BUS710 Marketing In An International Environment

 Purpose- To evaluate the attractiveness of Indian market as an international market expansion strategy for Globe International. Scope- A brief analysis of the various micro and macro environmental aspects linked with the Indian Market with a focus on PESTLE analysis, competitor analysis, market segmentation and target market.

ØName- Global International

ØFounded in the year- 1985

ØBackground- producer & distributor of specialist products such as purpose-built footwear, skateboard hard goods and apparel.

ØBusiness- categorised into distributed brands, licensed brands and proprietary brands (Hoovers, 2018).

ØPresence- International (over 100 nations)

ØPromotion strategies used for success- constant tours, promotions, magazine advertising and video ads.

 Market Selection

ØGlobe International has identified India as an opportunity international business expansion.

ØIndia is a lucrative option for any brand planning to enter the market.

ØThe international business grows at a rate of 7 percent annually in India, bringing numerous opportunities for International market.

Ø54 percent of India’s total GDP (gross domestic product) comes from international trade and India is 9th biggest commercial importer across the globe.

ØThus, the scope towards business expansion and growth in Indian market is huge.

Target Market

 Primary Target Market: The primary target market for Globe International will comprise of young consumers, specifically those who are attracted to international brands. To target the primary market, the company will approach high-value, moderate-pricing strategies. 

 Secondary Target Market: The secondary target market for the company will majorly comprise of teenagers and school-goers. For this market, the company will develop products which are value-based, fashionable and come at a reasonable rate.

 Tertiary Target Market: The tertiary target market will comprise of smaller but specific target markets. For instance, premium sports customers looking for personalised or customised footwear and apparel wear will be one tertiary target market (Schiffman & Kanuk, 2010).

Market Segments

 Geographic Segmentation: The most suitable geographic segment for the company will be metropolitan cities like Mumbai, Delhi, Chennai, Bangalore, Pune and Hyderabad. Even in case of e-commerce models, the company will have to establish contracts with local delivery services which might not be available in other two-tier cities (Macdonald & Sharp, 2012).

 Demographic Segment: The company will be majorly attracting young consumers, particularly students, teenagers and young working professionals.

 Age: The target age group for Globe International will be between 15 years and 40 years. This will include students, high-schoolars, teenagers, graduates as well as young working professionals.

 Gender: The Company will be targeting both male and female customers and will provide variety of products for the target customers

 Socio-economic group: Since majority of the target customers will be financially dependent on their parents and guardians, the products will be marketed as value-based. The company will distribute its street-wear fashion brands to teenagers, students and high-schoolers. Also, the main target for the company’s work wear brands will be young working professionals (Chan & Wu, 2005). High-quality sports gears and personalised or customised footwear and clothing’s will be targeted to premium customers.

 Behavioural Segment: The company will be basically targeting customers who are attracted to fashion brands and street fashion

Competitor Analysis

 The Indian retail market is filled with online and offline brands, traditional and contemporary as well as domestic and international brands.

 Alley Solly: It is a brand from Aditya Birla Group, India’s premier retail house with presence in more than 35 nations across the globe.

 United Colors of Benetton: It is a retail brand from Italy with more than 5,000 online and offline stores across various international markets (Govindarajan & Bagla, 2016).

 Local Brands: The company will also face competition from local brands and retail outlets across the nation (Federgruen, 2007).

Recommendations

ØThe company will need to evaluate and place its products as per the local demand such as traditional clothing and colours of its apparel and footwear as per popular customer demands

ØOne of the easier and safer market entry strategy for Globe International will be to enter via e-commerce only mode. This will help in analysing the market based on which, further expansion plans can be made.

Conclusion

ØIndia will be the most potential market for Globe International

ØThe company would face several issues in the Indian market but there is also a huge market opportunity for it

ØThere are some threats as there is a tough competition prevailing in the Indian market.

References

 Allon, G., & Gurvich, I. (2010). Pricing and dimensioning competing large-scale service providers. Manufacturing Service Operations Management. 12(3), pp. 449–469

 Cavalcanti, P.R., Oliveira-Castro, J.M., & Foxall, G.R. (2013). Individual differences in consumer buying patterns: A behavioral economic analysis. Psychological Record, 63(2), 259-276

 Chan, L. K. & Wu, M. L. (2005). A systematic approach to quality function deployment with a full illustrative example. The International Journal of Management Science, 33(2), pp. 119-139.

 Donovan, R. (2011). Theoretical models of behaviour change. Thousand Oaks, CA: Sage.

 Federgruen, I. (2007). Competition in service industries. Operations Research, 55(1), 37–55.

 Govindarajan, V. & Bagla, G. (2016). Two Ways to Break into India’s Consumer Market. 

 Hantula, D. (2013). From producers to consumers: Organizational behavior management meets consumer behavior analysis, and the future looks bright. New York, NY: Routledge/Taylor & Francis.

 Hoovers (2018). Globe International. 

 Macdonald, E. & Sharp, B. (2012). Brand awareness effects on consumer decision making for a common, repeat purchase product: A replication. Journal of Business Research 48(1), pp. 5-15.

 Schiffman, L.G.& Kanuk, L.L. (2010). Consumer behavior (7th ed.). Upper Saddle River, NJ: Prentice-Hall.