Global Marketing (Case study of bangladesh and malaysia)

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Global Marketing (Case study of bangladesh and malaysia)

  1. 1. 9/9/2012BY:MOMINUL GLOBAL MARKETING PROJECTPLABON A case study of Bangladesh and Malaysia | Mominul Plabon
  2. 2. Executive SummaryThe following marketing plan forms the basis for introduction of a milk powder named Agoramilk powder in two countries like Bangladesh and Malaysia. This study combines theselection of the countries based on their income level as the purpose of the study is toidentify the distinctions of marketing strategies in developed, less developed and developingcountries. During the analysis there are several remarkable trends found in two countriessuch as it seen developing countries have a large demand for foreign product whiledeveloped country have good level of self sufficiency. Furthermore, in developing countryentry barriers are low as compared to developed country. The key opportunities found inBangladesh are; a great demand of powder milk due the vast shortage of liquid milkproduction, low-cost labour force, increasing use of technology and so on. On the otherhand, in Malaysia the social, economical and technological structure are very attractive forAgora milk powder while a few trade restrictions also exist. However, based on the analysistwo different marketing strategies have been adopted with the reason that both country differto each other in terms of their structure and culture. In this term, a careful design of themarketing mix have been considered for both countries so that Agora milk powder can bepresented in way that the competitors find difficult to imitate.Key words: strategy, quality, market.
  3. 3. Table of Contents1. Introduction ......................................................................................................................................................... 41.1 Country Selection method ................................................................................................................................. 41.2 Bangladesh ....................................................................................................................................................... 41.3 Malaysia ............................................................................................................................................................ 51.4 Industrial attractiveness assessment ................................................................................................................ 51.5 Key summary of analysis .................................................................................................................................. 82.1 Background ....................................................................................................................................................... 92.2 Political factors ................................................................................................................................................ 102.3 Economical factors .......................................................................................................................................... 112.4 Social Factors ................................................................................................................................................. 112.5 Technological factors ...................................................................................................................................... 132.6 Summary of the analysis ................................................................................................................................. 133.1 International Marketing Strategy ..................................................................................................................... 143.2 Segmentation .................................................................................................................................................. 143.2.1 Evaluation of segmentation .......................................................................................................................... 163.3 Target market .................................................................................................................................................. 163.3.1 Undifferentiated marketing strategy ............................................................................................................. 163.3.2 Concentrated marketing strategy ................................................................................................................. 173.4 Brand positioning ............................................................................................................................................ 173.5 Brand positioning in Malaysia and Bangladesh ............................................................................................... 173.5.1 Product strategy ........................................................................................................................................... 173.5.2 Price Strategy............................................................................................................................................... 