Introduction to International Marketing Management
In the present context doing business globally is the foremost objective of the organization that generally focuses on enhancing their market share as well as their presence in the international market (Terpstra, Foley and Sarathy, 2012). Within contemporary scenario that is of international business viewpoint, there are numerous of business organization that generally focuses on developing competitive advantage through driving market or production activities. Therefore, presently the report focuses on case study of Prada, one of the well-known Italian fashion enterprise, is able to acquire a particular international competitive advantage based on both the activities. However, the present report focuses on assessing the different theories of marketing and the theories that assists the Prada in expanding their market share. Furthermore, report will also analyses the external environment factor that support Prada to enter in the international marketplace.
Different Marketing Theories
In order to expand activities in the international market it is essential for management of Prada to focus on different marketing theories that would support them in determining their target audiences as well as it will also assists in segmenting and positioning their fashionable travel accessories in the international market (Papadopoulos and Heslop, 2014). In addition to this, through understanding different marketing theories this will support the Prada in taking strategic decisions related with expanding their business activities in the international market. The different marketing theories are...
Marketing Mix elements
Another marketing theory is focusing on marketing mix elements for Prada so that they can easily enter into the international marketplace. The marketing mix element generally focuses on four elements that is Price, place, promotion and products (Leonidou, Palihawadana and Theodosiou, M., 2011).
The Prada products basically consists of wide range of luxurious and high end cloths for both men and women, travel accessories, cosmetics, fragrances etc. all these products are the key element that Prada will distribute within the market to keep attract their customers.
In the present scenario, Prada is operating their stores in 65 different countries with 250 total number of stores. Further, to succeed in the competitive environment Prada may also adopt online technique for distributing their fashionable and stylish products to the international customers.
Another effective element of marketing mix is focusing on pricing strategy for their variety of fashionable products so that they can easily satisfy and meet the requirement of their customers (Kemper, Engelen and Brettel, 2011).
Last element of marketing mix focuses on promotion of Prada fashionable products within the international market. For promotion Prada features their ads in Vogue and Elle magazines. Furthermore, the brand also host fashion shows for displaying their variety of products. Thus, both the marketing tool are considered as persuasive tool in fashion industry for enhancing the brand image in the international market (Piekkari, Plakoyiannaki and Welch, 2010).
Therefore, in order to take any strategic decisions for Prada regarding entering into the international market then SWOT analysis would be effective marketing theory for Prada. However, marketing mix theory is being used by Prada brand for ensuring proper selection of each and every element that result in successful accomplishment to capture international market.
Globalization: Advantages And Disadvantages
Globalization is the key aspect in the present scenario that has huge impact on the fashion industry as through globalization Prada can easily target large customers across the international boundaries. Various luxurious fashion brands like Louis Vuitton, Michael Kors, Gucci etc. has experienced immense growth with globalization of their business activities. In the present scenario, fashion industry has been increasing at the fast pace with the changing needs and preferences of the customers. According to Ruzo, Losada and Díez (2011) the favourable impact of globalization over the fashion industry is that through this Prada can easily provide latest fashionable clothes and accessories to the global customers (Ruzo, Losada and Díez, 2011). Furthermore, another advantage of globalization is that it result in modifying the individual preferences as they would follow the latest trends and unique stylish clothes. As per the view of Sethuraman, Tellis and Briesch (2011) the advantage of globalization is that through this Prada can easily unleash the different cultural designer clothes that depicts or showcase the traditional and cultural aspect of countries (Sethuraman, Tellis and Briesch, 2011).
On the other hand, there are also some disadvantage or adverse affect of globalization to the business activities of Prada that is according to Nath, Nachiappan and Ramanathan (2010) with globalization company outsource their products as well as services in the totally different market. Thus, it results in incurring high cost for Prada to outsource their production (Nath, Nachiappan and Ramanathan, 2010). Therefore, to overcome the financial burden company often raise the prices of their products that act as negative impact on the image of company. As per the view of Rodrik (2011) another disadvantage of globalization is that with the increasing technology Prada often upload the images of their designer clothes and accessories over the internet medium that result in stealing of their design (Rodrik, 2011). Therefore, it may result in duplication of the products.
