Effective Market Entry Strategies

Entry modes

Marketing strategic planning is one of the effective tactics of the organisations in the recent years, where the multinational corporate firms try to establish their brand in the international market. In the recent era of globalisation, there is high pace of brand expansion across the globe, where the corporate firms try to expand their business across new international markets to gain high market share and sustain in the industry by doing business globally. Hence, market entry mode is necessary for the organisations, to choose right track for successful expansion of the business (Sartor and Beamish, 2018). There is different market entry mode, which would be beneficial for the organisations to run their business efficiently and establish their firms in the international market and the market entry strategies’ are Licensing and Franchising, joint ventures, strategic acquisitions, foreign direct Investment and direct export. Through choosing different foreign entry policy, the brands can develop strategies to enter into international market and improve their business activities for successful establishment of the firm. In this regard, in the recent years, joint venture and the foreign direct investment are the major two market entry mode applied by the multinational corporations, where it would be possible for the companies to enter into new international market and establish their operations successfully.

Foreign direct investment is the form of a controlling the ownership of the business in one county by entity based on another country. It has direct control of the organisation, where the foreign investment is effective and provides a scope to the companies to establish their business in the new international market (Grøgaard, Rygh and Benito, 2019). There are certain benefits of the market entry process through FDI, which are increasing employment and economic growth, providing of finance and technology, stimulation of economic development, improved capital flows, development of backward areas of the economy, human resource development and company’s growth. On the other hand, the disadvantages are exchange crisis, cultural erosion, trade deficit political corruption and inflation in the economy. As per the external analysis of India, there is stable government and political structure, low corruption, technological advancement and strong employee base as well as charge consumer market due to high population. Hereby, the famous retail supermarket chain of the UK, Tesco, aims at FDI to enter into Indian retail market and generate profitability for long run. The company in this regard intends to invest $110m for developing their business in India (BBC, 2013). It will set up the chain of supermarket with the partnership of Indian Tata group. Tesco is the first international retailer gets the permission to invest in Indian retail market and strengthen their super market chain or establishing the business sustainably. There is large diverse population, where Tesco would be successful in retaining the customers for their quality products and services and strengthen their position in Indian retail market. The FDI would be a successful one for the organisation to expand their business in India and gain high competitive advantage in the global retail supermarket (The Economics Times, 2015).

On the other hand, joint venture is the strategy of market entry, where one company develop the agreement of joint venture with another company in order to do their business collaboratively. The commercial enterprise undertakes jointly two or more organisations to perform cooperatively in the market. In the recent era of globalisation, it is also one of the effective market entry strategies for establishing the business internationally. There are certain advantages of joint venture strategy for market entry which are managing economies of scale properly, improving business efficiency, enhancing innovation and creativity, low cost of production, access to technology, innovation and access to latest technology, brand name and access to new market. Joint venture is appropriate where the company can access the new market of another firm and develop collaborative business strategy for expanding their operational activities. The disadvantages of the strategy of joint venture are lack of flexibility, necessity of more research and development, internal conflicts, imbalances in decision making, no equal involvement and vague objectives (The Economics Times, 2015). Though there are some disadvantages it is one of the effective tactics to enter into new international market and grab the market share successfully. For example, Wal-Mart intends to develop agreement with Flip kart for ecommerce activities in India so that the business can expand their operations in the country India and strengthen their customer’s base for their products through Flip kart supply chain. Wal-Mart announced to accuse 77% stake of Flip kart for $16 billion as Flip kart is the India’s largest ecommerce platform, where the customers prefer to make their purchase for the quality and durable products. Wal-Mart also has entered in Indian 2009 through the joint venture with Bharti enterprise to create Bharti-Walmart. Hence, the company’s strategy of joint venture is good for marketing and promotional activities, where Wal-Mart can establish their business in India and access the charge consumers market of the country. India has a strong consumer base with diverse needs and preferences, economic class and different socio cultural background and thus it further influence the multinational corporations to invest in the country through developing proper market entry strategy. Hereby, both the entry strategy FDI and Joint venture are effective for the retail organisations Tesco and Wal-Mart respectively to access the Indian market and establish their business sin the international platform (Tandon, 2018).

