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Date: 10 11 2022

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Bakhresa Group (Azam) is an industrial conglomerate Headquartered in Tanzania, East Africa founded in
1975. It’s a multinational group that has over 2000 employees across Africa. It has 30 subsidiaries in a
total of which 11 are in Agro Processing & Grain Milling Food, 2 are in Beverages & Bakery, 4 in
Broadcasting & Media, 7 in Transport, Logistics & Energy,2 in Leisure & Hospitality, and 2 in FinTech.

It also has 15 divisions across Africa operating in 9 countries namely Tanzania, Malawi, Uganda, Zambia,
Kenya, Mozambique, Burundi, Rwanda, Zimbabwe, and South Africa. At it its core business, Bakhresa
Group specializes in production, trading, and service provision.

It produces Beverages such as Azam – Ukwaju, African Fruti – Orange, Azam Cola, and Uhai just to
mention a few. As well to the production of Beverages, it produces foods such as Paratha Chapati,
Ukwaju – Ice lolly, Azam Home Baking Flour, and Azam Ngano Bora. Apart from that, in Malawi, it
produces washing soap. Azam also provides services in media such as Azam sports 1, Azam sports 2, and
UTV.

Bakhresa does not operate in a Vacuum and it has many competitors such as The MultiChoice Group,
Coca-Cola Beverages Africa, Candlex, and RabProcessors Ltd.

Azam has Geographically segmented its market into regions, cities, and countries It has also segmented
its markets between businesses (B2B) through trading via its suppliers of their products like wholesalers.
And also, demographically varying from age i.e. children and adults, income, and religion. Finally,
behaviourally segmented such as end consumers.
 Question 1 25 Marks

(875 words)

Globalisation is concerned with the growing opening of borders internationally to facilitate a more rapid
movement of goods and services, capital, and know-how. Therefore, it is about the factors that increase the
links or interdependence between economies or nations.

Customer demand for goods and services from other countries.

The first thing to know is that countries do not produce all the goods and services they need. For this reason,
they have to engage in trade to acquire goods and services they lack. Therefore, this involves additional links
between two or more countries. For example, although Bakhresa group (Azam) has many production lines
across Africa they operate, still more there are products that are produced at its headquarters conglomerate
and shipped to those counties they do not have production lines. Like here in Malawi, we don’t grow wheat,
but Azam has managed to supply us with the demand for baking flour through export trading of this product.
So, the process of trade especially the moving of goods and services and agreeing on trade terms have
increased the links or interdependence between nations, hence contributing to globalisation.

The Significant technology, transport, and communications

Links between nations are enhanced by technology, transportation, and communication. For example, in
freight technology, if Azam has the advanced technology of moving goods and services faster, this can increase
the efficiency and hence more links between countries in moving goods and services. This can be witnessed
when Azam came into this fright business in August 2019 and one of its goals is to help “Corporates and
business people with professional and timely aviation services so that they can access one of the fastest
growing business hubs in East Africa” (Bakhresa Group). As well as the importance of telecommunication
technology including the internet whereby Azam has been able to communicate between B2B with its
suppliers and customers. This is due to the cheaper and more convenient of how these technologies brought
such as email, skype, and so on. Additionally, transportation and the physical interdependencies between
countries have brought about globalisation. This has been able to move goods and services physically to meet
supply and demand between these countries. A good example of Azam is the Said Salim Bakhresa & Company
Limited (SSB) which oversees the transport business known as Azam Transport.

Due to Containerisation, the ability to ship commodities over water at a lower cost, moving thousands of
goods, is one of the other elements causing globalisation. Thereby linking these countries as one and allowing
interdependency. Azam has been successful in using containerisation to move raw materials from suppliers
to its production facility across Africa as well as move huge ordered quantities to the final consumer.

Cost drivers

Production processes for the Bakhresa group are allocated in different countries for a number of reasons.
First, a multinational firm like Azam might have the desire to operate in Malawi to look for the cheaper labour
cost of highly skilled workers. Or it is that the production of one product for Azam can be allocated to different
countries by sharing things like designs. So, it means that with globalisation Azam can have workers doing one
task in one country and another set of workers doing another task which allow the interdependency or links
between countries. To add more, Azam might have the desire to operate in one of the countries it is operating
to look for cheaper raw materials. For example, Azam has been able to set up a production line in South Africa
where they grow wheat and in Malawi where there is large produce of maize. Finally, on this point cost drivers
could be related to setting up the cost itself and scattering the cost. Set-up costs may be high in one country
and cheap in another country. Azam might run the concept of spreading investment risks, as whether if a
business fails in Rwanda, it should countries in South Africa or Zambia.

