International Marketing, Entrepreneurship, and Innovation Report

This report provides a comprehensive analysis of Marks & Spencer's (M&S) international marketing strategies, focusing on its potential expansion into the Australian market. It begins with an overview of international marketing's importance and includes a detailed PESTEL analysis of Australia, evaluating its political, economic, social, technological, environmental, and legal factors. The report then presents an innovative product idea, the BOXED table, designed for students and office personnel, along with a SWOT analysis and market research. A complete marketing plan for Australia is developed, covering the marketing mix, ethical considerations, and environmental issues. The report also includes an environmental audit of M&S and an evaluation of its strategic position. The report demonstrates an understanding of international marketing principles, market analysis, product innovation, and strategic planning.

International Marketing
Management,
Entrepreneurship and
Innovation

Table of Contents
NTRODUCTION.............................................................................................................................3
TASK 1............................................................................................................................................3
1 Importance of international marketing for business organisations and PESTEL analysis for
targeted foreign market...........................................................................................................3
2 Idea for innovative product and service..............................................................................5
3 Marketing plan for Australia...............................................................................................7
TASK 2............................................................................................................................................8
Covered in PPT.......................................................................................................................8
TASK 3............................................................................................................................................8
1 Environmental audit of M&S and evaluation of strategic position.....................................8
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
International marketing is defined as conduction of marketing activities outside the
domestic boundaries. It is carried out by acknowledging the needs and desires of consumers in
other countries and transforming them into services and products to catering their needs and
achieving objectives of organisation. Entrepreneurship is termed as design, launch and manage a
new business, usually a small one and innovation is concerned with developing or creating a new
product to satisfy changing needs of customers (Charter, 2017). This report is based on Marks &
Spenser which is a UK based private retail organisation, headquartered in Westminster, London.
Company specialises in clothing, home and food products. This research includes importance of
international marketing and PESTEL analysis of country where company wants to expand its
presence. Beside this, a new product is innovate in market by carrying out market research.
International market research techniques are discussed. Along with it targeting market,
segmentation of market, business proposal is prepared.
TASK 1
1 Importance of international marketing for business organisations and PESTEL analysis for
targeted foreign market
When products and services of an organisation are served to customers of different
nations, it is termed as international marketing. International marketing management is termed
as the procedure of formulating strategies and plans for products, promotion, sales and
advertising to target desired segment of customer. These activities and business operations are
carried out beyond national borders of a country. There are several merits due to which a firm
chooses to go international and pursue international marketing. Importance of international
marketing for M&S is mentioned below:
Importance of international marketing for M&S:
 Increased revenue potential: The best way to enhance revenue is to expand market
beyond domestic borders. Performing business operation at international level helps in
increasing sales due to which revenue and profitability increase. M&S can improve their
revenue and market shares by expanding their presence in different regions around globe.
 Enhanced network opportunities: Marketing internationally results in expansion of
business network to learn new production process and discover new talent. In case of

M&S, by presenting itself internationally company can learn new tactics and strategies to
produce products in less costs which will results in profitability.
 Branding: It helps a company in targeting a specific market segment which leads to
enhanced branding of company. International branding promotes reputation of M&S to
sustain a strong presence against rival firms (Czinkota and Ronkainen, 2013).
PESTEL analysis of targeted country:
PESTEL analysis is an efficient tool which helps in analysing political, social,
economical, environmental, technological aspect of a company or country. In respect with this
present report, M&S is targeting Australia as their potential market. According to managers in
M&S, Australia promises high growth and profitability for company in furniture sector. In this
respect a PESTEL analysis is carried out, to analyse different aspects of Australia in appropriate
manner.
 Political factor: Australia follows constitutional monarchy and queen of UK is
considered as head of state. Prime minister is head of government and formulates all the
required policies and regulations of country. Political environment of country is safe and
stable. Government has formulated regulations which are favourable for business
organisations. In case of M&S, it will be beneficial for company to expand their presence
by offering furniture products in Australia. Due to governmental stability, there are least
chances of frequent changes in laws and policies.
 Economical factor: Australia is 13th biggest economy around globe. Growth rate of
economy is around 3%. Company tax rate in Australia is approx 30% but companies
which have turnover less than 25 million dollar can apply for less tax rate. Country
mainly imports machinery, mineral fuels, plastics, pharmaceuticals, furnitures etc. As
growth rate is high, it is a great opportunity for M&S to enter Australia market by
providing furniture products (Arora, 2013).
 Social factor: In terms of wealth, health and education Australia is one of the best
country to live. Due to less population, people lives a peaceful and standardised life. It is
multiracial and multicultural country. People here are hard working and skilled. Income
of people is high and because of that more than 70% of population prefers standardised
and luxurious products to cater their needs. For M&S, it is beneficial to expand presence
here.