International branding

Branding is necessary of the organisations to improve their visibility in the market. In the recent era of globalisation, the multinational corporate firms try to improve their branding strategies for successful establishment of the companies. In this regard, there are different branding strategies such as promotional activities, attitude branding, developing brand name and slogan, using private labelling etc., and these strategies of branding are contributing factors for the organisations to promote their products and services in the market (Lindsay and Antoniou, 2016). The advantages of branding strategies are such as, improving visibility of the brand in the market, managing accessibility of the products, attracting the customers, establishing the company efficiently, presenting the products and available services and creating brand values at the market. Through the branding strategic planning, the organisations try to attract the audiences and ensure proper positioning of the brand in the market (Lindsay and Antoniou, 2016). As there is intense competition in the recent era of globalisation, the multinational corporations try to focus on branding in order to promote their products and attract the audiences for making effective purchase decision. All the companies aim to fulfil economic responsibility by maximising their profitability and for this they try to strengthen their customer’s base so that sales volume can be enhanced in long run. Hence, branding strategy is appropriate for the organisations to present the company in front of the customers and influence the purchase intension and decision making behaviour the buyers in the market.

For example, Nike is using attitude branding, where there is emotional branding strategy in the market, through which the company expand their business in the sport accessories industry. The company logo of Nike is smart and attractive which attract the audiences. The organisation creates a product standard by delivering high quality and durable products to the customers and that further utilise the brand logo for representing their authenticity of the products in the market. This is one of the effective branding strategy through which Nike aims at attracting the audiences across the international market (Frank et al., 2016). Moreover, the company also focuses on creating proper tag line for successful branding which is “Just do it”. The slogan is also attractive which further influence the athletes and also the sport lovers in the market across the international countries (Maqsoom et al., 2016). Hereby, the company is successful in branding and positioning their products in the market through attitude branding where it focuses on developing emotional branding for building customers loyalty with heroism. Nike’s advertising is related to common hero story for influencing the customers and inspire customers loyalty in the market. On the other hand, Reebok, which is a main competitor of Nike, focuses on developing organisational slogan in order to promote the bran in the market. The slogan of Adidas is “Impossible is Nothing” which is also inspiring for the customers and it is successful to influence the buying decision making behaviour of the buyers across the international markets. These are the major companies in the sport industry, which focus on inspiring slogan for developing customer’s loyalty in the market. The sport accessories related firm such as Puma, Adidas and Nike are successful in branding, where they are efficient to promote their products and influence the customers to make effective purchase decision. The customers loyalty is also improved as well as the slogan and emotional marketing attitude of the brands are successful for brand positioning, where the companies try to run their business across the international markets efficiently (The Economics Times, 2015).

On the other hand, private label is another form of branding, where the companies utilises their private label for promoting their products and services in the market through different super market chain. It is mainly the strategy of food manufacturer and other retail companies to increase brand visibility in the market. For example, nestle is the company which utilises the private labelling strategy for successful branding. The company is successful to manufacture the food products, dairy products and fresh food items in the market and the company sells the products with proper private labelling (Li, Cui and Lu, 2018). Hence, the company nestle aims at packaging system of the products so that the products of Nestle can be identified in the market easily. On the other hand, the company Tesco is also using the same strategy to promote their products. The super market chain Tesco also sells the ordinary products of other brand such as Heinz baked beans but also it sells their own 'Tesco Value' baked beans. Hence, private labelling strategy is also effective for successful branding in the market, where the companies can represent their products and services with proper brand logo and label. Both the branding strategies of private labelling as well as the attitude branding are effective and successful for the organisations to represent the brand successfully and promote the products and services in the market efficiently (Hofer and Baba, 2018). Branding is hereby important for all the organisations to promote their business in the international platform and create rand image in the market. It is also beneficial for strengthening their customer’s base and enhances their performance in the market. For maximisation of the profitability and enhancing the sales volume of the companies, it is necessary to have proper branding strategy so that the companies can attract the customers and influence their purchase decision making behaviour for the quality products and efficient services of the organisations (The Economics Times, 2015).

Monitoring and controlling

For successful international marketing strategic planning, it is necessary for the business to monitor and control, by developing proper strategy. The monitoring and controlling strategies are important for making the marketing tactics successfully. Continuous monitoring and controlling process for evaluating the international marketing strategic planning is manufactory for the firms to achieve future organisational success (Wang, Gurnani and Erkoc, 2016). Continuous monitoring process is beneficial where the companies can evaluate their marketing plan and develop more strategies to achieve future success. On the other hand, monitoring and controlling process are also advantageous for the organisations to review the success factors and performance of the organisation in the market. There are different techniques of monitoring and controlling. The strategies are reviewing the sales volume, customers feedback management, cost benefit analysis, return on investment review, monitoring the company progress as well as comparing the strategies of the competitive brands. In this regard, the international marketing strategic planning need to be monitored and evaluated on the regular interval in order to improve the practice and marketing activities in near future. The review of sales volume and profitability as well as customer feedback management are the major ways to monitor and control the international marketing.

