Papparich's International Marketing Strategy for Canadian Expansion

This report provides a comprehensive analysis of Papparich's international marketing strategy, specifically focusing on its potential expansion into the Canadian market. The report begins with an introduction to international marketing management and provides an overview of Papparich, a Malaysian food and beverage company. The main body of the report covers a detailed environmental analysis of the Canadian market, including the global trade environment, social and cultural factors, economic conditions, and political and legal considerations. It then delves into global market research methodologies, segmentation, targeting, and positioning (STP) strategies. The report also examines the global marketing mix, including product, pricing, distribution, and communication strategies. Furthermore, it explores various market entry options, such as franchising, strategic alliances, and mergers, with a focus on the suitability of franchising and strategic alliances for Papparich. The report then analyzes online international marketing tools, specifically the RACE model, to enhance Papparich's digital marketing efforts. This includes strategies for reaching the target audience, providing better information, promoting products globally, and conducting pricing comparisons. The report concludes with a summary of the key findings and recommendations for Papparich's successful entry into the Canadian market.

International
Marketing
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2 ...........................................................................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
International marketing management is a multinational process in which an organisation
plan and execute the concept of distributing products as well as services at different locations to
satisfy the objectives of business. This programme is classified in three different categories as
marketing, financial planning and implication of investment as well as research practices. This
report is based on Papparich which was established in the year of 2005. The organisation belongs
to food and beverage industry in Malaysia and now plan to explore Canadian market for business
expansion. This report is going to cover some important aspects of global market as
environment, global market approach, marketing mix as well as global market entry option for
the organisation. Addition to this, the report will also cover other aspects of online international
marketing such as Better information, Promote product globally, Pricing comparison, Online
consumer behaviour, Language, Supplier and CRM model (Lee and Carter,2011 ).
MAIN BODY
TASK 1
Environment
 Global trade environment – Canadian food industry has a superior reputation in global
market. It has a strong regulator framework for existing and new business organisation
that gives an edge to Canadian food industry over their international competitors. Similar
to this, NAFTA and WTO has altered trade agreement which affects the flow of products
across the borders along with labelling and safety requirement. Country of origin
labelling (COOL) of meat in Canada has resulted in raising the tariff which has a direct
impact on the cost of producing variety of food items of Papparich.
 Social and cultural environment- Canada is a multicultural country. Due to this, the
food culture is highly influenced by the nature and food habits of the consumers (What is
Canadian Food Culture?, 2019). The customers are more focused on healthy
consciousness, food safety and environment. This, in order to start the business in Canada
market, Papparich needs to keep these factors as a priority while entering the market.
Additionally, the increasing ethnic diversity in Canada has lead to interest the customers
in more speciality food items (strategic Planning Analyses: The Food & Beverage
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Industry, 2019). This provides a scope of growth for the Malaysian themed restaurant
Papparich to establish a successful business in Canada market.
 Global economic environment- The increasing growth rate and high disposable income
of customer have a direct impact on food industry of Canada. This provides an
opportunity to earn more amount of profit share for Papparich from the market of
Canada. Addition to this, the number of employees working in food industry of Canada is
approx. 2.3 million which shows the market size of food industry of the respective
country (By the Numbers: The food industry and Canada’s economy, 2019). Hence,
Papparich can help in economic growth of Canada by providing job opportunities to the
locals which will increase the employment rate of the country.
 Political and legal- There are various political and legal factors that can affect the food
industry of Canada. Some of these are increased number of international trade
agreements, involvement of the government in economy, lesser trade protection, etc.
Addition to this, there are various regulations related to food industry such as Food and
drug regulation, Safe food for Canadians regulation, etc. which are need to be followed in
order to operate in food industry (The Safe Food for Canadians Regulations: Advancing
Food Safety, 2019). Thus, Papparich needs to consider these regulations and legal
frameworks in order to operate in the food industry market of Canada.
Approaching global market
 Global market research- It can be defined as a process of gathering information about
the customers and their preferences regarding the needs and wants. There are two
methods to collect information which are primary research method and secondary
research method. These are discussed below:
◦ Primary Research method- It is a method which involves gathering information
directly from the customers. It includes interviews, surveys, etc. (Terpstra, Foley and
Sarathy, 2012) Thus, Papparich can conduct various surveys which will help in
understanding the demand of the customers of new market.