 Technological factor: It is one of the best technically advanced nation. People prefer
modern and new products. Companies there invest high in technology to cater public
demand. Individuals prefer to buy innovative and new products. In case of M&S,
company can achieve considerable profitability by offering furniture products in
Australia.
 Environmental factor: Australia posses brilliant natural biodiversity but still faces
environmental challenges. It is driest country and climate change is also a challenges. To
expand there successfully, M&S needs to adopt those tactics by which wastage of water
can be reduced and renewable source of energy can be used while producing products.
 Legal factor: To assure fair trading for customers and business organisations,
government has formulated several rules and laws such as consumer laws, competition
laws and fair trading laws etc. It is important for M&S to consider these laws
appropriately so that company will not have to face legal penalties in future (Wedel and
Kamakura, 2012).
2 Idea for innovative product and service
M&S is a large organisation and specialises in clothing, food products, luxurious home
product and furnitures. In case of Australia, company is planning to extent there presence by
offering furniture products. To gain wide attention from customers, company is planning to
innovate a new furniture product which is BOXED table.
Idea generation:
It is the process of creating and developing idea which are concrete & abstract. It
involves a procedure by which an individual acquire guidance to transform idea into reality.
M&S is panning to innovate BOXED tables for students and office personnels. Speciality of this
product is that it requires minimum space probably equals to the size of a suitcase. It allow an
individual to make stool and work table for study purpose and 2 stool and 1 coffee table for
leisure time.
SWOT analysis:
Strength Weakness
 As BOXED table covers minimum
space, carrying it to anywhere is an
 Low customer loyalty as product is new
in market.

easy tasks.
 Serves two purpose i.e. work desk and
coffee table with 2 stools.
 Due to unfamiliarity with product,
brand reputation is low.
Opportunities Threat
 Company can offer products while
considering office personal other than
students.
 Even after Standardised rates, products
will be accepted by people due to high
living standard.
 Existing rival companies are also
offering new concepts in furniture.
Market research: Basic market research which is important for M&S to carry out before
launching BOXED table is specified below:
 Before introducing product in market, it is important for M&S to Identify its market and
competitors appropriately. This will helps them in understanding the needs, preference
and expectation of people (Paliwoda and Thomas, 2013).
 After analysing market, another important task is to target customers by segmenting
market on the basis of different aspects like demography, geography, Physiography and
behaviour. M&S is targeting students and office personnels on basis of occupational
demography.
 Unique value proposition of BOXED table is its minimum size, light weight and multi-
purpose use such as coffee table or working desk.
 To popularise product M&S needs to formulate an efficient marketing strategies. Here
company is using online and retail distribution channels.
 Before producing BOXED table in bulk, it is vital for M&S to test samples of product in
market to check satisfaction level of customers.
 For promoting BOXED table, company is using social media, newspaper, TV and radio.
Along with this, billboards and bill-buzz will drives interest of customers.

 When product will get mature and profitability due to that will reduce, M&S can opt for
improvements and modification in design to regain lost market (Paliwoda and Thomas,
2013).
3 Marketing plan for Australia
Marketing plan is termed as a business document which outlines market strategy and
tactics of a company. It is developed for specific time period. It involves objectives, plan,
marketing mix and strategies of company.
Executive summary: Marketing plan is variable and changes according to changing
demands of customers. In case of M&S, manager of company has formulated a marketing plan to
specify objective, plan and relevant issues which can effect business etc.
Overview of Company: M&S is a renowned MNC and is a manufacturer of clothing,
food and home products. Company is going to expand its presence in Australia by introducing
innovative BOXED table specifically for students and working people.
Vision: To successfully expand its presence and business operations to earn high
profitability.
Mission: To popularise new and innovative products worldwide.
Objective of M&S: Company is going to introduce a new innovative product in market
which is BOXED tables in order to target students and working people. Objectives of company
are:
 To increase market share by 20% in Australia within 1 year.
 To develop standardised tables in order to increase sale by 25% in 4 months.
Market segmentation: M&S is going to segment market on the basis of demography
and targeting students and office persons for their BOXED table (Arora and McIntyre, 2014).
Marketing Mix of BOXED table:
 Product: M&S is going to introduce BOXED table in Australia in order to increase their
customer base and revenues along with market shares. This product serves two purpose
i.e. working table and coffee desk along with stools.
 Price: Company is going to sell this table in affordable price and using economic pricing
strategy so that large number of people can purchase it and market share of company will
increase.

