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International Marketing: Guat Shoes Company

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Question:

Evaluation of international market opportunities of Guat Shoes Company?
 
 

Answer:

Executive summary:

This report reflects the international marketing strategies for a selected company namely Barrats. The company already established their market in UK and achieves a high competitive advantage in footwear industry through providing quality family footwear. Guat Shoes Shoes  known for the shoe company and it is a very well known company in UK. The company wants to launch their product in Indian market. In addition, the company is successful while launching the product in India. In India, there are many outlets where this company is well recognized.  In this report, it describes the market analysis of Indian market. Moreover, describe about the India as a destination for UK companies.

Introduction

Fogarty (2011) argued that international marketing is the application of the principle of marketing not only one country but also in different countries throughout the world. International marketing also allows the organization in expanding the business throughout the world and make sustainable global advantage. Holden and Zlatevska (2015) opined that through international marketing, organization in corporate sector expand their market in different part of the world and make a sustainable growth including high brand value.

This particular assignment firmly focused on expanding the business of a selected company namely Guat Shoes. The company is mainly provides shoes for men as well as women. The main headquarter of the company is at Sheffield in United Kingdom. Guat Shoes is a brand of elevated road shoe shops working in the UK and Ireland. The Guat Shoes shoes product buy and sell from 100 UK and Ireland outlet. Guat Shoes go in management for the third time in five years on 11 November 2013, with Duff & Phelps selected as manager (Guatshoes.co.uk, 2015).

The key concept that elaborates in this particular assignment is the development of marketing strategy that required for the market expand in India market. This assignment also explains the potential marketing opportunities for expanding the market that selected by the company Guat Shoes.

1. Selection of product and Market

In United Kingdom, Guat Shoes is mainly known as the quality family footwear. However, the company tries to expand their business in India As the country is consider as the developing country, people become more conscious about the quality of the product. However, in India market there are lots of footwear manufacturing and selling company such as Sreeleathers that provides low cost footwear for both all aged men and women but unable to meet with the quality that demand by the customers. Therefore, as the selected company Guat Shoes focused on quality family footwear, it may be effective to capture the footwear market in India. Following tables shows the products that want to be launched in Indian market by the Guat Shoes –

Category

Products

Men’s

Sandals, Gola, Rockport

Women’s

Shoes, Strollers, Sandals, Boots, etc.

Girls

Guat Shoes Labels


Company investigate as well predict huge opening for rising tendency of online footwear retail marketplace. Shoe producer have increase an unexpected increase in the transaction of footwear with the increase of online business and the rising tendency of e-commerce business. Moreover, there as well survive enormous demands for the conventional footwear marketplace in India (Miguel Villas-Boas, 2015).  Style freak young people currently favor cultural footwear to provide a stroke of Indian glamour to their western garments. The statements mean to make easy customers with an obvious considerate of the present and prospect viewpoint of the footwear marketplace and expansion in the nation. A thorough study of the industry tendency of nationwide and worldwide participant as well is liable to represent a obvious image of the commerce in India (Kuldova, 2014).

The teenager footwear section is the greatest increasing division in India. The Indian teenager footwear section is extremely uneven & conquered by unorganized division. The recognized teenager footwear section has a huge license to participate as India has the humanity leading youngster people. The general teenager retail section has a vigorous border of 20 – 25 %, which is enormous possible chance for planned branded retail Footwear Company. As per the youthful Indian decision-making category grown-up in conditions of superiority, plan and product, the partiality will added towards branded footwear and the enlargement is predictable to be elevated in this section with the relocation of individual from rural community to metropolis for improved profession and occupation. The footwear retail section is presently the main organized division inside the retail area. On the other hand, this is merely payable to the extremely organized scenery of the men’s footwear division (Park, 2012). The women’s group is mainly unorganized; actually secure to 95% of the grouping is unorganized. Through this the esteem to relax of the humanity, this is an irregularity as the women’s class is mainly organized and outline a big amount of the marketplace (Nguyen et al., 2013).

