Global Marketing Management

Answer :

Introduction to Global Marketing Management

Marketing at the global level has become necessary for organisation in the present era as large number of challenges is present in the business environment due to which companies are not able to accomplish their desired goals at international level. Further, it is a well known fact that at global level, market size is very wide and due to this reason, effective marketing strategies are required for the growth of company. Moreover, ultimate objective of every business is to develop awareness in the market so that its brand may become popular worldwide. The brand owns the high street clothing retailers Burton, Evans, Topman and Topshop and out of this chain, the company has been selling large number of outlets in different countries. The group has more than 2500 outlets in UK; thus it is considered as the largest retailer in the same sector. The company had a large factory in Leeds which was visited by the Princess Royal in 1934. The brand value of the group has been persuading celebrities as well towards the outlets.

For conducting the present study, organisation chosen is Arcadia group that is a British multinational retailing firm headquartered in London. At present, company is planning to open its stores in the market of Nigeria for which global marketing management is essential. Through marketing strategy, entire range of products of company can be promoted easily. Various tasks have been covered in the study which involves the competencies of brand, external opportunities for the firm etc. Different strategies have been mentioned in the study on the basis of which Arcadia group will be managing the business activities.

1) Competencies of the Brand

Arcadia group product range involves clothing, accessories and shoes which are popular in the market of UK. Main competency of firm in the market involves customer benefit where organisation strongly focuses on providing large number of benefits to the target market. Further, in the market of UK, large number of consumers prefers to buy products of Arcadia group and they are satisfied with it. Therefore, this core competency can also support management in the Nigerian market as company can highlight main benefits which customers can obtain after purchasing its product range. Through this, Arcadia group can utilize the customer benefit as core competency at international level. Ability to offer differentiated product is another key competency of Arcadia group and this can be utilized at international level where company can market its product in a unique manner and it can be highlighted that no close substitutes of these products are present in such market. This can support the enterprise in attracting large number of customers for longer period of time.

Value for money products is also a major competency of firm where in market of UK, products of company are perceived as offering value for money. So, this can be utilized at international level where company can present the benefits of consuming its product range as being more in comparison with other products in the market. High quality product is another competency of business enterprise and this is the main reason behind rise in sales volume of company. This can be used at international level where customers can be targeted on the basis of quality. So, all these core competencies are effective and can be used by the management for enhancing the sales along with profitability level in the market. At international level, competition level is quite high and all these competencies can provide base to the firm for accomplishing the desired goals and objectives.

Internationalization theory has been used by the organization to measure the international behaviour of the organization those who are entering in the global market to serve their customers. The internationalization theory mainly focuses on the three-factor that is the timing of entry, effective selection of market and selecting appropriate entry mode for internationalization. Timing of entry is the foremost decision taken by the Arcadia group to expand their activities in the abroad so it is considered as the essential variable that assists in understanding the relationship of the other two element also. According to this theory it focuses on the two intermediate products that is knowledge flow and flow of raw material from upward to downstream. However, internationalization theory of Arcadia group mainly centre upon the flow of knowledge. This can be used at international level where customers can be targeted on the basis of quality. So, all these core competencies are effective and can be used by the management for enhancing the sales along with profitability level in the market.

2) Analysis of Strengths and Weaknesses

In order to better perform in the international market, it is required for the firm to analyse its strengths and weaknesses in advance so that overall efficiency of study can be enhanced through this. Main internal strengths of company are

  • Ability to offer value for money products
  • Moderate price
  • High quality commodities
  • Product differentiation
  • Effective marketing strategies
  • Strong brand presence in UK
  • large number of stores
  • Wide collection
  • Knowledge of international market
  • Skilled workforce

