International Marketing Report: Virgin Atlantic's Global Strategies

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International Marketing

Contents
Introduction 3
LO1 4
P1. Analyze the scope and key concepts of international marketing 4
P2. Explain the rationale for it to want to market internationally and describe the various routes to
market 7
P3 Evaluate the key criteria and selection process to use when considering which international market to
enter 10
P4 Explain the different market entry strategies, including the advantages and disadvantages of each 12
LO3 14
P5 GLOBAL VS LOCAL DEBATE IN INTERNATIONAL MARKETING 14
P6 Investigate how the product, price, pricing, and promotional distribution approach differs in a variety
of international contexts 16
LO4 19
P7 INTERNATIONAL MARKETING APPROACHES 19
P8 HOME AND INTERNATIONAL MARKETING ORIENTATIONS 21
CONCLUSION 24
REFERENCES 25

Introduction
In this competitive world, international marketing means the exchange of product and
services across the national border to fulfill the customers. Virgin Atlantic is a British
based airline service provider in 29 different places in the world. It is one of the largest
airline series providers in the United Kingdom. As a marketing consultant, an
organization set up some strategies and approaches for their marketing and
promotional activities. In this organization, it includes forty airplanes, various numbers of
Airbuses, and some large body airplanes models. There are some major competitors of
Virgin Atlantics are British Airways, Emirates in all. As per the basic analysis, virgin
airlines services are divided into 3 parts economy, premium economy and business
class. The virgin group has its separate distribution channel to make the advertisement
and promotional activities for the local and global market.

LO1
P1. Analyze the scope and key concepts of international marketing
The international market refers to the marketing activities which consist of more than
one county, it is known as the International market. So many organizations’ objectives
are limit if these organizations are focus only on a single market but Virgin Atlantics
make plans strategies for the global market to look out for effectual opportunities.
Meaning of international marketing
International business marketing refers to the process of exchanging the products,
technology, services across the country border for completing customers’ requirement.
Basically, international marketing plays as a role of a bridge between the local market
place and global market place. It is helpful to increase in grabbing opportunities from the
global market. Customers from the world need verity in product and services to the
global market fulfills their requirement by providing various products at different prices
(Czinkota and Ronkainen, 2013).
Differences between domestic and international marketing
Domestic Marketing
Domestic marketing is deal with a single market of a particular country. This involves
selling of products and services of the organization within the country and fulfilled the
requirement of domestic customers. Domestic Marketing consists proper planning,
activation of effective ideas, pricing strategies and advertisement & promotional
activities of product and services to satisfy the customers need, after the effective
response from inside the country the plan for the global level.
International Marketing
International marketing refers to the promotional activities and sale of their products and
services in different countries. In the process of international marketing, there is a
requirement of a huge amount of financial resources. The organization has to know

about the laws and political status of the country before entering there. First of all, the
company should set up a market survey for the analysis of demand and supply of
product and services (Czinkota and Ronkainen, 2013).
Importance in the global arena
International marketing helps in improving efficiency and effectiveness of the product
and services by increasing in growth with the help of fast learning and enhance the
production of new products and services (Gillespie and Riddle, 2015).
● The global Market place is also helpful in gaining competitive advantages
because there are few companies who reach the local market to the global
market.
● It is helpful to grab various opportunities by the exchanging of products and
services and consider the effectual business ideas from the world in airlines
business from many countries (Gillespie and Riddle, 2015).
● This market increases the reputation and goodwill of the organization and set up
a unique brand image in between the followers and worldwide customers.
● Global marketing helps to reduce the unusual cost occurred in during the
transferring products and services and an increase in the profit structure.
Major types of businesses
Virgin Atlantic considers a different form of business by using multiple reforms which
helps to improve global marketing. There are some types of business of Virgin Atlantic
are followings as:
1. Joint ventures
International Joint Venture (IJV) happens when the two organizations from the came
together from the different countries and complete the work action. Virgin group have
collaborations with various organizations for specific work. It explains through the
example that Virgin Atlantic has formed a joint venture with Tata Consultancy Services

