European Market Entry: International Marketing for Sannies

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This report provides an international marketing assessment for Sannies, a Scottish fashion shoe company, as it considers entering the European market. It addresses key branding issues Sannies may face, such as market similarity and lack of awareness, and suggests strategies like creating catchy lines and solidifying the brand foundation. The report also discusses essential adaptations for the European market, including adopting trending styles, offering limited edition products, and adding a sports product line. It analyzes the effects of increased costs on the company, such as enhanced market competitiveness and revenue generation, while also exploring pricing issues in both mature Western European and emerging Eastern European markets. Logistical challenges in Eastern Europe, such as establishing strong trading points and managing transportation costs, are examined, along with the advantages of developing an online presence versus opening a flagship store. The report emphasizes the importance of adapting to market trends and addressing logistical hurdles for successful international expansion.
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International Marketing
Assessment
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1
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INTRODUCTION
International marketing assessment is used by companies to research and analyse
international markets to develop their business. This assessment helps to figure out business
environment, opportunities, threats, supply chain and customers in international market.
Assessment supports companies to take decision towards their globalization, it smooths process
for company to list in international market.
For elaborate this report, organization can be chosen as Sannies. It is based in Scotland
and make high-quality fashion shoes for females (Labrecque, Markos and Milne, 2011).
Company had experience of more than 70 years and there market based mainly in UK & Ireland.
In this report international marketing strategies will cover along with branding and
pricing strategies. It will also cover distribution process and channel, advantages of flagship and
marketing and promotional activities that influences international market.
MAIN BODY
Q.1 Branding issues will firm have to deal with before entering any European market ?
Branding is the process in which company gives name, title and special identity to their
product or service, which helps customer to differ it from competitor's product or service.
Branding makes easier to customer to identify respective brand among market.
In market good reputed brands faced several issues that are other companies copied their name,
style and make similar logo to confuse customer. As Sannies will face some branding issues that
are discussed in below:-
Similarity in Market:- As company received information from a retailer that there are
other companies which are delivering similar product with similar name to brand. It leads
to generate confusion among consumer about product (Bonakdar and Audirac, 2020). So,
company should also change or creatively make some changes to attract their targeted
segments. As company's specific target is female gender group, so company make some
changes in their branding which easily attracts their targeted segment in European
market.
Lack of awareness:- In the European market customers are not well-known by company's
brand, so it is an issue for the company. Company should focus on spreading awareness
about their brand in market, due to when consumer get connected through their brand
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they get engaged with their product. It is necessary to focused on to generate awareness
for their brand, add some catchy lines or more attractive logo which is related to targeted
market these all strategies will help company to defend branding issues. Company should
focus on to convey their vision, mission and objectives through creating awareness about
their brand.
Branding foundation:- Brand making is similar to build any infrastructure, it strongly
stands through strong foundation. Company should focus on to foundation to solidify
their position in the upcoming market with great strategies (Van Geert, 2019). When
company will focus on to proper process from basic foundation it makes easier to
customer to differentiate from others it also leads to proper branding which connected to
their product.
Create catchy lines:- In the market they create catchy line which grabs attention of
consumer and grabs more country, because it creates easier to identify that product due to
support of catchy lines. Company have ordinary brand line as 'a good shoe, you know,' if
company should make some changes in their slogan, because it is very ordinary and
common. Present brand slogan is not that much powerful which differ it from other and
easier to identify.
Q.2 Adaptation that are essential in European market
Sannies company is dealer of the fashionable and attractive shoes of women, they are
delivering products in low-mid-range with quality. There targeted segment is not price-sensitive,
they want quality product with trending styles and fashion. There are some points that are
supporting adaptation of elements for product in European market to strengthen market position
of the company, that are :-
Adopt trending styles:- In this world customer attracts towards trending styles of product
and like to purchase that product. Company should adopt new trendy styles and
fashionable trends in their shoe making, without shoes grooming is incomplete when
company delivering new unique trendy styles, so there are more chances to stand in the
European market. Their targeted segment is more focused on to new fashionable trends, it
is an essential element that company should add, it generates more profit for the company
in the European market.
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Limited & Unique product:- In market, it will lead customer attraction for the company when
they deliver limited product but with some unique feature either it is more fashionable or giving
more comfort, whatever it may be but some unique features give support in sales of product.
Company already delivering quality product with less pricing, limited edition shoes are work as
emerging USP in the new market. Limited edition products generates competition amongst both
consumer and competitors, customers start waiting for company's next product and competitor
are trying to adopt that new change which more rapidly attracting customers (Femminella,
Pergolesi and Reali, 2018).
Add sports product:- After pandemic people are become more health conscious, and
focus on to their personal health, where company selling fashionable foot wear for
women if they will add sports product line for their customers, it supports company to
hold their position in the market. Customer are shift towards active lifestyle and focused
on to physical activities, for all these activities demand of sports shoes is rapidly
increasing and it is perfect time for the company as new entrant in the market.
Q.3 Increased costs effects on the company
Company delivering different types of ranges for their product with different price.
