This assessment will demonstrate some of the main points which are like:
- What are the ways in which the Rawlinson Knitwear can move to global and international expansion.
- What are the potential marketing strategies for Rawlinson Knitwear. Give the appropriate market entry method for Rowlinson Knitwear.
INTRODUCTION
Global marketing is described as the way to formulate and adjust market strategies of an organisation so that customers in worldwide context can be targeted. This concept is more broad the simply selling of a service or product in global manner. This is a complex process which involves activities like creating, planning, positioning and advertisement of a brand or specify product (Baker, 2014). This assignment is based on Rowlinson Knitwear which is a London based organisation, operating their activities in UK only. This organisation provides corporate and school wear to their customers. This assignment will cover about different reasons which can trigger a company to internationalise their business along with implementation of global marketing model. Also, various methods of market entry are discussed and at last marketing strategies will be mentioned that will ensure success in global market.
MAIN BODY
Brief background about selected organisation or product
In order to perform this assignment, selected organisation is Rowlinson knitwear. This company operates within UK only and provide good quality Knitwear, corporate and school wear to their customers. Due to standardised services and products, people are highly satisfied from this organisation. This company is founded in 1972 and employees around 70 employees. As company is operating in domestic market only, their revenues and profits are limited. Hence, owner of company has decided to expand their business in new international markets so that large customer base can be served and high revenues can be achieved. Appropriate expansion in international market will bring numerous opportunities for concerned organisation in terms of growth and success (Buckley and Casson, 2018).
Analyse about potential internationalisation motives that can impacts an organisation to move in new international market
Concept of globalisation and international is increasing at a fast pace. Every firm wishes to internationalise their business in hope to achieve expected results. But still, there are certain motives which influence a company to expand their operations in new international markets. These motives are of two kinds i.e. Proactive and Reactive motives which are discussed below:
Proactive motives
- Profit and growth goal: This is one of the main motive which motivates an organisation to internationalise their business. Performing activities in global market will assure more revenues and sales due to wide pool of customers. Hence, operating in international market assures high customer base due to which sales and revenues of Rowlinson Knitwear will be more.
- Foreign market opportunities: Operating in multiple countries allows an organisation to serve millions of customers. If these customers will be satisfied then opportunities like high profits, increased reputation, high customer retention can be grabbed. These aspects will help Rowlinson Knitwear in becoming a renowned name with high brand equity (Cornwell and Kwak, 2015).
Reactive motives
- Competitive pressure: Due to increased pressure in local market, organisations faces fear of losing their revenues and customers to those companies which are performing their business activities at both global and domestic market. Competing rivals in competitive manner can also triggers Rowlinson Knitwear to operate internationally. By this, they will be able to compete with competitors in terms of revenues and profits.
- Small and saturated domestic market: Operating in limited market leads to market saturation due to which revenues and profits of an organisation start reducing. This situation can triggers the owner of a company to internationalise their business. Expanding in big countries will assure large customer base to serve and satisfy if marketing strategies of Rowlinson Knitwear will be appropriate (Kasemsap, 2015)(Schniederjans, Schniederjans and Schniederjans, 2015).
Apply global marketing models in context with international market selection
In order to internationalise their business, manager of Rowlinson Knitwear has selected two countries i.e. Ireland and Spain. These two countries are selected as they are neighbours of UK and part of European union. At present, UK has exited from European union but it shares cordial relationship with both Spain and Ireland. Due to this, it will be easier for Rowlinson Knitwear to expand their business in these two countries. To analyse these international markets, 12C's framework to international is discussed below:
|
Basis |
Spain |
Ireland |
|
Country |
Spain is situated in south-east part of Europe and borders France, Portugal, Mediterranean sea and other countries. This country has population of near about 40 million people with per capita GDP of 34,600 dollars. |
Ireland is an island country based on North Atlantic. This country is neighbour of UK. Population of country is around 7 million. GDP of country is around 30,000 Euro per person. |
|
Concentration |
This country is divided into provinces, cities and approx 17 autonomous regions. 3 million of population reside in capital Madrid and other big cities are Valencia, Barcelona, Malaga, Zaragoza etc. |
This nation is divided into state, urban and rural areas. Capital of Ireland is Dublin and biggest city in Ireland is Belfast. Most of the people in Ireland lives in Urban area (Tedlow and Jones, 2014). |
|
Culture/consumer behaviour |
Ethnic composition of Spain are Nordics and Mediterranean. Main religion followed by people is Roman Catholic. Official language of Spain is Castilian Spanish. |
Composition of Ireland includes Asian (1.7%), Black(1.1%) and White (96.4%). Other ethnicities are also present in minority of 0.8%. |
|
Choices |
Competition in Spanish Cloth market is strong due to presence of large organisations like Zara, H&M. Also, most of the people prefers to purchase standardised products only. |
Competition in Irish market is low as most of the business organisations operating there enjoy monopoly in their respective fields. |
|
Consumption |
As Spain has high GDP people are capable to purchase products and services to show off their luxurious living. Consumption of cloths is high in this market. |
Population in Ireland includes people form average and rich section. People prefers to purchase those products which can serve their needs properly. |
|
Contractual obligations |
Regulatory and legal framework in Spain are very fair, transparent and less complex than other European nations. Also, country is open up for foreign investment. In case of retail sector, government regulate it with limited competition (Andersson and Evers, 2015). |