for developing software and applications which is used in the business. TCS has
provided various technical services for developing distribution channels and for the
process of the business transaction at the global market place (Killing, 2013).
2. Owned Manufacturers
As the organization produces product and services by its own are called owned
manufacturers. Virgin Atlantics produces different services to the customers according
to their need; it includes transportation, logistics, and others. This organization provides
several services to passengers to travel from one place to another place which includes
their comfort, meals, entertainment. The manufacturer objectives are to establish their
brand at the worldwide range, it requires tremendous services which provide by the
organization to the customers.
3. Contractual Agreement
Basically, it is a legally enforceable agreement between two or a large number of
companies which is approved by the law. In this agreement, it considers the exchange
of products and services, rights and responsibilities of both parties. The organization
has plans to collaborate with other organizations in Dubai for expanding the business.
Nowadays, Dubai is captured by Emirates Airlines and it is also the biggest competitor
of the Virgin group in Dubai. The main purpose of contractual agreement is for
Consideration which means having some values in different forms (Shmaliy et al, 2017).
Cultural Dimensions
In international marketing is that kind of marketing activities which is to be done across
the country and it essentially requires the analysis of cultural consumer behavior.
Culture has an effective impact on international marketing because any product and
services are to promote product features to the customers and make then influenced to
purchase it. Product and services of Virgin Atlantic promote their services to the
customers by their need and their requirement according to customer behavior and their
culture (Shmaliy et al, 2017).

P2. Explain the rationale for it to want to market internationally and
describe the various routes to market
The organization chooses to make marketing at the global level for different reasons are
increasing in profit ratio as well as sales also, creating long term securities,
development of management and to use of competitive advantages (Adger et al, 2013).
Virgin Atlantics think globally so they set up the business across the country border.
There are some factors which influenced international marketing are followings.
Factors that influence international Marketing
Organizational
International marketing is dissimilar from domestic marketing; there are several factors
which may impact the business. The different organization came from a different
location in the global market to set up their maximum market share and make
competition form similar industry company (Adger et al, 2013).
Domestic
Domestic Market has maximum competitions; they have to face challenges from many
numbers of local companies in similar product and services and in the same location.
The domestic market has a lesser profit from the comparison international market.
Domestic marketing is used for the development of local employment and utilization of
all resources (Adger et al, 2013).
Global
As per the studies says, the global market is very profitable for the well-organized
company. It provides more opportunities for the organization by capturing maximum
customers. Sometimes the external factors and other country laws are the major factors
to impact on the organization. The organization should have accurate information about
the laws and regulation of the country before entering there (Czinkota, 2013).

Factors that influence internationalization
Experience
The organization, when the time of entering the international marketing, the organization
has to consult with the previous pas experience which makes an effectual impact on the
growth of the organization (Hoskisson, 2013).
Capability
Virgin Atlantic knows its value in the market share and its capability also to reach a
specific stage. Any organization has some pre-defined objectives which help to grab
new and expand business (Hoskisson, 2013).
Ambition
Looking for the pre-defined path by the company in the future is called forecasting, the
organization has to make effective plans and procedures to see the future effectual
planning and using other sourced.
Learning and knowledge
From the above information, observing there are intangible services provided by the
organization which is according to the customers. Learning from the mistake makes
things right and knowledge about the social and cultural dimensions.
Entrepreneurial behavior
This is the leading factor to impact the result by developing new techniques and using
innovative technology to build the growth structure. By the help of entrepreneurial
behavior, an organization can achieve the desired objectives of the business
(Hoskisson, 2013).

