INTERNATIONAL MARKETING STRATEGIES OF HARVEY

NICHOLAS

1
 Table of Contents
Part 3) Strategy for Market Entry....................................................................................................3
1. Selection and justification of new international market to enter (China)................................3
2. Recommended market entry strategy.......................................................................................5
3. Recommendations for standardisation or Adaptation (Marketing mix framework)................6
4. Intended Points of Parity (POP) and Points of Differentiation (POD)....................................7
Reference List..................................................................................................................................9

2
Part 3) Strategy for Market Entry

1. Selection and justification of new international market to enter (China)

Business organisations enter into a new global market to expand their business to provide
accounting services to their respective international clients. Expanding business into the global
market, an organisation builds its global or international reputation and is preferred by more
consumers (Ismail, 2018). As Harvey Nicholas is a departmental store-based business
organisation, it offers its customers a variety of cosmetic products as well as fashionable dresses.
China has been selected for expanding its business in future for multiple possible reasons. The
prime reason they might be considered is the huge population of people of the People's Republic
of China (PRC). The selection of the right market for a business organisation to expand its
business by supplying its product is a significant step that must be taken considering multiple
factors (Japutra et al. 2018).

Selection of suitable and preferable markets for a business organisation decides the viability and
strength of the organisation's expansion strategy. Apart from that selection, the right market also
helps an organisation in modifying its shape for the international market, business plan and
growth and development of that organisation (Krisnatalia, 2021). Justification for selecting
China for expanding the business of Harvey Nicholas is due to the utilisation of cosmetic
products by a large section of Chinese people. It is researched that 39% of overall cosmetic and
beauty caste products are used by the age group of people between 19 and 29 years in china
(Statista.com, 2021). The youth population between 19 and 39 years use most of the beauty and
personal care products in China. Apart from that, another 27% of consumers use beauty and
cosmetic products by customers of the age group 30 to 39. The demand and utilisation of
cosmetic and fashionable clothes have increased in the last few decades in China (Kramer,
2020). This is the reason and justification for selecting China as the target international market
for expanding business.

Apart from that the luxury cloth and other goods produced by Harvey Nicholas can also have
scope to sell in the Chinese market. It has been justified by the fact that 43% of people in the age
group 31 to 41 years purchase most of the luxury items in the years 2021 and 2022. Collectively,

3
93% of luxury products such as fashionable clothes, and other accessories are purchased by the
age group from 21 to 41 years (Ma, 2021). For this justification, two graphs are checked below
that state the scenario in a more represent able way.

Figure 1: Consumption of beauty and personal care cosmetic products in china for 2021

(Source: Statista.com, 2021)

4
 Figure 2: Purchase of luxury products in China by age group, 2021-2022

(Source: Ma, 2021)

2. Recommended market entry strategy

In order to recommend marketing strategies in the case of an international market, it has to focus
on all internal and external factors that might significantly influence the products of specific
business organisations in that specific country (Pantano and Dennis, 2019). It includes all the
business practices that promote the business organisation to increase its value such as prime
brand messaging, analysing customer data demographic and many others (Trim and Lee, 2021).
Researchers have analysed the current scenario of the Chinese market and formulated a
recommendation for Harvey Nicholas to expand its business in China. One of the supreme
challenges for Harvey Nicholas is analysed in terms of increasing its customer traffic. In the
concern, it is recommended to Harvey Nicholas create its brand awareness using social network
advertising (Ntioudi, 2019). Apart from that, Harvey Nicholas also needs to increase customer
traffic at its online as well as offline stores in China.

5
The best suitable approach is recommended by Harvey Nicholas to launch its product in the
upcoming lunar year. It is analysed that Chinese people celebrate the lunar year as a good fortune
and purchase multiple things to celebrate (Japutra et al. 2019). Apart from that, “money-filled
red packets” are used to exchange in china on the occasion of a new year. Harvey Nicholas can
appreciate using their luxury product in exchange to increase its sales. In collaboration with “Key
Opinion Leaders”', social media platforms might be used to launch its product to target more
audiences.

