GMM-Assessment-1

Global Marketing Management 21 May 2022 Assessment 1: Outline ASSESSMENT 1: OUTLINE Candidate Number: 270138 Company: GLOSSIER Product/service: FUTUREDEW Country: SOUTH KOREA Word Count: 494 1. Justification of your company & country choice (50 words) [In this section, you provide a justification of the company, the product and/or service and the country you have chosen with a clear rationale for each. The choice of organisation could be for a number of reasons including, but not limited to, for example, because it is your place of work, or you wish to work there, or because someone you know works there. Your choice of product and/or service might be because you are responsible for it in your organisation or it is a new product and/or service to be launched in another country, or it is from a different company and you are very passionate about it. As concerns the country, please remember that this needs to be a new country where the company is not yet present. This section will feed into the introduction of your final marketing plan.]  In the last 10 years, Glossier has transformed the beauty industry. Still has lots of potential for global growth.  Futuredew – a glow-enhancing oil-serum hybrid. One of Glossier’s original and best-selling products.  South Korea is a top-10 world beauty market (ITA, 2022). Could be Glossier’s gateway to South Asia. 1

Global Marketing Management 21 May 2022 Assessment 1: Outline 2. Internal analysis (200 words) [In this chapter, you briefly outline your internal analysis. Aspects such as the preparedness of the organisation for internationalisation (part of the nine strategic windows model and the internationalisation of the value chain), the motives and potential triggers to internationalise, the rationale for internationalisation theory chosen and the proposed international competitive advantage (using Porter’s Diamond, Five Forces model, value for customers and benchmarking). This outline will help you to design the content of the internal analysis section of your final marketing plan. You can use bullet points to make your writing more concise and effective. Please remember to support your points with appropriate references] Strategic Window Number 8 – Seek global alliances  The beauty industry = global. Dominated by a few international firms.  Glossier is a top premium beauty brand in its home market (the US).  Sufficient funds to expand international activity.  Shipping to a few foreign markets and a flagship store in the UK.  Should form alliances with local firms to overcome competitive disadvantages in psychologically distant markets. Motives  Demand from international customers.  Falling direct-to-consumer (D2C) sales in the US, realigned business strategy to focus on retail and other foreign markets.  Profit and growth goals – huge beauty markets outside the US. Triggers  New CEO Kyle Leahy has stronger international ambitions for the firm. Uppsala Model  Glossier internationalised in small incremental steps. First exported to psychologically close markets, then opened a flagship store in one of these. National Competitiveness  The US is a large and sophisticated market.  Presence of beauty product manufacturers.  Lots of marketing talent.  Rivalry between competitors – Glossier forced to innovate. 2

Global Marketing Management 21 May 2022 Assessment 1: Outline  Advanced economy and stable currency.  High GDP per capita at $35,004 (Coface, 2022).  Inflation peaked at 5.1% in 2022 but has stabilised at 3.1% in 2023 (Coface, 2022). Hofstede’s cultural dimensions (Hofstede Insights, 2022) :  Uncertainty avoidance: 85 A high-context culture that maintains rigid codes of belief and behaviour.  Individualism: 19 A collectivist society where extended family is very important.  Indulgence: 29 Long working hours, less leisure focus. Millennials and Gen Z rejecting these conventional ideas and prioritising more balanced lives. The Korean Wave:  South Korean culture is one of the country’s major exports – music, film, art and food.  Younger generations ardent fans of K-Pop bands. These bands don’t encourage rebellion, but kindness, inclusion and solving world issues.  Technologically advanced country with 97% smartphone ownership (Statista, 2023). K-Pop band members have digital avatars who fans can interact with in the metaverse.  K-beauty is focused on achieving a natural, healthy - “glass skin”. 4. Reference list (excluded from the word count) [ You are expected to include a list of all the references used in your assignment. These can be academic articles, but also relevant news items or industry reports.]  Adams, T., 2022. K-everything: the rise and rise of Korean culture. The Guardian , 4 September.  US Government International Trade Administration, 2022. South Korea - Country Commercial Guide - Cosmetics. [Online] Available at: https://www.trade.gov/country-commercial-guides/south-korea- cosmetics#:~:text=South%20Korea%20is%20one%20of,to%20impacts%20of %20COVID%2D19. [Accessed 21 May 2023].  Allianz, 2022. Country Risk Report South Korea. [Online] Available at: 4

Global Marketing Management 21 May 2022 Assessment 1: Outline https://www.allianz.com/en/economic_research/publications/country- risk/south-korea.html [Accessed 15 March 2023].  Barker, M., 2023. Report: Glossier Business Breakdown and Founding Story. [Online] Available at: https://research.contrary.com/reports/glossier? head=;;key--;;opportunities [Accessed 20 May 2023].  Coface, 2022. Economic Studies and Country Risks - South Korea. [Online] Available at: https://www.coface.com/Economic-Studies-and-Country- Risks/South-Korea [Accessed 20 May 2023].  Hollensen, S., 2019. Global Marketing. 8th Edition ed. Harlow: Pearson.  Hofstede Insights, 2022. Country Comparison Tool - South Korea. [Online] Available at: https://www.hofstede-insights.com/country-comparison-tool? countries=south+korea [Accessed 20 May 2023].  Solberg, A., 1997. A Framework for Analysis of Strategy Development in Globalizing Markets. Journal of International Marketing, 5(1), pp. 9-30.  Statista, 2023. Smartphone user penetration in South Korea 2015-2025. [Online] Available at: https://www.statista.com/statistics/321408/smartphone-user- penetration-in-south-korea/ [Accessed 20 May 2023].  Strugatz, R., 2023. Glossier Gets a Makeover. New York Times , 17 February. 5