Professional Documents
Culture Documents
Global Marketing Culture and Ethics
Global Marketing Culture and Ethics
Global Marketing Culture and Ethics
Table of Contents
1.0 Executive summary..........................................................................................................2
2.0 Introduction...................................................................................................................... 3
2.1 Going global objectives....................................................................................................3
3.0 Analysis and Findings.......................................................................................................4
3.1 PESTLE Analysis.............................................................................................................4
3.2 Porter’s five forces............................................................................................................6
4.0 Cultural analysis...............................................................................................................7
4.1 Hofstede Dimensions.......................................................................................................8
4.1.1 Power distance.......................................................................................................... 8
4.1.2 Individualism/collectivism...........................................................................................8
4.1.3 Masculinity/ Femininity...............................................................................................9
4.1.4 Uncertainty avoidance...............................................................................................9
5.0 Market selection strategy..................................................................................................9
5.1 Market Segment......................................................................................................... 10
5.2 Targeting strategies....................................................................................................10
5.2.1 Micromarketing strategy...........................................................................................10
5.3 Positioning.................................................................................................................. 10
6.0 Mode of entry................................................................................................................. 11
6.1 Franchise (partnership/strategic alliances)..................................................................11
7.0 Recommendations and implementations : 7ps Marketing Mix........................................12
7.1 Product....................................................................................................................... 12
7.2 Place........................................................................................................................... 13
7.3 Price........................................................................................................................... 13
7.4 Promotion................................................................................................................... 13
7.5 People........................................................................................................................ 14
7.6 Process....................................................................................................................... 14
7.7 Physical evidence.......................................................................................................15
8.0 Conclusion...................................................................................................................... 16
8.1 Risks and controls.......................................................................................................16
References........................................................................................................................... 17
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2.0 Introduction
Figure 1 shows the logo of Marrybrown a Malaysian halal local fast food restaurant, serving
fried chicken and burgers as their main standardized menu but also local Malaysian dishes
such as satay and nasi lemak. The fast food restaurant started in 1981 by founder Nancy
Liew in Johor Baru, Malaysia. The fast food restaurant operates over 130 outlets across
Malaysia and globally it operates over 350 outlets across Asia and Africa (Hamid , 2009).
Marrybrown’s mission is to “serve high value, variety and quality food menu”. Marrybrown
offers its customers overseas the local Malaysian dishes but also adapts to the local dishes
within the host countries. The main key on the company’s expansion is achieved by a
franchise model. (Hamid , 2009) and ( Hau, et al., 2019).
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According to table 1, the political/legal factors of Albania and Malaysia are both different and
it shows moving from home to host country would include huge political risks. The home
country showed favourable political/legal factors that included political stability, tax incentives
and capital allowances for SMEs. However the host country showed the opposite whereby it
included local content laws that require 45% of host country resources to be included in the
final product and complex tax systems that require foreign businesses to pay taxes 44 times.
The social factors of home and host country are similar in terms of religion and culture. This
can be a competitive advantage for Marrybrown entering into a new market that has a similar
consumer profile and also has a stable economy. However, the technology and
environmental factors are different when compared between the home and host country
therefore Marrybrown should be prepared to face the risks.
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According to table 2 the threat of new entry for Marrybrown is medium because Marrybrown
has more experience entering new markets globally and hence costs may not be a
challenge. The bargaining power of customers is high because when prices of Marrybrown
and other competitors are compared Marrybrown charges higher prices than its competitors
who charge lower prices for example McDonalds (Cost to travel , 2019). The threat of
substitutes is high because Albania has a variety of restaurants, that offer different menus
from Marrybown and are relatively affordable and of good quality. The industry rivalry is high
because of competition, lack of product differentiation and available substitutes which lowers
customer loyalty. However Marrybrown can differentiate its menus from other competitors by
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offering Malaysian local cuisines if it meets the consumer tastes preference. Finally, the
bargaining power of suppliers is neutral because Albania has excessive supply of livestock
and meat. However, Competitors such as McDonalds build partnerships with suppliers to
offer more of their services to them. Furthermore food safety and quality control still need
more improvement in the country.
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100
90
80
70
50
36
26
20
Albania Malaysia
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is still working on improving its institutional reforms such as human rights which has
contributed in affecting people’s behaviour causing them to accept authority and hierarchies
in even organisations ( Vajjhala & Strang , 2014). However, in Malaysia the high power
distance is caused by the country’s custom and norms that stresses younger people should
follow and abide by the leadership of the elderly people or individuals with high status (Sian,
et al., 2010).
4.1.2 Individualism/collectivism
According to figure 2, Albania and Malaysia are both collectivist countries with a lower
individualism index of 20 and 26. Albania is known to be a collectivist country because of its
form of socialisation that can be found in families. Albanian families have strong ties with
other family members and not just their immediate families which is also similar to that of the
Malaysian culture. The strong family ties in Albania shows a great importance of how
families transmit and nurture basic values of individuals. However, Malaysia is also a
collectivist’ culture due to the general eastern orientation that exemplifies living in harmony
with others (Sian, et al., 2010) and (Gjuraj, 2013)
According to figure 2, Malaysia is a country with low uncertainty avoidance index of 36. This
is because of their political, social and economic factors which has influenced the society’s
majority from different ethnic backgrounds such as Malays, Chinese and Indians to accept
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and come into terms with their legal positions in the country. In addition, 65% of the
population are Muslims and hence Malays usually resigned to entrust their life to fate or
being ordained by Allah (Sian, et al., 2010).
