Professional Documents
Culture Documents
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1. INTRODUCTION
2.1 INTRODUCTION
2.3 METHODOLOGY
3. TIMING
6. RECOMMENDATIONS
7. CONCLUSION
8. REFERENCES
INTRODUCTION Section 1
Introduction
The marketing research plan, with respect to assignment one obtainable with motive by
Gethafoam. Due to its magnetism of the bedding industry growth; Gethafoam has adopted a
market development plan to achieve sustainable growth in the next five years. Part of the strategy
is to develop into foreign market by looking beyond national boundaries for market opportunities
overseas. Thus, the company has selected the following countries Nigeria, Congo and
Zimbabwean, of which Nigeria were chosen after careful survey of customer profiles and it
having potential market for the mattress with huge advantage for Gethafoam plc as a company.
Nevertheless, culture is one of the most exigent component of the international marketplace,
which inclusively patterns of behavior and way of thinking whether people living in groups
create, share and learn i.e. culture differs from group to another.
The aim of this report is to give a synopsis of Nigeria culture and there consumers’ behavior.
Moreover, it may provides the international marketer with clues on how the culture may affect on
international marketing mix decisions
The marketing mix deals with the way in which a business uses prices, product, people, process
and promotion to market and sell its product. More so, the marketing strategy needs to take into
account the culture, consumer needs and expectations, buyers’ behavior of people from targeted
country Nigeria
1.1Company Background
Weifong Industries Sdn.Bhd was incorporated in year 1969 and with almost 40 years of
manufacturing experience, we are known as the leading manufacturer of natural latex foam
mattresses and bedding products in Malaysia. The company is located at its own property at Lot
60, Batu 11.Jalan Cheras, 43000 kajang, Selangor and occupies a land area of 10,000 square
metres.The company manufactures its product with the Dunlop technology process and its latest
European automatic foaming machine automated line, its products are proudly manufactured
using 100% pure natural, high quality latex from only Malaysia which is renown for its world
class quality.
Gethafoam are made in conformance to international specifications and had matched and passed
various test standards such as certification from ECO umweltinstitute,Germany,Institute
Umweltindtitute Bremen GmbH,Germany and the world renown Malaysia Rubber Board.Getha
mattress also developed there own fire Retardant natural latex foam, which had been tested and
passed FIRA International ltd (UK)
The company’s achievement had been duly recognized by the Malaysian government and they
were honored to be the recipient of the “Product Excellence Awards “presented by Prime
Minister of Malaysia,YAB Dato’Seri Abdullah.Ahmed Badawi,in the year 2005.Besides this, the
company had also attained numerous prestigious awards, in recognition of its continuous growth
in branding and excellence.
Gethafoam company propose to go international market and that has placed a demand on the
marketing manager to conduct a research on three countries to choose the best suitable. The
countries selected are.
• NIGERIA
• CONGO
• ZIMBABWEAN
After suitable research demeanor on the three countries picked, Nigeria was selected via some
convincing reasons which involves viz
• Political stability
2.1 Introduction
Market research proposal is a plan, explains in detail the purposes of conducting the research,
ways of doing it, the information needed for writing research and costs associated with it
although there are clarity in domestic market, it is critical to conduct research on the prospect
country for the difference in politics, economics, legal regulations on free trade or restrictions of
operation. There are steps in the marketing research process (Kotler & Keller 2006).
The domestic market competition created a problem and the gethafoam considered how the
operations of the company will progress in the next decade, with the high contested market share
domestically.
SWOT – analysis is a tool for auditing an organization and its environment. It is the first stage of
planning and helps marketers to focus on key issues.
From the BCG matrix, when gethafoam existing product goes into the new Nigerian market,
the best market strategy for the company to chose is the market penetration.
2.3 Methodology
2, 3.1 Population and Sampling Plan
A sample is the segment of the population you select for market research purpose to
representation (varying levels of reliability) (Kotler& Lee). Knowledge of fully understand
society's behavior and fundamental attitudes is essential. The culture traits of a country have a
profound effect on people's lifestyle and behavior patterns and these are reflected in the market
place. This involves the what? How? Where? & who. For the sake for Sample data, we collect
information from various sources.
1. Populations sampling (age, gender income).
2. Brands sampling (the brands that consumer prefer).
In this case cluster where formed to understand the approach of potential customers towards the
brands, we conduct different questionnaires for proper survey and interviews for each diverse
location. These shown in the table below.
