Marketing Hacks of Next PLC
International marketing can be defined as a process in which organizations focus on their marketing efforts and apply marketing principles in more than one country (International Marketing, 2012). It enables company to increase its productivity and profitability aspects by expanding its business operations and functions in the overseas markets (Keillor, Hult and Babakus, 2015). The present report is based upon Next plc who is the British multinational clothing, footwear and home product retailer. It will discuss the impact of micro and macro factors upon the retail market. It also states market potential and market entry strategy which Next plc needs to adopt to become successful in the overseas market. This report also shows marketing mix for the proposed market which helps company in achieving success.
Impact of micro and macro factors on retail market and the market recommendations
There are several micro and macro factors which closely impact the business operations and activities of Next plc that operates in the retail industry. Micro and macro factors affect the decision making process of company. On one hand, micro factor consists of suppliers, shareholders, employees, customers, media and competitors. On the other hand, political, economical, social, technological, environmental and legal factors are termed as macro factors (Mehta and et.al., 2015). These factors play a significant role in building and sustaining the competitive advantage in the dynamic business arena.
Customer: Customer is the king of market without which no firm can survive in the business environment. Each and every marketer frames competent strategies to attract the large customer base. Customer’s needs, wants and desires differ from region to region which affects the marketing decisions of Next plc.
Suppliers: It is the one who supplies raw material to company and affects its business activities. Suppliers of the organization also affect its marketing strategies and policies. If supplier provides poor quality of raw then it also affects the quality of final product and customer satisfaction as well (Yeniyurt and et.al., 2015). Along with that, when supplier charges high prices of the raw material then prices of the final product also get affected.
Competitor: Other organization that sells the similar product affects the productivity and profitability aspects of company (Elenkov, 2014). In order to build competitive advantage over rival firms, organization needs to make several marketing efforts.
Media: General public also impacts the decision making process of organization. As per this aspect, company needs to make efforts to satisfy the needs and wants of customers. In addition to this, organization needs to maintain health and safety aspects as per the laws and legislation.
Shareholders: They are also the owner of company and take part in its decision making process. They are highly concerned with the business operations and activities. Shareholders pressurize the organization to increase its profit by framing cost effective strategies.
Employees: In retail industry, success of company highly depends upon the skilled and efficient employees (McGoldrick and et.al., 2015). It also affects the sales and revenue of organization.
Next plc should take international move in Sri Lanka which is a part of Asia. In addition, this area provides more benefits to Next plc in terms of high productivity and profitability. In Asia, tourism rate is very high which enables Next plc to take benefit of wide customer base (Aghaei and et.al., 2014). However, in Nigeria, tourism rate is low as compared to Asia. Besides this, suppliers of innovative products are not available in Sri Lanka as it is a growing country. Further, high-level competitors are not available in the market. In contrary to this, competition rate is very high in Nigeria. Therefore, before moving to the international market, Next plc needs to take into consideration the factors which affect the success of corporation.
Political factors: Government policies and rules also affect the business aspects of company. It differs from country to country so; organization needs to consider all these aspects (Fan, Lau and Zhao, 2015).
Economic factors: It consists of customer perception, age and and income as well as the wealth pattern of country.
Social factors: Social responsibility of marketer towards customers also affects the marketing practices of organization (Asugman and McCullough, 2015). On the basis of this aspect, organization needs to produce the product which is not harmful for the society.
Technological factors: In the present era, technological changes take place frequently. Smooth production and operations of company highly depends upon the technology adopted (Lo and Kennedy, 2014).
Legal factors: Legal policies and regulations differ from country to country. It also affects the business decisions and policies of organization.
Environmental factors: Weather, geographical location, global changes in climate and other environmental effects closely impacts the strategies and policies of company when they move to international market (Li, Richardson and Tuna, 2014).
Political condition of Nigeria is more flexible than the policies of Sri Lanka which acts as a barrier in front of Next plc. Economical condition of Nigeria is more stable whereas, Sri Lanka is a developing country whose economic condition creates hurdles in achieving the success for firm (Bhowal and Paul, 2014). Use of technologies, the production of goods and services is high in Nigeria as compared to Asia. It would be recommended that before taking move to the international market Next plc should assess these factors. By framing suitable strategies and policies, corporation would be able to attain success in the strategic business environment (Esteban-Guitart, 2014).
Evaluating market potential
There are several factors which affect the selection of international entry mode on the basis of market potential available in the country in which they want to take entry. These factors are enumerated as below:
Market size: It is one of the main factors which company needs to consider while they plan to expand their business operations at international level. It closely affects the expansion decisions of company (Lee and et.al., 2014). If market size of country is large then it requires high level of commitment and investment (Bitektine and Haack, 2015). Therefore, before taking entry at the international level, organization needs to assess the market size of country.
Market growth: Success of company highly depends upon the growth potential of country in which they wish to expand their business activities. After assessing the growth pattern or market trends, organization needs to take expansion decision.
Government regulations: Legal laws and legislation affects the entry mode which firm undertakes to enter in the global market. For instance, there are several nations that are having legislation in relation to international business. This presents that every global company needs to have a local partner for the purpose of carrying out business in international market (Marandu, 2015). It creates difficulty in front of the foreign companies who want to expand their business at global level.
Level of competition: Existence of competitors and their contribution in sales in the global market affects the entry mode of other country. This factor plays a crucial role in achieving success in the competitive business environment.
Technology: Technological development of country also affects the entry mode of company that wants to expand their business operations at global level. Besides this, customer awareness in relation to the technological aspects also affects the decisions as well as strategies and policies of the firm (Rothman and Mizrahi, 2014).