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Imran Zihadi | Student ID:

GLOBAL MARKETING
MANAGEMENT

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Table of Contents:
Word counts
Introduction
Matalan's Profile
Why Bangladesh is one of the most potential marketplaces for Matalan
Task 1: Macro-environmental analysis of foreign market environment
The Proximate Macro Environment of Bangladesh
The supplier environment
The distributive environment
The competitive environment
Wider Macro Environment
PESTEL analysis
Political and legal factors
Government policies for Foreign Investments
Taxation policy
National wages policies in Bangladesh
Economic Environment
Corporate Tax Rates
Social factors including culture and rituals
Technological factors
Electricity Problem and solution
Internet and mobile Users
Environmental Factors
Lack of Corporate Social Responsibility (CSR) practices
Occupational Health and safety
Task2. Global marketing objectives for Matalan in Bangladesh

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Three objectives For Matalan in Bangladesh
1. Creating brand awareness
2. Increasing market share
3. Expansion & Stores opening
Matalan's corporate strategy
Developing Matalans market in Bangladesh and Justification
Business strategies for Matalan to support launch a brand in new market
Reason for Cost Focus approach and justification
Task3. Matalan's foreign Market Entry Methods
The justification of Joint venture selection
The business who already successful with Joint Venture in Bangladesh
Marketing tactics that will support Matalan in Bangladesh applying 4P's
Product Decision
Branding Name
Packaging and labelling
Advertising
Price skimming
Promotion
Place
Task 4: Matalans Organizational Implementation and planned marketing activities in
Bangladesh
Definition of Implementation
Financial performance of Matalan and Aarong marketing plan
Time
Money/Financial Budget
Expenditures
Selecting Ethnocentric Management Approach

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Choosing the functional Structure and justified
Conclusion
Bibliography



Introduction:
Matalan is a successful British brand offering a large selection of clothes to all age group
globally. With present international corporate branches, the company has a strong potential to
grow in more countries. According to the companys objectives and goals, there is a high
possibility in Bangladesh to grow successfully with its products. However, the company needs
to understand the unknown market more in deep in order to find the possible market plans and
actions.
Though Bangladesh is a very potential business market for Matalan, it will be a challenge to
launce the brand and position new business. For leading to successful growth in Bangladesh,
the brand needs to understand the macro environmental factors within Bangladesh as a foreign
market. Moreover, the company needs to make plans for effective marketing objectives along
with the corporate and business strategies as well as appropriate market entry method for
Bangladesh and then to be successful in applying the right tactics with appropriate actions.






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Matalan's Profile:

Matalan is one of the most successful, leading and largest clothing as well as homeware
retailers in the UK. It provides a comprehensive solution of quality fashion for man, women and
children including home ware and footwear since 1985. The company mostly attracts the
potential customers with a less price as well as attractive quality in compare with other high
street clothing brands. The Brand proved its success by having more than 200 stores within
almost 5 million square feet today from just 1 store in the beginning.
Matalan is already an established brand around the UK and a growing global brand. After being
successful with its unique price strategy and compatible quality nationally, the company stared
its global mission with opening business in UAE, Abu Dhabi and in Jordan.
(Matalan.co.uk/corporate/history at 27
th
April, 2014). In last few challenging years the
company was performing very well, with the economic downturn it was successful in delivering
a robust performance with a sales figure of 1,117.5m with a continues rising profits in 2014.
According to Matalan annual report, there were 17.8m investment was made by the company
in order to adapt itself with the new market demand which was on properties, in plans,
decorating existing stores as well as in IT.





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Why Bangladesh is one of the most potential marketplace for Matalan:
The potential new marketplace is one of the most important and largest suppliers of Matalans
products as well as the country has compatible political and legal factors which friendly and
inviting to the foreign business.







Moreover, there will be huge skilled and experienced human resources with the best affordable
cost. The company also can have very good corporate advantages by saving operational and
distribution cost as it will produce the products with available resources and will be selling the
products in same country.

