MARK7018: Global Marketing Strategy

Module Leader: Dr Maheshan De Silva Kanakaratne

International Marketing
Plan

Student Number: 16108811

Word Count: 3000
 Table of Contents

1.0 Executive Summary................................................................................................3

2.0 Introduction.................................................................................................................3
2.1 Introduction to the Brand.......................................................................................................3
2.2 Global Industry Overview.......................................................................................................3
2.3 Outline of International Marketing Plan.................................................................................3
3.0 Stage 1: The Decision to Internationalise......................................................................4
4.0 Stage 2: Market Selection: International Market Screening and Selection....................5
5.0 Environmental Analysis of Qatar............................................................................9
5.1 PESTLE Analysis......................................................................................................................9
5.2 Porter’s Five Forces................................................................................................................9
6.0 Segmentation, Targeting and Positioning...............................................................9
7.0 Stage 3: Market Entry Strategy...............................................................................9
8.0 Stage 4: Global Marketing Design................................................................................9
9.0 Stage 5: Implementing and Coordinating Global Marketing Programme:
Implementation Plan.........................................................................................................9
10.0 Corporate Responsibility............................................................................................9
11.0 Conclusion..................................................................................................................9
12.0 References................................................................................................................10

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1.0 Executive Summary

2.0 Introduction

2.1 Introduction to the Brand

Reiss, established in 1971, is a British fashion brand and retail store chain operating

in 135 stores globally including countries such as the United States, Hong Kong, and

United Arab Emirates (Reiss, 2021). They are a highly respected brand with a strong

focus on quality and detail, which has led to a high respectable reputation with

following from members of the Royal family and celebrities (Reiss, 2021).

2.2 Global Industry Overview

The global apparel retail industry had total revenues of $1,467.7 billion in 2018 with a

compound annual growth rate (CAGR) of 4.1% (MarketLine, 2020). The industry is

expected to grow in value to $2.25 trillion by 2025, showing that demand is

increasing worldwide (Statista, 2021a).

2.3 Outline of International Marketing Plan

In order for a brand to successfully internationalise, various steps must be taken in

order to ensure the viability of the international marketing plan. For this report, the

Five-Stage Decision Model will be utilised to guarantee the effectiveness of the

implementation of the IMP.

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3.0 Stage 1: The Decision to Internationalise

To enable profitable growth and success, organisations need to expand into adjacent

spaces and prepare in advance otherwise they may face failure (Zook & Allen, 2003;

Hollensen, 2020). The nine strategic windows by Solberg (1997) is a useful tool in

deciding whether to internationalise or not, helping firms decide whether to “stay at

home” or further “strengthen the global position” (Hollensen, 2020).

Reiss has been operating for 49 years and has developed a well-established global

brand during this time (Reiss, 2021). Their appeal is highly diverse, ranging from

younger fashion-conscious generations to high-profile sophisticates, allowing Reiss

to cater to a broad target market. Furthermore, they operate in 15 countries with 135

stores (Reiss, 2021). “With a unique thread running through every element of the

brand; design, quality and customer experience never disappoints, creating a strong

platform for global expansion” (Reiss, 2021). Therefore, the brand can be considered

“mature” in terms of “preparedness for internationalisation” as they have already

seen global success (Hollensen, 2020).

The brand reached a total of $315,9 million in sales last year due to their rapid global

expansion and new partnerships (Nazir, 2020). This has enabled them to reach a

profit of $26.8 million, over a $4 million increase from the year before (Collinson,

2021). They perceive themselves as a niche luxury brand with a high-street price tag

and location (Turner, 2018). The attention to detail and distinctive styling, as well as

the high-quality fabrics used justify the high prices.

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The rapid growth of the industry is ideal for Reiss to take advantage of. The leading

continents in sales for apparel and footwear are Asia Pacific, North America, and

Western Europe, see Figure 1, (Euromonitor, 2020a). The most popular segment

within the industry is womenswear, accounting for 52.6% of the total industry value

(MarketLine, 2018). The continuous growth within the women’s apparel market will

be due to the increasing weight of emerging markets which will account for 55% of

apparel sales in 2025 (Remy et al., 2014). In addition, many brand strategists have

been looking at emerging middle-class consumer markets where consumers are

younger and have economic prosperity (Manchanda et al., 2020). These markets are

expected to continue to develop, overtaking the declining European and American

markets in value (Manchanda et al., 2020).