Group A Group B Group C Group D
East West South North
The sampling above can be done through visiting or conduct road show in various
Supermarket, street corners, BRT stations and shopping mull.
The information collected from section 2.3.2 is helpful in developing the correct marketing mix
strategies for this potential country, Nigeria. Thus it is crucial to evaluate in detailed in order to
penetrate the market successfully. The analysis plan set up is as follow.
The above table where used to illustrate for budgeting and costing, which however finalized at
rates of $77,500.
5. Problems in Data Gathering
• Time and tolerance is required to have several endeavor in order to collect the data
needed.
• Due to inadequate of fluency with the foreign place- this leads to bogus assumptions and
imperfectly defined research problems.
• Statistic data and information about gethafoam seems to be limited.
• Regency of data (age of data) - the most current data gathered by way of internet is not
the latest version.
• Through mailing and telephone Surveys may not obtain full responses in, accurate
responses attitudes and behavior of customers which lead to in exactness of data
collected.
• Lack of thorough demographic information and even in trying to reach sampling units
and Consumer behavior- People could rebuff to collaborate to provide genuine answer
to the questions.
• Random sampling errors – these errors occur due to variation in a sample data.
RECOMMENDATION
For the challenges faced during the data gathering Nigeria textile Mills commended to conduct
primary research to overcome the familiarity with foreign environment Individual survey and
observation in different environment convey the most reliable data compared to the mailing or
telephone survey. Via observation and questionnaires we can view the consumer behavior and
their attitude authenticity. All team members and staff in the organization being the consumer
before progressing to penetrate the overseas market. This means we must put ourselves in the
consumers’ shoes to understand our products in term of quality, taste and price. This is to conduct
the survey within the immediate family members, relatives and friends to obtain the answer
whether we have confident to go international, when faced with the situation where there is no
data available, or the secondary data sources are inadequate then it is necessary to begin the
collection of primary data in the form of quantitative and qualitative research (cateora, 1996).
Due to the inadequate and reliable data collected from internet for its aging reason we must also
search for the magazines such as Weekly Business and journals for better updates. After research
of the potential and viability of Singapore market here after some recommendations about the
further strategy to go to the new market even though all the information is already gathered PLC
still should prepare contingency strategies to cope with the Crisis which cannot be anticipated
such financial crises, terrorism and when penetrate a new international market, PLC should
better use segmentation strategy to fulfill every kind of customer need. In order to gather, sort,
analyze evaluate and distribute needed, timely and accurate information to marketing decision
makers. International marketing information system is necessary for PLC to do better.
PART 2: Gathering of Secondary Data in Nigeria
Taxations Tax system (Research Taxation and duties are 100% exempted
Findings) Income tax rate is less than 4% after 10 years
Employment law Research and The unemployment rate in the Nigeria jumped
findings to 8.1 percent, the highest level since late
1983, as employers slashed 651,000 jobs.
Trade and Tariff Research and The Trade and Tariff restrictions are generally
Restrictions findings high, especially on companies with African
Origin
Socio-cultural Environment
Population Research Findings Population growth is among the highest in the
Growth Rate developed countries
Technological Trends
According to the data obtained, there are opportunities for growth in Nigeria. With the state of
the economy ranging from the inflation rate, the subsidies for African countries, effective
channel of distribution, political stability and so many others touched in the analysis above.
Section2
At the mainstay of culture, lie its values. As defined by Rokeach, value is an enduring belief that
one mode of conduct or end-state of existence is preferable to an opposing mode conduct i.e.
consumer behaviour.eg applying unpleasant colour in the embroidery and latex in making the
mattress is well accepted in the Malaysia but may perhaps be considered a disrespect in Nigeria,
values endow consumers with standards for making comparisons’ among alternatives.
To suitable the importance of values in consumer behaviour, first we need to identify valuable
market segments’ to target within the Nigeria market, using an apt marketing mix.
Fundamentally, our crucial targets are defined by elusive consumer characteristics defined by
their lifestyles, reimbursement sought; mattress is a reflection of order, as a result of innovator.
VALS MODEL SEGEMENT inhabit this niche segment Previous consumer features sort after
involves, geography i.e. states, provinces densely populated by blacks, demographics i.e. youths
between 16-30, and the elderly personnels, religions oriented.
