Global marketing management is referred as the activity in which manager of organization performs marketing of its goods and services on a worldwide scale (Global marketing, 2015). Marketing plays a crucial role for every firm especially in international market. This is because, with the help of given technique, manager of enterprise can carry out its efforts in terms of spreading information about the presence of brand in particular market in an effective manner. For the given report, UK famous fashion brand named as Karen Millen is selected which is planning to enter into the Indian market. The firm was found by Karen Millen and Kevin Stanford in the year 1981. In addition to this, it is a private limited company that is having its headquartering in Witneys, Oxfordshire, United Kingdom. Furthermore, the firm sells as well as produces a wide variety of products which includes tailoring cloth, evening wear and many other products etc. The firm currently operates 43 standalone stores and 46 concessions store in 23 countries and has the plan to increase it further (UK's fashion brand Karen Millen to finalise Indian partner soon, 2015).
In accordance with the given context, the report will provide description regarding the technique with the help of which manager of Karen Millen can conduct comprehensive micro and macro environmental analysis. Further, report will also showcase the critical evaluation of business strategy that cited firm can use in order to support the launch of brand in India. The report will also specify about an effective market entry mode that can be used by Karen Millen while opening store in the Indian market.
While making the decision with regard to enter into new market, it is essential for the manager of organization that he must gather enter information regarding the particular market. This is because, it is by complying with the given practices only, a decision can be taken by the manager of Karen Millen in terms of whether it is beneficial for it with respect to carry out the expansion of brand in Indian market or not. In this regard, two different techniques are identified with the help of which micro and macro environmental analysis of Indian market can be carried out (Svensson, 2002.. Here, the technique like SWOT can be used for the purpose to conduct micro environmental analysis. Likewise, the tool like PESTEL can be utilized by Karen Millen with an aim to identity the macro environmental factor that may cause significant influence upon the operations of firm.
Strength: The Indian market possesses biggest strength upon given aspect such as high purchasing capacity among citizens. This strength will provide opportunity to the cited firm with regard to set high prices for the product while launching it in the Indian market. Thus, through this way, Karen Millen can carry out the increment in its sales and profits within given specified time period. In addition to this, availability of huge pool of labor force can be regarded as another strong point of Indian market (Turner and Gardiner, 2007). The identified strength of market will be proved as beneficial for the company. This is because, with the help of given strength, manager of Karen Millen can meet its demand which is related to the employees in an effective manner.
Weaknesses: Low infrastructure facility and presence of huge poor population is being regarded as the major weaknesses of Indian market. The given weaknesses of Indian market may create many hurdles in front of Karen Millen. Here, due to the poor infrastructure facility within nation, it will become difficult for the cited firm with regard to select an effective location for the establishment of its store in market.
Opportunity: The FDI (Foreign Direct Investment) policy that is launched by Indian governmental can provide opportunity to Karen Millen in order to carry out the investment in Indian market.
Threat: There are various recognized clothing brands that operate in Indian market and which can be proved as the biggest competitors for Karen Millen. In addition to this, there are some states in India in which government intervention in major. Thus, if Karen Millen would select any of the state for store opening then it can face the threat of government intervention (Zou and Cavusgil, 2002).
Political: The political environment of India is stable and provides various opportunities to the international companies like Karen Millen. However, change in the international policy as well as interest rate of country will cause significant implications upon Karen Millen. For example, cited firm has decided to launch its product in the Indian market by selecting low pricing tactics. This objective of firm could not be met if government of India has increased the rate of taxation upon clothing products. Due to this, Karen Millen is forced to select the high pricing tactic for its product (Hewett and Bearden, 2001).
Economical: The current economic condition of Indian market is stable. Thus, it gives opportunity to the cited firm in terms selecting suitable pricing tactics for its product in an effective way. Through this way, firm can raise its profits and sales.
Social: For the manager of Karen Millen, it is necessary that before launching the product in Indian market, it must gather the information regarding needs and demand of Indian buyers. However, if firm would not collect the data with regard to the same then, it will not be able to carry out its efforts in terms of attracting the large number of Indian customers towards company in an appropriate manner.
Technological: India is the nation which can be considered as the synonym of technologically advanced country. It provides support to all the innovative technologies like E-commerce, CRM software etc. The firm like Karen Millen can take the assistance from given technologies in the process of distributing the product in Indian market.
