International Marketing

International Marketing | Hiral Sompura

Table of Contents

2Introduction:

4Market Entry & Expansion:

6Marketing Mix - Product:

9Marketing Mix Place:

11Marketing Mix - Promotion:

13Marketing Mix Price:

16Global Information System:

18Exit Strategy:

19Conclusion:

21References:

Introduction:From the previous environmental analysis of the 2 nations i.e. Canada & Argentina, it can be recommended that Canada seems to be the most lucrative market to enter. This research report was professional & depth on VelocityNZ Merino wool Industry targeted country Canada. Firstly there is brief introduction of Canada merino wool women clothing retail market where Velocity NZ is going to plan marketing strategies of New Zealand clothing to go internationally. Canada is a natural choice for retailers looking to begin their international expansion journey.In Canada womens wear industry provides top-most qualitative and quantitative. The apparel retail industry consists of the sale of all menswear, womens wear and childrens wear. The womens wear market includes women's active wear, casual wear, essentials, formalwear, formalwear-occasion outerwear and merino wool designer wear. The Canadian apparel retail industry had total revenues of $27.0bn in 2013, representing a compound annual growth rate (CAGR) of 2.6% between 2009 and 2013.The womens wear segment was the industrys most lucrative in 2013, with total revenues of $14.2bn, equivalent to 52.5% of the industry's overall value. Retail sales in Canada reached C$25.37 billion ($22.97 billion) last year, according to e-Marketer latest estimates of digital sales in countries around the world, and will rise 16.8% to C$29.63 billion ($26.83 billion) this year

The performance of the industry is forecast to accelerate, with an anticipated CAGR of 3% for the five-year period 2013 - 2018, which is expected to drive the industry to a value of $31.3bn by the end of 2018.Macroeconomic indicators provide insight into general trends within the Canada economy. (Canada, 2014)Looked at the politics of Canada, in itself and in relation to the New Zealand to identify opportunities. Watching for the repeal of trade embargoes, a new or newly accessible source of merino wool women clothing like sustainable natural fabric fibre. For years, NZ was inaccessible as a source of labour, supply or export sales due to inter-governmental tension and its fundamental attitude toward commerce. However, recently Canada has loosened commercial restrictions and has become a open source for labour, materials and import commercial transactions. Technological advancements in machinery are also opportunities when the technology makes production or distribution faster or increases its scale, such as machines that cut more garment pieces at a time.

Politics and economies are primary sources of threats to a brand in the Merino Wool Women Clothing industry. Trade embargoes, political unrest in an area of raw material supply and economic downturns that lead to restricted consumer spending are all threats to the accessibility of raw materials, brand exposure and name recognition, distribution and consumer purchasing.Finally it is recommended that investing further in marketing plan to become associated in consumers minds with conveniences and healthy product. Longer term it is recommended that Velocity NZ emphasis its differentiated factors and more importantly diversify into more profitable business instead decreasing industry profitability.

Market Entry & Expansion: A market entry and expansion strategy will map out how we going to sell deliver and distribute our merino wool womens clothings in Canada. When exporting, the expansion strategy will define ways of obtaining contracts and delivering them in that country. There have been various methods of entering new market in Target country.

So we have chosen Indirect Market entry strategy to enter Canada through:Agents, representative or distributor because: Offering to or through a delegate is a generally cheap and straightforward way to enter a new market. Intermediaries will be typically agents, representatives or distributors based in our target export market who will sell our products to end users.

A good intermediary will have in-business experience, notoriety and contacts. Utilizing them can be a quick way to get our products to the end user. They will require a level of support in the overseas marketing and selling of our product.

An agent can secure orders from foreign customers in exchange for a commission. A representative is a specialized agent who will operate within a specific geographic area and sells related lines of goods. Both agents and representatives may be authorized to enter into contractual sales agreements with foreign customers on our behalf where probably we pay them a commission only when they sell our product. Such an arrangement also gives you control over the price of your product or servicean important advantage. Verbal referrals are frequently the most ideal way to choose a distributor as trust and a good rapport are essential, having experience and of course a good network of representatives.