 Place: This product will be available on all furniture offering outlets of M&S.
 Promotion: M&S is advertising product through pamphlets, social media, magazines and
newspaper.
 People: Company is giving special training to employees so that they can appropriately
specify the merits of BOXED table to customers.
 Process: M&S is using an efficient process in which feedbacks and complaints of people
regarding table are given proper considerations (WANG and CHENG, 2012).
 Physical evidence: Outlets and online website of M&S is physical evidence of product.
Ethical issues: Ethical business emphasize on safety within work place. While
manufacturing BOXED tables, company needs to consider safety procedures for employees such
as providing them protective gear and glares to protect themselves from harmful radiations. As
per governmental policies, if M&S will not consider it they have to pay high penalties and taxes.
Environmental issues: These can be scarcity of water and other needed resources like
wood and electricity. Also, if production procedure of BOXED table will have adverse impact on
environment, company must have to change their production process and methods in order to
maintain governmental standards (Bork and Sidak, 2013).
TASK 2
Covered in PPT
TASK 3
1 Environmental audit of M&S and evaluation of strategic position
Environmental audit is the assessment of extent at which a company is observing the
practices to minimize the harm on environment. In respect with M&S, Environmental audit is
carried out by using PESTEL analysis and Porter five forces.
PESTEL analysis of M&S:
 Political factor: Government of Australia has formulated some rules for international
organisations, in case if M&S will not abide by them they were forced to close their
outlets (IoANNIS, GIANNIS and KLEoPATRA, 2012). They need to consider impact on
environment before initiating any production process. It is important for M&S to adopt
fair trade policy in order to sustain a strong position in Australia.

 Economic factor: To improve their revenues and profitability, M&S needs to change
their way to represent themselves in market. Economic condition of people in Australia is
good. Due to this, Country promises a wide growth and profitability to M&S.
 Social factor: Society in Australia is open minded and likes modern and innovative
products, in this respect M&S is going to achieve a big success with the launch of its
BOXED table. Society is not biased and multicultural people lives in harmony. Due to
this, preference and expectations of people doesn't vary to a big extent.
 Technological factor: M&S needs to use technology advanced machinery and vehicles
to increase their customer base in Australia. Country is technologically advance. Hence,
it is not hard for company to pursue work with technological advancements.
 Environmental factor: As environment is greatly impacted, due to business operations
of organisation. M&S needs to do an environmental audit before opening up a factory or
industry for production process. After passing all environmental aspects, it is suitable for
company to start producing and sale process in Australia (Eccleston-Turner, 2016).
 Legal factor: Legislations changes form time to time. M&S is updating their policies and
production methods to match up the legal regulations of government in Australia. This
will helps them in sustaining a strong position within market.
Porter five forces:
 Competitive rivalry: It is high in case of M&S. Company faces high rivalry form rival
companies which are also operating in furniture segment. Also, company is facing high
completion in clothing sector form ZARA and ALDO. In food industry potential threats
are Tesco and Sainsburry. In respect with Australia as country imports furniture,
company is not going to face hard competition.
 Bargaining power of buyers: Threat form buyers and their bargaining power is low in
Australia. This is because no other renowned retail companies like is providing multi-
purpose furniture product in economic range. Due to this, customers are willing to pay
amount company is offering.
 Bargaining power of suppliers: Problems in carrying out business activities can take
place due to supplier. To produce a furniture product, resources such as water, wood and
machines are required. Australia is scarce in these resources due to this bargaining power
of suppliers are high (Alhyasat, Sharif and Alhyasat, 2018).

 Threats of new entrants: Threats from other companies is low in case of BOXED table.
According to market analysis, no other furniture company is planning to introduce same
kind of product in affordable ranges.
 Threats of substitutes: Many other retail companies from outside Australia are planning
to expand their presence in clothing, food and home product sector. That can be a
potential threat for M&S (Pawar, 2013).
CONCLUSION
From the above mentioned report, it has been analysed that to successfully expand
business at international level company needs to analyse market, formulate an effective
marketing mix, business and marketing plan. To enhance revenue, it is important for company to
target right customers. Proper segmentation of market is required to target right customers.
There are several methods by which a company can enter foreign market. Environmental
analysis helps an organisation to check whether it is favourable to operate in other country or
not.

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