Investigative Report: Rowlinson Knitwear's International Expansion

This investigative report examines Rowlinson Knitwear's potential for international expansion, focusing on market selection, entry methods, and marketing strategies. The report begins with a brief background of the company, a UK-based manufacturer of corporate and school wear, and then explores the motives driving internationalization, distinguishing between proactive and reactive factors. It analyzes the selection of Ireland as a target market using the 12C's framework and compares it with Spain. The report then evaluates various market entry methods, concluding that direct exporting is the most appropriate for Rowlinson Knitwear. Finally, it outlines potential marketing strategies, including advertising, sales promotion, and direct marketing, to ensure success in the Irish market. The report concludes by emphasizing the importance of adapting marketing communications to the target market.

INVESTIGATIVE
REPORT
Table of Contents
INTRODUCTION...........................................................................................................................1

MAIN BODY...................................................................................................................................1
Brief background about selected organisation or product...........................................................1
Analyse about potential internationalisation motives that can impacts an organisation to move
in new international market ........................................................................................................1
Apply global marketing models in context with international market selection .......................2
Reason for choosing selected markets........................................................................................5
Analyse and evaluate different methods of market entry used by selected firm to enter one
market..........................................................................................................................................5
Evaluate the appropriateness of selected entry method..............................................................6
Discuss about potential marketing strategies that assures success in international market .......6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Global marketing is described as the way to formulate and adjust market strategies of an
organisation so that customers in worldwide context can be targeted. This concept is more broad
the simply selling of a service or product in global manner. This is a complex process which
involves activities like creating, planning, positioning and advertisement of a brand or specify
product (Baker, 2014). This assignment is based on Rowlinson Knitwear which is a London
based organisation, operating their activities in UK only. This organisation provides corporate
and school wear to their customers. This assignment will cover about different reasons which can
trigger a company to internationalise their business along with implementation of global
marketing model. Also, various methods of market entry are discussed and at last marketing
strategies will be mentioned that will ensure success in global market.
MAIN BODY
Brief background about selected organisation or product
In order to perform this assignment, selected organisation is Rowlinson knitwear. This
company operates within UK only and provide good quality Knitwear, corporate and school
wear to their customers. Due to standardised services and products, people are highly satisfied
from this organisation. This company is founded in 1972 and employees around 70 employees.
As company is operating in domestic market only, their revenues and profits are limited. Hence,
owner of company has decided to expand their business in new international markets so that
large customer base can be served and high revenues can be achieved. Appropriate expansion in
international market will bring numerous opportunities for concerned organisation in terms of
growth and success (Buckley and Casson, 2018).
Analyse about potential internationalisation motives that can impacts an organisation to move in
new international market
Concept of globalisation and international is increasing at a fast pace. Every firm wishes
to internationalise their business in hope to achieve expected results. But still, there are certain
motives which influence a company to expand their operations in new international markets.
These motives are of two kinds i.e. Proactive and Reactive motives which are discussed below:
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Proactive motives
 Profit and growth goal: This is one of the main motive which motivates an organisation
to internationalise their business. Performing activities in global market will assure more
revenues and sales due to wide pool of customers. Hence, operating in international
market assures high customer base due to which sales and revenues of Rowlinson
Knitwear will be more.
 Foreign market opportunities: Operating in multiple countries allows an organisation
to serve millions of customers. If these customers will be satisfied then opportunities like
high profits, increased reputation, high customer retention can be grabbed. These aspects
will help Rowlinson Knitwear in becoming a renowned name with high brand equity
(Cornwell and Kwak, 2015).
Reactive motives
 Competitive pressure: Due to increased pressure in local market, organisations faces
fear of losing their revenues and customers to those companies which are performing
their business activities at both global and domestic market. Competing rivals in
competitive manner can also triggers Rowlinson Knitwear to operate internationally. By
this, they will be able to compete with competitors in terms of revenues and profits.
 Small and saturated domestic market: Operating in limited market leads to market
saturation due to which revenues and profits of an organisation start reducing. This
situation can triggers the owner of a company to internationalise their business.
Expanding in big countries will assure large customer base to serve and satisfy if
marketing strategies of Rowlinson Knitwear will be appropriate (Kasemsap, 2015)
(Schniederjans, Schniederjans and Schniederjans, 2015).
Apply global marketing models in context with international market selection
In order to internationalise their business, manager of Rowlinson Knitwear has selected
two countries i.e. Ireland and Spain. These two countries are selected as they are neighbours of
UK and part of European union. At present, UK has exited from European union but it shares
cordial relationship with both Spain and Ireland. Due to this, it will be easier for Rowlinson
Knitwear to expand their business in these two countries. To analyse these international markets,
12C's framework to international is discussed below:
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Basis Spain Ireland
Country Spain is situated in south-east part of
Europe and borders France, Portugal,
Mediterranean sea and other
countries. This country has
population of near about 40 million
people with per capita GDP of
34,600 dollars.
