Table of Contents INTRODUCTION............................................................................................................................3 Background..................................................................................................................................3 Aims and Objectives....................................................................................................................3 Rationale.......................................................................................................................................4 LITERATURE REVIEW.................................................................................................................4 RESEARCH METHODOLOGY.....................................................................................................7 Time scale....................................................................................................................................9 REFERENCES...............................................................................................................................10 ANNEX..........................................................................................................................................12
Topic:The influence of customer perception on different strategies employed by organization to enter into emerging market base on study on Cascade Brewery INTRODUCTION Background It is a dream for every organization to expand its business by entering into the new markets. This dream has become relatively easier for the company by increasing globalization of business around the world. Globalization is a concept which is related to integration of economies of different countries.Customer perception plays a great role while selecting a particular market in a country for expanding business. What are the preferences of customers, values hold by them, what a particular product affect their feeling etc., are some of the factors which are to be considered while selecting a specific mode of market entry. Emerging markets such as India, Brazil, China etc., are the top destinations for the companies for expanding their business. Thus, for this they analyse and evaluate different market entrystrategiessuchasJointventure,Licensing,mergersandacquisitions,franchising, partnerships, direct exporting etc. Organisations are mainly involved in direct exporting for an objectiveof expanding the business due to the fact that exportsare encouragedby the government. For this purpose, the exporters are facilitated with many subsidies and concessional tax rates. The reason being that exports brings in the foreign currency which have a direct impact on the GDP of the nation. The present research report will cover theinfluence of customer perception ondifferent strategies employed by the company for the business expansion. The report will focus on Cascade Brewery, an Austrlian beer brand which also offers non-alcoholic products. Further, literature review of the proposed study will be undertaken in the report which will highlight the claims and conclusions of existing studies and knowledge.Moreover, what kind of research methodologies will be used by the researcher for solving the research problems. Aims and Objectives Aim :“To determine theinfluence of customer perception ondifferent strategies employed by organizations ito enter into emerging markets”. A study onCascade Brewery. Objectives : To assess the impact of globalization on organizations in the context of different market entry strategies employed by them
To determine theimpact or influence of customer perception ondifferent market entry modes employed by organizations To ascertain the challenges faced by the company inassessing the customer perception and their needs whileselecting the suitable market entry strategy for expansion. To recommend the strategies to the company for overcoming challenges related to negative consumer perception and to select most appropriate market entry strategy to pave its way into emerging markets. To identify unique ways to improve consumer perception while entering into a new market. Rationale Organizations sort to different modes for entering into the most emerging markets of the world for the purpose of business expansion at global level. This specific topic for the research study has been chosen by the researcher for assessing the impact of globalization& customer perceptionon the organizational decisions relating to business expansion in emerging markets. This assessment of the different market entry modes used by the companies will add to the existing knowledge of researcher. The research study will also act as a handbook to the management of the company through which they might be able to overcome the challenges it faces while selecting a mode of market entry. Moreover, the other reason why the researcher used this topic is its personal academic interests through which the scholar will be able to make a better understanding of the chosen concept. LITERATURE REVIEW Theme : 1 Impact of globalization on organizations in the context of different market entry modes employed by them In the view of Ahi and et.al., (2017) glocalisation is one of the major reason why even a small business enterprise is striving to sell its products and services in the international markets. Opening up of world economy has offered enormous business opportunities to the organizations around the world in every sector, be it retail, IT, education, etc. The author states that companies are increasingly focusing on formulating the most suitable market entry mode which could help them in yielding the benefits of opportunities available in emerging markets. Gollnhofer and Turkina (2015), argues with the views of the above author and states that globalizationhascreatesnumerouschallengesforthecompaniesintheformofintense
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competition. Because of the easy trade norms around the world, each of the business organization is desiring of entering into the market that has huge potential of business growth. Due to this, business enterprises are facing difficulties in surviving peacefully in the market. Theme 2 :Influence of customer perceptionDifferent market entry strategies applied by the organization In the opinion of De Villa, Rajwani and Lawton (2015)customer perception refers to the procedure wherein a customer chose, organise and interprets information for creating a specific image of a brand or the product. It has a great influence on the different market enrty modes since understanding of the needs and requirements of the target customers and serving exactly what they expect is very necessary for becoming successful in the market. How a customer forms an image of brand defines the brand loyalty for the company. Business organizations sort to direct exporting as a suitable strategy for entering