The monitoring process of sales growth review is one of the effective measures of monitoring the controlling, where the organisation can review the growth in their sales volume and profitability. In this regard, the companies try to review the profit volume as well as sales growth in the market across the international countries (BBC, 2013). The companies review the sales volume, in the new international market. The companies like Puma and Nike also review the sales volume and the profitability in the market across the globe. It has been seen that, Nike’s sales volume is increasing over the years, where the branding strategy and the international marketing activities are beneficial for the organisation to be sustainable in the sport industry. The continuous monitoring process through sales volume rewove is effective where the firms also focus son profitability management (Johnson, 2016). The balance sheet and the financial statement of the company Tesco revels that it is successful to raise their profit internationally and improve their sales volume, where the international marketing strategic planning for Tesco sis successful for the brand to retain more customers towards their products and services and increase sales volume. Through the monitoring process, the company is hereby successful to manage their international marketing and improve the strategies to place their orders at the market and satisfy the customers in long run. Hereby, the sales volume review and the profitability analysis are the major way to monitor the international marketing strategy of the organisations (The Economics Times, 2015).

On the other hand, customer review management is another way to monitor and control the international marketing. The marketing strategies of the organisations include proper placement of the products in the market, managing product portfolio and quality of the products and efficiency of the services, proper supply chain and distribution network management and pricing, where continuous monitoring and controlling help the firm to manage these factors and establish the business successfully in the market. The companies like Wal-Mart and Tesco as a famous retail organisation focus on handling the customer’s feedback and manage their reviews for developing further strategic planning at the company. The review of the customer’s feedback is the way to monitor the success of the international marketing strategies in the market, where the firms can understand their performance and improve their planning to maximise customer retention in the international market (Frank et al., 2016). Hence monitoring activities are crucial for the organisations to ensure continuous improvement of the organisational activities in the market and gain high competitive advantage further. Hereby, the sales volume review and the customer feedback management are beneficial for the multinational corporations to review their performance and control the international marketing activities efficiently. Hence, it is necessary for the firms to manage their international marketing and monitoring the planning process for successful establishment of the multinational corporations across the international markets (BBC, 2013).

Take a deeper dive into Evolution and Diverse Dimensions of Corporate Social Responsibility (CSR) with our additional resources.

Reference List

Frank, A.G., Cortimiglia, M.N., Ribeiro, J.L.D. and de Oliveira, L.S., 2016. The effect of innovation activities on innovation outputs in the Brazilian industry: Market-orientation vs. technology-acquisition strategies. Research Policy, 45(3), pp.577-592.

Grøgaard, B., Rygh, A. and Benito, G.R., 2019. Bringing corporate governance into internalization theory: State ownership and foreign entry strategies. Journal of International Business Studies, 50(8), pp.1310-1337.

Hofer, K.M. and Baba, A., 2018. Market Entry Strategies, Innovation and Performance of SMEs in the Service Sector. Key Success Factors of SME Internationalisation: A Cross-Country Perspective, p.155.

Johnson, G., 2016. Exploring strategy: text and cases. London: Pearson Education.

Li, M.H., Cui, L. and Lu, J., 2018. Varieties in state capitalism: Outward FDI strategies of central and local state-owned enterprises from emerging economy countries. In State-owned multinationals (pp. 175-210). Palgrave Macmillan, Cham.

Lindsay, V. and Antoniou, C., 2016. Applying foreign entry market strategies to UK higher education transnational education models: Finding fifty shades of green. Perspectives: Policy and Practice in Higher Education, 20(2-3), pp.51-58.

Maqsoom, A., Khan, A.Q., Ali, U. and Mehmood, F., 2016. Foreign market entry: an analysis of barriers and market entry modes adopted by Pakistani contractors. INTERNATIONAL ORGANIZING COMMITTEE, p.290.

Sartor, M.A. and Beamish, P.W., 2018. Host market government corruption and the equity-based foreign entry strategies of multinational enterprises. Journal of International Business Studies, 49(3), pp.346-370.

Wang, H., Gurnani, H. and Erkoc, M., 2016. Entry deterrence of capacitated competition using price and non‐price strategies. Production and Operations Management, 25(4), pp.719-735.