International Marketing Report: R.M. Williams' Expansion Strategy

This report provides a comprehensive international marketing analysis for R.M. Williams, focusing on the potential expansion into European and Chinese markets. The report begins with a company overview, including historical background, product categories, and product positioning, followed by an examination of its fit within the LVMH group. A PESTEL analysis is conducted for both Europe and China, evaluating political, economic, social-cultural, technological, and legal factors influencing the brand's success. The report then compares key factors between the two countries, leading to a recommendation for the most suitable market for expansion, supported by reasoned arguments. The analysis highlights the importance of understanding macro-environmental conditions and consumer behavior in international marketing. The conclusion summarizes the key findings and recommendations for the brand.

Running Head: INTERNATIONAL MARKETING 1
INTERNATIONAL MARKETING
Student’s Name
Course
University
Date

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Table of Contents
Introduction...............................................................................................................................................3
International marketing............................................................................................................................3
Company overview....................................................................................................................................4
Historical background...........................................................................................................................4
Categories of the products....................................................................................................................4
Product positioning...............................................................................................................................5
Fit with LVMH......................................................................................................................................6
Pestel analysis to establish European macro environmental conditions for the brand....................7
Pestel analysis in china to establish macro environmental factors that may affect the brand.......10
Comparison of key factors between the two countries......................................................................13
Recommended market with reasons..................................................................................................14
Conclusion............................................................................................................................................14
References................................................................................................................................................15

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Introduction
International marketing
This task aims to analyze the international market for R.M. Williams’s boots which is a favorite
brand for most of the Australians and other citizens from various countries in this case Europe
and China. The report is going to clearly depict the purchasing trend of the brand in those two
countries so as to enable the researcher make a recommendation on the country that has a high
capability of being incorporated by LVMH in the marketing of its products to enhance an
increased purchases in the boots. The research shall come up with conclusion for the potential
marketer for the brand after a thorough analysis of the macro environment in both international
markets outlining the similarities and the differences that exist between them in relation to the
marketing of the brand (Brexendorf, Bayus and Keller, 2015).

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Company overview
Historical background.
Reginald Murray Williams commonly known as R.M Williams was the founder of
R.M.Williams Company in the year 1932. This was when he was a hunter and for the
effectiveness of his task he required some boots hence he made his first boots and came up with
an idea of boot making for Australians and this led to the birth of R.M. Williams Company. He
later sold the business to Tony Summers an Adelaide business man in the year 1998. In 2003, the
business went into a receivership under Mr. Cowley and Kerry Stokes and in late 2014, the
ownership of the company was overtaken by IFM investors. The company is currently under the
control of L Capital which is a private firm in Singapore and is backed by the luxury goods
company, LVMH Group.
Categories of the products
The company engages in designing, manufacturing and marketing of the footwear, clothing and
leather accessories for both men and women. The company offers various types of leather boots
in different colors which have various prices according to the quality of the leather used to
manufacture the boot. It also manufactures pants, shirts, tops, jeans, dresses, jackets, knitwear,
skirts, vests, handbags, caps, hats, purses and gift cards for women among others.

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Product positioning
The company often use technology to market its products. It has various online platforms where
the potential customers have an access a variety of information in relation to the company’s
brand for the boots and other products. This is important because it enables the consumer to
make effective purchasing decision (Amin, Uthamaputhran and Ali, 2015). The company also
continues to apply technology in the improvement of their brand to enhance the belief of
customers that the boots can suit their individual needs by from its nature of being fit for both
gender.
The company sells its products in various countries such as United Kingdom, Scandanavia and it
is focusing to expand its market to Europe and China through various formulated strategies such
as forming partnerships with international companies in some investments which paves the way
for penetrating such markets with its brand.

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Fit with LVMH
Louis Vuitton also referred to as LVMH, took over the ownership of R.M Williams Company in
the year 2013 after purchasing over 49% of the total shares of the company. LVMH have opened
new stores for its products in the various parts of the world and the recent establishment in Asia
is a clear evidence of how the company is progressing under the new management.

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Pestel analysis to establish European macro environmental conditions for the brand.
This section shall outline the external environmental factors that have an impact on the foot wear
products in Europe which automatically affects the distribution of the R.M Williams brand in
Europe. These factors range from political, Economical, Socio-cultural, Technological and legal
factors as discussed below.
Political Factors
Several political factors have an impact on the consumer purchasing behavior of the footwear
products in Europe. The government may set high taxes for imported products in order to protect
its local industries and as a result imported goods are usually quite expensive in the foreign
market which lowers the consumers purchasing ability.
Economic Factors
This is most significant aspect in the footwear industry. Most of the people in Europe are
employed with a good income an aspect that increasing their purchasing ability. This implies that
R.M Williams Company should formulate strategies to avail its products in Europe and for sure
it shall reap maximum benefits due to the sufficient income for the population. The economic
situation in Europe implies high value for the currencies hence investment shall be advantageous
for R.M Williams company.

