international mrkting 2

8/14/2019 International Mrkting 2

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TABLE OF CONTENTS

1. INTRODUCTION

1.1 BACKGROUND- COMPANY PROFILE

1.2 THE PRODUCT

1.3 LIST OF FOUR COUNTRIES

1.4 SELECTION OF COUNTRY

2. MARKETING RESEARCH PROPOSAL

2.1 INTRODUCTION

2.2 RESEARCH OBJECTIVES

2.3 METHODOLOGY

2.3.1 POPULATION AND SAMPLING

2.3.2 DATA GATHERING PLAN

2.3.3 DATA ANALYSIS PLAN

3. TIMING

4. COSTS AND BUDGETS

5. PROBLEMS IN DATA GATHERING

6. RECOMMENDATIONS

7. CONCLUSION

8. REFERENCES


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INTRODUCTION Section 1

Introduction

The marketing research plan, with respect to assignment one obtainable with motive by

Gethafoam. Due to its magnetism of the bedding industry growth; Gethafoam has adopted a

market development plan to achieve sustainable growth in the next five years. Part of the strategy

is to develop into foreign market by looking beyond national boundaries for market opportunities

overseas. Thus, the company has selected the following countries Nigeria, Congo and

Zimbabwean, of which Nigeria were chosen after careful survey of customer profiles and it

having potential market for the mattress with huge advantage for Gethafoam plc as a company.

Nevertheless, culture is one of the most exigent component of the international marketplace,

which inclusively patterns of behaviorand way of thinking whether people living in groups

create, share and learn i.e. culture differs from group to another.

The aim of this report is to give a synopsis of Nigeria culture and there consumers behavior.

Moreover, it may provides the international marketer with clues on how the culture may affect on

international marketing mix decisions

The marketing mix deals with the way in which a business uses prices, product, people, process

and promotion to market and sell its product. More so, the marketing strategy needs to take into

account the culture, consumer needs and expectations, buyers behavior of people from targeted

country Nigeria


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1.1Company Background

Weifong Industries Sdn.Bhd was incorporated in year 1969 and with almost 40 years of

manufacturing experience, we are known as the leading manufacturer of natural latex foam

mattresses and bedding products in Malaysia. The company is located at its own property at Lot

60, Batu 11.Jalan Cheras, 43000 kajang, Selangor and occupies a land area of 10,000 square

metres.The company manufactures its product with the Dunlop technology process and its latest

European automatic foaming machine automated line, its products are proudly manufactured

using 100% pure natural, high quality latex from only Malaysia which is renown for its world

class quality.

Gethafoam are made in conformance to international specifications and had matched and passed

various test standards such as certification from ECO umweltinstitute,Germany,Institute

Umweltindtitute Bremen GmbH,Germany and the world renown Malaysia Rubber Board.Getha

mattress also developed there own fire Retardant natural latex foam, which had been tested and

passed FIRA International ltd (UK)

With the ever-increasing international exposure of there products, participation in international

trade shows worldwide, emphasis on continuous research and development is the key to there

continuous growth and success.

The companys achievement had been duly recognized by the Malaysian government and they

were honored to be the recipient of the Product Excellence Awards presented by Prime

Minister of Malaysia,YAB DatoSeri Abdullah.Ahmed Badawi,in the year 2005.Besides this, the

company had also attained numerous prestigious awards, in recognition of its continuous growth

in branding and excellence.

For more confirmation: visit. www.getha.com.my/compro.htm.
http://www.getha.com.my/compro.htmhttp://www.getha.com.my/compro.htm


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1.2 The Product Gethafoam produced the best quality mattress, carpets, cushion etc and

automotive markets like technical foams for industrial, consumers and transportation

industries. It has the same quality with the foreign brands, below are the product offerings.

Getha Bond Adhesive

Getha mattress

Foam Wads & Rollers

Getha campus/leisure mat

1.3 The List of Selected Countries

Gethafoam companypropose to go international market and that has placed a demand on the

marketing manager to conduct a research on three countries to choose the best suitable. Thecountries selected are.

