Answer To: back to top This assessment requires you to develop the remaining sections of a comprehensive...
Akansha answered on Oct 03 2020
Running head: International Marketing
International Marketing
International Marketing
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1) Executive summary
Earlier than entering a latest market environment, it’s essential for all companies to evaluate market environment therefore that they may strategically plan their marketing strategy. In previous assignment, through performance of the Indian market was conducted so the Billabong Company could take key strategy to enter foreign market. Global marketing goals have been also laid down as well as the Indian marketing environment has been evaluate therefore that the company can effectively recognize its strengths, weaknesses, opportunities and risks in the latest business scenario.
The high standard quality of Billabong's packaging solutions will facilitate access to the international marketing field. As the commodities moreover offers made by organization have capability to get an efficient market images on global platform, environmental factors abroad will be appropriate for the development or expansion of the business operation. Most suitable access market model for Billabong will be licensed, as it allows the company to protect its intangible resources, such as patents, methods, etc. This official access mode can be accepted by the sports service providers to enter Indian business environments. The business will focus mainly on the participants who work in the manufacturing company as they are on lookout for the best as well as suitable packaging solutions. Since Billabong offers unique surfing and sporting solution to different types of businesses, the offer's features will make it possible to establish unique brand or product image in India.
Contents
2) Introduction 3
International marketing and plan 3
Introduce the company 3
4) Assignment 1 -: (Situational analysis, Pestle analysis, market analysis, and competitor analysis, organizational analysis or core competencies) and no recommendation just basic 3
Situation Analysis 3
1. Business Environment 3
Political 4
Economic 4
Social 4
Technological 4
Legal 4
Environmental 5
2. Market Analysis 5
a. Customer Segment 5
b. Type of Market 6
c. Profitability 6
d. Market Size 6
e. Growth 6
f. GDP 6
3. Competitors 6
a. Two key competitors 6
b. Data related to competition 7
c. Competition level 7
4. Organisational Analysis 8
a. Billabong Products 8
b. Domestic Market of Billabong 8
c. International Market of Billabong 8
d. Billabong Products in Indian Market 8
e. Competitive Advantage of Billabong 8
5. SWOTAnalysis of Billabong 9
Strength 9
Weakness 9
Opportunity 9
Threat 10
5) Assignment 2:- (Market entry strategy, target market, customer analysis, positioning) 10
6) Marketing Objectives: - to enter the new market International marketing work on objectives (Smart, realistic, simple and small and to the point) Check from book. 10
7) Marketing mix 11
8) Managing, measuring and controlling (Why, what and how to do these key points) 15
Conclusion 18
Reference 20
2) Introduction
International marketing and plan
It must now be clear that organizations and companies that plan to compete effectively in the world market require a clear or targeted international marketing strategy depends on thorough understanding of market in which business launches its products (Ahlfors & Fang, 2017). Therefore, the challenge for global marketing is to make sure that some worlwide strategy has an in-depth study of the discipline and an accurate and understanding assessment of what are needed to attain a competitive benefit. The international strategic plan is primarily to benefit the company's managers and existing or potential owners of the business. This is a document prepared at a point in time that describes a set of clear and concise activities that will achieve specific international marketing objectives based on the marketing strategy chosen.
Introduce the company
Billabong International Limited is a surfing company that specializes in the clothing retailers as well as also produce accessories for example watches or backpacks, and other products or brands of skateboard and snowboard products. Recently, Billabong faced problems from its saturated home market, leading it to focus and consider on global markets, such as India. In 2012, Billabong entered the Indian market by tied up contract with Arvind Limited.
3) Assignment 1 -: (Situational analysis, Pestle analysis, market analysis, and competitor analysis, organizational analysis or core competencies) and no recommendation just basic
Situation Analysis
1. Business Environment
Every market has its contextual factors that shape the performance and profit earnings ratio for business organisations. As mentioned by Gaspara, Popescua, Dragomira and Ungurasa (2018), business organisations are directly influenced by the trends in the market and the trends on the other hand are again influenced by the political, financial, social, environmental, technological and legal aspect of country in which the market exists and is collectively represented through PESTEL an alysis, which is formed of the initial letters of each influential factors.
P
Preference to Open Market Policy
T
Availability of Advanced Technology
E
Growing GDP and Investment
L
Politically affected, legal framework, beneficial for market entry
S
Emergency of Newer, anti-stereotype generation
E
Inclination towards outdoor activity and costal vacation
Table 1: PESTLE Analysis of the Indian Market
(Source: As per market data from Export, 2017)
Political
The political landscape of the Indian market has changed remarkably in the last decade, focusing more in foreign organisational entry, foreign direct investment and open market structure for organisations to come in and generate employment for the increasing population of India (Export, 2017). Considering the political attitude, it can be assumed that, entering Indian market would be beneficial for smooth market entry for Billabong.
