International Marketing Report: Sannies' Strategy for European Market

This report analyzes Sannies, a Scottish-based shoe company, as it plans to enter the European market. It discusses branding issues, product adaptation, pricing challenges including increased costs and fluctuating exchange rates due to events like Brexit and the Covid-19 pandemic. The report also covers distribution logistics in Eastern Europe, comparing online presence advantages to opening flagship stores. Finally, it evaluates promotional options like expanding the sales team and using digital influencers, ultimately recommending an additional promotional method for the firm's consideration. This document is available on Desklib, a platform offering study tools and solved assignments for students.

International
marketing

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Product.............................................................................................................................................3
Branding issues will the firm have to deal with before entering any European market.........3
Elements of the product will need to be adapted for European markets................................4
Price.................................................................................................................................................4
What increased costs will the company face should they decide to develop their presence in a
particular country?..................................................................................................................4
What pricing issues will the firm have to address .................................................................5
Distribution......................................................................................................................................6
What logistical issues would the firm have to consider should they decide to enter an
emerging market in Eastern Europe.......................................................................................6
What are the advantages of developing their online presence compared to opening a flagship
store........................................................................................................................................6
Communication................................................................................................................................7
Advantages and disadvantages of the three promotional options..........................................7
Which other promotional method would you recommend to the firm, outline your reasons for
this choice...............................................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
International marketing is defined as the wide application of marketing principles that is
related to satisfy needs and demands of customers residing in different countries. It is related to
trading goods and services across national boundaries. It is very important for bringing countries
closer and construct economic and commercial activities that provides benefits to participants
countries. In this report chosen organisation is Sannies which as family owned, Scottish-based
organisation that deals in high-quality fashionable shoes for women. Turnover of organisation is
approx 30 million Euro per year which is majorly earned from UK and Ireland. This report
covers various issues that are faced by the organisation regarding product, price, communication
and distribution before entering in European market. Furthermore, business activities and actions
for handling these issues are mentioned in this project report.
TASK
Product
Branding issues will the firm have to deal with before entering any European market
Branding is the procedure of which companies use for making people aware about their
business. It is very important for companies to maintain their brand image among people as it
helps them in enhancing their customer base. It reflects culture of the companies such as their
service styles, staff uniforms, marketing strategies and others (Iovino and Migliaccio, 2020). The
branding issues are related to the challenges which a company could face in the market while
expanding its business. In context to the Sannies, the branding issue it could face while entering
in the European market are described below in detail:
Limited Product range:
The selected company offers very selected product range which is also based on Scottish
culture that might not help in attracting many customers in Europe. In the country customers did
not know the company from its brand name which could also impact negatively on the branding
of company. The customers of the country could be highly demanding for quality product which
the company will not be able to provide.
Highly Competitive Market:
The market of the Europe is very much competitive which could impact the business of
the company. As there are already established shoe companies in the market which could

influence the marketing of the selected company. As the directors of the selected company does
not possess any experience and knowledge about international marketing which could negatively
impact on the functioning of organisation (Chen and et. al., 2021). The market traders mostly
prefer Italian and French brands in the market which arise the concern of the directors of selected
organisation that their Scottish heritage might not be considered as strong selling point in the
market of Europe.
Elements of the product will need to be adapted for European markets
There are various elements which the selected company needs to execute in order to
successfully enter the market of Europe. Here are some provided some elements which the
company needs to update:
Enhance Product range:
The selected company is required to update its product range in order to increase the base
of its customers. The company needs to introduce range of products other than Scottish culture
so that they could attract more customer towards it brand. The products range must include men,
women and kids shoes so that people could increase their interest in the company.
Considering other culture:
The company needs to diversify its culture other than Scottish such as it has to modify
them according to French, Italian, Germany or Spain. The selected company must follow the
culture of these counties so that it can grab the attention of their people (Steenkamp, 2020). This
will also help the company in understanding the needs and demands of their people and will
design the product according to them.
Price
What increased costs will the company face should they decide to develop their presence in a
particular country?
As Sannies organisation decides to provides its products and services in the emerging market of
Europe such as Belarus, Moldova and Latvia. There are various factors that enhances overall cost
of organisation to enhance its presence in particular market segment. Invest in quality of products: Consumers in emerging segment of Europe country
demands for quality, stylish as well as value for money products rather hand having the
behaviour of price-sensitive (Ibrahim and Harrison, 2020). Sannies should invest in

