Module Title: Global Marketing and Sales Development (GMSD)

Module Code: MKT744

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Contents
Section 1: Introduction................................................................................................................................3
 Background of the Firm:..................................................................................................................3
 Rationale for Expansion:.................................................................................................................3
Section 2: Chosen Country Analysis............................................................................................................3
 Trade Barriers and Their Effects:.....................................................................................................3
 Trading Blocks and Impact on Expansion Decision:.......................................................................3
 Social and Cultural Differences:......................................................................................................4
 Economic System Differences:........................................................................................................4
Section 3A: Market Entry Mode..................................................................................................................4
 Direct Exporting..............................................................................................................................4
 Strategic Partnership with Local Distributors..................................................................................5
Section 3B: Marketing Strategy...................................................................................................................6
 Product:...........................................................................................................................................6
 Price:................................................................................................................................................6
 Place:...............................................................................................................................................6
 Promotion:.......................................................................................................................................7
Section 4 Conclusion...................................................................................................................................7
References...................................................................................................................................................8

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Section 1: Introduction
 Background of the Firm:
Neal’s Yard Remedies is a British brand that is a specialist in natural and organic beauty
products. Founded in 1981 in Covent Garden, London, the company makes a name for itself by
sustainable practices, ethical sourcing and cruelty free practices. With a focus on holistic health
and beauty through skin care and beauty products, the objective of Neal’s Yard Remedies is to
achieve to deliver to the customer products that are effective and of high quality through the
natural power.

 Rationale for Expansion:

The key factor pushing Neal's Yard remedies to enter the Indian market is the overcrowded UK
market. Faced with growing rivalry and local saturation of the UK's market, the company is
aiming to look for other growth prospects overseas. Also, India's expanding middle class and
increasing preference for organic and natural products can serve as a pull factor. As a result of
high demand of the premium beauty and skincare products in India, an opportunity for Neal's
Yard Remedies to penetrate the market exists (Pathak & Nichter, 2021).

Section 2: Chosen Country Analysis

 Trade Barriers and Their Effects:
India implements different trade barriers which may have an impact on Neal's Yard Remedies
entry to market. Some of these are high tariffs on imported cosmetics, complex custom
procedures, and tight regulations on the labeling and testing of the product. These barriers make
it costlier for a SME to export their products, which in turn makes the products less competitive
in the Indian market. The first problem a small business from UK like Neal's Yard Remedies,
may face while exporting is the encounter of complex bureaucratic procedures and compliance
requirements (Sama & Trivedi, 2019).
 Trading Blocks and Impact on Expansion Decision:
Unlike the European Union which is a member of a major trade block, India is on her own.
Nevertheless, it forms part of some other regional agreements to facilitate trade, for example, the
South Asian Free Trade Area (SAFTA) and the Asia-Pacific Trade Agreement (APTA) (Singh et
al., 2019). The aim of such agreements is to increase trade among the member states even though

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it may not greatly affect Neal's Yard Remedies' growth decision as the company mainly carries
its own branded products and not much on region trade.
 Social and Cultural Differences:
The Indian culture that thrives under a wide range of practices inevitably brings forth issues and
opportunities for Neal's Yard Remedies. India's affinity for nature and traditional Ayurvedic
medicines mirrors the brand's philosophy of using natural ingredients. Besides the obstacles that
cultural differences create in product standards and marketing practices, successful penetration
by beauty products will be determined by the ability to adopt and adapt to local preferences
(Gilitwala & Nag, 2021). It is important for brands to develop a deep understanding of what is
sacred to the Indian people, as well as their customs and festivals, and to make use of the
prescribed rituals and practices properly in their marketing initiatives; this will be beneficial for
establishing a relationship of trust and brand loyalty.
 Economic System Differences:
In India, the mixed economic model which incorporates capitalism and some aspects of
socialism at the helm of affairs. Growth in financial terms has been recorded as a sign of
progress, but the gap between rich and poor, and the number of those still in the village, has
surprisingly remained. This situation encountered Neal’s Yard Remedies with at least two issues
as regarding marketing policy and market segmentation (Shahid et al., 2023). The company will
possibly be expected to have its goods on offer at different prices which will cater for all income
levels. Moreover, the SME has to go up the difficult way to deal with the infrastructure of
distribution in India in order to offer its products both in urban and rural areas successfully.
Therefore, Neal's Yard Remedies entering into Indian market brings out with both business
chances and hurdles. Despite the initial trade barriers and cultural differences that may pose as
obstacles, the growing market for natural and organic cosmetics in the country, and the broad
consumers base, make it a good market for the company’s expansion. With careful planning and
market research, Neal's Yard Remedies can build on their brand strengths in order to establish
themselves as a reputable brand in India (Singh et al., 2019).