3. Recommendations for standardisation or Adaptation (Marketing mix framework)

6
Marketing Mix Standardisation Adaptation
(4Ps)

Product Size, colour and quality of products such as lipstick, and

cosmetic creams must be standardised to attract more
consumers.

The brand name would remain same whereas the slogan

or brand mantra would be developed in local language to
address the local concept in order to attract more
consumers.

Services in the form of customer query resolution must

be upgraded to enhance customer helpline services. This
will help in creating brand value in China.

Price Harvey Nicholas needs to remain at its standard price.

Apart from that, they need to work on transportation
costs through efficient supply chain management that
can decrease the price of products and attract more
consumers. Occasional discounts must be provided to
attract customers on special occasions such as Chinese
New Year celebration, and other festivals namely
Lantern, Qinming, Ghost festival and many more.

Place Distribution channels need to be revised and focused on

online stores more in the Global Covid-19 scenario.
Need to modify the website and online application by
adding Chinese language so that customers can easily
understand and can be targeted more.

Promotion Recommended promotional strategies must focus on

7
 Table 1: Marketing Mix (4Ps) based on recommendations for standardisation or
adaptation

(Source: Developed by learner)

4. Intended Points of Parity (POP) and Points of Differentiation (POD)

China is the hub of the cosmetic and beauty product market. The Covid-19 pandemic hampers
the distribution of products in China. The vast competitive beauty market of China creates a
hustle among the existing rivalries such as Lancome and L'Oreal Paris (Pantano and Dennis,
2019). In the competitive market, Harvey Nicholas also competes with them significantly. POPs
Harvey Nicholas meets with its moisturising and advanced cream as well as with intense anti-
oxidant serum.

8
Reference List

Ismail, A., 2018. International Marketing Strategies in the Celebrity Cosmetics Industry: A Dual
Case Study: Huda Beauty and Fenty Beauty.

Japutra, A., Nguyen, B. and Melewar, T.C., 2018. A Framework of Brand Strategy and the
“Glocalization” Approach. Brand Culture and Identity: Concepts, Methodologies, Tools, and
Applications: Concepts, Methodologies, Tools, and Applications, p.340.

Japutra, A., Nguyen, B. and Melewar, T.C., 2019. A Framework of Brand Strategy and the
“Glocalization” Approach: The Case of Indonesia. In Brand Culture and Identity: Concepts,
Methodologies, Tools, and Applications (pp. 340-364). IGI global.

Kramer, E., 2020. New vintage‐new history? The sukajan (souvenir jacket) and its fashionable
reproduction. International Journal of Fashion Studies, 7(1), pp.25-47.

Krisnatalia, H., 2021. Celebrity Fandom, and the Emerging Form of the Hospitality Industry
Interwind with the Luxury Fashion Labels in Delivering Economic Competitiveness.

Ma, Y. 2021. Share of luxury consumers in China 2021, by age group. Distribution of luxury
consumers in China as of June 2021, by age group. Viewe on 2nd April 2022 viewed from
https://www.statista.com/statistics/978021/china-share-of-online-luxury-consumers-by-age/
#:~:text=According%20to%20the%20results%20of,21%20and%2026%20years%20old.

Ntioudi, C., 2019. Brand Value and Marketing Strategies of Cosmetics Brands in the Greek
Market.

Pantano, E. and Dennis, C., 2019. Store buildings as tourist attractions: Mining retail meaning of
store building pictures through a machine learning approach. Journal of Retailing and Consumer
Services, 51, pp.304-310.

Statista.com, 2021. Distribution of beauty and personal care consumers in China 2019, by age.
Statista. Viewe on 2nd April 2022 viewed from

9
https://www.statista.com/statistics/1238834/china-distribution-of-beauty-and-personal-care-
product-consumers-by-age/

Trim, P.R. and Lee, Y.I., 2021. How B2B marketers interact with customers and develop
knowledge to produce a co-owned marketing strategy. Journal of Business & Industrial
Marketing.

10