Task 1: Macro-environmental analysis of foreign market environment:
The marketing strategy especially in pricing of Matalan is very effective in local as well as in
foreign growing market. Its marketing strategy successfully making productive attraction and
appeal to the target customers. However, a country likes Bangladesh where most of Matalans
supplier will need more concentration according to the countys macro environment. The
brand needs to understand the macro-environment of Bangladesh as a potential foreign market
in order to set right objectives and action plan.

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According to Paul Reynolds and Geoff Lancaster (Routledge, 2005), there are two ways to
analyze a potential market which are the proximate macro-environment and the wider macro-
environment. The Proximate Macro Environment refers to a companys suppliers, distributors,
competitors and other close external constituents as well as the PESTEL analysis refer to the
Wider Macro Environment.

The Proximate Macro Environment of Bangladesh:
The supplier environment:
The business organizations, whether they are producers, manufacturers or retailers will usually
rely on numbers of suppliers who provide the organizations with materials of goods, product
constituents, or services. Bangladesh is one of the Worlds largest garments products suppliers
and supply the readymade clothes around the world including UK, USA, CANAD, EU and others
western countries.
According to Matalans recent (April 2014) web news update it has canceled the supply
contract with Angora Wool which is one of its suppliers in Bangladesh
(matalan.co.uk/corporate/Ethical-Sourcing-Policy) as well as increased the demand and supply
amount with BRACK which is one of the largest garments supplier through Arong Brand in
Bangladesh. There are lots of affordable suppliers in Bangladesh therefore the supplier
environment will be one of the most favorite environment for Matalan.

The distributive environment:
In order to lead a quality and successful brand an effective distribution channels are required.
The distribution channel is usually are intermediaries including garments factories, wholesalers,
selected agents as well as distributors, all these channels will be making sure that Matalans

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products reach the target customers. In Bangladesh Matalans distribution channel will be a
little daunting with the countrys poor road infrastructure and lack of power. However, the cost
will be very cheap and affordable as a result the company can use the distribution environment
effectively.

The competitive environment:
The Companys management needs to understand the possible threat of other competitors
who are marketing similar and substitute clothes. Since Bangladesh is one of the largest
suppliers of the garments products there are some big brands operating importing business
from there. The big brands like Primark, Tesco, Mark and Spencsor , Disney and others world
brand importing clothes from Bangladesh.
And there are some local brands established with strong market position over the target
market. The Arong, Brack, Grameen check and others are already providing large selection for
the market with affordable price. Matalan needs to know exactly the competitors it is going to
compete with and being ready in order to compete effectively.


Wider Macro Environment:
PESTEL analysis:
PESTEL (Political, Economical, Social, Technological, Environmental and Legal factors) analysis is
a business analysis tools which can help the organization to know about the wider
macro/external environment situation of a specific industry in marketplace, below PESTEL
analysis for Matalans potential marketplace (Bangladesh).

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Political and legal factors:
Government policies for Foreign Investments:
The foreign policy of the Bangladesh government is friendly and inviting to foreign
investment as well as it has already enacted a good numbers of rules and policies to
attract the international business actively. Matalan can use this opportunity effectively.
For example there is no difference between international and national private investors
about investment incentives and in export and import policies. The country also offers
incentives for foreign investors include: 100% ownership in most sectors as well as duty-
free imports for 100% exporters along with tax exemptions.

Taxation policy:
In most of the sectors there is a value-added tax of 15% on any consumer goods. For the
2012-13 tax which start in 1 July and ends on 30 June. The government charged the
public trade companies a lower rate of 27.5% while the Banks, Financial Institutions and
Insurance Companies are 45% rate. In a justification, in Bangladeshs taxation policy
vat, income taxes and corporate tax is 15% as a result Matalan will be able to make
target profit. Even though the government has increased the corporate tax recently,

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they will make it flexible for the foreign business to attract the investors from around
the world.

National wages policies in Bangladesh:
In accordance with Labour websites data, the current minimum wage of industrial
worker is 15 monthly which is 77 less than monthly needs. Labour unions in
Bangladesh have already campaigning to increase the minimum wages to improve the
quality of the workers and finally in 2013 the Bangladeshi national wage board
recommended minimum 27 monthly. Matalan can use the skilled and quality human
recourse with by offering a little more wages then average within the local market
wages rate.