So, these are some of the main strengths of Arcadia group which provides base to the enterprise in serving its target market. Further, company operates in highly competitive market due to which it is necessary to focus on its key strengths so that overall productivity may be enhanced. With the help of this, organisational performance can be enhanced. All these strengths including competencies can be better utilized at international level so that target market of Nigeria can be attracted easily and it is favourable for the business in every possible manner. In short, it can support the enterprise in gaining competitive advantage and can assist to deal with large number of challenges. On the other hand, some weaknesses of Arcadia group are present which reduces the efficiency of organisation and they are

  • Weak presence at international level
  • Lack of technological advancement
  • Relatively small as compared with other brands

So, these are some weaknesses of Arcadia group which reduces the efficiency of enterprise at the time of operating in the market. Further, corrective actions have been taken by the management so as to overcome with all the weaknesses and through this; company can better perform in the international market and can enhance its brand image also. Apart from this, it will become easy to deal with the condition of rise in competition level in the market along with other challenges that are present in the business environment.

Apart from this, transaction cost theory is based on three main categories such as search and information cost. Under this management of Arcadia group examines the type of goods that are available in the market with low prices. Furthermore, bargaining cost is the second element which serve as the final price for the agreement. In this regard, bid and ask can also be referred so as to form the long term contract with other party. It facilitates to determine smooth flow of production. The third element is of policing and enforcement cost wherein other party lays emphasis on terms of the contract. These terms facilitate to take appropriate action on right in accordance with legal system. Owing to this, these features need to be referred while taking decision related to strengths and weaknesses.

3) Analysis of Opportunities and Threats

Market, where Arcadia group operates, is full of opportunities and they can be grabbed by business so as to serve its target market in a better manner. Main opportunities present with company are as follows

  • Expansion at the international level
  • Growing online market
  • Introduction of advanced tools for offering products
  • Increasing awareness towards sustainability clothes
  • Changing market trend

These are some of the opportunities which are positively affecting business enterprise. Main opportunity present with company is changing market trend where customers prefer to buy the products such as clothes which are eco - friendly and due to this reason, organisation has altered its operations and main focus is on producing sustainable products. Apart from this, recycling of waste technique has been adopted for the betterment of society. Further, online market is growing rapidly and this can directly benefit the firm as management can offer its product range with the help of website and this can support in increasing the sales volume along with profitability level as well. On the other hand, various threats are present in the external environment where Arcadia group operates and they are as follows

  • Political barriers such as laws and regulations
  • Economic downturn
  • Rising environmental issues
  • Rapid change in technology

These threats are affecting the business operations and for the same, management has taken large number of initiatives so that market presence at international level can be enhanced easily. In short, by dealing with threats, firm can promote itself as a better brand and this can boost the overall productivity. No doubt, outside influences directly affects the business operations and it is required for the organisation to develop effective strategies so that overall impact of external influences can be reduced to some extent. Furthermore, all these factors have been ranked because corporation need to focus accordingly. For example, environment issues is the most uncertain issue which affect business to a great extent. Second is the economic downturn whereby overall performed of corporation get affected. Likewise all factors take place in the operation of firm and has negative impact accordingly. Pestle analysis has been conducted in the present study and this needs to be analysed so that market share can be acquired.


Arcadia group has been following political policies and strategies and that assists the brand to enter into different market places. Political aspects have been assisting Arcadia group to reduce the possibilities of legal issues. Tariffs, trade control, employment, discrimination law etc have direct influence on business operations. Further, firm has to strictly comply with all the guidelines introduced by government so as to operate efficiently.


Appropriate flow of resources is there in the economy which assists Arcadia group to invest in different projects and this also aids in expanding the business in other market places. The economy of UK has been supporting the business to raise the economic aspects. At present inflation rate of UK is 1.8% and due to this basic reason purchase power of customers have been influenced and they are not able to buy costly items.


The entire product line of Arcadia group is concerned with needs and demands of customers. The products are quality concerned therefore people prefer to purchase it highly.


The business has been emphasizing on technological aspects so that new products can be developed. Retail stores of Arcadia group have been using different techniques to manage internal business functions. Online shopping along with self service check-out points are the two new advanced systems adopted by firm.


