7BSP1271 Assignment Two CASE STUDY 1
7BSP1271 Assignment Two CASE STUDY 1
Introduction
The present case study is based on a growing company that wants to develop its international marketing strategy. GLIMMER is a young and growing small-scale business which is situated in the UK. The company sell a wide range of precious metal jewellery both silver and gold at affordable price. The best concept about the company is designing unisex jewellery and selling it on an online website. The main aim of the firm is to show customers that precious metal jewellery is good to invest in as they are affordable/ pocket friendly. Lack of high street presence is the major problem as customers can only buy jewellery from the company’s website (Thomas and Maine, 2019). The company has recently launched its zodiac-based jewellery which has been a huge success. Moreover, the company has skilled employees with high levels of customer service. Now, the founders have decided to expand their business in foreign markets.
As people living in India always want to wear something ethnic according to their culture and always demanded jewellery made up of gold and silver. This is a great opportunity to expand business in the Indian market. But there are a few complications related to the culture and the new market in which the company is going to operate which will be covered in the study. The present study is going to provide effective market entry strategies that the company founders should use to enter the market.
Cultural considerations for the company GLIMMER
As the company wants to enter a new market that is India, it is very important to keep an eye on changing buying habits of people living there. The firm needs to carefully understand cultural considerations before entering the market (Crosby, 2022). As people nowadays are following their culture and buying things according to social beliefs and religions. This in turn will highly impact the success of business in both a negative and positive manner.
Gift-giving culture– In India, people attend different occasions such as marriage, engagement ceremonies, birthday parties or anniversary celebrations, they like to gift jewellery made up of silver and gold. Based on their culture and caste people give gifts to their loved ones (Rau, 2022). Before entering into Indian markets company needs to go through cultural expectations and norms associated with this culture in India. Being aware of such a culture will help the company achieve success. while understanding this cultural consideration, the company needs to make sure that they are having full knowledge of purchasing power of families in the target market because Indians are more conscious about pricing strategy.
Language and communication– This can be a potential barrier for the company in entering the Indian market. people living in the south zone such as Tamilnadu and Chennai generally prefer communication in their native language only (Crosby, 2022). Before entering a new market, the company needs to ensure that they are hiring people who know different languages so that they can easily promote products. This in turn will help the company in connecting with Indian people and build trust among them.
In India, there is a high demand for jewellery among men and children, therefore, the company needs to design jewellery for children and men by keeping in mind some special considerations in terms of safety and look (Ngan et. al. 2020). Before entering the market, the company needs to assess the local cultural norms related to gender and jewellery love by men such as jewellery related to sports.
Market entry strategy
Expanding internationally will help the company reach their target market and achieve its business goals immediately. Before proceeding with selecting a market entry strategy, the company needs to set clear goals related to business expansion and target market. There are different types of market entry strategies which can be used by companies to expand internationally.
Exporting market entry strategy: This is one of the best and easiest ways to enter foreign markets (Thomas and Maine, 2019). Here, GLIMMER can send its goods to Indian markets to reach its potential customers. Before applying this strategy, the company needs to do proper market research and determine the internal and external environment. With the help of exporting method company can easily learn how to compete with its competitors more successfully than ever before. The firm can export indirectly their products with the support of international distributors who distribute jewellery both online and offline. Building a new market entry strategy is not at all enough, the company needs to develop its marketing strategies too. As GLIMMER is selling products online via its website it can use social media marketing using social media platforms like YouTube, Facebook, and Instagram to reach its potential customers. This in turn will help in building relationships with local influencers who can influence people easily.
References
Ngan, O.M., Bergstresser, S.M., Sanip, S., Emdadul Haque, A.T.M., Chan, H.Y. and Au, D.K., (2020). Cultural considerations in forgoing enteral feeding: A comparison between the Hong Kong Chinese, North American, and Malaysian Islamic patients with advanced dementia at the end‐of‐life. Developing world bioethics, 20(2), pp.105-114.
Rau, D.V., (2022). Social and Cultural Considerations in Curriculum Design. In The Routledge Handbook of Second Language Acquisition and Sociolinguistics (pp. 97-110). Routledge.
Thomas, V.J. and Maine, E., (2019). Market entry strategies for electric vehicle start-ups in the automotive industry–Lessons from Tesla Motors. Journal of Cleaner Production, 235, pp.653-663.
Tien, N.H., Dana, L.P., Jose, R.J.S., Van Dat, N. and Duc, P.M., (2020). Analysis of McDonalds’ entry strategy into Vietnam market. International journal of advanced research and development, 5(3), pp.23-29.
Reading: Entry Strategies in Global Markets, (2023) [online]: available through < https://pressbooks.nscc.ca/nsccprinciplesofmarketingpartwo/chapter/reading-entry-strategies-in-global-markets/>
Volume of consumer demand of gold jewelry across India from 2007 to 2021 [online]: available through <https://www.statista.com/statistics/863148/india-consumer-demand-of-gold-jewelry/>
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