International Marketing Rafique Singh Hunjan 126534  Executive Summary Naracamicieis a leading Italian fashion brand which focuses on offering designer shirts to the customers. It has limited presence in other markets; therefore, the international market of India is explored. It has stable political environment with growing economy. The purchasing power of the customers is high; however, they are price sensitive. The technical infrastructure of the country is not well developed; however, the customers are attracted towards thee leading brands, therefore, it is a promising market for the organization. It is proposed that the company will enter the market with the strategy of joint venture to increase the knowledge of the local market and share the risk. A unique marketing mix has been proposed for the organization to enter into the new market.   Introduction Naracamicie is a famous Italian brand which specializes in selling designer and classy shirts. The company began its journey in 1984 when Walter Annaratone, a retail entrepreneur decided to launch a franchising brand to sell shirts. The brand focuses on creating high quality product with precious image which can create niche market in the Italian and the international marketplace. When Walter Annaratone, a Milanese entrepreneur realized that there is a market in Italy for quality products with a sophisticated image. There are two entrepreneurs, Mario Pellegrino and EnzoPellettieru who collaborated with Annaratone to establish the product line. The first store was inaugurated over 30 years in Milan and still a reference for the sales network and brand image of the organization. In the recent years, the brand steadily grew its popularity and established a brand image for the organization. At present, the company has over 380 stores in different locations all across the globe (Naracamicie, 2017). The company has established a distinguished image for sophisticated and qualitative shirts. However, it has presence in limited countries. The company needs to enter foreign markets to grow its business. In this regard, the business in the market of India is analyzed for the market expansion of the company. India is a promising economy and with various political platforms,it has become an attractive market for the economies. Situational Analysis of the new International Market Naracamicie is a distinguished brand which specializes in offering sophisticated and delicate shirts to its customers. As the company needs to explore new markets, the market of India is investigated for its future expansion. In this regard, the following section conducts the situational analysis of the target market. Political Factors: There are several political factors which can impact on the fashion and clothing industry. It includes workers’ rights and child labor laws. The labor laws can impact on the production of the clothing companies. The taxation and the foreign investment laws will also impact on the operations of the organization (Zou and Fu, 2011). The political environment of the country is stable and a number of reforms have been made in the legislations of the country to attract foreign trade. The country also has stringent law for the protection of Intellectual property and copyright in the fashion industry (Nair, 2003). Economic Factors: The current size of the Indian textile market is about US$108 billion which is expected to reach US$ 223 billion by 2021. The Indian textile industry has a large market size and has the potential of becoming US$500 billion industry (IBEF, 2017). The Indian economy is observing high growth. However, the recent demonetization has reduced the liquidity in the market and increased the value of Indian currency in respect to US dollar (First Post, 2016). Social Factors: India is a fast growing country with young population with the median age of twenty five tears. With the growth of the Indian economy and the growing middle class, a new range of customers is developed which are inclined towards the branded and the quality products (Mühlbacher, Leihs and Dahringer, 2006). The rate of working women has also grown in the country which has increased the spending power of the customers creates opportunities for the retailers in the country (Chakrapani, 2015). Although, a large number of luxury brands have entered in the country, it is a price sensitive market. Moreover, the young population of the country is commonly using social media and following the fashion and style of the celebrities. The customers are also using e-commerce websites to shop online (Rajput and Khanna, 2014; Paul, 2016). Technological Factors: The technological infrastructure of the country is still growing. The biggest challenge for the foreign companies in trading in India is the lack of technological infrastructure. The progress in the Indian infrastructure is remarkably slow in India. The communication infrastructure and telecommunication network is behind other developed countries (Saluja, 2014; Satpathy, 2013). Legal Factors: There are certain laws related to labor rights, protection of intellectual property of designers and environmental protection which are applicable on the fashion industry. Environmental Factors: The Indian environmental legislations are stringent; however, poorly enforced. There are no specific laws for the textile and the fashion industry relating to the environmental protection; however, there are specific industry standards which the textile and the fashion industry needs to comply while setting up a plant here (Fibre 2 Fashion, 2017). Analysis of the Market entry Modes and Recommended mode of Strategy While planning to enter into a foreign market, the company needs to determine the foreign market entry mode. The foreign market entry mode can be categorized into two main types, namely, equity and non-equity modes. There are a large number of foreign market entry modes which differ according to the degree of risk, control, requirement of resources and return on investment (Doole and Lowe, 2008). The exporting is the simplest form to foreign market entry, wherein the company capitalizes on the economy of scale by manufacturing product at one location and distributing it to other countries. Licensing, Franchising and joint ventures are other modes of foreign entry. In licensing, the companies allow other firms to manufacture the proprietor’s product and use its brand name for a specific period of time. The licensor provides limited rights and resources to the licensee which includes patents, trademarks, technology and managerial