International Marketing Communication Plan: Coffee Bags - Malaysia

This report formulates an international marketing communication (IMC) plan for Coffee Bags by Brew N Bread, targeting Malaysia and Singapore. It includes a situation analysis, internal environment analysis (strengths and weaknesses), external environment analysis (opportunities, threats, PESTLE, and Porter’s Five Forces), segmentation and targeting strategies, and a positioning strategy. The report also presents a budget for promotion and five SMART IMC objectives. The analysis assesses the marketing environments of both countries to determine the most suitable location for the product launch. Desklib is a platform where students can find similar solved assignments and past papers.

Running head: INTERNATIONAL MARKETING COMMUNICATION
International Marketing Communication
Name of the Student:
Name of the University:
Author note:

1
INTERNATIONAL MARKETING COMMUNICATION
Executive Summary
This paper has been elaborated on formulating an international marketing communication
(IMC) plan for a new product called Coffee Bags of Brew N Bread. The chosen locations for
the marketing communication plan of the product are Malaysia and Singapore. However, the
paper has assessed the strengths and weaknesses of this product and what opportunities and
threats it might face in these countries. With the same, the paper has also shed light on
comparing the marketing environment of both the countries in order to assess which would be
the best suitable one. Several different environment analysing tools have been used for
assessing the external market environment for the product. They are- PESTLE and Porter’s
five forces. Furthermore, a budget plan for the promotion of the product in this international
boundary has been presented.

2
INTERNATIONAL MARKETING COMMUNICATION
Table of Contents
1. Introduction............................................................................................................................2
2. Discussion..............................................................................................................................3
2.1. An abbreviated or summarized IMC situation analysis..................................................3
2.2 Internal Environment Analysis........................................................................................3
2.2.1. Strengths...................................................................................................................3
2.2.2. Weaknesses..............................................................................................................4
2.3 External Environment Analysis.......................................................................................5
2.3.1. Opportunities............................................................................................................5
2.3.2. Threats......................................................................................................................5
2.3.3. PESTLE analysis......................................................................................................5
2.3.4. Porter’s five forces...................................................................................................7
2.4 Segmentation and targeting..............................................................................................9
2.5 Positioning strategy........................................................................................................10
Budget for promotion of the Coffee bag..............................................................................11
2.6 Five International Marketing Communication objectives (SMART guidelines) (200). 12
3. Conclusion............................................................................................................................13
References:...............................................................................................................................14

3
INTERNATIONAL MARKETING COMMUNICATION
1. Introduction
International marketing refers to the application of the principles of marketing to more
than one nation or national boundary (De Mooij 2018). It is basically done to satisfy the
needs of the different people belonging from different segments residing all over the national
and international boundaries. It is based on different strategies that are created in the home
country of the company and then, is distributed to the other offices. Expanding the business
internationally requires much effort and strategic planning. However, it is to note that the
process of planning, execution of the rates, the promotion strategies as well as the distribution
of the product and the services are same all over the world. In this contemporary world, the
companies are not limited to their national boundaries (De Mooji 2015). In fact, they are open
for internationally marketing their products and services worldwide. Along with the ever
increasing change in the demands of the customers, their choices, preferences and tastes, the
world economies are expanding and is giving way to some more competitive marketing.
Thus, organizations need to respond rapidly to the demands of the customers with well-
defined marketing strategies.
The main purpose of this report is to formulate an international marketing
communication (IMC) plan for a new product of Coffee Bags of Brew N Bread in one of the
two chosen countries- Malaysia and Singapore (Yilmaz, Acar-Tek and Sozlu 2017). Brew N
Bread provides diversities on both the food as well as beverages along with chef
recommendations specified for each of the section in the menu such as for the main course,
dessert, appetizer, beverages etc. This report shall briefly elaborate on analysing the
competitive edge and internal and external environment of the two chosen countries in order
to find out which would be the best suitable location for the product. This paper shall present
a summarised IMC situation analysis and with the same, it shall discuss on the strengths and
weaknesses of the brand. Furthermore, it would provide a brief on the industry trends in the

