This Unit 51 International Marketing Assignment Brief Focused current marketing senario of the world. 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.
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 It has stayed away from chains considered more low-end, such as JCPenney and Sears, though it does sell its outdated stock to discount chains T.J. Maxx and Marshalls.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: Understand the concept of international marketing for potential foreign markets.
Write a detailed memo to your International Marketing Director that explains the importance of adopting an International Marketing Approach (IMA) as a prelude for international development operations.
AC1.1 In your memo to the International Marketing Director, provide an explanation of why Hilfiger should develop 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).
AC1.3 Evaluate international marketing research techniques for Hilfiger new product launch of the new range of Men’s shirt.
AC1.4 Evaluate how Dubai as a foreign target market will be attractive for Hilfiger`s new product
Scenario 2 – 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: Understand how to make export channel 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.
2.1 Explain how channels evolve in distributing a new design T-Shirt to Dubai
2.2 Describe reliable export channels
2.3 Include an evaluation of the export distribution channels for T-Shirt
2.4 Analyse how foreign manufacturing and investment decisions are made; in your analysis make specific reference to Hilfiger manufacturing and investing in Dubai.
Task 3 – Marketing Plan for the Dubai Market
LO3: Be able to present a marketing plan for a foreign market
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.
3.1 Produce a set of international marketing objectives for the T-Shirt
3.2 Create and outline how you plan to enter into the Dubai market.
3.3 Identify and include the international marketing mix in planning for the Dubai market.
3.4 Review relevant ethical and environmental issues in international marketing within Dubai
LO4: Understand control methods for international marketing
4.1 Explain why international marketing planning 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.