Global Marketing Management BY MAYHEM Table of Contents Brand new Natal in Bangladesh Company's Profile: Natal is one of the largest and leading clothing retailers offering a comprehensive selection of quality fashion, homeward, ladies, men's and children's clothing and footwear in the I-J. The company has found in sass's by John Harvested. Natal also has an relationship with few designers and brands such as Jeff Banks, Calvin Klein and Farad according to Mantilla's website. Their main competitors are-Primary, Sad (George), Tests, Tax etc.
Natal has 200 stores across the I-J and continue o work with franchise partner in the middle east, opening 3 new stores in the current financial period, one in ABA Dhabi and second stores in Dublin and Jordan(Natal. Co. UK) Profit and sales: In this challenging economic downturn Natal delivered a robust performance and company's sales for the period were ,096. 5) a 1. 9% increase compared to the previous period, which is boosting result in the current climate. Operating profit, pre exceptional items, of EYE. 8(2011 :II 21. 0) was a 48. % decrease on the prior period hugely driven by the tough trading conditions and increased margin pressure. Company invested 17. Mm (2011 :22. Mm) and 4. Mm)2011 :9. 1 m) on Property, plant and equipment(PEP) and existing store portfolio and IT system respectively. The company is still forcing on IT and investing money on it. (natal. Co. UK) 1. Macro-environmental analysis of foreign market environment: Natal is a strong brand across the I-J. The company's pricing is very affordable appeals to all classes of citizens. It is also very challenging for Natal to go Bangladesh and launching a Brand new business.
Before Launching a business in Bangladesh PESTLE analysis is very necessary to take in to consideration. However Bangladesh is one of the Mantillas largest supplier and Natal can gain completive advantage to set a business in Bangladesh. By doing this the company can save shipments cost, taxes, and sell huge amount of cloths. Political and legal system: Taxation policy: Facts & figures: In Bangladesh, the Principal Direct Taxes are personal Income Taxes and Corporate Income taxes, and a value-added tax of 15% levied on all important consumer goods. The Tax Rate for characters is 25%.
For the 2011-12 tax year starting from 1 July, 2011 & ends on 30 June, 20112 the upper corporate rate was 45%. However, publicly eared companies registered in Bangladesh are charged a lower rate of 27. 5%. Banks, Financial Institutions and Insurance Companies are charged the 45% rate. All other companies are taxed at the 37. 5% rate. Justification: According to Bangladesh taxation policy it is clearly seen that vat, income taxes and corporate tax is 15% as a result company will make more profit and will be buoyed and encouraged by Bangladesh government who welcomes foreign Organization(like Natal) to set a new business.
Even though corporate tax has been increased recently, government can be flexible on that tax and attract more foreign investors cross the world. What is National Minimum wages in Bangladesh: Facts and figures: According to 'Labor' website the current minimum wage in the industry stands at 1662 take (El 5) per month. According to calculations of the Asia Floor Wage campaign, a realistic living wage for a family in Bangladesh is Just over 10. 000 take (EYE) per month. Unions had however indicated a readiness to, for the time being, accept a lower figure, in order to improve the chances of reaching a wage agreement in the garment industry.
Justification: The National Wage Board recommended an increase of the minimum wage to 3000 Bangladesh 'take' (EYE) which indicates some positive impacts on garments workers and encourage to engage within the garments industry as a results less risk factors are involved. According to media reports, the Bangladesh garment sector enjoyed record sales last month, with exports reaching a historic high in June of в?1. 3 ban of goods of exports and so companies like Natal can hit the Jackpot. Social factors analysis in Bangladesh Religions : Bangladesh is predominantly Muslim country 83% .
Most people are concerned about their wares. Although in the I-J the company sells short skirt, tight tinting clothing and lingerie items, selling such items openly is prohibited in Muslim country like Bangladesh. Justification: If company wants to accelerate their profit in Bangladesh they need to consider few factors as the country's populations comprises of Muslim and consequently they can focus on some clothing like Hajji for Muslim women's , Syllabi for men's and small male kids. Age distribution: According to (CIA. Gob) between 25-54 years 37. 2%(male 31 ,625,777) showing a large target market.
