International marketing refers to the strategies that are adopted by an organization to enhance and increase their sales and value in markets that are across the national boundaries of nation. It refers to the plan of action in which a company chooses those tactics which are helpful in building a positive image of firm in context of international market (Chaston, 2014). This present report has discussed about the organization namely Primark and its international marketing strategies. Here, many ways are mentioned through which firm can improve their international policies and procedures. Apart from that, various elements of marketing mix are chosen by the cited company.
International merchandising strategies refer to policies and procedures that have been adopted by an organization to improve their marketing in the world-wide market. Primark is a UK based organization which is one of the biggest retail companies across world. It deals in the retail business of clothes, accessories, food items and confectionery. So, it is obvious that marketing manager of the cited organization aims to build a strong corporate image in front of its customers and also, in the global market area. International marketing is a tactic or a concept in which company applies principles of marketing to more than one country. As, technology creates leaps in communication, transportation and financial flaws, the world seems to be smaller and smaller (Felzensztein, C and et. al., 2014). Through international strategies in marketing, it is possible for Primark to conduct the business globally and interact with its customers. Worldwide marketing plan of action refers to activities that are coordinated and integrated across multiple country markets. Various steps for developing a marketing strategy are:
- Research for a particular place for their products and services
- Preparing a strategy through which company can achieve success
- Assessment of strategies
- Modification of policies
- Developing the market
- Review of overall marketing strategies
It has been evaluated that the organization namely, Primark, should adopt marketing mix elements in the implementation of international strategies to attain its organizational goals and objectives (Okazaki and Taylor, 2013). Various elements of marketing mix are:
Illustration 1: Marketing Mix
(Source: Marketing mix, 2017)
Product: A product can be either a tangible good or an intangible service that fulfils the needs and wants of customers. The marketing manager should recognise that the products and services being offered by the firm should be attractive and of good quality so that they can achieve customer satisfaction from different countries.
Price: Marketing manager should determine the prices of products and services in a reasonable manner so that customers can attract the customers globally. Pricing should be set by the manager in accordance with supply and demand in international market (Vrontis, Thrassou and Czinkota, 2011).
Promotion: Manager of Primark should promote the products and services in international market through using promotional techniques like social media, public relations, e-mail marketing strategies, etc. by which institution can access its various customers throughout the world.
Place: Place is also very important for developing an planetary strategy regarding its global marketing. Marketing manager should determine the location where product is to be placed.
Also, it is recommended by the marketing manager of company namely Primark that it should adopt the various market entry strategies and techniques to enter international market. Below mentioned are the schemes that company should follow:
Exporting: It is one of the methods which can be taken by companies in order to enter in international market. It means to sell the products and services of company to different countries (Zou and Fu, 2011). It is advantageous because it requires less investment and allows a business to develop international strategies and plans.
Franchising/ licensing: Company can also choose this as a marketing entry tool. It has an advantage that these terms are simple and quick for implementation and has minimal costs.
Joint ventures: Primark can also enter into the international market through venturing with another party. joint venture is the form of entering a market in which two parties join each other with the aim to make profits by contributing capital, time, money and technical know- how with a view to share common profits .
By adopting any of the aforesaid strategies or tools, organization namely Primark can enter in international market for expanding their business operations. Also, by following or taking these strategies and elements of marketing mix, company can face their threats successfully and grab the opportunities. SWOT analysis of Primark is as follows:
Strengths: It is the low cost leader in low -priced Disposable fashion. It attracts many customers across the global market (Cheng, Kotler and Lee, 2011).
Also, company offers its clothing products at a very cheap rates.
Firm does not operate its business operations in an ethical manner which proves to be the biggest weakness for the company it is so because unethical behaviour can lead to poor image of company among its members.
It does not highly offers trendsetting and stylish brands to its customers throughout the world, which can also be a weakness and negative point for the company.
Opportunities: In international market, cited company has an opportunity to rise obesity level regarding its clothing sector (Coviello, McDougall and Oviatt, 2011). It has a chance to invest in plus size clothing ranges.
Also, company has ventured into global market. It also has a possibility to open 10 more stores in different places in the world which likely to increase its revenues.
Threats: Brexit has cause a lot of uncertainty for Primark as a parent company of Primark has took the decision to leave the EU which creates threat for company in business environment.
Also, if company strategically plans their operations and activities, it can help the firm to overcome its threats. One other threat for the organisation will be created if Britain goes ahead and leaves the EU.
