Sannies' European Expansion: International Marketing Challenges

This report provides a comprehensive analysis of the international marketing issues faced by Sannies, a Scottish-based women's shoe manufacturer, as it considers expanding into the European market. The report identifies branding challenges such as low awareness, weak online presence, and inaccurate brand perception, and suggests adapting product elements like quality and diversification to meet European customer preferences. Pricing issues are examined, considering increased costs in competitive markets like France and the need for varied pricing strategies in mature Western European versus emerging Eastern European markets. Logistical considerations for Eastern Europe, including customer service, transportation costs, and government regulations, are discussed. The report also contrasts the advantages of developing an online presence versus opening a flagship store and evaluates the pros and cons of various promotional options, offering recommendations for Sannies' successful European market entry.

International
Marketing

Table of Contents
INTRODUCTION............................................................................................................................4
MAIN BODY...................................................................................................................................4
COMPANY OVERVIEW...............................................................................................................4
International marketing issues based on the product.......................................................................4
Branding issues that need to be considered before entering any European market....................4
Elements of the products that will require adaptation for European market................................6
International marketing issues relative to the price of the product..................................................7
What increased costs will the company face should they decide to develop their presence in a
particular country.........................................................................................................................7
What pricing issues will the company face when entering a mature western European market
and an emerging Eastern European market..................................................................................8
International marketing issues related to distribution and logistics.................................................8
What logistical issues would the firm have to consider should they decide to enter an emerging
market in Eastern Europe.............................................................................................................8
What are the advantages of developing their online presence compared to opening a flagship
store..............................................................................................................................................8
International marketing issues related to promotion .......................................................................8
Discussing the advantages and disadvantages of promotional options........................................8
Recommending other suitable promotional options.....................................................................8

INTRODUCTION
International marketing refers to the application of marketing principles in order to satisfy
the various needs and wants of different individual people across the nation borders. The
international marketing consists of marketing activities in more than one nation and also referred
as global marketing. It involves marketing mix relive to the worldwide aspect and customizing
according the taste and preferences of different national people for the following report Sannies
is taken into consideration which is a family owned, Scottish-based producers of high-quality
fashion shoes for women. The company has been functioning for over 70 years and has a
turnover of £30 million. The following report will consist of the issues the company can face
when entering into the European market along with the increase in their product cost. Moreover,
logistic issues and advantages of online presences. Furthermore, overall advantages and
disadvantage of expanded sales team, digital influencer and sponsorship.
MAIN BODY
COMPANY OVERVIEW
The Sannies is a family-owned business with Scottish roots and producers high-quality
shoes for women. The company has been functioning for over 70 years and has a turnover of £30
million with majority of their revenue from the UK and Ireland. The small amount of sales are
acquired from the direct sales to customers who have moved abroad and are unable to purchase
the shoes in their new country. The sales of the company have been stagnant for the past 3 years
and their UK sales are based on 85% from direct retailers and 15% from their own shop in
Edinburg and Glasgow. Given below are the suitable approaches for the board members to assist
them with their transition into the European market.
International marketing issues based on the product
Branding issues that need to be considered before entering any European market
There are various issues an organization can face when entering a new market. These
issues can vary and have major impacts on the functioning of the business (Albert, 2021). These
issues not only reduce the profitability of the company but have a negative impact on the
organization market share as well. In context of Sannies the company is planning to enter the

