Al-Jufair Food Industry LLC International Marketing Plan Report (Assessment)

Introduction

In the business arena, marketing incorporates the valuable and proficient organization as well as employment of human and financial capital. The idea behind proper use of capital is to meet the organizational goals and customer demands.

Marketing involves the formation, development and implementation of ideas. It also involves costing, advertising and circulation of products with the objective of realizing the organizational goals while ensuring the satisfaction of customer.

Inherently, marketing can be done domestically or internationally through the interaction with customers to develop relations that are valuable to both the customer and the company. Before advertising, companies use marketing to discover and categorize potential and target customers.

Al-Jufair Food Industry LLC, established in 1979 with a humble background, has attained business levels that allow for globalization. Currently, the company enjoys financial endowment.

There are business opportunities in existing and emerging markets outside locations where the company operates. Globalization presents opportunities for the company to expand globally.

Facilitated by migration and changing consumer tastes and preferences, there are business opportunities for the company in countries such as the Middle East, North Africa, Canada, USA and Europe.

Indeed, this is in considered based on the fact that the company largely operates in the Sultanate of Oman.

Domestic and international marketing

Domestic Marketing involves the advertising, distribution and eventual consumption of the products within a domestic (local) financial market. This mode of marketing contends with one set of rivalry and financial issues making it very expedient to execute.

Typically, language barriers do not face this mode of marketing. Collecting and construing information on domestic market tendencies and customer demands is cheaper, easier and quicker to perform than other strategies.

In turn, this helps the organization to timely decide and expand marketing approaches that are rather successful and resourceful. In local marketing, there are fewer risks and requires less monetary assets.

Apparently, domestic markets are not as expansive as international markets. In this view, many companies are targeting international and global markets (Emelda 2011, p. 1).

International Marketing involves the advertising and selling of products to customers in diverse countries. It offers a company the opportunity to create a wide consumer base. However, it is multifaceted and demands enormous monetary and human resources.

In fact, this is derived from the fact that each country has its individual set of regulations on trade. Every organization aiming to venture into business in a foreign land must be aware of these business regulations. Different countries also have different customer flavors and likings.

When formulating marketing tactics, the demands and requirements of diverse customers must be put into consideration and plans formulated accordingly. In contrast to domestic marketing, international marketing entails the application of extra effort and consumes a lot of time.

Further, it involves more risks than those experienced in the domestic markets. High risks originate from market uncertainties and unpredictability. The uncertainties necessitate proactive approaches and preparedness for any eventualities occurring due to sudden changes.

The international business environment calls for increased dedication levels if an organization is to be successful in the global markets (Emelda 2011, p. 1).

Why go International?

There is a wide range of rationales as to why organizations opt to expand their operations beyond their national borders.

Typically, the main objective is the expansion of business or organizational growth. The objective usually leads to diversification brought by expansion since the company has either to employ international workers or look for emerging or new markets in foreign countries.

Expansion

Companies that feel they have captured the domestic market or that the domestic market cannot expand further usually explore the international markets. International markets present companies with the opportunity for growth.

When companies introduce products to the international markets, the customer base is increased. There is also a significant increase in sales and revenue leading to additional profitability (Demand Media 2013, p. 1).

In the case of Al-Jufair Food Industry, the company currently dominates the Sultanate of Oman. The expansion of the company operations to the rest of the Gulf region and part of North Africa will ensure the increase in sales and profits.

Alternative labor and technology

Some organizations speculate internationally to look for substitute supply of labor. In fact, the main reason for seeking alternative labor is the benefits presented by cheap labor in diverse global locations such as India, Africa and China.

These locations present companies with lower-cost production. In locations such as China, international companies benefit from technology support and associated services that help sustain a competitive edge.

For Al-Jufair Food Industry, expanding into locations such as the UAE will ensure that the company benefits from technology available in the region. The labor is relatively low considering the high rate of immigration into the region by expatriates.

The expatriates are highly skilled and typically do not demand high salaries considering that they come from low-income economies.

