International Marketing Report: Harvey Nichols Paper.

Harvey Nichols is recognized as the premier designer brand that is globally viewed as a
leader in beauty products, wine, premium foods and restaurants (Nichols, 2014: 48). International Marketing Report: Harvey Nichols Paper.As a leading
source of innovative and desirable designer merchandise, Harvey Nichols initially opened its
operations in 1831 in Knightsbridge (Cartwright, 2014: 6). In the UK, the renowned global
fashion designer has stores in Manchester, Bristol, Leeds, Edinburgh, Birmingham and London.
On the global scene, Harvey Nichols has stores in Central Hong Kong (Harvey Nichols 2007: 8),
Riyadh and Dublin according to Analysis (2007: 63). In addition, the giant apparel brand has
stores in Istanbul, Dubai, Jakarta (however, this store closed in 2010 as a result of lack of
profitability) (Nichols, 2014: 12). Further, the Company opened new doors in 2012 to Kuwait
client base (Nichols, 2014: 12). International Marketing Report: Harvey Nichols Paper. The British fashion leader has been spreading out into the global
market place with numerous stores being opened across the globe in recent years. The company
opened a store in Azerbaijan in 2014 and intents to open its 8 th international store in Doha in
2017. Harvey Nichols offers its consumers with the ultimate fashion experience. Clients are able
to access the much- desired accessible, exclusive and innovative collections that they need in
their daily lives, from its stores. Traditionally, Harvey Nichols has been targeting affluent
consumers aged from 25 years to 45. However since 2009, Harvey Nichols has widened its target
market to include young customers who aim to experience more fun. Harvey Nichols faces
competitor from other fashion giants, including Horrods Holding, House of Fraser and Selfridges
Retail. In addition, Harvey Nichols aims at providing value to their customers through quality
and fashionable brands. To this end, the company has positioned itself as a provider of quality
clothing at an affordable cost to its mostly affluent consumers.