◦ Secondary Research method- This method involves collecting data from published
sources such as internet, documents, etc. Hence, Papparich can take advantage of this
method by collecting data of the customers and market through different websites and
government agencies.
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 Segmentation, targeting and positioning- Also known as STP is a tool which helps in
positioning the product of the company in market. Thus, STP of Papparich is mentioned
below:
◦ Segmentation- It is a process of dividing the customer in small groups based on their
demographics, Psychographics, geographic, etc. The demographics segmentation
includes age, profession, status, gender, etc. Similarly, Psychographics includes
lifestyle, beliefs, culture, etc.
◦ Targeting- After Segmenting, the target customers are selected based on the nature
of the product and services. As Papparich is a family restaurant chain, the targeted
customers are from different age groups (Helsen, 2011). Similarly, geographical
segment can also be targeted as per different locations and demand of restaurant in
Canada. Also, based on Malaysian cuisine, customers from similar backgrounds or
taste are focused.
◦ Positioning-This element helps to position the product of company in existing market
or industry. As Papparich has a unique selling point of Malaysian cuisine with pocket
friendly prices, it holds a strong position in the market.
The global marketing mix
 Brand and product decisions in global marketing- Papparich is a restaurant which
deals in Malaysian cuisine. Along with the, the respective company also deals in selling
packaged products like Papparich white coffee.
 Pricing decisions- The price of the products and services are need to be set in a manner
that it can be afford by the target market. Additionally, the price of the products should be
according to the competitors in the Canadian market such as Penang Bistro Fine
Malaysian cuisine restaurant, etc.
 Global marketing channels and physical distribution- Papparich is conducting its
operations in many countries such as China, Australia, New Zealand, USA, etc.
(International, 2019). However, there are many areas which can be explored by the
respective organisation such as Japan, UAE, Canada, etc.
 Global marketing communications decisions- Papparich has come up with its own
application which enables the customers to earn loyalty points and redeem them at next
purchase or dining (PAPPARICH APP UPDATE, 2019). Additionally, respective
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company practice different promotional tools such as advertisement, social media
marketing, digital marketing, etc.
Market entry
There are various methods to enter in a new market. As Papparich is looking forward to
expand its business. Some of the methods that are most popularly used by different companies
are licensing, franchising, mergers and strategic alliance. However, the method that is most
suitable for Papparich as Franchising and Strategic Alliances. These are discussed below:
Franchising- It is referred to an agreement between a franchiser and a franchisee in
which the franchisor provides a license to the franchisee to conduct operations using their
trademark and company name (Franchising, 2019). In order to maintain the quality, various
training sessions are provided. Also, the franchisor helps in marketing, organizing and managing
the outlet. However, certain monitory charges are taken as a royalty. Hence, Papparich can adapt
this style of expansion to enter new market of Canada by giving franchisee. This will also help in
earning monitory benefits to the respective company.
Strategic alliance / cooperative alliance – It can be describes as a business arrangement
which involves two or more companies cooperate to achieve mutual benefits. With the help f this
method, companies can acquire expertise, share knowledge and expenses. Additionally, it is one
of the most favourable method to enter in a new market (Smith and Zook, 2011). The local
company can provide information about the local market, distribution network, customer
preferences, etc. Hence, Papparich can come into a formal agreement with local food chains of
Canada such as Jon Smith Subs, The great Greek Mediterranean grill, etc. which will give a
positive opportunity to explore new market and have less chances of business failures.
Merger- It is an agreement which unify two different companies into one new
organisation. This method is usually adapted to enhance the reach of company, gain new market
share or expand into new segments. There are various benefits of merger for a company. It helps
in economies of scale which is the cost benefit that an organisation earns due to merger.
Similarly, it helps in tax benefits, entry in global market, growth and expansion. Hence,
Papparich can practise this style of expansion by merging their company with similar
organisations of Canada such as Baton Rouge Canada which can help in grabbing the existing
market and provide a great scope of expansion to Papparich (FIND YOURRESTAURANT,
2019).
