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International Marketing Strategy Assignment Sample

1. Introduction

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Globalization and the advancement of digital communication technologies have unlocked the corridor of opportunities for businesses to add more colour to their rainbow by expanding their business in the intercontinental markets (Martinet al., 2021). With the influx of ample amount of opportunities and benefits, businesses are not limiting their opportunities just only operating in their regional markets, rather they are looking for innovative ways to expand their market in an overseas location. The tactics and methods of business diversification and expansion in countries around the globe are called international marketing strategies (Gnizy, 2019). Jo Harpur is an award-winning Jewelry Company situated in Dublin, Ireland.  This popular Jewelry Company is planning to expand their company in the land of Turkey.

The report will discuss in detail the multiple aspects related to the international marketing strategy required for the expansion of Jo Harpur Jewelry limited in Turkey. For understanding the nature of the Turkey market, the report will firstly imply the PESTLE Analyzing tool to understand the macro environment and will apply Mckinsey 7’s Model and Porter’s 5 Forces to identify the microenvironment of the Turkish Jewelry Market. Followed by this, the report will emphasize the opportunities lying in the Turkey Jewelry market. Further, the report will highlight the marketing objective and marketing strategy concerning the market expansion. The final part will conclude using 4P’s analyzing tool for identifying the right marketing tactic for Jo Harpur. Lastly, the report will provide an effective marketing action plan for the successful expansion of Jo Harpur in the Turkish market.

Jo Harpur Jewellery become Business All-Star Accredited

Fig 1: Logo of Jo Harpur Jewelry Limited

(Source: Jo Harpur. N.D)

2. Company Overview

The Irish popular Jewelry retail company, Jo Harpur Jewelry Limited has established four years ago on 15th March 2016 (Jo Harpur. N.D.). The company offers a collection of costume jewellery and watches uniquely designed by its owner Jo Harpur. These pieces of jewellery are mainly made with gold plating and sterling silver. The key reason behind the popularity and success of the Jo Harpur Jewelry Company is its affordable price and unique design. Jo Harpur Jewelry limited has 5 employees and the annual sales of the company were $143,000 in USD. The company has been named after the founder of the company, Jo Harpur. Her designed products are available in many Irish retail outlets and now the company also distributes their products all over the globe.

3. Situation Analysis

3.1 Macro Environment Analysis

Political Factors

Economic Factors

Turkey is a powerful democratic country that has its own secular and governmental parliamentary system. One of the best political strengths of Turkey is its liberalization policy. The Turkish government fully supports liberal trade and investment policies that allow other nations to easily operate a business within the country. The recent violent Terrorist attack caused by the Islamic extremist was one of the considerable challenges in Turkish political history but the Turkish political environment is relatively safe and relatively stable for expanding business (O?uzhan, N.D.). 

One of the biggest economic strengths of Turkey is its high flow of foreign investments invested by various foreign investors (Eraydin, 2020). These foreign investments are the significant key behind the massive expansion of the country's economy and the primary driving force for economic growth. The Turkish government has taken a crucial initiative for the development of highways, bridges and electricity grids and a commercial bank to enhance the business opportunity inside the country (Eraydin, 2020). The foreign-invested amounts will be used for native infrastructure development that will be another advantage for economic growth and business expansion.

The free-market and diversified economy of Turkey and the fastest growing economy will be an advantage for the Je Harpur Jewelry company. Along with this the promising growth opportunities, hard-working business community and size of GDP, 649.436 billion dollars, is an extra advantage for the Jewelry business (Berk and Biçen, 2017).

Social Factors

Technological Factors

Turkey has approximately 83 million populations inside the country and the country has been considered as the home of 1.08% total population of the globe (World meters, 2019).  The country possesses a young and well-educated population and the people are very creative and possess excellent workmanship. The country is very secular and the Turkish people firmly adhere to Islamic beliefs. That demonstrates the country has produced and high potential employees that will be beneficial for foreign businesses. Turkish people are considered to be the biggest consumer of precious metals all over the world. The citizens mainly use gold and gold plated items as protection during inflation and currency devaluation (Punroob, Kanthiya and Duangjai, 2020). Along with that Turkish people also gift gold jewellery in weeding ceremonies as the community has a deep cultural heritage underpinned by gold. 

Turkish technology is rapidly expanding, crossing the cities and reaching out to the rural areas. The government has made a maJor investment in the technology sector for the progress of technology and has aimed to make 80% population computer literate (Kaspin, 2021). Turkey is aiming to become one of the technologically advanced countries on the globe by the year 2023. Technology has become very crucial for every business to save cost and time. Regarding the jewellery industry is steadily adopting technological advancement. The Jewelry industry has been revolutionalised by technologically advanced technologies such as 3D printing, augmented reality, 3D printing etc (NALÇACIG?L and ÖZYILMAZ, 2020). The use of Laser technology is helping Jewelry companies in production, cutting and welding and also for decoration purposes. The technological achievements of Turkey will surely offer massive benefits for the Jo Harpur Jewelry company in gaining a competitive advantage.