skills (Elsner, 2013). In exchange of it, the licensor takes royalty payments, technical fees or one time payments. The intellectual property rights of the host country also play a critical role in contract development and the contracts are usually for a fixed period of time (Saric, 2014). Franchising is another international market entry mode in which the franchisees pay a specific fee to the franchisor in return for the rights to use the trademark, products, business format and the system. In joint venture, the companies create strategic associations with the local forms of the company (Paul, 2008). The joint ventures are beneficial as it results in risk sharing, technology sharing and conformity of the government regulations. In joint venture, the companies can obtain the local market knowledge and partners can use the resources of other foreign companies. In the present case, the company manufactures sophisticated and designer shirts. The core competency of the company is its intellectual property and designs; therefore, establishing a joint venture will be most suitable for the organization. It will not compromise the intellectual property rights of the organization as well as it will support the organization in gaining the local market knowledge. Application of Effective Marketing Mix Strategies In order to enter the Indian market, the company needs to develop marketing mix strategies. The marketing mix is defined as the value which is extended to the customers. Product The company specializes in selling designer shirts for both men and women. Recently, in India there is a growing trend of wearing formal and informal shirts in office settings. The company needs to promote unique product line to the Indian customers. It should adapt its product line according to the taste of the Indian customers. Moreover, the organization should also respond quickly to the changing needs of and trends in the fashion industry. Being a foreign brand, the company can expand its product range by including trousers, belts and other dresses. Price It is considered a luxurious and sophisticated brand in its home country and foreign markets. The company should try to establish similar image in Indian market. Naracamicie can use the premium pricing strategy to target the affluent customers and the upper middle class (Scholz and Zentes, 2007). Place Since the company is targeting the affluent customers and using the premium pricing strategy, the company needs to set up its stores with similar strategy. The outlets of the company should be opened at places which provide relaxing environment to the customers. The services provides by the sales professionals in the store should be excellent to compete with other luxury brands in the industry (Pride, Hughes and Kapoor, 2009). The décor of the outlets should be visually appealing and the displays at the windows should be provocative which attracts the customers. Promotion In order to create a special and unique identity in the foreign market, the company should adopt marketing strategies which are innovative and aligns with the business goals of the organization. It should focus on displaying vibrant and exclusive image in the mind of the customers. The company can participate in fashion shows to increase brand awareness. Along with it, the company can use broadcast media such as television and internet in its promotional activities. As the company is a luxury brand, it can also adopt the strategy of celebrity endorsement to attract the customers. The company should also focus on using word of mouth marketing strategy for the promotion. In order to increase word of mouth, the company should focus on providing excellent services and products to its customers (Baker and Hart, 2016). Implementation of Strategies in the New Marketplace The marketing strategy implementation requires a tactical plan and business growth strategies. In the implementation of the marketing plan, the company requires clear objectives regarding the goals of the marketing campaign, timeline and evaluation of the impact of the marketing campaign. SMART Objectives In this regard, the goals of the marketing campaign are: ⦁ Create a market share of 5% in the first six months of marketing plan in the Indian market ⦁ Increase the repeat sales and customer loyalty to 20% with the marketing campaign in the first six months ⦁ The company aims to drive the sales by 30% in the first three months after roping in celebrity for celebrity endorsement Timeline The timeline for the marketing campaign is determined as one year. In the initial months, the company will utilize the strategy of broadcast media promotion. In this stage, the new outlets of the company will be promoted through newspapers and the local television channels. The company will use the celebrity endorsement after three months of market entry in Indian markets. It will also use social media marketing strategy to promote the brand in the country. The social media is popular among the young generation; therefore, it can be easily used by the business organizations to promote the organization in the target market (Weinreich, 2010). Strategy Timeline Broadcast media (Television and Newspaper) Throughout one year Celebrity Endorsement After three months Social Media Throughout the year Evaluation of the Marketing Campaign The marketing campaign of the company can be examined by conducting surveys with the potential customers. The survey should be conducted with the target customers which are the affluent class in India. The survey can be targeted on digital mediums or at the outlets of the organization. The survey questions will try to analyze the perception of the brand on the mind of customers (Hastings,Angus and Bryant, 2011). Conclusion Naracamicie is a leading Italian fashion brand which deals with fashion designer and sophisticated shirts. The company has limited presence in the international markets. In this regard, the market of India is explored for the future expansion of the company. India is a promising economy and the people are inclined towards leading brands. Therefore, it is selected as a prospective foreign market for the organization. The joint market entry is selected for the organization. In the marketing mix, the affluent class is targeted with the premium pricing strategy of the organization. The marketing campaign objectives have been created and then success of the marketing campaign can be analyzed by conducting a survey.  References Baker, M.J. and Hart, S. (2016). 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