Ireland is an island country based on
North Atlantic. This country is
neighbour of UK. Population of
country is around 7 million. GDP of
country is around 30,000 Euro per
person.
Concentration This country is divided into
provinces, cities and approx 17
autonomous regions. 3 million of
population reside in capital Madrid
and other big cities are Valencia,
Barcelona, Malaga, Zaragoza etc.
This nation is divided into state,
urban and rural areas. Capital of
Ireland is Dublin and biggest city in
Ireland is Belfast. Most of the people
in Ireland lives in Urban area
(Tedlow and Jones, 2014).
Culture/
consumer
behaviour
Ethnic composition of Spain are
Nordics and Mediterranean. Main
religion followed by people is Roman
Catholic. Official language of Spain
is Castilian Spanish.
Composition of Ireland includes
Asian (1.7%), Black(1.1%) and
White (96.4%). Other ethnicities are
also present in minority of 0.8%.
Choices Competition in Spanish Cloth market
is strong due to presence of large
organisations like Zara, H&M. Also,
most of the people prefers to
purchase standardised products only.
Competition in Irish market is low as
most of the business organisations
operating there enjoy monopoly in
their respective fields.
Consumption As Spain has high GDP people are
capable to purchase products and
services to show off their luxurious
living. Consumption of cloths is high
Population in Ireland includes
people form average and rich
section. People prefers to purchase
those products which can serve their
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in this market. needs properly.
Contractual
obligations
Regulatory and legal framework in
Spain are very fair, transparent and
less complex than other European
nations. Also, country is open up for
foreign investment. In case of retail
sector, government regulate it with
limited competition (Andersson and
Evers, 2015).
A UK based organisation is required
to follow limited legal and
regulatory framework to operate in
Ireland due to nearby borders.
Commitment Trade system is Spain do not
involves any essential licence or
quantitative restrictions for EU
members. As UK has exited from
EU, this aspects will impact
Rowlinson Knitwear in negative
manner.
Trade system of Ireland is robust but
as UK is their neighbouring nation,
Rowlinson Knitwear will not have to
get any specific license to operate
their business operations there.
Channels Country offers easy access to
European markets and its has well
developed infrastructure involving
water, rail and air transportation.
Ireland is very close to UK in
comparison to Spain. This will
benefits Rowlinson Knitwear in easy
export of production.
Communication Media landscape in Spain do not
have any particular regulations due to
which concerned company can easily
communicate their thoughts to
customers.
Government in Ireland do not have
any strict norms related with
promotions and advertisements of
products (Coviello, Jones and
McDougall-Covin, 2015).
Capacity to pay This aspects is high for Spain as
people residing there posses
disposable income.
People in Ireland have average
capacity to pay as products of
Rowlinson Knitwear are not highly
priced, company will earn good
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sales.
Currency Currency in Spain is Euro with
exchange rate amounts to 1 Euro=
0.86P. Also, inflation rate in Spain is
high.
Currency in Ireland is Euro and
inflation rate in Ireland is less in
relation to Spain.
Caveats Growth in Spanish market is low due
to increased competition among
business organisations.
This market promises high business
growth due to less competition
among business organisations.
Reason for choosing selected markets
According to the analysis carried above, manager of Rowlinson Knitwear have selected
Ireland as suitable international market for business expansion. This is because, Ireland is
immediate neighbour to UK due to which export and import of products will be carried out
without spending high transportation charge. As Spain is a big market, competition there is high,
for a new and medium size organisation, it is not possible to compete against large organisation.
But this, situation is different for Ireland where business competition is less due to which
business growth is high (Demangeot, Broderick and Craig, 2015).
Analyse and evaluate different methods of market entry used by selected firm to enter one
market
There exist different methods to enter a new market. In case of Rowlinson Knitwear,
some methods are stated below:
 Direct exporting: It is referred as direct selling of the products into the selected market
with the help of distributors, retailers and wholesalers. This is one of the best method to
enter a new market without physically entering there.
 Licensing: It is basically a sophisticated arrangement in which an organisation transfers
another firm the rights to use a service or product. This method to enter international
market is useful if the purchaser of License holds high market share in market.
 Franchising: This is the fastest way to expand business in international market. It is
suitable for those companies which posses repeatable business models and planning their
expansion in multiple international markets (Mathews and et. al., 2016).
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 Joint venture: It is a kind of partnership among two organisations in which an
independent third party is formulated so that required work can be performed efficiently.
