International Marketing Report: Rowlinson Knitwear Analysis

This report delves into the realm of international marketing, examining key concepts and strategies for global expansion. It begins by defining international marketing and its scope, highlighting the differences between domestic and international markets. The report then explores various market entry strategies, such as exporting, franchising, joint ventures, and fully owned manufacturing, along with their respective advantages and disadvantages. It emphasizes the importance of market selection and risk management in volatile markets. Furthermore, the report investigates the global versus local debate, analyzing how product, price, and promotional strategies differ across international contexts. It also examines international marketing approaches, comparing home and international orientations to provide a comprehensive understanding of the subject matter. The report uses Rowlinson Knitwear as a case study to illustrate these concepts, offering practical insights for businesses seeking to expand their operations globally.

International Marketing

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................4
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
1.1 The scope and key concepts of international marketing.......................................................1
1.2 The rationale for the organisation and the routes to market the organisation.......................3
TASK 2............................................................................................................................................4
2.1 Importance of choosing right international market ..............................................................4
2.2 Selection process of international market ............................................................................5
2.3 Opportunities and challenges ...............................................................................................5
2.4 Risk management and contingency planning in relation to volatile markets........................6
2.5 Market entry strategy............................................................................................................6
TASK 3 ...........................................................................................................................................9
3.1 Overview of the key arguments in the global versus local debate. ......................................9
3.2 Investigate how product, price and promotional distribution approach differs in a variety
of international context. ...........................................................................................................10
TASK 4..........................................................................................................................................12
4.1 International marketing approaches ...................................................................................12
4.2 Comparison of home and international orientation ............................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16
.......................................................................................................................................................17

EXECUTIVE SUMMARY
International marketing expanding the business in various parts of the world as it is
considered as one of the effective tool for economic growth of nation as well as company. This
report is based on scope and concepts of international marketing, various ways to enter into
global market, difference between global and domestic marketing. Along with this, selection
criteria of international marketing as well as various market entry strategy in order to enhance
market share. Moreover, key arguments on global verses local debate, marketing mix strategy
global marketing and different international market approach which helps the firm to improve
the profitability or productivity.

INTRODUCTION
International marketing is the use of various marketing principles in the international
market. This means it is a continuous process of making plans and actions related to the sale of a
product in the global market. The major motive of international marketing is to satisfy the needs
and wants of the potential customers present in the international market. It is concerned with
conducting the marketing activities is various parts of the world. International marketing is very
much different from domestic marketing (Bell, Bryman and Harley, 2018). This is because the
needs and preferences of both the market are very much different. Product and other strategies
related to it are also different. One of the major difference between domestic and international
market is local market involves less risk and uncertainty as compared to global market. If the
organisation wants to expand its business in the global market than it is essential for the
management to properly analyse the market, so that better plans are made for achieving the
targeted goals and objectives. It the organisation is not successful in doing this than changes of
failure in the new market will be increased (Broberg, Umans and Gerlofstig, 2013). There are
various factors which help the organisation in making plans and strategies related to the
functioning of international market. They are- availability of opportunities, chances of profit
maximisation, market demand and availability of customers. The organisation chosen for this
report is Rowlinson Knitwear which deals in school and corporate wear. Organisation is
currently operating in UK with the motive of satisfying the needs and demands of its customers
in the domestic market. The major topics covered in this report are scope of international market,
various market entry strategies and its pros and cons, and the international marketing approaches
which can be used by the organisation for achieving goals and target in the systematic manner.
TASK 1
1.1 The scope and key concepts of international marketing.
International marketing is concerned with planning and organising various marketing
activities related to marketing at the global level. It is very hard for the business organisations to
sustain in the international market for longer period of time if proper marketing plan is not made.
The concept of international marketing is different from domestic marketing and in this type of
marketing different plans and strategies are formed. It is the application of various marketing
principles in the international market. International market can either help the organisation in
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expanding and growing its business or can lead to loss because in such type of business various
kinds of risks are involved. The level of competition in such type of market is also very high
because there may be various other organisation which can be currently operating its business in
a particular market. International marketing is the capabilities and orientation of marketing to
international business (Brooks and Simkin, 2012). It is also the multinational process of making
various plans and actions related to pricing and promotion of the product in the international
market.
