International Marketing, Initial Fashions, Hong Kong - Essay Example

International Marketing Table of Contents Introduction 3 International Marketing 3 Initial Fashions, Hong Kong 4 Initial Café 5 Marketing Mix 5 Sources of Information 8 External Factors 9 PEST Analysis 9 Competitors 10 Customers, Cultures and Distributions 10 Conclusions 12 References 13 Bibliography 15 Introduction Marketing is the life-blood for any business. It is the most important function for any firm or business organisation as it directly contributes to the generation of sales and revenue for the firm. In order to reap all possible benefits, marketing should commence much earlier to the production of the product (or delivery of the service). The marketing essentially comprises three important factors: Determining the need of the prospective customers Meeting the need of the customers The price of the product or service should be within the reach of the customers (Bull & Passewitz, n.d.). In simple words, marketing is a fine blend of attitude as well as the process (MSUE Marketing, n.d.). International Marketing In the competitive world of today with the advent of technological innovation, world has become a small place to live in. Internet has been the key to the communication boom. Traditional thoughts and practices of limiting one company with in the geographical boundaries of the country are obsolete today. Companies, across the globe, are striving to get into newer markets in the form of newer countries. International marketing has become the very integral part of almost all companies of the present world. According to Doole and Lowe, “At its simplest level, international marketing involves the firm in making one or more marketing mix decisions across national boundaries. At its most complex level, it involves the firm in establishing manufacturing facilities overseas and coordinating marketing strategies across the globe”(Doole & Lowe, 2001). Initial Fashions, Hong Kong Established in 2000, Initial Fashions has been known for its unique and creative yet qualitative designs. The philosophy of the company states that fashion should ideally reflect latest art and design and is much more than just a consumption phenomena. The leading fashion house of Hong Kong also believes that the fashion should reflect one’s inner and the outer qualities. The company is credited for its rigorous support in the relevant happenings and events of art and culture. The company deals with men’s ware, women’s ware, show pieces (lifestyle products), cafes and various imported brands like Goliath, Buffalo, Nuka, etc. Throughout Hong Kong the company has seven shops at the following places: Style House, Causeway Bay Jaffe Road, Causeway Bay Queensway Plaza, Admiralty Cameron Road, TST (fashion) Cameron Road, TST (café) Hankow Road, TST 5/F Langham Place, Mongkok Initial Café Initial Café provides whole lot of beverages and food items and includes Espresso, Siphon Coffee, special drinks, cake, cookies, salad and sandwiches. Ice Moca, the food item which has cocoa flavour upon the taste of coffee is made by mixing coffee beans bought from various countries. Dark chocolate is then added to establish the cocoa flavour. The café division of the Initial Fashion which uses antique furniture to slow down the pace of the citizen’s life at the ever-busy shopping centers and streets of Hong Kong has all the attributes to venture in the market of United Kingdom and be successful. As the café belongs to the service industry, the most important condition to be successful is to maintain the quality. And with the reputation that Initial Café has, there is little doubt about it’s accomplishment in the international market. Marketing Mix Marketing mix may be defined as the strategy of various components of marketing which are used in various magnitudes for the success of the marketing plan. The marketing mix for a service industry constitutes of 7 Ps namely Product, Price, Promotion, Place, People, Process and Physical Environment (Hisrich & Peters, n.d.) Product – The product range would include all the snacks and the beverages items that are available at Initial Café of Hong Kong. The quality of the product should be maintained at the highest standard so that it can easily adapt with the British way of living. Price – The company should price the product in such a way which would enable maximum possible target customers to visit the store on a regular basis. Initial Café should also consider the pricing of the competing brands. Promotion – The promotional measures should be apt to establish itself in the competitive scenario. They can come up with introductory offers or other sales promotion methods apart from advertising. Place – The coffee stores should be conveniently located so that it could cater to the needs of all target segments. Location near tube stations might be great centers. People – As it happens in the case of service industry, people or the employees hold very important position. The workforce should be trained by the Hong Kong giant so that they make customers feel home at the shops. People are the face of the brand. Process – The entire process of making coffee and preparing cookies and cakes should be under strict adherence to quality and quality standards like six sigma could be implemented. Physical Environment - The physical environment of the coffee center should match with the British way of living and thinking. The environment should make customers feel comfortable and not alien. Sources of Information Before venturing to the foreign market, any company would like to have full-proof strategy in place to be successful. This is so important because it involves huge cost for any company to undertake its products into a different country. Also it absorbs significant logistics. If failed, the company might even lose its reputation and brand name even in the home market. In order to develop full-proof strategies, the venturing company should collect all relevant information about the target market and the segment. Important sources of information might be as follows: Market Research Companies – Prior to venturing into the new market, the Initial Café should employ any of the leading market research organisation to analyse their chance of being accepted and successful. The management should seriously consider the report of market research. Chamber of Commerce – The Hong Kong house should also resort to the reports and suggestions as prescribed by various chamber of industries and commerce in Britain on the café industry as well as regarding the foreign companies trading in the country. Own Survey – Not fully depending upon the reports provided by the out-sourced market researchers or the external bodies of the industry, the company should also conduct its own survey about the feasibility of investing in the country. For the