International Marketing and Global Business Report: Kawan Food Berhad

This report examines the international marketing strategies and global business operations of Kawan Food Berhad, a leading Malaysian exporter and manufacturer of frozen food. It analyzes the company's approach to the global economic environment, social and cultural factors, global information systems, and market research. The report delves into segmentation, targeting, and positioning strategies, as well as global market entry methods, including licensing, investment, and strategic alliances. It assesses brand and product decisions, global marketing channels, physical distribution, and communication strategies. The report provides lessons learned and offers recommendations for improving Kawan Food's international marketing efforts, aiming to enhance its competitiveness and expansion in the global market.

Running head: Marketing and Global Business
Marketing and Global Business

Marketing and Global Business 1
Executive Summary
International Marketing refers to export, franchising, joint venture or direct entry of the goods
and services of the organization into other country. This can be accomplished through
exporting the product of the company to another location, entering the target country through a
joint venture with the firm of that country or through foreign direct investment into the target
country. The marketing mix of the target country can be developed by utilizing the existing
marketing strategies or through adopting relationship strategies such as localization, local
product offerings, pricing, production and distribution with certain offers, and promotions.
International marketing takes advantage of global operational variations, likenesses and
prospects to accomplish the global objectives.
So, a report would be formulated regarding the implementation of the principles of International
Marketing and Global Business on the business strategies and operations of Kawan Food Berhad,
which is Malaysia’s leading exporter and biggest manufacturer of frozen food in Asia. Also, the
recommendations would be given to develop and improve them further.

Marketing and Global Business 2
Contents
Introduction.................................................................................................................................................3
Part A..........................................................................................................................................................4
Global economic environment.....................................................................................................................4
Lessons learned.......................................................................................................................................4
Recommendations...................................................................................................................................4
Social & cultural environment.....................................................................................................................4
Lessons learned.......................................................................................................................................4
Recommendations...................................................................................................................................5
Global information systems & market research...........................................................................................5
Lessons learned.......................................................................................................................................5
Recommendations...................................................................................................................................6
Segmentation, targeting & positioning........................................................................................................6
Lessons learned.......................................................................................................................................6
Recommendations...................................................................................................................................8
Part B...........................................................................................................................................................9
Global market entry strategies: licensing, investment and strategic alliances..............................................9
Lessons learned.......................................................................................................................................9
Recommendations...................................................................................................................................9
Brand & product decision in global marketing............................................................................................9
Lessons learned.......................................................................................................................................9
Recommendations.................................................................................................................................10
Global marketing channels & physical distribution...................................................................................10
Lessons learned.....................................................................................................................................10
Recommendations.................................................................................................................................11
Global marketing communications decisions............................................................................................11
Lessons learned.....................................................................................................................................11
Recommendations.................................................................................................................................12
Conclusion.................................................................................................................................................13
References.................................................................................................................................................14

Marketing and Global Business 3
Introduction
International Marketing is the procedure for modifying the strategies of the company to adapt the
conditions in the other countries. It is the process of creating relationships through planning,
executing and regulating the strategies of pricing, promotion and distribution of ideas, products
and services to create mutual exchange which satisfy individual and organizational necessities
and goals (Kozak et al., 2015).
These principles can be applied to Kawan Food Group which is the leading exporter and
manufacturer of frozen food in Asia. It is headquartered in Shah Alam, Selangor. It is known for
providing safe, authenticated and quality products at nominal prices to its customers. The reason
behind its growth is that is committed to the values of excellence, creativity, consistency,
development, and good citizenship (Kawan Food Berhad, 2013).
Its vision and mission statements attribute to its goal of becoming a famous and reliable
company in the food and beverage industry. It aims to expand its business internationally.
So, in this report, the various aspects of international marketing would be implemented on
Kawan Food Berhad. The various aspects of its business strategies such as its operations and
strategies regarding global, social, cultural and economic environment and information and
marketing research systems would also be analyzed and recommendations would be given to
develop them further.

