Introduction of International Marketing Strategy
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International marketing strategy refers to the process of creating new opportunity in international market for the business. It is the process of expanding business in new market and making strategies to choose the international market to work in for the organization. Primark are one of the leading brands in fashion retail in UK. The Primark founded in 1969 and the founder of Primark was Arthur Ryan. The report will explain about the cultural and marketing issues of business.When working in a new country, it's important to consider how to work in a changing environment and how to collaborate across cultures. The study, similar to Dubai, will detail the cross-cultural issues that the corporation must address as it pursues economic expansion.Further the report will explain about SWOT and PESTEL analysis of business. The report will explain about the expansion of business in DUBAI by Primark(Samiee, &Chirapanda, (2019)).
Analyse cultural issues
Primark is one of the leading fashion retailer’s headquarters in UK, working on the expansion planning of the international business in Dubai, it is crucial for the organization to make sure that they are following the necessary requirement to develop a better impact on the international business. Working in the fashion retail and providing different product and services as the market competition is very high with top end companies in Dubai. Dubai is one of the widest market sectors for all the retailers and top brands(Poulis, (2020)). Every brand is working in Dubai to develop the range of there market and make people aware about theservices they are offering. Dubai is one of the biggest international markets where different brands work. It is also known for its tourism as Dubai is leading tourism place globally. The Culture of Dubai is totally different from many of the European country and Asian country. The clothing culture and the language is different in Dubai which can be a major factor for the Primark to maintain while working in international market. Marketing issues for Primark in Dubai is that it is very competitive working in UAE. The cultural differences between the United Kingdom and other countries, as well as the Dubai culture, must be understood because individuals in Dubai live in a variety of ways.The Country has a secured culture with their behaviour and process of working, their clothing is different from other countries, the weather is Hot and the living style is different. The apparel industry's restrictions must be understood by the companies that work in it. The country operates under Sharia Law, with reasonable and decently dressed citizens.People used to sip tap water after removing their shoes when visiting someone's home.Respecting the women in emirates are essential for the people to work in Dubai. There is necessary process which the company and employee need to understand as they don’t drink and drive, no photographs of government building are allowed.
Marketing related issues
The marketing department of Primark need to work on different stages to increase and make people aware about the Primark to increase business through media and news etc.
Dubai is one of the developed countries with different culture of eating and living as well have different culture and behaviours of people which the company need to understand before investing in international market strategy in UAE (UNITED ARAB EMIRATES, 2021). The GDP and market value of the Dubai is very high as compared to UK and it can be a great opportunity for the Primark to increase the business in country(Palmer, 2020). It is one of the most visited places by tourist and it can also help in giving more business to the Primark as the tourist can be attracted to increase business.Primark could focus on international tourists as a target for company development, and people working in Dubai from other countries are a good target for Primark to supply low-cost products and services in order to get better outcomes. The culture of the customers can vary from different situations as this can lead in choices and trends.
Primark strength are that it is leading brand in clothing retail in UK, Primark are providing the same quality product as compared to competitor in lesser price by 30% to 40%. Selling product and services at low prices helped Primark in reaching to the goals and objective(Quezada& et.al., (2019)).The Company needs to work on Strength to develop better business in Dubai market with their brand values and reputation to help in getting better performance.
Primark as a leading brand and low-cost product range, it is lacking because they are not selling there product online. The management of the Primark have faced a lot of issues from the government as the organization failed to pay more than 9000 labours wage in UK(Taghavifard& et.al., (2018)). The target market is tourists and people from other countries who work in Dubai; as a result, customers must give low-cost services, and online marketing must be created as the influence of COVID-19 may increase, and tourists may not be able to take advantage of the internet market.
