INTERNATIONAL & STRATEGIC MARKETING 2

INTERNATIONAL & STRATEGIC MARKETING

NOWSHAD MOURIN SHAWON L0044SZSZ1010

BA5 LONDON

SCHOOL OF COMMERCE

NOWSHAD MOURIN SHAWON L0044SZSZ1010 1

Abstract:

In this report, I have discussed about expansion of international market for Lovefilm and planning. I have divided the plan by continents. Lovefilm required difference marketing strategies for different continents. In America, Europe and Australia already have some strong competitors. In these Continents Lovefilm should focus on new customer services procedure and new offers. On the other hand, In Asia and Africa, Lovefilm should introduce the services and way of business to the people rather than customer services and offers. In this report, under every continent, I added some strategies that can be taken as recommendation.


Content:

Queue Description Page No.

1 Introduction 42 International market 43 North America 44 South America 65 European Market 66 Asian Market 87 African Market 98 Australian market 109 Conclusion 11

10 References 12


Introduction:

Lovefilm is an UK based DVD rental service provider. It is an amazon’s subsidiary, doing business in UK, Germany, Norway and Sweden. This is an internet based business. Kurtz, D.(2012, p.103) states that – ‘Some survey suggest that, internet is number one medium for new product’. Lovefilm is in good position to expand its business globally, just need appropriate marketing strategies for specific area.

International Market: We can differentiate international market by continents. The market condition can be difference by the continents. For example African market for Lovefilm cannot be same as American market. So Lovefilm needs to take different marketing strategies for different continents. The strategies depend on particular countries business policy. Travis, T.(2007) States that ‘‘Many governments seek special advantages with selected countries through bilateral and multilateral trade agreements and preference programs’’. In this report, I tried to find obstructs and opportunities to entry in every continents.

North America : Lovefilm needs to be very crucial and smart to make strategies to enter in North American market. Netflix, Blockbuster, Wall-mart and Hollywood entertainment are already doing best business in this continent. The good thing for Lovefilm is the free trade facilities in America. Kurtz, D.(2012, p.176) states that ‘‘North America free trade agreements did revolution for business in North America although Each NFTA members have its own system to measuring business activity’’.


Obstruct to entry in North American Market:

In US and Canada already Netflix and Blockbuster established their business. If Lovefilm wants to explore in USA and Canada then they need to accommodate more than 30 distribution centre as Netflix has already more that 30 centres and it is a matter of huge investment. Also the big players already have huge fixed customers.

Opportunities:

Almost every people in North America have knowledge of using internet. Lovefilm’s business model is highly depends on internet and these countries are well advance in technology also Lovefilm will get huge active population to do business.

Strategies can be taken:

1. Offer cheap Package : There are already some giant competitors in this market so Lovefilm needs to offer cheap package than other, so that customer will start to move to Lovefilm.

2. Postal Service: Lovefilm need to establish a fast delivery service in North America.


O b st r a ct s :

1 . C om p et i t o r

s2 . D is t e ib u s ti o n

c e n tr e

3 . I nv e s tm e n

t4 .

F i x ed

C u s to m e

r sO p po r t

u n i ti e s :

1 . I n t e rn e t K n ow l wd g e

2 . T e c

h n o lo g i c

a l3 .

P o pu l a t i

o n

R e c c o m e n de d

S t r a t e g i e s :1 . C h e a p P a c k a g e2 . P o s t a l S e r v i c e

3 . U p d a t e4 . I n c r e a s e

V o l u m e5 . C u s t o m e r

s e r v i c e6 . D i s t r i b u t i o n

C e n t r e

3. Update fast : To attract the customer Lovefilm need to update them very fast. They need to get the newest movie before others.

4. Customer Service: Customer services should be more efficient to stay in the competition.

5. Distribution centre : Lovefilm needs to accommodate more distribution centre than Netflix. So that Lovefilm can make sure on time delivery to the clients.

6. Increase number of each label: This is very important to increase the number of DVD on each movie, because North American market is a huge, Lovefilm needs to think about it broadly.

South American Market: The giant competitors are already moved to Latin countries. It is always very difficult to make place in the market where other competitors are already playing roles. However, Lovefilm still has chance to expand business in South America.

European Market : Lovefilm is already doing business in European market. It’s doing business in UK, Germany, Norway and Sweden. Lovefilm is the old player in European market because the giant called Netflix just arrived in UK this year. Lovefilm needs to hold its position in UK, at the mean time Lovefilm has to expand its business all over the Europe.


