Additional questions to marketing and statistics project

Date: 26.10.2013 Name: Deyvid Faris

1|Page

List of content:

Chapter: 1 Marketing strategies

Page: 1. 2. 3. 4. 5. 6. 7. 8. Advantages and disadvantages of marketing standardization Advantages and disadvantages of local adaptation Recommendation Recommended marketing information Mr.Wong should use in the international market Dangers and challenges in assessing franchising Importance of having Corporate Social Responsibility activities Supposition and ability to hit a blue ocean Bibliography 3 4 4 5 6 6 7 8

2|Page

1. Advantages and disadvantages of marketing standardization

Advantages:
- Same used methods -Cost saving from having identical products - Improves the communication between departments -Economies of scale

Disadvantages:
- Loss of uniqueness - Not a good response to customer needs - if Mr.Wong wants to offer new products, costs will be higher when it comes to design, packaging, manufacturing

2. Advantages and disadvantages of local adaptation

3|Page

Advantages:
- Easier to asses and develop strategies for the cultural taste

Disadvantages:
- Competition - High costs - Requirement to understand the behaviour of the local customers
-

3. Recommendation
The future entrepreneur would be advised to count on an intermediary mode when it comes to penetrating the international market. There are many factors in creating a good business nowadays.The most important role of the strategy must be to create satisfied customers (students) in a long term perspective. Human resources has a vital role in Cafeteria business. His main task must be to build a strong team of workers in order to satisfy clients. In order to save costs, Mr.Wong can use economies of scale and stable relationship with the suppliers. Another aspect the implemented strategy could be that coffee-shops should never lose their uniqueness and appearance, since his business idea it to establish a student community. Focus could be taken into special designs, packaging and absorbing activities, discounts. Every country must be segmented and evaluated in order to meet the cultural differences. A good tool and mode should be to measure the general characteristics of the selected country as probing into the
4|Page

geography, language, demography, economy, technology, religion, education. Other measurability could be the lifestyle of the population, personality, attitudes and tastes. Language is important, because advertisement has to be translated and accepted by all people. Every countrys economy is different some spend more, other dont. Religion is most dangerous in Islamic world, if he wants to penetrate this market commercial should be carefully selected. Consumption habits should be analyzed also.

4. Recommended marketing information Mr.Wong should use in the international market

In order to expand his business and have international audience, he has to discover his own style and reveal his unique sense of offering products. Good idea is marketers to use BERI (Business Environment Risk Index) to analyze the risks of going globally. This method consist criterions such as: political stability, economic growth, currency convertibility, labor cost, nationalization, inflation, bureaucracy, communication etc. After having this analyze, it will be clear if the target country would be favorable environment for him, or the economy will be immature, or the risk will be very high.

5|Page

5. Dangers and challenges in assessing franchising

Advantages:
- Brand recognition - Benefits from world- wide commercial - Help by the company in getting information - Pays only % to the corporation - Banks grant loans easier to franchisers

Disadvantages:
-Follow company's policies -If there is a problem in reputation it becomes common -If Mr. Wong wants to sell his franchise, he would have to seek the approval of the company - Requires sound capital - Tied to suppliers - Other franchises coud give a bad reputation - The investment is risky

In the beginning it will be better for Mr.Wong to focus on his idea and delay his franchise idea. Developing two business ideas at the same time is always a risky deed. First his coffee-shops need to be recognized by the customer base and appreciated worldwidely and after that he could expand his mission by working with other brand.

6. Importance of having Corporate Social Responsibility activities

In order his clients and future shareholders to be interested in his company and activities, Mr.Wong needs to be
6|Page

responsible about the environmental consequences and the impact on the social welfare. It should become one of his main topics, beside having profits. In future, when he will develop his business by franchising, the higher chance to get closer to the corporation will be if he is socially responsible. Branding plays a vital role. He could use special materials in products packaging, by using clean energies that doesnt cause pollution. Donating to local and national charity funds is also a good resource for CSR. Another idea is to use only fair trade ingredients.A harmony with the ecosystem and labor must be achieved.

7. Supposition and ability to hit a blue ocean

Mr.Wong will dive into the deep and clean waters of the blue ocean. This strategy field is structured on a market that is relatively unknown. Blue ocean swimmers avoids the head-to head competition in order to have sustained and profitable growth. It is characterized by very dynamic environment, since the demand could be created by,for example, Mr.Wong. Boundaries are not defined and accepted, competitive rules are unknown. This could be the perfect chance for him to establish his business idea and become leader, since the students cafes are not a general target market by the restaurant or caf industry. His penetrating strategy needs to be based on innovation and defending his current position.

7|Page

8. Bibliography

Corporate Social Responsibility: Definition & Examples by http://www.businessnewsdaily.com

Corporate social responsibility by Wikipedia 5 Tips for Marketing Online to an International Audience by http://mashable.com/ Global marketing 5th edition by Svend Hollensen

8|Page