Further, the law prohibits the existence or operation of any trade union. According to Wright (2010, p.20), this means that the employer has the opportunity to negotiate with the employee regarding salary packages without the interference of trade unions.

Substitute resources

It is common for companies to go international in order to find resources domestically unavailable. In other situations, these resources may be available but expensive to obtain in the local market.

For Al-Jufair Food Industry, this may be a reason to explore into North Africa given the availability of potatoes in the region.

Israel and the neighboring countries are a source of these raw materials in bulk. It is hence economical to produce the potato chips considering the combination of labor sources and resource availability.

New Ideas

Businesses that seek to broaden the horizons usually go international. By trading in products and services in different international locations, organizations diminish the exposure to probable financial and political volatility in a solitary location.

Additional, organizations seek new ideas in the international markets (Bellis, 2013). The broadening of the workforce is also achieved in the international market.

A workforce composed of diverse cultural and societal settings ensures the existence of new concepts that facilitate organization growth.

Entry Mode to International Markets

The presence of Ali Shaihani Group of Industries in the entire Gulf region is an important aspect for the Al-Jufair Food Industry management to consider. Ali Shaihani Group of Industries, the establishers of food and beverage business in the sultanate is the leader in the region.

The group created a brand in the entire gulf region as a trusted food and beverage producer and supplier. The group is also recognized internationally through the excellent beverages and snacks the group manufactures.

Indeed, this is an added advantage for Al-Jufair Food Industry that forms part of the group. It is hence easy for the company to enter other markets based on the positive publicity of the umbrella group.

The products by Al-Jufair Food Industry including Chips Oman, Sohar Chips, Salad Chips and Taha Chips are unique. The chili flavored Potato Chips, Chips Oman, are unique considering the distinctive preparation style, the flavors and additives.

Adoption of Marketing Mix

New markets require placing the correct product in the correct place, at the correct price and time (Mind Tools 2013, p. 1).

Al-Jufair Food Industry requires adopting a marketing mix that will attract target customers to its products. It is imperative for the company to observe the 4ps that define marketing mix.

Products

The products offered needs to meet the requirements of the target market. The largest population in the Middle East and North African countries is composed of Muslims.

The company should hence accustom itself to the eating habits of Muslims. For example, the company needs to avoid chips and products fried using pig fat.

Pricing

In the target markets, there are competitors who have set the price of beverages, foods and snacks. Once the company enters these markets, it is important that the price of its products reflect on the financial ability of the target customers.

However, the prices should reflect on the quality of the products while considering profitability. The prices should be neither too high nor too low (Bartlett, 2001).

Place

The company should ensure the products are within customers’ reach. It should place outlets in strategic locations such as shopping malls and busy streets. Besides, the corporation should also consider delivery services for customers with busy schedules (Bellis, 2013).

Promotion

Majority of the target customers are not aware of the company’s products. The company should ensure it advertises its products in the local dailies, television and radio. Additionally, the use of social media is contemporary effective in marketing.

Pricing strategy

To attract customers, the prices will be consistent with those of market competitors (Chowdry 2009, p. 1). However, the products will be of higher quality.

In order to keep the prices low, the company will print its own first-rate, modern and lucrative packages. This will be on large scale to enjoy economies of scale.

Product Standardization

Food and beverages are sensitive products with regard to consumer safety. Similar to the current preparation methods, raw materials of best quality will be used. The preparation will adhere to the correct methods. There will be the utilization of the appropriate equipment (EAS 2012, p.2).

The company will ensure that proper frying medium is used. The medium, fat or oil is critical since they contain antioxidants necessary for the protection of chips and fried foods.

The company will manufacture the packaging materials. The quality of the packaging will follow international standards.

Adaptation and Segmentation

The company will introduce products in quantities not offered by competitors in the current market. There will be smaller packages at low prices to attract consumers currently sidelined by prices. Different classes of consumers will have a product to match the class.