 

2. The Decision to Internationalize

The key objective of the Guat Shoes is to become the market leader not only in UK but also throughout the world. In order to become the leader of the business, need to internationalize of the business activities. It is the most preferable and essential phenomenon in these days of modern and highly competitive business.  

Indian footwear, business mostly determined by men’s footwear section, successful with the increase in the acquisition authority and the increase of picture consciousness amongst the young people (Holden and Zlatevska, 2015). Additionally, with the increasing younger operational group populace, the command for official footwear has as well observed important augment (Holden and Zlatevska, 2015). While the adulthood grouping demand for medicinal footwear that present relieve and fitness payback jointly with the high-class. The statement as well examine that through the utmost populace-unmoving livelihood in rural district, the demand for footwear is growing in these district. Increasing profits stage of the populace and product consciousness has additional boost the demand for first-class footwear (Holden and Zlatevska, 2015).

3. Decision to enter in Indian market

India is rank on the entrance of a retail insurrection and observer quick altering retail circumstances, through footwear market locate to understanding the extraordinary expansion in the upcoming days (Miguel Villas-Boas, 2015). The entrance of frequent international company has moreover resulted in as long as a important enhance to the Indian footwear promote and the insist for Indian footwear motivation maintain to produce in prospect additionally, articulate our current details, “Indian Footwear Market estimate 2014”.Now a days, Indian footwear business grade second-largest footwear manufacturer following China.  Company has successfully observe the present and upcoming tendency of the Indian footwear sell on the origin of which, it is measured to acquire a important budding with taken as a whole marketplace predictable to produce at a CAGR of approximately 14% throughout 2012-2014 (Gogas, 2010).

3.1 Potential Market Growth of Indian Market

 

 Date

GMT

Reference

Actual

Previous

Consensus

Forecast 

11/28/2014

12:00 PM

Q3

5.30%

5.70%

5.10%

4.96%

2/9/2015

12:00 PM

Q4

7.50%

8.20%

5.50%

5.75%

5/29/2015

1:00 PM

Q1

7.50%

6.60%

7.30%

7.20%

8/31/2015

1:00 PM

Q2

7.65%

7.50%

 

7.53%

11/30/2015

12:00 PM

Q3

8.82%

7.57%

 

7.57%

11/30/2016

 

 

8.93%

7.60%

 

 


Indian household leather product marketplace expected to be value Rs 16,300 crore and is predictable to produce at a CAGR of 20% (Lilien, 2011). Domestic footwear marketplace expect to be above Rs 15,000 crore in assessment conditions and have developed at the velocity of 8.8% above the previous couple of days. Men’s footwear financial records for approximately partially of the whole marketplace, through women’s shoes comprise 40% and childrenʹ footwear assemble for the remains. The domestic market is considerably price determined, with recognized footwear comprise fewer than 42% of the entire marketplace dimension (Leeflang, 2011).

 

3.2 Availability of natural resources

The confront for Indian Footwear business is lit huge except foresee India to turn into between top 5 Superpowers in 2030, our expenditure charge preserve arrive at as elevated as 7-8 pair. In particular, situation, India might require creating wherever among 8-10 billion pair believe annually inhabitants expansion. Combine mid-term position by 2020, the possible objective for Indian Footwear business determine balance expenditure prototype of 3-4 pair (Slater and Andriopoulos, 2013).

Through six-seven times to leave, company require to balance our manufacture as of present stage of 2 billion pair to almost 5 billion pair next to a CAGR charge of 30-40%. Positively for us, India position No.1 in exploits Manufacture Company has the major reserve of cattle populace in the globe. Moreover, on the potency of raw material obtainable nationally, the great group of accomplished and untrained labor, company has the ability to obtain this confront start on. Agreed this background of harmonized possible it would not be an overstatement to speak that Footwear segment is nowadays, on locomotive of incremental expansion (Slater and Andriopoulos, 2013).