products in order to improve their qualities that can satisfy needs and demands of
particular segment.
 Invent is communication marketing: Budget of Sannies organisation is lower than other
independent shoe organisation that impacts business performance and its awareness in
emerging European markets. Organisation invest its funds up to 5,00,000 Euro over 12
months for promoting organisational products and services that enhances overall cost of
organisation.
 Some other situations such as pandemic, implications of Brexit and volatile political
changes that enhance uncertainty in financial market and led it towards fluctuations in
exchange rates that enhances overall cost of organisation to operate on emerging market
place.
What pricing issues will the firm have to address
As there are various situations are raised such as pandemic of Covid-19, implications of
Brexit as well as political conditions of country are changing regularly which are responsible for
developing uncertainty in financial market and create fluctuation in country's fluctuation rate
which also have serious and major impact on pricing policies of Sannies organisation. Respective
organisation should develop effective strategy for reducing these issues and run business in
efficient manner (Nwankwo and Kanyangale, 2020). Furthermore, organisation concentrates on
the investment of promotions that directly impacts on business performance and profitability.
Sannies organisation should decide to enter in emerging market place which includes
various countries of Eastern Europe such as Belarus, Moldova and Latvia that posses low. As in
these countries low competition is exist that helps business to attain the objective of growth and
development. Organisation invest in promotional and marketing activities in these countries that
facilitates organisation to attain higher market share and customer base. In emerging market less
substituted are available in market that help business to attain competitive advantage through
launching new product according to needs and demands of customers of specific country.

Distribution
What logistical issues would the firm have to consider should they decide to enter an emerging
market in Eastern Europe
International logistics is defined as the process that is related to planning, organising as well as
managing the flow of products and service in organisational supply chain from acquisition to the
point of consumer purchase where part of process which involves at least one international
boundaries. There are various logistical issues or problems are faced by the Sannies organisation
to entering in emerging market in eastern Europe are mentioned below:
Government regulations and political conditions: There are various laws and regulations
are imposed by the central, state and local authority of organisation that are related to
transportation rules as well as political conditions impacts on business performance in the market
of emerging market.
Transportation cost: There are various factors such as high fuel prices, increased wages
and peaking inflation indexes together enhances the prices of transportation (Parvatiyar and
Sisodia, 2019). It is the issue related to logistics that are faced by the Sannies in The market of
Europe.
Trade war: As per trade war between country, trade tariffs are enhances that force
business to adopt intra-regional flow of goods. It is the most forceful logistical issue that create
hurdle in global growth of organisation in the emerging market of Europe.
What are the advantages of developing their online presence compared to opening a flagship
store
Online presence is defined as the activity as well as content that an entity, person and business
conducts their operations on the internet. It facilitates business to attract large customer base and
attain higher market share. Building and maintaining effective and strong online presence in very
important part of organisational marketing process. On the other hand, opening a flagship store is
defined as the opening business stores in its primary location. There are some advantages of
developing online presence rather than opening a flagship store are mentioned below:
Larger customer base: Online presence of organisation facilitates it to reach larger
audience. As now these days millions of customers are using websites so having profile on these
sites and social media channels helps business to reaching potential customer base world wide

rather than opening a flagship store which has limited reach (Jaisinghani and Kanjilal, 2019).
Sannies maintains its online presence through promoting its products and service on digital
platforms and social media channels.
Create trust: Online presence builds trust among customers and they feel comfortable to
deal with organisation. As in current environment, customers do quick online search to see that
organisation is legitimate or not. On the other hand, if organisation online conducts business
under its flagship stores or customers do not find anything about them that they assume that
business is not professional.
Hour availability: If business has online presence than it can serve its products and
services to customers 24/7. It enables customers to find products and services at any time as well
as from any location. It is most important advantages that business gain due to having online
presence over opening a flagship store because it can be opened for limited hours.
Brand building: Having string online presence is the factor that allows brand to develop
effective image in market and gain credibility that attracts huge number of customers. It enables
customers to search and gain information about organisational and its offerings that enhances
organisational sales. So, having online presence is most beneficial for organisation than opening
flagship store in Europe.
Communication
Advantages and disadvantages of the three promotional options
Expanded sales team: Now these day, organisation expands its sale team for the purpose of
concentrating on specific segment or targeted customers base. Marketers focus on market as well
as audience research to understand target audience if doing for resolving their challenges and
pain points (Tiwari and Korneliussen, 2018). Marketing director of Sannies organisation invest
money in building sales team in order to concentrate on particular countries customers that help
business to enhance sales and profitability.
Advantages of Expanded sales team:
 Sales team helps business to maintain strong relationship with customers and enhance
their engagement rate. It enables business to stay in competition through attracts large
customer base.

