International Marketing Hilfiger Fashion

UNIT 51:International Marketing

Pearson BTEC Level 5 HND Diplomain Business (QCF)

International Marketing Hilfiger Fashion

Scenario One: Business report

The early success of the Hilfiger brand was largely due to two men: U.S. designer Tommy Hilfiger and Indian textile magnate Mohan Murjani. Hilfiger designed blue jeans for Jordache, but in 1984, Murjani sought him out to be a designer for Murjani International. As one of the instrumental people in bringing about the designer blue-jeans craze of the 1970s, Murjani wanted to develop a new brand of clothing by offering a line of slightly less preppy and less expensive clothes than those offered by Ralph Lauren that he thought would attract a young mass-appeal audience.

Maintaining that “Fashion brands have to reinvent themselves, just like Madonna does,” Hilfiger has gone from preppy to urban and back again. Hilfiger initially encountered some negative reactions abroad to its image of being a U.S. brand. Although some U.S. clothing products have been well received abroad (such as jeans), many have encountered problems among Europeans who tend to see France and Italy as the upscale fashion centres. To accommodate European tastes, Hilfiger has switched to wool sweaters, adjusted to the European preference for slimmer-looking jeans and smaller shirt logos, and created a line of added-luxury items, such as leather jackets and cashmere sweaters for the Italian market. To make these changes and adapt its look to the European demands, Hilfiger set up a design staff in Amsterdam that includes almost 30 different nationalities.

Unit 51 International marketing

In terms of promotion, Hilfiger has used celebrity advertising, including Sheryl Crow, Jewel, Beyoncé, and the husband-wife team of entertainer David Bowie and supermodel Iman. Film actresses Renée Zellweger and Claudia Gerini and France’s first lady Carla Bruni helped the company sell a limited edition bag to support Breast Health International.

In the United States, Hilfiger traditionally relied mainly on wholesaling to about 1,800 department stores, many of which contained stand-alone Hilfiger departments. It has stayed away from chains considered more low-end, such as JCPenney and Sears, though it does sell its outdated stock to discount chains T.J. Maxx and Marshalls. Distribution is perhaps the biggest difference Hilfiger found when entering Europe. Because the company succeeded in the United States by first going into department stores, it put an early European emphasis on them as well, which led to its entry into such leading chains as Galeries Lafayette in France and El Corte Inglés in Spain. Hilfiger entered most Asian countries through licensing agreements; however, as sales grew substantially in China and Japan, it turned to self-ownership within those markets.

LO1: Understandthe conceptofinternational marketing for potential foreign markets.

 

Write a detailedmemo to your International Marketing Director that explainsthe importance of adopting an International Marketing Approach (IMA) as a prelude for international development operations. 

 

The following ACs must be included in your memo;

AC1.1 Task one : Memo

In your memo to the International Marketing Director, provide an explanation of why Hilfiger should develop international marketing.

Guidelines:
 Write in a memo format.

·         Give 2 examples of why Hilfiger should expand its international marketing

·         How will Hilfiger benefit from international marketing?

 

 

AC1.2 Include an analysis of at least one emerging market in which Hilfiger wishes to operate in terms of PEST (Political – Economic – Social – Technology).

 

Guidelines:
 Write in a memo format.

·         Briefly outline what is PEST

·         Conduct a PEST analysis on a potential emerging market (country) for Hilfiger fashion

·         Select which PEST factor is the most important for Hilfiger and justify why?

Unit 51 International marketing

AC1.3 Evaluate international marketing research techniques for Hilfigernew product launch of the new range of Men’s shirt.

Guidelines:
 Write in a memo format.

·         Outline 2 international marketing research techniques

·         Apply these techniques to Hilfigernew product launch

·         Give the advantages these marketing techniques will have for Hilfiger’s new T-shirt

 

 

AC1.4 Evaluate how Dubai as a foreign target market will be attractive for Hilfiger’s new product

Guidelines:
 Write in a memo format.

·         Briefly discuss the Dubai market

·         Evaluate how the Dubai market will be attractive for Hilfiger new T-shirt

·         Give the potential advantages&disadvantages the  Dubai market will have on this new product

·         Justify and give your opinion on this market for Hilfiger new T-shirt.any recommendations?

 

 

Merits and Distinctions

D1 (relates to Q1.1)

(i)             Give one reason why Hilfigershould not develop international marketing using and synthesising a range of sources of information to support your answer.

(ii)             Justify your argument; provide evidence of at least 2 sources of information used to support your answer.

 

 

D3  (relates to Q1.2)

(i)            Suggest which PEST factor is most important for Hilfiger

(ii)          Give a critical evaluation into why this factor is the most important, draw on other examples using various sources to justify your point.

 

 

Scenario Two–Location choice and mode of entry into international markets

As part of Hilfiger expansion strategy and despite intense competition with D&G, The Italian Designer manufacturer, you have succeeded in convincing your International Marketing Director to expand into Dubai.  To operate in this new market several options are available. These options may consist of direct or indirect export, foreign direct investment or establishing a new manufacture.