Environmental: For the organization, it is also necessary that it must showcase its concern towards the environment of nation. The concern can be shown by the Karen Millen by producing product that would not cause any harm to the natural environment of country (Freytag and Munksgaard, 2011).
Legal: The Indian economy is regulated by different rules and regulations that need to be abide by the company that is planning to enter into Indian market. Here, Karen Millen has to follow all the regulations which are related to the launching and functioning of business in Indian market. However, if it is not being followed by Karen Millen then it will become difficult for the enterprise with regard to maintain the continuity of its operation within nation in an appropriate and successful manner (Jiang and Wei, 2012).
The firm which is planning to enter into the international market, it is necessary that it must prepare an effective objective with an aim to carry out its marketing activity. This is because, it is by taking assistance from the given objective it can be assessed by the manager of Karen Millen that whether it is going on to the right direction or not. In this regard, different marketing objectives are set for the cited firm with an aim to provide support to its entry into Indian market. These are all depicted in below:
These are being regarded as two basic marketing objectives that can be used by manager of Karen Millen while getting entry into the Indian market. Attracting wide number of Indian buyers within next five years of entering in the market is being regarded as the first marketing goal which is suggested to manager of cited firm. It is recommended because by relying upon the given goal, the information regarding the presence of brand in market can be spread by cited firm among its targeted customer (Gabrielsson, Gabrielsson and Seppälä, 2012). In addition to this, the given goal will also provides assistance to the firm in terms of meeting the final organizational objective of cited enterprise which is of raising the sales and profitability of the organization. Furthermore, five year time is allotted with respect to attain the first marketing objective of cited firm. The given time period is set because sufficient time will be needed by manager of Karen Millen with an aim to prepare the promotional plan for the purpose to attract large number of Indian customer. In addition to this, time is also needed with an aim to selecting the suitable marketing communication tactic.
Moreover, to enhance the market share of cited firm in Indian market by 20% within next five years is being regarded as another marketing objective which is being set for the cited firm. The given objective is recommended because with the help of it direction of firm can be set. Here, this objective can be used by Karen Millen as the measure for comparison. For example, after five year tenure it has been identified by the firm that its market share has not increased as per the set specified limit (Cavusgil and et. al., 2014). Then in the given circumstances, this conclusion can be drawn by the cited firm that the set marketing objective is not being met by it. Thus, as a result of it manager of cited firm can take appropriate action with an aim to carry out improvement in the given situation.
In order to provide support to the launch of brand in India, different type of business and corporate strategies identified that can be used by the manager of Karen Millen. It consists of following such as price penetration tactic and growth strategy etc. Price penetration tactic is the type of strategy which allows firm in terms of changing low prices for the product at the time of its launch. The given tactic is effective. This is because, by taking assistance from the given tactic both the specified marketing objectives of Karen Millen can be met. It is due to the fact that in this context it has been seen that Indian buyers are very price sensitive in nature and because of it they always prefer to purchase the product of that organization which can be availed by them at low prices (Chaiprasit and Swierczek, 2011). Thus, by using price penetration tactic for the different clothing product of Karen Millen, firm can attain its given marketing objectives in an effective manner.
Furthermore, growth strategy is being regarded as another tactic that can be utilized by Karen Millen with an aim to provide support to its launch in Indian market. In this regard, cited organization can achieve growth by introducing new product in market and by adding new feature in the existing product of organization. The given strategy will allows firm in terms of giving varied options with respect to the clothing products to the Indian customer. Thus, through this way only second objective of cited firm can be met which is of increasing the firm market share by 20% in next five years.
For the organization it is necessary that it must select suitable market entry strategy. This is because, it is with the help of given tactic only firm objective with regard to carry out the expansion of the operation of firm in the international market can be met (Keegan and Green, 2010). In addition to this, by using suitable market entry mode an effective presence in the international market can be marked by the organization. In accordance with the given context, there are different market entry modes identified that Karen Millen can use for the purpose to get entry into the Indian market. It consists of following franchising and joint venture etc. Franchising can be considered as the first option that can be adopt by the Karen Millen with an aim to get entry into the Indian market. Franchising is the activity of granting a franchise for the sale of goods and services to other firm that operates within same industry (Franchising, 2015). By adopting the given market entry option, Karen Millen can gain the benefits in terms of minimum amount of cost. In this context, it has been seen that firm has to carry out the different type of investments while opening the store in new market which are as purchase of land and constructing store in market etc. These all cost can be saved by the Karen Millen by selecting franchising as the option to get enter into Indian market. This is because, the given option will provides opportunity to cited firm in terms of utilizing the land as well as store of other company to whom it is granting the franchise. However, it has been critically evaluated that the market entry option like franchising reduces the firm control over the management of business. Here, manager of Karen Millen has to follow all the rules and regulations which is being framed by its franchising. Thus, it can be said that by adopting the franchising related option Karen Millen can lost its authority with regard to make the decision regarding its product in market in an effective way.