Economic Environment:
Bangladesh is characterized by mixed economic system where some certain sectors are left to
private ownership as well as to free market mechanism while others have important state
ownership within governments planning.
The overall economical environment constituted by that of a developing country, for example
the per capita income in 2013 was est. US$1,550 considerably lower than some other
developing country like Pakistan and India who are in lower than the average worlds per capita
income. In compliance with the International Monetary Funds data, Bangladesh ranked as the
48th largest economy in the world in 2013, with a gross national product of US$244.889 billion
and it is constantly growing. So Matalan will be able to position its product with its unique and
affordable pricing strategy.



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Corporate Tax Rates:
The standard corporate tax rate in Bangladesh is 27.5% in 2012 - 2013 tax years. This is
the standard corporate tax rate applicable to publicly traded companies in Bangladesh,
a list including tax rates for other corporations are as follows:
1. Publicly Traded Company 27.5%
2. Non-publicly Traded Company 37.5%
3. Bank, Insurance & Financial Company 45%
4. Mobile Phone Operator Company 45%If any publicly traded company declares
more than 20% dividend, 10% rebate on total tax is allowed

Social factors including culture and rituals:
Companies are experiencing the challenges of adapting their business strategies with the demand
of environmental changes due to the globalization and specifically the garments sector are
affecting more in Bangladesh. Although Consumer Rights Movement, enforcement of
government rules and regulations as well as a structured view regarding the economic
importance of Social responsibility are not so widespread yet, business have gradually
attaching more importance to Social responsibility in the local market as well. They are
increasingly aware that Social responsibility can be of direct economic value.

Companies like Matalan can contribute to social and environmental objectives, through
integrating Social responsibility as a strategic investment into its business strategy,
management instruments and in operations. This is an investment, not a cost, much like
quality management. So, business organizations like Matalan can thereby have an inclusive
financial, commercial and social approach, leading to a long term strategy minimizing risks
linked to uncertainty.

Moreover, Bangladeshs dominating religion is Islam with approximately 90% population is
Muslim. Most people are concerned about the dress they ware. Although in the UK Matalan

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sells all sort of clothes including short skirt, tight fittings clothing and lingerie items, selling such
items will not be usual in Muslim country like Bangladesh. Moreover Matalan needs to
concentrate some special clothing items for Bangladesh like Hijab for Muslim womens, Jilbab
for men's and small male kids in order to attract all level consumers.

Technological factors:
In compliance with William and Green (2007), "Technological factors engage with the changes
in technology and advances in the process of production". Bangladesh is not a technology
advance country like UK, the country is more likely to depend on its direct workforce as states
by Sillitoe, 2000, but, the good news is that over 70% people have access to electric media like
television and so it will be easy for Matalan to achieve the brand awareness.
Electricity Problem and solution: There is a major problem with regular and continues
power supply in Bangladesh as the country having power cuts on a daily basis due to the
lack of energy development procedure. But there are alternative ways available which is
affordable. Matalan can use the alternative solutions like Generators and solar power.

Internet and mobile Users: The internet and mobile network covering the entire
country. Approximately 75% to 85% are covered by mobile networks and recently 3G
network has been introduced which made the internet faster (allience.com). Matalan's
"pick and click" has generated more money in the UK and they can apply similar strategy
in Bangladesh and in order to get more completive advantage over their competitors.

Environmental Factors:
Lack of Corporate Social Responsibility (CSR) practices:
Textile and Garment industry are the key exporting products in Bangladesh. However
there are no strong corporate social responsibilities for business in all level. Matalan can

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be proactive and practice the Corporate Social Responsibilities in order to have a good
attention from its target consumers.

Occupational Health and safety:
The safety and security standards in Bangladesh is also not strong as there are several
accidents in recent years like Rana Plaza tragedy causing death and permanent
disabilities. Matalan needs to carefully concentrate on Corporate Social Responsibilities
including health and safety issues and put them into a practice. By doing so they will
play a role of social welfare and their prestige and creditability will increase among the
consumers as well as they can achieve potential customers trust.