NIGERIA

CONGO

ZIMBABWEAN

1.4 Selection of One Country

After suitable research demeanor on the three countries picked, Nigeria was selected via some

convincing reasons which involves viz

Political stability

Beneficial geographical condition

Positive economic condition

Admittance to free tariff etc

2.1 Introduction


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Market research proposal is a plan, explains in detail the purposes of conducting the research,

ways of doing it, the information needed for writing research and costs associated with it

although there are clarity in domestic market, it is critical to conduct research on the prospect

country for the difference in politics, economics, legal regulations on free trade or restrictions of

operation. There are steps in the marketing research process (Kotler & Keller 2006).

Definition of problem and objectives

Develop the research plan

Gather the data

Perform data analysis

Present the findings

Make the decision

2.1.1 Definition of problem

The domestic market competition created a problem and the gethafoam considered how the

operations of the company will progress in the next decade, with the high contested market share

domestically.

SWOTanalysis is a tool for auditing an organization and its environment. It is the first stage of

planning and helps marketers to focus on key issues.

From theBCG matrix, when gethafoam existing product goes into the new Nigerian market,

the best market strategy for the company to chose is the market penetration.

Existing product New developments

Existing markets Market penetration

Advertisement

Pre-launch the product

Product development

Develop new range

Produce new range

New markets Market development Which Diversification


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overseas market to enter?

What information is needed

for decision?

Where is the target market

(distribution places, people

Produce different types.

(Source from http://www.quickmba.com/strategy/rnatrix/bcg)

2.2 Research Objectives

Two key research objectives for Gethafoam Company are:

(l) How to penetrate into the market with high level of rivalry?(2) How to assess the feasibility of International market with its differences in

Politics, environment, social and culture.

2.3 Methodology

2, 3.1 Population and Sampling Plan

A sample is the segment of the population you select for market research purpose to

representation (varying levels of reliability) (Kotler& Lee). Knowledge of fully understand

society's behavior and fundamental attitudes is essential. The culture traits of a country have a

profound effect on people's lifestyle and behavior patterns and these are reflected in the market

place. This involves the what? How? Where? & who. For the sake for Sample data, we collect

information from various sources.

1. Populations sampling (age, gender income).

2. Brands sampling (the brands that consumer prefer).

In this case cluster where formed to understand the approach of potential customers towards the

brands, we conduct different questionnaires for proper survey and interviews for each diverse

location. These shown in the table below.

Group A Group B Group C Group D

East West South North
http://www.quickmba.com/strategy/rnatrix/bcghttp://www.quickmba.com/strategy/rnatrix/bcg


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The sampling above can be done through visiting or conduct road show in various

Supermarket, street corners, BRT stations and shopping mull.

2.3,2 Data Collection Plan

Two methods are used in data gathering:

1. Primary data

2. Secondary data

Primary data collection methods include survey, observation and experiment, interviews, focus

groups, questionnaires. Secondary data is the data that is already gathered, compiled, and

analyzed for some other purposes. This is via online technology research can now provide access

to thousands of sources, such as newspapers, trade journals, news releases industry news letters

and much more. The following ways have been proposed to carry out during the data collection

process:

Activity Type

(P= primary;

S=secondary)

Purpose location

1 Survey via questionnaires P Better details and pertinent

questions being posed in the

forms to gather reliable and

realistic

shopping malls, o

household resi

survey, schools

airport

2 Observation/Personal

interviews

p To observe target market in

action. This will enrich

Understanding of surveyors.

Shopping malls

Departmental stores

supermarkets, c

stores, and retail shop

3 Experiment p It is the most scientifically

valued research technique. This

is to capture cause-and-effect

relationships-by selecting similar

group of subjects. e.g.

Complimentary gift in the

Same as abov


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package

4 Survey via internet p This incurs least cost insurveying.

Web pop survey

5 Location of shopping

complex and shop

s The locality will determine the

turnover of sales

internet

6 Lifestyle and living

standards

s Lifestyle of living will affect the

purchasing trend

internet

2.3.3 Data Processing or analysis plan.

The information collected from section 2.3.2 is helpful in developing the correct marketing mix

strategies for this potential country, Nigeria. Thus it is crucial to evaluate in detailed in order to

penetrate the marketsuccessfully. The analysis plan set up is as follow.

Customer preferences concentrate on the response from questionnaires and intercept

interviews and focus on the marketing mix selection criteria by the customers, namely

product, price place, promotion, people process and physical

Economic data GDP and Lifestyle survey via internet.