Marketing and Global Business 4
Part A
Global economic environment
Lessons learned
The economic trends in the present scenario in the global market are the growth of ready to eat
foods in the industry. The fast food industry is growing at very fast rate. With reference to the
global environment, competition is the main factor (Sarathy & Banalieva, 2014). It occurs when
a company takes a global view of competition and aims at maximizing its profits by earning
revenues in the foreign currencies. Thus, Kawan Food Berhad is facing a tough competition from
its competitors Strauss Group, Burton’s Biscuits and Popcorn Indiana. Also, with the increasing
competition, it should develop its competencies in functional food, health food, food ingredients,
halal food and convenience food (Ayupp & Tudi, 2013).
Recommendations
The main recommendations to boost the growth of the company in the global economic
environment are that the company should maintain strong competitive position in the global
market. Growth is important for Kawan Food Berhad to ensure that it maintains a competitive
position in the international food market. Also, the strategies and the approaches adopted by the
company should be according to its size (Deloitte, 2017). So, Kawan Food Berhad, being a large
organization should adopt the strategies so that it can accomplish its goal of expanding itself in
the international food market. With the help of intensive strategies and marketing skills, the
company can achieve greater sales in the international market (World Bank Group, 2016).
Social & cultural environment
Lessons learned
The food choices are based on type of cultures and societies in which citizens of a particular
country live. Several factors such as media as a part of the routine life of the individuals also
create a strong impact on their food choices. It also depends upon the type of lifestyle, job and
education, hospitality and size of family.

Marketing and Global Business 5
According to Omara et al, (2015) the cultures and traditions of the country are associated with
special occasions involving food. The festive and special occasions are always concerned with
food and it is often focused on the type of event such as marriages, births, shaving the crown etc.
Recommendations
As Kawan Food Berhad is globally renowned company in the frozen food industry, so it takes
initiatives to promote the Malaysian food to the global level. It should manufacture the
traditional food of Malaysia which reflects the three major unique ethnic food tastes; Malay,
Chinese and Indian.
In the recent scenario, through the social transformation of urbanization, the value of Malaysian
traditional food has increased. So, it has given the company a chance to explore this opportunity
to make the traditional Malaysian food popular in the international market.
As the company is operating in Europe, North America and many parts of the world, it should
promote the Malaysian food to those countries (Ahmeti, 2015).
Global information systems & market research
Lessons learned
According to Bohari, Hin & Fuad (2013) the market research of Kawan Food Berhad using the
PETLE analysis are as follows:
Political Analysis: There are low trade restrictions on the global transactions of the organization
and appropriate assistance is provided by the Malaysian Government to the company. Also, the
company has signed various international trade agreements with various companies operating in
the same industry in the global market.
Economic Analysis: Due to its economies of scale, the company is incurring low costs on its
production. Also, it has big market internationally. It invests on its research and development
activities so that it can expand itself worldwide.

Marketing and Global Business 6
Social Analysis: Due to different family life cycles, various families seek various types of foods.
So, the company serves different food according to the tastes and preference of the customers.
Also, the spending habit of the consumers is increasing due to raise in their incomes.
Technological Analysis: The Company has been adopting the use of new technology in
manufacturing its food. But simultaneously, there is an increase in the developmental costs due
to which there is a decrease in the revenue.
Legal Analysis: with the expansion of the business internationally, Kawan Food has to comply
with the international trade agreements.
Environmental analysis: With the dynamic changes in the global market, there might be too less
suppliers of the raw materials required by the company. Also, there are possibilities of the
company signing new trade agreements with different countries.
Recommendations
Malaysia is leader in the halal food. So, Kawan Food can remain competitive in the global
market as halal food does not have serious market competition. The challenge in front of the
company is that the product variations should meet the demands of the consumers. The
company’s failure to respond to this challenge can corrode its competitiveness of halal food
enterprise as an international player.
As per Rashid (2018) to meet the challenges posed by the rules and regulations, the company
should adopt an advanced level of integration information mechanisms across the supply chain.
It would help in governance and compliance and efficient internal and external communication
systems.
Segmentation, targeting & positioning
Lessons learned
Segmentation, targeting and positioning comprise of three levels in the marketing strategy.
Segmenting refers to determining the type of customers in the market while targeting refers to
selecting the target customers and positioning refers to applying segmentation to customize the

Marketing and Global Business 7
product for the selected segment and adoption of appropriate marketing strategies to market the
product to that specific segment of consumers (Agarwal, Malhotra & Bolton ,2010).
In the context of Kawan Food, segmentation comprises of analyzing about what kind of
customers exist with various necessities. Customers, especially the working couples can demand
ready to eat and healthy food for themselves or for their children. So, the company can develop
suitable products for the working youth particularly, couples.
Targeting involves analyzing the number of manufacturers serving the target segment. Also, the
company should assess the area and the possibilities of developing itself in the segment while
Positioning involves applying the targeting principles upon the chosen segment (Danjuma,
2016).

