Global Marketing Portfolio: Next Plc and Market Entry Modes

This portfolio assignment provides a comprehensive analysis of global marketing strategies, focusing on the case of Next Plc, a UK-based retailing company. The portfolio is structured around four key entries, each exploring different aspects of global marketing. The first entry introduces the concept of global marketing, defining its scope and benefits, with Next Plc as a case study. The second entry assesses the merging BRIC markets, with a specific focus on China, evaluating political risks, trade obstacles, and economic environments. The third entry delves into factors influencing market entry mode selection, using Next Plc as an example to analyze the decision-making process. The final entry examines franchising as a market entry method, detailing Next Plc's use of franchising, its advantages, disadvantages, and the benefits it provides. The portfolio demonstrates a clear understanding of global marketing principles and their application in a real-world business context, providing valuable insights into international expansion strategies and market analysis.

Porto-folio

Table of Contents
INTRODUCTION...........................................................................................................................3
Portfolio Entry 1: Development of the ‘global marketing’ concept.......................................3
TASK 1...................................................................................................................................3
Portfolio Entry 2: Review of merging BRIC markets.....................................................................4
TASK 2:...........................................................................................................................................4
Portfolio Entry 3: Factors influencing the choice of entry mode.....................................................6
TASK 3............................................................................................................................................6
Portfolio Entry 4: Entry Method- Franchise....................................................................................7
TASK 4............................................................................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES .............................................................................................................................10
.......................................................................................................................................................11

INTRODUCTION
Global marketing involves different organizations and company's marketing planning that
consider the entire world as their place of operations. It is the process to conceptualise to
conveying the final products and services in order to reap important outcomes to reach at
international marketing community. The chosen organisation of respective report is Next Plc is a
retailing company which is operated in UK. This report is based on the important concept related
global expansion in order to occupy important outcomes to remain always competitive in the
marketplace.
Portfolio Entry 1: Concept of global marketing development
TASK 1
Q1. Explain the Concept of global marketing development
Global marketing refers to the chain of activities related with the adjustment of various
marketing planning of the administration in order to change as per conditions of other nations. It
is concerned with selling the products and services beyond the local markeplace. It is the full
fledge activities related with the planning, building and orienting and boosting products and
service in the global market place.
Q2. Doing advance research using theoretical sources, and describe the concept of global
marketing development.
Global marketing development in the words of Martin,(Global Marketing: Strategies,
Definition, Issues, Examples, 2019) concept of global marketing development is an important
tactic which helps to upgrade the audience reach towards the brand name from national level to
the international standard or an event. Respective activity affect the whole world and their
related activities by using certain steps in order to gain potential outcomes. There are some major
benefits of global marketing that proven advantageous for organization as well as individual in
order to remain always competitive which enables to improve the efficiency of organisational
products and services.
Global marketing in the word of Emily Pribanic, Building one of most effective
marketing strategies could be significant for the organisation is very significant (Value of Global
Marketing Plan of action for Businesses, 2019). Building a global marketing strategy is one of
important interfacing with the organisation at a global marketplace. As marketing is very much

obligatory for a business to come at large no. of customer base and organization can increase
their client base by optimising their emerging needs and wants in proper manner. As consumers
become more demanding day by day in that series organisation have to opt global marketing by
developing various tools and techniques.
In order to reach at large no. of consumers, in the words of John Quelch (Customizing
Global Marketing, 2019.) organisation have to come up with the potential products and a
convincing marketing program. There are some crucial attributes which contribute towards the
development of global marketing that are obvious economies and efficiency by which
organisation can gain standard products and programs as competitive conditions differ across
nations.
Q3. Give a suitable example from real business world which relate with this portfolio entry
and provide proper details of this example and how it link to the process of the global
marketing concept.
For an organisation it is very much important to build global marketing strategies in order
to remain always relevant in the marketplace (Charter and Polonsky, 2017.). Here are the few
examples that are real based in nature that are as follows:
Domino's positioned in market as an innovator with objective to enhance its interest and
awareness at the global marketplace. By consistently bring pizzas in market and various
ingredients such as sauce, bread, cheese and other things. They upgrade their toppings as per the
market such as in Asian market they have fish and seafood to optimise opportunities in positive
manner.
On other hand Nike also evolved with the international presence by opting global sponsorship
which is quite predictable in nature and cost got higher due to the triggers of tournaments and
championships. Both related concepts or examples related with global marketing as per the
scenario of respective marketplaces.
Portfolio Entry 2: Assessment of merging BRIC industry
TASK 2:
A Give a back ground to your selected BRIC nation

