Coursework Assignment Brief [FIRST SIT] SUBJECT TO EXTERNAL EXAMINER APPROVAL Semester: E16 Module Code: PM305 Module Title: International Marketing Programme: BSc (Honours) Level: Level 6 Format: International Marketing report This summative assessment represents 50% of the total marks for the module Presentation: None Any special requirements: The briefing paper should be submitted on the Student Portal along with a Turnitin Report Word Count 2,500 (excludes appendices) +/-10% allowance Deadline date for submission: 21st December 2016 by 14:00 hrs. Learning Outcomes: 1. Identify the principal managerial issues and policies necessary for success in international marketing. 2. Examine and evaluate methods of identifying and qualifying market potential in different parts of the world. 3. Illustrate the nature of overseas distribution systems (including agents and joint- ventures) and demonstrate the marketing implications of differences in culture in consumer behaviour. Assessment criteria Pitch Explanatory comments on the assessment criteria Maximum marks for each section Knowledge and Understanding • Clearly understands the assignment question and content related to learning outcomes. • Evidences Knowledge and understanding of the main concepts and key theories/ principles of Consumer behaviour • Undertakes Current research and applies main theoretical concepts, key theories and principal methods of qualifying a potential international market, critical success factors for international market and international marketing programme. 35 % Cognitive/ Intellectual Skills (e.g. analysis and synthesis; logic and argument; analytical reflection; organisation and communication of ideas and evidence) • Analyses and identifies a target international market. • Critically analyses and synthesises key principles, concepts, theories, and frameworks of success at international market and marketing and as well as their application to the given context. • Recommends and justifies suitable market entry strategy to gain overseas distribution into selected market and an appropriate marketing mix in line with differences in socio-culture. • Has researched beyond the key reading appropriate for the subject • Thoroughly logical work, supported by judiciously selected and evaluated evidences. • Investigates contradictory information and identify reasons for contradictions. Thus producing highly persuasive conclusions. 40% Graduate Skills for Life and Employment (e.g. research- related skills; written, graphical and oral communication skills; group working; problem-solving; practical and professional skills) • Demonstrates ability to evaluate a range of research informed literature, • Uses appropriate academic conventions (e.g. referencing, summaries, paraphrasing etc.) • Research-related skills (evidenced by collection and interpretation of data to support findings) • Written and graphical skills evidence ability to communicate professionally and confidently in a range of formats, at a high standard appropriate for graduate-level employment. • Problem-solving (is the strategy and recommendation based on the analysis). Thus evidencing ability in identifying solving a range of complex problems with divergent solution. • Has reflective ability to evaluate own strengths and weaknesses, showing attributes for graduate-level employment. • Practical and professional skills (work has right level of detail/ complexity) 25% Total 100 Assessment Task All learning outcomes will be assessed. This summative assessment represents 50% of total module marks. Background Michael Kors (MK) looks east Michael Kors (MK) is a well-known designer of luxury men's and women's ready-to-wear, accessories bags, footwear, watches, jewellery, eyewear and fragrance products internationally (Michael Kors, 2016). Michael Kors operates in all stages of value chain; design, marketing, distribution, and retail of branded goods. The American company has become a global luxury brand, with a global presence and stores in most prestigious cities in the world in around 35 years (Business Wire, 2013). MK first targeted women swear in 1981 and entered menswear market in 2002 and in 2014 company entered billion of brands like Wertheimers (Chanel perfumes), Giorgio Armani, Ralph Lauren, Dolce & Gabbana, Valentino and Miuccia Prada (Craik, 2016). The MK's main target are customers are 25 to 54 years old, with annual income above £30,000, in particular target status and personal ego conscious younger, affluent consumers, those are often overlooked by luxury brands. For its target consumers, MK brand stands for, higher end, quality, design, and craftsmanship (M. Turner, 2015). The designs are aesthetic as "pragmatic indulgence" luxurious, but classic and