Brand Positioning Plan and Advertising Strategy

The entry into new markets is challenging for a brand that is not well known. The company will hence establish a branding strategy for the existing product alongside the products to be introduced in these markets. The company requires signing local celebrities in its advertising campaigns. It will also involve individuals and events the local consumer can identify with (Bartlett, 2001). Unconventional selling points will also be established to increase brand visibility such as cybercafés and railway stations.

External Environment Influences on Marketing Strategies in New Markets

External environments have a direct and significant impact on international marketing goals. These forces are typically uncontrollable.

However, it is possible to respond to them. These forces include competition, government policies, natural forces, social and cultural forces, demographic factors as well as technological changes (Bright 2012, p.1).

The presence of stiff competition influences the mode of advertising and promotion. It forces the company to increase the amount of financial resources directed towards neutralizing the effects.

Al-Jufair Food Industry is hence likely to incur extra costs when faced with competition in new markets even though competitors are unlikely to produce similar quality products.

Government policies will have an impact on Al-Jufair Food Industry strategies in the international markets. In seeking to operate in new markets, different laws and regulations different from those in the sultanate exist.

In recent years, countries in the Middle East started producing products such as pepper and tomato sauce. These countries may restrict Al-Jufair Food Industry from importing such products from the sultanate.

Demographic factors of the new market will influence the strategies the company will employ. Families in the target market are smaller leading to few prospective customers. The youth and children mainly consume the company products.

The company requires employing strategies that attracts adult customers to buy the products. Some consumers are also cautious about their health hence may avoid the company products (Hala Stock, 2013).

Marketing Strategies with Respect to Host Country

Product Strategy

In the new target markets, the company requires to position itself as fresh potato chips with an Oman quality and taste.

To capture the wide customer base, the company will introduce other flavors to meet the demands of all customers. The products will also require differentiating according to prices (Vaswani 2013, p. 25).

Process Strategy

The new markets demands that the company introduce distribution process that will facilitate delivery of the products to the clients on time. The current process require adjusting to ensure swift processing of orders placed by customers to help stay ahead of competition.

People Strategy

The customers in the new markets have completely new sets of traditions and languages. It is hence imperative for the company to employ local workers because they understand the cultures and traditions of the target market (Hala Stock, 2013).

“Think global while act local strategies”

Al-Jufair Food is successful in its domestic marketing. The strategies utilized are effective in ensuring the achievement of organizational goals. These strategies are also effective in the regional business operations. The company does not require the radical changing of these strategies.

However, the company needs to adjust the strategies to reflect international operations. Such changes include the packaging of the chips. The packaging should include packets that locals can identify with.

Such strategies may include images of local celebrities renowned to the youths and children while ensuring that the quality of packaging is not compromised and meet the international standards.

Conclusion

An organization that seeks to expand its operation beyond the local market must prepare a marketing plan. The marketing plan involves different elements to make the venture a success when properly executed and the unforeseeable independent valuables remain as predicted.

Apparently, the preparation of such a plan requires deeper understanding of the target market since different markets have different consumers, laws, competition and demographic factors. The business environments also differ from one country to another.

All factors that influence the operation of any business should be put into consideration for successful international marketing.

References

Bartlett, C. 2001, International expansion. Web.

Bellis, M. 2013, What is marketing. Web.

Bright, A. 2012, The six (6) external environmental forces that can influence your business. Web.

Chowdry, D. 2009, 4 marketing P’s. Web.

Demand Media 2013, Why do companies go international. Web.

EAS 2012, “Fried potato chips – specification,” CD-ARS, vol.852 no.2, pp.1-66E.

Emelda, M. 2011, Difference between domestic and international marketing. Web.

Hala Stock 2013, Al Jufair Food Industry LLC. Web.

Mind Tools 2013, The marketing mix and 4Ps. Web.

Vaswani, R. 2013, Wafer warfare. Web.

Wright, C. 2010, “What role for trade unions in future workplace relations?” Acas. London, UK.