Professional Documents
Culture Documents
International Marketing
Final Comprehensive Examination
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Case 1
Question 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 Debriefing
BiscoMisr the household brand of the confectionary market in Egypt was
established in 1957, and is a main provider of biscuits, cakes and seasonal products
to Egyptian and Global markets. Seasonal products cover the interior spectrum of
Kahk, Ghorayeba, Petefour. BiscoMisr has exported its confectionary products to
more than 15 African countries bolstered by the COMESA agreement, and has
reached almost all Arab countrie, and is still eyeing further growth.
Problem Statement:
Kellogg’s acquired 59.9% shares in BiscoMisr for $87m after private equity.
BiscoMisr the household brand of the confectionary market in Egypt the leading
Egyptian food manufacturer that has expansion plans in MEA region, Kellogg’s is
planning to use BiscoMisr as a vehicle to introduce its brands in Egypt and
potentially to the rest of the MEA region.
Alternatives:
- International Marketing.
As BiscoMisr has production capacity devoted to foreign markets along with
FTA between Egypt and 15 countries without barriers bolstered by the
COMESA agreement.
Kellogg’s acquired 59.9% shares in BiscoMisr for $87m after private equity
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Best Alternatives:
. I recommend that kellog’s implement a replacement international marketing
strategic level of involvement “International Marketing” as that level of
involvement develop the non-public relationship to other countries and also
increase brand loyalty.
International Marketing may be a best practice for kellogg’s to urge obviate
Ethnocentrism and that they can try this by making culture and environmental
adaptation. As kellogg’s is specializing in MEA region investment, they need to
plan future and adapt to local tastes. they're even have to regulate over the top
prices to stay the high market share with implementing Transfer Pricing Strategy.
For the distribution approach, kellogg’s can continue with MEA leading Local
distributor with payment plan without cash-in-advance base to be able to control
over end prices.
If the opportunities within the market meet the investment expectations, kellogg’s
needs to work on the merchandise platform, design function and features
3|8
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Question 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.
Problem Statement:
Kellogg’s has entered the MEA region
market with Indirect Exporting entry mode relying on the local distributors with
promotional support aligned with regular foreign marketing level of involvement.
There are also three international free trade agreements between Egypt and MEA
region that Kellogg’s may benefit from.
Alternatives:
- Exporting Market Entry Mode.
Kellogg’s can enter the MEA region with direct or indirect exportation.
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Implementation
To implement the joint venture agreement in MEA with a leading distributer, they
will have to choose a trusted business partner with a good reputation and large
number of distribution points in the market. The knowledge of cultural diversity
must encompass the total advertising project. The joint venture will be a very good
opportunity as there are more than three free trade agreements between Egypt and
MEA region without any barriers. Kellogg’s a can export high volume of products.
or
1- Preliminary analysis and screening of environmental factors of Host country
(Economic,political, legal, competitive, culture, structure of distribution)
2- Adapting marketing mix to target markets (product, price, promotion,
distribution)
3- Developing marketing plan
4- Implementation and control
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Case 2
Question 1
Okhtein 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 Debriefing
This case addresses the history, international marketing approach, global
expansion, positioning and the strategic goal of okhtein one of the most recognized
brands in the machine woven rug and carpet industry today. With a simple vision
the company became a leading worldwide exporter and by far the largest player in
the Egyptian market. The company’s diversified product mix related to residential
and commercial use include carpets, rugs and upholstery (gobelin). OKhtein
main export markets include North and South America, Europe, the Middle East,
Asia and Australia. It also addresses the impact of COVID-19 epidemic on the
Egyptian Market and the Egyptian government support for the industrial sector.
Problem Statement:
Okhtein international marketing strategic level of involvement is Global
Marketing as they treat world, including home market as one market and market
segmentation decisions no longer focused on national borders. Each country or
region is considered side by side with a variety of other segmentation variables.
Okhtein manufacturing the world’s most innovative and diversified rugs and
carpets that fit global cultures with transfer pricing strategy.
Alternatives:
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No Direct Foreign Marketing
As the products of Okhtein are well-known, trading companies, wholesalers,
distributes, websites from all over the world would deal with the their borther
Question 2
Given the spread of COVID-19 pandemic how you think retail friendly brand and
the brand connection strategy may need some amendments to help Okhtein expand
further internationally.
Problem Statement:
During COVID-19, worldwide quarantine, plenty of workers layoffs and possible
recession in
many countries, will affect the importing within the countries, this can affect the
exportation in Egypt
including
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The global effect of COVID-19 on the foreign environment and therefore the crisis
management decisions of okhtein to beat that global crisis. The Egyptian
government support for the economic sector in Egypt contains a positive impact on
okhtein performance.
Alternatives:
Strategic Alliances in different regions.
Making Strategic alliances with reputable local investors in different
regions to get more benefits and mitigate the risk of the economy
recession impact
Investing in online selling all over the world.
Investing with the top e-commerce and shopping websites in the world
covering all target markets that have potential.
Best Alternative
I recommend that okhtein invest in online selling to stay them market leaders and
as this is often way cheaper than having points of sales everywhere the planet and
can reduce the price and reach other segments of targeted customers. Signing
Agreements with all top e-commerce and shopping websites in like “Amazon,
ebay, etsy, overstock, zappos, rakuten, aliexpress and taobao”.
Implementation Recommended Alternative:
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