Reiss already operates within Europe, North America, Australia, Middle East, and

Asia Pacific (Reiss, 2021). Due to maturity and globality of the brand, strengthening

their global position is suggested.

4.0 Stage 2: Market Selection: International Market Screening and Selection

The international marketing selection (IMS) is a process used by firms to identify the

right market to enter (Hollensen, 2020). It is suggested that firms who follow this

have better performance (Yip et al., 2000; Brouthers & Nakos, 2005). Hollensen

(2020) identified two types of segments; preliminary, based on the state of the

market, and fine-grained screening based on special competences and competitive

power.

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When looking at preliminary screening, see Figure 1, it is important to look at

features such as a country’s gross domestic product (GDP) per capita, population

size, and government spending (Hollensen, 2020). Out of the top 10 countries with

the highest GDP per capita, Reiss already operates within 4 of them leaving; Qatar,

Macao, Luxembourg, Brunei Daussalam, Norway, and Kuwait (International

Monetary Fund, 2020). Macao and Brunei Daussalam can be knocked out due to

having the lowest consumer expenditure and population.

Figure 1 – Preliminary Screening

(Country Economy, 2020; Euromonitor, 2020b; International Monetary Fund, 2020;

The World Bank, 2021)

When looking at fine-grained screening, it is important to look at market sizes,

market growth, buying power, competitive intensity, and economic and political

stability (Hollensen, 2020). Figure 2 below demonstrates the screening process for

the 4 countries selected. Each segment of the table is ranked from 1 – 5 in an

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attractiveness rating to be able to see which the most desirable market is to enter for

Reiss.

Figure 2 – Fine-grained Screening

(Control Risks, 2021; CIA World Factbook, 2020; MarketLine, 2020; The World
Bank, 2020; World Economic Forum Global Competitiveness Index, 2017)

From looking at the screening, it is clear to see that the top 3 contenders are;

Norway, Kuwait, and Qatar however, the most attractive market to enter is Qatar with

the highest points. The market potential for Norway can be seen very low due to an

analysis of consumer habits which presented that Norwegians have a reputation to

be frugal and usually purchase cheaper products online instead of retail stores

(MarketLine, 2020), therefore there is not a lot of potential as Reiss is a high-end

fashion store and will not appeal to customers. As the two other countries left are in

the Middle East, this part of the world will be chosen for the IMP. In addition, the

Middle East is considered an emerging market by the MSCI Index (2021) and will

therefore have a lot of opportunity for the apparel industry. Although Qatar has a

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lower population than Kuwait, they have a higher GNP and GDP per capita and

therefore will be selected. In addition, Qatar has seen a significant expansion for

retail brands and shopping outlets despite the global decline in retail sales (Oxford

Business Group, 2020).

Figure 3 – International Market Screening for Reiss adapted from Hollensen

(2020)

(Author, 2021)

5.0 Environmental Analysis of Qatar

It is important for companies to conduct environmental analysis in order to examine

internal and external factors that affect business performance (Dibb et al., 2019).

This will be carried out with a PESTLE analysis and Porter’s Five Forces.

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5.1 PESTLE Analysis

There have been several political problems in the past with Qatar such as the

United Arab Emirates severing ties with them due to accusations of supporting

terrorism in 2017 (Reuters, 2017). Economically, the country is set to introduce

value added tax at 5%, something they never had which will affect the apparel

industry (KPMG, 2021). An important aspect is the decline in the overall apparel

industry due to COVID-19 (Statista, 2020), however all countries are expected to

improve performance by the end of this year (Euromonitor, 2020). The social

aspects involve

Technological factors include, the total amount of internet users in Qatar increased

by 1.8% in 2020 with an internet penetration of 99% last year (Kemp, 2020). Legal

aspects involve

The fashion industry is facing large environmental concerns in regard to

sustainability as it responsible for 10% global carbon emissions and has huge impact

on landfill (European Parliament, 2021).