O b st r a ct s :1 .

C o mp e ti t

o r s2 .

C u r re n c

y V a l u

e3 .

B u s in e s s L a w

O p po r t

u n i ti e s :

1 . K n o

w l e dg e2 .

T e ch n o lo g i c

a l3 .

L i f e S t y l

e4 .

S p en d i n

g M o n

e y f o r

E n t er t a i nm e n

t


S t r a t e g i e s :1 . B e t t e r S e r v i c e

2 . D e l e v e r y3 . P r i c i n g

4 . A d v e r t i s e m e n

t

Opportunities:

EU business policy is the strength for Lovefilm. Lovefilm can use this opportunity to expand its business. Johnson, D. & Turner, C. (2006, p.134) States that ‘‘European business policy not only create freedom for business but where the policy is needed it should not undermine the competitive positioning of the business’’.The value of currencies between pound and euro is almost same, so Lovefilm will not have problem with this matter. On the other hand, people are spending money for entertainment as well as, these countries technologically advanced and over 70% people have access to the internet.

Strategies Can Be Taken:

1. Advertising : To enter in other countries Lovefilm needs to advertise its services more, so that, public awareness will increase.

2. Distribution Centre: In every European country there should be some distribution centre initially.

3. Local Movie including: Lovefilm should include the local movie for a particular country, it will attract customer to be permanent.

4. Pricing : Pricing should be varying by area wise. In some area people can spend lots of money for entertainment but some areas people can’t.



C o mp it i t i

o n2 .

L o c al

In d us t r y

O p po r t

u n i tie s :

1 . E U

C o un t r ie

s2 .

C u r re n c

y3 .

L i f e st y le

4 . In t e rn e t

U s ing


S t r a t e g ie s :1 .

A d v e r t is m e n t2 . P r ic in g3 . L o c a l

M o v ie In c lu d in g

4 . In c r e a s e D is t r ib u t io n

C e n t e r e

Asian Market : Asia is a very best place for business. Lovefilm needs to know about competency to do business in Asia.Delios, A. & Sing, K.(2005, p.24) states that ‘‘Many firms do not effort to define their competency. In extreme cases, failure to understand competence can lead firm to rely weakness instead of exploiting strength’’. Lovefilm should focus on China, Japan, and Singapore more and for South Asian countries Lovefilm needs to take a bit separate strategies.

Obstacle to Entry in Asian Market:

The Value of currency in Asian countries is not same and sometimes it is very dissimilar with pounds. In china, Japan and Singapore life style is quite good and people are willing to pay money for entertainment but south Asian countries life style is low.

Opportunities:Asia contains huge population. If Lovefilm can establish its business only in china, Lovefilm can profit same as a whole continent. Asian countries are rapidly developing in their technology and Internet is almost available to everyone in some countries.Strategies for Asia:

1. Selected Countries : Some countries are developed and some countries are still developing. In this case, Lovefilm needs to select



V a l ue o f C u r re n c

y2 .

L i f e S t y l

e3 .

D i ff er e n c

e L a w F o r

B u s in e s s

O p po r t

u n i ti e s :

1 . H u g

e P o pu l a t i

o n2 .

T e ch n o lo g i a

l D e ve l o pm e n

t3 .

I n t e rn e t

A v a il a b i l

i t y


S t r a t e g i e s :1 . S e l e c t e d

C o u n t r i e s2 . A w a r n e s s

3 . L o c a l M o v i e

I n l u d i n g4 . P r i c i n g

possible business successful countries. Firstly, need to target china and Japan.

2. Awareness : Lovefilm needs to increase people’s awareness about its services. Advertisement can be tools to increase the awareness.

3. Local Movie Including : Lovefilm should include local movie in their list. People are mostly interested in local movie beside Hollywood’s movie.

4. Pricing : This is a critical part for Lovefilm. Pricing should not be same as UK or USA it should be as local demands. If it is high then, people won’t be attracted.

African Market: It would be very difficult to expand Lovefilm’s market in Africa because most of the countries are still under develop and using of internet is not so popular except some countries like South Africa, Egypt etc. Nwankwo, S. & Aiyeku, J.(2002, CH7,p.65-71) states that ‘‘African Nation are very much low in technological development, but it is developing rapidly in information technology’’.

Strategies can be taken:

1. Look only developed side : Lovefilm should look only on countries which has available internet facilities. Such as: South Africa and Egypt.