183.5.3 Promotion Strategy ...................................................................................................................................... 193.5.4 Advertising concept ...................................................................................................................................... 203.5.5 Promotional mix ........................................................................................................................................... 203.6 Place strategy ................................................................................................................................................. 203.7 Entry mode ...................................................................................................................................................... 213.7.1 Export to local agents ................................................................................................................................... 223.7.1 Agent agreements ........................................................................................................................................ 223.7.2 Export risk .................................................................................................................................................... 224. Concluding Remarks ......................................................................................................................................... 23References ............................................................................................................................................................ 24Appendix ............................................................................................................................................................... 27
  4. 4. 1. IntroductionAs a marketing manager of Agora Dairy Company based in UK, my project is about tomarket the company’s high quality (halal) milk powder in two overseas markets. First of all,Agora powdered milk is high quality product which is frequently used to make desserts, tea,dairy foods, cakes, ice-cream and so on. Furthermore, powder milk is also considered as asubstitute of liquid milk and a source of high protein and calcium for all aged people. Here,my focus on this project is to analyse the dairy industries of two selected countries andidentify the opportunities there in order to market our company’s product. However, in thefirst section of this report, I will analyse the industrial attractiveness of milk powder in twoselected countries using General Electric matrix. In the second section, a brief summary ofreport will be given on the competitive structure, rivalry in the selected industries using thePESTEL framework. Furthermore, in the last section, I will propose marketing mix strategiesfor the chosen country based on the opportunities and threats found in part 1 and 2.1.1 Country Selection methodChoosing two appropriate countries for product marketing is a crucial part of this project.However, the following criteria have been considered to choose the appropriate countries formarketing the Agora powder milk (Paul, 2008:54) such as; Present income of the country (per-capita) Population rate Growth rate in income and population1.2 BangladeshWith over 150,493,658 (150m) population, Bangladesh is located in South Asia. The countryhas had several remarkable economical growths in the last decades despite frequent naturaland external shocks. The present income rate (GNI) of the country is $700 per capita (lower
  5. 5. income). From 1990 to 2010, the poverty rate declined from 57% to 31.5% which is anindication of gradual development. According to Central Intelligence Agency, the populationgrowth rate of Bangladesh is now measured at 1.578% while the income growth rate of thecountry is at good condition such as from 2010-2011 periods the rate increased by 6% and itis expected that it will rise or remain same in 2012 (CIA, 2011).1.3 MalaysiaMalaysia is one of the growing economic countries with over 29,179, 952 (30m) populationand located in South-eastern Asia (CIA, 2012). The present income rate (GNI) of the countryis $8,420 per capita (upper middle income) and it is expected that the income rate willincrease by 4% in 2012 (Worldbank, 2012: Tradineconomics: 2012). However, over the pastdecades the population growth rate of Malaysia fluctuated between 1.6% -1.7% and it isforecasted to remain same in the coming 2-3 years (Worldbank, 2012).1.4 Industrial attractiveness assessmentIn order to assess the opportunity for Agora dairy products in the selected countries, first thedefinition of industry should be understood. According to Matson and Hardy (2004:264),“Industry is a group of companies that compete for the same market, by offering products orservices with similar functions to essentially the same pool of customers”. In this term, myfocus is to analyse the opportunity and market attractiveness for our products in Bangladeshiand Malaysian dairy industry. To analyse the opportunity in a particular industry, GE matrixis very helpful for understanding the current business strengths and the marketattractiveness of the products or services in the particular industry (Proctor, 2000). However,an overview of the analysis is revealed below;
