International Marketing

December 2021 Examination

Q1. The spa industry in Dubai is currently experiencing growth and spas in Dubai are
steadily becoming a pertinent cultural force, influencing not only how consumers care for
their health, well-being, and appearance, but also how they work, travel, and socialize. As
interest in physical wellness increases, spa therapy becomes increasingly popular in Dubai
and is highly recommended by many medical specialists. As a result, spas are challenged
with increasing competition. At the same time, customers are looking for “new” and
“unique” experiences. You have been employed by Anantara Spa in Dubai to devise
marketing plan to increase profitability and market share. Conduct a macro scan of the
environment and introduce the brand to Dubai, UAE. (10 Marks)

Answer 1.

Introduction
In ensuring that the organization will behave in a reasonable fashion, it is imperative for the
organization to ensure that the organization's external environment is justified and fit for
purpose. This, in turn, will help establish the company better in Dubai and allow it to concentrate
on accumulating a diverse customer base as quickly as possible. This is where the PESTEL
evaluation can help us find those aspects that are driving our business and how those elements
impact it. As a result, the following guidelines have been established:

P- Political

E- Economic

S- Social

T- Technological

E- Environmental
L- Legal

Concept and Analysis

PESTEL Factors
Political Dubai has a political climate that isn't always stable due to its surroundings
or political factors. Because of this reason, it is extremely necessary that
the organization think about the appropriate procedure before taking on a
job there. The economists state that they wish that the political
environment of Dubai will be vital in 2025. But there were no such traces
of it. However, the sheiks are the main head of government in Dubai. So, it
is critical to look into all possible issues which could stand up from
operating there. There is bendy control throughout the country. This is
mainly because of their character in government organizations. Although
wars with nearby alternative nations are rare, there are a few conflicts on a
local level. As a country with actual trade relations, the country also
participates in joint projects with other countries.
Economic Dubai's economy is one of the essential elements that have to be focused
upon in order for the employer to be able to establish itself there. To ensure
the effect of financial variables on the location of an organization, it is
necessary to ensure the presence of these financial variables. The inline
with the capita GDP of the country is incredibly excessive, which makes it
one of the wealthiest international locations. Due to this motive, the profits
of human beings are exceptionally absurd, and the corporation can count
on a high fee from the clients. The unemployment rate of the united states
is shallow, due to which it can be challenging to look for employees with
low salaries. This may be a bit hard for the organization.
Social Those jobs that are provided for the human beings in Dubai are such that
they are quite trustworthy and reliable. The reason why the people live
such a lavish lifestyle is because they are well paid and they have very
good living conditions. In Dubai, there are a variety of cultural forms that
may be observed. There is no doubt that globalization plays an important
 role in this regard. Faith takes up a widespread space within the USA. It is
gain one of the most significant elements that should not be overlooked
through the agency so that you can begin up their commercial enterprise
and benefit an extraordinary quantity of profit. Due to this purpose, the
country's women are anticipated to wear a particular sort of fabric. This
will be harmful to the company. Nevertheless, since different cultures are
present, this might also help the organization in reviving from facing the
losses that it may have endured.
Technological Any country's technological progress is a definite advantage for the
profitability and the advancement of the organization through the world's
economic growth. If the era in which the organization operates and invests
in Dubai does not fit the organization's goals, the organization could be in
danger. I believe it can be said that the children of Dubai are known to be
very tech-savvy. This proves that technology is promoted in the country.
But, the government is wealthy with the help of which it can have the
funds for costly and heavy technology. The precise centers and machinery
as a way to be required to start a spa are a gift in the country. This will
ensure that the right technology is current, and the quality of services
furnished utilizing the company will also enhance. That is immediately
proportional to the earnings that will be earned by using the employer. In
addition to increasing the popularity of the company, the brand loyalty of
the company may also be enhanced by such an approach.
Environmental I am writing this report in the summer time when the climate of the US is
hot and humid. There is a lot of boredom among the people of the United
States due to the intense heat of the country. As a result of the arid climate
in Dubai, many people rely on air conditioning. Due to this reason, humans
will experience the want for a spa. Due to this purpose, the country's
climate can show to be an advantage for the agency. The desire for the
hotel will be extraordinarily felt in this weather. Because of this, the
organization can make an excellent quantity of earnings. Additionally,
there are few coastal regions near the country. It is for this reason that the
organization can profit from launching their enterprise in close proximity
 to the place where it is located.
Legal It is generally understood that there are few legal repercussions on the
organization from the country. It is unlikely that any criminal elements will
have an effect on the agency except with the assistance of the agency. In
order to function in Dubai nowadays, it may no longer be very important
for the organization to have a representative there.

Conclusion

According to the above analysis, it can be concluded that Dubai may be the ideal market for
companies to pick, as it is an excellent location for companies to perform. Dubai is a prosperous
country and an agency like ours gets a huge possibility to make a successful business. Although
all the above stated factors must be reconsidered by the organization, it must also remember
them all.