purpose, they might rope in any of the leading media houses of Britain or any of the super-market chains and can use their infrastructure. The feasibility study is a must and should be done with due importance. External Factors PEST Analysis PEST analysis includes the study of the factors like Political, Economic, Social and Technological happenings which invariably helps a business organisation to understand the market position, direction and potential for a business (Business Balls, n.d.). Political – The political factors in a PEST analysis include political stability in the country, regulations and restrictions of international trade, regulations regarding competitions, safety laws, etc. It is the broad framework which would guide the company’s external environment. Over all, the political environment is stable at United Kingdom. Economic – Economic factors include the taxation policies of the land, the inflation (or deflation as the case may be) rate, the exchange rates, the monetary policies, the confidence of the customers in the economy, the availability of sources of funds and the rate of interest and other important factors. Also for the purpose of Initial Café, the purchasing power of the target customers should be analysed. Social – The social factors includes lifestyle, health condition, the income distribution, the education, the fashion statements, etc (PEST Analysis, n.d.). All the factors are crucial to the decision making. Initial Café should be able to leverage the social factors in the United Kingdom market in its side. Technological Factors- It includes the changing way of doing business due to constant innovation in the field of technology. Initial Café can provide Wi-Fi internet with in its coffee stores to attract more customers. Also, it can resort to online marketing measures and use the prevailing technological factors to the fullest. Competitors According to the traditional notions, United Kingdom is a tea-loving nation. So, there is every opportunity to the Initial Café to position itself as the supreme café brand and tap the requisite market share. Few of the prevailing companies in the industry are Café Nero, Bar Italia, Cafe Flo, Café Rogue, Pelican and Pret a Manger (London Cafes, n.d.). Initial Café in order to penetrate in to the British market should closely follow how these successful brands run the show and develop its core competencies on the basis of their weakness. Customers, Cultures and Distributions The customers, their cultures and the distribution channels of the marketing company are inter-related most of the times. The customers are often, if not always, dictated by their cultures. So, the onus of using the culture of the customers for the benefit of the marketing plan lies on the penetrating company. Initial Café, at the first place should be able to indulge with the British culture. They should not take any step which might hurt the sentiment of the nation. If the company can develop a sense of belonging among the customers, it is sure to secure a long term business. The distribution channels should be well thought of. The locations should be convenient for all segments of target customers. Initial Café can consider establishing its shops near the tube stations and the shopping malls. Conclusions International marketing is always easier said than done. The options and variables which might look perfect in black and white, might turn out to be challenging to the core in reality. A simple mistake in assessing the cultural and psychological factors and in the analysis of PEST factors may ruin the entire organisation along its hard earned reputation. Still, as the competition is on the rise, companies are in constant search of newer markets. Expansion of business is the key to its survival. And for the purpose, international marketing has come up as a viable option. With due importance to the feasibility study before the commencement of the project, international penetration would definitely earn glory and revenue to the firm in this era of globalisation. References Bull & Passewitz, No Date. Understanding Marketing [Online] Columbus: Ohio State University Factsheet. Available at: http://ohioline.osu.edu/cd-fact/1251.html [Accessed May 24, 2009]. Business Balls, No Date. Pest Market Analysis Tools [pdf] Alaska Pacific University. Available at: http://polar.alaskapacific.edu/entrepreneurship/resources/marketing/172_pest_analysis.pdf [Accessed May 24, 2009]. Doole & Lowe, 2001, International Marketing Strategy - Analysis, Development and Implementation, 3rd Ed. Thomson Learning. Hisrich & Peters, No Date. The Marketing Plan. [Online] Sharif University of Technology: GSME. Available at: http://gsme.sharif.edu/~alireza_feyz/pdf/studies%20groups/bp/marketingPlanHisrich%5Bppt%5D.pdf [Accessed May 24, 2009]. London Cafes, No Date. Recommended Cafes [Online] London: London Online. Available at: http://www.londononline.co.uk/Cafes/ [Accessed May 24, 2009]. MSUE Marketing, No Date. What is Marketing?. [Online] East Lansing: Michigan State University. Available at: http://web1.msue.msu.edu/iac/msuemarketing/resources/whatis.html [Accessed May 24, 2009]. PEST Analysis, No Date. Political, Social and Economic Factors. [Online] North Eastern University. Available at: web.cba.neu.edu/~srabino/marketing/PEST%20ANALYSIS.ppt [Accessed May 24, 2009]. Bibliography About Intial, No Date. about initial, philosophy, shop list, initial cafe. [Online] Hong Kong: Initial Fashion. Available at: http://www.initialfashion.com/ [Accessed May 24, 2009]. Benneth & Blythe, 2002. International marketing: strategy planning, market entry & implementation. Ed 3. Kogan Page Publishers. Buttle, F., 2008. Customer relationship management: concepts and technologies. Butterworth-Heinemann Cowan, B., No Date. The Social Life of Coffee. [pdf] London: Yale University Press. Available at: http://yalepress.yale.edu/yupbooks/excerpts/cowan_coffee.pdf [Accessed May 24, 2009]. Curtis, T., 2006-07. The Official CIM Course Book – Marketing In Practice. Chartered Institute of Marketing. Czinkota & Ronkainen, 2006. International Marketing. Ed 8. Cengage Drummond, Ensor & CIM, 2001. Strategic marketing: planning and control. Ed 2. Butterworth-Heinemann Faculty and Research, No Date. Marketing. [Online] Harvard Business School. Available at: http://www.hbs.edu/units/marketing/ [Accessed May 24, 2009]. Gilligan & Hird, 1986. International marketing: strategy and management. Taylor & Francis. Gilmore, 2003, Service Marketing and Management. Sage PEST Analysis Template. No Date. PEST Analysis Template. [Online] Purdue University. Available at: http://web.ics.purdue.edu/~pbawa/421/PEST%20Template.htm [Accessed May 24, 2009]. Rust, Zahorik & Keiningham, 1996. Service Marketing. HarperCollins College Publishers. Ruskin-Brown & Clarke, 2000. Marketing a Service for Profit. Kogan Page Publishers Read More