Afrae Abdelhamid Zrira

Final Comprehensive Examination

International Marketing Instructor:
Dr Rami Khodier

Case 1
1. In light of the above mentioned, please explain the international marketing level of
involvement, Kellogg ’s choose and its relationship with the opportunities emerging due
to the drop in the United States market.

 CASE DEBREIFING

Kellogg’s has acquired almost 60% shares in Biscomisr, the company seeking to
expend their presence in the region of Middle east and Africa, Although to cover the
declining sales in the home country( US) as a consequence Egypt with its large
population and growing demand for biscuits what makes Egypt a valuable market in the
region.
On the other hand, BiscoMisr were doing a really great efforts in Egyptians territory
and beyond its borders, BiscoMisr was present in all the MEA region,15 country in the
Africa, it reached north America, Australia and Europe profiting from the opportunity in
the market by exporting Halal products to Muslims
 PROBLEM STATEMENT

In relation with the opportunities emerging due to the drop in the USA market, explain
the international marketing level of involvement the Kellogg’s chose.
 IDENTIFYING ALTERNATIVES:

According to the problem mentioned in the case study, Kellogg’s needed to expand
internationally to offset the decline that happened in 2008 and this only had three ways
to be done as mentioned below
Infrequent foreign marketing: through exporting to Egypt and the MEA region as the
market in the us was declining and there was a surplus in the production and once the
market in the us flourishes once again and the market in Egypt declines the company
-withdraw from the MEA region.

1- Regular foreign marketing: and this is through using Bisco Misr as a foreign
intermediary and using the production lines and sales force to help entering the
MEA market and this was the choice that Kellogg’s chose.
2- International marketing approach: and this is through approaching the strategic
market of Egypt through an environmental and cultural approach

 BEST ALTERNATIVE AND JUSTIFICATION

As known the stages of involvement in international marketing are five types Kellogg’s
choose to go international marketing a phase in which domestic companies have the
capacity to produce goods to sell abroad on persistent basis and have the possibility to
operate globally.
The sales remained declining in 2008 at US for Kellogg’s due to the financial crisis that
has been the most serious financial crisis since the Great Depression. Thus Kellogg’s
has to handle the situation, the decision they made is to enter the Egyptian market by
acquiring an important part in BscoMisr one of the leader
Company taking in consideration that their products are expended in more than region
and that will serve Kellogg’s to easily spread their product, as the consumer already
familiar and trust their product.

 IMPLEMENTATION OF THE BEST ALTERNATIVE:

Kellogg’s took a very smart step by acquiring a relevant part of BiscoMisr stocks r, but
it could be done other way the company could export the surplus or the unsold product
to the MEA region at first as regular foreign marketing they can test if their product will
be accepted in term of taste price and features if so the company need to enter the MEA
market with kellogg’s products
In my point of view the model approach is the one used by kellogg’s thus acquiring
customers takes time, effort, investment, patience and an incremental mindset to adapt
strategies, it's a go-to market strategy partner is the most valuable and undervalued
asset in the world.
In the other hand kellogg’s was facing a decline in the sales in the mother country so

their objective was face value, there's acquisition for the sake of gaining

customers, vendors, talent andtrust so they can mitigate the risk.

The acquisition also gives kellogg’s access to a successful and refined fulfillment
operation
BiscoMisr is an excellent strategic fit for Kellogg, and Egypt is a growing market with a
strong economy," said John Bryant, Chairman and CEO,

2. How should the new formed investment adjust and adapt their international
distribution system and how should they choose the best alternative for their planned
expansion in the MEA region.

 CASE DEBREIFING:

By buying the relevant stocks from BiscoMisr, that represents an important

investment for kellogg’s and a new reform for their structure, adaptation and
adjustment are required for the international distribution system that represent
delivery of material right from manufacturing, to distributors to the end customer.

 PROBLEM STATEMENT:

Adapting and adjusting the international distribution system and choosing the best
alternative for the expansion in the MEA region.