Economic drivers

This could cover many areas such as unemployment levels as illustrated above. It can also be the inflation
rates whereby it can affect a firm like Azam in a positive or negative way. If the inflation is lower it makes
consumers have more purchasing power because of the increase in disposal income which will make Azam
boost its production of goods to meet the demand, however, it will make also it can make Azam unwilling to
participate in an economy where inflation is high as their lower sales in those countries. Trade in goods may
be affected by currency exchange rates. It makes sure that the exchange rate is stable, which promotes
international trade. Currency values are stable, shielding them from changes in the market. It attracts
companies like Azam to participate in direct foreign investment hence the link between those economies. This
has been witnessed in the past two months in Malawi where the exchange rates and scarcity of the US dollar
are not good economic investment factors, and a company like Azam would like to invest more in countries
like Zambia where there is economic stability.

Political drivers

This may be due to the governments of those countries having an impact on labour mobility. Along with
political pressure to lower trade barriers, which can increase links between participants in those organizations
such as NAFTA, COMESA, and SADC. It may even refer to a nation's political stability, as Azam would only wish
to invest in nations with peace and political stability in order to prevent losses.

Profit Maximisation

All in all, the overall purpose for Azam to operate across Africa is in pursuit of profit. From setting up different
strategic business units to trading these products Azam has managed to maximise profit in between these
businesses. As of to date Azam has made a turnover of about $300 million. This turnover can be facilitated
by cheaper costs in raw materials as well as economies of scale to the production of goods.
 Question 2 25 Marks

(875 words)

Here are the roles of marketing research and how Azam can obtain primary data

It helps to avoid risk in decision making

Without valuable information about the market in which Azam would like to expand, it can make Azam make
wrong assumptions. This can lead to a waste of investment money as a result of failure to research and many
marketing managers rely on the experience of another market to enter into a new market which can be a
disaster. So, to avoid poor decisions when it comes to going into international markets, Azam has to put
more resources to conduct research before making a final decision to enter the market. This in tells us that
decisions as to whether to enter an international market or not have to be researched well enough to avoid
time and associated risks of that market.

It helps identify opportunities in the market to pursue

Marketing research plays a crucial role when trying to identify the gap in the market Azam would like to
enter. Azam can go to explore or in-depth understand what are the requirements to enter into these
international markets for example in Botswana as well as its associated risks. Things like consumer tastes,
distribution channels and market concentration can be carried out at this stage. Moreover, it costs to operate
in these international markets such as import taxes and regulatory food bodies of that particular country.

It helps to analyse markets segments and select target markets

Marketing research must be carried out in order to separate various market categories into distinct market
subcategories. Azam can categorize global markets according to their needs, lifestyles, and demographic
information with the help of market research. In doing so, it will lead to finding areas that will bring more
profits to Azam, products that will best suit individuals and countries, as well as identifying marketing styles
that suit that particular market. This can be witnessed when Azam has been able to select its international
markets across Africa and categorise them according to the country’s needs and preferences. For example,
Bakhresa grain milling (Malawi) ltd specialises in flour milling as a staple food for Malawi.

It helps to identify major competitors and their market share

Marketing research helps to know how many players are in the market that you are about to enter as well
as their influence, strategies tactics for competitiveness. It can help us also to explore the untouched market
so as to come up with a product that best suits customers.
It helps with planning and implementing a marketing mix

A marketing mix is a tool that can help us deliver the ideal product at the ideal time and place for the ideal
cost. When introducing products to international markets, it can be useful to consider the customer
decisions you must make. Therefore, marketing research must be done to determine what these crucial
components require before considering joining a global market.

So, creating a successful product and service to meet customer needs, requires Azam to research these
customers’ preferences otherwise might end up creating an undesired product. Marketing research helps to
define a product in a way that encourages consumers to purchase it. For instance, Azam cannot offer a
product which contains pork to those countries that have strong Islamic beliefs. Marketing research can also
include finding out what branding, packaging and quality a particular market requires. This tells us that
marketing research for a product to suit the targeted market is important.

Another element is a place, whereby marketing research has to focus on how and where people will buy the
product. Things like finding out market coverage of the demand quantity of a product and its associated
costs in transportation of these products to international markets must be researched with in-depth
knowledge. So, the key point to research on to find out what distribution channel is most suitable for the
different products Azam our like to offer to international markets. For example, will it sell products directly
to customers or through wholesalers?

Conducting marketing research on the intended price of a product that one would like to offer to
international markets need careful examination. So Azam can go to explore what price strategy to use to
enter into international markets, whether coat leadership or differentiation of which all these require good
marketing research.

As well as the promotion of products to persuade customers to start buying a product. so, elements like
advertising PR and discounting strategies need to be researched so as to align them to fit the target audience.
Note that a promotional message might work for a particular target audience but not fit a certain audience
hence it is important to find information that best suits targeted customers.