In BRIC nations includes the Brazil, Russia, India and china, for further studies the
chosen country is china. At the early 21st century the people in the Republic china find
themselves in the interior of social, economical and in ethnic conversion (Aspect to Business in
China, 2019). They are the one of most populated country in the whole world by 1.4 Billion
people their currency is Renminbi. Their Gross development product is 11.2 Trillion Dollar.
B Measure the political risks for your selected country.
The major kind of administration risk that are faced by the china are as follows:
Trade and currency disputes:
There are various kinds of disputes arise in the china that impact on their profitability
within the European union, United states and kinds of other efficiency that brings trade
imbalances and level of Yuan that is the reason behind fierce confrontation. With rising of
china's exports and foreign exchange reserves. In order to they faces pressure to let the Yuan
appreciate as they want economic recovery that remains fragile.
Social stability:
In that regards the party of china's communist party that are responsible for maintaining
authority and control despite of fear of global crisis could bring out unrest in among laid off
workers (De Mooij, 2018.). In that regards the Party and global markets facing the social
stability as one of most fierce subject matter.
C Cover the trade, duty & non-trade obstacles between the UK (or your domestic country)
& your selected BRIC nation.
Tariffs-and-regulations are the matter which have an country as well as organisation have
to be constantly revised. UK is the portion of EU and their commercial plan of action regulated
and measured by the European commission. The sector for trade concept and HR and custom
advice and deal with the various kinds of policies, regimes and procedures to governing issues in
market of UK. There are some kinds of non tariff barriers on plants, agricultural products and
food, animals, medicines and textiles. The requirement of licensing rely on country origin of
product.
On other hand the china's association with the WTO in 2001, in that respect Chinese
government take significant steps to revise their laws and regulations to strengthen their
economy (De Mooij, 2019.). In china tariff barriers includes the enhancement of taxes on other

hand non tariff barriers about increasing limits the volume of traded goods. As china frequently
uses its low exchange rate that encourage the exports by restricting imports.
D Assessment of the economic environment for your selected nation.
Economic transformation of china over the recent decades build it one of the most
favourable destination of investors and exporters in order to gain potentiality of marketplace.
From the past ten years their real GDP has expanded in an average 10% p.a. That helps to other
investors to take decisions regarding investing in respective country. But there are some
downturns also occurs such as that they going with structural slowdown in which growth is
expected to be moderate at mid term. Their equity markets suffered from the sharp slowdown
which impact on their profitability.
E Give the pros and cons for a UK company (or a company from your domestic country)
which is trying to enter in new market.
For an organisation expand into new market have some advantages and disadvantages, in
context of Next Plc which expand into other markets by using franchise to enlarge business
opportunities that are as follows:
Advantages of move into new market:
Decision to expand into new market that is China here helps to Next Plc to attract new
customers that is very much important for them to enlarge business opportunities. As in market
of china highest no. of consumers existed. The another major benefit that it provides economies
of scale to organisation as it helps to spread cost of doing business.
Disadvantages:
There are some disadvantages too that an organisation can spread resources and
expertises of business at limited extent. The leaders of an organisation think that they have to
spread out if things are in favour. So it is very much potential to evaluate their capabilities that
organisation have enough individuals and sources to cover new area with skillfulness.
Portfolio Entry 3: Causes that influence the selection of introduction mode
TASK 3
1. Analyse a company from the ‘real’ business organization. Mention the name of the
organization, and the business in which the organization is involved.

