Effects of Franchised and International Brand Stores on Local Saudi Clothing Retail Stores - Dissertation Example

?Table of Index 1page Introduction -2 pages 2. Research aim Given) 3. Research objectives Given) 4. Literature Review-2 pages 5. Research Methodology-3 pages 6. Findings & Analysis a. Quantitative Finding & Analysis-2 pages b. Qualitative Finding & Analysis-2 pages 7. Recommendation- 1/2page 8. Conclusion-1/2 page REFERENCES Title : effects of franchised and international branded stores on local Saudi clothing retail stores and in terms of retail marketing mix its relation to global marketing strategies . Abstract In this research, we have attempted to scrutinize the retail marketing mix in perspective of Saudi Arabia, whether international branded store is in competition with the local. This situation analysis has been assessed and promulgated customised strategy under the “Global Marketing Strategies”. We have collected data relating to the Saudi woman and their frequency of visiting particular band irrespective local or international, and also Saudi market itself to harness what are the marketing mix positioning and strategy practiced in domestic shape. We have observed and analyzed different global marketing strategies which can help us to identify the gap in current strategy of retail mix in Saudi Arabia under current Global market strategies. This paper has dissected all the elements to identify this point in final state by breaking them in questionnaire. This fact based analysis will help to understand the upcoming competitive era with specified factors identified to contribute in greater extent to promulgate strategies for retail industry in Saudi Arabia. Research Word: Retail Industry, Retail marketing mix, Saudi franchised international brand, Global marketing strategy. 1. Introduction Saudi Arabia is getting very competition intense economy where most of the international brands are interested to invest and derive good revenue from the strength of local purchasing power. Many international events in Saudi Kingdom are now approaching for the foreign investment and it is arranging many exhibitions. Main area where most industry is developing for foreign trade in Dahahran, Jedda and Riyadh. In these are apparel having a important space. Diagram: Significance/ Capacity of venue From this chart we can see what are the factor’s that the Saudi woman considers for the purchasing of any clothing in retail stores. From this analysis and form the global growth of 15% for the retail fashion industry. In this point the strategy which is highly depending on the marketing mix composed of people, place, product and promotion varies significantly and contributed widely in business profitability. Ongoing brand consciousness and the strong purchasing power we can see that the international incentives to invest in the Kingdom of Saudi Arabia. Based on this potentiality of this industry more research, information and facilitation form the government has to plan for the local retail store so that they can compete and survive with global competition. Eventually the local store can keep the customer demand in more customized way, but the fact is the taste ans culture is getting more global than particular land. We have summarized some research to support our existing research that we can continue the quantitative research based on this base of qualitative or exploratory research made by Amani Aqeel in 2012. Saudi women’s purchase intention from the total sample of 20 customers shows the figure above to prove the factors and their intensity. These summary reports can help us to pursue the further research in greater details of qualitative and quantitative extent. 2. Research aim-(Given/ Made by customer) 3. Research Objective-(Given/Made by customer) 4. Literature Review- 2 pages Since 1853 , Levi Strauss used to believe as one of the most popular international fashion retailers all over the world. Upon continuing their operation after long years of time worldwide they have started their strategy to make standardization practice to meet the goal of meeting economies of scale and core competitive differences. This implementation appears as decline in sales volume, this gives the significant signal to the brand Levi Strauss that similar product may not be compliant for all market in the global diversity demand. The remedy which has been taken in retail marketing strategy under global perspective is that to adopt and customize trend than the standardized global scenario, the then they accommodated local buying pattern element in their retail marketing mix. For example, they changed their jeans in scale of fitness and design for the individual market (Vrontis and Vronti, 2004). According to professor Jose Medina and Mike Duffy, marketing standardization take places at the point where homogenous product and services will serve a particular country besides their local provider (Medina 223). The assumption which works for this internationalization is the so called approach named “inside out or outside in”. This approach intends for expansion and cost reduction standing more in horizon by the preferred targeted place (Kragh 8). Dana Alden also says that there are magnificent potential for the global segments of the consumers who are devoted to retail fashion industry. Continuous merge of global culture can create greater potentiality for the upcoming global strategy for the retail fashion market industry(Alden 76). This requires huge research and creative ideas to adjust the international product locally in cost effective and creative way. Thus it can demand much attention to the investor’s, being facilitated by the information and research. In 2007 Birnik and Bowman executed a summary by researching on Multinational Corporation from all over the world. There they have given a conclusion that there more qualitative research will be needed to determine whether standardization or customization to be implemented for the international companies marketing mix. Moreover, other research indicate that there is lack of information regarding the retial industry leads the companies no choice but following standardization at entrance (Burt, Johansson and Thelander,2011; Wigley and Moore,2007). This implies that more qualitative studies regarding retailing business implementation is required (Wigley and Moore,2007). In Saudi Arabia , the apparel retail sector has grown very fast over the five years inspired by the young and fashion oriented part of the society who represent disposable income has increased. This country is having huge boost on the retail apparel industry in few decades which requires vary large and extensive database to update and inform the upcoming business investors about the retail market and their positioning (Aqeel, 2012) Fashion retailing business is differentiating by the nature than any other retail business, particularly this is the business for the low life cycle and frequency of change in the market is high. Elements of marketing mix always differs from the micro and macro variables of the markt economy ((Birnik and Bowman, 2007; Chung, 2007; Czincota et al., 1995; Johnson and Arunthanes, 1995; Vrontis and Papasolomou, 2005; Vrontis and Vronti, 2004). Now the targeted market can be global, or it can be market positioning based on the marketing mix ; finding approach to create balance of the marketing mix to be implemented with proper fitness in demand(Vrontis and Vronti,2004). Such research tells us about the steps where first the factors and intensity to indentify then marketing mix to be promulgated, keeping place with the global marketing strategy all over the world and differences and facts can be trace out for the booming Saudi retail industry secotr. 