The behaviour of the identified consumer groups above towards product consumption is subject
to the values and value systems therein, thus the need to evaluate differences in value systems
between Nigeria foreign market and Malaysia parent country to establish the differences in
behaviour amongst these segments. Understanding the implications of these differences is of
these differences is of significant importance to the international marketer.
The basic question now is when launching a product into foreign market; do you standardize or
adapt your market mix to the foreign market? Gethafoam can either adopt to use an adapted
marketing mix to market the mattress in Nigeria or standardized marketing mix. Conversely the
best unforeseen event approach is to consider a bit of the both; 40%/60%.
Apparently desires may be universal, but the motivation, elevation and expressions of these
needs vary, so in essence the product decision on whether to standardize or adapt the mattress is
questionable based on two hypothesis.
Product lifecycle and Adaptation Obviously some reimbursement from Standardization include;
economies of scale in production, Marketing, management, distribution etc, usually
standardization saves cost' however one major factor disturbing the standardization of mattress'
is the product phase within the product life cycle. In Malaysia, the product has attained its peak
phase unlike the Nigeria, for its product new compete. Hence there is need for extensive
adaptation to profitably ascertain the mattress within the Nigeria, The strategy would be to think
worldwide, but act local
Analysing the Product for Adaptation: In accumulation to cultural struggle to Product
acceptance, which may oblige adaptation, physical attributes can influence the recognition or
elimination of a product. Similarly, the mattress is Multi-dimensional and the totting up of its
features and attributes determines the amount of satisfaction received by consumers thus there is
needed to divide its many dimensions into three distinct components;
Its core Components: Gethafoam mattress core components consist of its design and quality.
These features tend to differ across borders as they reflect contrasting implications to consumers
taste. In Malaysia, the 'mattress, is made mostly in latex; this might replicate rebuff because
consumers are more aligned to spring mattress in Nigeria market’. For example; the quality of
the product can be altered .Basically, these adjustments are costly because a change in the
platform (core component) can affect product processes, hence it need additional capital
investment; however it is necessary to adapt the product to the cultural variations as ubiquitous
in the Nigeria. Packaging: These include style features, labeling, trademarks, brand name etc.
The importance of each of these elements in the eyes of the consumer depends on the need that
the product is designed to serve.
Products refer to the offering based on the product or service variety, design, features, quality,
brand name, packaging, styling, size and colour varieties, performance, image etc. In making the
product offering decision Gethafoam plc will need to look into the standardization and adaptation
strategy based on various factors as discussed.
Gethafoam Plc needs to make a decision on the product offering as to whether to standardize or
adapt the mattress to international markets. The most important reasons driving Nigeria
multinational companies towards international tactical adaptation are culture, market
development, competition, laws, economic differences and differences in customer perceptions
while the most important reasons for standardizing are global uniformity and image, economies
of scale and synergetic and transferable experience. Consistency with consumers, easier planning
and control and stock cost reduction are of less importance.
Changes in the marketing environment may require a review of the prices of products already on
the market or for a new market. For example, an announcement by a large firm that it is going to
lower its prices makes it necessary for other firms in the industry to examine their prices. Culture
is not an independent variable in the business equation. Rather, culture exists, or should exist, to
support the business strategy. If culture is how we get things done, strategy shows us what needs
to be done. Usunier (2000) argues that price is a significant element of communication and a
decisive element in the social interaction between buyer and seller.
Gethafoam Plc needs to look into their pricing strategy and for very obvious reasons review the
strategy on a regular basis. The price objective, demand and costs estimate needs to be
determined
Promotion refers to the awareness created for the preamble of a new product and availability of
an already existing product by means of advertising and selling activities. The main goal of
promotion is to make customers responsive of product features, its uses and reimbursement
Promotion activities help firms to position their products in the right way in the market to reach
the target customers. Effective promotional activities consist of a clear and simple message
which is directly targeted at a specific group of people, reached by means of a suitable medium
like television or print adverts. The message should be consistent with the overall marketing
image of the firm and should reach the target audience and generate the desired response.
Promotional activities involve advertising, personal selling, public relations and sales
promotions. Gethafoam Plc needs to develop their promotion strategies for all of these stated
reasons.