flattering. The company develops cultural trends and is seen as a master of the shift dress, the skirt suit and the modern coat. Also MK very quickly adapts and always ahead of its competitors, whereas some higher-end labels have size 14 and 16, but they're more like a 10 or 12. The company launched smaller wallets, for their new smaller bags. The company understands that the consumers want luxury, new style and budget- friendly price tags. Mk's success lies in its refusal to be snobbish but rather inclusive. Some fashion critics might dismiss as too 'commercial' brand, or too conservative, plain, or not edgy enough. But MK is defiantly pro-glamour with aspirational, comical add campaigns. Kars is associated with biggest names like Lauren Bacall, Jennifer Lopez to Nicole Kidman (The Independent, 2009). The company has an innovative approach to marketing and is an example of Omni-channel retail. (Business Wire, 2013) Michael Kors stores are operated, either directly or through licensing partners, in prestigious cities in the world, including New York, Beverly Hills, Chicago, London, Milan, Paris, Munich, Istanbul, Dubai, Seoul, Tokyo, Hong Kong, Shanghai and Rio de Janeiro. (Seeking Alpha, 2015). MKs business model of distribution covers three models: retail stores, wholesales, and licensing. • Retail format covers 48.8% of total revenue: It has 4 store types: Collection stores, Lifestyle stores, Outlet shops, and Ecommerce. It has 354 stores in USA and 183 International store located in Europe & Japan • Wholesale format covers 47.3% of total revenue: is "shops-in shops." the brand is sold via 2,541 Department & Specialty stores in USA and 1,497 International Specialty stores. • Licensing format covers 3.9% of whole revenue: A growing business format with licensed products (Eyewear, Jewellery, Fragrances, and Watches). In 2015, total revenue coming in at $1.1 billion, a 17.8% year over but also a trend in weakening comparable store sales and increasing online sales. (Seeking Alpha, 2015). MK has been a pioneer for fashion brands, being first to use Integra as a social channel. USA is MK's largest geographical market. The company is now focusing on expanding internationally, mainly in Europe, Asia-Pacific and Asia. In world market, apparel and footwear are projected to grow at a combined annual growth rate of 9% from 2014 to 2017. China is at the top of the international expansion due to its massive population and growing middle class and with 7% annual GDP growth. Thus, in 2016, MK acquired (HK) Limited, its exclusive company in China and other jurisdictions in Asia, John D. Idol, the company's chairman and CEO said in a press release. "As our licensed partner in this region to build the infrastructure, establish the brand and grow acceptance of Michael Kors in the Chinese market. We believe that we are on a strong trajectory with a rapidly growing following among Chinese, Japanese, Korean and Southeast Asian consumers," (Forte, 2016). However, in China is a market of opportunity and risk; related to higher taxes on lavish gifts and a growing preference of Chinese to purchase luxury goods abroad. As a result Michael Kors is now trying to look beyond China for their international growth. Post China, Japan and South Korea, the company is considering Taiwan and Hong Kong, India, Singapore, Malaysia, Thailand and Indonesia, in Asia, some Arab countries and eastern European countries in EU. India, Asia's third-largest economy has its own risks like entry barriers, high tariffs and counterfeit market (Kurt Salmon, 2016). Expansion into international markets is crucial for Michael Kors. However, the questions are how and where? Consultancy brief Hired as a marketing consultant, you have been asked by Michael Kors to carry out a thorough analysis of the market and recommend one international growth market for it to enter in 2018. The primary focus the recommended markets is choice of target market, entry mode and fitting international marketing mix. You should prepare a report for the board of directors addressing your consultancy brief, this should include: Task1: An analysis of the macro and micro factors impacting on the fashion industry (key focus on fashion produces). [LO2] Task 2: An analysis of Michael Kors' internal business factors using Porter's Value Chain framework. [LO1, LO2] Note: Task 1, 2 requires you to audit, research, and screening and situation analysis of:  Global macro  Global Micro – fashion industry  Michael Kars's internal business environment using Porters Value chain  SWOT Task 3: An evaluation of potential markets of China, India, Russia and Iran and recommend ONE target market, using 12 Cs frameworks of screening and justification. [LO1, LO2] Note: Task 3 requires you to