The scope of international marketing is very wide because there are various opportunities
present in this type of market. Rowlinson Knitwear can focus on making best use of the
available opportunities so that desirable outcome is achieved and the organisation is successful in
entering in the global market. The scope of international market is discussed mentioned below-
 Target market- International marketing focuses on targeting a particular market so that
proper amount of output is generated and the profitability is increased. The target market
for the international market is decided according to the availability of the customer’s and
their demand. The analyse for the market is done on the basis of current and past
demands of the market or of a particular area. If the organisation is not successful in
doing this than the plans for international market may not be used in the proeper manner
and the goals will also be affected.
 Market opportunities- There are various kinds of opportunities available in the
international market. It is the duty of the organisation to know those opportunities and
make plans accordingly (Cavusgil and Cavusgil, 2012). As these opportunities can
directly help in increasing the sale and profitability of the organisation. Opportunities in
the global market will give new and better ways to grow and expand the business in the
systematic manner. But along with the opportunities there are various kinds of risk
associated with global market.
 Increases brand image- International market directly helps various organisations in
increasing their brand image and reputation at the global market. This is because if the
organisation enters in the global market than more and more customer’s will be able to
know about the product and services of the organisation. It will be good opportunity for
Rowlinson Knitwear to expand its business because it will directly help in satisfying the
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needs of the customer’s and increasing the reputation of the organisation among the
potential customer’s.
Trend in international marketing
International marketing plays a major role in improving the business in the best possible
manner. Social media is one of the major trend in this type of marekting, as with the help of this
large number of customer's can be reached by the organisation. By using various tools of social
media organisations can easily reach to the potential customer's. The experience and satisfaction
level of customer's can also be increased by using this trend. As the improvement can be done in
the products and services of the organisation.
Difference between domestic and international marketing
Domestic marketing is concerned with covering a small market area while on the other
hand international marketing is related with covering large area of market. In the domestic
market the negative influence of change in government polices is less. While in international
marketing the influence is very high and wide. The needs and preferences of the customer's is
very much different in the domestic and international market. Organisations can easily interact
with the customer's of domestic marekt for knowing their views and ideas regarding product of
the organisation. While on the other hand it becomes difficult for the organisations to know the
views in the international market.
1.2 The rationale for the organisation and the routes to market the organisation.
Rationale for international marketing
Rowlinson Knitwear can enter in the international market for growing and expanding its business
in various parts of the world. The motive behind entering in the new market will be to satisfy the
need and demand of the customer's of a particular market. The customer's are demanding good
quality school and formal dress, so to satisfy such demands organisation can plan to expand its
business in the new market. As it is one of the biggest opportunity for the organisation.
The major purpose behind choosing a particular organisation and a market is there are wide
range of opportunities available in the market. Organisation continuously focuses on making new
and innovative plans for satisfying the needs of potential customers. One of the major purpose
behind choosing this organisation is management focuses on managing each and every activity in
the best possible manner. Main objective behind this is to increase the sale and profitability of
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the organisation in the best possible manner (Chung, 2010). Organisation is planning to expand
its business in various parts of the world. So management will focus on achieving this by making
proper plans after analysing each and every aspect in the coordinated manner.
There are various ways which can be used by the organisation for entering and conducting
business in the international market. Choosing the best route will help the organisation increasing
its profitability and sale in the best possible manner. Making decisions regarding the enter in the
global market can be done after analyse and evaluating the current market conditions in the
systematic manner. This will also help the management in competing with the competitors which
are already present in the international market. The various types of entry routes which can be
used by the management of Rowlinson Knitwear are discussed below-
 Exporting: It is the most traditional and well established form of operating in foreign
market. However, this strategy is defined as the marketing of goods produced in one
country to another. The type of export response is fully dependent on how the pressures
are perceived buy decision maker.
ADVANTAGES- It can directly help in increasing the market share by analysing the
opportunities of the market.
Disadvantage- It generally involves high degree of risk and uncertainties. Franchising: It is the practice of using another firm's successful business model as it
contain two main player i.e. franchisee and franchisor. In simple terms, it is a license in
which party (franchisee) acquires to allow them to have assess to a business (franchisor)
propitiatory knowledge, process and trademark in order to allow the franchisee to sell
product or service under the name of an organisation (Clarke, Tamaschke and Liesch,
2013).