  6. 6. Product Strength Analysis Rating scale 1-9 (1=Extremely unattractive, 5=Industry average, 9= Extremely attractive Milk Powder Characteristics Weight Rating (1-5) ValueQuality 20% 9 1.8Price 20% 9 1.8Cost Base 20% 8 1.6Brand Strength 20% 8 1.6Profitability 20% 8 1.6Total= (weight value) 8.4 * The sum of the weightings assigned to the different factors are added up to 100%Table 1: Product Strengths analysis of Agora Powder milk Opportunity in Bangladesh Rating scale 1-9 (1=Extremely unattractive, 5=Industry average, 9= Extremely attractive Dairy Industry Characteristics Weight Rating (1-5) ValueOverall market size 20% 9 1.8Projected market growth rate 20% 9 1.8projected profit margin 15% 8 1.2Global Opportunity 10% 8 0.8Opportunity to Differentiate 5% 8 0.4Regulatory Regime 5% 7 0.35Demand Patterns 5% 9 0.45Entry Barriers 5% 9 0.45Distribution Structure 5% 7 0.35Total= (weight value) 7.6 * The sum of the weightings assigned to the different factors are added up to 100%Table 2: Industrial opportunity analysis in Bangladesh
  7. 7. Opportunity in Malaysia Rating scale 1-9 (1=Extremely unattractive, 5=Industry average, 9= Extremely attractive Dairy Industry Characteristics Weight Rating (1-5) ValueOverall market size 20% 6 1.2Projected market 20% 6 1.2growth rateprojected profit margin 15% 5 0.75Global Opportunity 10% 5 0.5Opportunity to 5% 5 0.25DifferentiateRegulatory Regime 5% 9 0.45Demand Patterns 5% 8 0.4Entry Barriers 5% 3 0.15Distribution Structure 5% 9 0.45Total= (weight value) 5.35 * The sum of the weightings assigned to the different factors are added up to 100%Table 3: Industrial opportunity analysis in Malaysia
  8. 8. GE Matrix 9 High 6 Industry Attractiveness Medium 3 Low 0 3 6 9 Low Medium High Product Strengths B= Bangladesh, M= MalaysiaTable 4: GE matrix grid, positioning the country according their market attractiveness level.1.5 Key summary of analysisAccording to the GE matrix grid it can be seen that, Agora powder milk have potentialopportunity in both Bangladesh and Malaysia but, ranking-wise Bangladeshi market looksmore attractive than Malaysian market for the following reason;According to the dairy industry of Bangladesh, the potential market for Agora powder milk isvery big while the country needs 7.227 million ton milk calculating 120ml per head (Iedap,2012). With the 4.9 million of milking cows and 0.3 million of milking buffalo, the country is
  9. 9. producing only 2.686 million ton. Further 52 thousand ton milk is imported from aboard andthere is still shortage of 3.91 million ton. According to the growth rate of population inBangladesh, the potential market growth for milk consumers can be considered large and itwill also continue increasing in the future as the population rises (fao, 2012). Bangladeshhas high demand for the powder milk due the shortage of liquid milk production and thecountry has revealed a green signal to the foreign companies by reducing the entry barrierssuch as foreign investment in Bangladesh can be either 100% foreign owned or jointventures. Furthermore, the import tariff for milk powder is set at 20% which is also a goodindication for foreign products entry (fao, 2012).However, with total 30 million populations Malaysia is average attractive market for Agorapowder milk. The country was heavily reliant on imported milk powder due to a vast shortageof production in liquid milk but now in the livestock sub-sector (milk production), they areachieving high growth (Fao, 2012). In line with many developing South Asian countries theyare becoming more rigorous and strict on foreign investment whereas the entry barriers forforeign products are relatively high if Malaysia already has reputable position in that sector(WTO, 2011). Currently, it is seen that Malaysia is having stable financial and legal systemsalthough not overly transparent, that support and encourage open trade. However,opportunities still exist; there are still prospects for UK brand milk powders which can be solddirectly to the consumers. The Malaysian dairy industry is willing to import any source aslong as the price is competitive and the quality is good.2.1 BackgroundFrom the industrial analysis it is found that Agora powder milk have a sizable market in bothBangladesh and Malaysia but, it is still unknown that what is the present environment of thecountry such as; how much suitable it is for Agora milk powder to enter in those selectedcountry? Who are the potential customers for Agora? What business policies the countries