undertake market attractiveness evaluation of the following potential markets, using 12Cs Framework and propose and recommend ONE of the following international markets: • China • India • Russia • Iran Task 4. Recommend a market entry strategy to take Michael Kors into the chosen international market with clear justifications for your choice. [LO1, LO3] Task 5: Recommend a minimum of three key areas of the marketing mix (7Ps) that should be adapted or standardised due to differences in socio-culture and consumer behaviour in selected target market. Justify your recommendations. [LO1, LO3] Detailed analysis should be developed and placed in the appendix of your report, with summaries of analysis in the main body of the report cross-referencing to the appendix. Additional information will be available on the portal to support your research but you will need to conduct your own research into macro and micro factors using the online library. Please see below for grading criteria. Marks will be distributed as indicated in the assessment criteria. To understand the requirements for each grade level please see below. Generic Criteria for Assessment at Level 6 (Bachelors Degree with Honours) Marks 0-25 (Fail) 26-39 (Fail) 40-49 (3rd) 50-59 (2.2) 60-69 (2.1) 70-85 (1st) 86-100 (1st) Assessment categories Knowledge & Understanding of Subject Major gaps in knowledge and understanding of material at this level. Substantial inaccuracies. Gaps in knowledge, with only superficial understanding. Some significant inaccuracies. Threshold level. Understanding of key aspects of field of study; coherent knowledge, at least in part informed by current research in the subject discipline. Systematic understanding of field(s) of study, as indicated by relevant QAA subject benchmark statements for the degree programme. Good understanding of the field(s) of study; coherent knowledge, in line with subject benchmark, at least in part informed by current research in the subject discipline. Excellent knowledge and understanding of the main concepts and key theories/ concepts of the discipline(s). Clear awareness of the limitations of the knowledge base. Highly detailed knowledge and understanding of the main theories/concepts of the discipline(s), and an awareness of the ambiguities and limitations of knowledge. Cognitive/ Intellectual Skills (e.g. analysis and synthesis; logic and argument; analytical reflection; organisation and communication of ideas and evidence) Unsubstantiated generalizations, made without use of any credible evidence. Lack of logic, leading to unsupportable/ missing conclusions. Lack of any attempt to analyse, synthesise or evaluate. Poor communication of ideas. Some evidence of analytical intellectual skills, but for the most part descriptive. Ideas/findings sometimes illogical and contradictory. Generalized statements made with scant evidence. Conclusions lack relevance. Threshold level. Evidence of some logical, analytical thinking and some attempts to synthesise, albeit with some weaknesses. Some evidence to support findings/ views, but evidence not consistently interpreted. Some relevant conclusions Evidence of some logical, analytical thinking and synthesis. Can analyse new and/or abstract data and situations without guidance. An emerging awareness of different stances and ability to use evidence to support the argument. Valid conclusions Sound, logical, analytical thinking; synthesis and evaluation. Ability to devise and sustain persuasive arguments, and to review the reliability, validity & significance of evidence. Ability to communicate ideas and evidence accurately and convincingly. Sound, convincing conclusions. Thoroughly logical work, supported by judiciously selected and evaluated evidence. High quality analysis, developed independently or through effective collaboration.. Ability to investigate contradictory information and identify reasons for contradictions. Strong conclusions. Exceptional work; judiciously selected and evaluated evidence. Very high quality analysis, developed independently or through effective collaboration. Ability to investigate contradictory information and identify reasons for contradictions. Highly persuasive conclusions. Use of Research- informed Literature (including referencing, appropriate academic conventions and academic honesty) Little evidence of reading. Views and findings unsupported and non-authoritative. Academic conventions largely ignored. Evidence of little reading and/or of reliance on inappropriate sources, and/or indiscriminate use of sources. Academic conventions used inconsistently. Threshold level. References to a range of relevant sources. Some omissions and minor errors. Academic conventions evident and largely consistent, with minor