How to obtain primary data

Depending on the sort of data they want to gather, Azam might choose between qualitative and quantitative
research methods. When gathering information about what people do, observation is an appropriate data
collection technique. Therefore, Azam can use a quantitative type of research if it wants to know the
frequency of actions, such as how repetitive customers are able to buy newly launched products in the global
market. Azam may also carry out planned or unstructured interviews to gather primary data. If Azam wishes
to learn what customers think about a product, this approach might be effective. It can help Azam in
decision-making whether to launch a product fully or to make changes to the product's development or
design.
 Question 3 25 Marks

(875 words)

Marketing risks

Azam can meet marketing risks such as low new product acceptance when assessing various entry methods
to the international market. This could be the result of consumers not knowing enough about a product or
not spending enough on advertising. Customers hesitate to purchase because they are unsure of the benefits.
This may have a significant negative impact on sales retention and as a result, increase there may be a risk of
a product being pulled from the market. Because of this, consumer research is necessary at the beginning to
guarantee the acceptability of a product so that it can fully launch it.

Azam can therefore decide to directly export a product as an entry into a global market, and as a result, they
may endorse a brand ambassador. When a brand ambassador for an Azam product, such as Azam-Ukwaju,
acts inappropriately, there may be marketing risks. In terms of marketing efforts, this may have a significant
effect. This is why it is crucial to clearly define performance expectations in terms of what is required of him
under the contract, which laws apply, and how disputes will be settled.

In other instances, if Azam opts to use Licensing as a mode of entry to the global market it has to assess the
associated risks with this type of entry. The risks associated with this type of entry is that Azam will likely lose
control over its product as a result, it increases the opportunities for intellectual property theft. So, to manage
risks such as these, Azam has just to avoid entering into agreements like these.

Compliance and conduct risks

Compliance risks can include dangers to a company's reputation that occur from breaking the law, a code of
conduct, or corporate standards of behaviour. Thus, Azam is exposed to compliance risks due to its failure to
comply with industry laws and regulations, internal standards, and recommended best practices. These risks
include legal consequences, penalties for illegal conduct., and material loss.

For example, if Azan opts to use Franchising as a mode of entry, there might be risks with this agreed company
that would like to operate on behalf of conglomerate Azam. The risk is that if this company does not follow
industry laws and regulations, internal standards, and recommended best practices, as a result, I can be
penalised and in doing so, this unsuccessful franchise might harm the conglomerate’s reputation. To control
this, Azam has to work on risk-reduction strategies and preventative measures as franchise service level
agreements must clearly stipulate who should be responsible in these scenarios.

Other compliance risks could include corrupt and illegal practices. Compliance and conduct risks can arise if
Azam did not follow proper procedures in direct foreign investment as an entry into a certain country for
example bribing government officials to bend laws. And as a remedy of control, Azam has just to avoid in such
dealings.
Operational risks

Environmental compliance risks relate to pollution and environmental harm brought on by business
operations. Therefore, if Azam intends to establish a production facility in Ethiopia through diffract foreign
investment, it must assess the hazards associated with its activities there, including the use of hazardous
chemicals, the storage of hazardous waste, and water contamination. As a result, in order to manage this,
Azam must incorporate sustainability into their business plans and give its staff the tools and training they
need to comply with environmental regulations.

Azam must abide by certain health and safety regulations according to the industry and country in which it
operating from. As a result, while Azam is operating in a certain country, non-compliance could result in the
risk of being penalised. For instance, if Azam does not follow this in Zambia it might penalised by The Factories
Act and the Occupational Health and Safety Act. On this one compliance with laws is the best control to
manage these risks.

Other operational risks could affect the physical assets of Azam such as vandalism, natural disasters, and
even civil unrest in the country in which Azam would like to operate. So, Azam better thinks twice to operate
in countries where there is civil unrest such as in the Democratic Republic of Congo (DRC) as foreign direct
investment, in turn, it might opt to direct export as a way to reduce risk.