A UK based organisation is required to follow limited legal and regulatory framework to operate in Ireland due to nearby borders. |
|
Commitment |
Trade system is Spain do not involves any essential licence or quantitative restrictions for EU members. As UK has exited from EU, this aspects will impact Rowlinson Knitwear in negative manner. |
Trade system of Ireland is robust but as UK is their neighbouring nation, Rowlinson Knitwear will not have to get any specific license to operate their business operations there. |
|
Channels |
Country offers easy access to European markets and its has well developed infrastructure involving water, rail and air transportation. |
Ireland is very close to UK in comparison to Spain. This will benefits Rowlinson Knitwear in easy export of production. |
|
Communication |
Media landscape in Spain do not have any particular regulations due to which concerned company can easily communicate their thoughts to customers. |
Government in Ireland do not have any strict norms related with promotions and advertisements of products (Coviello, Jones and McDougall-Covin, 2015). |
|
Capacity to pay |
This aspects is high for Spain as people residing there posses disposable income. |
People in Ireland have average capacity to pay as products of Rowlinson Knitwear are not highly priced, company will earn good sales. |
|
Currency |
Currency in Spain is Euro with exchange rate amounts to 1 Euro= 0.86P. Also, inflation rate in Spain is high. |
Currency in Ireland is Euro and inflation rate in Ireland is less in relation to Spain. |
|
Caveats |
Growth in Spanish market is low due to increased competition among business organisations. |
This market promises high business growth due to less competition among business organisations. |
Reason for choosing selected markets
According to the analysis carried above, manager of Rowlinson Knitwear have selected Ireland as suitable international market for business expansion. This is because, Ireland is immediate neighbour to UK due to which export and import of products will be carried out without spending high transportation charge. As Spain is a big market, competition there is high, for a new and medium size organisation, it is not possible to compete against large organisation. But this, situation is different for Ireland where business competition is less due to which business growth is high (Demangeot, Broderick and Craig, 2015).
Analyse and evaluate different methods of market entry used by selected firm to enter one market
There exist different methods to enter a new market. In case of Rowlinson Knitwear, some methods are stated below:
- Direct exporting: It is referred as direct selling of the products into the selected market with the help of distributors, retailers and wholesalers. This is one of the best method to enter a new market without physically entering there.
- Licensing: It is basically a sophisticated arrangement in which an organisation transfers another firm the rights to use a service or product. This method to enter international market is useful if the purchaser of License holds high market share in market.
- Franchising: This is the fastest way to expand business in international market. It is suitable for those companies which posses repeatable business models and planning their expansion in multiple international markets (Mathews and et. al., 2016).
- Joint venture: It is a kind of partnership among two organisations in which an independent third party is formulated so that required work can be performed efficiently. In this mode of market entry, profits and risks are shared among partners in equal amount. One example in this context is Sony/Ericsson mobile phones.
Evaluate the appropriateness of selected entry method
Out of all the methods, concerned organisation is going to use direct exporting methods to enter the market of Ireland. This method is most suitable in context with situation of Rowlinson Knitwear. This method will require less number of capital and manpower as all the work will be carried out in UK only and final product will be exported to wholesalers, retailers and distributors present in Ireland. In case of Licensing, Joint venture and franchising, company will require heavy capital which is difficult to be arranged by small scale company like Rowlinson (Ngo and et. al., 2016).
Discuss about potential marketing strategies that assures success in international market
There are different kind of marketing strategies that can be adopted by the manager in Rowlinson Knitwear to confirm that they will achieve high advantage and revenues in international market. In this context, marketing communication mix is used which will include multiple marketing strategies so that concerned company can communicate about their products to global customers. Aspects of communication marketing mix are stated below:
- Advertising: By promoting and advertising about their offerings in Ireland market through newspaper, TV, Rowlinson Knitwear can assure appropriate attention of customers due to which firm will be able to acquire high sales and profits in Ireland.
- Sales promotion: This is one of the best market strategy to gain attention of customers. In this strategy, freebies and discounts will be provided by Rowlinson Knitwear to the people in Ireland. This will helps the customers in acknowledging the products of company and customer base of organisation will hike in Ireland (Surugiu and Surugiu, 2015).
- Direct marketing: It is also known as internet marketing. In this kind of marketing technique, manager of Rowlinson Knitwear can take help of social and digital media like Facebook, Instagram, Twitter etc. to interact and connect with their customers. This will allow the customers to get updates about company on regular basis and hence, interest of internal customers can be maintained properly.
These are some of the marketing strategies which can be adopted by the manager of Rowlinson Knitwear to gain the support and attention of customers in Ireland. By this, business expansion in Ireland will became successful and overall profits & revenues of firm will enhance.
Read Also: Business Ethics: Functions and Comparison
CONCLUSION
As per this discussed report, it has been summarised that global marketing helps an organisation in operating worldwide due to which high revenues and profits can be achieved. Foreign market opportunities and Competitive pressure etc. are some of the triggers which motivate an organisation to internationalise their business. Also, 12 C's framework of market analysis is the best marketing model to select right international market. Best method to enter an international markets is direct exporting Also,Direct marketing, Advertising, Sales promotion are some of the marketing strategies which assures that concerned organisation will achieve high growth and success in internation
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