 IDENTIFY ALTERNATIVES

In practice, such involvement throughout the channel process is not always pratical
or cost effective, consequently, selection of channel members and effective controls
are high priorities in establishing the distribution process. For sure the company
wants to control or be directly involved in the process through the various channel
members to the final user.
 BEST ALTERNATIVE AND JUSTIFICATION

The possible alternatives for kellogg’s is via importers to the foreign retailer without
foreign agent or merchant wholesaler’s intervention view that In the last 20 years in
Egypt the distribution pattern has changed in term of size so kelloggs will deal with
big merchandiser without need for wholesales, accordingly to properly master this
strategy will have to operate with the 6 C’s of channel strategy In forging the overall
channel-of distribution strategy, each of the six Cs must be considered in building an
economical, effective distribution organization within the long-range channel policies
of the company.

 IMPLEMENTATION OF THE ALTERNATIVE:

To implement the right alternative I decided to use the 6 Cs :

cost is capital or investment cost of developing the channel and the continuing cost
of maintaining it the company has to assure that the cost will give me the opportunity
to be competitor in the market,

capital requirement Maximum investment usually required when a company

establishes it's own internal channels or it's own sales force. The use of distributors
may lessen the capital investment, but manufacturers often have to provide initial
inventories on consignment, loans, floor plans or other arrangements in our case
over coming and by passing some levels as wholesalers.

Control The more involved a company is with the distribution, the more control they
exert. The company decision may affect control over the channels,

coverage May be assessed by geographic segments, market segments, or both.

Difficult to extend in highly developed market because of the high competition, and
in sparse markets because of inadequate channels and that it’s seen in our case
kellogg’s covering almost all Egypt as BiscoMisr holds around 7% market share of
the Egyptian biscuits market means kellogg’s will own an important market share.
Character The channel of distribution system selected must fit with the character of
 the company and the market in which it is doing business. Some product
requirements relate to the perishability or bulk of the product, complexity of the sale,
sales service required, and value of the product, Although the company has a great
brand and character with the retail and I high synergy, last and not least

Continuity kellogg’s has to consider sign long term contract Channels of distribution
often pose a longevity problem and that’s suits the company.

By making the alternatives chosen with the actions proposed kellogg’s will spread
engage an important market share in the region of MEA taking in advantage the
strategies cited in the last paragraph

Case 2
1. Okhtain think of themselves as a growing global business. Please explain how you see
their approach to their international marketing and advise them regarding how to apply
environmental adaptation. Do you think that Hofstede cultural dimensions may get handy
to serve their strategic goals, as mentioned in the case?

 CASE DEBREIFING

Okhtein it’s a luxury fashion accessory Egyptian brand, a family business, they have for
object redefining the luxury fashion industry by making elegant delicate handbags from
leather although putting quality Egyptian brass craftsmanship as cultural touch although
they made for a particular customer or user for the perfect or typical quality or class
braeking the tradition of ready to go.

With a high standard and quality, the Okhtein products are present in several countries
Spain Italy France UK to UEA Bahrain and the united saoudit arabi. Focusing on the
quality Okhtein doing a constructive work in retailing in Egypt as beyond the borders in
the last several years the online buying started to boost.

 PROBLEM STATEMENT:
Okhtein think of themselves as a growing global business, they need to apply
environmental adaptations, they might need to apply Hofstede cultural dimensions to
serve their strategic goals

 IDENTIFYING ALTERNATIVES:

Okhtein taking the easy path for going international, using the Regular foreign market
approach by exporting their product passing by importers to foreign retailers to end up
in department stores or boutiques retailing only friendly countries without taking the risk
exploring emerging markets. By making their products available in luxurious department
stores as example Harrods giving the brand a privilege and targeting specific
population.

