International Marketing in the of Brazil, France and Malaysia - Case Study Example

International marketing; the case of Brazil, France and Malaysia a) Malaysia -Computer chips Malaysia is a world’s renowned computer chips exporting country. This industry has flourished alongside the electronics industry replacing the textile industry which previously dominated the exports. The Inforworld Magazine lists the country as the leading exporter in computer chips and hard drives. Major international computer chip manufacturers such as IBM, Hitachi and Intel have established their factories in the country. The success of the individual brands such as Intel has popularised Malaysia as a country where quality computer chips are made. There is a common belief in the manufacturing sector globally that Asia is the best location for establishing labour intensive factories because of low cost labour which is results in low priced products. Europe has been exposed to low cost alternative products from China, Malaysia and the rest of Asia. Such stereotyping of Asia-manufactured products favours Malaysia in its marketing efforts as a computer chip manufacturing destination. Again, Asians especially from the Tiger economies are displayed as workaholics thus promising manufacturers high individual performance from employees. To develop this industry, the marketers have to plan target attracting other players in the industry and possibly woe them into establishing factories there. In such a case, the advertising message should highlight the experience of the country’s workforce in the industry and also the government factors that support the industry (Albaum & Duerr 2008). Availability of raw materials is another factor that should be highlighted in the marketing message. The suitability of such a message should compel players based in other countries to set up plants in Malaysia. One of the world famous brands, Hitachi moved its computer chip manufacturing plant from Japan to Malaysia (Inforworld). This fact should form a basis for the marketing team. The idea of data safety and computer durability should be heightened. The country’s radioactive waste material disposal should also be highlighted to capture the attention of environmentally conscious consumers. As the world moves towards green production, the issue of technological gadgets and their disposal has attracted more attention as the debate on the proper methods for disposal of radioactive elements gains momentum. On the other hand, the industry is light and does not require heavy machinery but rather highly skilled manpower. Therefore, the message should capture he concept of simplifying the workload same way as computers. However, given that computer chips are usable in many gadgets, the idea of simplicity is far reaching. Below is a sample poster to advertise the industry. b) Brazil- Coffee Brazil is the world’s largest coffee producer and exporter but is better known as a football-crazy nation. The country exports its coffee to the US, UK, Germany, France and other countries around the world. The coffee is exported under two broad categories; ground- roasted coffee and instant coffee (soluble coffee). As of 2005, Brazil controlled 32% of the world coffee produced while it dominated 28% o the coffee exports in the world (De Azevedo, Chaddad & Farina 2004). The international coffees industry is however dominated by international coffee processing companies hence the marketing of coffee by many producers such as Brazil is conducted by these companies. Kraft Foods and Sara Lee which are based in the US dominate the Brazilian domestic coffee market. There are 160 firms involved in exporting Brazilin coffee with the government playing a facilitating role through the Brazilian Coffee Exporter Council (CeCafé) (Promar Intl, 2010). These marketers have altered the packaging/bagging and containerization of the exports in a bid to lower costs and be more competitive in the global market. Brazilian coffee farmers are stereotyped as proponents of child labour and bad employers. Large-scale farms in Brazil are portrayed as ones that rely of child labour in their farms. To market Brazilian coffee, there is need to dispel such negative stereotype images of Brazilian coffee farmers. Countries which have attracted negative criticism over the manner of production, government policies, political stability etc loose a lot in marketing their products in the international market. However, other issues such as the level of value addition on raw material may force marketers to ignore the concept of country of origin in their marketing endeavours (Albaum & Duerr 2008). This is the case with instant-coffee marketers who concentrate on the quality concept in their marketing messages other than country of origin. A number of international marketing experts recommend different strategies in international marketing. Phillips et al (1994) argues that concentrating export marketing is more economical and effective than covering a large market. He writes that many companies are interested in the size of their international presence by the number of countries that they serve with their products rather than the volume to individual markets. Kurtz et al (2009) says that the scope of the market determines a multinational company’s approach to marketing which are basically two; global strategy and a multi-domestic strategy. A global strategy involves using a consistent marketing mix that serves all the markets while a multi-domestic strategy uses a different or customised marketing mix for each market. As a marketer of coffee, Brazilian exporters should use a global strategy which relies heavily on the country of origin as a marketing factor. Morgan et al (2004) observe that the national image in international marketing is very important. He notes the case of Columbian coffee in the US. He says that the Chicago Tribune reported that ain 19965, 53% of coffee consumers in the US correctly recognised the Columbian coffee logo with the product. Brazil