Opportunity for the Primark is that Dubai is the place where the company can get a huge audience from Dubai as well around the global as tourist. They can expand the business in Dubai to reach to maximum people of different country at one place which can help them in development and promotion of the brand. Working in new culture of Dubai the Primark can expand their clothing from Dubai culture to increase better business. It can lead to development in sale of product and services, the company can use the culture of Dubai to attract through the themes in stores. Working on the change needs to provide by the Primark to offer those product and services which are in trend in Dubai culture and ethnic wears.
Working in retail sector is known for its intense competition in market. It is crucial for the Primark to know its competitor because there are a lot of competitions in market which can be a threat to its business for example Tesco, Sainsburys’, Aldi etc. Focusing in Dubai as an expansion place they need to focus on the culture of Dubai and they need to provide necessary process to fulfil the requirement for example, Dubai is drug free and the clothing is different which the company need to work on to make better impact in Dubai market (Esteves & et.al., (2017)). Working on the culture is essential as the company is working in UK and they are expanding in new market of UAE where the people works differently.
Political factor refers to the policies and guidelines made by the Dubai political influence. It is crucial for the Primark when they are expanding the business in international market. They need to follow the proper political policies of that country to work. It includes the currency change, import and export policies of country. The culture of UAE has different political policies which the companies need to make sure to follow, the policies related to the clothing and working culture (Yatsenko&Dmytriyeva, (2018)).
Economical factor refers to the economic stability of the Dubai. It is very important for Primark to measure and understand the economic stability of the country they are looking to expand business in. The economic stability of the UAE is very stable and the company needs to make sure they are utilising the culture preferences in the UAE so that they can lead better performance(Yang, Sliusarenko& Ferraro-Doucette, (2020)).
Dubai is having different culture and behaviours which involve different fashion and working. It is crucial for the Primark to manage the business production and products to match with the culture with target audience. For Primark the change in social trends is essential to consider as they need to provide the change in workplace and utilise the culture of UAE in benefits for product and services. The company can provide the necessary clothing which are in trends of the market and company can produce the cloths to evolve business(Mak& Chang, (2019)).
Technological factor helps in increasing the performance of Primark better in Dubai so that they can increase their production on big level and sell to market for a better price. The utilisation of the technologies in the culture of Dubai is high because they are economically stable and they are utilising the best technologies. The Primark needs to understand the use of technologies in the market of UAE to increase their performance by developing fast way. The culture of technologies needs to be adapted by company to increase working performance in Dubai.
Legal factor involves the legal terms and legislation of the country in the fashion retail field including the equality. It is crucial for them to match the legal factor to work with no issues in the market. This helps in making things better when the organization follows all the legal factor of Dubai. Primark need to follow the legal legislation of the government of Dubai in the workplace to increase better performance, the safety for their women employees and the policies of protecting the people
Working on the CSR projects from Primark and also providing the environment safety through awareness and also by promoting no plastic bags and making an awareness in country(Mlecnik& et.al., (2020)).The environment is Hot in the Dubai for which the company need to provide the invention of product to increase better performance. This can lead to understanding of culture of UAE for better market.
Hofstede’s Dimensions of Culture
From the outset to the correlation of numerous societies from different nations and how they reacted to various products, cross-cultural analysis was conducted.
This illustrates the employee's power limit and workplace inequity. From the perspective of a lower-level follower, inequality and power are examined.
- Individualism vs Collectivism
It shows the power difference in the culture of place, this can affect the business for the Primark as when the low power is their it tends to Egalitarian and the high goes for Embrace Hierarchy of the business.
This embrace the working in the country with the power importance and the nurture importance to be calculate.
It refers to the process of changing in the process of working where the uncertainty is being shows as weather the culture and place is making a comfortable or uncomfortable uncertainty in the workplace for Primark.
- Long term orientation vs Shorty-term orientation
It reflects the ways the organization is taking the culture and working in the market to deal in the better place for their growth, including the long- and short-term organizations for the business growth considering in mind while working.
Providing the understanding of the satisfaction in the workplace which shows the ways the Primark are developing their business for the company in new culture of UAE.