Among worldwide combination of Indian business, quick transform in existence, profits increase at base of the prosperity pyramid, Footwear business is predictable to produce bound and limits (Pellegrino et al. 2015). Miserably, largely manufacturing development residue reasonable and harassed takes off payable to lasting on infrastructural restraint (Slater and Andriopoulos, 2013). For the Indian footwear to detonate and transport, constructive direction strategy, communications, elimination of elevated dose of duty, infrastructural carry in ability structure, ability teaching and equipment up degree, product structure implement must be initiate expeditiously afterward than at the present (Prakash, 2012).

3.3 Availability of Labor

The leather industry inhabits a position of distinction in the Indian financial system in vision of its enormous probable for employ, expansion and sells overseas. Nearby in growing importance on its designed growth, intended at most favorable operation of obtainable raw materials for exploit the income, predominantly from sell overseas (Slater and Andriopoulos, 2013). The export of leather good increase thrust throughout the earlier period. There has been an extraordinary increase in export from Rs.320 million per year in 1965-66 to Rs.69558 million in 1996-97.

Indian leather business nowadays has accomplish fine advantage gratitude in worldwide marketplace as well inhabit a well known situate amongst the top seven overseas replace earners of the nation. Separately from an important foreign trade earner, leather business has wonderful budding for employ production. Straight and tortuous employ of the business is approximately 2 million (Priporas and Kamenidou, 2010). The accomplished and semi-skilled employees comprise almost 50% of the whole work power. While opinion of employment in diverse segments of leather business.

As rising country developed and commence to struggle worldwide on the power of nationally and profusely accessible labor at cheaper expenditure and urbanized country augmented their efficiency by advance in laborsaving equipment and as well by drumming low price labor from worldwide income (Slater and Andriopoulos, 2013). Highly developed country is requiring high-skill labor gradually further, which is attractive scarcer by the daylight whereas require for low down skill labor has increasingly refuse.

Labor’s in general split of profits has drop and therefore dissimilarity are rising as inferior skill staff counting 75 million youthful populace expression redundancy, beneath employ and decline salary. MGI find this tendency assembly impetus and dispersion to budding financial system, as the worldwide labor energy advance 3.5 billion in 2030. Stand on present tendency in inhabitants, instruction, and labor requirement, the details scheme to by 2020, the worldwide country. Nearly all of the adding to labor energy would happen in India and new youthful rising wealth in its district.

360 million elder populace and 38 million college-educated employees creating more diminutive provide in skill labor; would not be division of labor strength. Resultantly the statement finish that except here is an instant and enormous worldwide attempt to recover labor skills, there willpower be “distant too little employees with advanced-skills desirable to make a high efficiency wealth and remote too little work chance for low down skill employees” (Slater and Andriopoulos, 2013).

 

3.4 Infrastructure of Indian market

Indian leather manufacturing is the center power of the Indian footwear business.

Potency of India in the footwear segment invents from its authority on dependable bring of income in the appearance of uncooked hide and skin, excellence complete leather.  huge set up capacity for manufacture of complete leather & footwear, huge person resources with knowledge and equipment support, accomplished manpower and comparatively low down price work, established potency to manufacture footwear for worldwide product selected and obtain expertise capability chiefly for average and elevated price footwear section. Reserve power of India in the appearance of resources and accomplished employees is a proportional benefit for the state (Special issue Multicultural marketplaces: new territory for international marketing and cross-cultural consumer research, 2013).

3.5 Foreign Exchange

The Leather Industry clutches a famous position in the Indian financial system. This segment recognized for its constancy in elevated sell abroad salary and it is amongst the peak ten overseas swaps over earners for the state. The leather business is an employ concentrated division, as long as work to concerning 2.5 million citizens, typically from the weaker segment of the civilization. Women employ is predominant in leather foodstuffs division with concerning 30% divide.  India is the subsequent major manufacturer of footwear and leather fashion in the world. Global deal ongoing receiving relax correct throughout the 1970s and 80s.