Arcadia group has been showing great concern towards the environment; hence all the activities of a business are integrated with the environment. Recycling techniques have been employed and firm focuses on development of eco friendly products due to which its environmental impact in very minimum.


Arcadia group is following all the legal policies and strategies at the time of expansion and diversification. Payment of tax and other type of duties have direct impact on company. Further, taxes are paid by Arcadia group on time so as to satisfy need of government.

4) Factors Considered While Undertaking Competitor Analysis

Large numbers of factors are present which Arcadia group has to consider at the time of undertaking competitor analysis. Pricing strategy is regarded as the most important and while entering into Nigerian market, firm has to consider pricing strategy of its competitors so that decision can be taken regarding prices of products. Further, it is recommended to the firm to set low prices so that large number of customers can be easily attracted with the help of this. Every organisation which is offering clothing and other type of apparel in the market has set prices lower with an aim to strengthen the customer base of entity. Therefore, setting lower prices as compared with the key competitors can provide base to the enterprise for attracting customers in the Nigerian market. Generally, people living in Nigerian have lower purchasing power in comparison with people living in the UK and due to this reason, the pricing strategy is appropriate for the business enterprise. Marketing strategy is another factor which needs to be considered by Arcadia group while undertaking competitor analysis. Further, it is a well known fact that through appropriate marketing tools, firm can easily develop awareness in the market and each and every customer can know about its product range.

Arcadia group will be using Product Development strategy where in new and innovative products will be introduced at the market place for attracting more customers. Arcadia group needs to add quality facets in the products so that the brand value of business can be differentiated with other rivalries. Product development strategy will be useful for the business as through that, large pool of customers can be persuaded. The company will be able to segment different customers through new products. Thus, the strategy will be beneficial Arcadia group; hence it should be adopted.

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Therefore, by knowing the marketing strategy of competitors, Arcadia group can develop better strategy through which Arcadia as a brand can be more popular in the Nigerian market. This can support the business in enhancing overall market share in the Nigerian market and can support in grabbing other benefits as well. Competitor analysis is regarded as one of the most effective tools as through this; overall activities carried out by major competitors can be known easily which is beneficial for enterprise in the present era. Apart from this, developing strategy without obtaining competitor knowledge can be unfavourable for business and due to this reason, competitor analysis has its own significance and it assists the enterprise in gaining competitive advantage. The reason behind this is uncertainty about the future business activities. For example, competitors may be performing good at the marketplace and they may be able to meet expectations of the customer effectively. Owing to this, it is very important for organization assess the strategies of competitors and accordingly bring change in the own strategies so as to include customers. Here, information about competitors is the only base by which management can formulate appropriate policies to get competitive edge over competitors. Majority of companies are targeting customers by offering discount and other type of schemes. So, Arcadia group can target its customers on the basis of product differentiation and highlighting key benefits of product range. Therefore, this can provide competitive advantage to organisation in every possible manner and can provide reason to customers for purchasing the products of Arcadia group rather than other competitors in the market. For competitor analysis porter five forces model is also beneficial and it has been discussed below

Bargaining power of buyer

In the case of Arcadia group buyers have high bargaining power as substitute of products is easily present in the market due to which it is not possible for company to dominate the market.

Bargaining power of supplier

Large number of suppliers are present in the market who are supplying retail goods. Therefore their bargaining power is low and it is not possible for them to dominate the market.

Threat of substitute

It is high for company as every retail company present in the market are offering same type of products. Therefore, it is required for Arcadia group to focus on product differentiation.

Competitive rivalry

Competition level is quite high in the market where Arcadia group operates. Further, to deal with this issue firm has developed effective strategies.

Threat of new entrants

In retail sector no such laws and regulations are present which may restrict firm from entering into this market. Therefore, threat of new entrant is high for firm.