Question 2. Design a marketing mix strategy (4-Ps) for a start-up, brand (can be from any
geography) to expand in the global market and offer a practical solution to them. (10
Marks)

Ans 2.

Introduction
In marketing a good or service, the four Ps are key factors. A good or service's product, price,
location, and promotion make it. These four Ps are influenced by internal and external business
factors, and they interact significantly. These factors help businesses determine what their
customers want from them, how their product or service meets those needs, how it is perceived
globally, how it stands out from their competition, and how it interacts with them. The 4 Ps of
advertising are the product (items or services), the price, the location (region), and the
promoting. For selling any business, these components are valued the maximum utilizing
entrepreneurs. The company of MYBYK from Gujarat in India is a begin-up of 2014. The firm
has expanded to other states too. It's far a software start-up. It works using a smartphone utility.

Concept and analysis

MyBYK provides customers the option of renting a bicycle to use or to share with other people.
In the subcontinent, it's often referred to as the modern approach. Bikes, especially in rural areas,
are excellent means for reducing congestion and pollutants, as there is an expanding population
and increasing pollution.

It is possible to achieve the growth of the brand using the strategies in the following table based
on the Four Ps of advertising and marketing mix:

Product – I would like to say that MyBYK lets in the renting out of bicycles. In the case of the
problem at hand, the consumer's bicycles and telephone packages are the results of this issue. For
increasing the enterprise globally, they must avail the software in more than one language. These
languages can most effectively goal the regions of growth to start with. Later on, they could
replace the programs more as required for the goal market. Since the global pandemic, they
should also mandate the safety precautions of sanitizing the bicycles that are being set free.
Those would resource in reducing the spreading of the virus for the zones that are nonetheless in
danger. I believe that it is tremendously important for the organization to take average note of the
developments regarding the products and correct them as quickly as possible. I absolutely agree
with all the points that MYBYK needs to consider in regards to the application of the regions
they should serve. There is no doubt that the customers would be satisfied as a result of it.

Price – It is a business necessity to recognize and rediscover the target market and the history of
the company. It is fair to say that most people in India do not possess excess income in their
lives. For the enterprise to be able to attract people from this kind of kingdom, they must mark
their prices modestly in order to entice people. I think that it would be necessary to take a similar
approach throughout the whole process of expanding the enterprise. A reduction in expenses
does not necessarily go plus-es for the enterprise, as it does not always have to incur a loss. The
prices need to be reason sufficient for the motive they serve. The pricing would include all the
costs of the business for availing of their offerings globally. If a company marks its costs too
high, people from the standard background will turn away. However, if they keep themselves at a
low price, the customers could doubt the excellent of the provider and product. The secret is to
detect the price in-among.

Place – In addition, we make sure that our products are easily accessible by our customers. The
clients will no longer opt for the bikes if they are not in the location where the bikes are shared
and let out by the company. Thus, in order to cater to the needs of their target market, the
business must offer a homogeneous distribution of bicycles. They should create hubs for
profitable bicycles in the goal regions, and perhaps they will succeed at doing so. This must be
chiefly centered on the residential areas and industrial areas. Developing a bicycle renting outlet
in the commercial areas could offer the workplace workers to option for bikes over motors. This
will permit the average employee to exercise on the give up of the day while saving the
surroundings from pollution. Availing the motorcycles within the residential areas would allow
college students and office employees to choose the services. It'd help people reduce their time
for searching the services inside the early morning.

Promotion –

Due to the innovative method used by the company, the company could sell itself around the
globe. The use of bicycles permits you to minimize environmental pollution to the greatest extent
possible. People in western nations have lifestyle choices that they have no prospect of getting to
their fitness despite the fact that they live in an area with a high standard of living. People all
over the world have been affected by the health problems that come along with working in
cramped offices. Cycling after working inactively would offer the specified activity in their daily
lives. Social media advertising would be the most suitable approach for selling the business.
They could promote their plans and other promotions for the new clients. The organization needs
to flow into their classified ads the use of electronic mail advertising too. This will be powerful if
they offer a few customizations to their merchandise. In addition to the free options, there should
be paid options available to the customer. As a result, future customers would be enticed to visit
the site since it would pique their interest.

Conclusion
It sure might sound a bit antiquated, but the 4 Ps of marketing are still useful in modern
organizations despite their vintage nature. If MYBYK, as a company, begins focusing on the
above-mentioned strategies and plans for its business, there will be a better chance it will
flourish. Currently, the best hub for MyBYK is located in Gujarat, but you can find it all over the
country. The enterprise is in its growing segment. Avon has invested in this enterprise too. After
the global pandemic, touring in congested commutes has grown to be a nightmare for people.
Renting a bicycle would be a far better choice to avoid such issues. People are now more privy to
their safety and the sustenance of nature after this crisis. More excellent people are opting for
similar alternatives. Therefore, the business has an incredible scope of globalization.