2.0 Strategic Opportunities Available For Harvey Nichols Global Expansion
2.1 Market Segmentation and Positioning
Today, business entities are turning to a number of different marketing techniques to
drive and grow their businesses and brands forward. Within the competitive world of business
environment, employing the strength of business partnership or corporate alliance to get products
into new venues and channels is a critical element that can enable an organization to increase its
sales (Holweg and Pil, 20: 98). In this sense, the partnership between Harvey Nichols and Saleh
Al Hamad Al Mana, a Qatar business group is primary towards expanding market presence of
Harvey Nichols in the emerging Middle East economies characterized by the rising middle
income clientele. A strategic alliance will allow the UK fashion firm to acquire new client base
and consumers in all distribution channels. Lai and Chen (2014: 118) asserts that the power of
partnership brings tow unique brands and companies together – each corporation with its own
strengths of channel of distribution and brand equity. In order to yield the full potential of a
partnership and reap all of its successes and results, Harvey Nichols international expansion
strategy should be positioned at the apex of the Harvey Nichols’ market mix, consequently
providing additional value at each level. It can be said that global partnership can influence and
contribute to all components of the market mix such as price, product, distribution/place and
promotion (Lai and Chen, 2014: 121). In fact, if Harvey Nichols creates a strong partnership with
Saleh Al Hamad Al Mana, this can become Harvey Nichols’ future market mix strategy.
2.2 SWOT and PEST Analysis
The strengths of establishing a partnership with Saleh Al Hamad Al Mana can have a
wide impact for Harvey Nichols. International Marketing Report: Harvey Nichols Paper. The partnership will widen the reach of Harvey Nichols core
target customers and enlarge its budget. In addition, it will broaden Harvey Nichols brand spectrum and minimize operational expenditure. Jakada (2014:79) opines that this will provide
the much-desired exposure which will in turn assist in the acquisition of new audience. International Marketing Report: Harvey Nichols Paper. When
seeking a partnership, a business should make sure that it is able to align itself with another
brand that offers similar quality and attributes (Van de Vrande, 2013: 612), while offering
incremental exposure in another distribution channel – as well as creating a balance and synergy
in relation to the two companies. The weakness of entering into the closed Arabic cultures that
consumers may fail to purchase the products being offered by the fashion giant and this may
hamper sales for Harvey Nichols. Opportunities available for Harvey Nichols entering into
Qatari marketplace via Saleh Al Hamad Al Mana, will include expanding and promoting its
brand image and corporate heritage that has defined the firm as a fashion leader in quality and
performance. The threat that Harvey Nichols experience is low demand levels for fashionable
products in Qatar and other Middle East countries.
On the PEST front, Harvey Nichols is likely to enter the Qatar market easily due to the
existence of laws that encourage foreign investment. Economically, Qatar is among the
economies in the Gulf region that are experiencing robust economic growth. Islam is the primary
religion in Qatar and the fashion is often influenced by religious factors. Technological advances
in Qatar is picking up and with the joining of Harvey Nichols into this market, fashion
technology is likely to witness a boost.
2.3 Market Targeting
Globally, the luxury market continues to witness double digit expansion, with the global
marketplace currently functioning revenue streams that are slightly above € 200 billion (Fitch
and Kloberdanz, 2014: 113). Consequently, Harvey Nichols will gain by tapping into these
growing market opportunities through expanding its merchandise to Qatar. Generally, a number of factors determine a company’s desire to expand its activities, globally. The primary motive for
expanding into the global market is to gain access to larger and new markets with a view of
achieving corporate advantage. Firms enter into novel markets by applying different strategies –
creating subsidiaries, foreign partnership or exporting. By establishing a partnership with Saleh
Al Hamad Al Mana, Harvey Nichols will be able to access broad know-how and apparel design
technologies that will keep the London fashion giant at the top of the global luxury goods
pyramid. The aim of a company to internationalize is conventionally stimulated by opportunities
in the abroad markets. These chances are stimuli that can only work if the firm has access to
adequate resources to penetrate that market. A firm can receive interior or exterior stimuli that
can influence its global scheme. The top management at Harvey Nichols should identify and
recognize all the necessary stimuli that will enable the company to succeed in the Qatari market
place. Strategic alignment of Harvey Nichols business expansionist dream is critical to the
overall survival of the British leader in Fashion design in a foreign market. The decision to
partner with Saleh Al Hamad Al Mana with an objective of tapping into the Qatari market is
critical towards luring the Middle East consumers to the company’s products and services.
2.0 Recommend Justification for Harvey Nichols’ scheme for global expansion
As globalization gain foothold, more companies are venturing into other foreign business
environments. The most common entry strategies range from joint ventures, licensing, exporting,
and strategic alliance to direct foreign investment. Each of these strategies carries different levels
of capital, returns and risks. In today’s business environment the use of joint ventures and
strategic alliances is rapidly gaining popularity with an increasing number of transnational
corporations (Jakada, 2014: 93). A partnership or strategic alliance can be defined as an
arrangement between two or more companies from different parts of the world to cooperate in value chain activities such as R&D and sales. Strategic alliances become more and more popular
within the business circles in the 1990s (Lai and Chen, 2014: 127). These partnerships provide
many potential benefits to the participating firms.
By engaging in a strategic alliance with Saleh Al Hamad Al Mana, Harvey Nichols will
gain complementary strengths leading to a competitive merit. The benefits that Harvey Nichols
will acquire from a partnership with Saleh Al Hamad Al Mana include: risk sharing, decreased
operational costs, access to untapped and unfamiliar markets, economies of scale as well as
sharing technology. Saleh Al Hamad Al Mana know about of the market in Qatar will be
invaluable to Harvey Nichols since the later wants to get its merchandise into the Qatari market.
These advantages will be compounded by the fact that the Saleh Al Hamad Al Mana and Harvey
Nichols deal with different product line which eliminates the conflict of interest. Saleh Al
Hamad Al Mana knows consumer preferences and buying patterns of the Qatari market and is
also equipped with sufficient knowledge regarding the existing distribution channels. in a market
such that of Qatar which is influenced by strong cultural and religious patterns, the strategic
alliance is critical towards allowing Harvey Nichols to tap into the value chain that could be
accessible by a foreign entity (Holweg and Pil, 2012: 101). International Marketing Report: Harvey Nichols Paper.
A strategic alliance between Saleh Al Hamad Al Mana and Harvey Nichols will allow the
firm firms to not only apportion incomes and profits, but also share challenges associated with
failure or loss. As a result, the popularity of the partnership raises as anticipated risk raises,
because a partnership enable companies to enter into projects that, under normal situations are
considered expensive or exceedingly risky (Ahrendts, 2013: 42). In addition, drawing resources
together will enable Saleh Al Hamad Al Mana and Harvey Nichols to achieve economies of
scale through pulling resources together and maximizing efficiency. The partnership will allow Harvey Nichols to gain strong ground in a market that is religiously and culturally reserved. International Marketing Report: Harvey Nichols Paper.The
British fashion giant will offer its tremendous resources and capital to Saleh Al Hamad Al Mana
in exchange for the innovations and efficiencies found in the later.
A partnership will allow Saleh Al Hamad Al Mana and Harvey Nichols to share fashion
design technology. In turn, this will assist the two companies to produce higher quality more
efficiently. However, there is a catch to this advantage – the two firms should learn which firm
offers complementary technology or skills. Since Harvey Nichols is headquartered in the UK, a
developed economy, Saleh Al Hamad Al Mana, from a developing nation, Qatar, the former will
realize significant expense savings by tapping into cheap labor that the latter’s country offer
(Cartwright, 2014: 6). Saleh Al Hamad Al Mana will benefit from the partnership by accessing
advanced design technology and raised capital access. The bottom line, both firms will benefit
from the partnership in one way or the other. International Marketing Report: Harvey Nichols Paper.