Task2. Global marketing objectives for Matalan in Bangladesh:
Matalan will be a brand new business organization in Bangladesh and in order to achieve the
long run goals the company needs to have an effective and appropriate marketing objective. In
the competitive and challenging market like Bangladesh the marketing objective should be
appropriate as well as with the SMART tools the object should be Specific, Measurable,
Achievable, Realistic as well as within a Time frame. Matalan's objectives would be
concentrating clothing and in future they can focus on some other related items like shoes,
sports ware etc.

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Three objectives For Matalan in Bangladesh:
4. Creating brand awareness:
Brand awareness linked with potential customers as well as associated with a particular
product which usually stands out as a percentage of target market. It will rely on how
Matalan's primary advertising goal will be meeting in the beginning of a product's
introduction.

5. Increasing market share:
For 2016 Matalan's projected sales target is 80m BDT (Bangladeshi Taka) which is 62,
0000.00 GBP as well as increasing around 7% market share by 2018.

6. Expansion & Stores opening:
Opening new stores and extending the branches would be very one of the most
significant steps within Matalans objects. In the beginning the company will focus on
Dhaka's two main areas in Uttara as well as in Gulashan. Both areas situated near to the
international airport where the most upper and middle class consumers will be found. In

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2019 company will expand three more branches across the Dhaka Including Mirpur,
Dhanmondi and Elephant Road.

Matalan's corporate strategy:
According to Ansoff's Matrix, the corporate strategies can be assessed by four components of
strategic evaluation. And it is a part of a marketing audit as well as helps the management for
evaluating the strategic position of the company in order to set objectives in advanced.
Moreover, the four components help the organizations to determine growth for long term.

Existing products New products,
Existing Market market penetration
(Not Fit in Bangladesh)
Product Development
(Not Fit in Bangladesh)
New Market Matalan is here in this box
because
Matalan is a new
company and
launching in
Bangladesh for the
first time.
Matalan already has a
supplier in
Bangladesh.
Market development
is appropriate for
Matalan.


Diversification (Not fit in
Bangladesh),
(Figure: ANSOFF'S MATRIX)

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Developing Matalans market in Bangladesh and Justification:
Market development usually looks for new market as well as improving the existing products.
Matalan would be consumers are upper middle and middle class who have the ability to afford
the price of Matalans products. The company can also target to a different segment like
religious group with special clothing which can generate more revenue for the company.
The most age groups in the target marketplace are 20-35. With its target marketplace in Uttora
and Ghulsan it can target educational institute and some specific professionals as there are
numbers of college, universities and other professionals like Bankers, Doctors.
In accordance with Ansoff's Matrix, the company can attract their target and maintain a smooth
strategy in the long term and can establish the brand as a successful Retailer in Bangladesh as
like as in the UK.
Business strategies for Matalan to support launch a brand in new market:

Reason for Cost Focus approach and justification:
According to Bangladeshs overall domestic garments market cost base introducing and leading
would not be an appropriate as there are a good numbers of small investors occupied the local

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market all over the country. Hence, for Matalan cost based has been chosen rightly as the
target areas are Uttara and Gulshan which are the richest part of the country.
Those consumers have been targeted as a result of their better financial ability and would have
disposable incomes to pay their daily needs as well as would be able to spend on their luxury
goods. In the local market of Matalan it is still not established it brand as a very loyal brand but,
in Bangladesh it has a very strong chance to make its brand as a loyal brand. Therefore the cost
based method is appropriate.

Task 3. Matalan's foreign Market Entry Methods:
In compliance with Paliwood (1993), there are six main entry methods by which a brand can
enter in a foreign market. Therefore before entering in to an international market the six
factors need to be taking in to account which are Speed, Cost, Flexibility, Risk factor, Payback
period, Long-term objectives. Although acquisition is one of the most popular and effective way
to enter international market and the nature of acquisition allows enter very quickly and gain
profit quickly. However, it would not be the number one priority for Matalan in Bangladesh.
In accordance with the macro environmental factors including the PESTLE analysis of
Bangladesh, it is more effective way to take Joint venture (JV) as many foreign direct
investment companies in Bangladesh has chosen joint venture and in case of Matalan this is
also appropriate in Bangladesh to gain sustainability and to be seen as a profitable clothing
retailer in Bangladesh.