Legal Factors

Environmental factors

The Turkish constitution or the Constitution of 1982 states the same treatment to both the national and the foreigners.  The judicial system of Turkey ensures impartial and independent rights to everyone. Turkish law is firmly against the discrimination of employees based on race, gender, religious beliefs, language and political views. All the companies in the country must adhere to the specified time of 45 hours of work in a week as per the law of Turkey (Dikta?and Tekin, 2018). Again all the employees are permitted to have an annual holiday and that employees who are working in a company for 1-5 years are allowed a minimum of 14 days of paid annual holiday. Apart from this, the Jo Harpur Jewelry company has to go through a lengthy registration process but the company will get the freedom to start and close its business.

The Jewelry industry must adhere to the social and ethical responsibilities of the country of operation for mining and selling the products to the people in the country. The country faces multiple challenges environmental challenges like high pollution levels, solid waste management etc. In this regard, there are multiple laws that Jo Harpur company has to adhere to for establishing a sound brand reputation. Such important environment laws are, A company must provide the information about the amount of storage and the wastes must be stored and should be collected separately under the environmental legislation. Apart from this, Soil Contamination Regulation, discharging air emission without permission and violation of environmental standard is also under the environmental legislation and has to be adhered to by Jo Harpur Jewelry company (Esenand Gumuscu, 2018).

3.2 Micro Environment Analysis 

3.2.1 The Internal Analysis by Mckinsey 7’s Model

Structure: The Jo Harpur Jewelry Company has a flatter organizational hierarchy. The company keeps high coordination between different departments and encourages the team to achieve their organizational objective.

Strategy: The key strategy of Jo Harpur is the company communicates with the employees and stakeholders for acknowledging their goals. Along with this the organization also addresses competitive pressure and creates strategic measures to ensure sustainability (Wanitkittikul, K., Pratoom, K. and Jhundra-indra, P., 2018).

Skill: All the employees of the company possess high skills and the company hires employees with high qualifications and merit. Also, the company maintains particular attention to the skill enhancement of the workforce.

System: Jo Harpur has well-demarcated systems and has a special system for aligning methods of the other departmental operations (Aasen et al., 2018).

Shared Values: The core value of Jo Harpur is to foster creativity and provide support to other employees to enhance their performance. 

Style: Jo Harpur Jewelry Company applies a participative leadership style that enables the employees to engage in the decision making  

Staff: The Irish Jewelry Company, Jo Harpur is a medium-sized company with 5 employees. The unique design of the organization is specially designed by its owner. But the company gives importance to giving to their employees to familiarize them with the company and the values of the company.

McKinsey 7-S Framework

Fig 2: Mckinsey 7’s Model

(Source: Gechkovaand Kaleeva, 2020)

3.2.2 Operational Environment by Porter’s 5 Forces

Bargaining Power of Buyers: The jewellery industry of Turkey is vibrant and unique. The growing Jewelry market has drawn multiple competitions in the fertile ground of Turkey (Akkoc and Civcir, 2019).  The demand for jewellery is among the highest as jewellery is regarded as a worthy investment for women. In terms of gold ownership, Turkey ranks second after India. With the abundant demands of ornaments and to suffice the demand, multiple options have been raised to the consumers. This has led to an increase in the bargaining power of consumers among Turkish citizens. In this case, the Jo Harpur Company will be able to offer their gold plated and silver plated jewellery to the Turkish people at an affordable price.

Turkey Gold Demand Historically Came From Jewelry

Fig 3: Gold Jewelry demand in turkey

(Source: U.S Global Investors (2012)

Bargaining power of suppliers: Turkey comes under the highest gold producer in Europe with 27 tons of gold production per year (Özen and Özen, 2018). Apart from this, Turkey also offers a wide range of natural stones and silver. This high supply of ornamental materials has offered less bargaining power to suppliers. Therefore, the Jo Harpur Company will get multiple options among the suppliers and can acquire ornamental materials at a reasonable rate that will provide the benefit of competitive advantage with a little assistance of innovation and creativity.

The threat of new Entrances: When a market has huge demand, businesses compete to grab the opportunity. The Turkish ornament market is tremendously demanding, many ornament company tries to enter in the fertile ground of ornament industry (NALÇACIG?Land ÖZYILMAZ, 2020). Therefore, to maintain a position, the Jo Harpur Jewelry Company has to offer their product with a unique presentation as the consumers look for along with psychological pricing. The brand should also have to focus on building a strong brand reputation for retaining a large number of consumers.

