International Marketing Strategy Assignment Sample

International Marketing Strategy Assignments

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1 International Expansion of Jo Harpur Jewelry into the Turkish Market

Globalization and the advancement of digital communication technologies have unlocked the corridor of opportunities for businesses to add more colour to their rainbow by expanding their business in the intercontinental markets (Martinet al., 2021). With the influx of ample amount of opportunities and benefits, businesses are not limiting their opportunities just only operating in their regional markets, rather they are looking for innovative ways to expand their market in an overseas location. The tactics and methods of business diversification and expansion in countries around the globe are called international marketing strategies (Gnizy, 2019). Jo Harpur is an award-winning Jewelry Company situated in Dublin, Ireland. This popular Jewelry Company is planning to expand their company in the land of Turkey.

The report will discuss in detail the multiple aspects related to the international marketing strategy required for the expansion of Jo Harpur Jewelry limited in Turkey. For understanding the nature of the Turkey market, the report will firstly imply the PESTLE Analyzing tool to understand the macro environment and will apply Mckinsey 7’s Model and Porter’s 5 Forces to identify the microenvironment of the Turkish Jewelry Market. Followed by this, the report will emphasize the opportunities lying in the Turkey Jewelry market. Further, the report will highlight the marketing objective and marketing strategy concerning the market expansion. The final part will conclude using 4P’s analyzing tool for identifying the right marketing tactic for Jo Harpur. Lastly, the report will provide an effective marketing action plan for the successful expansion of Jo Harpur in the Turkish market.

Fig 1: Logo of Jo Harpur Jewelry Limited

(Source: Jo Harpur. N.D)

2. Company Overview

The Irish popular Jewelry retail company, Jo Harpur Jewelry Limited has established four years ago on 15th March 2016 (Jo Harpur. N.D.). The company offers a collection of costume jewellery and watches uniquely designed by its owner Jo Harpur. These pieces of jewellery are mainly made with gold plating and sterling silver. The key reason behind the popularity and success of the Jo Harpur Jewelry Company is its affordable price and unique design. Jo Harpur Jewelry limited has 5 employees and the annual sales of the company were $143,000 in USD. The company has been named after the founder of the company, Jo Harpur. Her designed products are available in many Irish retail outlets and now the company also distributes their products all over the globe.

3. Situation Analysis

3.1 Macro Environment Analysis

3.2 Micro Environment Analysis

3.2.1 The Internal Analysis by Mckinsey 7’s Model

1. Structure: The Jo Harpur Jewelry Company has a flatter organizational hierarchy. The company keeps high coordination between different departments and encourages the team to achieve their organizational objective.
2. Strategy: The key strategy of Jo Harpur is the company communicates with the employees and stakeholders for acknowledging their goals. Along with this the organization also addresses competitive pressure and creates strategic measures to ensure sustainability (Wanitkittikul, K., Pratoom, K. and Jhundra-indra, P., 2018).
3. Skill: All the employees of the company possess high skills and the company hires employees with high qualifications and merit. Also, the company maintains particular attention to the skill enhancement of the workforce.
4. System: Jo Harpur has well-demarcated systems and has a special system for aligning methods of the other departmental operations (Aasen et al., 2018).
5. Shared Values: The core value of Jo Harpur is to foster creativity and provide support to other employees to enhance their performance. 
6. Style: Jo Harpur Jewelry Company applies a participative leadership style that enables the employees to engage in the decision making
7. Staff: The Irish Jewelry Company, Jo Harpur is a medium-sized company with 5 employees. The unique design of the organization is specially designed by its owner. But the company gives importance to giving to their employees to familiarize them with the company and the values of the company.

Fig 2: Mckinsey 7’s Model

(Source: Gechkovaand Kaleeva, 2020)

3.2.2 Operational Environment by Porter’s 5 Forces

Bargaining Power of Buyers: The jewellery industry of Turkey is vibrant and unique. The growing Jewelry market has drawn multiple competitions in the fertile ground of Turkey (Akkoc and Civcir, 2019). The demand for jewellery is among the highest as jewellery is regarded as a worthy investment for women. In terms of gold ownership, Turkey ranks second after India. With the abundant demands of ornaments and to suffice the demand, multiple options have been raised to the consumers. This has led to an increase in the bargaining power of consumers among Turkish citizens. In this case, the Jo Harpur Company will be able to offer their gold plated and silver plated jewellery to the Turkish people at an affordable price.

Fig 3: Gold Jewelry demand in turkey

(Source: U.S Global Investors (2012)

Bargaining power of suppliers: Turkey comes under the highest gold producer in Europe with 27 tons of gold production per year (Özen and Özen, 2018). Apart from this, Turkey also offers a wide range of natural stones and silver. This high supply of ornamental materials has offered less bargaining power to suppliers. Therefore, the Jo Harpur Company will get multiple options among the suppliers and can acquire ornamental materials at a reasonable rate that will provide the benefit of competitive advantage with a little assistance of innovation and creativity.

