International Marketing


International marketing is a process through which a firm operates in more than one country. Gems and jewellery sector is one of the most broad market in which trading across countries take place. H. Samuel is a big chain dealing in Jewellery business from a very long time. It is one of the most likely brand for people of U.K. and therefore its contribution in total economy of country is significant. Following report is prepared in order to understand various factors that effect cited business by doing PESTLE and SWOT analysis of same. Also the succeeding study will enable learner to enhance their knowledge about how cited company can enhance its market in different countries like India, China, Nigeria and Thailand.

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Question 1

Factors that impact the global jewellery industry

In order to analyse the macro cause that has their effect on ornament sector PESTLE analysis of same needs to be done which is given below:

Political (P)

These are very important factors as they bring direct impact on functioning of this business. Though political surroundings do not fluctuate much this business can continue smoothly in international market. It gets affected by various taxes that are imposed on prime products as behaviour of customer changes with alteration in revenue enhancement. Apart from this it also gets affected when laws related to export and import of stones are modified.

Economic (E)

Capacity of customer to buy is the most important factor that effect purchasing of products in this business. Alteration in customer duties has brought positive change in cited industry. Also after relaxation in import and export of gold expansion is done in jewellery business.

Social factors

as these days ornaments have become a part of status symbol demand for same has raised. After hike in price of gold consumers prefer to invest more in stones and diamonds. All these trends keep fluctuating demand by customers.


With increase in trend there was a need to develop this profession and therefore highly skilled labour are necessary so that total cost can be minimised. Introduction of developed tools and machinery helped cited industry in giving tough competition.

Legal factors

there are various favourable moves taken by legal authority so that diamond business can flourish.

Environmental factors

This industry full fills all its responsibility towards surroundings while mining and selling of their products. Although this business is affected by the health issues of those working with them as their safety is at question when operating with big machinery.

Apart from these there are also various competitive factors that impact the global jewellery industry like which can be understood through Porter forces analysis. It is a guideline which shows level of competition in a particular industry.

Threat of new entry

  • Cartel character has made it impossible for fresh companies to enter in this industry
  • Merger between various medium scale organisation is taking place to get into this business

Negotiation ability of provider

  • New entries come with major drawback of increased supply
  • It promotes stock keeping which results into increase in negotiating power.

Bargaining strength of customer

  • Less negation power was given to buyers
  • After economic problems this industry faced fall in price

Question 2

Internal business environment of H. Samuel using Porter’s Value Chain

As the cited industry is engaged in business where a number of activities are performed which may be classified into primary or supportive tasks. In order to understand the internal business environment of H. Samuel action performed in same are given below and than swot analysis of same is also done in order to understand analyse its strength and weaknesses.

Primary activities

Main acts – It includes employee contacts with their suppliers so that inputs can be received stored and broadcast raw material.
Operations – it includes all efforts taken by operational team to transform raw material into final products.
Outbound logistics – As the cited company is dealing in manufacturing products which need effective distribution system. It includes activities like collection storage and dispersion of final item.
Marketing and sales – H. Samuel use various methods to market its products to customers. Buyers are given information about various innovations done by company in its designs.
Service – Commodities sold by this company falls under the category of prime quality. Therefore management ha different department who gives after sale services to their customers.

Secondary activities

Procurement – it includes purchasing of various raw material and assets for business
Human resource management – as work needs to be done company needs to perform activities like recruiting, developing, training etc. so that effective results can be achieved.
Technological development – it includes tasks like equipments usage like various tools machinery through which manufacturing of jewellery is done.
Infrastructure – it includes different department of cited company like legal, finance, government

SWOT of H. Samuel


Cited company is known for its different designs and perfection in their output. It makes use of stones in a unique manner that helps in attracting more customers. Also its designs are favoured as they give an essence of culture and tradition which makes it more favourable (Chung, Lu Wang and Huang, 2012). Company also take efforts like organising shows and exhibition which also customers to go through the hard work done by cited business entity.


Variety of finished products is less than the other stores in same field therefore customers are left with reduced number of choices. Apart from this the cost of items are also higher in comparison to other brand products.


Customers are increasing with rise in trend of fashion jewellery. Therefore this gives chance to cited entity to work on increasing their varieties so that it can cover more market. Distribution channels can be developed by opening new stores so that more clients could be reached.


Biggest danger to this sector is of threat. As all items are of great value misplace of even one product may also lead to great loss. This also increase threat for employees working at distinct stores as robbers may also do harm to them. Another risk to this business is of great competition as many new entries are made by fresh entrants (Evers, Andersson and Hannibal, 2012).

Question 3

Evaluation of different markets and selecting one

In order to select one market place for expansion by cited company it is important to first examine markets of different countries. Given below is are the details of potential places where H. Samuel can start theiroperations.


It has availability of enough capital therefore by starting business here investor may find it less difficult to raise money for its business. Apart from this its development rate is also very effective. As this countries population is high labour can be hired at low wage rates and also with the increased population company can be benefited with more customers to buy the products.


Macroeconomic stability is the most favourable factor to do business in India. Taxes rates, regulatory reforms and cost of operations are low when they are compared with other countries.


Market accessibility is easy and living standards of people is also very high.


People are more educated and competition is good there which helps in development of an individual and business effectiveness (Samiee and Chabowski, 2012).