The justification of Joint venture selection:
According to the market macro environment and Matalans business objects and strategies
Joint Venture is effective for Matalan due to the very nature of joint venture in Bangladesh. In
Bangladesh the readymade garments industry is powerful which is in the second world list after

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china (bbc.co.uk). Therefore, Bangladeshi market has got strength in producing clothing and
Matalan has great IT skills as well as the right management style which can work together in
order to build a sustainable partner based business.

The business who already successful with Joint Venture in Bangladesh:
One of the most dominating clothing brands in Bangladesh is Aarong and most of the local
customers believe that the brand is made with local (deshi) handicraft including Nakshikhata,
Jamdani Patterns which remains Bangladeshi craft heritage. Their clothing is mixers with
tradition with contemporary designs. On the other hand Matalan 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 "Matalan &
Aarong" (slogan would be " Deshi cloths in world quality and tastes".)

Nature of Joint Ventures:
A Joint Venture(JV) can be ideal for doing business in an international market, while Matalan
and Aarong will share start-up and operating risks and profits, the JV will be as profitable and
reliable as a wholly owned subsidiary in Bangladesh. Although there are some negative
impacts like some perceptions that JV will not be profitable or easy to manage, the study
indicates that many companies have demonstrated that these adverse can be managed
effectively. (Paul W. Beamish ,2010)





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Marketing tactics that will support Matalan in Bangladesh applying 4P's:
Based on macro environmental factors it is seen that product, price, promotion and place are
most significant components to take in to consideration to approach globally. (Source:
xero.com,(2012)

Global Marketing mix factors are Product, Price, Place and Promotion, these components will
play a role in Bangladesh and will be analyzed the components with justification.
Product Decision:
Product selection is the most important part of a business in any country. In Bangladesh, it can
be seen from the macro analysis that there are 90% of total populations are Muslims, therefore
the business norm should be focused on Muslim style clothing, for Muslims people it is very
important in choosing clothes, although the nature of Muslims clothing's are covered and
baggy, Matalan should concentrate to these factors. For women, including regular fashiones
there should be loose fitting such as Burkha, Nikab too.

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In addition, Bangladesh is tropical country with 6 official seasons due to the adverse weather
pattern. It is mostly summer for some months as well as the temperatures hit up to 40-45
degree, but there are months that are rainy with mild winters. So Matalan main focus would be
summer t-shirts, 100% cotton, suits, sports t-shirts etc. for men's and for women, cotton Salwar
Kamiz (long sleeves) , and consolidating with Aarong they may launch traditional dresses like
Kurta, Panjabi etc.
Branding Name:
Branding name remain same and would be Matalan and Aarong made in
Bangladesh.

Packaging and labelling:
For packaging it is important that if company put any picture on their labelling it
need to be decent and no indecent images or any animal pictures would not be
attracting to most of the target customers due to the religious and social
customs. In addition, Bangladesh government banned plastic bags in Bangladesh
for the concerns of environment and so Matalan has to use eco-friendly bags
such as paper bags or jute bags. On the labelling of cloths two languages will be
relevant Bengali and English.

Advertising:
Advertising is another key to the business and to attract the customers Matalan
needs to create right awareness about the products and to offer the right details
to reach the target customer and give a positive impression about Matalan and
Aarong.
As internet is the most growing sector in IT, it will be appropriate to advertise
the brand in online and TV's.



