International Marketing Strategies for Peacocks: A Critical Evaluation

Desklib provides past papers and solved assignments for students. This report analyzes Peacocks' international marketing strategies.

1INTERNATIONAL MARKETING
International Marketing
Student’s ID:
University Name:
Author’s Note

2INTERNATIONAL MARKETING
Table of Contents
Introduction......................................................................................................................................3
LO1 Demonstrate an understanding of how marketing contributes to business strategies in an
international context........................................................................................................................3
International context....................................................................................................................3
Contribution to meet strategic objectives:...................................................................................4
LO2 Evaluate entry to a selection of international markets and defines the key success factors....5
Critical evaluation of international markets................................................................................5
LO3: Examine how ingredients of the marketing plan may be implemented in the global markets
.........................................................................................................................................................6
Product adaption: global versus local..........................................................................................6
Pricing in international markets and the utilize of technology to help the international
distribution and promotional strategies considering hardware....................................................7
LO4: To assess the global marketing efforts (multinational, global, transnational and meta-
national, etc)....................................................................................................................................8
Organisation structures in an international context.....................................................................8
Home or international orientation and way of asses the competitors..........................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

3INTERNATIONAL MARKETING
Introduction
This report introduces with the variety of methods used by organisation to organize their
international marketing efforts. Various challenges faced by an organisation while internationally
marketing are critically evaluated in this report. Peacocks is a fashion retail chain headquartered
in Cardiff. This unit emphasizes on the ability to work with marketing team as a marketing
consultant. Marketing efforts need to surpass the international boundaries in this world of
globalisation. As a marketing consultant, it is necessary for the marketers to gain appreciation of
the different social, administrative and political issue that are present to transfer marketing
strategies to different nations and the impact it could generate on both the customers and the
organisation.
LO1 Demonstrate an understanding of how marketing contributes to business strategies in
an international context
International context
The execution of business exercises to design, cost, promotes and directs flow of goods and
services of a company to the customers in more than one nation is characterized as international
marketing. There is only a minor difference in domestic marketing and in international
marketing, which is of more than one country. International marketing has a great importance in
the global arena. According to (Berthon et al. (2012), it develops peace among the nations,
reduces risks and opens more opportunities. Global marketing enhances the relationships
between the nations. The main objective of international marketing is to gain profit by selling the
goods in geographical area, which have a high demand for these goods.
There are various rationales to why organisations are seeking to internationalize. Some of these
include international market provide more opportunities, outside market gives more attention to
the goods offered, entry barrier in global market are lower, the competition is intensified in the
global market and international market widens the pool of dealers and buyers. Peacock gets high
recognition of the brand in international market (Akaka et al. 2013). Internationalisation of
Peacock would increase the sales of the company and diversify the operations. Different nations

4INTERNATIONAL MARKETING
have different context and different innovation style. Innovation style makes a company unique
and helps the company to develop new products, learning from the competitive market.
The expectations of customers are continuously increasing and the technology is being redefined
by these expectations and values. As opined by Akaka et al. (2013), the understanding of
customer trends is necessary for a company to build a 360-degree view of the global market. The
macro trends of consumer are often complex and summary of interrelated shift in the behaviour
of consumers. The global macro trends include the demand of women and make marketing style
friendlier. The advanced technology provides more customize shopping experiences to the
customers and attracts them (Sousa and Filipe Lages, 2011). Now, the power customer replaces
the customer power and improves the ability to interact and develop their relationship with
customers.
Contribution to meet strategic objectives:
According to Sousa and Filipe Lages (2011), Marketing is the most influential strategy
contributing towards the international background. The success of an organisation depends on
the efficient performance in various areas and functioning. The marketing strategy of a company
develops positive impact of goods and services provided by Peacock in the mind of customers.
Marketing strategy in international markets must target a proper market and address the needs
and requirements of that market. Any strategy can be developed by marketing team, which
enhances the strengths of a company and efficiently make use of their resources and
competencies (Bangara et al. 2012). The strategies from setting of a goal to proper selection of a
strategy must be critically evaluated to get higher pay-offs, as this makes a significant
contribution in Peacock.
Major factors that influence internationalism are globalisation, advancement of technology,
competitive environment, international experience of staff, etc. Technological inventions have
reduced and eliminated the trade barriers, which have resulted in high expansion of the firms.
Globalisation has created huge opportunities for the organisations like Peacock. International
marketing may be influenced by exporting goods, holding joint ventures and directly investment
in a company or a firm (Maga et al. 2013). A company in developed market enters with lower
quality in demands and then gradually improves the quality and meet the requirement of the