Market segmentation- to analyze the venues with high sales turnover and target

customers

To understand the packaging referencing by customers


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3. The table below indicates our suggest time frame on the research process

Week Activity Purpose Venue

1-4 Desk research To gather secondary data on

three countries in order to

select the best.

Own office

5-8 Fly to countries

selected

To gain better insight of what

you see is what is what you get

concept

Nigeria ,Congo and

Zimbabwean

9 Selection of one

panorama country.

Arrangement is done

to the Gethafoam

management and seek

for the consent

To keep gethafoam

management staff well

informed to achieve the

companys objectives

Own office

10-11 To sketch the

questionnaires format

on the pertinent

questions and answers

wish to be attained

To conduct the survey in

Nigeria based on the group and

category summarized in 2.3.1 it

will determine the product are

interested by the population

within its own country

Own Office

12-15 Complication on data

collected through

survey and interviews.

To summarize the information

gathered

Own office

19-20 To evaluate data and

prepare the findings

To analyze for decision making Own office

21 To present the report To seek endorsement and

decision making to go

international

Own office


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4. Costs and Budget for Research

Item

No.

Description Purpose Amount

($)

1 To send at least twomarketing staff to Nigeria

.Include air ticket, hotel

accommodation and meal

allowances

To survey around the country ofits opportunities and threats to

conduct observation research

50,000

2 Agent outsource cost To engage agent in Nigeria to

conduct the survey

10,000

3 Harmonizing gifts to

people who fill up thequestionnaire forms

To attract more customers to fill

up the forms in more delightmanners

5,000

4 Closet rental in

supermarkets

To gather the survey data in more

effective way

10,000

5 Other miscellaneous bill

e.g. telephone claims

entertainment

For other expenses and offer

benefit to staff

2,500

The above table where used to illustrate for budgeting and costing, which however finalized at

rates of $77,500.

5. Problems in Data Gathering


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Time and tolerance is required to have several endeavor in order to collect the data

needed.

Due to inadequate of fluency with the foreign place- this leads to bogus assumptions and

imperfectly defined research problems.

Statistic data and information about gethafoam seems to be limited.

Regency of data (age of data) - the most current data gathered by way of internet is not

the latest version.

Through mailing and telephone Surveys may not obtain full responses in, accurate

responses attitudes and behavior of customers which lead to in exactness of data

collected.

Lack of thorough demographic information and even in trying to reach sampling units

andConsumer behavior- People could rebuff to collaborate to provide genuine answer

to the questions.

Random sampling errors these errors occur due to variation in a sample data.


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RECOMMENDATION

For the challenges faced during the data gathering Nigeria textile Mills commended to conduct

primary research to overcome the familiarity with foreign environment Individual survey and

observation in different environment convey the most reliable data compared to the mailing or

telephone survey. Via observation and questionnaires we can view the consumer behavior and

their attitude authenticity. All team members and staff in the organization being the consumer

before progressing to penetrate the overseas market. This means we must put ourselves in the

consumers shoes to understand our products in term of quality, taste and price. This is to conduct

the survey within the immediate family members, relatives and friends to obtain the answer

whether we have confident to go international, when faced with the situation where there is no

data available, or the secondary data sources are inadequate then it is necessary to begin the

collection of primary data in the form of quantitative and qualitative research (cateora, 1996).

Due to the inadequate and reliable data collected from internet for its aging reason we must also

search for the magazines such as Weekly Business and journals for better updates. After research

of the potential and viability of Singapore market here after some recommendations about the

further strategy to go to the new market even though all the information is already gathered PLC

still should prepare contingency strategies to cope with the Crisis which cannot be anticipated

such financial crises, terrorism and when penetrate a new international market, PLC should

better use segmentation strategy to fulfill every kind of customer need. In order to gather, sort,

analyze evaluate and distribute needed, timely and accurate information to marketing decision

makers. International marketing information system is necessary for PLC to do better.


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PART 2: Gathering of Secondary Data in Nigeria

Political

Environment

Political

system(research &

findings

Political stability.

http://humandevelopment.bu.ed/dev:indicators

Taxations Tax system (Research

Findings)

Taxation and duties are 100% exempted

Income tax rate is less than 4% after 10 years

Environmental

regulation

Research Findings Variation in Environmental regulations from

state to state.