Experienced international agents and representatives can research markets, advice on financing and transportation choices, clear merchandise however traditions, give access to potential clients, make accumulations, and supply data on local business practices, laws and social conventions. (Nzte.govt.nz, 2013)Marketing Mix - Product:

(Qph.is.quoracdn.net, 2015)Introductory Stage: When the product enters according to product life cycle it is the introduction stage because customers are not yet aware of new product. In the introduction stage the product sales are generally low and at this time marketing expenses are generally high because it requires a lot of effort to bring awareness to the product. During this stage of the product life cycle strategies the following marketing mix are to establish a market and create a demand for the product.

Product Design: The strategy of a product can often be the thing that sells it, as this is the most obvious aspect of a product.Product Features: (Taylor, 2014) Marketing is not about providing products or services it is essentially about providing changing benefits to the changing needs and demands of the customer.Kotler have suggested product should include all the following features. (Image.slidesharecdn.com, 2014) Product Quality: A quality product will be hard to characterize as it means different things to each and every customer so we going to set their quality level and guarantee that it meets the desire of target market. Product Branding: Brands have the force of instant sales, they give a message of certainty, quality and reliability to their target market.So we will make a brand - a tool which will be utilized by our organisation to separate itself from competitors and so as target market of product and its position.Marketing Mix Place:In international market, there will be more parties included since the goods need to be relocated around foreign marketplace where business practices will be characteristic to national markets.The correct distribution strategy will fuel our business development. Working withagentsand organisation with established customers is fabulous way to expand into new markets where the expense would limit our ability to reach customers.

The level of control we want to hold is important. Working with an agent business specialists, we can control on ourpricing and maybe we will able to build a directrelationship with the customer. Asbrandingmatters to us, we will work with a small number of wholesalers rather than selling through too many diverse mediators. The same specific approach applies in our distribution channels like by giving sales agents product training if we need to invest.A viable distribution strategy will empower us to utilise our sales channels effectively and expand profits. Focusing on a small number a group of channelswill let us invest in each one and build strong relationships with key mediators.A key approach of distribution will also help us identifying conflicts and minimise them. Whatever channels we utilise will be managed properly which means investing in in-house systems and staff, also building good working relationships with agents and distributors.Effective communication & efficient logistics are vital as we want to maximise our sales as much as we can. Exporting takes commitment means expanding our operations and developing relationships in foreign markets. As our resources are already extended managing our Canadian market, we ought to focus on that now. Trading isn't a fast fix for a deficit in domestic market or a net on profit margins.

Effective exporting will begin withstrategythat spells out how we have utilise our strengths, qualities to give an edge and how we can overcome on our lack of international experience. We will need to decide amount of time and money to invest in our resources to get our overseas deals off the ground and set measurable targets. Normally exporting is commenced with a trial in a market, so we can refine our approach before committing resources to breaking into different markets.

It's highly important to dosuitable researchbefore taking dive to cover more than simply understanding local customer requirements and the competitive environment. Different dialects, societies, cultures,lawsand distribution framework are some of the obstacles we will overcome to offer overseas successfully.

Itwill help us to tailor what we offer to suit our export market. Keeping in mind that local competitors have an inbuilt cost advantage we can offer them something special finding our edges-margins under severe pressure.

Additionally going to offer direct sales then work with a localagent or distributorso we will have advantage from their local knowledge while establishing our market capability. Whatever route we pick need to work out on how to circulate our products to customers through delegates.Getting our products into export market is a challenge. Few distributors will handle this for us but we have to manage with customs clearance and local taxes. Also we will need to negotiate payment terms and protect our self against the risk that customers might fail to pay or that exchange rates which may move against us.

Marketing Mix - Promotion:The reason of promotion is to obtain and hold customers. Advertising messages in countries must be adapted because of political, cultural attitude, language, and religious beliefs. 'Below-the-line', what utilise media over which the business has control, for instance direct mailing this sort of promotion can be savvier and give more response rates.Promotions will be implemented in a way like:Go-To Market Strategy, New Product Launch Strategy, Online website Special days, holidays, Discounts strategies, Trade shows, signing up in conferences. Womens Famous magazines -- Vogue , Curve, Lifestyle , Zinio digital --- cover pages,

New Arrivals in Retail branded boutiques, outlets, stores,

Catalogues , special days like mothers day e-catalogues, newspapers,

(Shopenzed.com, 2015) (Static1.squarespace.com, 2015) (Ilovemerino.com, 2015) Key advertising strategy is likewise based on exclusivity, experience,differencingand affordability. With the essence, the company will greatly depend on word of mouth promotion more than anything else.

