is the method by which companies can make the selling of the
products and services in another country. This is the most common type of method
which can be used by the companies to enter the other country market (Katsikeas,
2018). The cost for doing the exporting of products can be made from all the
marketing expenses. Licensing- It is the another method which can be used by companies in order to
establish their business in another country. This means that taking the license of
already existing company from the market so that they can start the business
without getting the problem of the return. This method does not require any
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investment because they are taking all the things from another established company
in which they have to make the payment of taking the license. Joint venture- If any of the company wants to make the establishment of their
business in another country then they can do it by engaging with other company. It
is the joint nature of two companies which can be established on the basis of
similarity which they are having and the policies which they will be sharing with one
another.
Key concepts of International marketing-
Companies adopt various strategies to recruit skilful and talented people in their
workplace. Global orientation of companies is described as the intensity of global
connectedness of a company in relation of trade, investment and influence process across
boarders (Adams and Kivlighan 2019). There are four types of approaches that companies
implement in order to recruit workforce on international level. These strategical
approaches are explained below in detail:
Ethnocentric: This recruitment policy explains that companies hire employees from
their parent company in order to fulfil position in the firm that is operating on
international level. They apply this approach by relocating their existing employee to new
place and who has a permanent resident of their host nation. They also execute this scheme
by recruiting that person who is from their parent nation and wants to live in the country
that company is trying to expand its business.
Poly-centric: This strategy is implemented by companies by appointing local people
living in the host country. They fill their vacant position by giving advertisements about the
job description or contact a local recruitment agency. This strategies assist companies in
determining and identifying local talent which could help them in understanding market.
Regio-centric: This approach states that companies appoint or transfer people
within the similar region in order to fill vacant spot in the organisation. This approach is
less costly than the transferring of employees from parent county as companies do not have
to take candidate to other country.
Geocentric: This strategy explains that companies hire employees on the basis of
their talent and not according to fro where they have come from. This could include hiring
employees remotely or relocating their employees (Lin, Cao and Cottam, 2020). This
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approach helps company in getting fresh and experienced candidates who can bring
innovative as well as creative techniques of doing business.
In context to the Versace, the company could implement geocentric and poly-centric
approaches in order to recruit employees while operating in international market. These
strategies will help the company in appointing talented and skilful employees. The
geocentric approach will assist company in recruiting experienced employees who would
bring more systematic planning in the company. These employees will aids company in
enhancing its profitability and growth in the market. The Poly-centric strategy will help
the company in understanding local demands and needs. These employees will possess
information and knowledge about all the requirement of company's target customers
which would result into better service for consumers. This approach will help company in
expanding its customer base and provide it recognition in the market among people.
Opportunities and challenges of international marketing
Some of the challenges that Versace could face are:
 Culture barrier: The country could face challenge of understanding diverse culture
of country. Global customers represents diverse culture and social diversification
which includes demands, habits, preferences, buying patterns, language and many
more.
 Political instability: For operating business successfully it is very important for
companies to examine that political environment of the nation (Oyewole, 2018). As
government instability impacts directly or indirectly on business operations.
Various opportunities that Versace could experience are as follows:
 Enhance customer base: The company could increase its customer base through
expanding business across boarders.
 Access to new market: The respective company could also find an opportunity to
explore new market and understand their needs or demands. This will assist the
company in developing new products or services.
P2 Rationale of working in an international market and the various routes which can be
considered for going to international markets
There are various reasons because of which companies would like to make the expansion of their
business in different country and those have been explained in context with Versace-
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 Increased revenue- When the companies will be operating their business in another
country this mean the revenue potential will also be increased. It is because in the earlier
time the company was selling its products in a single country and now they are selling in
other parts also(Ewah and Osang, 2018). Versace profits were increased because they
have made the decision to sell and make the existence of a company in different
countries.
 Stay ahead of competition- It has been seen that when competition in the market is
increasing then in that terms it is advised to make the expansion of their business in
another country. This was beneficial to Versace because with that they were able to
explore new markets and were getting new customer base which will be useful in the
success of a company.
 Greater access to new talent- When Versace have made the expansion of their company
in new markets then they were benefited with it with the new talent which might not be
present to them in their own country. The specialised talent which company might be
finding might not be present in their home country but the establishing business in
another might provides them the same.
TASK-2
P3 Evaluate the criteria which has to be considered for the selection of international market
Internationalise of companies is very important as it helps them in enhancing their
productivity and customer base. This method provide organisations an opportunities to
explore new market and understand their needs(Baack, Czarnecka and Baack, 2018). In
context to Versace, the company wants to expand its business operations in market of
Brazil. The reasons about why the respective company is considering this market are
explained below with detail:
 Largest customer base: Brazil is considered as great international marketplace for
the expansion of business as it will provide the respective company a wide customer
base. The size and diversity of customer market has developed various opportunities
for the company to expand its business and grab their attention. It has also been
estimated that Brazil is considered as fifth largest global population country which
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will also be helpful for the respective organisation to enhance its potential client
base (Key Advantages of Doing Business in Brazil, 2020).
 International trade provides assess to various countries: Launching a commercial
presence in Brazil will provide selected company an access to nations in the region
and would allow it to take advantage of strategic trade agreements. The country is a
part of MERCOSUR which was founded in the year 1991 that is also called as
Southern Common Market. BRICS is also an another trade group which includes
nations such as Brazil, Russia, India, China and South Africa (Key Advantages of
Doing Business in Brazil, 2020). Therefore, MERCOSUR and BRICS both provide
great opportunity for the selected company to trade its products or services along
with an ease of access to markets of members.
 Open for foreign investment: The country allows 100% foreign ownership to
companies and they are able to sponsor visas for international employees.