The large female contingent and significant male numbers mean that Natal have a huge opportunity to build on the success they are enjoying. Technological factors: According to William and Green(2007). "Technological factors involve changes in technology and advances in the process of production". Bangladesh has not been developed in technology like ASK, Bangladesh is more likely to rely on their labor forces according to Silliest,2000, however the good news is more than 70% in Bangladesh public have access to media and television(idealists,2012) and so brand awareness should be easy to achieve.
Electricity Problem and solution: Electricity is a major problem with Bangladesh having power cuts every on a daily basis. Natal will be affected by this problem as a result. The company has alternative solutions such as Generators, solar power etc which is cheaper and available in Bangladesh. Internet and mobile Users: Everywhere(including rural area) in Bangladesh you will find internet and mobile. Roughly 75% to 85% are covered my mobile network providers and recently 36 network has been introduced(alliance. Com).
Mantilla's "pick and click" has generated more money in the I-J and they can apply similar strategy in Bangladesh and will gain more completive advantage over their competitors. Ecological Factors: Lack of Corporate Social Responsibility (CARS) practices: The key exporting in Bangladesh is the Textile & Garment industry. When the world hear about Bangladesh it is often either issues related to flood & poverty or breach of CARS issues in the textile and garment Factories. Natal has to be proactive and practice CARS which is significant for any organizations given the public attention such issues receive today.
Occupational Health and safety: Bangladesh industry has been plagued by allegations of poor safety and security standards, which have resulted in several accidents in recent years causing death and permanent disabilities Justification: Natal needs to carefully consideration about CARS and health and fatty issues and put them into a practice. As a result they will play a part of social welfare and their creditability will increase and people will trust them and will be seen as an ethical company. 2.
Global marketing objectives for Natal in Bangladesh: Natal would be a brand new company in Bangladesh as a result they have to have an objective to achieve the goal in long run. In terms of gaining profit, Natal should have an objectives and that objective has to be SMART which stands for Specific, Measurable, Achievable, Realistic and Time frame. Mantilla's objectives would be focusing clothing and in future they can focus on hoes, sports ware etc. Three objectives For Natal in Bangladesh as follows: a.
Create Brand awareness: Brand awareness involved with potential customers and also associate with a certain product essentially stand out as a percentage of target market. It also indicates how Mantilla's primary goal of advertising in the early months or year off product's introduction. B. Increase market share: In 2016 company's sales target is mom BAT(Bangladesh take) and at an exchange rate of 121 take to the pound this is equivalent to EYE,OOH GAP and increase about 7% market share in 2018. C. Expansion & Stores opening: Expansion would be very important or Natal.
Initially company will concentrate on Dacha's two main area Attar and Goulash's Both are near to Dacha international airport(Mainly targeting upper and Middle class people). In 2019 company will expand three more branches across the Dacha Including Mirror, Diamonds, Elephant Road. Mantilla's corporate strategy : Insofar Matrix can be measured as part of a marketing audit. It gives management to access the strategic position of the firm and set objectives in advanced. The four components gives company to determine for long term growth.
EXISTING PRODUCTS NEW PRODUCTS EXISTING MARKET MARKET PENETRATION Not fit in Bangladesh) PRODUCTS DEVELOPMENT NEW MARKET MARKET DEVELOPMENT Natal is here in this box because Natal is a new company and launching in Bangladesh for the first time. Natal already has a supplier in Bangladesh. Market development is appropriate for Natal. DIVERSIFICATION Figure: INSOFAR MATRIX Market Development for Natal in Bangladesh and Justification: Market development always seeks to new market, existing products.
Natal customers are Upper middle class and Middle class who can effort to buy the products and also target to a different customer segment, which can gain more revenue for the organizations. The age distribution groups are between 20-35 and with Mantilla's Prime places being Attar and Goulash, both in the capital city Dacha, Natal can successfully target more colleges, universities students and lecturers, Bankers, Doctors and many more. According to Insofar Matrix Natal can hit their target and maintain a smooth strategy in the long term and can be seen as a successful Retailer in Bangladesh as they are in the I-J.
Business strategy for Natal to support launch a brand in new market: Reason for Cost Focus approach and Justification: For Bangladesh perspective cost adhering would not be an appropriate because there are huge macro investors who occupied domestic market in Bangladesh. Hence for Natal cost focus has been chosen rightly due to concentrated areas are Attar and Goulash in Dacha. Those people has been targeted because they are financially well off and would have disposable incomes to pay their daily needs and would additionally be able to spend on their luxury goods.
