9/9/2012
A case study of Bangladesh and Malaysia | Mominul Plabon
BY: MOMINUL
PLABON GLOBAL MARKETING PROJECT
Executive Summary
The following marketing plan forms the basis for introduction of a milk powder named Agora
milk powder in two countries like Bangladesh and Malaysia. This study combines the
selection of the countries based on their income level as the purpose of the study is to
identify the distinctions of marketing strategies in developed, less developed and developing
countries. During the analysis there are several remarkable trends found in two countries
such as it seen developing countries have a large demand for foreign product while
developed country have good level of self sufficiency. Furthermore, in developing country
entry barriers are low as compared to developed country. The key opportunities found in
Bangladesh are; a great demand of powder milk due the vast shortage of liquid milk
production, low-cost labour force, increasing use of technology and so on. On the other
hand, in Malaysia the social, economical and technological structure are very attractive for
Agora milk powder while a few trade restrictions also exist. However, based on the analysis
two different marketing strategies have been adopted with the reason that both country differ
to each other in terms of their structure and culture. In this term, a careful design of the
marketing mix have been considered for both countries so that Agora milk powder can be
presented in way that the competitors find difficult to imitate.
Key words: strategy, quality, market.
Table of Contents 1. Introduction ......................................................................................................................................................... 4
1.1 Country Selection method ................................................................................................................................. 4
1.2 Bangladesh ....................................................................................................................................................... 4
1.3 Malaysia ............................................................................................................................................................ 5
1.4 Industrial attractiveness assessment ................................................................................................................ 5
1.5 Key summary of analysis .................................................................................................................................. 8
2.1 Background ....................................................................................................................................................... 9
2.2 Political factors ................................................................................................................................................ 10
2.3 Economical factors .......................................................................................................................................... 11
2.4 Social Factors ................................................................................................................................................. 11
2.5 Technological factors ...................................................................................................................................... 13
2.6 Summary of the analysis ................................................................................................................................. 13
3.1 International Marketing Strategy ..................................................................................................................... 14
3.2 Segmentation .................................................................................................................................................. 14
3.2.1 Evaluation of segmentation .......................................................................................................................... 16
3.3 Target market .................................................................................................................................................. 16
3.3.1 Undifferentiated marketing strategy ............................................................................................................. 16
3.3.2 Concentrated marketing strategy ................................................................................................................. 17
3.4 Brand positioning ............................................................................................................................................ 17
3.5 Brand positioning in Malaysia and Bangladesh ............................................................................................... 17
3.5.1 Product strategy ........................................................................................................................................... 17
3.5.2 Price Strategy ............................................................................................................................................... 18
3.5.3 Promotion Strategy ...................................................................................................................................... 19
3.5.4 Advertising concept ...................................................................................................................................... 20
3.5.5 Promotional mix ........................................................................................................................................... 20
3.6 Place strategy ................................................................................................................................................. 20
3.7 Entry mode ...................................................................................................................................................... 21
3.7.1 Export to local agents ................................................................................................................................... 22
3.7.1 Agent agreements ........................................................................................................................................ 22
3.7.2 Export risk .................................................................................................................................................... 22
4. Concluding Remarks ......................................................................................................................................... 23
References ............................................................................................................................................................ 24
Appendix ............................................................................................................................................................... 27
1. Introduction
As a marketing manager of Agora Dairy Company based in UK, my project is about to
market 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 a
substitute 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 and
identify the opportunities there in order to market our company’s product. However, in the
first section of this report, I will analyse the industrial attractiveness of milk powder in two
selected countries using General Electric matrix. In the second section, a brief summary of
report will be given on the competitive structure, rivalry in the selected industries using the
PESTEL framework. Furthermore, in the last section, I will propose marketing mix strategies
for the chosen country based on the opportunities and threats found in part 1 and 2.
1.1 Country Selection method
Choosing 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 for
marketing the Agora powder milk (Paul, 2008:54) such as;
Present income of the country (per-capita)
Population rate
Growth rate in income and population
1.2 Bangladesh
With over 150,493,658 (150m) population, Bangladesh is located in South Asia. The country
has had several remarkable economical growths in the last decades despite frequent natural
and external shocks. The present income rate (GNI) of the country is $700 per capita (lower
income). From 1990 to 2010, the poverty rate declined from 57% to 31.5% which is an
indication of gradual development. According to Central Intelligence Agency, the population
growth rate of Bangladesh is now measured at 1.578% while the income growth rate of the
country is at good condition such as from 2010-2011 periods the rate increased by 6% and it
is expected that it will rise or remain same in 2012 (CIA, 2011).