Individualistic cultures' high attraction to the Internet is often attributed to the egalitarian,
democratic nature of the Internet (de Mooij, 2000, 2004). The strong influence of Individualism
on the consumption of the Internet, which is a relatively impersonal medium of communication,
is also connected with the essential and product-specific aspect of cultural communication styles.
Gethafoam Plc needs to be sentient of this since the Nigeria has the predisposition to purchase
products online and these needs to be considered as a channel of promotion.
Hofstede (1991) refers to Hall's concept of Context and concludes that high Individualism is
very often connected to "Low-context" communication, whereas low Individualism
(Collectivism) very often is connected to "High-context" communication. According to Hall
(Hall & Hall 1990) members of low-context cultures have less personal contact with each other;
therefore communication must be very detailed and very explicit.
“Place” refers to the distribution channels used to get a firm’s products from the
manufacturer/service provider to the end customers. Place is also known as channel, distribution,
or intermediary. For business to be successful, it is important that the product/service offerings
are at the right place at the right time. Therefore great importance should be placed in
determining the distribution medium. The selection of distribution method should be carefully
made keeping in mind the target audience and the positioning of the product in the market.
Gethafoam Plc needs to adopt the adaptation strategy in its bid for expansion into other
countries and market around the world as its globalization strategy focusing on managing
capitals through prudent and strategic growth since various countries have different cultures with
regards to their buyer behaviour based on their distribution channel cultures. In high power
societies globalization is broaden supply chains internationally at a time when market instability
is increasing, exposing companies to greater uncertainty. Port stoppages, customs delays and
transportation capacity constraints are just some of the dangers global companies face every day
but this will not be the case of Gethafoam Plc entering the Nigeria due to the fact that the culture
is such that the individualistic nature of the residents also encourage the customers to buy
products online.
Hofstede (2003) viewed culture as a construct and therefore is “not directly accessible to
observation but inferable from … behaviours and useful in predicting other … behaviour” (p 69).
Edward Hall (1976) proposed that the difference in communication among different societies lies
in their context. ‘High context’ societies depend more on the external stimuli for behavioural
cues whereas those in ‘low context’ cultures are more direct and explicit in their communication
and this affects the behaviour of the people and this needs to be considered for human resource.
In Nigeria the collectivism culture encourages all staff to think in one direction but the
individualistic nature of the Nigeria may also hamper group think and work, therefore a blend of
local and foreign workers should be encouraged to strike a balance. The foam industry in Nigeria
is more of a feminine field as it is considered a place for women and it is assumed that women
will be more creative than their male counterparts this will not be the case in the Nigeria as the
industry is a mixture of both sexes. In going global, Gethafoam Plc needs to put all this culture
into consideration as well as identify the laws on labour in the country of expansion like
demography where Malaysia workers do not have to attain a certain age to work whereas in the
Nigeria only people over 18years of age can work.
Process
This assumes a separate role within the marketing mix, as it involves the procedures, task
schedules, mechanisms, activities and routines by which a product or service is delivered to the
customer. Identification of process management as a separate activity is a pre-requisite to quality
improvement. While the people facet is important in customer service, no amount of interest and
effort from staff will overcome continued unsatisfactory process performance. The foam industry
in Nigeria emanates high standards of quality hence there should be a precedence need for
Gethafoam plc to incorporate and use for success in this new market. The weather in the Nigeria
requires that the product be produced according to the needs of the consumers and Gethafoam
plc needs to be alert of this therefore they need to use the adaptive strategy without
compromising on quality since their slogan is “Malaysians’ quality foam, high quality latex’. For
example, can Dunlop technology be added to wool while it can remain 100% latex? Suppliers
have to be responsive to this adaptive strategy else Gethafoam Plc may need to be involved in
vertical integration to ensure that raw materials are readily available for production although the
procedure for production could remain similar.
Gethafoam should adopt standardization in some aspects of their physicals like buildings, logos
and slogans since they have been known for Asian’s quality mattress and has a symbol of the
Asian legacy which is the quintessence of their product offering, the buildings and factories
should have a particular pattern if laws in the Nigeria allows for it. The environmental laws on
pollution by factories may differ from place to place and this will definitely affect the structures
for example, in Malaysia factories are encouraged to be high storied so as to take pollution
further up the atmosphere, in the Nigeria biotechnology is encouraged to discourage global
warming therefore the building structure may differ.
Conclusion