The Threat of Substitute Products: The products of Jo Harpur are uniquely designed and the company also use personalized design service with excellent craftsmanship. The Turkish people love jewellery and the unique product offer of Jo Harpur will attract the citizens. The company has to attract consumers with affordable prices and with multiple offers.

Industry rivalry: Due to the high demand for ornaments in the Turkish market, the industry is flooded with competitors. But in consideration of the ornament demand, the competition is not much important as the demand is steadily growing (Saçmac? and Saçmac?, 2017). The Jo Harpur Jewelry limited will certainly gain much importance because of their uniqueness in ornaments and their affordable price. 

4. Marketing Objectives

4.1 Rational for Objectives

The Irish Jewelry company Jo Harpur is an award-winning Jewelry retailing company that is popularly known among the people of Ireland. The products of the company are unique because of their excellent craftsmanship, luxurious packaging and most importantly their handcrafted product which was specially brought from Spain. The company is now aiming to expand in Turkish land. The company has certain aims and objectives behind their expansion in Turkey. The business is aspiring to acquire more retail outlets and expanding its global footprints. The founder is dedicated to her ultimate objective of turning this brand into a lifestyle brand for all women all over the globe (Jackson, 2019).

4.2 Justification 

For penetrating the Turkish market with an objective to become a global lifestyle brand, the company will opt for a Strategic Joint venture for achieving their respective goals. The strategic Joint venture is the most common form of Joint venture where an organization agrees with two companies to actively take a decision and to work collaboratively (Lee and Yoon, 2020). This strategy will be effective for the Irish Jewelry company as each business engaged in the agreement will have access to the resource without spending excessive capital (Uenoet al., 2019). In this case, the Jewelry Company, Jo Harpur will be able to maintain its identity and can avoid pricing pressure that will enhance the business credibility in the new market of Turkey.

5. Marketing Strategy

5.1 Portfolio Analysis 

5.1.1 The Attractiveness of Turkey 

Turkey is the world's 10th biggest exporter of jewels, with 4.7 per cent of the total value of the 2019 exports. In that year, Turkey exported $5.1 billion of jewellery. The nation has seen remarkable development in the jewellery business in recent years, according to Turkish export data (CONTUK, BURUCU and GÜNGÖR, 2013). However, the Turkish jewellery sector is looking gloomy in 2020. During the initial two months of 2020 Turkish export firms made a slightly improved jewellery business, supplying $871 billion in jewellery. In March, April and May the exports of Turkish jewels have dropped significantly owing to the pandemic of coronavirus when 268 USD of jewellery were transported out of Turkey. The epidemic of COVID-19 resulted in a severe drop in luxury jewellery expenditure in 2020 and a strong decrease in women's premium exquisite jewels (Natchimuthu, Raj and Angadi, 2017). Decreased market confidence in financial instability and the strain on discretionary revenue affected expenses inexpensive goods, while transportation limitations and lock-downs have also affected the sector, which resulted in reduced tourist expenses. 

Luxury jewels, in fact, was one of the first sectors in which the epidemic had impacted deeply. The export of Turkish jewellery in January 2020 was worth USD 391 million, which increased in February (Duygun and ?en, 2020). March, April and May months registered a severe drop in profits of jewelry international trades due to coronavirus shutdown. The nation exported USD 3 million in April 2020, the last dollar in the first four months, according to Turkish export data.   The Turkish Jewelry business is its best-performing export economy according to the Jewelry Exporters' Association (JTR). Turkey has recorded an increase in export shipments during the previous five years. 

Year

Value USD Million

2015

3,756

2016

3,760

2017

4,134

2018

4,412

2019

5,102

In 2015 and 2016, exports of Turkish jewellery were above $3,000 million. In the past three years, this currency has grown significantly, with about USD 4,000 million in the number (Grynberg, Kaulihowa and Singogo, 2018). Turkey’s exportation of jewels reportedly reached 5,000 USD in 2019. In February, Turkey sold over 11,7 million tons of gold, as the global financial situation hit Turkey’s economy, recent statistics showed. 

Figure 4: Turkey Jewelry Exports

(Source: Kantur and Özcan, 2021)

5.1.2 Competitive Strength

Turkey has a range of opportunities when it comes to its jewellery market and its future possibilities are quite high if considered by reviewing the published reports on the market statistics (Kantur and Özcan, 2021). The basic foundation of the jewellery market is strong as the gold sector has seen consistent prosperity during the last five years which has enabled its jewellery market to be more confident and stable (Ek?io?lu and Tolunay, n.d). Considering the high standards of gold exportation, it can be said that the demand and rise of jewellery are on a higher level in the nation. 

  1. Firstly, the Turkish jewellery market is flourished with high demand among the customers which is a great strength and attracts businesses to invest in the country (Duygun and ?en, 2020). 

  2. Other than that, the country has allowing policies that encourage international companies to invest in the jewellery retail market and expand businesses (Depren, Kartal and Depren, 2021). 