 BEST ALTERNATIVE AND JUSTIFICATION:

Possible adaptations for Okhtein first can be in the product while targeting the host
country Okhtein may need to inspire some details from the host country as they used
Egyptian brass craftsmanship in the home country aiming that Egyptians were and still
gifting it, as it represents a value for them. They have to be clever and adapt their
products to every region they are entering. taking in consideration the difference of
cultures as in country gold they may considerate as metal thus the company has to
determine which cultural factors conflict with an innovation, next is to change those
factors from obstacles to acceptance into stimulants for change. And avoiding
ethnocentrism being attuned to the culture so that a new culture can be viewed
objectively evaluated and appreciated. Hofstede cultural Hofstede’s Cultural
Dimensions Theory, developed by Geert Hofstede, is a framework used to understand
the differences in culture across countries and to discern the ways that business is done
across different cultures. In other words, the framework is used to distinguish between
different national cultures, the dimensions of culture, and assess their impact on
a business setting.
The power distance index considers the extent to which inequality and power are
tolerated. In this dimension, inequality and power are viewed from the viewpoint of the
followers – the lower level. Low power distance index indicates that a culture
encourages organizational structures that are flat and feature decentralized decision-
making responsibility, participative style of management, and place emphasis on power
distribution.

So this index could majorly help Okhtein deciding in which country is low power
distance to go throw and export in it.

The uncertainty avoidance index considers the extent to which uncertainty and
ambiguity are tolerated. This dimension considers how unknown situations and
unexpected events are dealt with.

A high uncertainty avoidance index indicates a low tolerance for uncertainty, ambiguity,
and risk-taking. The unknown is minimized through strict rules, regulations, etc. also this
index can help Okhtein to avoid countries with unexpected events leading to instability
in the market.
2. Given the spread of COVID-19 pandemic how do you think retail friendly brand and the
brand connection strategy may need some amendments to help Okhtein expand further
internationally

 CASE DEBREFING:

The Abdel Raouf sisters have had a lot of success with their brand so far, selling not
only in Egypt but also in the UAE, Riyadh, Bahrain, London, and Paris. All of this
success is due to Egypt's positive retail boom. Egypt has always been a retail-friendly
country, but the reason for such a boom in the retail market is the online shopping boom
that began in the last few years.

 PROBLEM STATEMENT:

What changes do the sisters need to make in order to achieve their aim, given the
dilemma of the Covid-19 pandemic spreading and their desire to expand internationally?

 IDENTIFYING ALTERNATIVES:

To reach this goal, Okhtein must choose from a variety of options and aspects in order
to develop their , such as:
 1- Quality by shifting to targeted markets and increasing customer knowledge of the
brand, which will cause the customer to redefine the product's quality, which is
one of the criteria used to make a purchase, as the customer defines quality in
two dimensions (market perceived quality and performance quality).
2- Tactical considerations when planning for social media and the internet.

 BEST ALTERNATIVE AND JUSTIFICATION:

Okhtein are doing a great efforts in term of brand connection strategy as mentioned in
the case the company arrange from time to other night parties or as they named it
“ Okhtein nights” the main goal behind those nights or events is getting people to see
the process of how the products are made and obviously to shape a connection with
their customers. Although the sisters mentioned they partnered with Venture lifestyle for
the main and only reason to enhance the connection with customer, Okhtein has Varity
of alternative:

Although the pandemic is causing major challenges for companies, the strategic issues
faced four months ago have not disappeared. Nothing, in my opinion, is better than the
use of the internet and social media to expand internationally and even domestically
during the Covid-19 pandemic, so the sisters, in my opinion, need to pay more attention
to the tactical considerations while using social media and internet planning in addition
to the use of the internet in marketing and promoting the pandemic.

 IMPLEMENTATION OF THE BEST ALTERNATIVE:

1- .Okhtein has to enhance their presence in social media, since everybody has
access to social media, by appointing someone to be in charge of administering
and monitoring social media press and news, as well as advertising and
promotion for new items.
2- The use of promotions on other media and platforms, such as YouTube,
Souq.com, Jumia.com, Alibaba, and other websites and platforms with a fashion
sector, as well as retailer websites and their own websites, in addition to
fashion- related blogs.