 Joint venture: It is an enterprise in which two or more investors share ownership and
control over property rights and operation. This type of enterprise is best suitable when
the risk and uncertainties in the business is high . If the management of the organisation
choose to enter in the market using this method than risk and profit will be shared with
other investors.
Advantages- it can help in creating brand loyalty among the customer's of the organisation in the
international market.
Disadvantage- there is high uncertainties and risk in the market.
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 Fully owned manufacturing- organisation can perform its activities in a better manner if
business is fully owned in the international market. Such type of business generally deals
in promotion and production of goods in a particular market. This helps the organisations
in achieving long and short terms goals in the proper manner. As in this price and quality
of the product will be decided by Rowlinson Knitwear and other activities will also be
operated by the management of the organisation.
Advantages- It is considered as one of the biggest strategy for expanding the business in various
parts of the world.
Disadvantage- this strategy might not be suitable for facing challenges in the best possible
manner.
 Contractual Agreement- International marketing is also related with various agreements
and laws such as licensing and patent. These agreements help the organisation in
conducting various functions in a systematic manner. Contractual agreements also helps
firms in performing business activities without any legal restrictions.
Factors that influence international marketing decisions
Cultural dimension- Culture generally includes values and norms for the organisations to
conduct its business in the systematic manner. Culture can lead to proper functioning of the
organisation and achievement of the goals and target in the systematic manner. For expanding
the business in the international market organisation can involve the employees in the decision
making process. As this will help in knowing the exact need and preferences of the potential
customer's.
TASK 2
2.1 Importance of choosing right international market
Some of the importance of international market which helps the Rowlinson Knitwear to expand
their market share effectively is given below:
 Determining market demand and needs in target country or geographical region.
 Helps in evaluating the level of competition in order to survive in competitive world.
 Examining company's performance in country based on macro economic condition.
 Identify barriers or complexities of trade among market (Flick, ed., 2013).
 Helps in considering political risks for the betterment of firm's efficiency.
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 Enable the organisation to choose appropriate distribution channel in order to promote
product or services.
 Provide innovative technology and expertise or skill workforce for enhancing business
operation.
 Enable the firm to take in account of intellectual property protection.
 Allow the organisation to anticipate future market speculation for the convertibility of
currency in an effective manner.
 Helps the firm to determine legal environment and consequences in order to evaluate
legal implication.
Criteria and selection or international market selection criteria
Before making plans and strategies for choosing the right market organisation must
identify the viability in the systematic manner. This can include the social, political and working
conditions of various other factors. This attributes can help the management of the organisation
in taking vital and necessary decision for entering in the market.
Demand
Cultural differences
The importance of choosing right international market
Selecting the right market directly helps the organisation in expanding its business in the
best possible manner. As with the help of this better use of the opportunities can be done.
2.2 Selection process of international market
There are several steps which should be followed by company in order to enrich their
profit maximisation is described below:
Setting international marketing objectives: This is the initial step in selection process in
which company develop aims or objectives which guide them tom accomplish their goal in an
effective manner.
Factor for selection: In order to gain competitive advantage, an organisation evaluate
various selection basis like resources, degree of competition, internal and external environment,
government policies and regulation and many more.
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Preliminary screening: It is used to avoid unnecessary or inappropriate selection
parameter which allows them to save cost, time, energy (Gregurec, VRANEEVI and Damir,
2011).
Short listing of market: This step is based upon examining or analysing the market
scenario with the help of several techniques.
Evaluation and selection: In this pace, company can select or choose the market among
shortlisted list in which their short listing is valued through cost benefit analysis.
Test marketing: In order to survive for a longer period of time in market, firm should go
for testing their product in an industry which help them to gain exact scenario of demand or
needs towards product.
Commercial production: It is the final step in which firm develop its product mix in order
to reach to all their potential customer and by this they can gain competitive advantage
effectively or efficiently.
