Global Marketing - Extensive Analysis of Micro and Macro Environmental Factors
Maximum Word Length: 2,500 words
The report is 2,500 words maximum. The word count excludes only the title page, contents page, reference list and up to three summary tables maximum (word count for each summary table should be not more than 100 words and must be given under each table). No appendices are allowed. All excesses over 2,500 report word limit and 100 words per table will be penalised, for details see the PG Handbook.
Requirement: as provided in the module guide
You have been hired as a consultant for a company/ brand of your choice (choose one category from the following: athleisure wear for men and women; vegetarian or vegan product line; video game; face or body care for men or women; low/ no alcohol beer). You are required to consider a new international market to launch the company’s product/brand. The product/ brand origin can be either the UK or any other country market. The new international market you will consider is your choice. You are strongly encouraged NOT to pick a brand that is globally-established already, such as for example Nike. Identify a new or emerging brand.
The company would like you to advise them on key marketing strategy considerations for launching their product/ brand in this market. You are required to submit a written report (of maximum 2,500 words) that should have the following content and structure:
Project title, Executive Summary, List of contents (compulsory but not form the word-count)
Introduction (5% of total word-count)
Introduction to the report and brief background of the brand and the new international country market.
Report content
Macro- and micro-environment analysis and evaluation of major factors that may impact brand performance in the proposed market most significantly:
Conduct a market macro-environment analysis of a country as a new international market for the company’s product/ brand. The analysis should cover all components of the macro-environment, and consider its implications for marketing strategy specifically. As a minimum, you are expected to base the analysis on SLEPT framework, however, the use of PESTLE as an extended framework is encouraged. Identify the macro-environment factors that may impact the brand’s performance most significantly. Given the focus of the module a key expectation is that your macro-environment analysis will examine cultural environment conditions when analysing sociocultural component.
Micro-environment analysis should identify up to 3 forces that may impact the product/brand performance significantly, and suggest strategic steps the company can undertake to mitigate these forces.
The analysis should draw from market/industry reports and academic literature. Going beyond the recommended (core and optional) literature sources and sourcing additional literature and reports is not compulsory but encouraged. (25-30% of total word-count)
A critical evaluation of culture-based positioning strategy options (GCCP, FCCP, LCCP and hybrid) and recommendation of optimal strategy and related marketing mix for the brand:
Identify and discuss advantages and disadvantages of each strategy for the brand and make a recommendation of the optimal strategy appropriate for the selected target segment. Support your discussion with academic literature and findings of cultural environment analysis. Provide recommendations on how positioning strategy can be implemented in 2 marketing mix elements of your choice. Consideration of potential implications of the selected positioning on non-target groups is not compulsory but is desirable. (30-35% of word-count)
Corporate social responsibility and ethical marketing considerations
Consider whether and how your proposed strategy contributes to the corporate social responsibility agenda. Evaluate potential ethical risks your recommendations may pose to company’s stakeholders. Draw on recent examples and academic research. (15-20% of word-count)
Conclusion (5% of total word-count)
References (not included in the final word-count)
You must make reference to relevant international marketing theories and concepts, identify and utilise relevant market/ industry/ consumer data and recent academic research to support your work.
Global Marketing
Student Name
Institution Affiliation
Date
Table of Contents TOC \o "1-3" \h \z \u Executive Summary PAGEREF _Toc61298958 \h 3Introduction PAGEREF _Toc61298959 \h 5Macro-Environmental Analysis PAGEREF _Toc61298960 \h 6Micro-Environment Analysis PAGEREF _Toc61298961 \h 8Evaluation of Culture-based Positioning Strategy Options PAGEREF _Toc61298962 \h 9Corporate Social Responsibility and Ethical Marketing Considerations PAGEREF _Toc61298963 \h 12Conclusion PAGEREF _Toc61298964 \h 12References PAGEREF _Toc61298965 \h 14
Executive Summary
Business ventures into foreign markets and regions need to be planned accordingly and tactfully. For Girlfriend Collective to expand into China to sell its eco-friendly athleisure products, it must conduct a thorough analysis of micro and macro-environmental factors of the Asian nation. Similarly, the brand should critically evaluate the different culture-based positioning strategy options to determine the optimal approach. Furthermore, the company should provide recommendations on how positioning strategy can be implemented in 2 marketing mix elements. Girlfriend Collective should also consider whether and how the proposed strategy contributes to the corporate social responsibility agenda. Finally, the brand should evaluate potential ethical risks the recommendations may pose to the company's stakeholders.
Introduction
Clothing is a basic human need, and individuals worldwide strive to ensure that they dress decently. While some people just look for attires that will cover their bodies, others are keen on dressing, not just fashionable garments but also those they are extremely comfortable in. These types of people/ consumers want value for their money and are willing to spend huge sums of money on quality products. It is on this breadth that global apparel companies such as Nike and Adidas have thrived. With well-established research and development teams, these organizations continuously scan the market and the environment to understand dynamic consumer tastes and preferences.