1.3 Malaysia
Malaysia is one of the growing economic countries with over 29,179, 952 (30m) population
and located in South-eastern Asia (CIA, 2012). The present income rate (GNI) of the country
is $8,420 per capita (upper middle income) and it is expected that the income rate will
increase by 4% in 2012 (Worldbank, 2012: Tradineconomics: 2012). However, over the past
decades the population growth rate of Malaysia fluctuated between 1.6% -1.7% and it is
forecasted to remain same in the coming 2-3 years (Worldbank, 2012).
1.4 Industrial attractiveness assessment
In order to assess the opportunity for Agora dairy products in the selected countries, first the
definition 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 or
services with similar functions to essentially the same pool of customers”. In this term, my
focus is to analyse the opportunity and market attractiveness for our products in Bangladeshi
and Malaysian dairy industry. To analyse the opportunity in a particular industry, GE matrix
is very helpful for understanding the current business strengths and the market
attractiveness of the products or services in the particular industry (Proctor, 2000). However,
an overview of the analysis is revealed below;
Product Strength Analysis
Rating scale 1-9 (1=Extremely unattractive, 5=Industry average, 9= Extremely attractive
Milk Powder
Characteristics Weight Rating (1-5) Value
Quality 20% 9 1.8
Price 20% 9 1.8
Cost Base 20% 8 1.6
Brand Strength 20% 8 1.6
Profitability 20% 8 1.6
Total= (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) Value
Overall market size 20% 9 1.8
Projected market growth rate 20% 9 1.8
projected profit margin 15% 8 1.2
Global Opportunity 10% 8 0.8
Opportunity to Differentiate 5% 8 0.4
Regulatory Regime 5% 7 0.35
Demand Patterns 5% 9 0.45
Entry Barriers 5% 9 0.45
Distribution Structure 5% 7 0.35
Total= (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
Opportunity in Malaysia
Rating scale 1-9 (1=Extremely unattractive, 5=Industry average, 9= Extremely attractive
Dairy Industry
Characteristics Weight Rating (1-5) Value
Overall market size 20% 6 1.2
Projected market growth rate
20% 6 1.2
projected profit margin 15% 5 0.75
Global Opportunity 10% 5 0.5
Opportunity to Differentiate
5% 5 0.25
Regulatory Regime 5% 9 0.45
Demand Patterns 5% 8 0.4
Entry Barriers 5% 3 0.15
Distribution Structure 5% 9 0.45
Total= (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
GE Matrix
Ind
ust
ry A
ttra
ctiv
en
ess
Hig
h
9
Med
ium
6
Low
3
0 3 6 9
Low Medium High
Product Strengths
B= Bangladesh, M= Malaysia
Table 4: GE matrix grid, positioning the country according their market attractiveness level.
1.5 Key summary of analysis
According to the GE matrix grid it can be seen that, Agora powder milk have potential
opportunity in both Bangladesh and Malaysia but, ranking-wise Bangladeshi market looks
more attractive than Malaysian market for the following reason;
According to the dairy industry of Bangladesh, the potential market for Agora powder milk is
very 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
producing only 2.686 million ton. Further 52 thousand ton milk is imported from aboard and
there is still shortage of 3.91 million ton. According to the growth rate of population in
Bangladesh, the potential market growth for milk consumers can be considered large and it
will also continue increasing in the future as the population rises (fao, 2012). Bangladesh
has high demand for the powder milk due the shortage of liquid milk production and the
country has revealed a green signal to the foreign companies by reducing the entry barriers
such as foreign investment in Bangladesh can be either 100% foreign owned or joint
ventures. Furthermore, the import tariff for milk powder is set at 20% which is also a good
indication for foreign products entry (fao, 2012).
However, with total 30 million populations Malaysia is average attractive market for Agora
powder milk. The country was heavily reliant on imported milk powder due to a vast shortage
of production in liquid milk but now in the livestock sub-sector (milk production), they are
achieving high growth (Fao, 2012). In line with many developing South Asian countries they
are becoming more rigorous and strict on foreign investment whereas the entry barriers for
foreign 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 systems
although 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 sold
directly to the consumers. The Malaysian dairy industry is willing to import any source as
long as the price is competitive and the quality is good.