Employment law Research and

findings

The unemployment rate in the Nigeria jumped

to 8.1 percent, the highest level since late

1983, as employers slashed 651,000 jobs.

Trade and Tariff

Restrictions

Research and

findings

The Trade and Tariff restrictions are generally

high, especially on companies with African

Origin

Economics Factors in Nigeria

Socio-cultural Environment

Employment

Rate

Research

Findings

The unemployment is high, increases to 8.5%

Economic

Growth

Research

Findings

GDP growth averaged 5.6% since

2002

Inflation

Rates

Research

Findings

Inflation rate fluctuates between 17-25%.

Exchange

Rates

Research and

findings

Potentially favorable


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Population

Growth Rate

Research Findings Population growth is among the highest in the

developed countries

Age

DistributionResearch Findings

The age distribution for the Nigeria increased

in the mid aged

Consumer

Behaviors)

Research Findings Notable for continuously changing consumer

buying behavior.

Technological Trends

Distribution and

Communication

Channels

Research and

findings

Distribution of products by the use of

technologies e.g. marketing information

systems

Technology

inducement

Research and

findings

According to statistics in 2004, 120

million people in Nigeria use the internet.

Rate of

Technological

Change

Research and

findings

Development in technology is fast

changing

According to the data obtained, there are opportunities for growth in Nigeria. With the state of

the economy ranging from the inflation rate, the subsidies for African countries, effective

channel of distribution, political stability and so many others touched in the analysis above.

Section2

Cross cultural values and consumers behaviour


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Cross cultural marketing is defined as thestrategic process of marketing among consumers

whose culture differs from that of the marketers own culture at least in one of the fundamental

cultural aspects, such as language, religion, social norms and values, education, and the living

style (kotler 1994).

At the mainstay of culture, lie its values. As defined by Rokeach, value is an enduring belief that

one mode of conduct or end-state of existence is preferable to an opposing mode conduct i.e.

consumer behaviour.eg applying unpleasant colour in the embroidery and latex in making the

mattress is well accepted in the Malaysia but may perhaps be considered a disrespect in Nigeria,

values endow consumers with standards for making comparisons among alternatives.

To suitable the importance of values in consumer behaviour, first we need to identify valuable

market segments to target within the Nigeria market, using an apt marketing mix.

Fundamentally, our crucial targets are defined by elusive consumer characteristics defined by

their lifestyles, reimbursement sought; mattress is a reflection of order, as a result of innovator.

VALS MODEL SEGEMENT inhabit this niche segment Previous consumer features sort after

involves, geography i.e. states, provinces densely populated by blacks, demographics i.e. youths

between 16-30, and the elderly personnels, religions oriented.

The behaviour of the identified consumer groups above towards product consumption is subject

to the values and value systems therein, thus the need to evaluate differences in value systems

between Nigeria foreign market and Malaysia parent country to establish the differences in

behaviour amongst these segments. Understanding the implications of these differences is of

these differences is of significant importance to the international marketer.

Decision Making Strategies for international marketing mix (7ps)

The basic question now is when launching a product into foreign market; do youstandardize or

adapt your market mix to the foreign market? Gethafoam can either adopt to use an adaptedmarketing mix to market the mattress in Nigeria or standardized marketing mix. Conversely the

best unforeseen event approach is to consider a bit of the both; 40%/60%.

Product decision: Standardization / Adaptation


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The central part predicament in global marketing is whether to sell an indistinguishable product

(a global brand) throughout its sales area or to make whatever modifications are needed to relates

for confined differences. The mattress is a niche brand targeted at common niche segment within

the Nigeria country

Apparently desires may be universal, but the motivation, elevation and expressions of these

needs vary, so in essence the product decision on whether to standardize or adapt the mattress is

questionable based on two hypothesis.

Presence of Global Communities: Global communities, entail homogenous groups or market

segments of people with similar lifestyles and values. The mattress is originally targeted towards

the youths ages; the best estimate is that average youth in Malaysia divulge similar

characteristics with similar race within the Nigeria .This is not completely true as these people

are reared on different norms and values, the average Malaysia is very respectful to there seniors

and is quite symbolic in demonstrating this mattress is usually for resting and enjoyment hour,

the case may be difference in Nigeria making products decision for standardization unfavourable.