5. Research Methodology-3 pages Sampling We have distributed 50 questionnaires; we have received completed 45 answered 5 half done and 5 non-responded. Among them 34 were female customer, 10 retailers and 6 male customers. In this sampling we have targeted our variables in modelling where we have emphasized on the woman and their fashion consciousness. From the data and research we have discovered that woman in Saudi Arabia prefers more to visit in clothing store than male consumer whereas the net revenue also increasing due to their awareness in international brand significantly. We have also kept the retail marketer who gave the opinion about the local and international brand frequencies and their observing experiences relating to the variables which has been tested at the model to check the degree of influence on local retail store and its profitability. Data collection Method of data collection was basically questionnaire but it has been filled either by telephone conversation, or filled by physical trip by the interviewer, and by the customer and marketer themselves. Depending on time constraints and willingness of co-operation method of data collection varied. 15 Saudi female consumers’s were interviewed and assisted by the interviewee to fill the questionnaire. 10 female customers were interviewed by phone that are loyal to particular brand, rest of them filled questionnaire by themselves. All 6 male customers spoke about their information and experiences with the given variables in hypothesis. Among 10 marketers, most of them requested to be at week end meeting for the free time to discuss and fill the questionnaire with the support of interviewer, they were very co-operative and encouraging to conduct and complete the research which can be beneficial for their business to design the strategy in competitive world class environment. Regression Analysis for Quantitative Analysis – This is most commonly performed statistical test where dependable variables are depending on independent variables. Independent variables are the main independent element which has influence on the depending factor with particular degree. This degree of influence and which independent factor can contribute in which degree and how many the relationships are correlated among the chosen variables have tested under this comprehensive method of Regression Analysis. In the linear regression method dependent variable is assumed to be a linear function stated below where one or more variables plus error will estimate the total regression with individual degree of factors. In the original formula of linear regression X is the independent variables and Y is dependent variables, and Beta (?) which is the unknown variable to identify the accuracy of regression if necessary. The underlying assumptions for this regression analysis are- Representing sample interprets the prediction for the entire population For the random variables error are measured in zero with the variables which are explanatory variables Errors are completely uncorrelated whereas variance-covariance matrixes are diagonal and each non-zero element is the variance of the error. Independent variables are measured with no error , and Variances among the error are constant for the observations in the test. Global marketing strategy models in practice for Qualitative analysis- a) Opportunistic global market development (diversifying markets) b) Following customers abroad (customer satisfaction) c) Pursuing geographic diversification (location, atmosphere. Temperature etc.) d) Exploiting different economic growth rates (potentiality and facilitation) e) Overseas targeted market entrance f) Globalizing for risk hedging g) Expansionary effort for profit and new market. Hypothesis & model to be tested - To organize the entire research aim and objectives we have designed the following hypothesis with specific variables to observe the distinction of the degrees of influence by individual reasons. Hypothesis- local branded retail stores are affected by international branded stores, in terms of female customer frequency, their taste of choice/ buying patterns , economy of scale/ pricing issue, and international brand with their fashion frequency in the year. LSRR = + LFS + LBP + PSS + IFFY where, LSRR = Log of Local Sales Retail Revenue; LFS = Log of Ladies customer frequency in store; LBP= Log of Ladies customer buying pattern; PSS = Log of Pricing is an issue for sales in store; IFFY = Log of International branding fashion frequency in a year. 6. Findings 7. Recommendation 8. Conclusion Research aims: This research sheets aims at measuring the degree to which local branded retail stores are affected by international branded stores especially the franchised clothing stores by marketing mix techniques , and hence, major points are made to clarify the aim: A. The current marketing applications in fashion local retail stores of Saudi Arabia: 1- To clarify the statues of traditional marketing followed by local branded retail stores by exploring whither it is on sale at fashion local shops or still valid at some fashion stores. 2 –To certify whither international marketing strategies are effective tool in local stores or not. B. Franchised fashion retail stores are highly perceived: 1- To determine whether the effectiveness of marketing mix activities is efficient to target the audience or not. 2- To determine wither global branding is conceptually seen as a valuable object and powerful tool by the many of Saudi consumers. C. international branded stores: 1- To understand the impact of marketing services on global branded retail stores. 2- To examine the term marketing across culture on clothing retail stores . Research objectives: In this research paper, the researcher hopes to accomplish the following objectives when the research questions are conducted; 1- To identify the significant difference between local clothing retailing and none local retailing through distinguishing them through classifying the techniques followed in either international companies or non-global cooperation. 2- To assess the values added to marketers knowledge, when global marketing techniques are employed in non-international business. 3- To produce investigative information on how franchisees within Saudi market has constituted effective marketing instruments in conjunction with international marketing strategies. 4- To measure the significant shift occurred to the culture of marketing business of Saudi Arabia by exploring marketer willingness to accept the change. 5- To explain the association between buying decision of female consumer and their attitudes towards a preferred retail store which can either be local or franchised or other international branded stores. 6- To emphasis on female consumer buying pattern for a specific retail stores and its connection to their satisfaction rate. 7- To interpret the finding of trusted relation with a female consumer in Saudi market and branded clothing retailers. It is therefore, numerous techniques will be employed to achieve and accomplish these smart objectives in attempt to represent objectivity not subjectivity in this research paper. Following the discussion above, the literature review will be centred on several keys related directly to objectives formulated sentences through connecting them to research main aim which on certifying the degree that global marketing mix impacts on franchised and none franchised including local fashion and international fashion retail stores in Saudi market, and how international branded stores are affected by Saudi market conventions regarding marketing services. Literature Review frame work: F Read More