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Analyszing and Planning Marketing Plan for Entering into two industries

Hazeem AzamPBS1331434Analyszing and Planning Marketing Plan for Entering into two industries

IntroductionWhy Malaysia was ChosenWhy BangladeshAnalysisFact BangladeshFacts MalaysiaPEST ( Politics)PEST ( Economics)Pest(social)PEST(Technology)Pest(Summary)SegmentationTarget MarketBrand PositioningProduct StrategyPrice StrategyPromotion strategyAdvertisingPromotional Mix & PlaceEntry modeconclusion

Table of contents

Agora company produces halal milk and wants to enter Malaysian and Bangladesh market.Mominul says his focus on this project was to analyse the dairy industries of selected countriy and identify the opportunities there in order to market our companys product.Factors that influence their choice to enter a market are given below:Per-capital incomePopulation rate Growth rate in incomeTax- levelLaws for foreign companies


Malaysia is a growing economy with the chances of becoming a first world country soon.There are 30 million people in Malaysia.Per capital income is $10,400 and is growing at 4%.They have a strong market-oriented economy with business friendly policies.They have high points in all categories in World Bank's Doing Business website.It has been ranked the sixth friendliest country to do business in, beating developed nations such as South Korea, the United Kingdom and Australia. Malaysia has also entered into investment guarantee agreements with over 70 countries. These agreements guarantee that, except for public purposes, Malaysia will not expropriate or nationalise property without prompt and adequate compensation.Infrastructure is very developed and is improving continuosly.A pro-active government trying to make country attractive to investors.

Why Malaysia was Chosen

Highly Populates with over 150 million people.Low GNP of only $700.Developing at about 6% every year.From 1990 to 2010, the poverty rate declined from 57% to 31.5% which is an indication of gradual development.

Why Bangladesh

Product Strength Analysis Rating scale 1-9 (1=Extremely unattractive, 5=Industry average, 9= Extremely attractive Milk Powder Characteristics Weight Rating (1-5) Value Quality 20% 9 1.8 Price 20% 9 1.8 Cost Base 20% 8 1.6 Brand Strength 20% 8 1.6 Profitability 20% 8 1.6 Total= (weight value) 8.4 * The sum of the weightings assigned to the different factors are added up to 100%


Opportunity in Bangladesh Rating scale 1-9 (1=Extremely unattractive, 5=Industry average, 9= Extremely attractive Dairy Industry Characteristics Weight Rating (1-5) Value Overall market size 20% 9 1.8 Projected market growth rate 20% 9 1.8 projected profit margin 15% 8 1.2 Global Opportunity 10% 8 0.8 Opportunity to Differentiate 5% 8 0.4 Regulatory Regime 5% 7 0.35 Demand Patterns 5% 9 0.45 Entry Barriers 5% 9 0.45 Distribution Structure 5% 7 0.35 Total= (weight value) 7.6 * The sum of the weightings assigned to the different factors are added up to 100%


Opportunity in Malaysia Rating scale 1-9 (1=Extremely unattractive, 5=Industry average, 9= Extremely attractive Dairy Industry Characteristics Weight Rating (1-5) Value Overall market size 20% 6 1.2 Projected market growth rate 20% 6 1.2 projected profit margin 15% 5 0.75 Global Opportunity 10% 5 0.5 Opportunity to Differentiate 5% 5 0.25 Regulatory Regime 5% 9 0.45 Demand Patterns 5% 8 0.4 Entry Barriers 5% 3 0.15 Distribution Structure 5% 9 0.45 Total= (weight value) 5.35 * The sum of the weightings assigned to the different factors are added up to 100% Analysis

Bangladesh industry:The potential market for Agora powder milk is very big for a few reasons:The country needs 7.227 million ton milk calculating 120ml per head (Iedap, 2012).With the 4.9 million of milking cows and 0.3 million of milking buffalo, the country is producing only 2.686 million ton.Further 52 thousand ton milk is imported from aboard and there is still shortage of 3.91 million ton.According to the growth rate of population in Bangladesh, the potential market growth for milk consumers can be considered large and it will also continue increasing in the future as the population rises (fao, 2012).Bangladesh has high demand for the powder milk due the shortage of liquid milk production and the country has revealed a green signal to the foreign companies by reducing the entry barriers such as foreign investment in Bangladesh can be either 100% foreign owned or joint ventures. Furthermore, the import tariff for milk powder is set at 20% which is also a good indication for foreign products entry (fao, 2012).