In order to grow and sustain in the international market, marketing manager of Primark should use several marketing theories for expansion of their business operations across world. Different theories are:
Ansoff Matrix: This theory focuses on market penetration, product and market development as well as diversification. Market penetration means to expand its products and services of Primark in the global market (Felzensztein, C and et. al., 2014). For example: company can increase its clothing products to attract more customers. Also, market development refers to the situation in which firm can develop its area of operations.
Balanced Score Card: This is a theory of marketing which means to develop a strategy through which managers can see how well and efficient their business operations can run so that it can achieve the objectives of company.
Globalization is considered as the process through which businesses aims to develop its international influence and thus operate in an international scale. However, there are various factors that influences globalization and thus it is considered as the major drives of globalisation. Thus, it involves technological, political, market, competitive and cost drivers (Papadopoulos and Heslop, 2014). However, all such drivers impact on the strategic choices made by Primark in regard to enter into an emerging market i.e. India. Following are the different drivers of globalization that helps Primark to enter into international market and thus enhance the product range so that customers could be attracted towards firm
Technological drivers: In regard to make strategic choices of entering into emerging market i.e. India, Primark needs to improve its technological advancement so that product quality could be improved. Also, it is significant for businesses to implement such innovative measures and thus raise the performance of firm so that sales and profit margin could be increased (Czinkota and Ronkainen, 2013).
Political drivers: Company also needs to comply with different legislations and regulations formulated by the particular emerging country in which firm is aiming to expand its operations. Therefore, management of firm needs to comply with such factors and thus enable business to make effective entry into emerging market. It is essential for business to undertake effective political rules and regulations in order to carry out the business operations successfully (Nahavandi, 2016).
Market drivers: In order to bring enhancement within the business, Primark aims to reach to international market and bring opportunities for attaining growth and development. Company needs to enter into international market and thus obtain opportunity in the form that it helps in gaining satisfaction among customers.
Cost drivers: It can be evaluated that cost could vary from country to country and thus it is essential for businesses to take advantage of this fact. However, it is significant for businesses to develop opportunity in regard to build global scale economies and develop product development costs. Primark needs to identify the market conditions and then identify the cost factors that would impact upon the business functioning (Wu and Naidoo, 2016).
Competitive drivers: It is another crucial globalization driver that helps in bringing change in business. Primark needs to identify its competitors and then improve its product quality at affordable prices so that competitive edge could be attained in an effective way. However, it is crucial for firm to improve business performance and thus bring positive outcomes in market (Sun, Paswan and Tieslau, 2016).
All the identified drivers impact upon the globalization and thus carries out strategic choices made by firm in relation to make the best practice of deciding in relation to enter into an emerging market. However, Primark needs to make strategic choices and thus effectively enter into emerging market so that desired results could be attained (Hilal and Mubarak, 2016). It is essential for cited firm to bring innovative advancement in technology and thus enhance the quality of products so that sales and profitability could be raised.
There are many companies who perform their operations at the global in order to improve their brand image. In order to gain profit, they have to follow some marketing strategies so that they can sustain their competitive advantage. Primark uses Ansoff matrix model in order to expand their business. There are four strategies in this model such as product development, market penetration, product penetration and diversification. So in order to offer their services at the global level they can follow market development and diversification.
In market development, companies offer their existing products in the new market in order to create a strong base of customers. Apart from this, they can diversification where an enterprise offer their new products in the new market so that they can improve their growth in the market. For example, Tesco offer their services in different countries in order to create a strong base of consumers. So, they are using market and product development strategies so that overall revenues can be generated. On the other hand, McDonald's is providing food products to their customers as per their demand (Sousa and Filipe Lages, 2011). They follow the strategy in order to get success in the market. In order to fulfil the desire of people of different countries, they have to adopt their culture like when Mcdonald's offer their products in India they follow their culture. These are models that are adopted by the organisation who want to offer their services all over the world.
Primark can use some of the internet marketing strategies in order to enhance their growth in the market. Some of the strategies are:
Individualized marketing strategy: In this kind of strategy, companies are focuses on their target customers so that they can fulfil the needs of their consumers in an efficient manner. Along with this, the main aim of companies is to make the balance between the cost and profits so that their business operations can be established in an efficient manner. Further, when Primark offer their services in other country then they have to focus on the political, social and economical barriers.
Global marketing strategy: In this kind of strategy, companies are promoting their operations at global level because now the taste and interest of the customers are same. In order to perform their operations in an efficient manner they have to deal with their different customers so that competitiveness can be achieved (Douglas and Craig, 2011).
Along with these marketing strategies, the manager can use some other tools and techniques such as advertisements, price promotion, B2B marketing, inbound and outbound activities. Through the advertisements, company can increase the brand awareness among all the people of the country. If the economy of the country is good, then it will help the enterprise in improving their growth.
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