Global Marketing | CocoAfair | Case Study Report

Running head: GLOBAL MARKETING
Global marketing
Name of the Student
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Contents
Standardization or adoption considerations
Cross cultural analysis
Other factors
Recommendations

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According to researchers, in order to establish a business in a foreign nation, it is highly crucial
for an organization to considerations the cultural dimensions as well as differences between the
host country and the guest country. In order to analyze the cultural dimension, in the following
paragraphs, Hofstede model of cultural comparison has been conducted.
When it comes to the first cultural dimension that is power and distance, it has been observed
that the score of Malaysia is 100 whereas for UK the collective score is 35. Thus it can be
understood that people in Malaysia are more likely to follow the hierarchical order and thus the
Malaysian workplace are more prone to centralization, inherent inequalities and autocracy. Since
this is not true inn case of UK, it will be highly crucial for the management of Cocoafair to
ensure that the culture that they will be establishing in Malaysia will neither be too autocratic nor
transformational in nature (Huang and Crotts 2019). Another major cultural difference
experienced by the organization includes the degree of individualism. The Malaysian society
being a collective one manifests close and prolonged commitment to the member group that

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includes their immediate and extended family as well as extended relationship. On the other hand
in UK, the residents prefer to be individualistic. Thus for establishing business in Malaysia, it is
highly crucial for the management of Cocoafair to understand that frequent transfer to UK or any
other countries as well as lack of medical opportunities for the family members of the employees
may result in job dissatisfaction and attrition (Khlif 2016).
It can be seen that there exists similarities between the two countries when it comes to other 4
cultural dimensions, namely, masculinity, uncertainty avoidance, long term orientation and
indulgence. Both the countries possess medium to higher medium score when it comes to
masculinity which signifies that the society is neither too masculine nor too feminine. Secondly,
both the countries possess low uncertainty avoidance that is both Malaysia and UK. This
denotes that both the cultures are open to wards other cultures and lacks conservative and strict
rules and regulations. When it comes to long term orientation, the score of UK and Malaysia is
similar. While the Malaysia whose score is 41 possesses normative culture, since the score of
UK is 51, the dominant preference in the British culture cannot be determined. However, it can
be said that both the culture exhibit great respect for traditions, a relatively small propensity to
save for the future, and a focus on achieving quick results. Finally, when it comes to indulgence,
it can be defined as the degree to which the residents of a nation ties to control their desire as
well as impose. The score of Malaysia being 57, it demote that the culture is one of indulgence.
For UK, the score being 69, it can be said that people of the both the nation exhibits willingness
to enjoy life and have fun. Thus in order to ensure establishment of an effective business,
Cocoafair should provide effective work life balance to the employees.

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According to researchers, in international marketing, the marketers are supposed to come up with
decisions in order to decide whether they are going to standardize the product or modify the
existing products which are one of the clanging decisions (Ali et al. 2018). Product adaptation is
considered as the necessary strategy that a company needs to consider in order to address the
needs of a specific market. For instance, when it comes to the Cocoafair organization, in order to
establish its market in the chocolate industry of Malaysia, it is highly crucial for the organization
to understand the specific preferences of the consumers when it comes to chocolate, so that
specific requirement of the local area can be met. Another area where the company Cocoafair
needs to consider adaptation includes its weak global brand image. Considering the fact that
Malaysia is considered as the largest chocolate industry in Asia, a good number of well-
established organizations are there in the mentioned market with highly brand value. Thus
adaptation is required by the organization in order to enhance competitive advantage and brad
value of Cocoafair in the Malaysian market. According to Kee et al. (2019), adaptation is crucial

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for an organization since continual change possess the potential to foster flexibility as well as
experimentalist. Product adaptation tends to become a reactive response to the market.

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Along with the above mentioned factors, there exists other major factors that needs to considered
by the management of Cocoafair in order to establish its business in the Malaysian chocolate
industry has been found that The sales of Chocolate in the Malaysian dairy industry has got
increased by 0.3 percent in the year 2019 (Yusof et al. 2019). Since the mentioned industry is
increasing, a goo number of globally well established brands have already established their
business in Malaysia. Some of the most popular brands in the Malaysian dairy industry include
Ballotin Chocolate, Ferrero Rocher and Hershey. Thus, in order to establish a successful
business in Malaysia it is highly crucial for the Cocoafair Company to implement strategies so
that a brand value can be created.
The second considerable factor includes in order enhancing its revenue, the government of
Malaysia have lowered barriers to new entrances to the great extent. The world bank and IFC
have ranked Malaysia as the number one position in the world for obtaining easy credits and
registration of property for establishing business. This factor will definitely act as a positive one

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for the Cocoafair chocolate company, since easy credits mean lack of wastage of time and money
and thus limited investment cost. Log with this easy registration of the property will be beneficial
for the organization since it denotes low brokerage. Lack of rules and regulation and lack of
implementing of taxes on foreign companies will make it easier for the organizations to establish
an effective business in Malaysia.
The third considerable factor includes the per capita income of the Malaysian residents has got
increased by 5.7 percent making it 3rd wealthiest Asian countries. Thus it can be understood that
mentioned organization per capita income of the Malaysian residents has got increased by 5.7
percent making it 3rd wealthiest Asian countries (Ahmad et al. 2019). This factor will impose
positive impact on the Cocoafair organization since higher per capita income denotes higher
mount of disposable income. Considering the fact, in Malaysia, Chocolate is considered to be
both a desert as well as fast food item, higher disposable income will enhance the purchase of the
product ot a great extent.