new European market and introduce its product to the potential customers. Given below are the
various branding issues the company will face before entering the new market:
Low level of awareness:
The company has a low level of awareness among European customers and has
low level of engagement. This has caused the company to have an ineffective awareness levels.
This is a major issue relative to the brand of the company while entering the new market. It is
necessary for the company to focuses on altering its brand image in order to increase the brand
awareness which would increase the level of its success in the new ventured market (Belk,
2020). The company needs to utilize the experts in the trade to spread the work about the
company and its plan to enter the new market which can help in increasing the brands awareness
among potential customers.
Low level of online presence:
The company before entering any European market will be required to establish
its online presence in an effective manner. This is crucial for the company as it will ensure that
their brand is able to reach a wider amount if customers in an effective and cost reduced way.
Moreover, it will allow the company to expand its online reach relative to its customers. The
company can focus on utilizing their slogan ‘a guid shoe ye ken’ along with their character
‘Shuggie’ in their online store to ensure that people are able to recognize their brand even before
they enter the market.
Inaccurate brand perception:
The company will face several issues related to its brand before entering the
European market as it has a negative brand image relative to customer’s perception as the
company’s products are seen as low-mid-range. The inaccurate perception of the brand will
cause company issues such as low level of customer engagement, decreased market share along
with high level of failure (Galić, 2019). The perception of the brand needs to be altered in order
to be perceived as an high-quality women shoe manufacturer which will increase the changes of
company to be successful in the new market.
Adapting to trends:

The company will need to understand and determine the dynamic trends and
preference of the market element in developing a strong brand reputation. It is crucial for the
company to be aware of the changing trends as they are the key points in order to be successful
in any new international market (Gupta, Pansari and Kumar, 2018).
Elements of the products that will require adaptation for European market
It is crucial for an organization to focus on its current and future products and service
before entering a new market as the company needs to identify and determine the needs and
preferences of the customers in the region. This enables the company to have a better chance of
success in acquiring larger market share and high profits. In context of Sannies, given below are
the elements of the product which will require modification for the European market:
Quality of products:
The company will require offering its customers high-quality of products when
entering the new market. This will ensure that the level of customer satisfaction is high which
will result in increase in the overall brand value. This helps the company to increase not only its
overall market share but its profitability as well.
Product diversification:
It is crucial for the company to expand its line of products when entering the new
European market. The company only consists of three major brands in the company which is
Gallus, Jings and Blether. It is vital for the business to expand its line of brands along with
products when entering the new market as it will allow the company to cater to the needs of a
wider range of customers with different taste and preference. This will result in higher level of
profitability and expansion of customer base (Hasan,).
Customer oriented products:
It is vital for the company to develop products that are customer oriented and based on
their taste and preference. They also need to focus on market research in order to understand its
customers effectively. It is important for the business to understand its competitors and what they
offer to their customers. This will allow the company to develop products that will be accepted
by customers and ensure generating higher level of profits along with increased customer base.

International marketing issues relative to the price of the product
What increased costs will the company face should they decide to develop their presence
in a particular country
The company will face various issue regarding the price of their products when entering
the new market. This can have a negative impact on the operations of the business and its overall
brand image (Hübner and et. al., 2019). Given below are the increase in prices the company will
have to encounter if the enter into the market of France:
Developing higher-quality products:
The company and its board of directs will have to focus on enhancing their quality of
products when entering a market such as France. This is due to high level of competitiveness
from similar brands. The customers in France are focuses on the quality of the products thus
making it crucial for the company to pay emphasis on the quality of its products in order to
attract the french customers.
Being price-sensitive:
The customers in France not only focus on the quality of the products but are price
sensitive as well. This will be a crucial aspect for the company as it will not only have to focus
on increasing the quality of their products but price them relatively close to their competitors in
the french market in order to survive.
Development of larger variety of products:
The company can see a hike in their overall price of its products if it chooses to expand
its line of products which is vital if it wants to compete with the well established companies in
the french market (Iwu-James, Haliso and Ifijeh, 2020). The new development of products can
increase the price of raw material and workforce resulting in increased product price which can
negatively impact the company.