The threat of new Entrances: When a market has huge demand, businesses compete to grab the opportunity. The Turkish ornament market is tremendously demanding, many ornament company tries to enter in the fertile ground of ornament industry (NALÇACIG?Land ÖZYILMAZ, 2020). Therefore, to maintain a position, the Jo Harpur Jewelry Company has to offer their product with a unique presentation as the consumers look for along with psychological pricing. The brand should also have to focus on building a strong brand reputation for retaining a large number of consumers.

The Threat of Substitute Products: The products of Jo Harpur are uniquely designed and the company also use personalized design service with excellent craftsmanship. The Turkish people love jewellery and the unique product offer of Jo Harpur will attract the citizens. The company has to attract consumers with affordable prices and with multiple offers.

Industry rivalry: Due to the high demand for ornaments in the Turkish market, the industry is flooded with competitors. But in consideration of the ornament demand, the competition is not much important as the demand is steadily growing (Saçmac? and Saçmac?, 2017). The Jo Harpur Jewelry limited will certainly gain much importance because of their uniqueness in ornaments and their affordable price. 

4. Marketing Objectives

4.1 Rational for Objectives

The Irish Jewelry company Jo Harpur is an award-winning Jewelry retailing company that is popularly known among the people of Ireland. The products of the company are unique because of their excellent craftsmanship, luxurious packaging and most importantly their handcrafted product which was specially brought from Spain. The company is now aiming to expand in Turkish land. The company has certain aims and objectives behind their expansion in Turkey. The business is aspiring to acquire more retail outlets and expanding its global footprints. The founder is dedicated to her ultimate objective of turning this brand into a lifestyle brand for all women all over the globe (Jackson, 2019).

4.2 Justification 

For penetrating the Turkish market with an objective to become a global lifestyle brand, the company will opt for a Strategic Joint venture for achieving their respective goals. The strategic Joint venture is the most common form of Joint venture where an organization agrees with two companies to actively take a decision and to work collaboratively (Lee and Yoon, 2020). This strategy will be effective for the Irish Jewelry company as each business engaged in the agreement will have access to the resource without spending excessive capital (Uenoet al., 2019). In this case, the Jewelry Company, Jo Harpur will be able to maintain its identity and can avoid pricing pressure that will enhance the business credibility in the new market of Turkey.

5. Marketing Strategy

5.1 Portfolio Analysis 

5.1.1 The Attractiveness of Turkey 

Turkey is the world's 10th biggest exporter of jewels, with 4.7 per cent of the total value of the 2019 exports. In that year, Turkey exported $5.1 billion of jewellery. The nation has seen remarkable development in the jewellery business in recent years, according to Turkish export data (CONTUK, BURUCU and GÜNGÖR, 2013). However, the Turkish jewellery sector is looking gloomy in 2020. During the initial two months of 2020 Turkish export firms made a slightly improved jewellery business, supplying $871 billion in jewellery. In March, April and May the exports of Turkish jewels have dropped significantly owing to the pandemic of coronavirus when 268 USD of jewellery were transported out of Turkey. The epidemic of COVID-19 resulted in a severe drop in luxury jewellery expenditure in 2020 and a strong decrease in women's premium exquisite jewels (Natchimuthu, Raj and Angadi, 2017). Decreased market confidence in financial instability and the strain on discretionary revenue affected expenses inexpensive goods, while transportation limitations and lock-downs have also affected the sector, which resulted in reduced tourist expenses. 

Luxury jewels, in fact, was one of the first sectors in which the epidemic had impacted deeply. The export of Turkish jewellery in January 2020 was worth USD 391 million, which increased in February (Duygun and ?en, 2020). March, April and May months registered a severe drop in profits of jewelry international trades due to coronavirus shutdown. The nation exported USD 3 million in April 2020, the last dollar in the first four months, according to Turkish export data. The Turkish Jewelry business is its best-performing export economy according to the Jewelry Exporters' Association (JTR). Turkey has recorded an increase in export shipments during the previous five years. 

In 2015 and 2016, exports of Turkish jewellery were above $3,000 million. In the past three years, this currency has grown significantly, with about USD 4,000 million in the number (Grynberg, Kaulihowa and Singogo, 2018). Turkey’s exportation of jewels reportedly reached 5,000 USD in 2019. In February, Turkey sold over 11,7 million tons of gold, as the global financial situation hit Turkey’s economy, recent statistics showed. 

