Marketing strategies in the internationalization process of Brazilian franchises

Camargo, Maria Adriana de A. P.; Rocha, Thelma Valéria; Silva, Susana Costa e

doi:10.7819/rbgn.v18i62.2804

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Article • Rev. bras. gest. neg. 18 (62) • Dec 2016 • https://doi.org/10.7819/rbgn.v18i62.2804 copy

Marketing strategies in the internationalization process of Brazilian franchises

Authorship SCIMAGO INSTITUTIONS RANKINGS

Abstract

Purpose:

This paper aimed to analyze the influence of marketing strategies on the internationalization process of Brazilian franchises. The objective was to identify the marketing strategies used by Brazilian franchises during different stages of their internationalization processes and to analyze these strategies according to the Global Marketing Strategy (GMS).

Design/methodology/approach:

The paper adopted a qualitative research methodology based on three case studies developed in Brazilian franchises in the footwear and apparel sector: two companies with active involvement and one with commitment involvement abroad. Six directors and marketing managers of these companies provided statements regarding the internationalization process and marketing strategies.

Findings:

The Brazilian franchises are on the path towards standardizing their marketing mix, but they are still a long way from leading their business actions to the four final dimensions of the GMS: concentration and coordination of marketing activities, integration of competitive movements and participation in the global market. Secondly, we performed a comparative analysis of the three case studies considering active and commitment involvement.

Originality/value:

This study innovates using the GMS to analyze the internationalization processes of Brazilian franchises in different stages, and it emphasizes the dimensions that should be subjects of planning for firms that are preparing to grow their franchising business models abroad.

Keywords:
international marketing; international franchising; global marketing strategy; franchises; Brazilian franchises

Phases	Papers selected - Authors	Domain Theory
Phase 1 - foundation theory - early 1990s	Huszagh et al. (1992Huszagh, S. M., Huszagh, F. W., & McIntyre, F. S. (1992). International franchising in the context of competitive strategy and the theory of the firm. International Marketing Review, 9(5), 5-18.); Eroglu (1992Eroglu, S. (1992). The internationalization process of franchise systems: A conceptual model. International Marketing Review, 9(5), 19-30.)	Theory of the firm; strategic marketing theory general model of franchisor intention to internationalize
Phase 2 - Deeper Explanation - late 1990s	Fladmoe-Lindquist (1996Fladmoe-Lindquist, K. (1996). International franchising: Capabilities and development. Journal of Business Venturing, 11(5), 419-438.) Doherty and Quinn (1999Doherty, A. M., & Quinn, B. (1999). International retail franchising: An agency theory perspective. International Journal of Retail & Distribution Management, 27(6), 224-237.) McIntyre and Huszagh (1995McIntyre, F. S., & Huszagh, S. M. (1995). Internationalization of franchise systems. Journal of International Marketing, 3(4), 39-56.)	Resource-based capability theory International retail franchising theory Internationalization process and Uppsala model
Phase 3 - Extending the Theory in Six Directions - after 2000	Quinn and Alexander (2002Quinn, B., & Alexander, N. (2002). International retail franchising: A conceptual framework. International Journal of Retail & Distribution Management, 30(5), 264-276.) Doherty and Alexander (2004Doherty, A. M., & Alexander, N. (2004). Relationship development in international retail franchising: Case study evidence from the UK fashion sector. European Journal of Marketing, 38(9/10), 1215-1235.) Altinay and Miles (2006Altinay, L., & Miles, S. (2006). International franchising decision-making: An application of stakeholder theory. The Service Industries Journal, 26(4), 421-436.) Cheng et al (2007Cheng, J. M. S., Lin, J. Y. C., Tu, H. H., & Wu, N. S. (2007). Toward a stage model of the international franchise system development: The experience of firms from Taiwan. Journal of Marketing Channels, 14(4), 65-83.) Aliouche and Schlentrich (2011Aliouche, E. H., & Schlentrich, U. A. (2011). Towards a strategic model of global franchise expansion. Journal of Retailing, 87(3), 345-365.) Jell-Ojobor and Windsperger (2013Jell-Ojobor, M., & Windsperger, J. (2013). The choice of governance modes of international franchise firms an integrative model. Proceedings of the Annual International Society of Franchising, Zhuhai, China, 27.)	Domestic and international retail franchising theory International franchisor-franchisee relationships International franchise stakeholder theory Stage model of international franchising Strategic model of global franchise expansion Governance choice model based on transaction cost and agency theories

Perspective/Main Authors	Comparative Advantage	Key Variables	Effects
Standardization perspective Authors: Levitt (1983Levitt, T. (1993). The globalization of markets. In R. Z. Aliber & R. W. Click (Eds.), Readings in international business: A decision approach (pp. 249-266). Cambridge: MIT Press.) Jain (1989Jain, S. C. (1989). Standardization of international marketing strategy: Some research hypotheses. The Journal of Marketing, 53(1). 70-79.)	- Economies of scale - Low cost - Simplification	- Product standard - Promotion standard - Standardized channel structure - Standardized price	- Increased efficiency - Consistent global operations - Knowledge transfer inside company
Configuration coordination perspective Craig and Douglas (2000Craig, C. S., & Douglas, S. P. (2000). Building global brands in the 21st century. Japan and the World Economy, 12(3), 273-283.); Porter (1991Porter, M. E. (1991). Towards a dynamic theory of strategy. Strategic Management Journal, 12(S2), 95-117.); Roth, Schweiger and Morrison (1991Roth, K., Schweiger, D. M., & Morrison, A. J. (1991). Global strategy implementation at the business unit level: Operational capabilities and administrative mechanisms. Journal of International Business Studies, 22(3), 369-402.)	- Comparative advantage - Interdependency - Specialization	- Concentration of value-chain activities - Coordination of value chain activities	- Increased efficiency - Synergies
Integration perspective Authors: Birkinshaw and Morrison (1995Birkinshaw, J. M., & Morrison, A. J. (1995). Configurations of strategy and structure in subsidiaries of multinational corporations. Journal of international business studies, 26(4), 729-753.) Yip (1995Yip, G. S. (1995). Instructor’s manual: Total global strategy: Managing for worldwide competitive advantage. Englewood Cliffs: Prentice Hall.) Zou and Cavusgil (1996Zou, S., & Cavusgil, S. T. (1996). Global strategy: A review and an integrated conceptual framework. European Journal of Marketing, 30(1), 52-69.)	- Integrated production in subsidiaries - Rationalization - Global competitive environment	- Global movement integration - Global market participation	- Increased efficiency - Integration as an international strength

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