Assignment

On
International Marketing of Squidkids-Rainwear for Children
Module: International Marketing
Course:

Submitted To

Submitted By

Word count: 2,095 words excluding cover page, contents, list of references and appendix
Date of Submission: 17 November 2014

Contents
Page No:
Task A

03

Task B

07

List of references

09

Table 1.1: Set of screening criteria to identify and evaluate four countries in European
Union to enter by UK-based small business, Squidkids

03

Table: 1.2. Rank of order for the chosen four countries such as Germany, Italy, France and
Spain in European Union for Squidkids, UK-based small business to enter a market
06
Table 1.3.Countrys cross-comparison

06

Task A
2

For the purpose of entering into European Unions markets by Squidkids, there is need to
identify a suitable country(s) as well as evaluate the country(s) whether the entry of the
UK-based small business would be most relevant and appropriate to expand the business
outside the UK. So, it is required to develop a set of screening criteria in order to identify
and evaluate countries in European Union and thus to justify the selection/choice of the
country for Squidkids products in the defined market.
The following table has been shown as by developing a set of screening criteria for
identifying and evaluating major four countries in European Unions market for the
purpose of entering into one of chosen market by UK-based small business, Squidkidsrainwear for children.
Table: 1
Set of screening criteria to identify and evaluate four countries in European Union to
enter by UK-based small business, Squidkids.
Selection criteria

Key feature of selection criteria

Trade policies and barriers to entry It focuses on the rules and regulations for trading and
in European Union
Major

market

some barriers that can affect the entrance of an

factors

organization into a new international market.

within It identifies and analyse major market factors that

European Union

either positively or negatively affect an organization

for its enter into new market.

Market potential for the product in It identifies and clarifies the potential for a new
European Union
Nature

of

market

product within the target market for an organization.

competition It focuses on the type and intensity of the competition

within the industry in European within the defined industry and a way of creating
Union

competitive edge by an organization into the new

market.
Availability of similar products in It identifies and analyse major substitute products that
the market in European Union

can

influence

customers

to

switch

to

other

competitors in the market for an organization.

Customer purchase behaviour at It identifies and describes the attitudes, perceptions,
the markets in European Union

and patterns of buying a particular product from a

particular business by a customer in the market.

Source: Morschett et al., 2010; and Welch et al., 2007

a. Reasons for choosing particular four countries in European Union to enter into
market by Squidkids, UK-based small business: The author has chosen four countries
such as Germany, Italy, France and Spain in European Union for entering of Squidkids,
UK-based small business with products of rainwear for children. The main reasons for
choosing these four countries in European Union for the defined products at Squidkids can
be shown as follow (Authors analysis):

All of the chosen four countries have higher rate of rainfall and snowfall compare to
other countries in European Union. So, there are huge opportunities for rainwear for
children products of Squidkids in those markets compare to other countries in
European Union.

The chosen four countries are more developed and have ability to spend more on a new
product like rainwear for children compare to other countries in European Union. So,
the living standards of the people as well as interests to spend on purchasing new
product of chosen four countries can be most favourable factors for rainwear for
children of Squidkids while entering into market in European Union.

It has been identified that most of the families in chosen countries are travelling with
their children and kids during summer and winter reasons while other countries in
European Union has low tendency to do so. So, the people attitudes of travelling with
children and kids in chosen four countries in European Union can be termed as most
supporting factors for Squidkids to enter into a particular market in European Union.

b. Discussion and justification of the choice of criteria for screening markets in

European Union for Squidkids, UK-based small business: The author would like to
discuss and justify of the criteria for screening markets in European Union for Squidkids
for its rainwear for children products as follow ():
Trading policies and no barriers to entry: It has been recognized that trade policies and
barriers to entry are most key criteria for international expansion of an organization in a
particular market. In European Union, there is free movement of people, goods, services
and capital with the aim of enacting similar legislation and maintaining common policies
on trade. So, the criteria of trade policies and barriers to entry in European Union can be

termed as most prior selection criteria for entering and expanding business of Squidkids in
a particular market of European Union.
Major market factors affecting sells of products in the European Union market: It is
very important for a business to identify and analyse major market factors to sell its
products in a new international market. So, the identification and analysis of major market
factors such as climate conditions, customers buying patterns, etc. can be termed as most
important selection criteria for entering into a market in European Union by Squidkids,
UK-based small business.
Market potential for rainwear for children of Squidkids in European Union market:
It is needed to identify the market potential for defined products in the targeted
international market by an organization in order to enter into that market. So, the overall
market potential for rainwear for children is an important selection criterion for chooses a
particular market in European Union by Squidkids, UK-based small business.
Nature of market competition for rainwear for children product at Squidkids in
European Union market: The identification and analysis of the nature of market
competition at the defined business industry is very common to expand business into a new
international market. So, it is very key criteria to enter into a particular market in European
Union by Squidkids, UK-based small business offering products of rainwear for children.
Product substitute for rainwear for children at Squidkids in European Union market:
The availability of similar products in the market has huge influence and impacts an
organizations decision to enter into a new international market. So, the identification and
evaluation of similar products of rainwear for children of Squidkids is defined as most key
selection criteria for entering into a market in European Union.
Analysing customer purchase behaviour for rainwear for children at Squidkids in
European Union market: Customer purchase behaviour is refers to the patterns, attitudes
and approaches of a customer to make purchase of a particular product from a business in a
particular industry. So, the analysis of customer purchase behaviour for the products of
rainwear for children in markets in European Union is very key criteria for selecting a
market to enter by Squidkids, UK-based small business.
Thus, it can be opined that all of the above mentioned criteria are most relevant and
appropriate for the purpose of identifying and justifying a particular market in which an
organization wants to enter with its product(s) such as entering into a particular market in
European Union by Squidkids with its rainwear for children, which changes colour when it
rains.
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c. Suggesting a rank of order for the chosen four countries in European Union
including evaluation and argument for ordering this rank: The author would like to
rank of order among chosen four countries in European Union to enter into a particular
market by Squidkids for its product of rainwear for children, which changes colour when it
rains as follow:
Table: 1.1. Rank of order for the chosen four countries such as Germany, Italy, France and
Spain in European Union for Squidkids, UK-based small business to enter a market
Rank of order

