Managing Across Culture International Marketing Tactics of Barbour Company

International Marketing Tactics of Barbour Company
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International Marketing Tactics of Barbour Company
1 Executive Summary
Globalization has had a profound impact on the international market, transforming the way that businesses operate and compete in the global arena. To effectively navigate the challenges and opportunities presented by globalization, companies must conduct a thorough environmental analysis that considers both the macro and micro-level factors that influence the international market. Based on this analysis, companies can develop a market entry strategy that outlines the best approach to entering the new market (Thorisdottir & Johannsdottir, 2019). This may involve partnering with local businesses, establishing a joint venture with a local company, or acquiring an existing business in the target market. The strategy should be tailored to the target market’s unique characteristics and consider the company’s strengths and weaknesses. Once a market entry strategy has been established, the company must develop a functional marketing strategy that addresses the specific needs and preferences of the target market. In my project, I will explore the impact of globalization on the international market in greater detail. Also, the factors driving globalization will be examined, including technological advancements, trade liberalization, and deregulation. Apart from this, the impact of globalization on various sectors of the economy, including revenue generation, will be analyzed. Besides, the policy implications of globalization will be explored, notably regarding trade policies, labour laws, and environmental regulations. There would be an elaboration on how governments can balance the benefits of globalization with the need to protect local industries and ensure that the benefits of globalization are shared more equally. Finally, a conclusion will discuss globalization’s future and potential impact on the international market. In addition, globalization’s trends and challenges will be summarized, including the rise of protectionism, the impact of new technologies, and the need for greater international cooperation. Overall, this project aims to provide a comprehensive analysis of the effects of globalization on the global market while also exploring the challenges and opportunities for the future.
Table of Contents 1.     Executive Summary. 2 2.     Introduction. 5 3.     Discussion. 6 3.1      Environmental Analysis of Barbour Company. 6 3.2      PESTEL Analysis. 8 3.2.1 Political. 8 3.2.2 Economic. 8 3.2.3 Social. 8 3.2.4 Technological. 8 3.2.5 Environmental. 9 3.2.6 Legal. 9 3.3 Evaluation of Barbour’s International Marketing Decisions. 9 3.4 Porter’s Five Forces. 10 3.4.1 Threat of New Entrants. 10 3.4.2 Bargaining Power of Suppliers. 10 3.4.3 Bargaining Power of Buyers. 11 3.4.4 Threat of Substitutes. 11 3.4.5 Rivalry Among Existing Competitors. 11 3.5 Recommended Market Entry Strategy. 11 3.5.1 Direct Exporting. 11 3.5.2 Joint Venture. 12 3.5.3 Franchising. 12 3.5.4 Licensing. 12 3.5.5 Acquisition. 12 3.6 Outline of Functional Marketing Strategy. 13 3.6.1 Market Research. 13 3.6.2 Segmentation and Targeting. 13 3.6.2 Positioning. 13 3.6.3 Product Strategy. 13 4.     Conclusions and Recommendations. 14 4.1 Recommendations. 14 4.2 Conclusion. 15 5.     References. 17
2 Introduction
Globalization has been a significant force shaping the international market and marketing strategies. It increases the interconnectedness and interdependence of the world’s economies, societies, and cultures through the global exchange of goods, services, ideas, and information. Globalization has led to a global marketplace where businesses can access new markets, resources, and consumers worldwide. With the rise of globalization, international marketing has become more critical than ever as companies seek to expand their reach beyond their domestic markets (Goldman et al., 2020). Barbour is a British clothing company specializing in outerwear and is known for its iconic wax jackets. The globalization of markets and production, proposed by Theodore Levitt, suggests that companies need to adopt a standardized approach to marketing and production to achieve economies of scale and increase efficiency due to the increasing global interdependence of economies. Other scholars have challenged this theory, arguing that cultural, economic, and political diversity across countries requires companies to adapt their marketing strategies to local conditions. The cultural distance theory by Geert Hofstede suggests that cultural differences can affect consumer behaviour and preferences. Companies must understand and adapt to these cultural differences to succeed in international markets (Thorisdottir & Johannsdottir, 2019). Companies must consider that economic factors like exchange rates, inflation, and growth can affect global marketing decisions. Legal factors such as intellectual property and consumer protection laws can affect international marketing decisions. Companies must ensure that their products and marketing strategies comply with local laws and regulations.
