Executive summary

With the help of globalization and development of ICT, global marketing has taken huge step forward in terms of volumes and number of countries. With the emergence of internet and other digital technologies every local firm is exposed to global competition and it has largely raised the bar for quality and value.
Expanding a business into a foreign market can be viewed as one of the most effective means of growth that a company can achieve. However, this is not an easy task given the intensity of the global market competition. When planning a foreign expansion, there are a number of aspects to be analyzed and looked into. This due diligence and analysis prior to the actual expansion will largely enhance the chances of survival in unknown territories. This report evaluates the foreign expansion plans of Linen for Life which is designer clothing brand that intends to expand their operations into New Zealand. First phase of the report gives an introduction to their existing value proposition and market focus. Next, it discusses the product decisions, channels, pricing, promotion, etc. whilst referring to the emerging trends within new digital marketing landscape. Further, the report critically evaluates the business environment of both New Zealand and Sri Lanka to map out how these environmental factors influence the global marketing strategy of the business.

1.0 Introduction

The main objective of this report is to formulate an international marketing mix strategy for Linen and Life which is a boutique style designer brand based in Sri Lanka. Concluding a several successful years of operation within Sri Lanka, Dubai and UK, the company intends to expand its foreign operations by entering into the New Zealand market. The company is specialized in linen designer fashions and currently well-established within Sri Lanka. They have several flagship stores in Colombo which is the commercial capital of the island. Further, they sell their products through other department stores and hyper markets as well. When it comes to their international marketing strategy, the company mainly targets the Asian expat community living in foreign countries. This unique focus has given them better rewards during their international marketing efforts in UK and Dubai as there is a high volume of Asian expats in those markets. Similarly, in New Zealand 11.8% of the total population consists of the Asians and the population density of this category is said to be higher in many commercial cities such as Auckland, Wellington, etc. (World Population Review, 2019). In addition to that New Zealand can be viewed as an attractive market in terms of the per capita income and other economic infrastructure. According to a latest World Bank report, New Zealand is rated as the number one destination for ease of doing business (News Hub, 2018).

1.1 Overall value proposition and a glimpse of the product strategy

Linen and Life is a designer clothing brand which produce unique linen garments for women. Their unique designs and quality of materials have been a key ingredient for their success. The company relies on core brand values such as comfort, authenticity, ease and durability. The company has redefined the concept of fashion with the help of the above themes. The main differentiator of the brand is that all the items are exclusively made out of Linen which is a premium quality fabric. Further, the company is highly concerned about the ethical standards of their products in sourcing and production. The company is promoting linen garments as opposed to other low quality synthetic options which contribute to pollution with the use of micro fibers. This has also largely enriched their overall value proposition and brand identity.