5) Target Market Selection

Arcadia group target its customers on the basis of country where different products are offered to the customers as per their taste and requirement which is beneficial for the entity in every possible manner. Selecting target market on the basis of country provides long term benefit as company can easily modify its product range country wise. Estimation of target market is little bit difficult for the business enterprise as large numbers of buyers are present who purchase clothes, shoes and other types of accessories. Segmentation criteria adopted by organisation is psychographic one where lifestyle and preferences of target market are considered while targeting them. Further, by adopting this segmentation criteria, business enterprise is obtaining long term benefit and it is appropriate at international level also. Consumers prefer to buy clothes on the basis of their lifestyle and it plays an important role.

Psychographic segmentation is the most appropriate for the Nigerian market and through this, customers can easily offer a wide range of products. Moreover, positioning of product is also necessary and for Arcadia group, firm can easily position its product range with the help of its attributes and special quality which may not be present in competitor’s product. Positioning with the help of product attribute is considered to be highly effective and it allows the business to retain its loyal customers for longer period of time. Customer type of Arcadia group is end customers and entire product will be offered to them with the help of physical stores. Therefore, it is also beneficial for company and in short, needs of target market customers can be easily satisfied with the help of this.

6) Overview of Marketing Objectives

At international level, it is necessary for the organisation to set marketing objectives so that overall performance in the market can be enhanced with the help of this. Marketing objectives set by Arcadia group for Nigerian market is to enhance the sales volume and profitability margin by 10 percent. In order to accomplish this aim, company will introduce sales promotion scheme and other additional offer such as discount. This can support in attracting large number of customers and can enhance the customer base of enterprise. Further, the objective set by organisation is realistic as effective marketing objectives set allow the firm to increase its sales volume along with the profitability. Apart from this, to accomplish this objective, time frame of four months has been set by the management which is favourable for business also. Through this marketing objective, it is possible for the business enterprise to comply with the actual needs and requirement of its target market and thus, it can act as a development tool.

Another market objective set by enterprise is to enhance awareness in the market of Nigeria so that more customers may know about the range of products sold by Arcadia group. This specific objective set can be accomplished by enterprise by adopting promotional tools such as advertising and through advertising, more customers would know about the products of company. Further, for measurement of this objective, market research can be carried out in order to know whether customers are well aware about the range of products of Arcadia group or not. The objective set by management for international market is realistic as through advertising, sales promotion etc., awareness can be easily developed in the market which is fruitful for business. Apart from this, to attain this objective, time period of five to three months is required and in this duration, the set marketing objective can be accomplished easily and effectually.

7) Critical Review of Entry Mode Strategies

In order to enter into the new international market, it is necessarily required for business to adopt appropriate entry mode strategy so that operations can be carried out in an appropriate manner. One of the most appropriate entry modes for Arcadia group is joint venture as by considering this strategy, firm can jointly work with another organisation so as to accomplish its desired goals and objectives in an effective manner (Modes of Entry into International Markets. Main advantage of using joint venture as an entry mode is that it supports in gaining access to expertise and it is not required to hire skilled workforce for the betterment of company. Further, sharing of risk of high leverage becomes easy and it directly acts as the development tool for enterprise.

Apart from this, organisation can easily adopt advanced tools for carrying out overall operations in the market. All these key advantages of Joint venture can provide base to Arcadia group in carrying out operations in international market and it will become easy for the enterprise to target its customers in highly competitive market. On the other hand, it is required for the management to consider disadvantage of Joint venture, that is, sometimes, objectives of the joint venture may not be clear, imbalance in level of expertise and partners may not provide enough leadership which is not in favour of the organisation. Furthermore, most of the management of corporation may not have clear information related to new market and they rely on the information extracts from research and development department. Owing to this, it is very important for corporation to assess the uncertainty about the future and bring modification in the current strategies accordingly. Apart from this, employees should be trained enough to cope up with change. Therefore, all these disadvantages of joint venture directly lead to decline in its efficiency. On the other hand, company is having less knowledge regarding the market of Nigeria and at the time of entering into International market, it is necessary for the enterprise to have proper knowledge regarding taste and requirement of target market. Control and risk can easily be shared by Arcadia group after working jointly with other enterprise and it can act as the development tool. Further, it is a well known fact that due to high level of risk, company has to face many challenges in the market and due to this reason; joint venture is beneficial for the firm in every possible manner.

