INTERNATIONAL MARKETING

INTERNATIONAL MARKETING 1

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Introduction
Trend of globalization is increasing stronger every year. The globe is experiencing lower barriers
in trade of capital and goods. In today’s time customers also has an easy access for buying
products from entire globe. Organizations also have many opportunities to enter in the new
global market with more options. New market expansion also proves the many potential to
present opportunities for growth of market, increasing the base of customers according to the
sales and demand. This can also be a critical and tricky procedure because of the competitive and
social situations. Customer’s tastes and preferences, legal regulations and rules are also different
compare to domestic level of business.

The British health and beauty retailer boots are loved and famous at home that was formed liked
Alliance Boots, because of the merging with Alliance UniChem in 2006. It has decided to
enlarge and establish business in the market of South Korean. The chain of pharmacy and beauty
with Walgreens made a franchise partnership with Emart company ltd ((Walgreens Boots
Alliance, 2016). This is known as a leading retailer of hypermarket in South Korea that produces
Boots branded pharmacy-led, beauty and health franchise.

In today’s time South Korea is known as a leading market for cosmetic and skin care products in
Asia. It was the organization bases to create the choice by introduce the South Korean customers
towards the brand of boots and offer the organization services and products (Omella Barra,
2016). This organization selects specific market carefully by consider factors like organization
economic potential, status, barriers of entry, and intensity at competitive level.

To enter in to a new marketplace, an effective and detailed screening of new marketplace is very
essential, assembling and testing to all available data on the marketplace, followed through the
best decision for enter. There should be four essential queries must be enclosed for a market
research at successful level: Who is customer? Where is customer? How does customers
purchase? What does do? (Tracy, 2014). The large amount of internal and external factors must
be taken in an account for success and maintain a competitive level.

By targeting a market at foreign level, it is important to avoid an approach from dimensions of

domestic level. Focus at internal level is essential in place of concentrating on the marketing mix
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at basic level (Tracy, 2014). This is important to understand the customers, new competitors that
will determine the organization success in new market (Tracy, 2014).

This is important to collect right and important information to make the correct decision and
distribute the resources in correct way that is a very significant step for the organization.
Valuable info for exporting organizations is directly related with the potential new market. It is
followed by factors like legal, infrastructure, politics, cultural, and economics. To conduct the
analysis of external environment, this would be suitable to refer to commonly utilized tool and
evaluate five key drivers in selected market recognize as a SLEPT. It is important to take into the
consideration cultural framework at depth. It is also significant to be aware about the local
culture and many factors that influence business. This also helps to prepare strategies of market
that support these factors by compliment.

South Korea is known as a global beauty market leader. Boots organization likes to enter this
market by a plan to developed the name of brand in this marketplace and encounter the
competition. Organization had chosen or can choses a different market to enter.

Globalization is increasing around the globe; many markets are not effectively discovered by
foreign players, for example in Denmark health and beauty retail. As per the Euromonitor global
survey, in Denmark personal and beauty care produced higher value of retail growth in 2018
(Denmark Trade and Export guide, 2019), by a normal growth in demand for premium and value
added products. This nation has a wealthy base of customers by disposable income at higher
level and also spending at higher level.

It screening, assembling, and testing all are available in depth like research of market, analysis of
market, environment, in addition to competition and demand analysis, the organization require to
look carefully at the entire popularity of products of health and beauty by measure intensity of
competition as how they are attractive and profitable for the selected market. Analytical tool
known as a SLEPT will be used to scan external environment of the selected nation followed by
applying the Porters five force analysis in the organization’s competitive environment, buyers
bargaining power and distinguish selected market’s strength and weakness. This discussion will
cover the Boots internationalizing and entering in the beauty and health sector of South Korea.
This will also cover the offering of new market with the opportunities and threats for the
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organization. Denmark health and beauty sector of retail will looked and analyzed to reveal
potential opportunities of market an threats, if organization were to select this specific market to
enter in future.

Analysis: South Korea

There are many questions raises by taking a decision to enter in the new international
marketplace by many concerns that how organization services and products will be receive by
the new customers. SLEPT analysis will be useful to discover and quantify and look to the
social, economic, legal, economic and political environment of new targeted market. This is
important to look these factors for chosen market known as a South Korea, this rapidly become
the very clear the environment, education, welfare at social level, culture, and arts are the main
influential part for social enterprises of South Korea. This is highly regarded nation that comes
towards sustained development and sustained growth. This has economy accounts at 2 percent of
global economy by intersecting to income level of Japanese. Economy runs a present account
surplus and debt of South Korea is very low that is less than forty percent of GDP.

Modern culture is deeply in modernization pursuit and Koreans are pretty serious about its rituals
of beauty and skincare (CosmoBeautySeoul, 2019). This has generate interest for many
international beauty brand to enter in the South Korea market and become a part of success by
making and presenting own products of beauty that are easily reachable to the customers of
South Korea. As per the Mintel, retail researcher the beauty industry of South Korea was
estimate to be valued over $13bn (£10bn) in 2017.

The economy of South Korea grew by 3.1 percent yearly in 2018 in the year last three months.
The people is highly Tech-savvy and informed. The customers of Korea are tending towards
difficult online research products by use of social media. The customers of beauty industry look
heavily into ingredients of products and entire quality. The Korean customer at average is like to
pay prices at premium level for the products that deem of high worth and desire to have.