Fact (Bangladesh)

With total 30 million populations Malaysia is average attractive market for Agora powder milk for a number of reasons.The country was heavily reliant on imported milk powder due to a vast shortage of production in liquid milk but now in the livestock sub-sector (milk production), they are achieving high growth (Fao, 2012).In line with many developing South Asian countries they are becoming more rigorous and strict on foreign investment whereas the entry barriers for foreign products are relatively high if Malaysia already has reputable position in that sector (WTO, 2011). Currently, it is seen that Malaysia is having stable financial and legal systems although not overly transparent, that support and encourage open trade.However, opportunities still exist; there are still prospects for UK brand milk powders which can be sold directly to the consumers. The Malaysian dairy industry is willing to import any source as long as the price is competitive and the quality is good.

Facts Malaysia

Malaysia has a stable political environment compared to Bangladesh.tariff rates for imported goods such as dairy product (powdered milk) is comparatively lower than the other items.there is no limit for equity share thus a foreign company and investment is welcome at all sectors of Bangladesh.there is comparatively stringent trade policy in Malaysia than Bangladesh as seen on the report of World Trade Organisation (WTO):any foreign investment or distribution service must be locally incorporated with 30% of equity reserved for bumiputera Although Malaysian government is welcoming foreign products with good quality but in reality the government is encouraging the foreign company only in the sector where products are produced in low amount by Malaysia Import taxes are relatively high for those productsPEST ( Politics)

The analysis includes the inspection of economic growth, exchange rate, GDP growth, purchasing power parity, GNP growth of a country. Malaysia has one of the strongest and fastest-growing economies in Southeast Asia.Malaysia is an upper middle income level country with a great improvement of standard of living while it is the 30th largest economy in the world by purchasing power parity.The current growth rate of Malaysian national income is 4% which is 2% less than Bangladesh. Bangladesh is a less developing country than Malaysia, comparatively it has satisfactory history of economical progression since 1996A great advantage of Bangladesh is its low-cost labour force which is a green signal for any foreign company PEST ( Economics)

it includes demographics, education, culture, health and environmental consciousness of the population of the country.Bangladesh is the 8th largest country of the world on the basis of population ranking and between 1-14 years are the second largest group (34.3%). a growing health consciousness is also driving the people towards quality productsit is seen that foreign products like US and UK brands have a positive image among the consumers.In Malaysia, the country has a growing concern for health and environmental issues and there is also a great need of high quality products.The major trends seen in powder milk buying behaviour is that halal products have a high preference However, it is seen that both countries have a good rate of social development while the distinction can be seen above. Pest(social)

As compared to Malaysia, Bangladesh has not been much developed in the technological sectorsMalaysia is on the way to a successful transformation from labour based industry to technology based industry. A good point is that almost 70% of the people in Bangladesh have access to media and television (Thedailystar, 2012), while the percentage of internet, mobile phone users in Bangladesh is rapidly increasing.


From the PEST analysis it is seen that both countries have opportunity and threats for agora milk powder. Compared to Bangladesh, Malaysia is more industrialised and fast developing country which creates several entry barriers to foreign companies. On the other hand, Bangladesh is less industrialised and less stable country which creates opportunities for foreign companies whereas the entry barriers are relatively low. In this stage, the product marketing strategies for Agora powder milk need to be very sensitive and carefully considered so that the company can survive in those marketPest(Summary)

Segmentation variables and breakdown for Bangladeshi and Malaysian market of Powder milk Main Dimension Variables Breakdowns (Bangladesh) Breakdowns (Malaysia) Geographic Segmentation Region Emphasis on Major Cities and Metropolitan area Nationwide Density Urban Everywhere Climate All (east, west) All (east, west) Demographic Segmentation Age 6-60 years old 6-60 years old Gender male and female male and female Income all above 1500$ all above 1500$ Occupation Housewives, Bachelors, student, officials Housewives, Bachelors, student, officials Education Elementary 4th grade, High school and above Elementary 4th grade, High school and above Race Bangladeshi Malay, Chinese, Indians and others Psychographic Segmentation Personality Brand conscious, inclined