Global Marketing Conceps Applied To David Jones †Free Samples

Question: Discuss about the Global Marketing Conceps Applied To David Jones. Answer: Introduction The first store of David Jones was opened in Sydney in the year 1838 by David Jones who was a Welsh merchant. Mission of David Jones was to sell the best and most exclusive goods. Since the inception of the first store in Australia, David Jones have grown to thirty five stores and two warehouse outlets .David Jones also provides its customers with an Online outlet named David Jones online which offers customers the finest brands across beauty, fashion and home. The company manufactures hand bags, accessories, gifts, home and food products and in this report theinternational marketing requirement of David Jones is discussed. Discussion International marketing is the application ofmarketing principles when a company decides to start its operation outside its home country in a different country. David Jones is based in Australia but in order to survive in this competitive world and in order to sustain globalization and change in technology, the company should expand globally. Drivers of International Marketing Market Needs The sense of fashion has become uniform worldwide and people are influence by global fashion -trends that are dominating the world. David Jones has its stores primarily in Australia and New Zealand. But the company should expand globally. Expansion of its operation worldwide will help David Jones in many ways 1) David Jones will gain a huge customer base by leveraging its operation worldwide which will make the company more profitable. 2) Competitive forces-David Jones faces competition from Myer Holdings, Harvey Norman Holdings limited. In order to beat the competition from the local market, David Jones should try to expand its operation worldwide(Skarmeas, Zeriti, Baltas, 2016). Technology Technology has evolved and the world has become a global village .Evolution of the internet and the World Wide Web has open ample of opportunities for business. David Jones can leverage this technological advancement in expanding internationally. Products of the store are already available in David Jones Online. The company can tie-up with major online retailers like Amazon, Alibaba and thus people across the globe will have access to the products of David Jones. Also David Jones should make use of technology like Market Intelligence ,Data Marketing and digital marketing to study consumer behavior worldwide and promote its brand globally .The brand can be promoted using social media platforms like Facebook, Twitter etc (Dunning, 2013) Cost Scale David Jones can gain cost advantage by building a robust supply chain network and can source its products from India, China and South Africa. Labour is expensive in Australia and sourcing products from developing countries will enable David Jones to lower its manufacturing costs. Also it is not necessary to set up a separate manufacturing unit in developing countries. David Jones can sell products outsourced from developing countries under its own brand name (Czinkota Ronkainen, 2013). Government Before beginning its operation in a foreign country, David Jones should study the political background, tax systems, rules of excise duties on imports and exports, governments encouragement of Foreign Direct Investment, other economic factors like inflation or purchasing power of consumers in the foreign country which will help David Jones to set up its pricing strategy. David Jones should engage in corporate social responsibility and address environmental issues in the foreign country to set a good image in the mind of customers and government of foreign country. It is mandatory for a company to follow safe corporate governance and ethical standards related to laws and regulations in a foreign market. Communication Communication plays a major role in international marketing. Culture of Australia is open and liberal but culture of Middle East and Asian Countries are conservative and thus communicating style varies widely worldwide. David Jones should study the culture, subculture, language barriers, values, attitudes and lifestyle of people of the international market and implement the same on its advertising techniques, promotional events and other medium of communication. The advertising regulating authorities of conservative countries may consider certain form of advertising as vulgar and David Jones must make its communication style conservative in those countries (Akaka, Vargo, Lusch, 2013 ). Conclusion It is important for David Jones to analyze whether it will follow ethnocentric, geocentric, region-centric or polycentric approach while expanding globally. In order to sustain its global operation, David Jones should hire employees from the foreign country where it would plan to operate and pricing strategy should be according to the purchasing power of that country. Also, David Jones should analyze how it would operate in the foreign country,whether it would set up a retail store or just sell its products online via major online retail giants of the foreign country. References Akaka, M. A., Vargo, S. L., Lusch, R. F. (2013 ). The complexity of context: A service ecosystems approach for international marketing. Journal of Marketing Research , 21(4), 1-20. Czinkota, M. R., Ronkainen, I. A. (2013). International marketing. Cengage Learning. Dunning, J. H. (2013). Multinationals, Technology Competitiveness. (RLE International Business) (Vol. 13). Routledge. Skarmeas, D., Zeriti, A., Baltas, G. (2016). Relationship value: Drivers and outcomes in international marketing channels. . Journal of International Marketing , 24(1), 22-40.