L i f e S t y l

e2 .

C u r re n c y V a lu

e3 .

L e s s In t e rn e t C o n

n e c t io n4 .

L e s s K n o

w le dg e

O p po r t un i t ie s :1 .

L e s s C o mp e t i to r s2 .

L e g al ly

F le x ib le

R e c c o m e n d ed S t r a t e g ie s :

1 . O n ly In s e le c t e d

C o u n t r ie s2 . A d v e r t i s in g

2. Advertising: It will be very new services in Africa, people need to know about this, by advertising Lovefilm may make a good market in Africa.

Australian Market: Oceania countries are well developed in technology and have well access in internet. Ferenstein, B.(ed)(1996) states that ‘Australia enjoys MFN(Most favoured Nation) status with its trading partner (P62)’.

Strategies can be taken :

1. Distribution centre: Australian people are already introduced with this service. Quickflix is an established players in this field. So Lovefilm should be superior in service to make a good market for itself. Lovefilm need to put up enough distribution centres firstly.

2. Advertisement: Lovefilm’s advertising strategies are very good in UK. it can be a super player in Australia with proper advertisement strategies.

3. Customer services : To attract customer in Australia Lovefilm needs to introduce an effective way of customer services.



L o c al

C o mp e t i t

o r s2 .

I n t e rn a t io n a l C o mp i t i t i

o n

O p po r t un i t ie s :1 .

L i f e S t y l

e2 .

P e o pl e

a r e a w a r

e3 .

S e r vi c e

K n ow l wd g e

4 . I n t e re s t ed I n

E n t er t a i nm e n

t5 .

I n t e rn e t

A v a i la b i l i t

y6 .

D e ve l o p

e d C o u

n t r i es

R e c c o m e n d ed S t r a t e g i e s :1 . D i s t r i b u t i o n

C e n t e r2 .

A d v e r t i s e m e n t3 . G o o d O ff e r s

4 . C u s t o m e r S e r v i c e s

Conclusion:From above discussion, we can see that, Lovefilm needs to take some common strategies to expand the international market. Firstly, Lovefilm should set up more distribution centre the targeted area. Secondly, advertisement is much important, people can know about services through advertisement. Lastly, pricing should be difference by area, it should be depends on currency and demand of consumers. I would recommend, expanding business firstly in Europe, although Lovefilm already has market in Europe but still need to make it strong. After that, America should be the target. After America Asia should be the target, because there are some good chances to boost the business in Asia, then Australia and Africa should come in the targeted area.


References:

NO References Sources1 Kurtz, D.(2012) Contemporary Marketing, 15th ed.

USA: South-western Cengage Learning. Book

2 Delios, A. & Sing, K.(2005) Business In Asia: Strategy for Success In Asia. USA: John Wiley & sons Inc.

Book

3 Gray, S., McGaughey, S. & Purcell,W.(eds)(2001),Asia-pacific issues in international Business, UK: Edward Elgar Publishing Ltd.

Book

4 Travis, T.(2007) Doing Business Anywhere: the essential guid to going global, New jersey: john wiley & sons, Inc.

Book

5 Johnson, D. & Turner, C.(2006) European Business, 2nd ed, Oxon : Routledge.

Book

6 Weinstein, A.(2004), Hand book of market segmentation: Strategic targeting for business and technology firm, 3rd ed. USA : The Haworth Press.

Book

7 Dunning, J. & Lundan, S.(2008) Multinational Enterprises and Global economy.2nd ed. UK: Edward Elgar Publishing Ltd.

Book

8 Nwankwo, S. & Aiyeku, J.(2002) Dynamics of marketing in African Nations. USA: Quorum Books.

Book

9 Ferenstein, B.(ed)(1996) Australia Business: The portable encyclopaedia for doing business with Australia. USA : world trade press.

Book

10 Schaffer, R., Agusti, F. & Earle, B. (2009) International business law and its environment, 7th ed. USA : South-western Cengage Learning.

Book

11 Blackwell, E.(2011) How to prepare a business plan, 5th ed. USA : Kogan Page

Book

12 Jansson, H (2007) International business strategy in emerging country markets : The institutional network approach. UK : Edward Elgar Publishing Ltd.

Book


13 Lovefilm’s webpage http://corporate.blog.lovefilm.com/ (Accessed on 27/04/2012 )

Web page


http://corporate.blog.lovefilm.com/

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INTERNATIONAL & STRATEGIC MARKETING 2