Working in new market there are a lot of options which a Primarkcan choose while working on international strategy to expand business. Primark can choose different methods of market entry to work in new market or target market. Primark target market is, Dubai and they are working in Fashion retail sector. There are lots of options from which they can choose to develop as they need to develop strategies to increase higher performance in workplace.There are market entry process which the company can work in to develop their expansion in UAE market. They need to understand the cross-culture and working of the people in Dubai so that they get better employee hiring from the place and create impact on the market.
Retailer is those who buy products in the bulks and sell the product to the customer in segments. This is one of the methods to enter in new market, the advantage of this method is that it provides the stock in bulk and can be sold separately. The disadvantage of this method is that the retailer will have no role in any dispute of product and the partner need to bear all the loss in this way.Primark need to develop a better understanding of the market culture and work on the cross culture of UAE to develop necessary decision for the business and their product to impact the UAE market. They need to make sure that they are increasing the necessary change in workplace for their increase in development process. To provide a change impact on business it is crucial for Primark before entering to know the market situation.
Direct exporting method refers to the process in which the company choose to export the product and services directly in the country. This is one of the methods which are used by many of the organization and Primark can use this to sell in the Dubai market. This will remove the middle man from the business which can help the organization in increasing Primark profit.It can be beneficial for the Primark as they can use the direct online exporting for the business which will provide them in getting better result. when the company is not getting the desire understanding of working in the direct market then this can be beneficial to work in Dubai for Primark.
Licensing refers to the process of working in the market by selling the license of the Primark to the local people, to the people who are interested in the working of organization. They can get the license from the organization and can sell the business product and services and can make the profit out of it. The disadvantage of these licensing is that it makes a lot of theft which will increase in business due to unprofessional business.If the company gets connect with the official people to assign the market of their product and services in Licensing to other people of Dubai, they can get better results in market which can lead them in getting the resources of developed performance. As the local authority know the market better and understand the culture of place.
Franchising is a form of business in which the owner of the services or product obtains distribution through an affiliated dealer. Franchising ownership is one of the major used entry methods by the organization in business.
Primark should opt for direct exporting when working in the new target market, because it will help them in removing the middle man and also contacting directly to the customers. The organization have working in retail industry so it will be great for them to work in direct exporting of product in new market to increase the productivity and profitability of business.For example Ali baba export directly in market without any official stores in their starting period and they get huge success which is helping them in getting better result in China market.This can help the Primark in getting better response from market audience which can help in getting the objective achieved by business. This is vital for the company as the culture different between the UK and the UAE is very different. The company need to understand their process of working, ethical way of providing the services to increase the impact of workplace. There are several different which the Primark need to analyse to increase the performance on which they are working hard.
Segmentation, Targeting and Positioning
Segmentation refers to the process of segmenting the target market into small segments to work and target customer for its product and services. Primark works on the fashion industry retail sector with the aim to provide fashion to the people with its pricing strategies of low price. Expanding business in Dubai with the aim to get more of international clients as well to represent it services in market(Sultoni, (2019)). Primark need to make the segmentation of the target customers in UAE, the market is very competitive and they need to develop an understanding of the change in workplace. When the Primark are focusing in the people who are working from other countries and the tourist as their target segment, they also need to work on the local market segments to increase their performance. The major segmentation is based on the income as the company is focusing on the middle-class people as the ration of the middle-class people are high in market. This provide a better business segmentation to the company which lead to focus on limited target and can make strategy accordingly. This can evolve better to get growth in market by working on cultural ways of clothing in their product range to increase the market for the Primark in UAE. When the company will work on the cultural factors, they can increase their chances of getting better results to get profitability in market.
Targeting refer to the process of focusing on segmented market and making strategies to achieve business. This includes making a particular target of audience from Primark to target so that they can make their product and services accordingly. It is crucial for them to make the best use of segmented market and target the factors to increase the efficiency of result high(Riadil, (2020)). Targeting the international tourist and the working people to provide them with the low cost of product and services so that they get better affordable clothing and can help in getting quality product in low pricing. The company also focusing in giving the cultural product according to the UAE and developing more ethical ways to develop business.