should adapt this strategy by developing a general brand name or logo for its coffee. Morgan et al (2004) add that Even when a country does not consciously manage its name as a brand, people still have mages of countries that can be activated by simply voicing the name. Country images are likely to influence people’s decisions related to purchasing, investing, changing residence or travelling (p. 42). The author also warns that stereotypes may also promote or hinder international marketing efforts. c) France- Aircraft France is well known for its robust aircraft manufacturing industry which is the largest in Europe. The country is home to a number of aircraft manufacturing multinational companies. The aerospace industry exported over $46.7 billion worth of equipments in 2007 alone which decreased significantly in 2009 due to the global recession in 2009 to stand at $44.7 billion. The industry employs around 132,000 people according to 2007 estimates. The industry is dominated by the European Aeronautic and Defense and Space Company (EADS). The company is a grouping of a number of aerospace manufacturers in Europe with Airbus, which is originally a French company dominating production. The company manufactures and exports civilian and military crafts, communications systems, missiles, space rockets, satellites, and related systems. Other players in the industry are Dassault, Safran, Eurocopter, Arianespace and Thales. Some of the recent leading export products from the industry are Airbus A380 and Dassault Falcon 7X (Aerospace valley 2008). The Airbus brand is a brand ambassador for France through it is a joint venture of France, UK, Germany and Spain. The brand has maintained a good performance and safety record for a long time which is critical factors in the aircraft manufacturing industry. Due to the resultant popularity of France as an aircraft manufacturing hub owing to its technological resources, other foreign based aircraft makers have established plants in the country. Common ones are the Brazilian based Embraer, Finmeccanica, Goodrich, Honeywell and Rockwell Collins (Aerospace valley 2008). Yonnopoulos (2010) notes that the experience of the marketer in exporting allows him to exploit markets better than sporadic and seasonal exporters. He argues that some manufacturers only export to get rid of excess inventory. Players in France’s aircraft manufacturing industry have been in the business for long to serve the market adequately. The aircraft manufacturing industry, especially the military category is subject to ethical concerns and global political concerns. Players in France are ethically obliged to steer away from selling their weapons to countries at war. Marketers of France should be aware of the stereotyping of the French people on the global platform. There are a number of stereotypes about the French people especially about their dislike for Americans and non-French speakers in general. Such a stereotype does not help the marketing process and hence marketers should works towards dispelling that misplaced fear. This may require the marketing message to highlight the major social elements between the French people and the rest of the world. Air travel safety for one is a global concern hence should capture the entire market. Another method would be encouraging counter trade which Srinivasan (2005) notes ahs the potential to clear myths and falsehoods about countries which are critical in the international marketing process. This way the marketing message shall apply France as a destination for aero manufacturers in general. Players in this industry are best suited by participation in trade fairs to market their products. According to Monye (2000) and Onkvist and Shaw (2008) air shows have proved to be critical marketing opportunities for players in his industry. The German air show is one of most popular and firms such as Airbus and Boeing have benefited immensely from past shows. Such fairs attract the target market and allow the marketer to explain further and clarify on the quality of his products. The image below depicts the Airbus A380 which is Airbus’s most advanced passenger plane that combines high-tech safety features and has underlined the company’s dominance in the industry. References Aerospace valley (2008). Overview of Aerospace Valley of France. Retrieved online from, http://www.californiaspaceauthority.org/images/international-opps-images/France-Aerospace.pdf Albaum, G. & Duerr, E. (2008). International Marketing and Export Management. New York: Financial Times Prentice Hall De Azevedo, P. Chaddad, F. & Farina, E. (2004). The food industry in Brazil and the United States: the effects of the FTAA on trade and investment. New York: BID-INTAL France’s sector of excellence. (2008). Aerospace industry. Retrieved online from, http://www.invest-in-france.org/Medias/Publications/223/Aerospace%20Industry.pdf Kurtz, D., Mackenzie, H. & Snow, K. (2009). Contemporary Marketing. 2nd ed. London: Cengage Learning Morgan, N., Pritchard, A. & Pride, R. (2004). Destination branding: creating the unique destination proposition. 2nd ed. London: Butterworth-Heinemann. Monye, S. (2000). The handbook of international marketing communications. New York: Wiley- Blackwell Onkvisit, S. & Shaw, J. (2008). International marketing: strategy and theory. 2nd ed. London: Taylor & Francis Phillips, C., Doole, I. & Lowe, R. (1994). International marketing strategy: analysis, development, and implementation. Sydney: Routledge Sandberg, B. (2008). Managing and marketing radical innovations: marketing new technology. London: Routledge Srinivasan, P. (2005). International Marketing. 2nd ed. New Orleans: PHI Learning Pvt. Promar international (2001). Brazil coffee to 2010: Implications for global coffee players. Retrieved online from, www.promarinternational.com/.../Brazil%20coffee%20management%20summary.pdf Yannopoulos, P. (2010). “Factors Motivating Exports: The Canadian Evidence.” The Journal of International Management Studies, 5 (2), 82-88 Read More