International Marketing Strategies for Matalan's Expansion into Mexico

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INTERNATIONAL MARKETING COPY 2

Executive Summary
International marketing refers to strategic formation of organisational approaches to expand the
size of target markets and increase revenue generation. This report supplies prominent
information about international marketing for globalisation of a domestic organisation.
Furthermore, researcher supplies effective fund management techniques to management of
Matalan for expansion of market size of organisation in Mexico to influence their revenue
generation. It can be highlighted that there are several selection strategies for local companies to
expand their market size in international market. Therefore, management of Matalan may
analysis marketing mix to evaluate effective marketing strategies to attract large number of
customers through relevant supply chain.
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Table of Content
Introduction......................................................................................................................................4
LO1: Demonstration of international business strategies for international business......................4
P1: Key concepts and scope of international marketing..............................................................4
P2: Various route and rational marketing strategies for international market.............................5
M1: Opportunities and challenges of Matalan............................................................................7
LO2: Success factors and evaluation of entry selection..................................................................8
P3: Selection process and key criteria for consideration of international market........................8
P4: Explanation of advantages and disadvantages from marketing strategies...........................11
M2: Recommendation for entry marketing strategies for..........................................................13
D1: Critical evaluation of international marketing strategies and contexts...............................14
LO3: Adaptation of elements of marketing plan for international market....................................14
P5: Presentation of key arguments for global versus local business markets............................14
P6: 4P approaches for variety of international context..............................................................15
M3: Evaluation of circumstances and context global approaches and its implication..............16
M4: Determination and articulation of adaptations for different international markets..........17
D2: Critical evaluation of marketing mix for international markets..........................................17
LO4: Demonstration for organizational international marketing..................................................18
P7: Analysis and explanation of various international marketing approaches for adaptation of
new technology..........................................................................................................................18
P8: International and local ways and orientation for competitors by using key approaches.....19
M5: Recommendation for key approaches for marketing and competitor analysis for
international context...................................................................................................................20
D3: Recommendations for organizational structure for maximum opportunities.....................21
Conclusion.....................................................................................................................................21
References......................................................................................................................................22
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Introduction
International marketing is a relevant business strategy of an organisation to expand market size
to increase revenue generation from business market. The aim of this study is to deliver effective
information about marketing business strategies for a local business organisation for expansion
of their market share. In addition, researchers also analysis different international markets to find
out appropriate global markets for Matalan. Researchers also explain different marketing
strategies based on different international context in different part of world through perfect
analysis of various influences. Moreover, this report analysis different factors and circumstances
of business environment for determination of effective marketing mix to deliver effective
recommendation to management of Matalan. Similarly, this study also discusses different
approaches and concepts of international marketing to make relevant recommendation for
organisational structure and decision making process for management. This report also conducts
SWOT analysis for creation of market opportunities for profit maximisation.
Matalan is one of the popular retail organisations of United Kingdom and they serve excellent
facilities to 12 million people through their 230 stores. Total revenue of Matalan in previous
years can be accounted as £1,100 million.
LO1: Demonstration of international business strategies for international
business
P1: Key concepts and scope of international marketing
International marketing is one of the major principles of international marketing through which
an organisation can enlarge their market revenue and size in broad sector. International
marketing strategies and approaches helps management to satisfy stakeholders’ expectations of
peoples of different nations. There are several rules and regulation in international marketing
from different nations, thus various organisations may not want to enlarge globalisations.
International marketing helps management to increase economic growth rate of organisation
through adaptation relevant marketing strategies for enhancement of business opportunities
(Vellas, 2016: 426).
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There is huge growth in international marketing through prominent business strategies. Since,
94% revenue of different companies of EU is generated from outside which a major opportunity
of international is marketing. In case of Matalan, 97% of revenue is generated from outside of
United Kingdom, thus, management have to enhance their market share for revenue generations.
The growth rate in emerging development countries such as China, Mexico, Malaysia, Indonesia,
and India, increases continuously. Respectively, management can increase their stores in above
emerging countries to serve large number of customers to increase their brand value. Innovation
of different technologies regarding retail industry increase facilities to customers to get their
interest relating online purchasing of different products. International marketing can reduces risk
of business environment by enhancing opportunities for management of organisations.
