Internatinal Marketing Strategy Assignment Example | Topics and Well Written Essays - 2750 words

Internatinal Marketing Strategy - Assignment Example Mulberry was established in 1971 specifically to provide fashionable items that would create a formula for its success in the market (Reuters, 2012). Mulberry is a fashionable and luxury brand that people aspire to own. Mulberry is recognized for its wide variety of women leather bags which includes shoulder bags, satchels, totes, clutches, briefcases etc. Due to its classic design and wide variety, it is seen on world’s famous celebrities and models’ arm such as Daisy Lowe, Rosie Huntington-Whiteley and Claudia Schiffer. The company not only provides readymade handbags but also gives its customers a chance to design their own handbags according to their requirements making the English luxury easily accessible. The brand is just not limited for women but also provides handbags and other accessories for men. The collection for men is also eye-catching due to which it is purchased frequently by men. The men’s accessories include wallets, cufflinks, bags, gloves, sc arves and belts (Mulberry, 2012). The company core values remains indistinguishable even after 4 decades which is the main reason for the company’s success. ... Despite the recessionary period the company remains focused on the long-term success and growth (Wood, 2010a). Even after the economic situation the performance of the company was extra-ordinary in 2010 as more than ?40m worth Mulberry’s brand were sold in Britain alone (Wood, 2010b). Global expansion was company’s key success and provided the company with positive news. The international revenues boosted to 61 percent providing high growth opportunities for the company. With the economy in disastrous situation it was important for the company to look for internationalization rather to face economic downturn due to which the sales were expected to fall. The major reason for Mulberry’s internationalization was based on the sharp decline in 2008 for the first time after 2003 which affected the domestic demand for handbags in US and Europe (PRWeb, 2012). The rising demand for international high quality leather handbags in other regions of the world was another reaso n for expanding the business into other geographic regions (Business Wire, 2010). Due to such conditions the best way to hedge against risk was to set foot in such market that was growing influx of foreign brand. One such country includes India where the handbag market is estimated at Rs. 20 billion and projected to grow at an increasing rate of 15 percent annually (Technopak Advisors, 2011). The market for luxury product all over the globe is increasing at a surprising rate and Asia is being targeted as the main market for such products after Europe; due to which India would be the best country to cater (Image 1 and 2). Another advantage to expand in this Asian country will be its low cost in terms of labour and raw material. Figure 1: Worldwide Luxury Goods Market