International Marketing for Tradeoffs and Risks- myassignmenthelp

Question: Discuss about theInternational Marketing for Tradeoffs and Risks. Answer: Introduction The report revolves around the various aspects of managing international business by Armani and how it has established its position within the global business environment of New Zealand with ease and effectiveness. The market entry strategy will help in developing proper plans for managing the delivery of products and services to a targeted market segment and distribute those properly too. The import and export activities can help the organization to develop as well as manage contracts within a foreign country and ensure successful business functioning too (armani.com, 2017). Purpose and scope of the report The purpose of developing this report is to analyse how the fashion brand named Armani has managed to operate in the global business environment of New Zealand. To become successful in the global business environment, an appropriate marketing strategy should be chosen such as exporting, franchising, joint venture, relationship based entry, etc (Berthon et al., 2012). Suitable market entry strategy including tradeoffs and risks There are various effective market entry strategies including exporting, franchising, joint venture and relationship based entry that can be used by Armani to sustain within the international business environment. Direct exporting activities could help the company to sell the products and services directly in the market by utilizing a vast amount of resources. Armani has developed a sales program for the distributors and wholesalers by representing those in the market as well as consider them as major agents to manage product distribution and selling within the foreign country (Czinkota Ronkainen, 2013). Franchising allows for rapid market expansion by transferring the business models into another market segment in some other country. It works as an effective market entry strategy when the company has a string brand image and name to survive in the competitive business environment in New Zealand. The joint ventures could enable to form partnership between the two companies or individuals and manage coordination to work as an unit. The losses and profits gained would be shared equally between the two companies. Armani can export the products and services delivered and even get involved in the processes of manufacturing, distribution and export of fabrics that are needed for both shirting and suiting purposes (Helm Gritsch, 2014). The new technologies essential for improving quality of clothing products are projectile, airjet, rapier looms, etc. that are used by Armani to weave the fabric items and provide a better quality product. This will not only suit the service users but can also keep their needs and preferences fulfilled (armani.com, 2012). The exporting activities are managed through utilization of the most recent machinery including calendar machine, kd machine, comfit machine and formula machine that can enhance the quality of products and services and ensure that the high level of demands of customers in the different market segments are fulfilled. Direct selling and indirect selling are major methods of exporting (Kuo et al., 2012). To manage indirect selling, the export intermediary manages its roles by identifying the customers in the overseas market of New Zealand and check out proper ways of shipping products. The wholesaler is responsible for gaining possession of the products and even obtains better profit through obtaining knowledge and expertise by selling products of Armani in the foreign market. The risk of surviving in the international market is huge and so There could be risks related to the trading activities and so the domestic buyers must assume the risks and then handle the exporting details proper ly (Laufs Schwens, 2014). Exporting has enabled Armani to enter new market by exporting directly through intermediaries to become aware of the foreign competition, market opportunities and new technologies implemented. This could facilitate the ways of managing e-commerce website and sell products online by shipping those in the foreign countries with convenience. While exporting directly, Armani has developed contracts to increase its sales and increase the customer base (Meissner, 2012). Relevant marketing mix strategies The marketing mix strategies implemented by Armani has helped in targeting the consumers in the foreign market and even cater to the segment consisting of customers who cannot afford the signature line. The company has targeted the young customers segments and provides them with modern and innovative designs that can be applicable for the target customers. Products Giorgio Armani has developed its products by providing some identifiable features in their designs and even increased the product line through introduction of wide range of apparel consisting of signature Armani suits. The targeted segments of customers are mainly between the age of 35 to 50. To survive in the competitive business environment of New Zealand, the company has focused on the lower market segment by introducing Armani Collezioni and fulfilled the requirements of lower market segments (Terpstra, Foley Sarathy, 2012). Modern designs are created to cater the needs of young targeted consumer while the jeans collection also could be a major trend among the girls and women in New Zealand. This would make them experience both luxurious and fashionable line of apparel after making purchases from Armani. Price Armani has created a good brand image and name amongst the elite members of the society but in order to sustain in the global business environment, it would be essential to manage production of products for both the elite class and normal people of New Zealand. The price levels are different for introducing new products and services in the market and ensure successful market expansion. The Collezioni brand items are priced properly, i.e., 20 percent lower compared to the premium segment products to targeting the lower segments of customers (Zhou, Wu Barnes, 2012). Armanis Prive Line also is an essential segment of fashion and clothing that can be available at competitive process and this can influence the buying behaviors of consumers too. Place Armani has its stores all around the world and during the management of international business, the company must establish a chain of retail outlets in New Zealand to serve many customers and make them know about the brand supremacy. The wide range of accessories, apparels available could help Armani to showcase its customers and make the, feel the benefits of deluxe fashion. Armani has made proper strategic plans to develop a retail network of more than 15 stores in New Zealand and enhance the numbers of customers and sales revenue. The products of Armani should be made available online and even allow the customers to check the products, apply those to an on-screen model and evaluate the shades prior to purchase (armani.com, 2017). Promotion Armanis promotional strategies are exceptional, because the company has not only involved celebrities to endorse the brand products. Social media involvement could also be beneficial for the company to make more people aware of the new products delivered and influence their buying behavior too. The celebrities wore the dresses and could do ramp walks to highlight the excellence in Armani products and influence customers of New Zealand to try those (Berthon et al., 2012). Conclusion The topic focused on the international marketing consisting of how the business organization Armani managed to operate in the foreign market, i.e., New Zealand. As an effective market entry strategy, the exporting activities should be used by Armani to enter the new market segments and attract more customers. Armani has filled orders from the domestic purchasers who are responsible for exporting the products. Armani has identified the domestic purchasers who can represent the foreign customers and this would help in attracting huge numbers of customers. The marketing mix strategies had helped in determining the major products including suits and apparel items along with the prices set for those and promotions done to ensure successful business functioning within the global business environment. References armani.com (2017). Armani | Official Online Store |. Retrieved 31 October 2017, from https://www.armani.com Berthon, P. R., Pitt, L. F., Plangger, K., Shapiro, D. (2012). 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