into the emerging markets. Direct exporting is concerned with selling of the products or services directly to the interested customers across the boundaries instead of involving any third distributing party. The author asserts that direct exporting is a preferential method of expanding into the international market because exports are encouraged by the government as it brings foreign currency into the country. It also eliminates the requirement of establishing a business premises in the intent emerging markets which reduces the costs and expenses involved in the business expansion. However, Hohenthal, Johanson and Johanson (2015) argues with the views of above author and highlights the limitations of direct exporting mode of market entry into international markets.It says that direct exporting most of the time ignores the aspect of customer perception which is why many company fails to mark their place in international markets such as United Kingdom.The author stipulates that identification of customer base is a tiring task for the organization and requires a human power for the same. All the events involved in the logistics are to be tackled by the organization itself. In addition to this, the author advocates for franchising method. It implies that this method is more suitable for the company because it does not require the company to establish a business premise in the intended emerging markets. Ang, Benischke and Doh (2015) argues with above author and claims thatfranchising provides the local expertise of the franchising partner in the proposed emerging markets, which aids the organization in spreading the brand awareness in the local areasand improve customer perception. Further, this method is considered as more economical method for expanding the
business across the international boundaries. The business organization also gets the fixed amount of money in lieu of the licence given to the person buying the franchise of the brand. According to Tulung (2017), opting franchising as a method of entering into the new markets brings some disadvantages for the company. For example, due to franchising, company gets less control over the business in international market. The author also states that in the event when franchisee does not cooperate with the organization, then legal actions are required to be taken by the business enterprise which results as a costly affair for the company. In addition to this, such actions also results into damages on the reputation of business organization amongst the other franchisees. However, Schwens and et.al., (2018) argues with the opinion of the above mentioned author and states thatfranchising method is controlled by number of legal restrictions and regulations. For example, Franchise Disclosure Document (FDD) and other necessary documents are required for developing franchises. Theme 3 : the challenges faced by the company inassessing the customer perception and their needs whileselecting the suitable market entry strategy for expansion Hernández and Nieto (2015) states thatunderstanding customer perception is very challenging. It says that due to continuous change in the prefernces of the customers, it is very difficult to define and strengten a brand in a new market. Also,business organizations faces various legislations related problems while selecting a particular mode of market entry. It has been said by the author that direct exporting method brings many regulations and legislations that are to be fulfilled by the company before adopting it. Also, franchising method is affected by number of rules and regulations such as Franchise Disclosure Development etc. Meschi,Phan and Wassmer (2016) disagrees with the opinions of the above author and asserts that major challenge which a business entity facesis that lack of adequate personalisation in the services of the products and services through which more enhanced customer services could be provided to customers. The author says thatselecting the most appropriate market entry strategysuffers from a challengeofavailabilityof suitablehuman capital.Theorganizationfacesproblemsin assembling the human resources for the purpose of carrying the responsibilities that comes up with the business expansion in the emerging markets. The company also considers the fact that
whether it will be able to get a pool of talented people in intended emerging markets who will be capable of handling the work. For example, franchising rules out the requirement of personally employing the person for internal expansion of business, as local partners are free to do this and operate as per the conditions of the market. Whereas , if the company thinks of establishing its own office in the proposed markets, then it will have to think that from where it can arrange the skilled and talented people for handling the operations. Dau, (2018) argues that company's major concern while expanding and selecting the entry mode is availability of adequate financial resources. For example, for establishing own premises in intended destinations, huge costs have to be incurred and therefore, huge funds are required that have to be arranged from the most economical sources. Whereas, if the company has less financial resources, then it will have to sort to other modes of market entry strategies such as licensing, franchising, partnerships. Theme 4: To identify unique ways to improve consumer perception while entering into a new market. From the view point ofYao, Oppewaland He (2018)it is essential to control the consumer perception towards a company because if the customers in an international market view the organization's products or services from negative aspect then it can hamper the growth rate and profitability of the organization, Therefore, it is imperative for an organization to influence the consumer perception by implementing unique marketing strategies likeselective perception marketing(SPM),targeting the right audience and making sure that the message of their brand is sound and clear. Moreover, it is important to adopt strategic pricing as it is the main reason behind changing view points of consumers. Also, the business must quick services to the consumers and enhance their overall experience as it would not only help in retaining these customers but also add new customer base and increase the international organization's market share. However, theTulung, (2017)argues that promotion and marketing are the most important tools to improve the brand image of the company and for changing the perception of consumers. International companies must aggressively promote and market their products in the market and should use various tools for promotion like Television, print media, social media and direct mail as it would help in changing the image of the product in the minds of consumers thus increasing the sales and ultimately would lead to profit maximization of the organization.