Starting a global income of $4 billion, the leather and leather goods business grow to a predictable $70 billion in 2000. Internationally, there were main structural change in this division—the construct of leather goods are shoes, outfits and further mixed supplies migrate from developed country in the West to the rising country of the East in a big way, above all provoked by price deliberation. The disparities in salary were too huge to overpass by any technical development, mainly because the leather business is blue-collar (Special issue Multicultural marketplaces: new territory for international marketing and cross-cultural consumer research, 2013).

3.6 Market Entry Strategies

Retail footwear section in Indian is extremely charge responsive and has been increasingly rising above the day. Most important division of the command is meeting by the unorganized division and unmoving nearby is a deficit of 300 million pair. Branded shoe marketplace is merely explanation for 20% of whole market (Makanyeza, 2015). At the same time international brand mainly control the superior finish of the band, the inferior finish of the marketplace is conquered by home-based company and unorganized company. Whereas men's footwear is the major objective group, children's is 11% and women's lifestyle footwear 41% is not following in the contest.

Guat Shoes has been successfully developed their market and now the actual quality family footwear shop in UK since 1958. The quality of the products especially the shoes for both men and women such as Guat Shoes Labels is so much high that the competitors face challenges in terms of acquiring their market in England. Therefore, Guat Shoes understood that that had to handle the all footwear to be the dominant brad in the footwear industry.

Licensing market entry mode will be the better strategy to enter into India Market. As India is the developing country, therefore the government provides the opportunities to the foreign marketers in developing their business or invests for the business. Though licensing has limited form of participation, but it will the effective way of starting new business in India.  Moreover, licensing strategy also will be effective for Guat Shoes because company will face low risks of manufacturing relationships.

 

5. Design, Implementation and Control of marketing program

5.1 Marketing Mix (7P’s) Analysis

Elements of Marketing Mix

Description

Product

The quality of the product of Guat Shoes is good. However, not only the quality but also the looking as well as color combination of the products is also very good and attractive. Through the marketing communication group, Guat Shoes will introduce new products that may strengthen their visual aids and the point of purchasing advertising.

Price

The shoe is the new brand in the country, therefore; it cannot run its business with a high price as there are enough competitors in this segment. Further, company is totally unknown brand in the place, therefore, it needs to undermine the strategy of niche market so that it can maintain the price of shoes at the highest level.

Place

The place of marketing of the product will be sell their products through their showrooms in all over the country. 

Promotion

Company will promote their shoes in their websites as well as in the social networking site.  The growing usage of the web users in the country will provide an advantage to the company to reduce the cost of advertising overall.

People

The people of the company will be engaged in the supplying, promoting events and selling of the shoes in their showrooms in the country. They will display their products to the customers in various events too.

Physical Evidence

Company will packed its products in a standard packaging box where the brand name of the company will be described.

Process

The process of the company will be employed to sell and marketing the shoes with an effective supply chain management due to vide changes in the marketing strategy. Company will not manufacture products in this country.


5.2 Key Activities that consider the alternative ways of planning into action including responsible person

Key Activities

Responsible Person

Production

Production Manager Group including designer group will take the responsibility

Problem Solving

CEO of the company will take the entire responsibility of mitigating the problem

Network or Platform

Sales person including sales managers will take the responsibility of increasing chain network for expanding the business

Importing

Importing Manager

Labor Management

Supervisor


5.3 Appropriate Marketing Budget

 

 

Year 1

Year 2

Year 3

Year 4

Year 5

Total

Operating activities

 

 

 

 

 

 

 

Net income

$20,000

($230,275)

($227,277)

($250,969)

($269,064)

($957,584)

 

Depreciation

30,000

12,852

13,104

13,356

13,608

82,920

 