In the UK Natal might not be seen as loyal brand but in Bangladesh it would be a Loyal brand. So in this regard cost focus is appropriate. 3. Mantilla's foreign Market Entry Methods: There are six main entry methods that one may apply to enter in foreign market. According to Pulpwood (1993) suggests that before entering in foreign market there are six factors that's need to take in to account which are Speed ,Cost, Flexibility, Risk factor, Payback period, Long-term objectives.
Although acquisition is very popular and effective way to enter international market but the nature of acquisition allows enter very quickly and gain profit quickly which would not be the number one priority for Natal in Bangladesh. Accessing in PESTLE analysis in Bangladesh it is more effective way to take Joint venture) as many foreign direct investment company in Bangladesh has chosen Joint venture and in case of Natal this is also appropriate in Bangladesh to gain sustainability and to be seen as a profitable clothing retailer in Bangladesh.
Why Joint venture and Justification: I am going to prefer Joint venture because of the very nature of Joint venture. In Bangladesh garments industry is powerful after china (BBC. Co. UK) so Bangladesh market has got strength in producing clothing and Natal has great IT, managements style which can match together and build a sustainable partner based pong their expertise and quality. Who with Joint Venture and Justification of Donning): I am going to choose Aaron because in local consumers believe that they are the strongest brand for Dishes (local) handicraft including Nighthawks, Jamaican Patterns which remains Bangladesh craft heritage.
Their clothing is mixers with tradition with contemporary designs. On the other hand Natal has got completely different textures and design within their clothing range which will give two company a great competitive advantage in local market and two company combined name would be Natal & Aaron" (slogan would be "best traditional cloths blending with foreign .. ) Nature of Joint Ventures: tastes".. A Joint Venture) can be ideal for doing business in an overseas market, while Natal and Aaron will share start-up and operating risks and profits, a XV can be as profitable and successful as a wholly -owned subsidiary in Bangladesh.
Although it has got negative impacts and some business leader's perception is that XV will not be seen as profitable or easy to manage, research indicates that many companies have demonstrated that these adverse matters can be managed. ( Paul W. Beaming ,2010) 3. : Marketing tactics that will support Natal In Bangladesh applying up's: Based on PESTLE it is seen that product, price, promotion and place are most significant components to take in to consideration to approach globally. Source: Xerox. Mom,(2012) Global Marketing mix applications are Product, Place , promotion and place these components will play a role in Bangladesh and I will use these components and justify why I have chosen these. 1. Product Decision: Product selection is the core of a business in any country. In Bangladesh, As we described from PESTLE analysis indicated that 83% of the nations populations are Muslims so the business norm should be focused on Muslim style clothing, for Muslims people it is very important regarding their choice, although the nature of Muslims clothing's are covered and baggy, so Natal should pay attention to these regards.
For women, dresses should be loose fitting ( such as Burk, Ninja etc). Let's not forget that Bangladesh is very tropical country and officially they have 6 seasons because of adverse weather pattern. It is mostly Summer for some months and temperatures hit up to 40-45 degree , but there are months that are rainy with mild winters. So Natal main focus would be summer t-shirts, 100% cotton, suits, sports t-shirts etc. For men's and for women, cotton Salsas Zamia (long sleeves) , and consolidating with Aaron they may launch traditional dresses like Kurt, Punjabi a.
Branding Name: Branding name remain same and would be Natal and Aaron made in Bangladesh. B. Packaging and labeling: For packaging it is important that if company impose any picture on their labeling it has to be decent and no indecent pictures or any animal pictures would not be acceptable in Bangladesh because of religious issues. In addition, Bangladesh government banned plastic bags in Bangladesh for the concerns of environment and so Natal has to use echo-friendly bags such as paper bags or Jute bags.
On the labeling of cloths two languages will be relevant Bengali and English. C. Advertising: Advertising is key to any organization and to create awareness about the products and to reach out to the public and give a positive impression about Natal and Aaron. Internet growing at great speed in Bangladesh and most areas are covered by mobile operators and internet operators so it will be appropriate to advertise online and TV's. . Price skimming: Pricing strategies are significant role for the company because it depends on company's profit and market shares.