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The above mentioned recommendation has been provided to the management of the Cocoafair
organization in order to effectively launch its business in Malaysia an d ensure enhanced profit
margin within a year. The first recommendation includes implementing strategies for
encouraging cultural diversities. In spite of the fact there exist several cultural similarities
between the two countries, the two major dissimilarities includes power distance and
individualism. In order to ensure that high level of flexibility and casual relationship between the
supervisor and employees needs to avoided. Foe ensuring cultural competence effective training
sessions needs to be given to the employees from both the host country as well as the guest
country. For instance an ice breaking session can be implemented in order to enhance the
knowledge of each of the employees about other employees. This strategy will to only enhances
the usage of the employees about their colleagues but will also enhance the cultural competence.
The second recommendation that has been given to the organization is to implement strategies to
enhance its competitive advantages. Considering the fact that the brand Cocoafair is still

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unknown to majority of the residents in Malaysia, in order to launch its product in the Malaysian
market, the company can implement cost leadership strategy. This strategy includes offering the
costumers with high quality product within a lower price range compared to the existing
competitors. Affordable price with high quality chocolate will attract consumers and thus help
the company to create an effective consumer base (Yusof et al. 2019). Other strategies that can
be implemented in order to enhance its consumer base and competitive advantage is to provide
the consumers with frequent offers as well as discounts. Apart from this, interesting posts on
social media pages as well as special offers on special occasion should be provided to the
consumers.
The last recommendation that has been given to the Cocoafair organization is to diversify its
product so that it can appeal to lower middle class, middle class as well as elite class consumers.
Considering the fact that the per capita income of the Malaysian consumers are getting enhanced,
it can be understood that lower middle class, middle class as well as higher class members of the
society will be opting for purchasing chocolate hence to address consumers from all social
status, the company should make that are highly available as well as chocolate that are luxurious
and premium quality.

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Reference list
Ahmad, M.M., Ibrahim, N., Sahekhaini, A., Sahak, Z.R.M., Jamil, N.H. and Ibrahim, M.Z.M.,
2019. Development of 3 in 1 Chocolate Filling Machine with Variable Volume Using Semi or
Full Automatic Process. Politeknik & Kolej Komuniti Journal of Engineering and Technology,
pp.65-73.
Ahmad, M.M., Ibrahim, N., Sahekhaini, A., Sahak, Z.R.M., Jamil, N.H. and Ibrahim, M.Z.M.,
2019. Development of 3 in 1 Chocolate Filling Machine with Variable Volume Using Semi or
Full Automatic Process. Politeknik & Kolej Komuniti Journal of Engineering and Technology,
pp.65-73.
Ali, M.H., Ismail, A., Alam, S.S., Makhbul, Z.M. and Omar, N.A., 2018. Exploring the theory of
planned behaviour (TPB) in relation to a halal food scandal: the Malaysia Cadbury chocolate
case. International Food Research Journal, 25, pp.S79-S86.
Huang, S.S. and Crotts, J., 2019. Relationships between Hofstede's cultural dimensions and
tourist satisfaction: A cross-country cross-sample examination. Tourism management, 72,
pp.232-241.
Kee, D.M.H., Hashim, N.I.B.M.N., Azizan, S.B., Ezani, N.I.A.B.M. and AlMousa, N., 2019.
Beryl’s Chocolate and Confectionery Sdn Bhd to Enter Malaysia Market. Journal of the
community development in Asia, 2(2).
Khlif, H., 2016. Hofstede’s cultural dimensions in accounting research: a review. Meditari
Accountancy Research.

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Udin, N., Awang, A., Harun, H.H. and Ramba, H., 2019. Overview of Malaysian Cocoa
Industry.
Yusof, S.C.M., Ismail, N., Haris, M.F., Hussein, S. and Jusoh, M.S., 2019. BIOREACTOR
DOWNSTREAM PRODUCT TECHNOLOGY TRANSFER-GINSENG AND TONGKAT ALI
INNOVATIVE CHOCOLATE PRODUCTION TRAINING IN CAPACITY BUILDING
PROGRAM TO INCREASE SMALL MEDIUM INDUSTRY (SME)
ENTREPRENEURS. Journal of Information, 4(11), pp.22-33.