The key trends in the market of South Korea are increasing preference to natural and organic
cosmetics. The customers are increasing and conscious about the product ingredients as like to
buy and prefer the use of organic and natural ingredients (CosmoBeautySeoul, 2019). The
Ingredients includes organic/natural, stem cells, peptides, and probiotics are in the focus and
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attention in these days. The customers of Korea are also interested at higher level in the
procedure of manufacturing of these products. One of the survey conducted by the Phillips in
which he described that South Korean women were expecting to look more about the use of
natural and organic ingredients and lesser chemicals in products of beauty. There are many hot
new trends like anti-oxidants, anti-population, and anti-aging technology. This clearly present
and indicates that beauty market of South Korea and customers is immensely demanding.

From the point of technology, it is essential to note that the nation has the best IT infrastructure
at world level by wide use of internet with high-speed and smartphones. There are many
researches done by customers before buying a product as it is completed by use of social media
to find information of the desired amenities and products. Organizations also take into the
serious consideration about the reviews of customers. In 2012 a survey taken by the Embrain, it
is founded that trend monitor and discovered that 79 percent of customers check reviews of users
before making a purchase. This survey also discovered that 74 percent users written by the
evaluation of products and services reviews. The use of substantial technology helps the
customer to judge the possibility of the product value and find the best price for the best product.
Channels of E-commerce have become effectively popular for customers to buy cosmetic
products. Channels of distribution are changing to provide accommodation and focus towards the
experience of customer. The customers of South Korea demands are segmented and many
channels like shop and multi shop have become more common and widespread. In December
2016, for accommodation group of Shinsegae has launched a boutique by offering a huge
selection of many luxury and affordable brands of beauty by accommodating its wide range of
customers.

Opportunities and threats are offered by this market to the organizations that desires to enter in it
that are planning to survive grow, and develop. Opportunities to take into the consideration are
disposable income at higher level and changing trends of beauty and westernization. As per the
report of National Tax service (Trading economics, 2019), in 2016, the average income yearly in
Seoul was 3, 78, 10,000won, that comes to the 31, 50,000won every month (about £2, 154, 49
GBP). The South Korea is known as the 8th largest market of cosmetic by representing 3 percent
at worldwide level. There are many variety of the products within the market, the imports at
competitive level differentiate nation from existing offerings by identity of brand, exclusive
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formulations, packaging, and ingredients. International brands have a good status for its
technological advanced formulation of product and safety of products. The spending of
customers of South Korea has increased to 221900.10 KRW billing in the 2019 second quarter
from 220417.20 KRW billion in the 2019 first quarter. The South Korea literacy rate is 98
percent that present customers are educated and informed. By looking in the market research it is
important to consider and look closer towards the competitors of beauty market. This market
covers a large number of regional and global presences like Amorepacific Corporation (holds a
prominent share of market), Face Shop Inc., nature republic, Clubclio.Co.Ltd and Dr. Jart+,
offering a high competition, and massive chains like Aritaum that is known as a one-stop, multi-
brand beauty shop and Olive Young also a one-stop-shop that it comes to all things beauty. The
number one beauty and health outlet in the nation is Olive Young.

This model presents the market concentration. South Korea is the first in picture. This is
important to note that economy of South Korea is open for market of foreign trade. Model of
economy of South Korea is not build on principles of free market as give pricing freedom for
imported amenities and products as set through the forced of demand and supply. This is a
protectionist market that protects domestic industries through quotas of import, enforcing of
tariffs, other restrictions, and subsidies towards the imports of competitors at foreign level and
creating barriers of trade. This nation has also initiated many efforts to increase openness by
agreements of free trade that consist United States and EU. The nation integration in the global
economy is quite low towards import penetration. In July 2019, South Korea imports decreased
by the 2.7 percent in a year earlier to USD 43.70.

Organizations that export to Republic of Korea required specific documents of shipping for
clearing the Korean customs. The commercial invoice includes original invoice. There should be
two copies presented by the shipping of documents and must consists unit value, entire value,
marks, quantity, description of product, information of shipping and certificate of origin.

Brand of boots are presenting business visually, this is clear that entire visual boots outlet are
preserved to original state. The specific feature of brand is quite prominent that offer special
deals in outlet like (3 for 2 offers) consisting Boots specifically No 7 brand that clearly present.
There are adaptions at partial level like the store lay-out some presentation of brands/products
and selection of product.
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Brand of boots is presenting it visually, this is very clear that the entire aesthetic of the store of
boots is well-kept to original state, key feature of the organization is quite prominent that offer
store deals like (3 for 2 offers), consisting Boots’ specific No 7 brand evidently present. Partial
adoption like store lay-out, product/brand presentation and product selection as well. In the
biggest store in Seoul’s area of shopping Myengdong, it has comprised a café at top floor, which
is feature one can’t find in the UK. Having a Coffee shop within outlet is an adaption to cater the
booming Korean coffee shop market, as a coffee and café culture in South Korea is prominent
and boots has made the excellent choice of fully catering to Korean customer.

In Seoul one of the stores of Boots was noticeable as local celebrities used to promote some
products that sold in store. It has a strong effect on the entire market and products promotion as

local customer’s at large number influenced by influencers and celebrities. The entire effort of
Boots organization has placed into fitting a catering and local market.