  3. Craftsmanship is another important element that can be considered to be a strengthening factor for international companies to expand in this market (Natchimuthu, Raj and Angadi, 2017). It helps the jewellery companies to make more gold-plated jewellery with an intricate design which develops the market demand for these jewellery items. Also, the craftsmen in the jewellery sector are focusing on the modernization of the designs so it is anticipated that the demands will increase among the customers positively. 

5.1.3 Strategic Market Entry Method 

Joint Venture 

A Joint Venture (JV) is an enterprise agreement in which companies decide to pool their money and other significant resources in order to execute an expansion plan of a venture. This endeavour may be a new initiative or a business (Killing, 2017). Each member is involved in a Joint venture (JV) for the related benefits, losses and expenditures. The company is nonetheless a separate legal entity from the additional business interests of the partners. Joint companies can adopt any legislative framework; however, they are in a colloquial collaboration. The pattern of a JV is open to businesses, collaborations, limited liability companies (LLCs) and others. Joint ventures can unite smaller and bigger businesses into one or more large or small initiatives and transactions. 

In order to ensure the achievement, a Joint venture might leverage both firms’ available assets (Killing, 2017). One business might have an established production procedure, whereas the other company could have stronger distribution networks. By applying economies of scale, the JV may push its output to a lower cost per unit than independently. There might be distinct backgrounds, talents and experiences for two firms or parties creating a Joint venture. Combined with a JV, each firm may profit from the other's knowledge and skills. 

For Jo Harpur jewellery, it can be a profitable approach that will lead to the company to better hold the Turkish jewellery retail market. Through a Joint venture approach, the company can make sure that its resources are properly used in the foreign market to reach its ultimate business goal (Depren, Kartal and Depren, 2021). A Joint venture will be a significant business strategy for the brand which will allow the company to establish a strong tie with other business entities and use the resources collaboratively to increase the market potential of the jewellery. It will allow Jo Harpur jewellery to build an intense market position. 

6. Marketing tactics 

6.1 7P Analysis

Product

Products are the basic elements that make a brand attractive to its customers (Yuliantine, Indasah and Siyoto, 2018). The idea is to make the products attractive and value worthy so that the market reputation and customer preference remain constant. Jo Harpur jewellery should maintain its design quality and focus on the Turkish designs of modern jewellery to assure that the customers get the value and design they prefer. 

Price

The price range needs to be maintained properly so that the market existence can be increased with a positive profitability graph. When it comes to gold plated jewellery, it becomes important to grab the exact value that a customer is able to spend. The market competition is high in the Turkish market where people love to do valuable and also metal-plated jewels (Natchimuthu, Raj and Angadi, 2017). The options for the customers are high so the company will have to ascertain such a price range that will attract more customers. 

Place

Other than the retail distribution of the jewellery, the company can opt for online platforms which can be through websites and other social media platforms. It will enhance the brand viability and ensure enhanced sales as people often prefer online jewellery shopping which can be a beneficial option for the brand. 

Promotion

For a jewellery brand, it becomes extremely prominent and significant to be visible to its target customers (Depren, Kartal and Depren, 2021). Especially in a market like Turkey where the demand for exquisite jewellery is high, promotion becomes a solo option that can distinguishably present a brand. Social media platforms and collaborations with social media influencers are some of the choices which might benefit the brand to expand its business. 

7. Marketing Action Plan

Action Step

Involved people

Resources

Barriers

Time 

Market research 

Marketing team, company HR team, R&D unit 

Money, time and human resource and electric devices 

During the Covid-19, movements are partially restricted which might be a significant barrier for the company to lead the market research

3- 6 months 

Searching for companies to collaborate with 

The market research team, company hierarchy, resource management team and legal advisors

Money, human resources, time and technological devices 

The economic downturn and uncertain recessions

4-5 months 

Recruitment 

HR team, company hierarchy 

Expert human resources, money and time

A pandemic can be a prolonged barrier to the recruitment process

2-3 months 

8. Conclusion

A set of attributes might be obtained from the accomplishment of the report which has aimed to provide a profound and accurate analysis through explicit interpretation. Several issues surfaced, after studying the fundamental aspects of company methods and elements that are based on the notion of business development. In the frame of reference to the Jo Harpur jewellery which will expand its business on the Turkish market, variables were rationalized. The entire paper focuses on a number of significant ideas related to market analysis and company strategy comprehension. The present report has been established to understand the market basics and how a company can expand in the international market through proper strategic approaches. A range of strategic elements has been rationalized to understand how the company can utilize some methods to conveniently establish a stable business in a foreign market with enhanced competitive advantages.

 

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Appendices 

Jo Harpur Jewellery become Business All-Star Accredited

McKinsey 7-S Framework

 

Turkey Gold Demand Historically Came From Jewelry

 

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