  10. 10. have right now? What are the structures of the country? How much competition exists inboth countries?However, to analyse the macro-environment PEST analysis is very useful to identify theissues that create both business opportunity and threats in a host country (Meldrum andMcDonald, 2007). There are four key elements of a country are assessed through PESTanalysis, such as Political, Economical, Social and Technological (Meldrum and McDonald,2007). An analysis of both countries’ condition is described below using the PESTELframework.2.2 Political factorsAccording to Witcher and Chau (2010: 91), “political matters concern the influence thatgovernment have on industries”. One of the major notable trends in political situation ofMalaysia is that the country is having a stable political environment compared toBangladesh. Due to conflicts between several political parties, Bangladeshi government isfacing difficulties to sustain stability in the country, and as a result several strikes andprotests are taken place by different parties (BBC, 2012). However, Bangladeshigovernment is overcoming these barriers by implementing several rules and regulations andacting on its best to reduce the intensity. In addition, Business in Bangladesh can be carriedout by a company incorporated locally or a company outside Bangladesh (bhclondon, 2012),while the tariff rates for imported goods such as dairy product (powdered milk) iscomparatively lower than the other items (Worldbank, 2012: FAO, 2012). Furthermore,investment is welcome at all sectors of Bangladesh and there is no limit for equity share thusa foreign company can get the whole ownership of its business (Raa, 2010).On the other hand, there is comparatively stringent trade policy in Malaysia than Bangladeshas seen on the report of World Trade Organisation (WTO) such as any foreign investment ordistribution service must be locally incorporated with 30% of equity reserved for bumiputera
  11. 11. (WTO, 2010). Although Malaysian government is welcoming foreign products with goodquality but in reality the government is encouraging the foreign company only in the sectorwhere products are produced in low amount by Malaysia and also import taxes are relativelyhigh for those products (WTO, 2010).2.3 Economical factorsBefore entering into a country it is crucial to analyse the economical condition of the countryas depicted by Witcher and Chau (2010: 91) “economic factors concern the cost-relatedmatters for the organisation”. The analysis includes the inspection of economic growth,exchange rate, GDP growth, purchasing power parity, GNP growth of a country. However,Malaysia has one of the strongest and fastest-growing economies in Southeast Asia. Asconcluded by Marshall Cavendish Corporation (2009), “Since the federation of Malaysiagained independence from Great Britain in 1957, there has been significant structuralchange in the economy”. Malaysia is an upper middle income level country with a greatimprovement of standard of living while it is the 30th largest economy in the world bypurchasing power parity (CIA, 2012). The current growth rate of Malaysian national incomeis 4% which is 2% less than Bangladesh. Although, Bangladesh is a less developing countrythan Malaysia, comparatively it has satisfactory history of economical progression since1996. The economic growth of the country increased by 6% every year accordingly from1996-2011 and it is the 46th largest country according to their purchasing power parity(Worldbank, 2012: CIA, 2012). A great advantage of Bangladesh is its low-cost labour forcewhich is a green signal for any foreign company that wants to distribute or market theirproducts using the Bangladeshi labours.2.4 Social FactorsAccording to Henry (2008), “Social factors include cultural changes within the environmentand are often referred to as socio-cultural” and it includes demographics, education, culture,
  12. 12. health and environmental consciousness of the population of the country. According to CIA(2012), Bangladesh is the 8th largest country of the world on the basis of population rankingand most of its people are Muslim. It is seen from the CIA report that most of its populationare between 15-64 years (61% of the whole population) while between 1-14 years are thesecond largest group (34.3%) and the rest of the people are the elder generation. A majorconcern about the country is a significant percentage of the people live in the rural areawhile the level of poverty is high in the country (major income level people live in the city)Although, the milk consumption trends in urban and rural area may differ in Bangladesh butthere has been a significant change in the trends since there is a rising concern of qualityand safety as the population is receiving more education than before. Furthermore, agrowing health consciousness is also driving the people towards quality products while themedia/TV channel plays a great role to fill the gap between concern and demand (such aspeople concern about the product they are using and they see advertisement on the TVabout a better product thus it becomes their new demand). However, according to the majortrends in the consumer behaviour in Bangladesh it is seen that foreign products like US andUK brands have a positive image among the consumers and they are not attached to asingle brand while it changes as they find a better product, which is a great opportunity forAgora milk powder. On the other hand, there are significant structural and cultural changesseen in Malaysia while from every sector they are developing faster. Malaysia has amulticultural and multiracial population consisting of Malays, Chinese, Indians and numerousindigenous peoples (CIA, 2012). As a result of an outstanding literacy rate in Malaysia, thecountry has a growing concern for health and environmental issues and there is also a greatneed of high quality products. Competition is high within the country whereas, the powdermilk market is heavily dominated by Nestle Malaysia, Dumex Malaysia, Dutch baby milkindustries, New Zealand milk products (Ibp, 2010). The major trends seen in powder milkbuying behaviour is that halal products have a high preference (Halal is something that ispurely processed with maintaining the standard set by Muslim religion) while 60% of the