Question 3. Mango, a strong retail brand with 29 stores in India plans to expand its market
share in the premium luxury apparel market.

a. Suggest its value-based pricing strategy (5 Marks)

b. Discuss how changes in consumer shopping behavior can be useful to Mango apparel
brand especially in India. (5 Marks)

Ans 3.

Introduction
The mango originated in Spain, and it has since migrated to other regions of the sector. Mango's
performance may be attributed to 2 factors: they're innovative and adaptable in their management
style, as proven by the studies that observed. For this reason, they interact with marketplaces
that, in terms of the structure of their political and financial machine, are appreciably dependent
on the external state.

Mango employs an aggregate of multi-domestic and industrialized techniques, employing multi-

domestic strategies to resolve part of the arena’s challenges and globalization strategies to
address operational difficulties. Mango is, as a consequence, a one-of-a-kind instance of a firm
that practices agree with international thinking Sustainable.
Concept and analysis

Ans 3(A)

Mango encompasses daily operation, from product introduction to improvement to fulfillment.

The items are created in-house, after which reduced in size to producers all around the globe,
with final items added again to the nearby storage thru logistics companies. Furthermore, Mango
set up a global relationship of incredible input materials producers in Africa, Germany, and the
Southeast. Mango's key stakeholders include, as shown, suppliers of raw materials, product
developers, and logistics corporations. To lessen the cost of synchronization due to the
transportation-related to shifting simple ingredients from producers to Mango and ultimately
from Mango to manufactures.

Each business does have its own set of factors that influence the success (CSF) that are used to
evaluate and decide the performance of every enterprise player. The garb business could be
reviewed and how Mango used its assets to fulfill the design company's criteria. The source of
strength Relation to the difference can also be applied to investigate Mango's skills and
knowledge to shape the idea of the conclusions approximately why their professional method is
challenging to duplicate.

• Coordinating expenses and hazards: Mango has leveraged its excellent IT infrastructure to
carry down the price and dangers linked with transporting items. Cost-cutting is good for the
industry.

• Procurement capability: Agencies shape a commercial enterprise alliance to capitalize on

possibilities together with efficiencies of length and complexity and their role in the market.
Mango's purchasing ability has allowed the corporation to find and connect inexpensively but
with higher delivery chains worldwide, permitting organizations to capitalize on the financial
system of scale.

• Versatility: As part of its globally connected approach, Mango creates multilateral horizontal
partnerships at some point of its supply chain operations, allowing them to certainly terminate
relationships and talk new products and services at nearly no fee. The shape of their agreements
is essential to business performance even though they have avoided accruing high costs due to
involvement from failing buddies.

• Data accessibility: Every time global plans are combined with special provisions, it produces
commercially intelligent corporations. Mango has gained traditional marketplace expertise thru
the advent of thoughtful partnerships internationally, which is essential in making intelligent
decisions. It has additionally given them accessibility to abilities and possibilities that were
formerly unavailable to individuals.

• Tracking and management: As demonstrated in the research, Mango oversees the whole
system, from challenge inception through product control and implementation. Mango has more
established its overall performance criteria for its carriers by implementing IoT to fabricate to
precise specifications.

Ans 3(B)

On Mango we utilize a general structure, a general organization wherein all knowledge, all
directives, all alternatives, all activities, and all failures to act come from the head zone and from
the supplementary zone. This is done in order to maintain the management of its various outlets,
businesses, and other resources on a low-cost basis while keeping a dynamic headquarters base.
Keeping one's excellence through this method is also an essential part of establishing excellence.

First of all, Mango developed operating partnerships so as to guarantee no slippage in the

turnover, ultimately resulting in them having the most significant reaction times within the
business community, similar to Zara and consequently coping with the shorter turnaround time
issue.

Secondly, the exceptional financial management made available to them in the company's
complete agency sports is rooted deeply in quality, resulting in more exquisite products and a
greater financial obligation.
Three, Mango's ability to maintain a strong international footprint and be able to incorporate the
top of the chain with its infrastructure demonstrates its ability to effectively control business
production with an effective coordination of its business processes.

Fourth, as an excellent way to maintain profitability, Mango is able to search out low-cost
methods of enhanced herbal resources, and then employs finance expertise to make use of the
economics of scale to achieve a competitive price. This results in better products made at lower
income rates.

As a global company, mango thrives on the development of apparel production and now more
apparel companies from overseas are joining forces with mango, such as Zara, H&M, forever21,
all providing customers with trendsetting and unique products. Because the varied population of
India wants to control its trading trends, many companies from overseas want to sell their
clothing in India and this creates a vast goal market for the international businesses.

Conclusion

The performance of Mango's model is heavily dependent upon accurate segmentation,

characterization, and supervision of the numerous players in its production system, including
ingredients and chemical manufacturers, producers and retailers, transportation firms,
consumers, and workers, to mention a few.