Production risks

This is whereby Azam has to assess first the availability of resources in the country in which it would
operate. The other issue need evaluation is the supply chain interruption of these materials which poses the
risk of the frequent production process being compromised and, hence unable to meet demands. For
instance, while outsourcing, Azam could run into issues with service delivery, which might be behind or fall
short of expectations from that subcontractor. Security and confidentiality could be put at risk as Azam does
not have control over the subcontractor operations. There can lack adaptability in the contract in that can
be too rigid to allow for change. Azam may now utilise a subcontractor management plan (SMP) to set a
standard for pre-qualifying, evaluating, and choosing subcontractors in order to manage this risk. In doing
so, it acts as a safety measure to Azam so that it can closely monitor the subcontractor’s performance. And
also, in the service level agreement, there have to be clear stipulations as to what is expected of the
subcontractor to whom the burden should fall.
 Question 4 25 Marks

(875 words)

Customer relationship management

The Bakhresa Group can use technology to enhance how they create and handle consumer relationships.
Employees can create successful connections with the company's clientele, distribution partners, and
customers by providing them with customer information. Listening to client concerns, pursuing them, and
producing great follow-ups are all parts of customer relationship management. As a result, Azam must create
technology innovations that engage with unique consumer relationships in order to support global marketing
initiatives. For instance, if a customer calls the call centre with a problem, the customer support agent will be
able to see the customer's complaints and can therefore act promptly to resolve the issue. To ask if they are
satisfied with the information provided, the customer relationship system stores the interaction so it can be
recalled later.

Digital Marketing

Technology can help Azam in the marketing of products or services using digital technologies in its
international marketing efforts, mainly on the internet. Azam can save time and costs in advertising its
products as the internet is cheaper compared to other modes. Technology is also important because of its
flexibility, instant feedback, and maximum impact because of the 24/7 platform. Digital marketing covers a
wider spectrum as follows;

Social Media
Here Azam can use technology such as the internet, in its international marketing efforts as social networking
on different websites as a marketing tool. It can use for example websites such as Facebook, google Instagram,
and Snapchat to market its product such as Paratha Chapati and Azam cola.

Email marketing
It can also use email marketing as a way of communicating with its audience. Azam can push international
marketing efforts to reach a wider audience by use of email technology to promote content, and monthly
discounts of its products as well as to direct customers toward the business’s website such as
https://bakhresa.com/.

Web design
So, website technology can help to facilitate Azam’s achievement of its international marketing efforts as
people will be a bel to visit the website and explore what product Azam offer. As well as promote brand image
at a low cost especially because people will be able to see ads thereby prompting them to visit the website.
Television marketing

Azam can also make well-crafted television advertisements which give them a wider engagement scale that it
has with all types of audiences across the spectrum they wish to reach. Brands like Azam love TV because they
know it works and it has become a custom to the cost they pay.
Distribution and sales channel

In this situation, Azam can use technology to support its clients' transactions and inquiries to facilitate
international marketing efforts. Order lookups, order processing, creating the bill of landing, and
transportation rate searches are a few examples of these processes. The frequency of these interactions with
the system, as well as the pace at which the information is delivered, can range from many times per hour.
Users at this level often include operational staff members like order processing and transportation clerks.

E-commerce

The process of buying and selling goods and services using an electronic medium such as the internet can
have a significant impact in facilitating international marketing efforts. Azam can sell online with e-commerce
at international markets since it is available 24/7 thereby maximising contribution to marketing efforts. So, in
a model of B2C, Azam can sell online its product directly to customers. For instance, Azam can create an online
order platform for Paratha Chapati thereby a customer pays online as well as coordinates delivery options.
Technology can also facilitate international marketing through a model of B2B, whereby Azam can sell its
products to intermediate buyers such as wholesalers. Wholesalers are able to place orders in large quantities
as well as pay through online systems. However, the shortfall of e-commerce is the delivery of goods might
take some time and it requires initial setup costs for hardware and software. As well as security is a key
concern when it comes to e-commerce customers may be pronto identity theft, malware, and denial of
services.

Product development
AzamPay and AzamPesa are two products developed by the Bakhresa group in the FinTech sector as a result
of technology. Technology has made it possible for East African businesses to use AzamPay as a complete
online payment solution. Paying for products and services is made possible with AzamPesa for consumers.

Marketing research

Technology is crucial for conducting research to find information about a target market. As a result of the
widespread usage of electronic formats, researchers are better able to understand the content they are
looking for and quickly identify a strategy for approaching the explored market by designing a better product
that suits them. So, it aids in the discovery of necessary market segments in global marketplaces as well as
the gathering of all available data on consumer preferences, global demand patterns, and global market
trends in a comfort zone to meet these demands. Websites such as online platforms for communication and
collaboration including online sharing and online clouds, as well as online survey tools and social media, can
be used throughout the entire research process.

However, the unreliable audience of the data it represents is a drawback of using technology in marketing
research. This is so that businesses like Azam may gather data that is biased by using internet surveys, which
are always filled out by random people. Likewise, since it is challenging to sample, there will be no random
selection of the target audience. Additionally, there is a chance that decision-making will become too data-
driven and less what it is really facilitating international marketing.
Reference list

1. https://bakhresa.com/azampay-tanzania-limited/
2. https://bakhresa.com/azampesa-tanzania-limited/
3. https://bakhresa.com/said-salim-bakhresa-co-limited/
4.