The target population of product is in age group 20-55 that live in the urban areas because this group is fashion conscious which comprises of women -65% who are literate and also fall in the middle and upper middle class category.

Regular product shipments will be plan in less amount to keep the stock scarce and fresh, convincing customers to purchase immediately and often visit the store to check what is new.

Also Bar coding, online shopping and computer, aided purchases are all measures will be planning to increase sales and make it an international brand. (Ben Sherman, 2015)Marketing Mix Price:

The concept of VelocityNZ will be to provide its products at a very reasonable price to its customers.

It will follow customers who will find its price quite affordable.

Moreover we have to know that customers we are referring are cream customers who would compare VelocityNZ Merino clothing with Ice-Breakers or others.

The pricing is going to be made potential by enhancing development and training costs.

Taking into justification, traditional price deliberations such as fixed and adjustable costs, competition and target sets an organisation will consider other factor as well such as:

The cost of transport Tariffs or import duties

Exchange rate fluctuations

Personal disposal incomes of the target market and

The overall economic state of the country and how this will effect pricing.

The internet has fashioned further encounters as customers can view worldwide prices and purchase items from round the world. This has amplified the level of competition and with it pricing burdens, as global contestants may have inferior operating costs. (Learnmarketing.net, 2013)

(Image.slidesharecdn.com, 2015)Factors to consider when setting prices:Competition - We need to identify whether we are higher or lower than our competitors, or in the middle ground. Our best way may be to place our self-missing from the other participants, and then give our probablecustomers a reason to select our offer instead of the others.

Costs - We need to know exactly how much we make in turnover on each product or service that we will offer. Its okay to take some loss on products in order to grow customers in the door, then you cant continue to sell it in lose, or we'll get out of business.

Offer many options that produce income in several ways.Our customers' values and how they affect our pricing facility: Customers place worth on insubstantial as well as definite measurable features, so mindful of the intangibles that customers subordinate with your product. The lowest price contestant may easily lose out to the one which offers the best buying experience.

Develop a pricing methodology.Experiment with price and conversion rates.If we sell our product for $50 and change 10% of potential customers, try marketing it for $40 and see if our alteration rate increases. Frequently a somewhat lower price can fetch in more global revenue if you can significantly increase the amount of purchasers.When it's time to increase prices:It's critical to review our pricing often. We should be doing a complete competitive examination at least once a year, to appraise where we stand against our competitors and regulate if any new pricing features have entered our environment. Customers will understand our price changing if we provide adequate warning and present the changes in a way that is reasonable and transparent.

We can also let our existing customers know that we value them by offering a reduction for a certain period of time, while raising rates for new customers. On the other hand, customers will be unaffected to price variations if they are too frequent. They value reliability and predictability. So when we make price changes, we have to make sure that they are ones that should be planning to implement for at least a year.

Global Information System:

Allowing our business to go stagnant is like not adapting changes in world environment. Branching out into international marketing can help our business adapt to changing business conditions and take advantage of technological improvements while expanding your business. Famed American scientist Stephen Jay Gould, speaking about nature, has said, Evolution is a process of constant branching and expansion.Here are many reasons why to continue internationally, though the objective of every company for going global is to expend its industry, searching new market and grow its customer base. There are numerous reasons listing underneath for entering in international market:Growth and Profitability- A lot of companies turn to global markets for growth. Introducing new products internationally can broaden their customer base, sales and revenue.Economics of Scale- Expanding size and scope of markets help to achieve economies of scale. International approaches give economies of scale while sharing of costs and risks between markets. Economies of scale occur when the unit cost of a product declines as production volume increases.Risk Diversification- Several companies move worldwide so that they can diversify. Selling products in numerous countries reduces the company's exposure to economic as well as political instability within the country.Uniqueness of Product - The product with distinctive attributes isnt likely to meet competition in the overseas markets and appreciate massive choices throughout universal marketplaces.Spreading R& D costs- Through distributing the market, a firm quickly recovers the cost experienced in R&D. it is particularly true with respect to products including higher cost related with R&D. As outcome of the large market and also due to superior coverage of the correct market segments in global markets, it facilitates speedy recovery of such costs.Resources and Ideas -Due to inaccessibility of resources in local country or at healthier reasonable rate companies turn into global market. Also companies advance internationally to collect the dissimilar ideas in the unlike lifestyle of various countries as well as to widen their workforce.Employees -All business wants expert and well skilled employees, as result company goes to worldwide marketplace to find alternate source of the labour at lower cost.Exit Strategy:After considering the following our companys exit strategy would be to handover to merino wool womens clothing related successor. Valuation of the business