Attitude to take risk
Risk-taking management is essential for the organization set up a branch at the
international level, there are chances many chances of losses but the perfect risk
management helps to recover from any situations (Hoskisson, 2013).
Localization of advantages
Localization refers to the lowering of the cost incurred in the production of product and
services and increases the quality through the ability of skilled employees, effective
marketing and transporting facility.
Role of Marketing
Global marketing strategies help in business from various ways like it improves the
effectiveness of the product and services and it also helps to increase customer
awareness about the product and services. International marketing helps to build an
effective structure for the development and growth of the organization. Marketing is a
bridge between the customers and the organization offers it. Global marketing has a
responsibility to the branding of the organization, use various promotional and
advertising activities (Hoskisson, 2013).

P3 Evaluate the key criteria and selection process to use when
considering which international market to enter
This is the selection process of entering the international market; the organization has
selected the foreign country to establish their business. The international marketing
entry process is divided into five stages and its motive to provide best opportunities from
the market to the organization which is followings:
Stage1. Country Identification
In this stage, make an analysis of the potential county where the organization can enter
with their marketing strategies (Johanson, 2013).
Stage2. Preliminarily screening
After the selection of the country, the market analysis of that country should be done in
different ways to get more productive results. Proper analysis or internal and external
factors of the country which might impact the business like economic factor, currency
stability political factor, exchange rates, and analysis the level of consumption by the
country (Johanson, 2013).
Stage3. In-Depth Screening
In this stage, the organization has to make deep research about the marketing mix,
what kind of prices charged in respective country, how to distribute the product and
services, how to achieve targets in this organization, and the main how does the
product make needs for their requirement all these analysis and research came under
this stage (Johanson, 2013).
Stage4. Final Selection
After the effective research and analysis on the market situation of the country, now the
requirement to know the potential customers in that country which is finding out by the
managers of the organization.

Stage5. Direct Experience
After the completing analysis and research on the selected country, it should be
analyzed that the personal experience is necessary. Managers personally visit the
selected country and make analysis about the culture and tradition and most important
they analyzed the demand and supply of the product and services of the organization
(Johanson, 2013).
Importance of choosing the right international market
● Effective market researches in the selected country and checks out all the
circumstances for the product and services.
● There are many ways to choose a market at a global level, which includes
methods approaches, and various strategies (Vellas, 2016).
● The profitability is the key point for this process, so find out the way for the
effective outcome from the actions (Vellas, 2016).
● Always analyze the market where it is suitable for expanding or not and also
research about the structure of the market.
Challenges in International Marketing
1. Tariff Barriers – many countries have their different trade barriers which may
affect the international marketing procedure, Virgin Atlantic always analysis these
factor at priority level (Egger, 2015).
2. Political Factor of the country- Political structure always impact the situation
where all the circumstances opposite with the project because of the political
changes in the country.
3. Variation in Exchange rates- Every country has its different exchange rates
which are applicable in several situations which is essential for the global
marketing project (Egger, 2015).

4. Regulation and ethic challenges- Laws and regulation is an essential factor for
the organization to analyses before entering the country, which usually concerns
with the action of the law in the country.
P4 Explain the different market entry strategies, including the
advantages and disadvantages of each
A market entry strategy is a key source of achieving desired objectives of the
organization only when there is a combination of few analyses and this would be the
difference among the critical situation of the global marketing of the organization. There
are some followings keys of market entry strategies are:
Pre-Defined Objectives
The organization has to specific about their want of achieving the pre-defined objective.
Strategies provide various information about the market and the structure can be used
to reach the aim.
Competitive Awareness
The organization has to make proper analysis about the competitiveness in the market
and it refers to the proper research about the competitors in the market. Sometimes it is
required to modify the product and services to get the effective outcome.
Financial Resources
Financial resources are essential for the organization to make proper arrangement of
other resources as well as to rum the organization, by the help of this resources, an
organization can set up their branches anywhere in the world.
Developing Strategies and Approaches
In this competitive world, customers expect some different type of services from the
Virgin Atlantic so that the improvement in product and services should be a part of the
development of the organization.