Figure 4: Turkey Jewelry Exports

(Source: Kantur and Özcan, 2021)

5.1.2 Competitive Strength

Turkey has a range of opportunities when it comes to its jewellery market and its future possibilities are quite high if considered by reviewing the published reports on the market statistics (Kantur and Özcan, 2021). The basic foundation of the jewellery market is strong as the gold sector has seen consistent prosperity during the last five years which has enabled its jewellery market to be more confident and stable (Ek?io?lu and Tolunay, n.d). Considering the high standards of gold exportation, it can be said that the demand and rise of jewellery are on a higher level in the nation. 

1. Firstly, the Turkish jewellery market is flourished with high demand among the customers which is a great strength and attracts businesses to invest in the country (Duygun and ?en, 2020). 

2. Other than that, the country has allowing policies that encourage international companies to invest in the jewellery retail market and expand businesses (Depren, Kartal and Depren, 2021). 

3. Craftsmanship is another important element that can be considered to be a strengthening factor for international companies to expand in this market (Natchimuthu, Raj and Angadi, 2017). It helps the jewellery companies to make more gold-plated jewellery with an intricate design which develops the market demand for these jewellery items. Also, the craftsmen in the jewellery sector are focusing on the modernization of the designs so it is anticipated that the demands will increase among the customers positively. 

5.1.3 Strategic Market Entry Method 

Joint Venture 

A Joint Venture (JV) is an enterprise agreement in which companies decide to pool their money and other significant resources in order to execute an expansion plan of a venture. This endeavour may be a new initiative or a business (Killing, 2017). Each member is involved in a Joint venture (JV) for the related benefits, losses and expenditures. The company is nonetheless a separate legal entity from the additional business interests of the partners. Joint companies can adopt any legislative framework; however, they are in a colloquial collaboration. The pattern of a JV is open to businesses, collaborations, limited liability companies (LLCs) and others. Joint ventures can unite smaller and bigger businesses into one or more large or small initiatives and transactions. 

In order to ensure the achievement, a Joint venture might leverage both firms’ available assets (Killing, 2017). One business might have an established production procedure, whereas the other company could have stronger distribution networks. By applying economies of scale, the JV may push its output to a lower cost per unit than independently. There might be distinct backgrounds, talents and experiences for two firms or parties creating a Joint venture. Combined with a JV, each firm may profit from the other's knowledge and skills. 

For Jo Harpur jewellery, it can be a profitable approach that will lead to the company to better hold the Turkish jewellery retail market. Through a Joint venture approach, the company can make sure that its resources are properly used in the foreign market to reach its ultimate business goal (Depren, Kartal and Depren, 2021). A Joint venture will be a significant business strategy for the brand which will allow the company to establish a strong tie with other business entities and use the resources collaboratively to increase the market potential of the jewellery. It will allow Jo Harpur jewellery to build an intense market position. 

6. Marketing tactics 

6.1 7P Analysis

Product

Products are the basic elements that make a brand attractive to its customers (Yuliantine, Indasah and Siyoto, 2018). The idea is to make the products attractive and value worthy so that the market reputation and customer preference remain constant. Jo Harpur jewellery should maintain its design quality and focus on the Turkish designs of modern jewellery to assure that the customers get the value and design they prefer. 

Price

The price range needs to be maintained properly so that the market existence can be increased with a positive profitability graph. When it comes to gold plated jewellery, it becomes important to grab the exact value that a customer is able to spend. The market competition is high in the Turkish market where people love to do valuable and also metal-plated jewels (Natchimuthu, Raj and Angadi, 2017). The options for the customers are high so the company will have to ascertain such a price range that will attract more customers. 

Place

Other than the retail distribution of the jewellery, the company can opt for online platforms which can be through websites and other social media platforms. It will enhance the brand viability and ensure enhanced sales as people often prefer online jewellery shopping which can be a beneficial option for the brand. 

Promotion

For a jewellery brand, it becomes extremely prominent and significant to be visible to its target customers (Depren, Kartal and Depren, 2021). Especially in a market like Turkey where the demand for exquisite jewellery is high, promotion becomes a solo option that can distinguishably present a brand. Social media platforms and collaborations with social media influencers are some of the choices which might benefit the brand to expand its business. 

7. Marketing Action Plan

8. Conclusion

A set of attributes might be obtained from the accomplishment of the report which has aimed to provide a profound and accurate analysis through explicit interpretation. Several issues surfaced, after studying the fundamental aspects of company methods and elements that are based on the notion of business development. In the frame of reference to the Jo Harpur jewellery which will expand its business on the Turkish market, variables were rationalized. The entire paper focuses on a number of significant ideas related to market analysis and company strategy comprehension. The present report has been established to understand the market basics and how a company can expand in the international market through proper strategic approaches. A range of strategic elements has been rationalized to understand how the company can utilize some methods to conveniently establish a stable business in a foreign market with enhanced competitive advantages.

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