4
INTERNATIONAL MARKETING COMMUNICATION
identification of the threats and opportunities for the chosen product. The identification of the
consumer trends shall also be included under this segment.
2. Discussion
2.1. An abbreviated or summarized IMC situation analysis
IMC situation analysis stands for Integrated Marketing Communication or
International Marketing Communication situation analysis. A situational analysis helps in
providing a deep insight into both the external and the internal conditions which could result
in a more effective marketing communication strategy (Ots and Nyilasy 2015). It is also to
note that this is also often referred to as SWOT analysis. It is a well-structured method for the
evaluation of the internal weaknesses and strengths of the company or the product and the
other potential external opportunities and the threats that could influence its business and
operation in the international market (Luxton, Reid and Mavondo 2015). In this paper, for
implementing the IMC strategy, both the external and the internal relevant situation are
required to be analysed. By assessing these two components, the determination of the core
competencies of the company would be very useful. With the same, it would also help in
shaping the potential profits as well as in strengthening the overall performance of the
organisation.
2.2 Internal Environment Analysis
2.2.1. Strengths
a) Variety- There are different flavours to the coffee bag such as vanilla, caramel,
mocha and cinnamon dolce flavour. With the same, for other aged groups and for the youths,
it would manufacture top-quality and fresh products and with the same, it would sell them all
these at very low and affordable costs. Brew N Bread provides diversities on both the food as
well as beverages along with chef recommendations specified for each of the section in the

5
INTERNATIONAL MARKETING COMMUNICATION
menu such as for the main course, dessert, appetizer, beverages etc. It is done especially to
cater the needs of the customers for the uniqueness at their visit to the shop for the first time
as well as to satisfy the different types of customers. With the same, it allows the customers
to choose from its vast portfolio of products and services. It has high quality and unique
products and services to offer its customers. Furthermore, it does not need added hot water
for making it. It can work on both cold and hot water. With the same, the price that has been
set for the product is also affordable to buy by any customer segment as it comes in all the
three types of packaging- small, medium and large. Brew N Bread provides board games,
chess and various other card games as well to keep the young ones involved. It also enables
the customers to enjoy their beverage and meals along with having fun with their friends and
families.
b) Employee engagement- The Company has a good level of employee engagement.
It have potential and well-skilled employees who give their best to provide best services to
the consumers. With the same, Coffee bags are prepared with top quality processors.
2.2.2. Weaknesses
a) Brand awareness- The customers are not aware of the brand as well as the product as it is
new in the Malaysian and the Singaporean market. Although, the product is unique and can
be consumed very easily, still, the customers are completely unaware of it and also, buying a
product and a brand that is completely new to them is matter of great concern for almost
every customers. Near about every individual hesitate to buy a product about which they are
not sure and are new to the market.
b) Prices- The price of the Coffee bag for the low-income customers is very high. As a result,
customers could change their mind to buy Coffee bags from this brand and would go for its
other potential competitors who are selling the product with comparatively lesser price range.

6
INTERNATIONAL MARKETING COMMUNICATION
Although, it comes in various packaging right from small to large packages, still, for the poor
customer segment, it might be hard to afford.
2.3 External Environment Analysis
2.3.1. Opportunities
The new products and services could be retailed in the market (Valos et al. 2016). The
product- coffee bag would get a huge chance of expanding its business in national and
international market. With the same, it can also engage in co-branding activities with the
other manufacturers of coffee present in Malaysia and Singapore region. The company can
also form a long term relationship with the other significant coffee producers in the market in
order to improve and enhance its product quantity and quality.
2.3.2. Threats
One of the most significant threats for Brew N Bread in the Malaysian and
Singaporean region is that there are several potential competitors who are leading the
business market. The demand for coffee is rapidly increasing among the customers and this
has resulted in an increasing competition in this sector. In Malaysia, its main competitors are
Pacific Coffee, Dr Café Coffee and Doi Chaang Coffee. On the other hand, the major
competitors of it are Dazzling, Schmear, Spinelli and the Fine Coffee Company.
2.3.3. PESTLE analysis
PESTLE Factors Malaysia Singapore