2.1 Background
From the industrial analysis it is found that Agora powder milk have a sizable market in both
Bangladesh and Malaysia but, it is still unknown that what is the present environment of the
country such as; how much suitable it is for Agora milk powder to enter in those selected
country? Who are the potential customers for Agora? What business policies the countries
have right now? What are the structures of the country? How much competition exists in
both countries?
However, to analyse the macro-environment PEST analysis is very useful to identify the
issues that create both business opportunity and threats in a host country (Meldrum and
McDonald, 2007). There are four key elements of a country are assessed through PEST
analysis, such as Political, Economical, Social and Technological (Meldrum and McDonald,
2007). An analysis of both countries’ condition is described below using the PESTEL
framework.
2.2 Political factors
According to Witcher and Chau (2010: 91), “political matters concern the influence that
government have on industries”. One of the major notable trends in political situation of
Malaysia is that the country is having a stable political environment compared to
Bangladesh. Due to conflicts between several political parties, Bangladeshi government is
facing difficulties to sustain stability in the country, and as a result several strikes and
protests are taken place by different parties (BBC, 2012). However, Bangladeshi
government is overcoming these barriers by implementing several rules and regulations and
acting on its best to reduce the intensity. In addition, Business in Bangladesh can be carried
out 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) is
comparatively 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 thus
a 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 Bangladesh
as seen on the report of World Trade Organisation (WTO) such as any foreign investment or
distribution service must be locally incorporated with 30% of equity reserved for bumiputera
(WTO, 2010). Although Malaysian government is welcoming foreign products with good
quality but in reality the government is encouraging the foreign company only in the sector
where products are produced in low amount by Malaysia and also import taxes are relatively
high for those products (WTO, 2010).
2.3 Economical factors
Before entering into a country it is crucial to analyse the economical condition of the country
as depicted by Witcher and Chau (2010: 91) “economic factors concern the cost-related
matters 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. As
concluded by Marshall Cavendish Corporation (2009), “Since the federation of Malaysia
gained independence from Great Britain in 1957, there has been significant structural
change in the economy”. Malaysia is an upper middle income level country with a great
improvement of standard of living while it is the 30th largest economy in the world by
purchasing power parity (CIA, 2012). The current growth rate of Malaysian national income
is 4% which is 2% less than Bangladesh. Although, Bangladesh is a less developing country
than Malaysia, comparatively it has satisfactory history of economical progression since
1996. The economic growth of the country increased by 6% every year accordingly from
1996-2011 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 force
which is a green signal for any foreign company that wants to distribute or market their
products using the Bangladeshi labours.
2.4 Social Factors
According to Henry (2008), “Social factors include cultural changes within the environment
and are often referred to as socio-cultural” and it includes demographics, education, culture,
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 ranking
and most of its people are Muslim. It is seen from the CIA report that most of its population
are between 15-64 years (61% of the whole population) while between 1-14 years are the
second largest group (34.3%) and the rest of the people are the elder generation. A major
concern about the country is a significant percentage of the people live in the rural area
while 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 but
there has been a significant change in the trends since there is a rising concern of quality
and safety as the population is receiving more education than before. Furthermore, a
growing health consciousness is also driving the people towards quality products while the
media/TV channel plays a great role to fill the gap between concern and demand (such as
people concern about the product they are using and they see advertisement on the TV
about a better product thus it becomes their new demand). However, according to the major
trends in the consumer behaviour in Bangladesh it is seen that foreign products like US and
UK brands have a positive image among the consumers and they are not attached to a
single brand while it changes as they find a better product, which is a great opportunity for
Agora milk powder. On the other hand, there are significant structural and cultural changes
seen in Malaysia while from every sector they are developing faster. Malaysia has a
multicultural and multiracial population consisting of Malays, Chinese, Indians and numerous
indigenous peoples (CIA, 2012). As a result of an outstanding literacy rate in Malaysia, the
country has a growing concern for health and environmental issues and there is also a great
need of high quality products. Competition is high within the country whereas, the powder
milk market is heavily dominated by Nestle Malaysia, Dumex Malaysia, Dutch baby milk
industries, New Zealand milk products (Ibp, 2010). The major trends seen in powder milk
buying behaviour is that halal products have a high preference (Halal is something that is
purely processed with maintaining the standard set by Muslim religion) while 60% of the
population are Muslim (Mida, 2012: CIA, 2012). Furthermore, poverty is reduced at a
satisfactory 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 the
distinction can be seen above. Considering the factors it can be argued that Agora milk
powder need to be presented in different ways in the selected countries because there is a
large gap between the countries according to their development speed and purchasing
power parity.