Name

of

chosen

European Union
Germany

Spain

France

Italy

country

in

Evaluation and argument for above mentioned rank of order: The author has put
Germany as top market for rainwear for children which changes colour when it rains. The
author has named Spain as second most important market for rainwear for children, which
colour changes when it rains. The author has ranked France as third option and Italy as
fourth option for entering by Squidkids, UK-based small business with its rainwear for
children, which changes colour when it rains.
Table 1.3.Countrys cross-comparison:
Year 2013
Criteria

Spain
Value Points

Target

7,214.

population

Germany
Value
Poi
nts
4

9,012.3

Italy
Value Points
7,321.

France
Value
Poin

7,028.2

ts
3

(Children
under age of
16)
Number of

84

33

59

26

11

14

13

days per year

with
precipitation
(rainiest days)
Number of

average days
of snowfall
Average

60.5

75.0

72.5

76.5

18.00

36.5

38.5

23.1

4.4

3.1

2.4

43,475

34,103

39,813

relative
humidity
Average
relative
precipitation
in inches
(Wettest cities)
Consumer
3.2
Expenditure
on rain coat
mn
Countrys
GDP ($)
Total Points
Rank

31,94
2
16

18

17

15

Source: Authors Own Work; Source of data

(http://web2.airmail.net/danb1/european.htm)
One of the prior reasons for considering Germany as top most market for the defined
product at Squidkids is that the country is more developed and people have higher GDP
(Gross Domestic Product) compare to other countries in European Union (Siebert, 2005).
An example shows that Germany has recorded the highest trade surplus in the world worth
$270 billion, and making the country as the biggest capital exporter globally (The New
Straits Times Press (Malaysia) Berhad, 2014; and Knig & Cie, 2014). In addition, it has
been revealed that Germany is the largest national economy in Europe and is a founding
member of European Union (Germany.Info, 2014).
Besides, the stronger position of the economy of the country, Germany has developed its
economic policy based on the concept of the social market economy that is most suitable
and favourable for a new business to enter into the countrys market of a particular industry
(Siebert, 2005; and The World Bank, 2014). Although in other aspects of rainfall days like
as in average number of rainy days and Spain seems to be potential but in terms of getting
back to rainiest place it comes last interestingly.
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So, it can be noted that the overall economic strengths, per expenditure on rain coat by
Germans and opportunities for international business to enter and operate business in
Germany are most relevant and appropriate reasons and arguments for choosing Germany
as top most market for rainwear for children of Squidkids, UK-based small business while
entering into a particular market in European Union.
Task B
An organization may follow or apply some particular approaches for internationalization of
the business into a new market. It is very important for the organization to evaluate each of
the approach for internationalization and thus to use one of the most relevant and
appropriate for international operation and management of the organization (Kuada, 2005).
In order to enter into a market such as Germany in European Union by Squidkids, UKbased small business offering rainwear for children, which changes colour when it rains,
there is need to evaluate and justify both stages and born global approach for this
internationalization of the business.
a. Evaluating the main differences between stages and born global approaches to
internationalization at Squidskids: The author would like to evaluate the main
differences different stages approach and born global approach to internationalization at
Squidkids, UK-based small business offering rainwear for children as follow:
Stages approach to internationalization: The stages approach to internationalization is
a traditional approach to enter into a new market by an organization. Based on this
approach, the business operates in domestic market and eventually thinks to enter into a
new international market when the product gets maturity at the domestic market based on
product life cycle concept (Vernon, 1979). There is another model for stages approach to
internationalization that is known as The Uppsala Internationalization Model in which an
organization gradually increases its international involvement (Johanson and Vahlne,
2006).
It has been argued that the stages approach represents an attempt to systemize
development process of an organization in some phases, which rely on causal relationships
between different sets of variables within the organizations inside and outside
environment (Kuada, 2005).
So, it is clear that the stages approach to internationalization mostly depends on different
things such as change in organizational structures, processes, planning and control system
in order to start business operation in international market.
8