Marketing and Global Business 8
Recommendations
Different types of variables can be used for segmentation by Kawan Food. The demographic
variables pertain to income, gender, age, education and location. Another variable is behavior of
the consumers for the product. Some consumers are loyal to their brands. They are not willing to
change their choices in spite of the competitor company charging low price for the same product.
Another type of consumers prefers benefits over the price and other features. They are specific
about their choices and would not shift their choice easily.
In targeting, the consumers can be targeted on the basis of advertising in magazines, past
purchases and demographic variables. In order to apply the positioning principle, it is crucial to
comprehend how the brand and competitors are observed by the customers (Boone & Kurtz,
2014).

Marketing and Global Business 9
Part B
Global market entry strategies: licensing, investment and strategic alliances
Lessons learned
According to Azuayi (2016) there are various entry modes for Kawan Food to enter into the
foreign markets .These are divided into two mode viz. non-equity modes and equity modes. The
former consists of export and contractual agreements and the latter includes wholly owned
subsidiaries and joint ventures.
Another strategy which is equally famous is licensing. The licensing firms operating
internationally grant patent rights, copyrights and trademarks on processes and products.
Franchising is another strategy of international market entry. It is a mechanism in which the
franchisers pay royalties to the parent companies in exchange of trademarks being granted to
them by the parent companies.
Recommendations
Kawan food should enter into the emerging market since they provide the most promising
environment for conducting commercial activities. It should adopt a suitable mix of equity and
non-equity modes for entering into the foreign markets (Russo & Cesarani,2017).
Brand & product decision in global marketing
Lessons learned
Product is the most crucial component of the company’s marketing strategy. Kawan Food is
facing the challenge of formulating the appropriate product and brand strategies for its
international market. The decisions relating to product must always address packaging issues
such as aesthetics and labeling.
Branding decisions are important for Kawan Food as it is an important component for the
company to differentiate itself from its competitors. Kawan Food has to develop logos and

Marketing and Global Business 10
innovative and creative packaging styles to provide pictorial representations of its brand
(Išoraitė, 2016).
Recommendations
Since product is the good, service or idea with its physical and incorporeal aspects which create
value for the user or the buyer, it is the most important attribute in the marketing strategy. It
forms the basis for creating goodwill of the company in the market.
The company promises its customers about its products through its brand value. Thus product
and branding decisions are crucial components of the marketing strategy of the company. Thus if
Kawan Food aims to develop its market globally, it should develop its products to meet the
international quality standards. Also, it should leverage its brand equity on a worldwide basis
(Ghasham, Abdullah & Ghani, 2016).
Global marketing channels & physical distribution
Lessons learned
As per Anđelković, Barac & Radosavljević (2017) distribution channels are pathways through
which the products flow from manufacturers to consumers. These include various intermediaries
amongst the two such as wholesalers and retailers which direct the path of goods from producers
to industrial or domestic consumers. For Kawan Food, who is expanding its business globally,
the various global distribution channels include peer to peer selling which comprise of the use of
internet and other related media to sell and distribute its products.
The company can establish direct or indirect channels in the form of retail stores and
wholesalers, agents and distributors to develop its brand image and sell its products (Yip, 1997).

Marketing and Global Business 11
Recommendations
The company can adopt global retailing methods such as establishment of departmental stores,
specialty retailers, convenience stores, supermarkets, discount stores and warehouse clubs to sell
and distribute its products internationally. The global retailing strategies should be according to
the rules and regulations of the host country (Magnusson et al., 2013).
The global retiling strategies include the following:
1. Franchising: Franchising is referred to the payment of royalty to the parent company in
exchange of granting of copy rights and patents to the franchisers.
It includes adoption of appropriate strategies in the case when barriers of entry into the market are
low. But at the same time, the market is culturally different in terms of customer behavior and
retailing structures.
2. Joint venture: The Company can adopt the strategy of joint venture with the company
incorporated in the host country. It is advisable when the culture of the host country is different
and the company is facing problems in entering into the markets.
3. Chain acquisition: It enables the company to acquire the company operating in the host
country.
4. Utilization of the existing resources by the company to open its outlets in the host
country: The Company utilizes its own resources or acquires one or more existing retail facilities
to open its stores in the host country (Szopa & Pękała, 2012).
Global marketing communications decisions
Lessons learned
In order to survive in the international market, the management of Kawan Food has to take some
important decisions regarding global market communications. So, the crucial element of
international marketing communication decisions comprise of targeting the consumers for which
the product is to manufactured and distributed. Since different markets are at different phases of