2.5 Technological factors
According to William and Green (2007), “technological factors involve changes in technology
and advances in the process of production”. As compared to Malaysia, Bangladesh has not
been much developed in the technological sectors, for instance; Malaysia is on the way to a
successful 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 have
access to media and television (Thedailystar, 2012), while the percentage of internet, mobile
phone users in Bangladesh is rapidly increasing. This is an indication that advertisement
thorough TV channel and online can reach a significant numbers of people in Bangladesh.
2.6 Summary of the analysis
From the PEST analysis it is seen that both countries have opportunity and threats for agora
milk powder. Compared to Bangladesh, Malaysia is more industrialised and fast developing
country which creates several entry barriers to foreign companies. On the other hand,
Bangladesh is less industrialised and less stable country which creates opportunities for
foreign companies whereas the entry barriers are relatively low. In this stage, the product
marketing strategies for Agora powder milk need to be very sensitive and carefully
considered so that the company can survive in those market (Proctor, 2000).
3.1 International Marketing Strategy
A strong global marketing strategy combines a broader analysis of segmentation, targeting
and positioning (Kleindl, 2007).
3.2 Segmentation
According to Stone (2007), “Segmentation involves and analysis of the nature and
composition of a market to identify groups of potential buyers who have similar needs or
characteristics, or display similar behaviour”. In this term, the segmentation for Bangladesh
and Malaysia are as follows;
Segmentation variables and breakdown for Bangladeshi and Malaysian market of Powder milk
Main Dimension Variables Breakdowns (Bangladesh) Breakdowns (Malaysia)
Geographic Segmentation
Region Emphasis on Major Cities and Metropolitan
area Nationwide
Density Urban Everywhere
Climate All (east, west) All (east, west)
Demographic Segmentation
Age 6-60 years old 6-60 years old
Gender male and female male and female
Income all above 1500$ all above 1500$
Occupation Housewives, Bachelors, student, officials Housewives, Bachelors, student, officials
Education Elementary 4th grade, High school and above Elementary 4th grade, High school and
above
Race Bangladeshi Malay, Chinese, Indians and others
Psychographic Segmentation
Personality Brand conscious, inclined for differentiation, health conscious and quick maturation with
foreign product
Brand conscious, inclined for differentiation and looking value for money product
Lifestyle Most of them are dependent on the head of the family (father/husband). Not very open
society like western freedom of choice, cultural
Behavioural Segmentation
Benefit Sought
communication benefit- communication benefit-
Nutritional information on Bengali and English language
Nutritional information on Malay, English, Chinese and Indian language
information text of the origin of product information text of the origin of the product
functional benefit- Functional Benefit-
healthier than liquid milk easy to use
easy to process healthy, quick disposable
Perceptual benefit- Perceptual Benefit-
good quality, competitive price good quality, competitive price
UK brand, good looking UK brand, good looking, standard size
Usage Rate Occasional (religious, cultural, officials), daily
basis, weekly basis Occasional (religious, cultural, officials), daily
basis, weekly basis
User Status Non-user, regular user Non-user, regular user
Loyalty Status none, medium, strong none, medium, strong
Table 5: market segmentation for Agora milk powder in Bangladesh and Malaysia
3.2.1 Evaluation of segmentation
As it seen on the table, the market segment in Bangladesh is different to Malaysia thus will
require different marketing strategies for each country (Havaldar, 2005), because the
structure and competition within the countries are different to each other.
3.3 Target market
Targeting the potential market is consisted of the willingness of the marketer such as how
many 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 adopt
concentrated marketing strategy for Bangladesh on the basis of geographic segmentation
this is because the purchasing power of the urban people is considered higher and for a UK
brand 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 the
transportation 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 marketing
strategy whereas the market will be considered as combination of all segments (Cant et al.,
2009)
3.3.1 Undifferentiated marketing strategy
With an undifferentiated marketing strategy the business choose to ignore the difference in
the market (Cant et al., 2009). As it is found in the analysis part that Malaysia is a high
economical growth country with satisfactory level of educated people, thus it can be
assumed that the residents are aware of the brand image and quality of the products around
them. In this regard a carefully designed product for mass market can be considered at the
initially stage of entry.
3.3.2 Concentrated marketing strategy
According to Havaldar (2005), “concentrated marketing focuses all the marketing efforts on a
single or relatively few, carefully defined segment (s)” in this term, the marketing strategy for
Bangladesh will focus on the consumers based on the geographic areas such as the people
who live in major cities.