3.0 Suitable Market Entry Strategies and the Market Mix for a Partnership Form of
Business
3.1 Entry Strategy
As earlier noted a company can enter the global market place via licensing arrangements,
partnership, establishing new subsidiaries or acquisitions (Fitch and Kloberdanz, 2014: 114).
For Harvey Nichols, a partnership is a suitable entry mode into the Qatar market. This entry
strategy will enable Harvey Nichols to gain both in terms of tangible and intangible fronts. International Marketing Report: Harvey Nichols Paper.A
strategic alliance or partnership is a suitable entry mode because Harvey Nichols will be able
gain from the ability of Saleh Al Hamad Al Mana to understand the local market, business
behavior and culture. Since Saleh Al Hamad Al Mana is a valued, recognized brand in Qatar, the partnership with Harvey Nichols will benefit the British firm more. Harvey Nichols will leverage
on the positive customer relations that Saleh Al Hamad Al Mana has established in Qatar in
order to advance its business visions and realize its market advantages in the long run. International Marketing Report: Harvey Nichols Paper. In
addition, strategic alliance is a suitable entry technique because Saleh Al Hamad Al Mana
understands the culture of Qatar due to its many years of running business in the country and as
such, it will guide Harvey Nichols on the buttons to press in order to realize success. International Marketing Report: Harvey Nichols Paper.The aim of
any business is to attain market sustainability through raised sales and profitability. Harvey
Nichols will achieve this objective in the Qatar market by aligning its core products with Saleh
Al Hamad Al Mana. International Marketing Report: Harvey Nichols Paper.
3.2 Market Mix
The marketing mix is a vital entry tool that a company can use to gauge its viability in a
foreign market. It constitutes of four elements – product, place, price and promotion (Goyal
Wasan and Tripathi, 2014: 144). The product deals with what the manufacturer want to present
to the consumer and the needs the product aims to meet. Harvey Nichols deals with fashion
–oriented products that aim at providing its consumers with an appeal they desire. The products
by Harvey Nichols are custom tailored to ensure that consumers receive their desired taste and
preferences. This means that the giant British cloth designer will be able to provide its Qatar
consumers with the kind of product that they yearn for. Harvey Nichols’ place will heavily rely
on established distribution channels by Saleh Al Hamad Al Mana. The fashion designer, in
addition, will avail its products through the traditional brick and mortar shop as well as ensure
online presence and the use of catalogues. On the price front, Harvey Nichols has established
itself as a company that offer consumers value for their money. Given the fact that price is
crucial determinant of market behavior, Harvey Nichols intends to offer its Qatari consumers with affordable prices hinged on quality products. This will ensure an increase in consumer
streams to their shops and in the long term, contribute to profitability. When it comes to
promotion, Harvey Nichols intends to get its message to the target segment through billboards,
radio, TV and online advertising. This mixture of traditional advertising strategies and modern
advertising streams will enable the fashion magnet to access both aging and the tech savvy
population.

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4.0 Conclusion
In conclusion, Harvey Nichols is recognized as the premier designer brand that is
globally viewed as a leader in beauty products, wine, premium foods and restaurants. International Marketing Report: Harvey Nichols Paper. The company is recognized globally as a leader in designer apparels. It has stores in various parts of
the globe including Hong Kong, Riyadh, Dublin, Istanbul, Jakarta, and Dubai and it plans to
establish another Shop in Doha. Harvey Nichols offers its consumers with the ultimate fashion
experience. Clients are able to access the much- desired accessible, exclusive and innovative
collections that they need in their daily lives, from its stores. Global apparel market is project to
grow in the near future and Harvey Nichols is spreading its wings with a view of being the first
multinational to tap into the emerging Asian and expanding European fashion market. International Marketing Report: Harvey Nichols Paper.To achieve this, Harvey Nichols has identified partnership or strategic alliances as a technique that
will allow it venture into new markets. The partnership will enable Harvey Nichols to reap
certain advantages such as acquiring new client base and consumers in all distribution channels;
widen the reach of Harvey Nichols core target customers and enlarge its budge; expand and
promote its brand image and corporate heritage as well as access broad know-how and apparel
design technologies.