  13. 13. population are Muslim (Mida, 2012: CIA, 2012). Furthermore, poverty is reduced at asatisfactory level in Malaysia while only 3% of the population are below the poverty line.However, it is seen that both countries have a good rate of social development while thedistinction can be seen above. Considering the factors it can be argued that Agora milkpowder need to be presented in different ways in the selected countries because there is alarge gap between the countries according to their development speed and purchasingpower parity.2.5 Technological factorsAccording to William and Green (2007), “technological factors involve changes in technologyand advances in the process of production”. As compared to Malaysia, Bangladesh has notbeen much developed in the technological sectors, for instance; Malaysia is on the way to asuccessful transformation from labour based industry to technology based industry (Jomo,1999) while production process in Bangladesh is still heavily reliant on their labour force(Sillitoe, 2000). However, a good point is that almost 70% of the people in Bangladesh haveaccess to media and television (Thedailystar, 2012), while the percentage of internet, mobilephone users in Bangladesh is rapidly increasing. This is an indication that advertisementthorough TV channel and online can reach a significant numbers of people in Bangladesh.2.6 Summary of the analysisFrom the PEST analysis it is seen that both countries have opportunity and threats for agoramilk powder. Compared to Bangladesh, Malaysia is more industrialised and fast developingcountry which creates several entry barriers to foreign companies. On the other hand,Bangladesh is less industrialised and less stable country which creates opportunities forforeign companies whereas the entry barriers are relatively low. In this stage, the product
  14. 14. marketing strategies for Agora powder milk need to be very sensitive and carefullyconsidered so that the company can survive in those market (Proctor, 2000).3.1 International Marketing StrategyA strong global marketing strategy combines a broader analysis of segmentation, targetingand positioning (Kleindl, 2007).3.2 SegmentationAccording to Stone (2007), “Segmentation involves and analysis of the nature andcomposition of a market to identify groups of potential buyers who have similar needs orcharacteristics, or display similar behaviour”. In this term, the segmentation for Bangladeshand Malaysia are as follows;
  15. 15. Segmentation variables and breakdown for Bangladeshi and Malaysian market of Powder milk Main Dimension Variables Breakdowns (Bangladesh) Breakdowns (Malaysia) Emphasis on Major Cities and Metropolitan Region Nationwide area Geographic Segmentation Density Urban Everywhere Climate All (east, west) All (east, west) Age 6-60 years old 6-60 years old Gender male and female male and female Income all above 1500$ all above 1500$ Demographic Segmentation Occupation Housewives, Bachelors, student, officials Housewives, Bachelors, student, officials Elementary 4th grade, High school and Education Elementary 4th grade, High school and above above Race Bangladeshi Malay, Chinese, Indians and others Brand conscious, inclined for differentiation, Brand conscious, inclined for differentiation Personality health conscious and quick maturation with and looking value for money product foreign product Psychographic Segmentation Most of them are dependent on the head of Lifestyle the family (father/husband). Not very open freedom of choice, cultural society like western communication benefit- communication benefit- Nutritional information on Bengali and Nutritional information on Malay, English, English language Chinese and Indian language information text of the origin of product information text of the origin of the product functional benefit- Functional Benefit- Benefit Sought healthier than liquid milk easy to use Behavioural easy to process healthy, quick disposable Segmentation Perceptual benefit- Perceptual Benefit- good quality, competitive price good quality, competitive price UK brand, good looking UK brand, good looking, standard size Occasional (religious, cultural, officials), daily Occasional (religious, cultural, officials), daily Usage Rate basis, weekly basis basis, weekly basis User Status Non-user, regular user Non-user, regular user Loyalty Status none, medium, strong none, medium, strongTable 5: market segmentation for Agora milk powder in Bangladesh and Malaysia