In this mode of market entry, profits and risks are shared among partners in equal
amount. One example in this context is Sony/Ericsson mobile phones.
Evaluate the appropriateness of selected entry method
Out of all the methods, concerned organisation is going to use direct exporting methods
to enter the market of Ireland. This method is most suitable in context with situation of
Rowlinson Knitwear. This method will require less number of capital and manpower as all the
work will be carried out in UK only and final product will be exported to wholesalers, retailers
and distributors present in Ireland. In case of Licensing, Joint venture and franchising, company
will require heavy capital which is difficult to be arranged by small scale company like
Rowlinson (Ngo and et. al., 2016).
Discuss about potential marketing strategies that assures success in international market
There are different kind of marketing strategies that can be adopted by the manager in
Rowlinson Knitwear to confirm that they will achieve high advantage and revenues in
international market. In this context, marketing communication mix is used which will include
multiple marketing strategies so that concerned company can communicate about their products
to global customers. Aspects of communication marketing mix are stated below:
 Advertising: By promoting and advertising about their offerings in Ireland market
through newspaper, TV, Rowlinson Knitwear can assure appropriate attention of
customers due to which firm will be able to acquire high sales and profits in Ireland.
 Sales promotion: This is one of the best market strategy to gain attention of customers.
In this strategy, freebies and discounts will be provided by Rowlinson Knitwear to the
people in Ireland. This will helps the customers in acknowledging the products of
company and customer base of organisation will hike in Ireland (Surugiu and Surugiu,
2015).
 Direct marketing: It is also known as internet marketing. In this kind of marketing
technique, manager of Rowlinson Knitwear can take help of social and digital media like
Facebook, Instagram, Twitter etc. to interact and connect with their customers. This will
allow the customers to get updates about company on regular basis and hence, interest of
internal customers can be maintained properly.
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These are some of the marketing strategies which can be adopted by the manager of
Rowlinson Knitwear to gain the support and attention of customers in Ireland. By this, business
expansion in Ireland will became successful and overall profits & revenues of firm will enhance.
CONCLUSION
As per this discussed report, it has been summarised that global marketing helps an
organisation in operating worldwide due to which high revenues and profits can be achieved.
Foreign market opportunities and Competitive pressure etc. are some of the triggers which
motivate an organisation to internationalise their business. Also, 12 C's framework of market
analysis is the best marketing model to select right international market. Best method to enter an
international markets is direct exporting Also,Direct marketing, Advertising, Sales promotion
are some of the marketing strategies which assures that concerned organisation will achieve high
growth and success in international market.
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REFERENCES
Books and Journals
Baker, M. J., 2014. Marketing strategy and management. Macmillan International Higher
Education.
Buckley, P. and Casson, M., 2018. Marketing and the multinational: extending internalization
theory. In The Multinational Enterprise. Edward Elgar Publishing.
Cornwell, T. B. and Kwak, D. H., 2015. Sponsorship-linked marketing: Introduction to
topics. Journal of Sport Management. 29(2). pp.133-136.
Kasemsap, K., 2015. The roles of cross-cultural perspectives in global marketing. In Analyzing
the cultural diversity of consumers in the global marketplace (pp. 37-59). IGI Global.
Schniederjans, M. J., Schniederjans, A. M. and Schniederjans, D. G., 2015. Outsourcing and
insourcing in an international context. Routledge.
Tedlow, R. S. and Jones, G. G. eds., 2014. The Rise and Fall of Mass Marketing (RLE
Marketing). Routledge.
Andersson, S. and Evers, N., 2015. International opportunity recognition in international new
ventures—a dynamic managerial capabilities perspective. Journal of International
Entrepreneurship. 13(3). pp.260-276.
Coviello, N.E., Jones, M.V. and McDougall-Covin, P.P., 2015. Is International Entrepreneurship
research a viable spin-off from its parent disciplines. Rethinking entrepreneurship:
debating research orientations, pp.78-100.
Demangeot, C., Broderick, A. J. and Craig, C. S., 2015. Multicultural marketplaces: New
territory for international marketing and consumer research. International Marketing
Review. 32(2). pp.118-140.
Mathews, S. and et. al., 2016. Internet marketing capabilities and international market
growth. International Business Review, 25(4). pp.820-830.
Ngo, V. D. and et. al., 2016. Domestic institutional attributes as drivers of export performance in
an emerging and transition economy. Journal of Business Research. 69(8). pp.2911-
2922.
Surugiu, M. R. and Surugiu, C., 2015. International trade, globalization and economic
interdependence between European countries: implications for businesses and
marketing framework. Procedia Economics and Finance. 32 pp.131-138.
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