lapses. Knowledge, analysis and evaluation of a range of research- informed literature, including sources retrieved, analysed independently. Academic skills consistently applied. Knowledge, analysis and evaluation of a range of research- informed literature, including sources retrieved, analysed independently with accuracy and assurance. Good academic skills, consistently applied. Excellent knowledge of research informed literature embedded in the work. Consistent analysis and evaluation of sources. High-level academic skills consistently applied. Outstanding knowledge of research-informed literature embedded in the work. Consistent analysis and evaluation of sources. High-level academic skills consistently and professionally applied. LEVEL 6 cont… Graduate Skills for Life and Employment (e.g. research- related skills; written, graphical and oral communication skills; group working; problem-solving; practical and professional skills) Little or no evidence of the required skills in any of the graduate skills identified in the programme specification at this level. Limited evidence of the graduate skills identified in the programme specification. Significant weaknesses evident, which suggest that the candidate has not gained the skills necessary for graduate-level employment. Research skills: Can competently undertake reasonably straightforward research tasks with minimum guidance, but with minor weaknesses. Can communicate in a range of formats, including orally, at a standard appropriate for graduate-level employment, and with limited weaknesses. Can generally work effectively within a team, negotiating in a professional manner and managing conflict. Is largely confident and effective in identifying and defining complex problems and applying knowledge and methods to their solution. Able to recognise own strengths and weaknesses in relation to graduate employment, with minor areas of weakness. Research skills: Can competently undertake reasonably straightforward research tasks with minimum guidance Can communicate effectively in a range of formats, including orally, at a standard appropriate for graduate-level employment, and with limited weaknesses. Can consistently work effectively within a team, negotiating in a professional manner and managing conflict. Is confident and flexible in identifying and defining complex problems and applying knowledge and methods to their solution. Able to evaluate own strengths and weaknesses in relation to graduate employment. Research skills: Can successfully complete a range of research-like tasks, including evaluation, with very limited external guidance. Can communicate well, confidently and consistently in a range of formats, including orally, at a standard appropriate for graduate-level employment. Can consistently work very well within a team, leading & negotiating in a professional manner and managing conflict. Is confident and flexible in identifying and defining a range of complex problems and applying knowledge and methods to their solution. Able to take initiative in evaluating own strengths and weaknesses in relation to graduate- level professional and practical skills, and act autonomously to develop new areas of skills as necessary. Research skills: Can very successfully complete a range of research-like tasks, including evaluation, with a significant degree of autonomy. Can communicate professionally and confidently in a range of formats, at a high standard appropriate for graduate-level employment. Can work professionally within a team, showing leadership skills as appropriate, managing conflict and meeting obligations. Is professional and flexible in autonomously identifying and defining a range of complex problems and applying knowledge and methods to their solution. Able to show insight and autonomy in evaluating own strengths and weaknesses and developing professional and practical skills needed for graduate-level employment. Research skills: Exceptionally successful in a wide range of research-like tasks, including evaluation, with a high degree of autonomy Can communicate with an exceptionally high level of professionalism, in a range of formats, including orally, appropriate for graduate-level employment. Can work exceptionally well and professionally within a team, showing leadership skills as appropriate, managing conflict, and meeting all obligations. Is exceptionally professional and flexible in autonomously defining and solving a range of complex problems and applying knowledge and methods to their solution. Outstanding ability to evaluate own strengths and weaknesses, showing outstanding attributes for graduate-level employment. Marks for Level 6 0-25 (Fail) 26-39 (Fail) 40-49 (3rd) 50-59 (2.2) 60-69 (2.1) 70-85 (1st) 86-100 (1st)