5INTERNATIONAL MARKETING
market, whereas a company in developing country moves to the sector where less competition
can be found and the domestic firms are been declined due to the high-cost structure.
The digital world has removed the boundaries between the nations and the focus of the
companies in this world is to provide a more unified marketing strategy. A company must
understand the environment in which it will be working. Bangara et al. (2012) discusses that a
proper marketing plan must be developed by the company to succeed in the global environment.
The needs of a particular region must be fulfilled by a company and accordingly customize the
approach for that environment. The most necessary thing in setting the strategy is to localize
your message so that the message can be understood by each market.
LO2 Evaluate entry to a selection of international markets and defines the key success
factors
Critical evaluation of international markets
Most of the companies think that their market is limited and so it becomes an important factor
for them to choose an appropriate international market. According to Akaka et al. (2013),
choosing a right market develops and improves the effectiveness of a company. Learning and
growing in company is related with its development. The importance of choosing a right market
is that it creates awareness among the customers related to the products and services offered by
the company. A right market lowers the marketing costs and provides the company with high
profits.
According to Akaka et al. (2013), the selection of an international market involves four stages,
which makes the process more manageable. First stage is the decision making, which involves of
primary focus of the company and the prerequisite for the success of business. Next stage is
creating a list of shortlisted countries by eliminating the countries that do not meet the
prerequisites. The third stage of international market selection is preliminary screening, which is
to look into the depth for the available options (O'Gorman and Evers, 2011). The final stage in
this selection process is finalizing the selection by assessing the revenue potential and profit
margin. However, various challenges need to be faced by a company to expand internationally.
The political environment, pricing techniques, which include surcharge, custom duties and

6INTERNATIONAL MARKETING
currency values are managing the reputation of the company. All these act as a barrier for the
establishment of a company in international market (O'Gorman and Evers, 2011). Over these,
ethical issues are also faced by company like outsourcing, working standards, equal opportunity
etc. On the other hand, international market provides a company with bulk of opportunities such
as diversified network, access to new talent, competitive advantage and higher investment
opportunities to develop a company.
According to Akaka et al. (2013), a risk management plan is essential for every business,
regardless of purchasing the liability insurance or requirement of full-time managers to execute
it. The increase in complexity of a business also increases the involvement of risks in it. The
experienced businesses are all aware of the risks and they have contingency planning to
minimize the risk (Olhager, 2012). A contingency planning in a business is an action that is taken
by an organisation when an unexpected situation occurs. A contingency plan may range from a
fire evacuation plan to appointing an emergency coordinator. A company must provide training
to its employees for such conditions.
A company can enter an international market in numerous ways. A single market strategy does
not work for all the companies. These include direct licensing, franchising, exporting,
collaborating, joint ventures, piggybacking, turnkey projects and Greenfield investments. The
most effective strategy to enter an international market is direct exporting (Berthon et al. 2012).
Many factors control the choice of a policy including the tariff rates, degree of adaptation of
product and the marketing and transportation costs. These factors are expected to increase the
sales with offset the costs. Entering an international market for a new company is always tricky.
The three things to be kept in mind for the successful establishment of a company in an
international market are demographics of a nation, projection of the cost-benefit and calculation
of addressable market. A company must think about these three factors critically (Akaka et al.
2013). Once these three factors are evaluated, it is important for a company to make sure that a
proper cultural nuance is added to the translated content.

7INTERNATIONAL MARKETING
LO3: Examine how ingredients of the marketing plan may be implemented in the global
markets
Product adaption: global versus local
According to Olhager (2012), product adaptation is the process of changing an existing item, as
it is suitable for different markets or consumers. An adaption strategy is particularly significant
for the companies, which export their items in effective manner. In global market, the company
must develop on the basis adaptation strategy and research of the needs of consumers (Berthon et
al., 2012). All the marketing strategies have to be adopted internationally, the company has to
rise the challenge of manage environmental dissimilarities in terms of regulations, economic
development and business practices. For the local company like Peacocks, the principle of
marketing is simple. It indicates that a successful local company needs the actual capability of
think global while acting local. With over 65% retailer’s shops being controlled by independent
entrepreneurs, Peacocks is one of the leading company. They have expanded their marketing
activities in the local areas (Hagen et al., 2012). A global company has a foothold in several
nations but the processes and offerings are consistent in every nation. For instance, a major soda
brand may establish shop in several nations, but the recipe does not modify within the
international market.
Like the global company, local companies like Peacocks also operates in several nations, and the
company implements marketing messaging to fit each culture group. Driving the sales is always
top in their mind. The main difference within a local business model is the adaption of
manufacturing process and product offerings (Lindgreen et al., 2012). A local company like
Peacocks has more autonomy in every individual nation, whereas a global company like Apple is
still beholden towards its central operating models. A global company is able of altering the
business structure to transform to multinational. The structures are not entirely static, and both
influenced by their patient company and top-level leadership.