7
INTERNATIONAL MARKETING COMMUNICATION
Political  As far as the political
stability is concerned
Malaysia witnesses an
average of 0.22 points
(Milner 2018).
 Type of political
framework is republic
with parliamentary
democracy.
 As per the corruption
index, Malaysia ranks 54
all over the world
(Milner 2018).
 On the contrary,
Singapore enjoys more
stable political
environment.
 The average political
stability is 1.22 (Teo
2015).
 Lowest political risks in
the continent with a low
corruption index is
identified as an
important aspect in
Singapore.
Economic  The economic growth is
slow.
 The rate of growth is
4.7% in 2018 in compare
to 5.9 last year that is
considered to be a great
threat for the country.
 The government tries to
resolve the problem with
National Transformation,
2050 program.
 High unemployment rate
with an average growth
of 3.5% or 22.3
thousands.
 In terms of the foreign
exchange rate the
depreciation rate is about
27.5% against the USD
in 2015.
 High GDP and
increasing economic
development are the
basic factors of
Singaporean economy.
 The GDP increase from
309.75 billion in 2016 to
346.62 billion in 2018
that is brilliant for
Singapore.
 As per economic
freedom Singapore ranks
2nd with a score of 88.6
out of 100.
 Diversifying economy
with a number of
industries like the
tourism, pharmaceutical,
IT and so on.
 However, high labor cost
is a problem for
Singapore to manage
human resource.
Social  Diverse ethnicity and
religious differentiation
are the key features.
 Moreover, high rate of
alcohol abuse is a threat.
 Problems in high
unemployment rate.
 High tendency among
the young generation to
follow western culture
and values.
 High purchasing power
of the customers.
 High literacy rate with
god knowledge in
English.
 Primary schooling is
compulsory with proper
parental care.
Technological  Growing adaptation of
technological skills.
 High trend in
technological

8
INTERNATIONAL MARKETING COMMUNICATION
 Expected growth in the
e-commerce business up
to US$ 6.2 billion from
e-commerce (Phelps and
Dawood 2014).
 Strong banking sector
with good distribution
networks.
 As per the report in 2015
Malaysia had 20.6
million internet users.
advancement.
 Growth in
communication and
increase in connectivity
are the main
characteristics.
 High IT infrastructure
with the emerging trend
in the e-commerce
business.
 70% of the household
has broadband internet
(Spieser 2014).
Legal  Following the British
legal framework.
 Minimum wage law for
the laborers.
 The minimum wage is
1000 ringgit which is
higher than most of the
South-East Asian
countries.
 Adverse impact on the
foreign investors to
penetrate into the
market.
 Putting emphasis on the
educational sector with
highest fund.
 E-Commerce program
launched in 1996.
 Supporting both the
interests of the
customers and the
investors.
 Important acts are
Electronic Transaction
Act, Intellectual Property
Rights, Content
Regulation, Tax related
acts and duty acts.
Environmental  Eco-friendly approach
with more emphasis on
the tourism and farming.
 Highest rate of
deforestation.
 It proves the inadequacy
of the government to
take the environmental
issues seriously.
 One of the greatest
Carbon dioxide emission
rates.
 Ministry of Environment
and Anti-Pollution Unit
are responsible to control
the environment.
 Depends on Malaysian
Water Supply due to lack
of water resources.
2.3.4. Porter’s five forces
1. Threats of new entrants- The threat of new entrants in the snacks industry is quite high.
There is a significant threat by the new as well as the existing competitors present in
Singapore. It is to note that the coffee and snacks industry is one of the most profitable