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TASK 2
There are various online marketing tool which helps in providing wider scope of growth and
customer retention for a company. One of the most common online international marketing plan
model is RACE model of communication planning which can be applied on the digital marketing
practices which requires a strategic approach for the need and nature of business and products.
Hence, Race model is applied in Papparich to fulfil the need of online marketing in the
international market. The respective model is discussed below:
Reach target audience-In this process target audience of Papparich can reach from
blogs, social media, search engines and publishers that can implement smart search engines,
social media marketing , public relations, press releases and paid advertisement campaigns
through google , Facebook and linked in that will help to digitalise technology which can makes
all people to make a digital plan.
 Better information- Providing accurate information is very important for an
organisation. Hence, through RACE model Papparich can provide accurate and adequate
information on different platforms such as Social media marketing, blogs, publishers, etc.
These are some of the best means to provide information of the company on a broader
context through different modes which helps in promoting the brand value and sales of
the products. Through effective digital promotions, Papparich can educate the customers
about their product range and promote their unique selling point which is the cuisine of
company. Apart from this, the information can be provided through blog marketing,
video marketing which are very much trending in online marketing. It helps in building a
strong connection and interaction between the organisation and international customers
which also enhance the reputation of the restaurant company. Papparich can reach reach
the target customers and convert the leads into positive sales through promotion, product,
sales pitch, etc. (Ruigrok and Van, 2013).
 Promote product globally- Promotion is very crucial for a business as it helps in
providing a scope of sales growth and profit earning for a company. Thus, by applying
RACE model, Papparich can easily promote its product and service on an international
level through various platforms such as social media, websites, digital marketing, etc.
Digital marketing is one of the best tool to promote products globally in a cost effective
manner. Other modes of promoting the services of Papparich in global market is through
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press releases and paid add campaigns which can assist the organisation by advertising on
different platforms such as LinkedIn, Facebook and google Adwords.
Act on strategy- Papparich can makes effect on strategy through websites, interactive
tools and community process that can have smart forms, drip marketing,sales process
refinement , newsletters and email marketing which can make tool to reach in every corner of an
organization which is helpful in this process.
 Pricing comparison- It can be described as comparing price of the same product in
various outlets. Thus, the price range of products offered by Papparich in Canada are
comparatively low as the respective company adapts penetration pricing strategy in order
to attract customers in the new market. Also, with the help of RACE model, the online
traffic towards the website is increased which can help the customers to compare rises of
similar products in the market which helps Papparich to earn competitive advantage in
the Canadian market. Also, with these respective digital tools, Papparich can practice
price promotion which is a promotional tool n which the price are offered at a low price
for a temporary time. This can help in attaining new market of Canada where the
respective organisation is expanding its business.(What is R.A.C.E.?, 2019)
 Online consumer behaviour- The buying behaviour of customers through online portals
can also be understood through RACE framework. As the customers reach the official
website, they can access the information of different product and services through which
the individuals can make various transactions. Addition to this, it also helps in collecting
data about the type of data searched which helps in collecting information regarding the
choice and need of the customer. Along with this, it helps in analysing the consumer
behaviour by examining number of time the customer logged into the website through
which Papparich can define its prime customers and provide them better services.
Convert leads- The company can convert sales with an effective e-commerce process,
price, product sales pitch and through promotion which can make A/B testing, convert rate
optimization practices to digital media, lead gathering and through websites audits which can
help audience to target all strategies to reach through online portals to make an effective
digitalise technology (Gilligan and Hird, 2012).
 Language- An effective language is very important for promotion of a company.
However, it becomes a complex affair when it comes to international market due to
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differences in language in each corner in the world. Thus, to have an effective
international online marketing, Papparich will have to translate the advertisements into
local languages speak in the area. For example, while making an attempt to apply online
promotion in Canadian marketing, Papparich will have to translate the advertisement into
French and English as these are the most popularly used languages in Canada (Languages
in Canada, 2019). Another barrier for international marketing is culture barrier. Every
culture have different belief and attitude towards different schemes. Thus, it is important
for Papparich to understand and respect the culture differences by planning the
advertising strategy keeping in mind the differences of attitude of people.