I am choosing penetration pricing because in Bangladesh people do not want to buy which are expensive although my targeted areas for Natal are financially well off people but by applying price penetration strategy, the company(Natal and Aaron )would gain more market shares and will reach their desire target in 2018. 3. Promotion: The objective of promotion tends to follow DRIPPED framework which means Differentiate, Remind, Inform, Persuade and Engage. There are several tools that Natal can choose and remain successful in Bangladesh.
Initially taking sponsorship tool will be very expensive for Natal but using this Natal will be seen a very successful high street retailer in Bangladesh. Cricket in Bangladesh is very famous and 95% people enjoy cricket doesn't matter what's happening in the country. Sponsoring in Bangladesh cricket teams clothing, equipment or even venues will be very beneficial and company will be known in a very effective way. People will want to buy the Jersey at any price and in that manner, hose people wearing that Jersey are advertising our company throughout the nation. . Place: The nature of targeted area( Attar and Goulash) makes it very easy to visit for consumers, for those two area and access for consumers would me maximum around 20-30 min off-peak period and 30-45 min peak period by public transport. Suppliers and garments factories are near to Attar region where in night time deliveries(from Zipper) are relatively quicker. Q. 4: Organization Implementation and planned marketing activities in Bangladesh(Natal) Definition of Implementation: Implementation is the carrying out planned marketing activities.
A strategy is useless unless it is implemented on the right place at the right time. However a strategy consists of three components which is time, people and money. Financial performance of Natal and Aaron marketing plan: Money, people and time are very important for Natal to consider and take these strategies to launch a brand new business in Bangladesh and Joint venture partner Aaron. Time: Natal and Aaron are marching their inaugural joint venture partner and that will launch by 2014.
Money/Financial Budget: Current economic adverse condition Natal delivered a robust performance. Against a very Hellenizing market and economic backdrop, Natal delivered a robust performance. Sales for the period were El,117. Mm (2011: El ,096. Mm), a 1. 9% increase compared to the previous period, which is very positive outcome in recent economic situations. (natal. Co. UK/balancing/ Report) . Financial highlights EBITDA of Oleo. Mm (2012: EYE. 1 m), up 10. 2% on last year total revenue of Ell 25. Mm (2012: El,117. Mm) Strong closing cash position of El 20. M (2012: EYE. Mm)[natal. Co. UK/financial/ report/2013] The business ended the year with El 20. Mm in cash. Company's strong cash position indicates that they geared their profit by EYE. M between 2013 and 2012. Meme profit can be invested in Bangladesh with Joint venture company Aaron to gain a huge market in Bangladesh and run their business smoothly. Expenditures: In terms of gaining marching with Joint venture with Arrange company needs to spend those money on these sections which are underlying bellows: 1 . To expand in Breaches in Mirror, Diamonds in 2016. 2.
To rent out leasing the property, electricity bills, generator bills, Staff and managers pay 3. To buy new software to upgrade any possible new it systems 4. To obtain markets via advertising including Social media, TV's and radios 5. To invest such as computers, IT development if any necessary Human resource Management or another word People: People are very important for the company because the employees has been seen as an assets and they will make things happen within the organizations. There are three approaches needs to consider for Natal to go Bangladesh and choose one of them.
To perform staffing function effectively, there are three main approaches within international business identified: the ethnocentric approach, the polytechnic approach, the geocentric approach (Dowling PC,Fisting M and Engle AD, 2008). Ethnocentric Management Approach: In Bangladesh Natal as to consider Ethnocentric management style because to introduce the brand new systems, work patterns, the nature of the business to lower level managements and employees. After few months later when company adopt with the systems then senior management people come back to the I-J.
Ethnocentric management approach gives two company a huge success for the long run. Local employees The venture needs to recruit locally for the organization because of the cultural differences which can affect the relationships involved. These delicate and sensitive issues can only be managed by employing local recruits. Embedded in that culture re also religious differences which need to be respected. Local employees will know their cultural norms, religions matters which are seen very significant for Natal.
Structure of an organizations: There are Four strategies that company often selects to support implementing as an effective manners. The attributes are as follows: Functional structure, Product Structure, Geographic, Matrix Taking functional Structure and Justified: Taking functional structure is very effective and in this manner company can share their activities (Such as Aaron can take care of marketing, finance, staffs and Natal can aka care of IT, Managements functions, HER etc) and excel their profit and reach their targeted goal.