  16. 16. 3.2.1 Evaluation of segmentationAs it seen on the table, the market segment in Bangladesh is different to Malaysia thus willrequire different marketing strategies for each country (Havaldar, 2005), because thestructure and competition within the countries are different to each other.3.3 Target marketTargeting the potential market is consisted of the willingness of the marketer such as howmany segments will be served in terms of the feasibility and acceptability of the segments(Havaldar, 2005). However, based on the segmentation Agora milk powder will adoptconcentrated marketing strategy for Bangladesh on the basis of geographic segmentationthis is because the purchasing power of the urban people is considered higher and for a UKbrand product it will be hard to gain the attractiveness in the rural area (also it is found that,in technology sectors Bangladesh is still struggling thus it can be assumed that thetransportation is not at satisfactory level between urban and rural area). On the other hand,country with high purchasing power parity like Malaysia needs an undifferentiated marketingstrategy whereas the market will be considered as combination of all segments (Cant et al.,2009)3.3.1 Undifferentiated marketing strategyWith an undifferentiated marketing strategy the business choose to ignore the difference inthe market (Cant et al., 2009). As it is found in the analysis part that Malaysia is a higheconomical growth country with satisfactory level of educated people, thus it can beassumed that the residents are aware of the brand image and quality of the products around
  17. 17. them. In this regard a carefully designed product for mass market can be considered at theinitially stage of entry.3.3.2 Concentrated marketing strategyAccording to Havaldar (2005), “concentrated marketing focuses all the marketing efforts on asingle or relatively few, carefully defined segment (s)” in this term, the marketing strategy forBangladesh will focus on the consumers based on the geographic areas such as the peoplewho live in major cities.3.4 Brand positioningBrand or product position is the crucial part of marketing such as product is designed andpositioned based on considering the criteria that are needed to satisfy the target market(Cant et al., 2009). According to Havaldar (2005), “positioning is how the firm wants itsproducts to be perceived by the target customers on important attributes or benefits”.However, product positioning strategy in Bangladesh and Malaysia includes the followingsteps;3.5 Brand positioning in Malaysia and BangladeshAgora milk powder has several objectives to achieve in Malaysian and Bangladeshi marketfrom which the major objectives are; creating strong consumer awareness towards a newUK brand powder milk, to establish wide brand recognition through the capture of marketshares in the powder milk industry and become the market penetrator in the particularsegment through continuous advertisement and promotion. However, to achieve theobjectives the following steps are crucial to success (Cant et al., 2009);3.5.1 Product strategyAs in Malaysia the product will be for mass market a careful design of the product is veryessential in this stage. In contrast, agora milk powder in Bangladeshi market needs to bevery presentable as it will be only available in the city area. The core function of Agora milk
  18. 18. powder is to satisfy the needs of the consumers as a substitute of liquid milk. Thus forMalaysian and Bangladeshi consumers the product will be designed according to thefollowing chart; Product Strategy in Malaysia and BangladeshPackaging and labelling easy to open and close, agora milk powder easy to open and close, agora milk label, plastic box powder label, plastic boxBranding colourful but moderately, aspects of quality, colourful but moderately, aspects of square shaped, agora milk powder logo with quality, square shaped, agora milk modern font powder logo with modern fontTrade name Agora milk Powder™ , an UK product Agora milk Powder™ , an UK productBrand personality high physical growth, energy, quick disposal, high physical growth, energy, quick quality disposal, high quality, substitute of liquid milkLanguage Arabic, Chinese, Indian, English and Malay English, Arabic and BengaliNutritional information calcium, mineral, GDA and so on calcium, mineral, GDA and so onProduct class Foods→ Dairy products→ Milk→ Powder milk Foods→ Dairy products→ Milk→ Powder milkTable 6: Product Strategy in Bangladesh and Malaysia.3.5.2 Price StrategyThe appropriate price for product is demanded by all levels of customers. For a competitivemarket like Malaysia the pricing strategy must be effective and sensitive otherwise the longterm growth will not be achieved (Paley, 2006). In this term, Agora milk powder will initiallyfollow the current market leader like Dumex Malaysia, Nestle Malaysia to give a choice tothe potential consumers who perceive foreign products have high quality than local. Thisstrategy is very effective such as Paley (2006), professes “when launching new products,pricing strategies can range from skimming a market with high prices, penetrating with lowprices or following the market leader”. In contrast, pricing strategy for Bangladesh will bepenetrating the market through slightly lowering the price than local market. This strategy issuitable for entering into Bangladeshi market whereas it will drive customers from two pointssuch as low price versus foreign product.