Born global approach to internationalization: The born global approach is most recent
approach to internationalization in which an organization start its international activities
operations at its birth of the business. According to this approach an organization enter
into different international markets at once. There are two main concepts behind the use or
apply of born global approach to internationalization by an organization.
The first concept of born global approach to internationalization is that an organization
views the world as its marketplace from the outset and considers domestic market as a
support for its international business (McKinsey & Co., 1993). The second concept of
born global approach to internationalization is that an organization seeks to derive
significant competitive advantage from the use of resources and sales of outputs in
multiple countries (Oviatt and McDougall, 1995).
So, it is clear that born global approach mainly focusing on starting international business
operation and management of an organization during its born with the aim of increasing
competitiveness of the business both in the domestic and international markets.
The basic difference between stages approach and born global approach to
internationalization is that the former one focuses on business expansion to international
market after having maturity of the business in domestic market, while the later one
focuses on entering into new international market at the very beginning of the business and
thus to create strong position both in domestic and international markets.
b. Advising a suitable approach with justification of internationalization at
Squidkids: The author would like to advise to apply born global approach to
internationalization in Germany in European Union market at Squidkids, UK-based small
business for rainwear for children. The main reason is that however, the business has been
operating in UK since 2008 with the aim of providing quality products for its target
customer and very different from other competitors in the market, but the current business
of Squidkids starts in October 2014 at Regent Street, London, UK through offering
rainwear for children that changes colour in the rain (Squid London Ltd, 2014). The other
main reasons for applying born global approach to internationalization at Squidkids
include: creating competitive edge in the targeted Germany market; developing strong
brand image among the customers in European Union markets; and making higher profit
and growth of the domestic (UK operation) market through international operation in
Germany. So, it is clear that born global approach to internationalization may bring huge
9

opportunities and benefits to Squidskids compare to traditional or stages approach to

international operation in Germany, a leading market in European Union.
The author would to opine that born global approach to internationalization would be
most appropriate and relevant for Squidkids to enter into a market such as Germany in
European Union.

List of references
Euromonitor

(2014)

Consumer

Life-styles.

Available

at:

http://www.euromonitor.com/countries-and-consumers?
id=1&pageSizes=10&sortBy=1&fs[0].Code=ConsumerLifestyles&fs[0].Group=product,1,
10

9&fs[0].Name=Consumer+Lifestyles&fs[0].hasChildren=False&fs[0].Expanded=False&fs
[0].Type=Child [Accessed, 17/11/2014]
1. Germany.info. (2014). German Economy Returns to Growth - GDP Growth 2014
webapp". [Online]. Available at: Germany.info. 2014-04-16. [Accessed date 13 November
2014].
2. Johanson, J. and Vahlne, J. E. (2006). Commitment and Opportunity Development in the
Internationalization Process: A Note on the Uppsala Internationalization Process Model,
Management International Review, 46 (2), pp. 165-178.
3. Kuada, J. (2005). Internationalization and enterprise development in Ghana. London,
UK: Adonis & Abbey Publishers Ltd.
4. Knig & Cie (2014). Germany: worlds biggest capital exporter in 2013 | [Online].
Available at: Koenig-cie.de. 2014-01-14. [Accessed date 12 November 2014].
5. McDougall, P. P., and Oviatt, B. M. (2007), Exploring the Role of Industry Structure in
New Venture Internationalization, Entrepreneurship Theory and Practice, 31 (4), pp. 517542.
6.McKinsey & Co. (1993), Emerging Exporters: Australias High Value-Added
Manufacturing Exporters. Melbourne: McKinsey & Co., Australian Manufacturing
Council.
7. Morschett, D., Schramm-Klein, H. and Zentes, J. (2010). Strategic international
management: text and cases. 2nd edition. Germany: Gabler Verlag.
8. Oviatt, B. M., & McDougall, P. P. (1995), Global Start-Ups: Entrepreneurs on a
Worlwide Stage, Academy of Management Executive, 9 (2), PP. 30-44.
9. Siebert, H. (2005). The German economy: beyond the social market. New Jersey, USA:
Princeton University Press.
10. Squid London Ltd (2014). Squidkids: bringing colour into little lives [Online].
Available at: http://www.squidkids.co.uk/about.php [Accessed date 15 November 2014].
11. The New Straits Times Press (Malaysia) Berhad (2014). German trade surplus soars to
all-time high in 2013" [Online]. Available at: http://www2.nst.com.my. [Accessed date 13
November 2014].
12. The World Bank (2014). Ease of doing business in Germany [Online]. Available at:
http://www.doingbusiness.org/data/exploreeconomies/germany/

[Accessed

date

13

November 2014].
13. Vernon, R. (1979), The product life cycle hypothesis in a new international
environment, Oxford Bulletin of Economics and Statistics, 41 (4), pp.255-67.
11

14. Welch, L. S., Benito, G. R. G. and Petersen, B. (2007). Foreign operation methods:
theory, analysis and strategy. Cheltenham, UK: Edward Elgar Publishing Limited.
15. WorldWeather.com (2014) Interesting European Weather Facts and Extremes, Available
at: http://web2.airmail.net/danb1/european.htm [Accessed 17/11/2014

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