5.2 Porter’s Five Forces

6.0 Segmentation, Targeting and Positioning

7.0 Stage 3: Market Entry Strategy

8.0 Stage 4: Global Marketing Design

9.0 Stage 5: Implementing and Coordinating Global Marketing Programme:

Implementation Plan

10.0 Corporate Responsibility

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11.0 Conclusion

12.0 References

Amoros, R. (2020) Visualizing the Richest Countries in the World in 2020. [Online]
Available at: https://howmuch.net/articles/richest-countries-in-the-world (accessed
01/ 04/ 21).

CIA World Factbook. (2020) GDP (purchasing power parity). [Online] Available at:
https://www.indexmundi.com/g/r.aspx?t=0&v=65&l=en (accessed 01/ 04/ 21).

Collinson, P. (2021) Reiss reports jump in global Christmas sales as it seeks a

buyer. [Online] Available at:
https://www.theguardian.com/business/2020/jan/27/reiss-jump-global-christmas-
sales-seeks-buyer-profits (accessed 16/ 03/ 21).

Control Risks (2021) [Online] Available at:

https://www.controlrisks.com/-/media/corporate/files/riskmap-2021/riskmap-2021-
map-regions-world-a3v2.pdf (accessed 01/ 04/ 21).

Country Economy (2020) General government expenditure 2020. [Online] Available

at: https://countryeconomy.com/government/expenditure (accessed 07/ 04/ 21).

Dibb. S, Simkin. L, Pride. W, and Ferrell. O, (2019) Marketing Concepts and

Strategies (8th edition). Hampshire: Cengage Learning, EMEA

Euromonitor. (2020a) Apparel and Footwear in the United Kingdom. [Online]

Available at: https://www-portal-euromonitor-
com.oxfordbrookes.idm.oclc.org/portal/analysis/tab (accessed 02/03/21)

Euromonitor. (2020b) Consumer Expenditure. [Online] Available at: https://www-

portal-euromonitor-com.oxfordbrookes.idm.oclc.org/portal/statisticsevolution/index
(accessed 02/03/21)

European Parliament. (2021) The impact of textile production and waste on the
environment (infographic). [Online] Available at:
https://www.europarl.europa.eu/news/en/headlines/society/20201208STO93327/the-
impact-of-textile-production-and-waste-on-the-environment-infographic (accessed
07/ 04/ 21).

Hollensen, S. (2020) Global marketing. 8th edn. Harlow, England: Pearson.

Available at: INSERT-MISSING-URL (Accessed: March 10, 2021).

International Monetary Fund (2020) Report for Selected Countries and Subjects.
[Online] Available at: https://www.imf.org/en/Publications/SPROLLs/world-economic-
outlook-databases#sort=%40imfdate%20descending (accessed 07/ 04/ 21).

Kemp, S. (2020) Digital 2020: Qatar. [Online] Available at:

https://datareportal.com/reports/digital-2020-qatar#:~:text=Internet%20penetration

10
%20in%20Qatar%20stood%20at%2099%25%20in%20January%202020. (accessed
07/ 04/ 21).

KPMG. (2021) Qatar: VAT regime now expected in 2021. [Online] Available at:
https://home.kpmg/content/dam/kpmg/qa/pdf/2020/1/kpmg-qatar-introduction-to-vat-
21.pdf (accessed 01/ 04/ 21).

Manchanda, S., Schlorke, S., and Schmitt, M. (2020) Innovation, Investment, and
Emerging Opportunities in Today’s Textile and Apparel Value Chain. [Online]
Available at: https://www.ifc.org/wps/wcm/connect/39fe694e-140a-46bc-a8b5-
f47481974f3b/EMCompass_Note+96-
Innov+Invest+and+Emerg+Opp+in+Textile_web.pdf?
MOD=AJPERES&CVID=nqgji2b (accessed 09/ 03/ 21).

MarketLine (2020) Global Apparel Retail. Available at: https://advantage-marketline-

4com.oxfordbrookes.idm.oclc.org/Analysis/ViewasPDF/global-apparel-retail-94368
(accessed 11/10/20).

MSCI Index (2021) MSCI Index. [Online] Available at:

https://www.msci.com/documents/10199/c0db0a48-01f2-4ba9-ad01-226fd5678111
(accessed 01/ 04/ 21).

Nazir, S. (2020) Reiss sales reach £227m thanks to rapid global expansion - Retail
Gazette. [Online] Available at: https://www.retailgazette.co.uk/blog/2020/03/reiss-
sales-reach-227m-thanks-rapid-global-expansion/ (accessed 09/ 03/ 21).