P2: Various route and rational marketing strategies for international market
There are large numbers of branded retail organisation in United Kingdom, revenue of Matanal
decrease continuously because of high competitions. Management faces tough competition from
their competitors such as Primark, TESCO as they deliver quality products in low cost (Tan &
Sousa, 2015: 102). Nevertheless, there are large scope in different emerging countries in retail
industry, thus management plans to invest in Mexico for globalisation of business environment.
Management have to understand different influences in international marketing to evaluate
following influences
● Experience
Management can apply their domestic market experiences to make a balance business
environment in international market. As well as, they have to analysis experience and
marketing strategies from several retail organisations in Mexico.
● Capability
Globalisation of an organisation is based on capability of an organisation regarding
market emphasising for sustainable development. Thus, management have to raise fund
management strategies for proper resource utilisation to reduce waste for enhancement of
capability.
● Ambition
Ambition may play crucial role in retail industry for internationalisation of business
market (Dereli, 2015: 1365). Thus, management have to take huge responsibility
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regarding different departmental process to grow performance of working process to
deliver excellent service.
Figure 1: Rational marketing strategies
(Source: Given by Researcher)
● Learning and knowledge
Matalan also can deliver training and development program to their employees to
enhance their knowledge regarding different organisational process for
internationalisation. Furthermore, they should collect relevant marketing information
from their competitive organisation to apply effective decision according from learning.
● Entrepreneurial behaviour
Behavioural strategies are a key factor for retail industry to gain exceptional reputation
from their customers. Hence, management of Matalan can introduce policy to their
stakeholders to deliver proper behaviour to their customers.
● Attitude for risk
Similarly, they have to analysis different risk in international market to control that risk
before it can hamper organisational culture.
● Localization advantages
Mexico is an emerging country in economic development in international business sector.
Several companies attracted by economic and industrial growth for revenue generations.
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ExperienceCapabilityAmbitionLearningandknowledgeEntrepreneurialbehaviourAttitudeforriskLocalizationadvantages

Hence, management of Matalan can get excellent business opportunities from business
environment of location.
M1: Opportunities and challenges of Matalan
Strength Weakness
● Standard quality goods for
enhancement of lifestyle of peoples
● Relevant pricing strategies to target
middle class peoples
● Wide range of products to attract large
number of customers
● Management unable to offer offers
and facilities according to their needs
● Excellent offers from their competitors
such as Primark, TESCO
● Lack of investment in manufacturing
and sustainable development
Opportunities Threat
● Rapid growth in international retail
markets
● Investment in research and
development for new products
● Customer trends towards online
purchasing (Cacciolatti & Lee, 2016:
5610).
● In international market, there are large
number of products
● Wide range of products from their
competitors in same price
● Management fail to contribute on
coordinate fund management
Table 1: SWOT analysis of Matalan
(Source: Given by Researcher)
Management of Matalan plan to enter in different international market in different emerging
development countries to enhance their revenue and growth rate from retail industry. They also
try to supplies effective recommendations to their customers by introducing relevant pricing
strategies to attract large number of customers. Therefore, they can implement several business
strategies to keep out their domestics competitors. Matalan mainly collected resources clothes
from Rana Plaza, is a famous organisation of Bangladesh. Respectively, management of
Matalan have to introduce research and development of program to enhance their production
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rate to reduce cost of purchasing of resources. In case of international marketing strategies
management have to collaborate with different domestics organisations to reduce negative
influences of retail industry.
LO2: Success factors and evaluation of entry selection
P3: Selection process and key criteria for consideration of international market
Selection process for international market:
This is most important part to enter in a new international market from domestics business.
Management of Matalan have to follow five several process for their globalisation strategies for
revenue generation.
● First Step: There are several emerging countries in the world such as China, Malaysia,
Mexico, and Indonesia in the world. In order to grow market revenue from retail industry,
this very important to select perfect country in international market. According to Meyer
& Peng (2016: 946), management of Matalan plans to enlarge their retail business in
different countries.
● Second Step: At this stage, marketing management analyses different basic influences of
several countries to evaluate macro environmental factors such as value of currency,
growth rate, customer demand. Based on preliminary screening, mangers shortlisted
countries based on organisational objective.
