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Market Analysis and Recommendations for the Manufacturing Company

Business Administration, University of the People

BUS 2207: Multinational Management

Learning Journal Unit 2

Philip Roger Seralde (Instructor)

February 12, 2024

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The objective of this report is to offer a comprehensive market analysis and

provide recommendations for the manufacturing company located in Nevada,
California. The company intends to launch its organic energy bar in the European
and South East Asian markets. The report will primarily focus on understanding
cultural disparities in business environments and ensuring appropriate conduct in
international business scenarios while respecting the diverse national cultures.
Additionally, Hofstede's Cultural Dimensions will be utilized to elucidate the
potential challenges and obstacles that the new manufacturer may encounter upon
entering these new markets (Kwiecień, 2021; Thach et al., 2021).

The European market is considered to be a well-established market that has

a strong inclination towards organic products. It is important to note that this
market is highly competitive, thus requiring the manufacturer to distinguish its
product from others. To effectively capture the attention of health-conscious
consumers, the manufacturer should emphasize the health benefits of its organic
energy bar. Additionally, the manufacturer needs to take into account the cultural
variations within the European market and accordingly customize its marketing
strategy. For instance, in Germany, consumers tend to be particularly price-
sensitive, while in France, they prioritize the quality of the product (Business Wire,
2019).

The Southeast Asian market is experiencing growth and has a strong desire
for organic products. Compared to the European market, it is less saturated,
allowing the manufacturer a chance to become a prominent player. To effectively
reach the target audience, emphasizing the health benefits of the organic energy bar
is recommended, particularly among health-conscious consumers. Additionally,
the manufacturer needs to acknowledge and adapt to the cultural differences in the
South East Asian market. For instance, Japanese consumers prioritize quality,
whereas Thailand consumers are more price-sensitive (SIS International, 2023).

Based on the market analysis, it would be advisable for the manufacturer to

prioritize the following recommendations.

Firstly, the manufacturer should develop a marketing strategy that highlights the
health benefits of its organic energy bar and aims to attract health-conscious
consumers (Kwiecień, 2021).
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Secondly, the manufacturer should distinguish its product from its competitors by
emphasizing its distinctive features (Kwiecień, 2021).

Additionally, tailoring its marketing strategy to accommodate the cultural

differences in the European and Southeast Asian markets (Kwiecień, 2021).

Moreover, seeking opportunities to collaborate with local distributors to expand its

market presence (Kwiecień, 2021).

Lastly, consider investing in market research to gain a comprehensive

understanding of the needs and preferences of consumers in the European and
South East Asian markets (Kwiecień, 2021).

Hofstede's Cultural Dimensions can help shed light on the potential

challenges or obstacles that the new manufacturer may encounter when venturing
into new markets (Thach et al., 2021).
Firstly, the Power Distance dimension is used to gauge the level of acceptance of
unequal power distribution within a society. In Europe, the Power Distance is
observed to be low, indicating that individuals are more inclined to question
authority and anticipate fair treatment. Conversely, Southeast Asia exhibits a high
power distance, suggesting that individuals in this region are more inclined to
accept unequal power distribution and show respect towards authority. Should the
new manufacturer fail to honor the local culture and authority, it may encounter
difficulties in Southeast Asia (Thach et al., 2021).
Additionally, the Individualism vs. Collectivism dimension examines how
individuals in a society prioritize their own goals compared to the goals of the
group. In Europe, there is a high level of Individualism, indicating that individuals
prioritize their own goals over group goals. Conversely, in Southeast Asia, there is
a strong emphasis on Collectivism, with individuals valuing group goals over their
own. Therefore, if the new manufacturer fails to prioritize group goals and show
respect for the local culture, they may encounter challenges in Southeast Asia
(Thach et al., 2021).
Moreover, the Masculinity vs. Femininity dimension assesses the degree to which
individuals in a society place importance on masculine values like competition and
accomplishment, as opposed to feminine values such as cooperation and quality of
life. In Europe, there is a lower emphasis on Masculinity, indicating that people
prioritize feminine values. Conversely, in South East Asia, there is a higher
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emphasis on Masculinity, indicating that people prioritize masculine values. The

new manufacturer may encounter difficulties in Southeast Asia if it fails to
prioritize masculine values and show respect for the local culture (Thach et al.,
2021).
Lastly, the Uncertainty Avoidance dimension assesses the level of tolerance
towards ambiguity and uncertainty within a society. It is observed that in Europe,
there is a low level of Uncertainty Avoidance, indicating that individuals in Europe
are more accepting of ambiguity and uncertainty. On the other hand, in Southeast
Asia, there is a high level of Uncertainty Avoidance, suggesting that individuals in
this region are less tolerant of ambiguity and uncertainty. Therefore, the new
manufacturer might encounter difficulties in Southeast Asia if it fails to provide
comprehensive and clear information about its product (Thach et al., 2021).

In conclusion, it would be advisable for the new manufacturer to take into

account the cultural differences in the European and Southeast Asian markets and
adapt its marketing strategy accordingly. Additionally, the manufacturer needs to
show respect towards the local culture and authority to prevent any potential issues
or obstacles when entering these new markets. By adhering to the suggestions
outlined in this report and utilizing Hofstede's Cultural Dimensions to gain an
understanding of the local culture, the new manufacturer can effectively introduce
its organic energy bar to both the European and Southeast Asian markets.

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References

Business Wire. (2019, May 02). Building Marketing Strategies For The European
Market/Infinite Research Reveals The Key Factors To Consider. Business
Wire.
https://www.businesswire.com/news/home/20190502005483/en/Building-
Marketing-Strategies-for-the-European-Market-Infiniti-Research-Reveals-
the-Key-Factors-to-Consider

Kwiecień, A. (2021, April 26). The biggest differences in trade in Europe and Asia
for retailers | Divante. Divante blog. https://www.divante.com/blog/how-
can-european-retailers-conquer-the-fast-growing-asian-markets

SIS International. (2023, April 26). Market Opportunity and Entry Strategy in
Southeast Asia | SIS International. SIS International Market Research.
https://www.sisinternational.com/market-opportunities-in-southeast-asia/

Thach, N.N., Ngan, T.H., Linh, N.T.X., & Nam, O.V. (2021). Reconsidering
Hofstede’s Cultural Dimensions: A Different View on South and Southeast
Asian Countries. In: Ngoc Thach, N., Kreinovich, V., Trung, N.D. (eds)
Data Science for Financial Econometrics. Studies in Computational
Intelligence, vol 898. Springer, Cham. https://doi.org/10.1007/978-3-030-
48853-6_21