Positioning refers to position the brand or organization in market. Primark need to focus on the areas where the transport and facilities are easily available for customers so that they can get more audience in market(Kang & et.al., (2021)). This will help them in attracting more customers to work on and also develop their chances of getting better result.Primark need to provide the positioning in the places where the customers get better attracted, if the company works on services and product near the Mosque nearby places and the Stores near airport. This can lead to better results as the culture of UAE follow the Mosque and they are following the ways and regularity to go to Mosque. The stores nearby Mosque can help them in getting more attraction of audience and near airport it can lead to attraction of tourist.
Primark are willing to impact the Dubai market as the majority of brands working in Dubai are of luxury and costly brands which majority of people are not able to access the services due to high prices of luxury brands. For that Primark are utilising their production to sell in Dubai to impact the Dubai market and reach new customer and provide them services of Primark.
Marketing Mix and Recommendation
Marketing mix is a tool which can be used to identify the marketing status of the business. This helps in getting information about the market so that company can utilise it to do better impact on Primark in expansion to Dubai. It is a method which helps organization in analysing the market better and takes decision accordingly.
The pricing techniques employed by the company to market its products and services are referred to as price. Primark focuses on bringing low-cost products and services to market in order to reach a bigger audience and increase profits. This aids them in achieving Primark's goal and objectives. Primark manufactures its products in India, Bangladesh, and Pakistan, for example, which helps them keep the cost of their products low so that they may offer them with a low-price approach in the market.(Anjani, Irham&Waluyati, (2018)). Low pricing of product can make them increase in results as their main focus in of giving the better quality to the low class and middle-class people with quality product.
Company needs to develop the strategies to increase the process working fast of Primark as the market competition is very high and they need to make it easy for their customer to get satisfied fast. Primark also need to make sure that they are developing the quality of product and just not focusing on the pricing of the product to launch in Dubai(HOW WE DO IT, 2021).
Promotion refers to the strategiesPrimark use to develop market awareness in market. Primark use both online and offline promotion of there services which they offer to customer. They are selling fashion products to customer and they are promoting their product and services through social media, print media and online digital media to promote their product and service. Promotion helps them in getting better results and also makes people aware about brand (Primark Marketing Mix, 2021). The promotion is done on both the platform to increase awareness of services form brand in UAE (Fraser-Arnott, (2020)). The company is following the online and offline ways of promotion to increase better impact. The promotion strategies are working on the change of Primark new ways of promotion on online marketing. The change in social factors and trend in market is looking for more online connectivity. The online generation is more active on social media promotion which can be use by the company to enhance the working on business.
Product refers to the product and services which company is selling in market to its customer to get the profit out of it. Primark products include clothing and fashion accessories, women products, men products, child products etc((Wieland, (2018)). the company works in new technologies and increased workers to improve the quality and design of the product they are offering. Primark put can utilise different country which are under developed, Primark utilise their market to produce low price product for the business. It helps company in getting more of the audience and produce bulk of production at a lower price cost.The product strategy are that the company is focusing in increase the variety of product range and services which are having different option to customers to increase the sale of business. This helps the company in offering better and different product and services to people which can lead them in getting better results for the market in UAE.
Primark need to start selling product and services on the online market as well to develop their business in market. Most of the people are using technologies to buy product from home itself. The pandemic is affecting the business of organization and it is crucial for the Primark to start there online selling of product and services.
Places refer to the places where the organization is expanding its business or already positioned its market. It is crucial for the Primark to choose a place in the new market of Dubai where they can get transportation facilities and other amenities nearby so that it is easy for the customer to come and visit the stores. These factors help the business in getting more audience from the target market. Working in the retail fashion industry it is crucial for the business to cover the areas where they can get better result in new market and follow the trends and structure of working(Nuraini&Kurnianingsih, (2021)).The place strategy for the company is to involve the positioning of product and services, and developing the necessary increase in business for development of company awareness and attraction of audience for business.