Section 3A: Market Entry Mode

 Direct Exporting
The direct trading model for market entry is when products are sold directly to customers or
retailers in the target market without using intermediaries. In case of Neal Yard, the given
approach takes into account the complex issues and opportunities that were identified in the
analysis of the Indian market. To begin with, exporting directly through the company's channels
helps in dealing with barriers in trade successfully (Tengli & Srinivasan, 2022). In India, the
product standards are heavily regulated with strict requirements for labeling and quality testing,
whereas the customs procedures are extremely complex therefore become obstacles to foreign
companies. Through direct UK to India shipping, Neal’s Yard Remedies can get around some of
these trade barriers, keeping close tabs on exports process and making sure that its products

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comply with Indian standards. Besides, one advantage associated with direct exporting is that
one is able to adjust to cultural changes (Mahesh et al., 2019). India’s heterogeneous culture
implies that products have to be developed specifically with the Indian consumers in mind as
well as employ marketing techniques that appeal to their cultural norms. This helps the company
to conduct full-fledge market survey and make any imperative adjustments to its offerings
without having to depend on the third-party distributors who will hardly have the insight needed
for the unique market dynamics of India.
Not only does this method help the brand to regulate its image in Indian market but also it
maintains control over its reputation. Neal's Yard Remedies straight engagements with
consumers and retailers, as a result, leads to consistent communication of the brand and
messaging across all contact points, resulting in a growing brand recognition and trust. In
addition, exporting goods directly on Neal's Yard Remedies' existing capacity of manufacturing
in the UK enables them to optimize operational effectiveness and cost efficiency (Malik &
Sharma, 2020). This entry strategy offers a plethora of market opportunities but, at the same
time, poses logistic and market research problems, which add to its complexity. On the other
hand, following well-structured tactical strategies and spending in logistics and distribution
network indirect exporting would be a viable and profitable market entry method for Neal's Yard
Remedies in India. Conclusively, the franchising model aligns with the company's goal of
attaining global recognition while preserving its brand mark. At the same time, the quality of the
product is retained (Dini & Laneri, 2021).
 Strategic Partnership with Local Distributors
The organization can also consider entering the Indian market by partnering with local
distributors which is another effective marketing channel. Through this process distributors of
established natural and organic beauty products in Indian market are involved in the distribution
and selling process. By utilizing local distributors, Neal's Yard Remedies can not only deal with
several complexities but as well can seize the opportunities. Hence, this trade mode does the
trade barriers navigating well. Local distributors are well acquainted with various Indian
regulations, customs procedures, and market dynamics, consequently, making the importation
and distribution process smoother (Lee & Kwon, 2022). They can undertake compliance
requirements e.g. product registration and labeling and thus ensure that the market penetration of
the company is smooth. Moreover, joint ventures exploit the expertise and knowledge of the
local distributors in terms of culture variations. The intervention of these distributors makes
attention possible to Indian customers' tastes, buying habits, and cultural makes Neal's Yard
Remedies adjust products and marketing strategies. Besides this, the tie up with the local
distributors offers already-existing distribution networks and retail outlets in India (McMullen &
Dell’Acqua, 2023).
Such distributors operate on an extensive network covering both urban and rural areas as well as
the cities tiers 2 and 3 where distribution channels may be inadequate. This results into the
company's increased market penetration and it takes less time to reach a bigger audience.

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Moreover, strategic partnerships reduce the risk that might come up during the market entry in
India. Distributors provide their services to manage inventory, logistics and customer
relationships freeing up Neal's Yard Remedies team from worrying about these tasks (Mahesh et
al., 2019). It gives the organization a chance to concentrate primary endeavors like product
excellence, branding, and customer satisfaction. Nevertheless, addition of this channel of entry
adds a variety of challenges like finding trustworthy partners, negotiating good and favorable
terms of agreement as well as maintaining consistency of the brand across different distribution
channels. However, Neal's Yard Remedies must exercise due diligence in selecting and vetting its
strategic partners (Tengli & Srinivasan, 2022). Strategic partnership with local distributors
therefore becomes a mutually rewarding option for Neal's Yard Remedies brand to enter and
establish its brand presence in the Indian market.