2.3 Opportunities and challenges
There are two major challenges which is not possible to avoid by company which is
described below:
Ethical consideration: International or global marketing plays a vital role in the growth of
economic as well development of company's productivity as it provide enormous opportunity to
company in order to enrich their market capabilities. Along with this , it is fully ethical based
business which is guided or directed by government policies and it allow them to achieve
organisational goal or objectives (Guerreiro, Rita and Trigueiros, 2015). On the other hand, it is
difficult for firm to maintain or handle any sort of negative impact in order to make fair decisions
without harming employees morale. For example, international marketing provide a means for
more profits and that is completely ethical in nature.
Legal perspective: Each and every company contains several legal aspects which should
be followed by them and it cannot be ignored in any condition. Along with this, it plays crucial
role in an organisation which help them to enhance their productivity and profitability at a
global level.
Opportunities and challenges
The global market consist of opportunities and challenges if the organisation wants to
expand its business in various parts of the world. With the help of opportunities ethical values
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can be taken into consideration. With the help of opportunities brand image of the organisation
can be increased and better competition to the competitors can be given.
Opportunities as brand equity
International market helps the organisation in enhancing and improving the brand image
in the best possible manner. As better brand value can be created among the customer's of the
organisation.
2.4 Risk management and contingency planning in relation to volatile markets
Risk management encompasses those activities or elements which include identification,
assessing, monitoring and controlling organisational profits and revenue. Along with this,
international marketing provides opportunities as well as challenges which cause difficulties in
market expansion. Moreover, risk is such a factor which impact business function significantly,
and it create the situation more worse and firm can run out of money in order to regain their
position among industry.
Contingency planning is sequence of action which allow company to make modification
in addressing challenging situation effectively. Along with this, it is regard as back up plan
which guides or monitor the company in achieving target market.
2.5 Market entry strategy
Any company or organisation exchanges its goods and services across national
boundaries for the satisfaction of human needs and wants which is considered as international
marketing (Hinz and et. al., 2011). Despite the great benefit of local marketing, international
marketing has the ability to open up more doors for business and thus it create better opportunity
for company's expansion as well as broadening customer base. Along with this, new platforms
enable the company to create new relationship with several businesses across the globe. When an
organisation thinks globally, it looks for overseas opportunities to increase its market share and
customer base. International or global marketing allow the marketing managers to look for
growing target market and product opportunity overseas. However, Rowlinson Knitwear is best
known for knitwear in UK. As it's business is growing effectively which provide them various
chances or possibility to expand their operation globally. In order to enhance productivity and
profitability, there are different market entry strategy which Rowlinson Knitwear can imply to
enter in international market (Le Meunier-FitzHugh and Lane, 2013). Market entry strategy is
the planned method of delivering goods and services to target market and distributing them in a
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potential or possible location in order to reach high proficiency. The market entry strategy which
Rowlinson Knitwear can imply is mentioned below:
Counter Trade : It is considered as largest indirect method of exporting. It is define as
exchanging goods or services which are paid for, in whole or part, with other goods or services
rather than money as well as it give a basis for reciprocal trade.
Advantages
 It's main attraction is that it enable firm a way to finance export when other means are not
available.
 It facilitates conservation of foreign currency and it increase employment better capacity
in utilization ans ease of entry into challenging market.
Disadvantages
 The value proposition may be uncertain especially in cases where goods being exchanged
have significantly price volatility.
 It include complex negotiation, potentially higher costs and logistical issues.
Mergers and acquisition: This strategy is mainly regarded as an expansion tool as well
as it is a powerful driver of globalisation. However, it is defined as integration of companies as
merger is the combination of two firms in order to form one, whereas acquisition is one company
taken over by others (.Lee and Carter, 2011).
Advantage
 It allows the shareholders of smaller entities to own a smaller piece of a larger pie,
increasing their overall net worth.
 It enable the organisation to adapt innovative or latest technology for enhancing their
profitability and wealth maximisation.
Disadvantage
 Some of the units acquired would have some problems such as old plant, obsolete
technology, surplus or demoralised labor.
 The firm may not have the experience and expertise to manage the unit taken over if it is
an entirely new field.
Contract manufacturing:It is regarded as common practice in an international business.
A company doping global marketing contacts with firms in foreign countries to manufacture or
assemble products while retaining responsibility of trading product.
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