Economic
In the last decade, the Indian economy has become the highest growing economy in the globe, made evident by the consistent growth in the GDP (The Economic Times, 2018). Consistent growth of GDP of a country is a sign of less risk for foreign business organisations at the time of entering the country’s market. In Billabong’s case, the India’s steadily growing GDP would be a benefit for business expansion.
Social
It is a fact that the Indian society is different and has yet to reach international standards, however, the new generation of India, are more inclined towards an independent and anti-stereotypical lifestyle. As opined by Bharucha (2018), it is easily assumable that the social changes in Indian population would help in the adaptation of Billabong’s range of surf-wear and accessories.
Technological
The open market strategy adopted by the Indian political powers, has led the entry of technologically advanced firms operating in India. The presence of technologically capable business organisations, as stated by Singla, Ahuja and Sethi (2018), help foreign companies venturing into a market and easily manage production and technical set up. Billabong can manufacture, and distribute its products based on the advanced technology available in India, affecting its transport, production and connectivity.
Legal
The legal aspect of the Indian market, being affected by political policies and standards would not pose any problem for Billabong from selling its products in India, given that it maintains the minimum standards of product materials and customer dealing norms.
Environmental
Indian environment is humid, hot and has long stretches of costal lines. According to Kumar and Rajendran (2018), despite the absence of the surfing culture in India in the earlier decades, it is potentially an ideal market for surfing product retail companies. Considering the Indian environmental aspect, it can be said that it is in favour of Billabong’s market expansion.
2. Market Analysis
In the following section a detailed description is provided for the Indian Market, which is aimed by Billabong as its new market entry.
a. Customer Segment
Indian customers are very typically inclined and influenced by the value for money aspect ratio. As assessed by Agarwal (2018), Indian customers are easily attracted towards brands who offer better value for money products and services, even if the brands are comparatively new.It is seen that 500 millionIndian people uses internet and caries the potential chance of becoming online customers (The Economic Times, 2018). The target market for surf-wear retail companies aim at young Indian customers, and in India the majority of the online users are young, below 35 year age mark (Statista, 2018).
Figure 1: Age group of Indian Online Users (Customers)
(Source: Statista, 2018)
b. Type of Market
Indian market is highly competitive due to its open market entry policy and huge customer base. According to Anagol (2017), an exclusive product can gain monopoly of business in Indian market for a very short span of time, as local companies are fast in learning, adapting and developing similar products and services, taking away the competitive advantage of monopoly.
c. Profitability
In the Indian market, there is diversity, based on the regional culture, geographic characteristics and economic group of customers that make smaller, region based market circles. A company, as argued by Anagol, Cole and Sarkar (2017) that gained popularity in one region of India might not get as much popularity in other sections as some other company being popular already by selling the same product. A company selling a product for lower economic customer base would not be popular among premium brands selling the same product on a higher price.
d. Market Size
The Indian clothing market, which is a 68 billion dollar industry targeted by Billabong, is the source of income for 45 million people, affecting a staggering 60 million people in total (Fashion United, 2016).
e. Growth
In terms of growth of the Indian Clothing market, it is seen that since 2010, the market has not faced any issues with its growth and is expected to increase and reach nearly 6 trillion Indian rupee industries by 2020, which makes it evident that there is ample demand in the market (Statista, 2018).
f. GDP
It is also responsible for increase in GDP of the country, accounting 5% of the total. In case of foreign currency earning, it is also a major contributor, capturing 13.5% of the total exports (Fashion United, 2016).
3. Competitors
a. Two key competitors
The two main competitors in the market that pose the highest level of competition for Billabong are Quiksilver and Roxy, both of which are doing healthy business in India, under the brand, Reliance(Times of India, 2012).Both the companies have occupied nearly 8% of the entire market (True Industry News, 2018).
Figure 2: Market Share of Roxy and Quiksilver
(Source: True Industry News, 2018)
b. Data related to competition
Quiksilver and Roxy are casting ample influence on the Indian clothing market as they tend to refine and expand the surf culture based cloths, accessories and sports clothing. Signing up a contact with Reliance, the Quiksilver is estimated to open half a dozen retail stores in South Asian countries that included Sri Lanka, India and Nepal. Roxy is a sister brand of quicksilver, focussing on creating female clothing line and accessories. In the Indian market, both the companies are doing proper business, although the profit earning is still on the lower side.
c. Competition level
As India is a developing country, the trend towards buying premium products are still on the rise and yet to reach a saturated market. Therefore, it can...