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RESEARCH METHODOLOGY. Research methods: Therearetwotypesofresearchmethodswhicharequalitativeandquantitative. Quantitativeresearchmethodsinvolvesusingofnumericaldataforsolvingtheresearch problems while qualitative research methods involves emotions, feelings and non-numerical data for solving the problems of research problems (Corbin, Strauss and Strauss, 2015). In the current research study, the researcher will use the qualitative research type for assessing what are the different strategies which the Sainsbury use for expanding into the emerging economies of the world. Research approach: Researchapproachesarebroadlyclassifiedinthreecategoriessuchasinductive, deductive and abductive. Inductive approach is going to be used by the scholar in the present research study for assessing the impact of globalization onCascade Breweryin the context of different market entry modes. Research Philosophy: Interpretivism, positivism, pragmatism and realism are the categories in which the research philosophies are divided in accordance with their suitable with the qualitative and quantitative research types (Pettey, Bracken and Pask, 2017). For the present research, the scholar will use the interpretivism approach as it complements the qualitative research type and through which scholar will be able to challenges whichCascade Breweryfacesin relation to customer perceptionwhile selecting a particular mode of market entry. Research design: It is described as a plan for answering to the problems mentioned in the research study. Descriptive, experimental, meta analysis are some of the types of research designs which the scholars use that aptly suits the aims and objectives of the research (Bell, Bryman and Harley, 2018). In the current study, researcher will use the descriptive research design for the purpose of attaining the aims and objectives of the undertaken research. Sampling: Probability and non probability are two of the main techniques of drawing out a sample for the purpose of carrying out a primary research. Researcher for the present study, use apply random probability sampling for assessing what market entry strategies does theCascade
Breweryapply for expanding its business into the international markets. 20departmental managers will be taken as sample for the current study. Data collection: There are two prime sources through which the data can be gathered. They are primary source and secondary source of data collection. Primary sources involves surveys, observations, experiments, personal interviews etc., while on the other hand, secondary resources involves government publications, statistics, business journals, internet, articles, books etc (Mansell and Huddy, 2018). For the purpose of solving the problems of the present research, the researcher will use primary source of data collection which it will conduct a survey on 20departmental managers ofCascade Brewery. Data analysis: Data analysis is a technique of converting the obtained raw data into meaningful information for the purpose of making conclusions and recommendations. In the present study, the researcher will apply the qualitative data analysis. Ethical considerations: Scholars are expected and required to undertake the research in the most ethical manner possible for building and maintaining the reliability and validity of the research study (Sim and et.al., 2018). The researcher in the present research will consider the following ethical issues such as maintaining the confidentiality of the information, collection of the data from only reliable sources, maintaining the integrity through the research process. Time scale Activities1 week2 week3 week4 week5 week6 week7 week Research proposal Literature review Preparingquestions fordatacollection- survey Collection of data Data analysis
Recommendations and reflections Conclusion
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REFERENCES Books and Journals Agarwal,M.andAgarwal,D.,2018.CONSUMERperceptionononlinevsoffline shopping.South Asian Journal of Marketing & Management Research,8(1), pp.46-55. Ahi, A and et.al., 2017. International market entry: How do small and medium-sized enterprises make decisions?.Journal of International Marketing,25(1), pp.1-21. Ang, S. H., Benischke, M. H. and Doh, J. P., 2015. The interactions of institutions on foreign market entry mode.Strategic Management Journal,36(10), pp.1536-1553. Bell, E., Bryman, A. and Harley, B., 2018.Business research methods. Oxford Corbin, J., Strauss, A. and Strauss, A. L., 2015.Basics of qualitative research. Sage. Dau, L. A., 2018. Contextualizing international learning: The moderating effects of mode of entry & subsidiary networks on the relationship between reforms & profitability.Journal of World Business,53(3), pp.403-414. De Villa, M. A., Rajwani, T. and Lawton, T., 2015. Market entry modes in a multipolar world: Untangling the moderating effect of the political environment.International Business Review,24(3), pp.419-429. Gollnhofer, J. F. and Turkina, E., 2015. Cultural distance and entry modes: implications for global expansion strategy.Cross cultural management,22(1), pp.21-41. Hernández, V. and Nieto, M. J., 2015. The effect of the magnitude and direction of institutional distance on the choice of international entry modes.Journal of World Business,50(1), pp.122-132. Hohenthal,J.,Johanson,J.andJohanson,M.,2015.Networkknowledgeandbusiness- relationship value in the foreign market. InKnowledge, Networks and Power(pp. 187- 224). Palgrave Macmillan, London. Mansell, W. and Huddy, V., 2018. The assessment and modeling of perceptual control: A transformation in research methodology to address the replication crisis.Review of General Psychology,22(3), pp.305-320. Meschi, P. X., Phan, T. T. and Wassmer, U., 2016. Transactional and institutional alignment of entry modes in transition economies. A survival analysis of joint ventures and wholly owned subsidiaries in Vietnam.International Business Review,25(4), pp.946-959.
