Marketing local brand overseas Essay Example
Marketing local brand overseas Essay Example

Marketing local brand overseas Essay Example

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  • Pages: 3 (748 words)
  • Published: March 13, 2018
  • Type: Case Study
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Guiding Gram, a unique Indonesian clove cigarette brand, was established in Kidder, East Java in 1979. It gained recognition within the clove industry and secured second place in the "full flavor" category for rolled cigarettes. Made from high-quality tobacco and cloves, Guiding Gram caters to smokers who appreciate the art of enjoying rolled cigarettes. Combining advanced technology with an inherited clove mix formula, Guiding Gram is the preferred choice for connoisseurs.

The reason behind choosing Russia as the market to promote Guiding Gram is due to its large number of cigarette consumers, ranking fourth globally. Clove cigarettes are not easily found outside of Indonesia; hence importing Guiding Gram as a local brand makes it ideal for worldwide distribution, particularly in Russia. Various foreign market entry modes exist that differ based on risk, resource control and commitment levels, and return on investment p

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otential. These include exporting, licensing agreements, joint ventures, foreign direct investment (FDI), and internet-based methods. Each mode presents its own advantages and disadvantages such as risk minimization and speed of entry along with transport costs, trade barriers, tariff expenses, and limitations when accessing local companies. Foreign direct investment offers reduced risk factors while accelerating market entry resulting in higher returns on investment.

However, there may be a lack of control and knowledge spillover. Nevertheless, this approach to learning is seen as an insider one that requires less investment. Other modes of investment may be simpler and easier but can lead to potential errors. PEST analysts evaluate external macro-environment factors including political, economic, social, and technological aspects. Political factors encompass regulations and legal matters while economic factors influence purchasing power and cost of capital. Socia

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factors involve demographics and culture while technological factors can facilitate market entry and shape outsourcing decisions.

In Indonesia, cigarettes are readily available in various locations such as small markets, supermarkets, malls with posters displayed throughout the streets. Despite highlighting the disadvantages of smoking, consumer preference for guiding gram cigarettes outweighs other brands. The thesis statement suggests that importing guiding gram cigarettes to Russia will succeed due to high demand and the habit of smoking for warmth in the cold climate.

The study utilized methods such as graphs, tables, and colorful presentations. The findings from the PEST analysis on Russia indicate political stability since 1993 along with consistent regime policies aimed at attracting investors.Russia relies heavily on natural resources, specifically oil and gas, which has made it the 10th largest GDP in the world. It benefits from its ample agricultural land and strategic location between Europe and Asia. However, its economy is unique due to its dependence on oil prices. Since 1990, there have been political regime changes in Russia resulting in a shift towards democracy. Unfortunately, this change has widened the wealth gap with social stratification based on wealth. The society also demonstrates visible capitalism through lavish spending on luxury cars and clothing. The technology sector in Russia has been developing since the 18th century.

In contrast, Brazil enjoys political stability as the workers party has won three consecutive elections. The government focuses on economic growth by allowing foreign firms to fully own companies with tax-free repatriation of capital and earnings. Brazil is strengthening its economic policies and promoting public-private partnerships to attract global investments. This has significantly improved the country's social aspect as well. Furthermore, Brazil's technological

sector is rapidly growing, leading markets like Milliner to expand there.

However, Milliner's performance in Brazil falls short of expectations with low competitiveness, profit growth, and customer satisfaction.
In contrast, Milliner places strategic importance on Russia, particularly for personal care and vitality products. The graph illustrates the increasing presence of Milliner, especially in emerging markets like D. Importing Guiding Gram to Russia and Brazil has both advantages and disadvantages due to differences in pest analysis and provision between these countries.

Advantages in Russia include a significant number of smokers and a cold climate. It is also closer geographically compared to Brazil. However, obtaining permission can be challenging, and language barriers exist.

On the other hand, Brazil offers potentially easier communication and government grants. However, it is far from Indonesia (the origin of Guiding Gram) and has fewer smokers compared to Russia.

Furthermore, there are various factors that may affect research findings, such as outdated or insufficient websites providing conflicting information. After extensive research utilizing secondary resources from diverse websites, I have chosen to primarily market Guiding Gram in Russia. This decision stems from the country's high number of cigarette consumers, ranking fourth worldwide.

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