8INTERNATIONAL MARKETING
Pricing in international markets and the utilize of technology to help the international
distribution and promotional strategies considering hardware
According to Hagen et al., (2012), Price is the least attractive element to be considered in case of
international markets. Marketing companies like Peacocks must target on producing as high
margin in their products as probable. However, companies require grabbing the benefits to hold
on their consumers as they arrange free trials on the fashion items at minimal rates (Morrison,
2013). The rates of marketing are also depend on the pricing, as it gives the company to analyse
the marketing segment. As a local company, pricing is a factor to attain the certain marketing
objectives. An entire goal must aim at contributing towards the company’s sales and profit
objectives. Further, analysing the market characteristics is another important aspect while expand
the company’s business in the international market.
A company is dealing with the consumers, especially as they expand their business, it may be
difficult to keep track of all contacts. CRM software supports the company to make a database of
all the contacts, which may be accessed by any members of their team (David et al, 2013). By
utilizing the cloud computing, a worker may access the files from anywhere. This may be
beneficial towards companies operating on an international scale. For the companies, which sell
or buy internationally, logistics may be the most troublesome pat of doing the business. It may
support to carry out the products internationally. Technology also supports to plant the trade
routes, control any trade restrictions and track the shipments of any products. On the other hand,
promotional strategies also support the local company like Peacocks to understand and connect
with consumers and clients (Harvey et al., 2013). A proper marketing plan is also significant
factor to develop a promotional strategy as it supports the business identity and to set the
measurable goals.
LO4: To assess the global marketing efforts (multinational, global, transnational and meta-
national, etc)
Organisation structures in an international context
In international context, a functionally organized company utilizes the corporate functions as the
basis of its organisational structure in international context. However, design, consumer service

9INTERNATIONAL MARKETING
and human resource are typical functional units for the organisation to expand their business in
international market. In case, a functionally organised company has a centralized structure, all
types of operations are developed in the home country. This type of company is effective in
international market (Griffith and Hoppner, 2013). The most general form of organisational
structure is developed based on geographical needs. The structure design supports the
organisation to be homogenous in direction. The chain of command filters up towards one
central location with the similar objectives for the company. It enables a growing company the
capability to develop smaller offices that imitate what the parent office does. A company may
accommodate the foreign operations without disrupting the market, as they would like to develop
an international division (Hagen et al., 2012). This model is suited towards the larger companies,
but it is also effective for local companies like Peacocks. They have a recognized home market
in the region of UK and a rapid growing global business. However, it leaves the organisation free
to maintain the focus on their home market (Katsikeas et al., 2016). The international division
utilizes a different vision to attain the outcomes required within a growing market.
Home or international orientation and way of asses the competitors
International marketing is the method of exchange of products and services within the
international environment. However, Hagen et al., (2012) opines that globalisation, technical
advancements and accessibility of internet make an advantage to enter in the international
markets to enlarge the profits. Firms may utilize the global market orientation to overcome the
cultural problems. Market-oriented behaviours facilitate dissemination and acquisition of
knowledge about foreign markets (Abdul-Talib and Abd-Razak, 2013). However, four types of
orientation asses by the competitors in their business operations like ethnocentrism, geocentrism,
regiocentrism and polycentrism. Ethnocentric approach would better suit for small companies to
enter in the international market. This approach occur most proper for the companies while
overseas sales volume is insignificant to compare the total sales of the firm. However,
polycentric orientation would give inoperative platform for the firms to commit in the
international market. By applying this orientation, the competitors know the consumer base and
understand the maximum degree of marketing orientation (Cavusgil et al., 2014). Regiocentric
orientation gives the company for developing the coordination and control the structure of
organisation.