Company want to focus on more quality product for their company, for that company will
increase their prices on the initial level to compete in market. Increase cost will lead many
effects on the company, there are some of them following effects:-
Compete in market:- Company entering into in the new market as new entrant, with
increases price it helps the organization to compete effectively from present competitors.
In new market company is not aware about price-sensitivity of their customers or targeted
segments with increases price of their product they get collect some revenue to balance
that losses or risk. Company should not comprise with their quality they should try to
deliver more qualitative product because they are increases their prices.
Earn more Revenue & Profit- It is perfect time for the company to earn more revenue and
profit. Company can deliver their products at initial level without fear of market forces,
so they can just sell their product according to their set prices. Targeted segment of
company is not price-sensitive they are focused on new trendy, stylish and quality
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footwear which make them different from others. Company will hold handsome amount
of profit through use their new entrant image.
Motivates to improve quality:- Increases prices give leads to more qualitative products,
company's margin of profit get increases with increases prices, so company should expend more
on quality of products. Qualitative product supports to higher prices of the product because
customer admire product on which they are spending comparatively higher than other similar
product. Company pays more attention on quality department as well due to both of these factors
effect company's reputation and generates good will in the new market for the company (Mandal,
2021).
Q.4 Pricing issues for the company. a) mature western European market. b) an emerging
European market.
In market there are many forces which influence prices of products such as inflation,
wage, cost of labour, transportation & other related factors that makes pricing issues for the
company. In context of Sannies, there are so many factors that are influencing pricing for
company.
a) Mature Western European market:- Mature market term used to explain the country, region
and area with stagnant population and low economic developing graph. Western European
market consider as mature market, both are stable in this population and economic growth. In
this mature market countries of Western Europe are Italy, France, Spain, Germany, the United
Kingdom & Ireland and France. In these nations countries face pricing issue as their product
which are having cost are making burden on them and emerging as loss bearing entity. Cost of
product is also effecting, profit and revenue when get start shrinking it actually affects on quality
of products. Revenue generation is also low in this mature market, so basically company just
decreases its prices in the mature markets (Chugan and Panchal, 2022). They are not trying to
make innovations in product or make new target to attract new customers.
b) Emerging Eastern European Market:- Emerging market are those markets which are more
engaged on a global level, those markets includes strong economic growth, high per capita
income, foreign investment etc. In emerging market industrial and manufacturing activities are
more focused which leads to higher standard of living which is beneficial for the Sannies. They
have scope to increases their prices in these markets, they can use their innovative skills to attract
more customers and generate more revenue. Company will be able to supply quality products
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with higher price and maximize their profits. In emerging markets there are many risks as well,
there are high inflation rate, unregulated market, their growth is unstable, also influence through
foreign exchange rate.
Q.5 Logistical issues for Comapany in Emerging market in Eastern Europe.
Logistics consider as the planning and execution of transporting products from its origin
that is industry or manufacturing units, warehousing of that products to market place or to their
customers, through cost-effective manner, so these all done by companies to fulfil desires of its
customers on time. This whole process considers under logistics and in emerging market there
are many factors which leads to problems and issues for the company (Njegić, Živkov and
Momčilović, 2019). There are many factors that will company face in emerging European
market some of them are discussed below:-
Strong Trading point:- As director of the company discussed previously that strong
trading point is very essential for the company to manage their operations effectively. It
plays an important role for the company, as they grab more market aggressively. Trading
point supports company to maintain supply and on time delivery which make more
engagement in market.
Transportation cost:- As company faced transportation cost as an issue in the emerging
market, in emerging market there is inflation which makes logistical cost unstable. Fuel
and oil prices which are the reasons for fluctuation of transportation cost. It effects on
product pricing and on profit or revenue of the company. It is very tough for company to
decrease transportation cost, which is almost not in their control.
Fewer connections:- In emerging market it is an issue for the company that they have
fewer contacts through dealers and sellers. Company will generate more connections to
sell their product and reach to more consumers. Finding and catching potential links in
the emerging market is easy but there are regulatory function are distributed which lead
company to confuse in many formalities and functioning.
Q.6 Advantages of developing online presence compared to open flagship store.
In this emerging world of online trading company also want to develop there online
presence. Flagship stores are working as showcase for the brand in the retail market, it is one of
the largest store in the retail market. Online applications, websites and listing on other trading
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websites are more convenient in comparison of flagship stores, there are many advantages of
online development. There are some advantages of online trading in comparison to flagship
stores that are following :-
Faster buying process:- Online stores and trading websites utilize less time of customers,
consumer just search their choice and easily purchase it. It makes whole process easier
for the seller too, in flagship stores company have to put their all range of brands and
product whereas in online platform company have to put only images. Online platforms
saves time of the customer, if any individual want to buy company's merchandise through
flagship stores then they have to visit on it but if anyone visits online platform and buy
product through it, company delivers that product at their doorsteps.
Cost reduction:- It is one of the biggest advantage of online trading that it reduced cost,
physical or flagship stores utilize more profits of the company. Physical stores covers
cost like rent, interior designs, inventory, repairs etc (Vasciannie, 2018). Flagship stores
are risky too, many times companies invest on them to make it attractive which grabs
attention of their targeted segments but unfortunately they not earn even projected
revenue. Online product listing is quite simple and safe for the company, when Sannies
want to establish their market in new region.