Furthermore, domestic organisations could be incorporated in the country without
the requirement to personally visit country, the procedure could be finished through
a Power of Attorney (Key Advantages of Doing Business in Brazil, 2020). The
government of the country has provided support to foreign companies which will
help the respective company in establishing its business effectively and easily.
 Great infrastructure: Brazil has outstanding infrastructure and transport services
along with developed roads. The country has also one of the largest highway system
in the world and consist of several diverse railway systems for land transport. The
country also has around 175 maritime and river ports out of which 32 are public
(Key Advantages of Doing Business in Brazil, 2020). The extensive networking will
assist the respective organisation in trading its products across various countries on
global level.
Market evaluation criteria
Market evaluation is defined as the process of research about the marketplace that
companies are expecting to expand their business operations. In context to Versace, this
market evaluation will assist it in examining whether it would be able to perform well and
get success in its new marketplace. The market evaluation criteria that the respective
company needs to examine are provided below:
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 Urgency: The selected organisation is required to analyse about why people of the
country wants its products or services so that it could provide them according to
their demands (Lu, Scholz and Nguyen, 2018).
 Market size: The respective company also need to evaluate size of market so that it
could examine how many people seriously would spend their income on offered
products or services. This evaluation will assist the firm in developing products
according to size of market.
P4 Different market entry strategies including the advantages and disadvantages of each
The advantages and disadvantages of different market strategies have been discussed below-
 Exporting- It cover the way by which companies used to sell their products to different
country. The advantage of exporting is that the company can make the selection of any
of the foreign country according to their own. This can be the best method for making
the evaluation that whether doing business in any of the specific country will be useful to
them. It will also help in providing the protection to the copyrights, patents and other
intangible assets(Martínez-López and et. al., 2018). While the drawbacks are that if
company would be providing the products on an offline mode then this method might
make it very expensive for the business. It is because for the online services this method
can be considered to be the most important and beneficial one.
 Licensing- It is that method in which established business is providing the license to
make the use of their brand name or any of the manufacturing process so that it will be
easy for the new company to establish their new business in a simpler terms. The main
advantage for making the use of this method is that it is considered to be the low cost
entry method which can be used by the business who are not having higher investment.
With this method, the return will be at higher rate as compared to that which they have
invested. However, at some point of time the business which has taken the license might
not be able to exercise the control on it. As with this, they have to make the
consideration of all those policies which has been made by that company.
 Joint venture- It is that method in which the company have to make the merging of their
business with another company which are working on the same industry. The main
advantage of making the entry with such method is that both the companies can use their
expertise in order to achieve growth also any other risk related to political factor will
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also be reduced as it will be shared by both the companies (Oyewole, 2018). But the
disadvantage is that the chances of having conflicts in it are at higher levels which might
diminish the image of a company in the market.
Recommendations
The Versace company in order to enter international market could implement
Licensing entry approach as it will assist it in expanding its business operations in country
more easily. This market entry method will provide the respective company an opportunity
to develop an ongoing stream of passive revenues(Al Badi, 2019). It provides a easier and
smooth entry path for the company along with reducing risk for both parties.
Critical evaluation
It has been evaluated from the above discussion that Versace could implement
various marketing strategies to expand its business operations in Brazil. The chosen
country is an exceptional marketplace which will provide the company opportunities to
enhance its customer base as it has large population. It could also be said that from various
international market entry methods company could adopt licensing as it will provide
opportunity to grab market more easily (Aliyev, Urkmez and Wagner, 2019). In order to
expand business in chosen country, company is required to evaluate its marketplace so that
it could understand need of its products or services in the country.
TASK 3
P5 An outline of the key review in the global versus local debate.
With a global campaign, the end user's locality is less important, it just want to extend as many
individuals as practicable. The local effort is very well directed, so a person may require
choosing a place to point. Certain commodities and services of Versace will do better for in some
marketplaces, and never in others. In many states even countries, local commodities take part
with global brands and international stamps. Local commodity is present in one country and
global label of a commodity meets the necessities and requirements of the global marketplace.
The global brand has the same title and the similar image and stand in many parts of the globe.
Global marketing campaigns are aids in boosting the firm profile and their services, as well as
driving selling to large firms. If Versace think English is not their first speech, they will require a
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convertor to make a duplicate for global listeners. They will also require a SEO expert to expand
that satisfaction to give higher position in the world of search engines.
Local marketing is a very complicated procedure. Even though the content is almost identical,
advertisers successfully run one advertisement in each target language or state. To make sure that
their data confirms closely to the cultural norms of the target market, traders will require utilising
local speakers familiar with both language and behaviour.
P6 Product, price and distribution approach differs in a variety of international contexts.
Companies when expanding their business on global level are require to evaluate
whether they want to standardised or adapt their marketing mix. Standardisation is
defined as the process where companies maintain consistency and uniformity of their
products or services through offering them in various markets (Gao, Ren and Miao, 2018).
This procedure help companies in marketing their goods without making any modifications
in them. Whereas adaptation is described as the procedure of modifying products or
services according to the needs and demands of customers in order to attract them towards
brand.
Marketing mix Standardisation Adaptation
Product  Versace is required to
standardised its
product image so that
it could grab attention
of large customer
base.
 The organisation
needs to standardised
product and make it
cost effective.
Price  As the company
adopts premium
pricing strategy for its
product but in order
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to grab large
customer base it is
required to make
adaptation in pricing
according to market.
Place  The respective
company is required
to make adaptation
according to nature of
market. It has to
understand diverse
culture of chosen
country so that it
could grab their
attention and could
relate with them
easily.
Promotion  The company could
standardised its
promotional
strategies and
implement innovative
ideas to make people
aware about brand. It
could use different
online and offline
media platforms to
promote products.
Process  The respective
organisation is
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