To recommend Primark need to consider the culture and belief of the Dubai local as they need to sell, they product in Dubai market and they need to make sure that they are following their culture and not hurting their sentiments through any of their services. To recommend Primark need to develop the place of their brand in new market, Dubai is one of the premium places and have different type of luxury brand working in the country. It is essential for the Primark to follow the standards and maintain the business quality to work in Dubai with its culture and belief to impact better in market.
From the above report it can be concluded that working in new market need to have a proper planning and understanding of strategy which the company will make to impact the business. It is essential for the Primark to understand the culture and marketing issues of the country they are planning to work in. International strategies are important and they need done on wider scale to control the conflicts. SWOT and PESTEL are very vital for the business to understand the macro and micro factor of the country and Primark. Further the report has concluded that the marketing mix helps in getting the understanding of market situation and analytics to make better decision for business.
Books and Journals
Anjani, H. D., Irham, I., &Waluyati, L. R. (2018). Relationship of 7P Marketing Mix and Consumers' Loyalty in Traditional Markets. AgroEkonomi. 29(2). 261-273.
Esteves, S. C & et.al., (2017). A Strengths-Weaknesses-Opportunities-Threats (SWOT) analysis on the clinical utility of sperm DNA fragmentation testing in specific male infertility scenarios. Translational andrology and urology. 6(Suppl 4). S734.
Fraser-Arnott, M. (2020). The Marketing Mix in Parliamentary Library Websites. Journal of Library Administration. 60(8). 875-888.
Kang, J. H & et.al., (2021). An empirical modeling approach to predicting pollutant loads and developing cost-effective stormwater treatment strategies for a large urban watershed. Science of The Total Environment. 760. 143388.
Mak, A. H., & Chang, R. C. (2019). The driving and restraining forces for environmental strategy adoption in the hotel industry: A force field analysis approach. Tourism Management. 73. 48-60.
Mlecnik, E & et.al., (2020). Policy challenges for the development of energy flexibility services. Energy Policy. 137. 111147.
Nuraini, R. A., &Kurnianingsih, H. (2021). Marketing Mix Effect on Purchase Decision of Traditional JamuSabdoPalon. JurnalMantik. 4(4). 2478-2485.
Poulis, K. (2020). Punctuated epistemology in international marketing strategy: A Whiteheadian remedy. Marketing Theory, 20(3), 363-384.
Quezada, L. E & et.al., (2019). Measuring Performance Using SWOT Analysis and Balanced Scorecard. Procedia Manufacturing. 39. 786-793.
Riadil, I. G. (2020). Tourism industry crisis and its impacts: investigating the Indonesian tourism employees perspectives’ in the pandemic of COVID-19. JurnalKepariwisataan: Destinasi, Hospitalitas Dan Perjalanan. 4(2). 98-108.
Samiee, S., &Chirapanda, S. (2019). International marketing strategy in emerging-market exporting firms. Journal of International Marketing, 27(1), 20-37.
Sultoni, M. H. (2019). INTEGRATED MARKETING STRATEGY FOR BEVERAGES FRANCHISE INDUSTRY. JURNAL MAKRO MANAJEMEN. 4(2). 170-178.
Taghavifard, M. T & et.al., (2018). An extension of fuzzy SWOT analysis: An application to information technology. Information. 9(3). 46.
Wieland, J. (2018). SME Marketing mix standardization in the B2B market. Journal of Management Policy and Practice. 19(1). 45-55.
Yang, R., Sliusarenko, A., & Ferraro-Doucette, E. (2020). Everlane: a ‘radically transparent’fashion company disrupting the industry. International expansion strategy.
Yatsenko, O. M., &Dmytriyeva, N. O. (2018). Determinants of formation and development of international e-commerce. Actual problems of international relations. (135). 82-100.