9
INTERNATIONAL MARKETING COMMUNICATION
industries that is quite potential of attracting competitors. The nature of the Singaporean
market is competitive and this means that the demand of the customers in the market is high.
As per Michael Porter, the threat of New Entrants shape the competitive structure of the very
industry (Boyd, Royer and Goto 2018). The Coffee bag is quite less expensive product.
However, the brand would be completely new to Singapore and also the required investment
would also be quite low. Also, the barriers to entry is low and hence and this makes the threat
of new entrants high as because of the low switching cost and low requirements of capital.
With the same, restrictions would also be low.
2. Threats of Substitute- The threat of the substitute products is also low. As the coffee bag is
something that could be consumed with both hot and cold water, hence, its competitors in the
Singaporean market is low.
3. Bargaining power of the suppliers- The bargaining power of the suppliers for this product
is medium. The powerful bargaining power of the suppliers, the buyer and the seller has a
great influence on the totality of the business. Such impact could in turn reduce the profit of
the buyers more favourable pricing, the quality of the service and the product limit. There are
several farms in Africa and South America who supply coffee. Also, the coffee farms are
comparatively less than a third. However, it is medium due to the fact that there is a huge
array of farmlands which supply the speciality coffee beans.
4. Bargaining power of the buyers- One of the five forces of Michael Porter is the bargaining
power. The bargaining power of the buyers refers to the pressure of the customer that they lay
on the enterprise and this allows the firm to provide a comparatively higher quality of
products as well as with better customer services and lower prices (Fabbri and Klapper 2016).
It is to note that the demand of coffee is always very high among the customers belonging
from every age range. Hence, the number of buyers in this industry is very large but their

10
INTERNATIONAL MARKETING COMMUNICATION
purchases are of very low volume. The services, experiences and the products are
differentiated. A cup of coffee does not represent a significant fraction of the cost of living of
the buyer. The power of buyers is low because of that they lacked the negotiation power and
the ability to force down the prices and the pit competitors against one another.
5. Rivalry among the existing companies- The rivalries under the existing companies within
this industry in Singapore is also medium. It is increasingly competitive in nature. When any
competitor see the opportunity to develop and grow, they try their best to improve the product
as per the demand of the customers. It is to note that the competition within the industrial
competitiveness is a very significant issue and there would be many competitors who are
trying to carry out a sufficient rate of return on the investment. With the same, the
profitability is basically very low. There are several competitors in the Singapore market.
2.4 Segmentation and targeting
The term segmentation in the field of marketing and communication refers to the
process of dividing the customers into various groups on the basis of their needs, behaviours
and characteristics (Katz, Lazarsfeld and Roper 2017). It is one of the most effective strategy
which could led to more efficient and effective use of marketing, particularly in the field of
advertising. With the same, it is also believed that the advantages that people are looking for
in the consumption of a particular product are the key reasons from the existence of the true
market segments and are the better determinants of the behaviour as compared to the other
approaches of segmentation. Therefore, Brew N Bread divided its service into three main
segments that are- the price hunter, the health platter and the sophisticate on the basis of the
sought benefit.
Moreover, the term targeting refers to the process of evaluation of the attractiveness
of the each market segment as well as the process of selection of one or more segments to

11
INTERNATIONAL MARKETING COMMUNICATION
enter into the market as well as to determine the market segment that is the most desirable
and the most appropriate for the established marketing efforts (Grant 2016). Bread N Brew is
a very luxurious and unique company in terms of features, services and product portfolio. The
target market for the product would be people ranging from the age range of 15 to 50 years.
Under this, they shall be divided into segments- children, youth and the elder ones. For
maintaining the target market, the company would offer different attractive discounts on the
products and services.
Bases of
Segmentation
Variables Health platter Sophisticate Price hunter
Geographic Location Inner-city Inner-city Rural and
Suburban
Behavioural Benefit sought Healthy and
quality of food
Nice ambience
and hygienic
environment
Economic price
Psychological Personality Moderate
consumer
innovativeness
High customer
innovativeness
and low
customer
dogmatism
Low need for
uniqueness and
low variety
seeking
Demographic Age 25 to 50 years 20 to 40 years 15- 40 years
Occupation Professionals University
students
White collar
employees
Blue collar
labour
Agricultural
Teenagers
Education Degree Degree Mid to high
school and
universities
Income Medium to high Medium to high Medium to high
2.5 Positioning strategy
For enhancing the positioning of the brand in the Malaysian and the Singapore
market, the firm would mainly focus on the product characteristic which give benefits to its
consumers as well as would attract a vast amount of customers towards the coffee bag. The
positioning strategy for the children is that they would make add different flavours to the
coffee bag such as vanilla, caramel, mocha and cinnamon dolce flavour. With the same, for