 Expanded sales team concentrates on target customers that help business to attain the
objective of higher sales and get clear and better feedbacks from customer business as
well as resolve them properly.
Disadvantage of Expanded sales team:
Digital influencer: Digital influencer is defined the most effective way of marketing which is
related to digital media content creator who uses media platform for the purpose of influencing
or persuading behaviour of customers through both online as well as offline mode. It includes
various internet celebrities, social media marketing, influencer marketing and virtual influencer.
Influencer marketing is the form of social media marketing on which someone encourage fans
and followers to take actions for purchasing organisational products and services (Njinyah,
2018). Sannies organisation appoints popular female digital influencer to promote organisational
fashionable shoes to women. Organisation also make her the face of organisation so, she
promoted products on her social media accounts as well.
Advantages of digital influencer marketing:
 Immediate results: Digital influence marketing bring immediate result to organisation and
enhances trust as well as credibility among customers. This form of marketing
concentrates on relevant audience that help business to reach message to the people who
are interested in shoes products. It reaches large audience: As influencer can command large number of followers at social
media platform that enables business to enhance customer base and market share.
Through using this marketing, business can tap in to new and larger market place through
developing demand of its products of fashionable shoes.
Disadvantages of digital influence marketing:
 For organisation, it is not easy to find right influencer. Organisation need to match
influencer with relevant customers. It takes lot of time to as well as efforts to launch
marketing campaign that enhances overall cost of organisation. As influencer marketing is new in market so, it is quite risky for organisation. If
organisation got wrong influencer than it waste business time, resources and efforts that
impacts brand reputation in market.
Sponsorship: Sponsorship is defined as the act that is related to the support event , activity,
people as well as organisation financially or by the provision of products and services. The

individual or group members that provides support are considered as the Spencer. The idea of
sponsorship maintains effective relationship of organisation with its customers (Paul, 2019). It is
adopted by the organisation promote organisational products and services. Sannies organisation
Spencer its products is television programmes in which it targets to potential target market for
enhancing business sales.
Advantages of Sponsorship:
 Build awareness: Sponsorship is the positive way to build awareness regarding brand and
end enhance positive association of organisation with wider audience. Consolidate expertise: Sponsor are aligned with organisational goals and values that help
business to maintain its positioning as an expert in its field. It help business to influence
target audience and persuade them to purchase organisational products.
Disadvantage of Sponsorship:
 No guaranteed returns: In Sponsorship no guaranteed return on investment that affect
business overall performance and profitability.
 Sponsorship impacts business through losing creditability and control on business
operations due to involvement of sponsors in business decision-making.
Which other promotional method would you recommend to the firm, outline your reasons for
this choice.
It is recommended to Sannies organisation to adopt free sampling sales coupon and
promotion method to enhance sales in specific market segment. As respective organisation want
to expand its business operations in European countries so, through providing free sample its can
create interest of local customers towards products and shoes and spread awareness.
Organisational should provide free samples, coupon and conduct promotions activities in
targeted market segment that help business to enhances the ratio of sales and profitability
(Krasyuk, Yanenko and Nazarova, 2020). As organisation deals in female shoes so the
marketing strategy of providing coupons and discounts attract customers even in new market
segment.
It is beneficial for organisation to raise brand awareness as well as ensure organisational
reach towards potential target audience. Through sampling marketing method, target customers
can use the product in actual that maintains effective relationship with employees and builds trust
(Bae, 2018). Organisation provides various offers to customers such as coupons and discounts

and conducts promotional campaigns that attracts huge customer base towards organisational
products and services.
CONCLUSION
As per the above report, it can be concluded that international marketing is the concept
that includes various activities designed to plan, price, promote as well as direct the flow of
organisational product and service to consumers of different countries for the purpose of
attaining the objective of profitability. In the process of internationalising business activities,
various challenges and issues are faced by the organisation related to branding, pricing,
distribution and promotions. Organisation develop various strategies and planning to resolve
these issues that lead business towards growth and development in international market.

REFERENCES
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