In addition to this, joint venture can be considered as another market entry option for Karen Millen. This option will provide opportunity to the firm in terms of forming partnership with the other organization prevailing within same industry. In this regard, manager of Karen Millen can form partnership with that Indian firm which has recognized name in the given market. By forming partnership with such type of firm, Karen Millen can achieve its marketing objectives in an effective manner. Furthermore, the risk of not achieving the success in Indian market can also be shared if the market entry tactic like joint venture will be selected by the cited firm (Ahmed and d'Astous, 2008). However, the market entry option will be proved as ineffective if Karen Millen would not carry out the selection of that firm that possess recognized name in the fashion industry. Overall, it can be concluded that among these two given options, franchising can be considered as beneficial option for the Karen Millen. This is because, by selecting the given option cited firm can save its different type of costs which is generally being invested by it while starting the operation of firm in new market (Johansson, 2000).
Besides this, suitable marketing tactic identified that can be used by manager of Karen Millen with an aim to provide support selected marketing entry option such as franchising. In this regard, all the different type of marketing communication tactic can be used by the manager of cited firm. It consists of following such as placing advertisement about the presence of brand in Indian market in television and using different social networking sites like Facebook and Twitter etc. With the help of all these given promotional means, manager of Karen Millen can communicates its customer regarding availability of its franchising store in Indian market. In addition to this, these all given means can also be used by the cited firm for the purpose to influence and attract the large number of Indian customers. Due to this, it can be get the benefit in the form of increased profits and sales (Hennessey and Jeannet, 2005). Overall, it can be said that by taking assistance from given marketing tactic an effective support to the Karen Millen franchising market entry tactic can be provided.
After carrying out the selection of suitable market entry tactic for the organization, in this step manager of Karen Millen has to carry out the implementation of given tactic. In addition to this, it is given step only, manager of cited firm has to adopt the effective marketing communication strategy that will be used by it with an aim to raise the sales of its clothing products in Indian market in an effective way. The detailed process with regard to carry out the implementation of marketing activity in Indian market for Karen Millen is described in below:
Carrying out the environmental analysis: At the first step manager of Karen Millen has to carry out the environmental analysis. By performing this activity information regarding all that type of organizations will be obtained by firm that provides clothing product in Indian market (Jeffs, 2008).
Selecting the suitable franchiser: After generating the information about the different type of Indian brands, in this step manager of Karen Millen would select appropriate clothing company to whom which it can grant license with regard to use the products under its own brand name.
Choosing best marketing communication option: After selecting the suitable franchisee for the firm, in this step manager of Karen Millen has to choose the best marketing communication tactic. In this regard, following options are available to the firm such as newspapers, social networking sites and television etc.
Implementation the selected marketing communication option: In this step, organization will select appropriate tactic and implementation of the same will be carried out by it. Among all these given tactic, social networking sites will be considered as the best option for the enterprise. This is because, with the help of given approach large number of young Indian buyers can be attracted by the firm (Mooij, 2013).
Finally, attracting large number of Indian buyers: It is the outcome that Karen Millen will achieve when it uses different means of promotions.
Time line has been produced which will provide the description regarding the time which needs to be invested by Karen Millen with an aim to accomplish all these given marketing activities.
It can be stated from the give report that for the manager it is necessary that it must use the tool like PESTEL and SWOT analysis with an aim to get the information regarding the market. It is due to fact that with the help of given tools only the an effective decision in terms of firm entry into the new market can be taken by the manager of organization in an effective manner. In addition to this, for the firm it is also required that it must select the suitable marketing communication approach. This is because, it is through such practices only the respective buyers of the product can be influenced by organization.