  19. 19. 3.5.3 Promotion StrategyAccording to Lawrence et al., (2008) “promotion is the most exciting part of the marketingmix which covers personal selling, advertising, public relations and sales promotion”. It isfound in the analysis part that the culture, economy, structure, belief, idea, shared views varyin the selected countries so the promotion strategy will also vary as the same strategycannot be viable for two countries (Paley, 2006). Promotion Strategy for Malaysia and BangladeshObjective To create awareness among the milk consumers about the launch of UK brand powder milk Bangladesh MalaysiaMessage "Agora milk powder is for all aged people " high quality product, price local but brand and has been processed through highest global" standard of quality checks in UK"Concept "choose the right product for healthy life" "think different" "smart people judge the "give pure milk to your family" "every day difference" healthy day" TV Chanel BTV, ATN Bangla, Channel i, TV Chanel TV3, NTV7, 8TV, TV9 etc. Desh TV etc. Radio Radio Foorti, Radio today, Radio Klasik Nasional FM, One FM, Chanel Radio Amar Chanel Capital FM Magazine National, Food related, Magazine National, Food related, Occasional Occasional Media Internet Facebook marketing, banners Internet Facebook marketing, banners on Selection on food related website food related website official official website: website: www.agoramilk.com www.agoramilk.com Outdoors Banner on the bus stand Outdoors Banner on the bus stand Billboard, large screen tv on Billboard, large screen TV on the the street streetTable 7: Promotion Strategy in Bangladesh and MalaysiaDifferent types of media will be selected on the basis that the new generation’s consumersare not attached to a single media as their media preference is broadening day by day such
  20. 20. as there are about 2.8 million users of facebook in Bangladesh and 11 million in Malaysia(socialbakers, 2012).3.5.4 Advertising conceptThe product presentation into consumers mind is a crucial part of brand positioning such ashow the product will be presented in the major media like TV (Paley, 2006). In this regard,advertising in Bangladesh can focus on the difference between good quality products andpoor quality products, health awareness related advertisement, different use of milk powderand so on. In contrast, for a mass market like Malaysia the product advertisement cancombine continuous advertisement through big celebrities, renowned face. The advertisingactivities can also include arranging quiz show, talk show, cooking program on the television.3.5.5 Promotional mixDuring a product launch it is very crucial to add promotional mix so that the consumers canbe driven towards the product (Lawrence et al., 2008). It is argued that promotion ofconsumer products has great impact on the developing countries and it drives sales(Havaldar, 2006), so that promotional activities in Bangladesh can combine giving spoonfree with each packet, collecting six stickers from the package and getting one free and soon.3.6 Place strategyAgora milk powder will be distributed through shopping complex, super shop, and large sizeconfectionaries in the major cities (Dhaka, Chittagong, Barisal, and Shylet) of Bangladesh. InMalaysia the product will be available in the super shops, medium sized confectionarieslocated nationwide.
  21. 21. 3.7 Entry modeAccording to Jones (2009:8), “international market entry modes refer to the methods ofbusiness organisation employed by companies to enter international markets for the purposeof undertaking value-creating activities”. However, there are four effective entry modesavailable to Agora milk powder such as; Indirect exporting via export managementcompanies, Direct exporting via foreign distributors and sales agents, licensing and jointventures. Licensing and joint venture is suitable for the company who wants to produce theproduct abroad (Jones, 2009), while at the initial stage Agora milk powder will keep itsmanufacturing and production process in UK and choose to directly export the product to thelocal agents in Malaysia and Bangladesh. The benefits of distributing the product throughlocal agents are;  The avoidance of the recruitment, training and payroll cost of the employees to enter into overseas market  Agents are well placed to identify and exploit opportunities  Agents have a good relationships with the potential buyers and for a new company like us it will take longer  Agents have clear understanding of the competitions  Using an agent allows to maintain more control over matters such as final price and brand image compared to distributor.  Quick and easy to reach the target market compared to finding and selling to end users.