Case information: Harvey Nichols

Harvey Nichols to open in Qatar

Source: Mintel 09-12-2014

The premium department store will open an 80,000 sq ft store in Doha in 2017.

The Harvey Nichols store will be opened in partnership with Qatari business group, Saleh Al Hamad Al Mana, in the Doha Festival City shopping area. This will be Harvey Nichols’ eighth international store. International Marketing Report: Harvey Nichols Paper.

Stacey Cartwright, group chief executive of Harvey Nichols, said: ‘Doha is an exciting market for Harvey Nichols due to the significant growth we are seeing in the country. Research tells us that our brand translates well in Qatar as well as with the Qatari customers when they shop in our home market.’

Since Harvey Nichols first opened in Knights bridge in 1831, it has led the way in sourcing the most desirable and cutting-edge designer brands. Recognized as the UK’s premier luxury fashion retailer, Harvey Nichols is internationally renowned for its expertly edited fashion and beauty merchandise, premium food and wine offer and award-winning restaurants. International Marketing Report: Harvey Nichols Paper.

Harvey Nichols has seven stores within the UK and Ireland, consisting of four large-format stores in London, Edinburgh, Leeds and Manchester, and three small-format stores in Birmingham, Bristol and Dublin. The new beauty concept store, Beauty Bazaar, Harvey Nichols, opened in Liverpool in November 2012.

All UK stores have luxury Food markets and Restaurants, Cafés or Brasseries. Harvey Nichols also owns and operates OXO Tower Restaurant, Bar and Brasserie on the South Bank in London. International Marketing Report: Harvey Nichols Paper.

In addition to this, there are seven large-format stores overseas: two in Turkey (Istanbul and Ankara), one in Riyadh, one in Dubai, two in Hong Kong and one in Kuwait. Harvey Nichols Baku, Azerbaijan, will open in summer 2014. Its eighth international store will open in Doha, Qatar in 2017.

Harvey Nichols stores offer the ultimate fashion experience. Seen as ‘the place to be’, Harvey Nichols is the club that doesn’t require a membership. International Marketing Report: Harvey Nichols Paper. Exclusive, niche and established labels sit alongside accessible everyday collections, offering customers the must-have edit for all their wardrobe needs – from everyday to extraordinary.

Additional case information: markets

As reported in Global Retail Report, Colliers, 2014 which looks at
at 125 key shopping districts in 50 countries, offering insights into current performance and trends for the near future. International Marketing Report: Harvey Nichols Paper.A major theme running through this year’s report is that luxury retail continues to show strong growth and is serving as the impetus for growth across several sectors.

KEY THEMES:

Luxury retailers are in the sweet spot. Luxury retailers are benefitting from income gains among the top earners and are thriving throughout many of the top global markets, including Paris, London, New York and prime cities in Asia. The growth in this sector is a key factor in driving expansion across the board.

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New supply of retail property is robust in developing markets. The global expansion of the workforce and the middle class is spurring a need for new supply, which is concentrated in developing countries in Europe, the Middle East and Asia that have economic growth, political stability, a growing middle class and business-friendly regulatory environments.

Optimism is tempered by threats to global economic growth and the specter of e-commerce. E-commerce is affecting both traditional and luxury retailers across the globe, exerting pressure on merchants to become more creative with concepts regarding their use of space. One popular strategy is to transform stores into product showrooms in an attempt to entice greater foot traffic and additional online sales.

Strong performance of high-street markets and growing development in emerging markets. The generally positive outlook is underpinned by the economic recovery in the U.S. and strong job growth in many parts of the globe. Luxury retailers in particular are thriving, even in regions such as Europe and Asia with weak growth in GDP and consumer spending. International brands are on the prowl for new markets in which to expand

To combat competition from the internet, retailers are adopting new strategies to lure shoppers, such as using space as a showroom to create an “experiential shopping” environment. International Marketing Report: Harvey Nichols Paper.

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International marketing Assignment. S(1)