8) International Marketing Mix

Marketing mix takes into consideration the key factors such as product, price, place and promotion which are directly associated with the growth of enterprise. Main products which will be offered to the target market of Nigeria involve shoes, clothes and other types of accessories. All the products of company are different from those that are offered by other companies in the market. By offering products in the market, it is possible for the enterprise to target its customers in a proper manner and in turn, it acts as a development tool. Further, quality of products has been kept high and this can support in enhancing the sales volume of business. Apart from this, moderate prices will be charged from the target market for the products and in short, penetration pricing strategy has been chosen with the help of which large number of customers can be attracted easily. This is directly beneficial for company. For promotion advertising and social media sites, it will be used with the aim to enhance the overall sales of company. Moreover, distribution of products will take place with the help of physical stores and this is also effective for the organisation.

Since Arcadia group has been expanding the business in Nigerian market place; therefore chief emphasis should be given towards all the elements of marketing mix. Having proper emphasis on marketing elements assists the business entities to persuade large pool of customers from different segments. All the elements are mentioned in the below section.


While establishing Arcadia group at Nigeria, the brand has to emphasize on including several categories of products like wise clothes, shoes and other accessories. Arcadia group has to make sure that quality facets are concerned in all the products so that large pool of customers can be attracted for the same. The products should have the utility to meet the demands of customers; therefore they should be considered as per the preferences of end users. Product must fulfil the needs of clients and since the economy of Nigeria is not so developed; therefore all the specified products should be value associated against money.


The prices of clothes, shoes and accessories should be affordable because in Nigeria, large number of population is living below the average standard life. Price penetration strategy will be adopted by the business where in at the initial stage, products needs to be promoted on lower prices and after acquiring limited market share, prices of the products can be raised. Prices are those aspects that encourages customers to buy the products in bulk quantity; therefore ultimate concern should be given towards pricing aspects. With the help of proper pricing policy, Arcadia group will be able to sustain at competitive market place.


In the contemporary scenario, all the business entities have been emphasizing on online delivery of products and services; thus in the present case as well, Arcadia group can also adopt the same mode of placing the product. There should be proper retail stores in Nigeria so that customers can get the services all the time when required. Places should be according to the convenience of customers so that demand can be fulfilled.


In order to promote the products, Arcadia group needs to adopt different promotional strategies so that business products can be promoted adequately at market place. Promotional strategies should be as per the use of products so that accurate information about the products can be provided to the clients. Thus, social media websites can be used to promote the products to the customers. Around 88% of the firms operating in the market are using social media for promoting its products and it is fruitful for business where proper information linked with product range is shared with target market.

9) Internal Marketing Budget Strategy

Marketing budget is necessary as in this; various factors are considered which are in financial terms. Market demand estimated is very high here where it is expected that large number of customers will prefer to purchase the products of Arcadia group. Further, in the first year, sales of enterprise are expected to be around 5 lakhs which can support in recovering all the major expenses. Net profit is expected to be around 3.5 lakhs after deducting all the major expenses such as marketing and other operating one. Apart from this, business has to consider some other costs so that adequate amount of profits can be earned easily which is fruitful for the business. This can allow company to gain competitive advantage and in turn, it can act as a development tool for the firm.


After carrying out the entire study, significance of global marketing has been known and it can support enterprise in dealing with the challenges that are present in the business environment. Further, due to rise in level of competition, marketing at global level has become essential especially for companies that are planning to invest in other markets. Further, the international marketing mix of Arcadia group is effective as through this, company can easily enhance its sales volume and this can definitely boost the profitability level of enterprise. Moreover, effective promotional tools are required to be adopted so that more customers may know about the product range.


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