Oxford Business Group (2020) Consumer confidence and local brands drive Qatar's
retail growth. [Online] Available at:
https://oxfordbusinessgroup.com/overview/expanded-offer-consumer-confidence-
and-popular-local-brands-drive-growth (accessed 02/ 04/ 21).

Reiss (2021) Our Story. [Online] Available at: https://www.reiss.com/our-story/

(accessed 09/ 03/ 21).

Remy, N., Schmidt, J., Werner, C., and Lu, M. (2014) Unleashing Fashion Growth
City by City. [Online] Available at:
https://www.mckinsey.com/~/media/mckinsey/dotcom/client_service/marketing
%20and%20sales/pdfs/unleashing_fashion_growth.ashx (accessed 09/ 03/ 21).

Reuters (2017) Latest: UAE among 4 Arab nations to sever ties with Qatar. [Online]
Available at: https://www.khaleejtimes.com/region/saudi-arabia/Qatar-isolated-over-
terror-ties- (accessed 01/ 04/ 21).

Statista (2021a) Apparel Market Worldwide. [Online] Available at:

https://www.statista.com/topics/5091/apparel-market-worldwide/ (accessed 09/ 03/
21).

Statista (2021b) Qatar- Inflation rate 2025. [Online] Available at:

https://www.statista.com/statistics/379995/inflation-rate-in-qatar/ (accessed 02/ 04/
21).

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The World Bank (2021) GNI per capita, Atlas method (current US$). [Online]
Available at: https://data.worldbank.org/indicator/ny.gnp.pcap.cd?
year_high_desc=true (accessed 01/ 04/ 21).

Statista (2020a) Topic: Apparel Market Worldwide. [Online] Available at:

https://www.statista.com/topics/5091/apparel-market-worldwide/ (accessed 02/ 04/
21).

Statista (2020b) Qatar - unemployment rate 1999-2020. [Online] Available at:

https://www.statista.com/statistics/808890/unemployment-rate-in-qatar/ (accessed
02/ 04/ 21).

The World Bank (2020) GDP growth (annual %). [Online] Available at:
https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=US (accessed
01/ 04/ 21).

Turner, L. (2018) The best British high-end high-street labels. [Online] Available at:
https://www.globalblue.com/destinations/uk/london/best-british-high-end-high-street-
labels#slide1 (accessed 09/ 03/ 21).

Zook, C. and Allen, J. (2003) Growth Outside the Core. Harvard Business Review.
Available at: https://hbr.org/2003/12/growth-outside-the-core (accessed 09/03/21).

Threats:
 United Arab Emirates severing ties with them due to
Political
accusations of supporting terrorism in 2017 (Reuters,
2017).
Economical Threats:
 Introduce value added tax at 5%, which will affect the
apparel industry (KPMG, 2021).
 The decline in the overall apparel industry due to
COVID-19 (Statista, 2020), however all countries are
expected to improve performance by the end of this
year (Euromonitor, 2020).
 There has been an inflation rate increase from -2.17%
in 2020 to 1.81% for 2021 (Statista, 2021b).
 Foreign exchange risks.

Opportunities:
 Disposable national income is high at $55.7 thousand
(Statista, 2017).
 Unemployment rate has decreased from an already
low 0.09% from 2019 to 0.08% in 2020 (Statista,
2020b).
 Influx of tourism to be expected in 2022 due to the
FIFA World Cup (Oxford Business Group, 2020).
 Above-average growth in demand for retail space due

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 to rising consumer purchasing power (Oxford
Business Group, 2020).
 Reiss have a large international presence and
established brand name.
Threats:
 Many competitors?
Social
Opportunities:

Threats:
 Constant threat of cyber security risks such as data
leakage, lack of consumer trust, reputational damage
and financial costs (Price, 2020). For example, the
American retail corporation Target experienced a
massive credit-card data breach which cost the
Technological
company $18.5 million that affected 41 million
customers (McCoy, 2017).

Opportunities:
 Continuous growth

Threats:
Legal

Threats:
 The fashion industry is the second largest polluter in
Environmenta
the world (SustainYourStyle, 2020).
l
Opportunities:
 Reiss sustainable

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