Q.7 Advantages and Disadvantages of promotional activities.
Promotional activities takes place to promote and make popular among consumer. This is
marketing tool which is used by companies to maximize their sales. There are advantages &
disadvantages of three given strategies, are following :-
Expand sales team:- Company tries to expand their sales team, then it directly maximizes
their sale which leads profit generation rapidly. Sales team perform dual job that are they
sell product with addition of marketing. Expansion of sales team also takes more cost,
expansion of force effect on revenue. Company already have marketing team, so
marketing and sales team many times their clash are being taken place on different
policies over similar product.
Digital influencer:- As company, deals in fashionable footwear of women so if any digital
influencer promotes their product it attracts more consumer. This promotional activity
also supports company to make their online entrance more valuable. It takes huge cost, it
is most expensive promotional activity in comparison to others. Limitations of this
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activity are that people who are available on to digital format, apart from them digital
influencer not attracts other offline available segment.
Sponsorship:- It is form of marketing where company will support in financial terms, to another
company, individual or public figure and any media broadcast to promote their brand.
Sponsorship generates awareness in wider group of people in comparison to other marketing
activities (Akhmetshin and et.al., 2018). It increases sales of the company products as well and
generates more profit for the company. In sponsorship there are some limitations as well, low
return on Investment in context of revenue which spends on it. Sponsorship deals are not for
long-term and success rate is also very low, it is like risk and opportunity on single platform for
company.
Q.8 Suggesting promotional methods.
Company mainly relies on to three promotional activities that are discussed above, there
are many other traditional marketing techniques are as well for company, some of them are
mention in following:-
Banners & Bill-boards:- This is the most convenient and easier promotional activity in
comparison of others. Placing advertisement on crowd place, outside workplace and on
highlighted spot which grabs more customer.
Discounts & offers:- It is most effective medium to promote respective product in manner to
attract targeted segment towards their product (Bretas, V.P. and Alon, 2021). It increases sale
volume for the company, but it decreases revenue of the company.
Online advertisement:- Apart from use of digital influencer, company should focus on to
online medium of advertisements, that are online posters on social media, advertisement
on websites and online other platforms also available which promotes company's product.
CONCLUSION
In this report it has been concluded that international marketing assessment is tool used to
analyse opportunities & threats of international market. It supports company to establish their
business with proper strategies which make them stable for long-term.
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To explain more about international marketing assessment company was chosen as
Sannies, company produces fashionable footwear for women, they have experience of more than
70 years in this industry.
Along with this, report concludes upcoming branding issues that company will face,
changes in product element, effects of higher prices, strategies accordingly to mature and
emerging market, logistical issues that company will face in emerging markets, advantage of
online development in comparison of flagship stores, advantages & disadvantages of three
promotional activities, suggestions of promotional methods.
REFERENCES
Books and Journals
Akhmetshin, E.M. and et.al., 2018. Promotion in emerging markets. European Research
Studies, 21, pp.652-665.
Bonakdar, A. and Audirac, I., 2020. City branding and the link to urban planning: Theories,
practices, and challenges. Journal of planning literature, 35(2), pp.147-160.
Bretas, V.P. and Alon, I., 2021. Franchising research on emerging markets: Bibliometric and
content analyses. Journal of Business Research, 133, pp.51-65.
Chugan, P.K. and Panchal, N., 2022. MANAGING GLOBAL SUPPLY CHAIN: TRANSFER
PRICING ISSUES AND SOLUTIONS. International Journal of Management, Public
Policy and Research. An International, Peer Reviewed journal, 1(2), pp.34-41.
Femminella, M., Pergolesi, M. and Reali, G., 2018. IoT, big data, and cloud computing value
chain: pricing issues and solutions. Annals of Telecommunications, 73(7), pp.511-520.
Labrecque, L.I., Markos, E. and Milne, G.R., 2011. Online personal branding: Processes,
challenges, and implications. Journal of interactive marketing, 25(1), pp.37-50.
Mandal, P.C., 2021. Pricing and Ethical Issues for Global Markets: Strategies and
Initiatives. International Journal of Business Strategy and Automation (IJBSA), 2(2),
pp.1-15.
Njegić, J., Živkov, D. and Momčilović, M., 2019. Portfolio Selection between a Mature Market
and Selected Emerging Markets Indices in the Presence of Structural Breaks. Bulletin of
Economic Research, 71(3), pp.439-465.
Van Geert, F., 2019. The uses and challenges of the geopark label as a place branding tool. The
case of the Geopark of the Tremp Basin-Montsec (Catalonia-Spain). International Journal
of Geoheritage and Parks, 7(2), pp.72-84.
Vasciannie, L.A., 2018. The Challenges of Observation: Procedural, Legal and Logistical Issues.
In International Election Observation in the Commonwealth Caribbean (pp. 73-97).
Palgrave Macmillan, Cham.
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