Nonetheless, despite the above companies' stronghold in the apparel industry, some brands are coming and are giving these established firms a run for their money. One notable brand is Girlfriend Collective, which was established in 2015 to create transparency in fashion. The athleisure and sustainable fashion brand have its headquarters in Seattle, Washington. The brand is keen on ethical manufacturing. The founders built the brand on a sustainable mindset because their products are eco-friendly and made from recycled materials. The brand acknowledges the above facts on its website by stating, "We've made a point to focus on things that matter to us like ethical manufacturing, recycled materials, and celebrating as many types of bodies as we can" (Girlfriend.com, 2021). It is about time that the brand cements its positioning globally by setting up operations in different countries. Particularly, Girlfriend Collective needs to consider setting up in China to benefit from the vast population. Chinese are also eco-friendly and, as such, will be highly receptive to the sustainable products from Girlfriend Collective. However, it is vital to examine and analyze the macro and microenvironment in China, evaluate culture-based positioning strategy options, and determine whether the proposed strategy contributes to the corporate social responsibility agenda.
Macro-Environmental Analysis
The macro-environment impacts businesses in how they perform and operate and make decisions, and establish strategies. The macro-environment is quite dynamic, and as such, it is fundamental that entities continuously keep abreast and track the changes. Macro-environmental factors are external because they are beyond the control of the entities (Lin, 2018). There are various frameworks that Girlfriend Collective can use to analyze the macro-environment in China before venturing into the region, including SLEPT and PESTEL. The PESTEL framework encompasses political, economic, sociocultural, technological, environmental, and legal factors, as shown in the figure below.
Political Factors: It relates to how an organization or industry is impacted by the government and government policies in general. Policies and laws established by governments significantly influence business operations. These may be in the form of stringent taxes and rules surrounding environmental protection, competition, and pricing, among others. The Chinese government is very strict and has established tough measures, particularly on multinational companies operating in the region, to protect the locals from exploitation (Cotton Lifestyle Monitor, 2021). Similarly, the US and China's hostile trade relations are most likely going to impact the brand's proposed venture into the Asian region.
Economic Factors: These are factors that determine how Girlfriend Collective will conduct business in China and how profitable the brand will be. With China poised to become the largest economy globally, the brand's proposed venture into the Asian nation is bound to be profitable and very lucrative in the long run. Similarly, Girlfriend Collective will benefit from the low cost of labor in China. The brand will also exhibit reduced transportation costs (My Green Goodiebag, 2018). This is because currently, it sources its recycled raw materials (water bottles) from Taiwan.
Sociocultural Factors: These factors influence and affect not just a society's basic values and preferences but even behavior. China is one of the most populous nations globally, with a population of over 1.4 billion people (김병조, 2015). Despite measures to curtail the population growth in the region, the vast numbers of people will offer Girlfriend Collective ample market for its eco-friendly products. Similarly, about 48% of the Chinese population is female, which is the primary target market for Girlfriend Collective. It is also reported that about 64% of the Chinese population are young (Shafie and Kamis, 2019). These are fashion-conscious individuals and are keen on adorning comfortable attires such as those produced by Girlfriend Collective. Additionally, while the Chinese are fairly conservative and are known for their traditional attires and deep regard for their culture, the scenario has greatly changed over the past (Manrai, 2020). The young generation has embraced the modern culture and would be more inclined to accept products from the brand.
Figure 2: /statistics/251524/population-distribution-by-age-group-in-china/
Technological Factors: China is high-tech savvy. As such, Girlfriend Collective is sure to benefit from the technological innovations and developments in the region in new distribution and manufacturing methods.
Environmental Factors: The Chinese government has established stringent regulations governing manufacturing companies in the region, particularly in ensuring they are environmental-friendly. Nonetheless, Girlfriend Collective has an advantage in that regard since it was founded and continues to endear to eco-friendly principles. The brand manufactures its products from recycled water bottles in Taiwan's facility (Medium.com, 2017). Its sports bra collection, for instance, is made from ECONYL yarn that has a much lower environmental impact.
Legal Factors: It is vital that Girlfriend Collective understand what is and isn't legal in China before venturing into the region. It needs to understand consumer rights and laws to avoid heavy fines from the Chinese government. The brand also needs to comprehend health and safety requirements. Additionally, while China has lenient employment policies and regulations, the brand needs to consider aspects and issues such as child labor and slavery and desist from engaging in them.
Micro-Environment Analysis
These are the factors that will directly impact the Girlfriend Collective's venture and continued operation in China. They comprise of factors that will influence not only the brand's daily proceedings but also general performance. The first micro-environmental factor that the brand needs to take into account is the consumer. In the current hostile business environment, it is fundamental that brands such as Girlfriend Collective understand that the consumer is king and strategize to ensure their needs, preferences, and taste...