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Price skimming:
Pricing strategies are significant role for the company because it depends on company's profit
and market shares. For Matalan cost based or price penetration pricing will be best appropriate
because the target places are suitable for this target. Matalan and Aarong would gain more
market shares and will reach their target by 2018.
Promotion:
The objective of promotion tends to follow DRIPE framework which means Differentiate,
Remind, Inform, Persuade and Engage. There are several tools that Matalan can choose and
remain successful in Bangladesh. Initially taking sponsorship tool will be very expensive for
Matalan but using this Matalan will be seen a very successful high street retailer in Bangladesh.
Sponsoring in Bangladeshi 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, those people wearing that jersey are advertising our
company throughout the nation.
Place:
The location of target areas (Uttara and Gulshan) is lucrative for business as the transportation
system is very easy. The consumers, suppliers all can easily communicate from there. Most of
the public transport available to be there in an average 20-25 minutes and the suppliers also
close from the location as the most garments factories are situated in Gazipur which is near to
Uttara.




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Task 4: Matalans Organizational Implementation and planned marketing
activities in Bangladesh:
Definition of Implementation:
Implementation is running the planned marketing activities according to the objectives. A
strategy is useless without being implemented at the right place at right time. A strategy
consists of three components basically time, people and money.

Financial performance of Matalan and Aarong marketing plan:
Money, people and time are very significant for Matalan in order to consider and take these
strategies to launch the brand new company in Bangladesh and joint venture partnership with
Aarong.
Time:
Matalan and Aarong are marching their orientation joint venture partner by
2014.
Money/Financial Budget:
In economic adverse condition Matalan proved the robust success by providing
successful performance and the company was doing very well against the
challenging market and economic condition. According to the financial report of
Matlan, there were 1,117.5m sales was made in 2012 which was around 1.9%
increases from 2011: 1,096.5m, this increases is really very positive outcome in
recent economic situations.(matalan.co.uk/financial/ Report). The financial
highlights EBITDA of 100.4m in 2012 it was 91.1m which is up 10.2% from last
year. The total revenue was 1,125.4m in 2012: 1,117.5m and strong closing
cash position was 120.7m in 2012: 96.2m.
(matalan.co.uk/financial/report/2013). The business ended in the year with
120.7m in cash. Matalans strong cash position indicates that they generate

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their profit by 24.5m between 2013 and 2012. Therefore the company have a
good financial resource and capital in order to invest in Bangladesh, an invest of
20m profit can be invested in Bangladesh with Joint venture company Aarong
to gain a huge market in Bangladesh and run their business smoothly.
Expenditures: In order to gain marching by Joint venture with Arrong, Matalan needs to
spend that money on the following sections:
In expanding the Braches in Dhanmondi as well as in Mirpur by 2016.
In renting and developing the properties and the shops including the electricity bills,
power alternative like generator bills, Staff as well as stuffs wages.
In buying new software to integrate the technology and to upgrade the overall system.
In obtaining markets via advertising including Social media, TVs and radios
Investing in computers system, IT development and in Human resource Management
In order to train and managing the Human resource, there are three approaches Matalan needs
to consider for new market in Bangladesh in order to train and manage the human resource
and choose one of them. The approaches are ethnocentric approach, the polycentric approach,
the geocentric approach (Dowling PJ, Festing M and Engle AD, 2008).

Selecting Ethnocentric Management Approach:
In Bangladesh Matalan need to consider the Ethnocentric management style in order to
introduce a brand and new systems including work patterns and the nature of the business
from lower level to top managements and employees.
Local stuffs need to be well trained and recruited from Bangladesh as they will be adapting with
the culture. After successfully train the management in Bangladesh and adopting the systems
the top executives within the management can back to the UK. The Ethnocentric management
approach will help both companies leading with long run success.

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Choosing the functional Structure and justified:
There are four specific strategies that a business organization can choose to support
implementing its strategies as an effective manner which are Functional structure, Product
Structure, Geographic and the Matrix.
Among them the functional structure is very effective as well as in this manner the company
can share their activities for example Aarong can take care of marketing, finance and staffs
while Matalan can take care of IT, Managements functions and training HR and others.

Conclusion:
In concluding, the macro-environmental factors of Matalans new market should be taken into
account and above marketing objectives, strategies, entry methods as well as the implementing
actions should be applied properly in order to lead the business to the success.
There are some points can be recommended which are:
Matalan should work actively with the above strategic factors and train the human capital
of lower cost.
Opportunities of new market should be converted to strength with the support of the
governments foreign policies.







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