10INTERNATIONAL MARKETING
However, negotiation is a method in which two or more parties discuss an issue on their goals
and needs. They also discover a mutually acceptable solution in their businesses. In international
business, negotiation skills are significant factor in both formal transaction and day-to-day
transactions (Griffith and Hoppner, 2013). Good negotiations contribute significantly towards
business success, as they:
 Support to develop the better relationships
 Lasting, quality solutions, deliver- rather than poor short-term outcomes, which do not
satisfy the requirements of either party
 Help to avoid the future conflicts and problems
A competitive investigation is an appraisal of the competition within a definite market focused at
informing the business decision. An appraisal typically engages the company to create a list of
competitors and making a profile of every competitor to asses in the international market
(Katsikeas et al., 2016). The assessment of competitive market supports the managers to account
the incidence of competitors while making the business decisions. Recognizing the weakness and
strengths of competitors may enable the managers to exploit the weakness where other
companies are strong. A major business plan is a document to outline the aspects of the business,
including management arrangement, product offerings and mission. Assessment of competition
may make it more effective for a business to attain a possibility in the market. It also presents a
probable path to exit the market (Harvey et al., 2013).
Conclusion
It can be concluded from the report that a company like Peacock must understand the importance
of international market and develop strategies accordingly. The company should select an
appropriate entry method and accept all the challenges. The success factor of a company is based
on these strategies. The marketing plan in an international market enhances the productivity of a
company by implementing new technologies. The international marketing efforts in a company
can be organised by proper negotiation and appropriate assessment of business.

11INTERNATIONAL MARKETING
References
Abdul-Talib, A.N. and Abd-Razak, I.S., 2013. Cultivating export market oriented behavior in
halal marketing: Addressing the issues and challenges in going global. Journal of Islamic
Marketing, 4(2), pp.187-197.
Akaka, M.A., Vargo, S.L. and Lusch, R.F., 2013. The complexity of context: A service
ecosystems approach for international marketing. Journal of International Marketing, 21(4),
pp.1-20.
Akaka, M.A., Vargo, S.L. and Lusch, R.F., 2013. The complexity of context: A service
ecosystems approach for international marketing. Journal of International Marketing, 21(4),
pp.1-20.
Bangara, A., Freeman, S. and Schroder, W., 2012. Legitimacy and accelerated
internationalisation: An Indian perspective. Journal of World Business, 47(4), pp.623-634.
Berthon, P.R., Pitt, L.F., Plangger, K. and Shapiro, D., 2012. Marketing meets Web 2.0, social
media, and creative consumers: Implications for international marketing strategy. Business
horizons, 55(3), pp.261-271.
Berthon, P.R., Pitt, L.F., Plangger, K. and Shapiro, D., 2012. Marketing meets Web 2.0, social
media, and creative consumers: Implications for international marketing strategy. Business
horizons, 55(3), pp.261-271.
Cavusgil, S.T., Knight, G., Riesenberger, J.R., Rammal, H.G. and Rose, E.L.,
2014. International business. Pearson Australia.
David, H., Dorn, D. and Hanson, G.H., 2013. The China syndrome: Local labor market effects of
import competition in the United States. American Economic Review, 103(6), pp.2121-68.
Griffith, D.A. and Hoppner, J.J., 2013. Global marketing managers: Improving global marketing
strategy through soft skill development. International Marketing Review, 30(1), pp.21-41.

12INTERNATIONAL MARKETING
Hagen, B., Zucchella, A., Cerchiello, P. and De Giovanni, N., 2012. International strategy and
performance—Clustering strategic types of SMEs. International Business Review, 21(3), pp.369-
382.
Harvey, M., Fisher, R., McPhail, R. and Moeller, M., 2013. Aligning global organizations'
human capital needs and global supply‐chain strategies. Asia Pacific Journal of Human
Resources, 51(1), pp.4-21.
Katsikeas, C.S., Morgan, N.A., Leonidou, L.C. and Hult, G.T.M., 2016. Assessing performance
outcomes in marketing. Journal of Marketing, 80(2), pp.1-20.
Lindgreen, A., Hingley, M.K., Grant, D.B. and Morgan, R.E., 2012. Value in business and
industrial marketing: Past, present, and future. Industrial Marketing Management, 41(1), pp.207-
214.
Maga, M., Canale, P. and Bohe, A., Accenture Global Services Ltd, 2013. Customer profitability
and value analysis system. U.S. Patent 8,428,997.
Morrison, A.M., 2013. Marketing and managing tourism destinations. Routledge.
O'Gorman, C. and Evers, N., 2011. Network intermediaries in the internationalisation of new
firms in peripheral regions. International Marketing Review, 28(4), pp.340-364.
Olhager, J., 2012. The role of decoupling points in value chain management. In Modelling
value (pp. 37-47). Physica-Verlag HD.
Peacocks. (2019). Mens, Womens & Kids Fashion, Cheap Clothes | Peacocks. [online] Available
at: https://www.peacocks.co.uk/ [Accessed 6 Apr. 2019].
Sousa, C.M. and Filipe Lages, L., 2011. The PD scale: a measure of psychic distance and its
impact on international marketing strategy. International Marketing Review, 28(2), pp.201-222.