3 Discussion
1 Environmental Analysis of Barbour Company
Barbour Company is a well-known fashion company that has been in operation for over 100 years. It has a strong brand reputation for producing high-quality outdoor clothing and accessories (BarbourHistory, 2021). The company has been successful in various areas, such as customer satisfaction, international expansion, efficient decision-making, and business analysis. This section will discuss the company’s performance in these areas. Customer satisfaction is critical for any business, and Barbour has successfully met its customers’ needs. According to a survey conducted by the company, 94% of customers were satisfied with the quality of the products (BarbourEarnings, 2022). The company has also implemented an effective customer feedback system that enables them to improve its products and services continually. International expansion is another area where Barbour has been successful. The company has a solid global presence, with over 40% of its revenue coming from international markets. The company has opened stores in various countries, such as the United States, Germany, France, and China. The graph below shows the trend of international sales in different regions in 2022. Efficient decision-making is crucial for any business, and Barbour has implemented effective strategies to improve its decision-making process. The company has invested heavily in technology to enhance its operations, such as using data analytics to make informed decisions. Similarly, business analysis is a crucial aspect of any business, and Barbour has successfully analyzed its operations and identified areas that need improvement (Arrigo, 2020). The company has invested in technology to enhance its analysis capabilities, such as using data analytics to analyze customer feedback and sales data.
Figure SEQ Figure \* ARABIC 1: Revenue of Barbour 2022 by Region (in Million GBP)
(Sabanoglu, 2023)
Barbour has been successful in various areas, such as customer satisfaction, international expansion, efficient decision-making, and business analysis. The company has continually implemented effective strategies to improve its operations, leading to its success. The graphs presented in this article show the trend of the company’s performance in these areas for the last five years. Globalization has transformed the international market, offering challenges and opportunities for companies seeking to expand their operations (BarbourHistory, 2021). By conducting a thorough environmental analysis and developing a tailored market entry and marketing strategy, companies can successfully navigate the complexities of the global marketplace and achieve long-term success in foreign markets. However, globalization has also led to several adverse effects. For example, local industries in developed countries have suffered due to increased competition from emerging economies (BarbourCSR, 2022). This has led to job losses and reduced wages, particularly in manufacturing. Globalization has also contributed to environmental degradation, as companies seek to exploit cheaper resources and lax environmental regulations.
2 PESTEL Analysis
3.2.1 Political. Barbour operates in a politically stable country with a democratic government. The UK’s political climate has remained relatively stable, which is a significant advantage for Barbour as it provides a secure environment for doing business. However, there are concerns about Brexit and its impact on the company’s supply chain and access to the EU market.
3.2.2 Economic. The UK economy has been growing steadily, although there has been some uncertainty due to Brexit. Barbour has a strong reputation and brand image, which enables it to command a premium price for its products. However, the company may face challenges in the future due to changing consumer behaviour and increasing competition in the marketplace.
3.2.3 Social. Barbour’s customer base primarily comprises middle-aged, affluent consumers who value quality and tradition. The company’s products are associated with a particular lifestyle and outdoor pursuits such as hunting and fishing (BarbourCSR, 2022). However, as the younger generation becomes more concerned about sustainability and ethical production, the company may need to adapt its business practices to meet changing consumer demands.
3.2.4 Technological. The fashion industry has been rapidly evolving due to advances in technology. Barbour has quickly adopted new technologies like e-commerce to reach a wider audience. However, the company may face challenges in the future due to the increasing use of automation and robotics in the manufacturing process.
3.2.5 Environmental. Barbour has tried to reduce its environmental impact by using sustainable materials and reducing waste. However, the company may face increasing pressure from consumers and regulatory bodies to adopt more environmentally friendly practices.
3.2.6 Legal. The fashion industry is subject to various regulations, such as health and safety standards and intellectual property laws. Barbour must comply with these regulations to avoid legal issues and maintain its reputation as a responsible and ethical company.
3.3 Evaluation of Barbour’s International Marketing Decisions
One of the critical decisions Barbour made was to expand its global presence by targeting new markets. The company recognized the growing demand for its products outside of its traditional markets in the UK and Europe and identified new opportunities in the US and Asia (Weavabel, 2023). To achieve this, Barbour developed a comprehensive international marketing strategy, which included opening new stores and expanding its online presence. The company also worked to adapt its products to suit local tastes and preferences, ensuring its offering was relevant and attractive to customers in different markets (Li et al., 2019). Another critical decision Barbour took was collaborating with other brands and designers to create new products and expand its appeal. For example, the company partnered with Land Rover to develop a range of clothing and accessories inspired by the iconic car brand and also collaborated with British designer Margaret Howell to produce a clothing collection with a minimalist aesthetic. Barbour has invested in its e-commerce capabilities to make purchasing its products easier for customers worldwide. The company offers international shipping and has localized its website to make it accessible to customers in different languages and currencies. By removing barriers to entry and making it simple for customers to buy its products online, Barbour has increased its revenue from international sales. Barbour recognizes that customers in different countries have unique preferences and cultural sensitivities. Barbour has localized its marketing campaigns to appeal to these other markets by tailoring its messaging, imagery, and promotions to fit the local culture. For example, Barbour’s marketing in Japan emphasizes the brand’s association with British heritage and craftsman...