According to table 4, Marrybrown will expand its market through the discussed sub
segments because the sub segments characteristics are similar to the home country
consumer profile and the different characteristics can be adapted through a localisation
strategy.
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5.3 Positioning
Marrybrown is a fast food chain that aims to expand the concept of something different
experiences and has emphasized on serving halal products and targeting millions of families
worldwide ( Hau, et al., 2019).
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significant regulatory and competitive challenges. However, to enter into a strategic alliance
partnership Marrybrown will have to choose the right partner and look for a partner that has
the same vision in order to achieve the business goals (Gillespie, et al., 2015). In return,
having a local partner will also provide access to factors mentioned below in table 6. These
factors can also work to block new competitors from entering the market.
However, offering the local Malaysia cuisines in Albania might not be effective because
Albanians prefer to eat meals such as rice and vegetables at home and therefore spend very
little on such products. Foods such as meats and nuts are preferred when eating outside
home as shown in figure 3.Therefore, to attract the Albanian consumers Marrybrown should
consider product adaptation by modifying their products with preferred ingredients such as
olives, nuts and seeds while maintaining their signature product (Llanaj, et al., 2018) and
(Vignali, 2001).
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7.2 Place
Fast urbanization in Albania has caused people to move from rural to urban areas. The
lifestyle of Albanians in the city is to frequently eat outside home similar to that of the home
country Malaysia. Albania has high competition and a high market coverage of fast food
outlets in the city. Hence, Marrybrown will need effective distribution channels. To achieve
this Marrybrown can choose a geographic location that is in the centre of the city and can
spread their presences to other different locations by using billboards to show their existence
(Tan, 2014) and (Llanaj, et al., 2018).
Furthermore, Marrybrown can use the internet platforms to have a place online and show
their existence to their target consumer before increasing more outlets in Albania. Therefore,
the product will be able to reach a high number of customers with low entry barriers (Singh,
2012).
7.3 Price
Albania is a country with high uncertainty avoidance whereby consumers tend to avoid
ambiguous situations and they tend to seek for more information before making purchasing
decisions in order to minimize or avoid losses. Different from the Home country Malaysia
where consumers are likely to take risks ( Swoboda & Hirschmann , 2017).
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Hence, Marrybrown can implement its pricing strategies by adapting to the local
environment. This can be achieved by using price differentiation. Price differentiation is when
a company sets a price that is appropriate for local conditions. Currently, Albanians spend
an average of 33.1 LEK in fast food which is equivalent to 0.25 Euros and this is due to
competition in the fast food industry. Therefore, Marrybrown should also consider pricing its
products by looking at its competitors. This is effective because the consumers would
perceive the prices to be acceptable and hence will be willing to pay (Llanaj, et al., 2018)
and (Hollensen, 2014).
7.4 Promotion
Brand and reputation are important in high power distance cultures like Albania and
Malaysia. Therefore, Marrybrown has to localise its marketing communications due to
differences in language and sociocultural ( Swoboda & Hirschmann , 2017).
Marrybrown can advertise its products in Albania’s local language by using social media and
even billboards to obtain new consumers and improve the company’s image. However,
Marrybrown should ensure their advertisements are well translated to the Albanian culture to
properly delivery its message across. Furthermore, Marrybrown can implement celebrity
endorsement advertisements by using local celebrities to convince and change the minds of
the consumer (Singh, 2012). Marrybrown can also promote its brand and gain good
reputation through experimental marketing. Experimental marketing is a form of marketing
that help consumers experience the brand on a two way communication (Same & Larimo,
2012). This will benefit Marrybrown because consumers are having feelings of distrust and
insecurity especially on meat and livestock products in Albania (Vercuni , et al., 2016).
7.5 People
Albania is a masculinity cultural society and prefers success, achievement and rewards
similar to the home country Malaysia. Therefore, Marrybrown should hire local recruiters that
understand both the company, local culture and laws ( Swoboda & Hirschmann , 2017).
Marrybrown can hire local employees because the employees will share common values
and customs with that of their customers. Furthermore, to align with the Albania’s culture
Marrybrown should train the employees in the local Albania language and also use the right
motivation theories due to cultural preferences such as Herzberg theory to motivate the
employees. The Herzberg motivation theory is a theory that investigates what the employees
want from their jobs and it involves elements of rewards and achievement for success
(Ukandu & Ukpere , 2011) and ( Hau, et al., 2019).
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7.6 Process
Albania is a high power distance country and reputation is important. For a restaurant to gain
good reputation they have to provide superior service quality and processes to satisfy the
consumers ( Kanyan, et al., 2016).
Albanian culture accepts authority and workers expect to be told what to do ( Swoboda &
Hirschmann , 2017). Having a supervisor in such an environment will be able to improve the
operational performance and overcome the problem of poor service operations. The workers
will also need to be trained in local language to properly delivery the services quality that is
expected from them this includes services such as greeting customers, delivering correct
orders and for the cashier to generate bills effectively. Furthermore, a fast food environment
has multiple process from cooking, cleaning, getting orders and receiving payments.
Marrybrown can smooth the operations by providing self-services technologies such as iPad
order kiosk and mobile ordering to improve performance and contribute to better services
(Tice , 2012).
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8.0 Conclusion
To conclude this report has prepared a marketing plan for Marrybrown to expand in
Albania .However, Marrybrown is likely to face risks therefore as shown in table 7 are the
.risks and controls on how Marrybrown can overcome the risks
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