  22. 22. 3.7.1 Export to local agentsIn this stage the sales representative team will visit the market in the selected countries andchoose the agents on the basis of their expertise. The agents will be given the exclusivity sothat the concentration can be given on only Agora milk powder thus they will representAgora milk powder in the foreign country on behalf of the company. Furthermore, thisstrategy will be beneficial for Agora milk powder as there can be greater control over themarketing mix (Andexer, 2008). However, there some export related problem exist such aswhich need to be taken into account before exporting the product into foreign market suchas;3.7.1 Agent agreementsThe agreement between exporter and agents are crucial to success (Andexer, 2008). In thisstage, the agreements will be clearly stated using legal documentary and the issues will bestated like; the commission rate, pricing strategy, promotional activities, liabilities of bothparties, payment terms, agreement period, exclusivity, clear descriptions of products,intellectual property and so on (Andexer, 2008).3.7.2 Export riskThere are certain export risk exist such as logistical, financial, political, exchange rate and soon. “The quality of trade logistics, particularly port logistics, has an enormous impact ontrade” (UN, 2012). In analysis part, it found that the Malaysia have good structure overallsuch as the port infrastructure and transportation process is as a satisfactory level while
  23. 23. Bangladesh have a less favourable structure. In this stage, the careful consideration forexporting to these countries includes (Andexer, 2008); Choosing the right method of shipping i.e. by road, by sea, by air, by rail Analysing the potential shipment risk Contracting with logistics insurance company Payment method and exchange rate and so on.4. Concluding RemarksAn attempt has been made in this study to analyse the potential market of Agora milkpowder in two selected countries (Malysia and Bangladesh) and to offer the product in termsof opportunities and threats found in the selected countries. The major notable trends foundin the analysis that both countries have certain level of risk and opportunities for foreigncompany such as in Bangladesh the opportunities for foreign product is high whereas theinfrastructure of the country is relatively poor. In contrast, the opportunities for foreignproduct are comparatively low in Malaysia whereas the infrastructure of the country is idealfor doing business. However, considering the threats and opportunities two differentmarketing strategies have been adopted so that each strategy suits the market in terms ofthe consumer behaviour of the countries. In this way, Agora powder milk can position itself inthe selected country to achieve a long term growth.
  24. 24. References: Andexer, T. (2008). Analysis and Evaluation of Market Entry Modes into the Asia-Pacific Region. GRIN Verlag. Cant, M. C., Strydom, J. W., Jooste, P. J. and Plesis, D. Marketing Management. 5 th edition. Juta and company limited. Henry, A. (2008). Understanding Strategic Management. Oxford University Press. Ibp USA (2010). Malaysia business and Investment Opportunities yearbook. 6th edition. International Business Publications. Jomo, K. S. (1999). Industrial Technology Development in Malaysia: Industry and Firm Studies. Volume 22. Routledge Studies in the Growth Economics of Asia. Jones, M. (2009). Internationalisation, Entrepreneurship and the smaller Firm: Evidence from Around the world. Edward Elgar Publishing. Lawrence, J., Gitaman and McDaniel, C. (2008). 4th edition. Cengage Learning. Marshall Cavendish Corporation. (2009). World and its people: Eastern and Southern Asia. Vol. 9. Marshall Cavendish. Meldrum, M. and McDonald, M. (2007). Marketing in a nutshell: Key Concepts for Non- Specialists. Butterworth- Heinemann. Matson, B. and Hardy, M. R. (2004). Data Driven Investing: Professional Edition. Cognition Capital Management. Paley, N. (2006). The Manager’s Guide to Competitive Marketing Strategies. 3rd edition. Thorogood Publishing. Paul, J. (2008). International Marketing: Text and Cases. Tata McGraw-Hill. Proctor, T. (2000). Strategic Marketing: An Introduction. (2010). Routledge. Raa, T. T. (2010). Input- Output Economics: theory and Application: Featuring Asian Economics. World Scientific.
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  27. 27. Appendix:CIA at a glanceThe Central Intelligence Agency (CIA) is an independent US Government agencyresponsible for providing national security intelligence to senior US policymakers. CIA ismostly renowned because it holds the overall Geographic, demographic, economic, Defenceinformation of every country thus it is a very reliable source of data bank.World Bank at a GlanceEstablished in 1944, the World Bank is headquartered in Washington, D. C. and have morethan 9000 employees in more than 100 offices worldwide. In general sense Worldbank is nota bank like others but a unique organisation with the aim of reducing poverty and supportingdevelopment. Worldbank is also considered as a valid and reliable source of data aboutdifferent countries while most of the data are updated constantly.

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