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Technological Factors
According to Hakansson (2015) advancement in technology in European nations have increased
the efficiency of availing various commodities for the target consumers. Most of the industries in
Europe have created their own websites where consumers can access several products and they
also allow other industries from various countries to use the website to advertise their products at
some fee. As a result, R.M Williams Company has the potential of penetrating the market by
availing its products in those websites hence creation of awareness among the target consumers.
This shall in return lead to profit maximization as the company shall be selling to both local and
international consumers.
Legal Factors
Most of the European nations have strict trade laws that protect foreign products. This is because
it has been a trend where foreign companies purchase foreign products and destroy them to
prevent them from prevailing in the market to avoid the competition that may be posed by such
products. When such an act is discovered, the involved company can be dissolved by the court of
law. This implies that R.M Williams can sell its products through foreign agents and this shall
automatically lead to the popularization of its products in the foreign market hence reaping
maximum profit in return.

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Social-cultural factors
Most people in Europe prefer wearing clothes and shoes that may keep them warm due to their
weather (Cramer, 2017). They have a culture of covering themselves with big hats and putting on
heavy jackets. This is a clear implication that R.M Williams Company have a vast market in
European nations for its boots, leather jackets and hats (Müller, 2017). There are also few
competitors in the industry for the same products hence this is an added advantage for the
company in its plan to venture into Europe. Most of the Europeans love fashion. This means that
R.M Williams products shall be of great advantage because of variety of boots, jackets and other
attires that might suit the needs of the target consumers.

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Pestel analysis in china to establish macro environmental factors that may affect the
brand.
Pestel analysis is very important for the business as it facilitates formulation of winning
strategies in the competitive external business environment. In china, political factors, economic
factors, social-cultural factors, technological factors and legal factors have an impact on business
environment (Rastogi and Trivedi, 2016). Pestel analysis for Chinese business environment shall
be very crucial for R.M Williams Company because it shall determine the possibility of
penetration of the market by the company.
Political factors
China is experiencing a stable conducive political atmosphere. The leaders in the nation are in
peace just working towards the development of the Chinese economy. As a result, many
businesses in china are thriving. The government has funded the construction of good roads
which enhances the efficiency of transporting people and goods from one place to another. This
implies that R.M Williams Company can establish its branches in various parts of china since
there are good roads to enhance the supply of its products.
The Chinese government have also expanded free trade policies which does not inhibit
importation of goods hence various foreign products can pave way in the Chinese market
(Davcik and Sharma, 2016). This implies that R.M Williams Company have a good chance to
market its products in the Chinese market to attract purchases from the target consumers.

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Economic factor
Chinese industries have been affected by counterfeit products. This has really affected its
economy because people are less interested with their products and prefer imported goods from
foreign nations. China is a developing country hence its economy is not stable. This is an
implication for R.M Williams Company that it has to offer competitive prices for its boots and
other products to enhance affordability by the Chinese consumers. The aspect of the counterfeit
goods implies that the Chinese shall have a lot of interest for the foreign products hence R.M
William company shall have a golden opportunity for its products in the Chinese market
(Thompson and McLarney, 2017).
Social-cultural factors
China has a large population which implies large market for the goods. China been a developing
country, there is increasing individual wealth acquisition which implies increased purchasing
ability among the people. When people have good wealth, they shall always desire to purchase
classic products hence R.M Williams Company shall be in a good position to avail its products in
the Chinese market with an assurance of attracting such consumers through its quality products.
Most of the Chinese in rural areas are farmers. This implies that the boots shall be very efficient
for moving in the fields hence a potential market for R.M Williams boots (Homeyer, 2018). An
increased emphasis on product safety and originality enhances consumer attraction for foreign
products. In china, there is a wide gap between the rich and the poor hence the difference in
purchasing ability. R.M Williams Company should ensure that it provides a wide range of
products which is affordable for all.

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Technological Factors
The adequate spread of mobile technology in china gives each individual an opportunity to
access the internet where most organizations advertise their various products. This provides a
good opportunity for the boots company to advertise their various products to the potential
buyers in china.
Legal Factors
An increased health and safety awareness in the nation has enhanced local industries to avoid the
production of counterfeit products hence there shall be minimum opportunity for production of
the counterfeit boots. Counterfeit products pose competition to the original products because
they are usually offered at cheap price.