Risk factors

Marketing to potential buyers

Transition of control

Conclusion:The Benefits of International Expansion:We will have more customers. We will have entry to a larger ability pool. We will have more benefits. Not just we will build the quantity of potential customers of our product, but also you might likewise have the capacity to extract higher margins. When exporting products our costs will undoubtedly change, but its been shown thatconsumers in developing countries will pay-upfor access to high-quality and well-branded products. We will get to be more efficient. Its well known fact thateconomies of scale are what made the biggest organisationof this time Ice Breakers. When we expand output via international development, we can frequently do as such with lower variable expense.The importance of this is three-folds:

We can expand margins. We can offset trading expense with less production costs. We can keep prices more competitive in New Zealand. We will literate quicker and make better products. Exporting merino wool products will instantly open them to consumers with diverse tastes, opinions, and ways of interacting with the world around them. The knowledge gained will serve our company well either by giving new experiences about our current domestic offerings orbrainstorming for new products that can serve both markets. It is the future. International expansion will soon be standard working procedure for all except smallest of ventures. It advances rapidly and very often company struggle to keep up in terms of strategy. It is therefore reasonable to deduce that our company international operations will consist of a collage of country market operations that pursue different objectives at any one time. This in turn our company would adopt different entry modes for different markets. As there are at least 10 good reasons to go global, there is no right or wrong approach to entering the International market. Different circumstances will be common in different markets and for diverse companies. In all cases it is strongly advise serious thought and much preparation. Research foreign property and understand the customer culture of our overseas operations. By taking our products international, we are duplicating our business for another set of circumstances a different locale and culture with a different market demands, needs and expectations. Going global could be one of the most brilliant and most productive moves one would ever make if we get our work done and get some assistance from locals and experts. Otherwise, you may be neglecting increased sales new knowledge and experience and most importantly higher profits. References:

Ben Sherman,. (2015). Using the marketing mix in the fashion industry. Retrieved from http://businesscasestudies.co.uk/ben-sherman/using-the-marketing-mix-in-the-fashion-industry/promotion.html#ixzz3YjhMYuKD

Canada, A. (2014). Apparel Retail in Canada. Marketresearch.com. Retrieved 3 May 2015, from http://www.marketresearch.com/MarketLine-v3883/Apparel-Retail-Canada-8403005/

Canadas Changing Retail Market. (2013) (1st ed.). Canada. Retrieved from https://www.ic.gc.ca/eic/site/oca-bc.nsf/vwapj/CTU-2013_Q2_Canadas_Changing_Retail_Market-eng.pdf/$file/CTU-2013_Q2_Canadas_Changing_Retail_Market-eng.pdf

Emarketer.com,. (2015). Retail Ecommerce Sales in Canada to Near C$30 Billion - eMarketer. Retrieved 3 May 2015, from http://www.emarketer.com/Article/Retail-Ecommerce-Sales-Canada-Near-C30-Billion/1011853

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Learnmarketing.net,. (2013). International Marketing Mix. Retrieved 3 May 2015, from http://www.learnmarketing.net/internationalmarketingmix.htm

Nzte.govt.nz,. (2013). Working with agents and distributors. Retrieved 1 May 2015, from https://www.nzte.govt.nz/en/export/preparing-to-export/preparing-your-strategy/working-with-agents-and-distributors/

Qph.is.quoracdn.net,. (2015). Retrieved 3 May 2015, from http://qph.is.quoracdn.net/main-qimg-52f92ec1f29c19042b4e0a121d3060e0?convert_to_webp=true

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Taylor, P. (2014). Definition of Marketing: Marketing Definitions and Marketing Concept. Learnmarketing.net. Retrieved 3 May 2015, from http://www.learnmarketing.net/marketing.htm

5/5/2015

Hiral Sompura

Student Id - 289

International Marketing

Assignment 2

Merino Wool Women Clothing

Key International Marketing Drivers

Growth

&

Profitability

Resources

&

Ideas

Employees

Spreading

R & D

Cost

Uniqueness

Of

Product

Risk

Diversification

Economies

Of

Scale

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