Convergence and Divergence of Consumer Behaviour This is as a result of cultural

imperialism; countries are becoming similar with respect to penetration and consumption of

confident goods but not in respect to the motives for buying them.Basically, Nigeria when

compared to Malaysia display little convergence at the macro level, we so far apart from GNI

(gross national income).however this does not necessarily imply a divergence of consumer

choice at the micro level, for e.g. Malaysia youth and a Nigeria show talent for upholstery

furniture, yet the reasons for purchasing differs. A Malaysian may purchase foam for resting

while Nigerian man for furniture use only.

Product lifecycle and Adaptation Obviously some reimbursement from Standardization include;

economies of scale in production, Marketing, management, distribution etc, usually

standardization saves cost' however one major factor disturbing the standardization of mattress'

is the product phase within the product life cycle. In Malaysia, the product has attained its peak

phase unlike the Nigeria, for its product new compete. Hence there is need for extensive

adaptation to profitably ascertain the mattress within the Nigeria, The strategy would be to think

worldwide, but act local


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Analysing the Product for Adaptation: In accumulation to cultural struggle to Product

acceptance, which may oblige adaptation, physical attributes can influence the recognition or

elimination of a product. Similarly, the mattress is Multi-dimensional and the totting up of its

features and attributes determines the amount of satisfaction received by consumers thus there is

needed to divide its many dimensions into three distinct components;

Its core Components: Gethafoam mattress core components consist of its design and quality.

These features tend to differ across borders as they reflect contrasting implications to consumers

taste. In Malaysia, the 'mattress, is made mostly in latex; this might replicate rebuff because

consumers are more aligned to spring mattress in Nigeria market. For example; the quality of

the product can be altered .Basically, these adjustments are costly because a change in the

platform (core component) can affect product processes, hence it need additional capital

investment; however it is necessary to adapt the product to the cultural variations as ubiquitous

in the Nigeria. Packaging: These include style features, labeling, trademarks, brand name etc.

The importance of each of these elements in the eyes of the consumer depends on the need that

the product is designed to serve.

Products refer to the offering based on the product or service variety, design, features, quality,

brand name, packaging, styling, size and colour varieties, performance, image etc. In making the

product offering decision Gethafoam plc will need to look into the standardization and adaptation

strategy based on various factors as discussed.

Gethafoam Plc needs to make a decision on the product offering as to whether to standardize or

adapt the mattress to international markets. The most important reasons driving Nigeria

multinational companies towards international tactical adaptation are culture, market

development, competition, laws, economic differences and differences in customer perceptions

while the most important reasons for standardizing are global uniformity and image, economies

of scale and synergetic and transferable experience. Consistency with consumers, easier planningand control and stock cost reduction are of less importance.

Price (Standardization or Adaptation) low cost price

Changes in the marketing environment may require a review of the prices of products already on

the market or for a new market. For example, an announcement by a large firm that it is going to


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lower its prices makes it necessary for other firms in the industry to examine their prices. Culture

is not an independent variable in the business equation. Rather, culture exists, or should exist, to

support thebusiness strategy. If culture is how we get things done, strategy shows us what needs

to be done. Usunier (2000) argues that price is a significant element of communication and a

decisive element in the social interaction between buyer and seller.

Gethafoam Plc needs to look into theirpricing strategy and for very obvious reasons review the

strategy on a regular basis. The price objective, demand and costs estimate needs to be

determined

Promotion (Standardization or Adaptation)

Promotion refers to the awareness created for the preamble of a new product and availability of

an already existing product by means of advertising and selling activities. The main goal of

promotion is to make customers responsive of product features, its uses and reimbursement

Promotion activities help firms to position their products in the right way in the market to reach

the target customers. Effective promotional activities consist of a clear and simple message

which is directly targeted at a specific group of people, reached by means of a suitable medium

like television or print adverts. The message should be consistent with the overall marketing

image of the firm and should reach the target audience and generate the desired response.

Promotional activities involve advertising, personal selling, public relations and sales

promotions. Gethafoam Plc needs to develop their promotion strategies for all of these stated

reasons.

Individualistic cultures' high attraction to the Internet is often attributed to the egalitarian,

democratic nature of the Internet (de Mooij, 2000, 2004). The strong influence of Individualism

on the consumption of the Internet, which is a relatively impersonal medium of communication,

is also connected with the essential and product-specific aspect of cultural communication styles.