 Supplier, response quick- The key responsibility of a supplier is to provide quality
material material in the given time frame to the company. With the help of effective
accessibility in international market through online tools, Papparich can easily approach
different suppliers and compare their prices and quality of raw material. Also, the digital
tools can help in speeding up the whole process of production through which Papparich
can provide services to the customers in right time which will enhance the experience of
customers.
Engage Customers- Papparich can engage all parties through content marketing to build
customer relationships , loyalty and improve public relations, goal of Papparich is to capture
attention and interact with users in a captive way that triggers emotion of all customers to make a
marketing concepts . Company can use blog marketing, video marketing , white papers ,
newsletters that will help to make a technology to be capture by each and every customers in an
organization. It can leads to best practices for increased leads and conversions for engagement of
R.A.C.E marketing of Papparich company. This helps in enhancing the experience of the
customers and helps in providing quality services to the product users. One of the most effective
method of engaging customers is through Customer Relationship Management.
 CRM model- CRM model refers to strategies, technologies and practices that companies
use to manage, analyse customer interactions and data throughout customer life cycle
with a goal to achieve customer service relationship and assist customer retention by
making sales growth. Papparich can manage company operations to make current and
potential customers that can analyse data to improve customers relationships. This model
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can help to explain how Papparich can take four actions to build, keep and retain long
term relationship with customers (CRM Models, 2018).
◦ Identify- Papparich must identify who will be actual customers and who knows deep
knowledge about customers . It is necessary to build supply chain for making more
customers in company that can make sustainable growth .If company can engage
more customers then company can easily make profit and can make competition with
other companies.
◦ Differentiate- CRM can make differentiate customers on basis of two technique ,
first will be value and second will be need. Value can make to differentiate customers
of Papparich to find more values for future and can give more values to those
customers who can generate more profits for company. Need can make Papparich to
differentiate all needs of customers by making profitable by enhanced long term
future profits.
◦ Interaction - Papparich can emphasise on interaction of customers that can make
identity for brand and for making customer expectations that can fulfil all values and
needs of customers. These efforts can make customers to be loyal and can maintain
long term goals.
◦ Customize- When company differentiate customers according to needs and values
Papparich have to check what values and needs are they offering. Communication is a
basic tool for make customers engage and to cope up with need , failure of needs can
make customers to initialise long term planning and make different strategies.
Thus, by applying CRM tool, Papparich can enhance its customer engagement which will
help the respective organisation to earn customer loyalty and improve its public relations. The
newsletter and story telling web copy can help in keeping the customers engage for long run
which assist in customer retention. This provides a scope of future sales growth for the company
and helps in managing new market and expansions.
CONCLUSION
From the above discussion, it can be concluded that International marketing management
is very crucial for an organisation. There are various factors which are involved in international
marketing such as approaching the global marketing through segmentation and targeting,
understand different aspect of global environment such as social and culture environment, global
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economic environment, etc. Apart from this, there are various external factors which are crucial
for decision making of the business such as product, promotion, price, etc. Similarly, there are
various methods of market entry out of which franchising and strategic alliance are the best
suited option as per the nature of the respective company. In order to manager online
international marketing planning, RACE model is applied which helps in managing different
factors such as global promotion, Customer relation management, and many more.
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REFERENCES
Books and Journals
Lee, K. and Carter, S., 2011. Global marketing management. Strategic Direction, 27(1).
Kotabe, M. and Helsen, K., 2011. Global marketing management. Hoboken, NJ: Wiley.
Terpstra, V., Foley, J. and Sarathy, R., 2012. International marketing. Naper Press.
Smith, P. R. and Zook, Z., 2011. Marketing communications: integrating offline and online with
social media. Kogan Page Ltd..
Ruigrok, W. and Van Tulder, R., 2013. The logic of international restructuring: The
management of dependencies in rival industrial complexes. Routledge.
Gilligan, C. and Hird, M., 2012. International marketing: strategy and management (Vol. 17).
Routledge.
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option=com_content&view=article&id=31127:the-food-industry-and-canada-s-
economy&catid=9752&Itemid=6&lang=en>.
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industry/404420/
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International, 2019. [Online]. Available through:<http://papparich.com.my/international/>.
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beverage-industry/>.
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