12C's framework of screening

Companies may entered into overseas markets for various reasons. These are saturated and intensely competitive domestic market, diversification of risk on geographical basis. It have the opportunities to realised economic of scale and entry of competitors into international market. There are various model which is used by the H .Samuel in capturing India as potential market in the field of jewellery. They have to analysed 12c's in their operations. Those are discussed below:

1.Country: As jewellery market is concern India is the market where there is strong tradition to use precious jewellery. The trend of jewellery in India is coming from past era. There are various environmental factors that are responsible for the establishment of jeweller sector in India. As micro and macro factors are to be considers to analysed market conditions.
2.Choice: There are various competitors available in case of jewellery business. There strength is to provide original and best quality of gold to its customers. And the purity is the weakness for the company.
3.Concentration: market segmentation is divide according to income level of the customers around geographical areas.
4.Culture: According to the festival they are in demand and customer state are changes likewise.
5.Consumption: In the present scenario the market of jewellery business is in demand as per their requirement. It has more growth potential for the company.
6.Capacity to pay: Middle class families and rich are use to it.
7.Currencies: it can be available in all current, local and international people.
8.Channel: It can be purchased through online and off line mode.
9.Commitment: To provide wide areas as per government tariff's and taxation polices.
10.Communication: Advertising is main mode of promoting jewellery business in India.
11.Contractual obligations: They all have to get resisted through concern legal authority.
12.Caveats: It should be used under available guidance provided by the company.

Question 4

Recommend an appropriate mode of entering your chosen country and justify your choice

In order to enter to expand market in another country it is important that correct mode is selected so that it can give maximum returns to business (Tan and Sousa, 2013). As the cited business entity is dealing injewellery business it will have to take care of various factors that can help in increasing profitability. Before selecting a particular way analysis of licensing required is of most care as sometimes it becomes difficult to get authority to start business in a particular manner. For given organisation it is beneficial if business is started through exporting (Ruzo and et. al., 2011). It is considered to be better as low financial exposure is require this mode. At initial stage this is a best suitable mode as this way cost of establishment can be avoided. As in India market is very diverse and economy is developing it may produce much demand which can be fulfilled without actually doing less investment. Once trading is started it will further help cited company in getting entry gradually. Agents can be hire at low rates as labour in India is available at cheep cost. This will also help H. Samuel in saving cost of labour which can be further utilised in increasing operational efficiency of business. These agents will help cited establishment in marketing companies products to general customers on behalf of the whole organisation. This way ownership will also remain in hands of real owners. Only they will be liable to pay commission to their agents if they are successful in selling companies product. Through this mode of establishing business company also gets an advantage of regaining hold on their products as ownership is not shared under this system. Therefore through this it can be concluded that exporting has various advantage to enter in new market which can be evaluated through benefits give below:

1.Minimise the effect of seasonal change – as products are made only when demand for same arises, it protects business against various changes that take place with change in popularity of a particular commodity.
2.Lower unit cost – It helps in keeping idle production capacity to work. As through exporting machinery, factory, staff is not established in country where exporting is taking place much cost is saved by the management.
3.Increase Profit – mostly it is observed that demand from outside country is more in comparison to domestic consumers as they generally order in bulk. This way total demand increases which also develops profits of the company.
4.Untapped markets – Through this system H. Samuel can establish such product in India which was not present their before. This will increase brand image and demand for cited company as its designs are unique in nature.

Question 5

Analysis of Indian socio - culture factors and marketing mix

The culture in India is different from that of other countries. People like more traditional jewellery than using designer products. People from various caste and creed live together which results into mix demand by them therefore it is important that much care is give to individuals beliefs so that accordingly products are made available. Marketing mix for selected target market is given below: Product – As cited company is dealing in products which has various other alternatives too. Therefore this makes pressure on H. Samuel has to work on developing unique designs and products which can attract more and more customers. For this company should work on doing innovations and development in their designs so that it can cover maximum market. There are numerous products which are included in their portfolio like:

13. Rings
14. Necklaces
15. Chains
16. Gold and silver coins


Company has to decide it effectively so that consumers can reach easily. Cited organisation export jewellery to India so that they can attain their targets as well as objectives. They can appoint an agent over there for their convenience. They can also provide their products online to their clients at a reasonable cost.


H. Samuel is an unique brand which is established in UK. They are going to introduce their products in India so they have to promote their items in this country. They can use various tools for above stated purpose such as advertisement, social media etc.


It is the most sensitive factor as consumer before taking the business decision do proper comparison of all above substitutes. Therefore it has to work more on keeping their prices controlled so that it can be favoured by clients over other options.

Discussed above SWOT analysis of cited company shows that it needs to work more on its designs and effectiveness so that it can attract new customers in India and therefore compete against other competitors. It needs to work more on making product available at distinct areas which will be done through various agents as it is expanding its business through exporting at initial stage. It can also empower its business by using effective advertising techniques so that knowledge to more and more customers can be given in short period of time.


From the above report it can be concluded that jewellery business offers wide range of variety to customers. There are various environmental factors that has direct impact on functions of this industry. From PESTLE analysis of same it can be concluded that ornament business has various favourable government laws which help in development of this sector. Later preceding report discussed distinct threats and opportunities of H. Samuel which can help in taking decisions for future. Thereafter, it is given how through exporting mode of entering new market cited business can expand its scale. Lastly, above report ended with critical analysis of targeted country with SWOT analysis.


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