● Third Step: This is a vital part of selection process for international marketing in
different part of world. Thus, management analysis different micro factors by using
marketing mix to target specific region or community of the country.
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Figure 2: Steps of selection process
(Source: given by Researcher)
● Fourth Step: After short listing several countries, management decided to final short
listing countries among several nations. Similarly, managers can communicate with
different domestic retail organisation of the country to focus on probable marketing
decision (Daniel & Domenico, 2015: 799).
● Fifth Step: In this step, management invest on selected countries to gain relevant
experience from international business. Furthermore, management have to careful about
different business drawback such negative cash flow to ascertain effective business
decision.
Key criteria for consideration of international market:
Since, international market is different from local market, management of Matalan have to
consider different factors for selection of specific international market. Management of Matalan
retail organisation have to develop appropriate selection process for internationalisation of retail
business to achieve organizational goal in competitive markets.
Effect Impact
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Coun try
Iden ti fic
ation
Preli mi nar
y
Screeni ng
In-Depth
Screenin
g
Final
Selectio
n
Direct
Experie
nce

Political ● Tax rate of Mexico is 16%
● Political situation of Mexico is not suitable
Neutral
Economical ● Mexico ranked 5 in renewable energy uses
● Total revenue from goods and service is
$12.34 Billion
● GDP growth rate of Mexico is 5.525 %
● Generation of revenue from retail sector is
$203 billion
Positive
Social ● 17000 Mexican students enrolled in United
States
● Huge opportunity for investment in 22
different sectors
● Every people spend $131 annually
● Population of Mexico is 132,328,035
● Mean age of people of Mexico is 28.3 years
Positive
Technical ● 11% growth rate in technology (Griffith &
Zhao, 2015: 40).
Positive
Environmental ● The General Law, 2012
● Environment & Climate Change Law 2019
● State Biodiversity Act 2002
Positive
Legal ● Foreign Account Tax Compliance Act, 2015
● Corporate Tax Laws 2019
● Employment & Labour Law 2019
● Corporate Governance Laws 2018
● Data Protection Laws 2018
Negative
Table 2: PESTLE analysis of Mexico
(Source: Given by Researcher)
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Based on above discussion about PESTEL analysis, management can gain huge amount of
revenue from retail business from Mexico. Management have to provide different products
according to expectation of customers to increase their interest.
P4: Explanation of advantages and disadvantages from marketing strategies
A local business organisation can enter international markets through several business marketing
strategies and routes. Management of an organisation can uses following marketing strategies for
international marketing in different countries:
Exports:
This is one of the easiest route through which an organisation can enter in international market.
Management of Matalan can collaborate with different trading organisation to sell their goods in
abroad market. As per opinion of Christopher (2016: 589), they can invest on international
domestics based retail market through opening new stores to distribute their products by
appropriate supply chain.
Online application and electronic media:
Utilisation of internet application by using different electronic media such as social network, TV
channels, and online applications can enlarge facilities of different international communities.
Thus, management of Matalan can introduce global awareness program by promoting detail
information of products to their customers.
Franchising and Licensing:
Nowadays, different popular companies expanded their market size by making an agreement
with different local companies (Daniel & Domenico, 2015: 799). Domestic company issues
licence for foreign companies to increase their revenue from market. For example McDonald’s
uses these strategies for expansion of their international business.
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Figure 2: Different international marketing strategies
(Source: given by Researcher)
Joint agreement:
In order to increase international marketing, new comers in retail industry such as Matalan can
make agreement with different local companies by purchasing business share. Moreover,
management can emphasises their total revenue from different emerging countries by providing
excellent services.
Direct Investment:
Therefore, management of Matalan can purchase business license of different countries to
establish their own retail stores to deliver prominent business service to their valuable customers.
Right international market can plays significant role in international business in retail industry.
This internationalisation strategy can increase their number of stakeholders those who plays vital
role in success in challenging business (Oyemomi et al. 2016: 569). Therefore, management have
to introduce advertisement program which may increases expenses of Matalan regarding online
retail business. Similarly, management have to recruit different marketing agents for
enhancement of different marketing department to make a competitive business environment for
various local competitors. Moreover, political situation in Mexico may not produce suitable
business environment in challenging market. Management have to sincere about business market
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