Section 3B: Marketing Strategy

When designing its marketing plan and strategy for the international market, attention should be
given to the complexities that come with the chosen form of entry and the opportunities it
provides. In order to pursue exporting directly, the company should change its marketing and
branding strategies in alignment with the specificities of the India market while still preserving
its identity. The marketing mix, known as 4P's (Product, Price, Place, and Promotion), should be
devised in accordance with the specific profiles and tendencies of the target market i-e Indian
market in this case. The following is a 4Ps analysis of the proposed venture for Neal’s Yard
Remedies:
 Product:
Known for its reputation of sustainability and ethical sourcing principles, each Neal's Yard
Remedies product is carefully made to comply by tough standards. From cleansers to
moisturizers, serums and treatments, the whole product spectrum has been created with great
care and precision to account for the balance between efficacy and softness of the skin. One of
the key principles that Neal's Yard Remedies evokes is the idea of purity and effectiveness. This
means that consumers are presented with all-natural alternatives that are strong not only in the
benefits for health but also for preserving the environment. At the time of bringing Neal's Yard
Remedies to the Indian market, one should primarily emphasize the brand's values of genuine
products, quality, and holistic health concepts (Malik & Sharma, 2020).
 Price:
One of the foremost points of concern is coming up with and implementing proper pricing that
can withstand fluctuations in the local markets and cater to the purchasing power of consumers
in India. While the brand will position itself as a premium option, it will still need to make sure
that its pricing is market-competitive and that different considerations such as import duties,
taxes, and distribution costs associated with direct exporting are accounted for (Lee & Kwon,
2022).

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 Place:
The place where customers can come across and buy the products is another factor of utmost
importance. To start off, Neal's Yard Remedies may utilize online channels such as social media
and websites. This will allow the brand to capitalize on the thriving e-commerce market of India
while minimizing costs of other elaborate places. While introduction of the brand to the market
goes on online, the brand can strike partnerships or deals with retail outlets and other viables
places of selling that will allow the brand to grow its presence and foothold in the Indian market.
With the passage of time when there is a significant demand for natural and organic cosmetics,
the brand can go about distributing itself to more and more people across tier 2 and tier 3 cities
(Dini & Laneri, 2021).
 Promotion:
Marketing communications should highlight the brand's value proposition, stressing its
dedication to sustainability, ethical sourcing, and product effectiveness (Lee & Kwon, 2022).
Neal's Yard Remedies can employ digital marketing channels including social media, influencer
associations and targeted advertising to generate awareness and encourage traffic from the Indian
market. Moreover, the company needs to focus on culturally-tailored advertising campaigns and
partnerships to keep in sync with the local communities.

Section 4 Conclusion
By the end, it clear that Neal's Yard Remedies can capture a sizable market in India by exploiting
its resource of natural and organic cosmetics. The brand's choice to step into the Indian market is
an accurate expression of its goal to help people look and feel healthy by using the natural beauty
products. Through opting for direct exporting as their favoured market entry mode, Neal's Yard
Remedies have the ability to overcome trade barriers, keep a constant watch on brand image and
make alterations in the products and marketing techniques as per the preference of Indian
consumers. However, strategic partnerships with local distributors enable them to reach
distribution networks instantly and get market insights faster thus speeding up the company's
market penetration and, moreover, mitigating risks associated with market entry. To build its
marketing strategy Neal's Yard Remedies should customize the product, prices, distribution
channels and promotion ways to fit Indian characteristics while keeping its brand values the
same. The company will remain culturally sensitive while offering a stable brand that caters to
the taste of the Indian consumers. However, after analyzing the market of India Neal's Yard
Remedies stands for a major opportunity for growth. By carefully planning, market researching,
and strategic execution, the company can establish a robust brand position in the growing natural
and organic cosmetics market in India, which could grow to be profitable for the entire company
on a global level.

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References
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cosmetic formulations. Molecules, 26(13), p.3921.
GILITWALA, B. and NAG, A.K., 2021. Factors influencing youngsters' consumption behavior
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Lee, J. and Kwon, K.H., 2022. Future perspective safe cosmetics: Focused on associated with
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