The real business world company is Next Plc which is an British company which deals in
the footwear, clothing and home appliances with around 700 stores in UK. They also operate in
the online business also which allowed them to develop an effective platform to sell home
appliances and clothing in UK and Eire (Schlegelmilch, 2016). They have highly merchandised
warehouse capable to handle the packed, hanging and pattetised furniture products. With their
own distribution networks with 500 stores.
2. State how the “Factors affecting the foreign market entry mode decision” model can
assist you to choose the ‘correct’ entry manner to get into a new market.
Selection of international market entry mode has two dimensions that are internal and
external factors both are very much important. In context of Next Plc in their internal factors that
is market growth sales in market of china's apparel reached over CNY 2077 billion in year 2018
with growing year on year 7.8%. The fast fashion industry have significant growth in Chinese
market with Zara, Uniqlo, H&M that occurs great rate of growth so they aimed to expand in
Chinese market.
In internal factors in context of Next Plc that they have already experienced in international
expansion such as they rooted in UK but after that expand in African, Asian and Oceania market
to enlarge business opportunities.
Portfolio Entry 4: Entry Method- Franchise
TASK 4
1. Select a Fashion merchandiser that uses franchise as a mode of entry. Give the name of
the retail merchant.
Next Plc uses the franchises as the entry method to get into the new market in order to
enlarge business opportunities in positive manner. As franchise is based on the marketing
concept that are adopted by the organisation as an important tool to expand in new marketplace.
2. List which markets your fashion retailer has chosen to use franchise as an entry method.
Next operates through the five divisions as they operate in high streets shops by covering
more then 330 stores in UK. They also have mail order division that possess the e commerce
platform to optimise opportunities. Next overseas their retail outlets in USA, Asia, continental
Europe and middle east with the help of franchises agreement in order to optimise opportunities

in positive manner. The franchise of Next controlled or operated in 20 international market
majorly in East and middle east.
3. Give the pros and cons of using franchise bas an entry mode.
The major advantages of franchises that it is one of most cost effective mode of market
expansion as it handles all research and funding of outlets in the whole chain so organisation not
have to spend capital and time additionally. It is the most effective source of revenue as
organisation can gain additional income in form of ever going royalties paid by franchises.
The major disadvantage that franchisees have less control over change and their
management to running disagreements. It is kind of costly legal action to gain optimum outputs.
4. What are the profits to select franchise for your fashion merchandiser?
Next Plc which is an globally competitive brand name which dominated the fashion
industry in market of UK as they recently seeking franchisees to spread their products at local as
well as global level (Benefits and non benefits of buying a franchise, 2019). They surpassed the
M&S in terms of clothing retailer in terms of sales and they also dominated in online shopping
also ( Gillespie, 2015.). When they originated in online shopping industry in year 2000 their
consumers fully enjoy shopping experiences. So as an franchisee organisation celebrate their
success and security not only a financially stable but also able to generate long term growth.
CONCLUSION
It has been summarised from the report that global marketing strategies plays very much
significant role in context of an individual as well as organisation. There are various kinds of
market expansion strategies, in that aspect it is very important to choose one of best after
evaluating macro and micro factors of business.

REFERENCES
Books and journals:
Charter, M. and Polonsky, M.J., 2017. Greener marketing: a global perspective on greening
marketing practice. Routledge.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
De Mooij, M., 2019. Consumer behavior and culture: Consequences for global marketing and
advertising. SAGE Publications Limited.
Gillespie, K., 2015. Global marketing. Routledge.
Schlegelmilch, B.B., 2016. Global Marketing Strategy. Management for Professionals.
Online:
Advantages and disadvantages of buying a franchise, 2019. [Online]. Available through.
<https://www.business.qld.gov.au/starting-business/buying-business/buying-franchise/
advantages-disadvantages>.
Background to Business in China, 2019. [Online]. Available through.
<https://www.worldbusinessculture.com/country-profiles/china/culture/background-to-
business/>.
Customizing Global Marketing, 2019. [Online]. Available through.
<https://hbr.org/1986/05/customizing-global-marketing>.
Export markets – United Kingdom, 2019. [Online]. Available through.
<https://www.austrade.gov.au/Australian/Export/Export-markets/Countries/United-
Kingdom/Doing-business/Tariffs-and-regulations>.
Factbox: Five political risks to watch in China, 2019. [Online]. Available through.
<https://www.reuters.com/article/us-risks-china/factbox-five-political-risks-to-watch-in-
china-idUSTRE6104CC20100201>.
Global Marketing: Strategies, Definition, Issues, Examples, 2019. [Online]. Available through.
<https://www.cleverism.com/global-marketing-strategies/>.
Importance of Global Marketing Strategies for Businesses, 2019. [Online]. Available through.
<https://www.techfunnel.com/martech/importance-of-global-marketing-strategies-for-
businesses/>.
Next plc - Company Profile, Information, Business Description, History, Background
Information on Next plc, 2019. [Online]. Available through.
<https://www.referenceforbusiness.com/history2/0/Next-plc.html>.