What pricing issues will the company face when entering a mature western European market and
an emerging Eastern European market
There are various issues the company will have to face if it decides to enter either the
mature western European market or an emerging Eastern European market. Given below are the
various pricing issues relative to both the markets:
Mature western European Market:
The company will face various pricing issues in their products when entering the market
of France, Monaco and Belgium as they would have to expand their line of products to meet the
consumer demand of the specific market. This will significantly increase their overall price of
products as they would need to competitive with already established brands with higher level of
market share (Kolo and Haumer, 2018).
Emerging Eastern European Market:
The company will face the issue of pricing their products relatively low to mid range if
they choose to enter the market of Bulgaria, Czech Republic and Hungary. This is due to the
customers in the region being highly price sensitive when it comes to selecting products. This
can be a major issues for the company as it can face financial losses relative to low product
prices and less customer demand in the east European market.
International marketing issues related to distribution and logistics
What logistical issues would the firm have to consider should they decide to enter an emerging
market in Eastern Europe
There are various logistical issues the company will face when its enters the emerging
market in eastern Europe. Some of these issues are mentioned below:
Customer service:
The company when entering the eastern European market will have to consider that their
customer services is not hindered as it is a crucial aspect of their company to deliver high level of
customer satisfaction.
Transportation cost:

It is important that the board members take the transportation of goods into account when
entering the new market as high rates of transportation have negative impact on the financial
resources of the company.
Planning & risk management:
The company must understand the risk involved when transporting goods in the new
region and make effective plans for unseen scenarios such as theft or damaging of good while
transportation to minimize losses (Messner, 2020).
Suppliers:
The company will encounter the issue of determining a suitable supplier for their
business. This is crucial if the company wants to effectively introduce their products in the new
market.
Government regulations:
The company will encounter various issues such as taxes, and changes relative to logistic
in the new region along with government policies which can have a huge impact on their logistic
operations.
What are the advantages of developing their online presence compared to opening a flagship
store
In the modern-era there are various advantages an organization can gain by effectively
utilizing the internet to expand their online presence. This new method of promotion and
distribution has limited the need for flagship stores of various business (Tomczak, Reinecke and
Kuss, 2018). Given below are the advantages Sannies can gain if they focuses on developing
their online presence rather than flagship stores:
Easy access to the market:
The online presence will allow the company to access the market more effectively when
compared to flagship store due to its wider reach of customer base.
Reduced overheads:
Selling products online will enable the company to reduce expensive flagship premises
and staff requirements leading to higher levels of profitability.
Potential for growth:

The online presence will allow the company to introduce growth in its sales and business
when compared to flagship store as it is much more effective in attracting customers relative to
tradition distribution.
Wider market/export:
The effective online presence will allow the business the ability to expand its market
beyond the local customers which is not possible my flagship stores.
Customer intelligence:
The online presence will provide the company with valuable data on customers regarding
their taste and preferences which cannot be attained through flagship stores.
International marketing issues related to promotion
Discussing the advantages and disadvantages of promotional options
It is crucial for an organization to have effective promotion in order to introduce their
products in the market in an effective manner. It allows the business to show customers what
products they have to offer and at what price range (Minculete and Olar, 2018). Given below are
the advantages and disadvantages of promotional options in context to Sannies:
Expanding sales team:
The sales team of an organization not only help in increasing revenue but also enable a
business to build its brand reputation. This makes expansion of sales team vital for Sannies
although this form of promotion has its own advantages and disadvantage which are mentioned
below:
Advantages:
 Expanding a sales team will provide better quality lead for sales which will increase
profitability.
 the expansion will promote higher level of customer and business engagement leading to
higher brand awareness.
 It helps in establishing an accurate buyer perception
 The expanded sales team will be able to gather better and enhanced customer feedback
Disadvantage:

 Expanding of sale team will require high level of cost due to hiring process.
 There are high chances of conflicts between cross sales department leading to low
productivity Ineffective management can lead to low levels of sales performance
Digital influencer:
The Sannies has been approached by an digital influencer and will provide high level of
promotional befits to the company through social media (Rimmer and Kam, 2018). Although an
effective way of promotion it does have its overall disadvantages which are mentioned below:
Advantages:
 the digital influencer can assist to gain customers trust especially in the new market.
 The correct influencer has the ability to addressing the right audience
 Effective promotion of products through social media
Disadvantage:
 Established digital influences require high fee charges for promotion.
 There is uncertainty of results the company cannot accurately measuring the performance of the digital influencer.
Sponsorship:
It is an important form of promotion which will allow Sannies not not only gain a value
partner for their company but also boost the promotion of their products in an effective manner.
Advantages:
 Sponsorship enables a business to effective build brand and product awareness
 The sponsors provide valuable expertise to the company relative to its products and
brand.
 It is an excellent tool for targeting customers
Disadvantage:
 there can be a Conflict in vision of sponsors and the company negatively impact the goal
of promotion.