LO2:  Understandhow to makeexportchannel and distribution decisions.

 

As International Marketing Assistant Manager, your task will be to assess all these options and suggest to the International Marketing team the one you think might be the most appropriate and effective. Provide your assessment and recommendations in a report format.

In your report, the following must be included carefully;

2.1 Explain how channels evolve in distributing a new design T-Shirtto Dubai

Guidelines:
 Write in a report format.

·         Briefly explain how channels evolve in distribution

·         Using Hilfigernew product as evidence show how channels evolve in distribution to Dubai

 

 

2.2

& 2.3

 

 

Describe reliable export channels

 Include an evaluationof the export distribution channels for T-Shirt

Guidelines:
 Write in a report format

·         Discuss what is a reliable export channel using examples

·         Give an evaluation of distribution channels for the new Hilfigert-shirt

 AC2.

2.4 Analyse how foreign manufacturing and investment decisions are made; in your analysis make specific reference to Hilfigermanufacturing and investing in Dubai.

Guidelines:
Write in a report format

·         Briefly discuss foreign manufacturing and investment decisions in the context of how they are made

·         Using Hilfiger as an example comment on how they would manufacture and invest in Dubai

·         Make comment on the potential success or failure

LO3: Be able to present a marketingplan for a foreignmarket

LO4:  Understandcontrol methodsfor international marketing

 

All preliminary tasks have been conducted and Hilfiger International Marketing Director is willing to set up a manufacturing plant in Dubai. However, he needs to create and implement a marketing plan for this market and asks you to design the marketing plan to be marketed in Dubai.

In your planning document, the following must be included carefully;

3.1 Produce a set of international marketing objectives for the T-Shirt

Guidelines:
Write in a marketing plan format

·         Create your own international marketing objectives based on Hilfigernew product

·         Objectives must reflect trading, integrating economies, encouraging social and cultural exchange, improving welfare and assistance of countries peopleetc.

 

 

 

3.2 Createand outline how you plan to enter into the Dubai market.

Guidelines:
Write in a marketing plan format

·         Create a plan to enter the Dubai market

·         When making your strategy consider various international market entry methods 

·         Consider criteria such as the product, resources, competition, public policy, pricing, internal capabilities etc.

3.3  Identifyand include the international marketing mixin planning fortheDubai market.

Guidelines:
Write in a marketing plan format

·         Outline the international marketing mix

·         Apply the international marketing mix towards the Dubai market

 

 

 

3.4 Review relevant ethical andenvironmental issues ininternationalmarketing within Dubai

Guidelines:
Write in a marketing plan format

 

·         Comment on the ethical and environmental issues within Dubai

·         Use examples to enhance your review of these topics

·         Make suggestions on how to improve these 2 topics for Dubai

4.1 Explain why international marketing planning should be monitored. 

Guidelines:
Write in a marketing plan format

  • Explain why international marketing should be monitored with relation to the new product from Hilfiger
  • Mention the importance of monitoring and what risks could happen without it

4.2 Analyse ways of controlling export channels

Guidelines:
Write in a marketing plan format

  • Outline what is an export channel
  • Outline the ways of controlling export channels
  • Give working examples towards controlling export channels
  • Reflect and justify your opinion on this process

4.3 Describe barriers to international marketing

Guidelines:
Write in a marketing plan format

  • Outline the various barriers towards international marketing
  • Give working examples on how these barriers affect international marketing

4.4 Evaluate methods of communication with key international marketing personnel.

Guidelines:
Write in a marketing plan format

  • Outline various methods of communication
  • Give the advantages and disadvantages of these communication methods
  • Using an example or scenario, suggest which of these methods are suitable for communicating with key marketing personnel

LO1 Understand the Concept of international marketing for potential foreign markets.

1.1 Explain why firms develop international marketing.

1.2  Analyse a foreign marketing terms of PEST

1.3 Evaluate international marketing research techniques as part of a product launch.

1.4  Evaluate a foreign target market for identified products

LO2 Understand how to make export channel and distribution decisions

2.1 Explain how channels evolve in distributing identified products to an export market.

2.2 Describe reliable export channels for products.

2.3  Evaluate export distribution channels

2.4 Analyse how foreign manufacturing and investment decisions are made.

LO3 Be able to present a marketing plan for a foreign market.

3.1  Produce international marketing objectives

3.2 Create plans to enter identified foreign markets

3.3 Identify the international marketing mix in planning for the international market

3.4 Review relevant ethical and environmental issues in international marketing.

LO4 Understand control methods for international marketing.

4.1 Explainwhyinternational marketingplanning should be monitored

4.2 Analyse ways of controlling export channels

4.3 Describe barriers to international marketing

4.4 Evaluate methods of communication with key international marketing personnel.

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