Accounts receivable

1,200

0

0

0

0

1,200

 

Inventories

2,300

0

0

0

0

2,300

 

Accounts payable

5,400

1,500

0

(1,500)

0

5,400

 

Amortization

6,900

6,900

6,900

6,900

6,900

34,500

 

Other liabilities

1,100

1,100

1,100

1,100

1,100

5,500

 

Other operating cash flow items

3,300

3,300

3,300

3,300

3,300

16,500

 

Total operating activities

$70,200

($204,623)

($202,873)

($227,813)

($244,156)

($809,264)

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

Capital expenditures

$12

$0

$0

$0

$0

$12

 

Acquisition of business

5

0

0

0

0

5

 

Sale of fixed assets

$1,200

$0

($1,000)

$0

$0

200

 

Other investing cash flow items

3,000

0

0

0

0

3,000

 

Total investing activities

$4,217

$0

($1,000)

$0

$0

$3,217

 

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

 

Long-term debt/financing

$2,000,000

($65,202)

$9,038

$33,240

($92,598)

$1,884,478

 

Preferred stock

0

0

0

0

0

0

 

Total cash dividends paid

0

0

0

0

0

0

 

Common stock

0

0

0

0

0

0

 

Other financing cash flow items

0

0

0

0

0

0

 

Total financing activities

$2,000,000

($65,202)

$9,038

$33,240

($92,598)

$1,884,478

 

 

 

 

 

 

 

 

Cumulative cash flow

$2,074,417

($269,825)

($194,835)

($194,573)

($336,754)

$1,078,431

 

 

 

 

 

 

 

 

Beginning cash balance

$4,000

$2,078,417

$1,808,592

$1,613,757

$1,419,184

 

Ending cash balance

$2,078,417

$1,808,592

$1,613,757

$1,419,184

$1,082,431

 


5.4 Time Horizon

Activity

1 to 4 Months

5 to 9 Months

10 to 18 Months

19 to 25 Months

26 to 29 Months

29 to 33 Months

34 to 36 Months

Selection of location to start business

  •  

 

 

 

 

 

 

Recruitment of New Staffs

  •  
  •  

 

 

 

 

 

Suppliers Selection

 

  •  

 

 

 

 

 

Material Cutting

 

  •  
  •  
  •  

 

 

 

Embroider Shoes

 

 

  •  
  •  

 

 

 

Sew Accessories

 

 

 

  •  
  •  

 

 

Cut Accessories

 

 

 

 

  •  
  •  

 

Packaging

 

 

 

 

  •  
  •  

 

Home Delivery Facility

 

 

 

 

 

  •  

 

Selection of Currier

 

 

 

 

 

  •  

 

Selection of Target Market

 

 

 

 

 

  •  
  •  

Market Segmentation

 

 

 

 

 

  •  
  •  


Conclusion:

While concluding this report, this report deals with the fashion and beauty sector in Indian market. Guat Shoes is footwear and accessories brand company. This business requires beginning their goods in India marketplace. The companies as well examine the Indian footwear marketplace. Guat Shoes  is presently there in India throughout 15 select channels in New Delhi, Mumbai, Chennai, Hyderabad, Bangalore, Pune and Chandigarh and throughout multi product channel similar to Lifestyle, Shopper's Stop and Reliance Footprints existence. The retail existence marketplace in India increasing quickly and we desire to completely valve this section by introducing 25 select Guat Shoes channel in different cities by 2014. Guat Shoes is mainly appreciated name for transport handcrafted relieves equipment with fashion & stylishness. The compilations are enthused by worldwide fashion tendency, maintaining the discriminating consumers in India. Nowadays the brand is rising as a purpose wherever clientele able to obtain elevated superiority stylish goods at a huge charge. This reproduces by the extraordinary footfalls in the freshly begin supplies.

 

Reference List

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I was impressed with the ideas discussed in the assignment. Few grammar mistakes had to be corrected but good work in general.

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