Furthermore, there are various relevant factors of globalization that are applied to Prada that support the firm in expanding their activities in the international marketplace that is-
The foremost factor of globalization that is being applied to Prada for expanding their activities in global market include increasing technological factors. Enhancing technological factor also help the Prada in globalizing their products and services in the different international market (Hamilton and Webster, 2012). For instance; with the increasing technological factor customers can conveniently purchase the fashionable products and clothing apparels through using internet medium.
Change in the taste and preferences of customers
Another relevant factor to Prada is continuous change in the requirement and preferences of the customers also result in globalization of their products and services (Arnold, 2004). For instance; with the increasing competitors in the fashion industry there are wide variety of options available to the customers. Therefore, changing taste and customers are willing to purchase foreign products support Prada in initiating globalization activity.
Fashion industry is consider as highly volatile industry that keep change with the emergence of new trends and fashionable clothing products in the market (Turnbull and Paliwoda, 2013). The different premium brand existing in the fashionable industry include Gucci, Louis Vuitton, Burberry etc. the foremost premium brand in fashion industry is Prada that is known for leather travelling accessories that matches the individual lifestyle and needs of the customers.
For instance; Gucci is also considered as renowned brand in the fashion industry that focuses on distributing travel accessories to the different segment customers. While, Prada is highly luxurious brand that deals in providing premium travel products and leather accessories to the customers. Both the brand has international presence in different marketplace that keep attract their large customers towards their fashionable and stylish accessories and products (Moore and Doyle, 2010).
However, both the companies has distinguish business approach from each other that is Gucci is the one that determine the power of celebrity endorsement by keep associating with the great American and Italian movie star as compare to Prada. On the other hand Prada has not initiated celebrity endorsement for promoting and marketing their products and accessories in the international market.
Furthermore, through comparative analysis it can be stated that Gucci also engaged in aggressive international expansion through keep focusing and targeting different important cities such as San Francisco, New York, London etc. on other hand, Prada has only focuses on acquiring the domestic share by keep targeting to meet the demand of domestic customers (Grönroos, 2011). It can be also said that Gucci has also different licensing agreement for enhancing their brand image in the international market that is not being used by Prada to extend their brand image.
From the above table it can be assessed that revenue of Louis Vuitton is quite higher than Prada and Burberry. Through this it can be stated that revenue of Louis is higher from the other luxurious brand.
From the above report it can be concluded that to sustain in the contemporary environment it is essential for Prada to focus on international expansion of their business activities so that they can capture large market share. From the above analysis it can concluded that luxurious brand also requires effective international marketing strategies for expanding their activities in the international marketplace. Thus, will support Prada manager for international expansion that is.
From the case study of Prada it can be assessed that fashionable brand is not engaged in any sort of celebrity endorsement. Thus, for expanding their services in the international marketplace it is essential for Prada to engage promotional and marketing activities through ensuring celebrity endorsement. Furthermore, this will also support the brand in enhancing the image of premium and luxurious products in the global market.
Alliance with new firm
Furthermore, it has been also recommended that Prada manager while expanding and enhancing their reach in the international market. They must focuses on alliance with new firm and partner that would reduces additional cost for Prada.
Using digital or online platform
From the above analysis it has also been focused that Prada manager must use digital or online platform for promoting and marketing their luxurious products in the international market.
Some more Marketing samples-
- International & Global Marketing
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- International Marketing Strategies on King Su Technologies
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- Arnold, M., 2004. The mirage of global markets: how globalizing companies can succeed as markets localize. 2nd ed. FT Prentice Hall.
- Grönroos, C., 2011. A service perspective on business relationships: The value creation, interaction and marketing interface. Industrial marketing management. 40(2). pp.240-247.
- Hair, J. F., Sarstedt, M. and Mena, J. A., 2012. An assessment of the use of partial least squares structural equation modeling in marketing research. Journal of the academy of marketing science. 40(3). pp.414-433.
- Hamilton, L. and Webster, P., 2012. The International Business Environment, Oxford University Press.
- Jain, S. C. and Griffith, D. A., 2011. Handbook of research in international marketing. Edward Elgar Publishing.