Gethafoam Plc needs to be sentient of this since the Nigeria has the predisposition to purchaseproducts online and these needs to be considered as a channel of promotion.

Hofstede (1991) refers to Hall's concept of Context and concludes that high Individualism is

very often connected to "Low-context" communication, whereas low Individualism

(Collectivism) very often is connected to "High-context" communication. According to Hall
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(Hall & Hall 1990) members of low-context cultures have less personal contact with each other;

therefore communication must be very detailed and very explicit.

Place (Standardization or Adaptation) location

Place refers to the distribution channels used to get a firms products from the

manufacturer/service provider to the end customers. Place is also known as channel, distribution,

or intermediary. For business to be successful, it is important that the product/service offerings

are at the right place at the right time. Therefore great importance should be placed in

determining the distribution medium. The selection of distribution method should be carefully

made keeping in mind the target audience and the positioning of the product in the market.

Gethafoam Plc needs to adopt the adaptation strategy in its bid for expansion into other

countries and market around the world as its globalization strategy focusing on managing

capitals through prudent and strategic growth since various countries have different cultures with

regards to their buyer behaviour based on their distribution channel cultures. In high power

societies globalization is broaden supply chains internationally at a time when market instability

is increasing, exposing companies to greater uncertainty. Port stoppages, customs delays and

transportation capacity constraints are just some of the dangers global companies face every day

but this will not be the case of Gethafoam Plc entering the Nigeria due to the fact that the culture

is such that the individualistic nature of the residents also encourage the customers to buy

products online.

People (Standardization or Adaptation) staff/ good delivery

Hofstede (2003) viewed culture as a construct and therefore is not directly accessible to

observation but inferable from behaviours and useful in predicting other behaviour (p 69).

Edward Hall (1976) proposed that the difference in communication among different societies lies

in their context. High context societies depend more on the external stimuli for behavioural

cues whereas those in low context cultures are more direct and explicit in their communication

and this affects the behaviour of the people and this needs to be considered for human resource.

In Nigeria the collectivism culture encourages all staff to think in one direction but the


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individualistic nature of the Nigeria may also hamper group think and work, therefore a blend of

local and foreign workers should be encouraged to strike a balance. The foam industry in Nigeria

is more of afeminine fieldas it is considered a place for women and it is assumed that women

will be more creative than their male counterparts this will not be the case in the Nigeria as the

industry is a mixture of both sexes. In going global, Gethafoam Plc needs to put all this culture

into consideration as well as identify the laws on labour in the country of expansion like

demography where Malaysia workers do not have to attain a certain age to work whereas in the

Nigeria only people over 18years of age can work.

Process

This assumes a separate role within the marketing mix, as it involves the procedures, task

schedules, mechanisms, activities and routines by which a product or service is delivered to the

customer. Identification of process management as a separate activity is a pre-requisite to quality

improvement. While the people facet is important in customer service, no amount of interest and

effort from staff will overcome continued unsatisfactory process performance. The foam industry

in Nigeria emanates high standards of quality hence there should be a precedence need for

Gethafoam plc to incorporate and use for success in this new market. The weather in the Nigeria

requires that the product be produced according to the needs of the consumers and Gethafoam

plc needs to be alert of this therefore they need to use the adaptive strategy withoutcompromising on quality since their slogan is Malaysians quality foam, high quality latex. For

example, can Dunlop technology be added to wool while it can remain 100% latex? Suppliers

have to be responsive to this adaptive strategy else Gethafoam Plc may need to be involved in

vertical integration to ensure that raw materials are readily available for production although the

procedure for production could remain similar.

Physical evidence (Standardization or Adaptation)

Gethafoam should adoptstandardization in some aspects of their physicals like buildings, logos

and slogans since they have been known for Asians quality mattress and has a symbol of the

Asian legacy which is the quintessence of their product offering, the buildings and factories

should have a particular pattern if laws in the Nigeria allows for it. The environmental laws on

pollution by factories may differ from place to place and this will definitely affect the structures


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for example, in Malaysia factories are encouraged to be high storied so as to take pollution

further up the atmosphere, in the Nigeria biotechnology is encouraged to discourage global

warming therefore the building structure may differ.

Conclusion

international mrkting 2

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