Pettey, G., Bracken, C.C. and Pask, E.B., 2017.Communication research methodology: A strategic approach to applied research. Routledge. Schwens, C and et.al., 2018. Limits to international entry mode learning in SMEs.Journal of International Business Studies,49(7), pp.809-831. Sim,Jandet.al.,2018.Cansamplesizeinqualitativeresearchbedetermineda priori?.International Journal of Social Research Methodology,21(5), pp.619-634. Tulung,J.E.,2017.ResourceAvailabilityandFirm’sInternationalStrategyasKey Determinants Of Entry Mode Choice.Jurnal Aplikasi Manajemen,15(1), pp.160-168. Yao, J., Oppewal, H. and He, Y., 2018. The Impact of price and size comparisons on consumer perception and choice.Advances in Consumer Research,46.
ANNEX Ethics form Section 1: Basic Details Project title :Different strategies employed by businesses to enter emerging markets Section 2 :Project Summary Please highlight all research methods that you plan to use as part of your project: Interviews: •Questionnaires: •Observations: •Use of Personal Records: •Data Analysis: •Action Research: •Focus Groups: •Other (please specify): Section 3 :Participants Please answer the following questions, giving full details where necessary. Will your research involve human participants? Yes Who are the participants? Ages 12-16 Young People aged 17–18 Adults How will participants be recruited (identified and approached)? Random sampling Describe the processes you will use to inform participants about what you are doing: How will you obtain consent from participants? Will this be written? How will it be made clear to participants that they may withdraw consent to participate at any time?
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The consent will be taken in the electronic written form by the way of emails. An option will be provided in the consent obtaining form that specifies that participants can withdraw any time. Will participants be given the option of omitting questions they do not wish to answer? Yes No The participants will not be allowed to keep the questions unanswered because it will affect the reliability and validity of the findings of the research study which will influence the ethical aspect of the researcher. Will you debrief participants at the end of their participation (i.e. give them a brief explanation of the study)? Yes No Will participants be given information about the findings of your study? (This could be a brief summary of your findings in general) Yes No Section 4:Data Storage and Security Confirm that all personal data will be stored and processed in compliance with the Data Protection Act (1998) Yes No Who will have access to the data and personal information? Departmental managers of the company Where will the data be stored? In the computerised format, hard disk. Will mobile devices such as USB storage and laptops be used? Yes No After the research:
Where will the data be stored? In the centralised system of the company and with the tutor How long will the data and records be kept for and in what format? The data will be kept for 1 month and in electric format. Will data be kept for use by other researchers? Yes No The other researcher can further study the conclusions that willhelp in creating some sound knowledge about the concerned topic. Section 5 : Ethical Issues Are there any particular features of your proposed work which may raise ethical concerns? If so, please outline how you will deal with these: Informed consent. •Potentially vulnerable participants. •Sensitive topics. •Risks to participants and/or researchers. •Confidentiality/anonymity. •Disclosures/limits to confidentiality. •Data storage and security, both during and after the research (including transfer, sharing, encryption, protection). Reporting. •Dissemination and use of your findings.
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