 The sponsorship offers low level of guaranteed returns
 This form of promotion usually has poor conversion rate
Recommending other suitable promotional options
There are various other methods of promotion that can be valuable to the organization
and enable it to promote its products in the new market (Seibel, 2021). Some of these methods
are mentioned below:
Social media:
The company can establish its only social media account rather than using an digital
influencer as it will save them their financial resources and still assist them to effectively
promote their products to its customers.
Online advertisement:
The organization can use online adverting as it is an cost effective and highly customer
attracting tool to promote products relative to aspects such as a sales team.
Organization website:
The company should enhance its own website in order to effectively understand its
customer through feedback and effectively develop and promote its products. This form of
promotional technique is also cost effective.
CONCLUSION
From the above report is has been concluded that, the company should focus on initially
improving its brand image as a high-quality producers of products due to the needs of European
market customers being oriented towards quality products. Moreover, it should also evaluate the
price of its products and keep them appropriate in order to expand their customer base in the new
market. In addition to this the company should focus on identifying and reliable supplier of their
products in the new region along with utilizing online promotional techniques in order to ensure
high level of success in the new market.
REFERENCES
Books & Journals:

Albert Lasuin, C., 2021. The Stages of Economic Development in Global and International
Marketing Perspectives: The Colourful Harmonious World History of Micro and
Macroenvironment of A Firm.
Belk, R., 2020. Cultures, consumers, and corporations. In Marketing Management (pp. 17-32).
Routledge.
Galić, M., 2019. Marketing mix u turizmu (Doctoral dissertation, College of Slavonski Brod.
Social Department.).
Gupta, S., Pansari, A. and Kumar, V., 2018. Global customer engagement. Journal of
International Marketing, 26(1). pp.4-29.
Hasan, A., Consumer Behavior dan Marketing Mix. Bina Ekonomi, 9(1). p.12996.
Hübner and et. al., 2019. Distribution in omnichannel grocery retailing: An analysis of concepts
realized. In Operations in an Omnichannel World (pp. 283-310). Springer, Cham.
Iwu-James, J., Haliso, Y. and Ifijeh, G., 2020. Leveraging competitive intelligence for successful
marketing of academic library services. New Review of Academic Librarianship, 26(1).
pp.151-164.
Kolo, C. and Haumer, F., 2018. Social media celebrities as influencers in brand communication:
An empirical study on influencer content, its advertising relevance and audience
expectations. Journal of Digital & Social Media Marketing, 6(3). pp.273-282.
Messner, W., 2020. Value or quality? Differences in airlines’ customer satisfaction strategies
across national markets. Services Marketing Quarterly, 41(3). pp.205-235.
Minculete, G. and Olar, P., 2018. RELATIONAL APPROACHES TO THE DIGITAL
MARKETING MIX. In International Scientific Conference" Strategies XXI" (Vol. 2. pp.
13-19). " Carol I" National Defence University.
Rimmer, P.J. and Kam, B.H., 2018. Consumer logistics 1.0: Surfing the Digital Wave. Edward
Elgar Publishing.
Seibel, G., 2021. The impact of influencer marketing on destination choice: A quantitative study
among Brazilian and German millennials. RCMOS-Revista Científica Multidisciplinar O
Saber, 3(3).
Tomczak, T., Reinecke, S. and Kuss, A., 2018. Planning the marketing mix. In Strategic
marketing (pp. 171-221). Springer Gabler, Wiesbaden.