3.4 Brand positioning
Brand or product position is the crucial part of marketing such as product is designed and
positioned 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 its
products to be perceived by the target customers on important attributes or benefits”.
However, product positioning strategy in Bangladesh and Malaysia includes the following
steps;
3.5 Brand positioning in Malaysia and Bangladesh
Agora milk powder has several objectives to achieve in Malaysian and Bangladeshi market
from which the major objectives are; creating strong consumer awareness towards a new
UK brand powder milk, to establish wide brand recognition through the capture of market
shares in the powder milk industry and become the market penetrator in the particular
segment through continuous advertisement and promotion. However, to achieve the
objectives the following steps are crucial to success (Cant et al., 2009);
3.5.1 Product strategy
As in Malaysia the product will be for mass market a careful design of the product is very
essential in this stage. In contrast, agora milk powder in Bangladeshi market needs to be
very presentable as it will be only available in the city area. The core function of Agora milk
powder is to satisfy the needs of the consumers as a substitute of liquid milk. Thus for
Malaysian and Bangladeshi consumers the product will be designed according to the
following chart;
Product Strategy in Malaysia and Bangladesh
Packaging and labelling easy to open and close, agora milk powder label, plastic box
easy to open and close, agora milk powder label, plastic box
Branding colourful but moderately, aspects of quality, square shaped, agora milk powder logo with modern font
colourful but moderately, aspects of quality, square shaped, agora milk powder logo with modern font
Trade name Agora milk Powder™ , an UK product Agora milk Powder™ , an UK product
Brand personality high physical growth, energy, quick disposal, quality
high physical growth, energy, quick disposal, high quality, substitute of liquid milk
Language Arabic, Chinese, Indian, English and Malay English, Arabic and Bengali
Nutritional information calcium, mineral, GDA and so on calcium, mineral, GDA and so on
Product class Foods→ Dairy products→ Milk→ Powder milk Foods→ Dairy products→ Milk→ Powder milk
Table 6: Product Strategy in Bangladesh and Malaysia.
3.5.2 Price Strategy
The appropriate price for product is demanded by all levels of customers. For a competitive
market like Malaysia the pricing strategy must be effective and sensitive otherwise the long
term growth will not be achieved (Paley, 2006). In this term, Agora milk powder will initially
follow the current market leader like Dumex Malaysia, Nestle Malaysia to give a choice to
the potential consumers who perceive foreign products have high quality than local. This
strategy 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 low
prices or following the market leader”. In contrast, pricing strategy for Bangladesh will be
penetrating the market through slightly lowering the price than local market. This strategy is
suitable for entering into Bangladeshi market whereas it will drive customers from two points
such as low price versus foreign product.
3.5.3 Promotion Strategy
According to Lawrence et al., (2008) “promotion is the most exciting part of the marketing
mix which covers personal selling, advertising, public relations and sales promotion”. It is
found in the analysis part that the culture, economy, structure, belief, idea, shared views vary
in the selected countries so the promotion strategy will also vary as the same strategy
cannot be viable for two countries (Paley, 2006).
Promotion Strategy for Malaysia and Bangladesh
Objective To create awareness among the milk consumers about the launch of UK brand powder milk
Bangladesh Malaysia
Message "Agora milk powder is for all aged people and has been processed through highest standard of quality checks in UK"
" high quality product, price local but brand global"
Concept "choose the right product for healthy life" "give pure milk to your family" "every day healthy day"
"think different" "smart people judge the difference"
Media Selection
TV Chanel BTV, ATN Bangla, Channel i, Desh TV etc.
TV Chanel TV3, NTV7, 8TV, TV9 etc.
Radio Chanel
Radio Foorti, Radio today, Radio Amar
Radio Chanel
Klasik Nasional FM, One FM, Capital FM
Magazine National, Food related, Occasional
Magazine National, Food related, Occasional
Internet Facebook marketing, banners on food related website official website: www.agoramilk.com
Internet Facebook marketing, banners on food related website official website: www.agoramilk.com
Outdoors Banner on the bus stand Outdoors Banner on the bus stand
Billboard, large screen tv on the street
Billboard, large screen TV on the street
Table 7: Promotion Strategy in Bangladesh and Malaysia
Different types of media will be selected on the basis that the new generation’s consumers
are not attached to a single media as their media preference is broadening day by day such
as there are about 2.8 million users of facebook in Bangladesh and 11 million in Malaysia
(socialbakers, 2012).
