O International Marketing Strategies help Multinational Firms achieve competitive advantage?
I need both qualitative research and quantitative research ! please refer to my research proposal for the methodology I require!
a? Aims & Objectives -4
a? Literature Review–5
a? Project Planning–10
This article presents the finding of one of the worldas most well known and successful companies, and how they have used international marketing strategies to achieve competitive advantage around the globe. Before telling you about the international marketing strategies I would like to brief you a bit about business and management, and how it is related to my topic question. Business management main objective is to create wealth for the business owners by providing the consumers with some value or product which they need. This requires the business owners to research for new markets which can increase their profit and by developing strategies for operation management, marketing management, human resource management and operation management. Then implement these strategies by planning, organizing and control. International marketing being a part of business & management is simply the use of marketing principles across national boundaries which are usually known as globalization.
Globalization has been a positive aspect for the world and has given developing countries a chance to overcome the problems they had. Today, we see countries like China and India have a rapid growth and poverty reduction. Multinational companies have been a part of globalization and played a very important role. Companies like McDonalds, Unilever and many more have made the term a?Era of Globalizationa? possible. This has given third world countries much opportunity to improve their living standards, industry and economy although it does have some disadvantages. Multinational Companies are looking for quicker ways to globalize and have created certain strategies which help them to expand throughout the world.
AIMS & OBJECTIVES
1. The main objectives of this project are to assess to what extent Unilever has adapted to their strategies to meet the needs of the Pakistani market;
2. To determine the extent to which market adaption influences market success. The research concentrates on one overseas market: Pakistan.
Many MNCs such as Unilever, wanted to build a good market share in the Pakistani market while their competitors were weak and vulnerable; to rationalize and diversify local market risks; to exploit market liberalization and foreign investment rules and by adopting new technology to earn advantage from competitors. Pakistan being hit hard by the recession and from corruption within the country was facing difficult times. Inflation rate soared up to 16.5 this June, which left a lot of urban middle class people in Pakistan badly hurt by the recession. Unilever looking at the financial position of the Pakistani people introduced the sachets. Using an aggressive strategy for inexpensive products, and seeing that low income people canat afford to buy bottles of shampoo they replaced it by a sachet which was available to the consumer for 5 Rupees ($0.12). By using this strategy, Unilever sent a positive message to the consumers, telling them its sells affordable products available everywhere. This showed that products Unilever offered werenat just for the urban class but for the rural class too. Eventually, Unilever introduced cheaper brands of their products such as the mini size Lifebuoy soap and close-up tubes. Systematic price cutting strategies are also implemented for the Pakistani market. For example Sun silk Shampoo is being sold in plastic bags rather than bottles, Blue Brandas butter and margarine were being sold in bulk containers and Surf Excel was being sold in plastic bags rather than in boxes. Surf excel laundry detergent was being sold in different quantities, so that customers have a choice and wouldnat be hard on their pockets. (Refer Appendix A).
(Haley, U. C.V (2000d) a?the hair of the dog that bit you: successful market strategies in post-crisis South-East Asia a?Marketing Intelligence and Planning, vol.18, Issue 5, pp. 238 to 241)
Culture and Religion are the two most important factors in Pakistan, as R. Martenson (2000) argues that a?in markets where price is more important than culture, global marketing can flourish, whereas in others there is a need to alter the product to make it nearer to what the customer wantsa?. MNCas entering Pakistan are aware of severe cultural barrier and to overcome that barrier they try to alter their products but by doing so the cost rise. Martenson continues by arguing that when the cost rise a?the key to international success continues to lie on in convincing the customers that the total product offer-product, price, promotion and customer service delivers quality and value of moneya?. As many other companies, Unilever recognizes the importance of marketing and uses it effectively using some global and local touch in it. The best example would be the advertisement of Surf excel which emphasis that a?dirt is gooda? and a?every child has a righta? which gives it the global perspective but by adding the local touch in the advertisement Unilever has surely scored aces. The ad shows how an old woman is having problems keeping crows away from her crops and how her grandson helps her out by painting is dadas shirt and becoming a scarecrow. Another marketing strategy which Unilever has used in Pakistan is to use celebrities in their ads. Many pop music sensations like a?Call the banda? and a?Ali Noora? have endorsed for Unileveras Walls brand. Foods brand such as Knorr and Rafhan are shaped to meet the needs of religious customs and taste. Alterations are made to make sure that the products are a?Halala? and should meet the local taste. For example, Knooras noodles introduced many new flavours, such as a?Chaat Phata?(Spicy noddles) and a?Lemon Chillia? to target the Pakistani market.
(Miller,F.S, (1986) a?World Marketing: going global or acting local?a, Journal of consumer marketing, Volume 3, Issue 2, pp. 5-7 ; Emerald Group publishing(2009) a?The changing face of Unilever: out with the old and in with the newa, Strategic Direction, Vol 25, Issue 5, pp24-27)
Pakistan is home to 180.8 million people with 62.2 million people living below the poverty line. The country has been facing turmoil due to frequent suicide bombings and the corrupted government which has resulted into a lot tension in the country. Although trade and business are very well organized, the government and private sector are working on catching the attention of many multinational companies to invest in this potential market. To make that possible, the government of Pakistan offers a package of incentives including market liberalization, privatization and deregulation. Exemptions on import duties have also been allowed for machinery that is not manufactured locally. Franchising is one way to expand rapidly and without any investment. Franchising is a method to use somebody else business idea or brand. For example Cupola Group in Pakistan has the franchise of KFC in Pakistan and that allows him to import all the machinery needed to make the food without paying any duty to the custom authorities. Companies like Unilever, Proctor & Gamble, McDonalds, KFC and many more have recognized the potential of the Pakistani market and are making good profit. The things which have to be looked through for the internationaliz