3.5.4 Advertising concept
The product presentation into consumers mind is a crucial part of brand positioning such as
how 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 and
poor quality products, health awareness related advertisement, different use of milk powder
and so on. In contrast, for a mass market like Malaysia the product advertisement can
combine continuous advertisement through big celebrities, renowned face. The advertising
activities can also include arranging quiz show, talk show, cooking program on the television.
3.5.5 Promotional mix
During a product launch it is very crucial to add promotional mix so that the consumers can
be driven towards the product (Lawrence et al., 2008). It is argued that promotion of
consumer products has great impact on the developing countries and it drives sales
(Havaldar, 2006), so that promotional activities in Bangladesh can combine giving spoon
free with each packet, collecting six stickers from the package and getting one free and so
on.
3.6 Place strategy
Agora milk powder will be distributed through shopping complex, super shop, and large size
confectionaries in the major cities (Dhaka, Chittagong, Barisal, and Shylet) of Bangladesh. In
Malaysia the product will be available in the super shops, medium sized confectionaries
located nationwide.
3.7 Entry mode
According to Jones (2009:8), “international market entry modes refer to the methods of
business organisation employed by companies to enter international markets for the purpose
of undertaking value-creating activities”. However, there are four effective entry modes
available to Agora milk powder such as; Indirect exporting via export management
companies, Direct exporting via foreign distributors and sales agents, licensing and joint
ventures. Licensing and joint venture is suitable for the company who wants to produce the
product abroad (Jones, 2009), while at the initial stage Agora milk powder will keep its
manufacturing and production process in UK and choose to directly export the product to the
local agents in Malaysia and Bangladesh. The benefits of distributing the product through
local 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.
3.7.1 Export to local agents
In this stage the sales representative team will visit the market in the selected countries and
choose the agents on the basis of their expertise. The agents will be given the exclusivity so
that the concentration can be given on only Agora milk powder thus they will represent
Agora milk powder in the foreign country on behalf of the company. Furthermore, this
strategy will be beneficial for Agora milk powder as there can be greater control over the
marketing mix (Andexer, 2008). However, there some export related problem exist such as
which need to be taken into account before exporting the product into foreign market such
as;
3.7.1 Agent agreements
The agreement between exporter and agents are crucial to success (Andexer, 2008). In this
stage, the agreements will be clearly stated using legal documentary and the issues will be
stated like; the commission rate, pricing strategy, promotional activities, liabilities of both
parties, payment terms, agreement period, exclusivity, clear descriptions of products,
intellectual property and so on (Andexer, 2008).
3.7.2 Export risk
There are certain export risk exist such as logistical, financial, political, exchange rate and so
on. “The quality of trade logistics, particularly port logistics, has an enormous impact on
trade” (UN, 2012). In analysis part, it found that the Malaysia have good structure overall
such as the port infrastructure and transportation process is as a satisfactory level while
Bangladesh have a less favourable structure. In this stage, the careful consideration for
exporting 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 Remarks
An attempt has been made in this study to analyse the potential market of Agora milk
powder in two selected countries (Malysia and Bangladesh) and to offer the product in terms
of opportunities and threats found in the selected countries. The major notable trends found
in the analysis that both countries have certain level of risk and opportunities for foreign
company such as in Bangladesh the opportunities for foreign product is high whereas the
infrastructure of the country is relatively poor. In contrast, the opportunities for foreign
product are comparatively low in Malaysia whereas the infrastructure of the country is ideal
for doing business. However, considering the threats and opportunities two different
marketing strategies have been adopted so that each strategy suits the market in terms of
the consumer behaviour of the countries. In this way, Agora powder milk can position itself in
the selected country to achieve a long term growth.
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Appendix:
CIA at a glance
The Central Intelligence Agency (CIA) is an independent US Government agency
responsible for providing national security intelligence to senior US policymakers. CIA is
mostly renowned because it holds the overall Geographic, demographic, economic, Defence
information of every country thus it is a very reliable source of data bank.
World Bank at a Glance
Established in 1944, the World Bank is headquartered in Washington, D. C. and have more
than 9000 employees in more than 100 offices worldwide. In general sense Worldbank is not
a bank like others but a unique organisation with the aim of reducing poverty and supporting
development. Worldbank is also considered as a valid and reliable source of data about
different countries while most of the data are updated constantly.