Introduction
International marketing refers to the border-less and geographical delimitation operation of organizations. This is a complex concept of international business because of the considerable number of uncontrollable variables that should be considered with regards to national factors (Onkvisit & Shaw, 2004). However, international marketing is different from global marketing because the latter refers to the interaction of national economies rather than on the direct flow of the goods and services of an organization from a home country to other countries. On the other hand, domestic marketing focuses on the local operations of the organization only, rather on on direct interaction with foreign companies.
Yet, it is impossible to define the difference between international and domestic marketing within only the criteria of their scope. There are other factors that place the gap between these two marketing sections. But these factors still follow the fundamental concept of marketing which focuses on planning, execution of the concept, distribution of the idea in terms of products and services, and the exchange of satisfaction from the organization to the customer.
Mainly, the scope of marketing is the first variable that sets these two marketing approaches in different direction. Domestic marketing focuses only local market, thus having only limited scope (Keillor, 2011). But international marketing allows the organization to explore endless opportunities and scope. The added incentive of foreign currency is big advantage to organizations that work on international marketing; it allows them a wider advantage of utilization of currencies that can be used for export and import of raw materials. While in terms of technology, international marketing allows the employment and sharing of advanced technologies that are used by other international organizations. This allows the organization to improve its marketing approaches and strategies to benefit financial returns. Aside from advantages and benefits, international marketing must also deal with barriers and issues such as political relations between countries, whether cooperation or chaos between them, and the barriers of customs, differences, traditions, currency, and language.
This paper reviews the international marketing process and decisions of Al Jufair Food Industry LLC. Al Jufair is an Oman-based company that produce Potato Chips; 'Chips Oman' is the most popular product of the company. In 1989, Al Jufair was founded as part of the Al Shaihani Group of Industries to focus on the potato and wheat-based products. Al Jufair products become popular not just in the Sultanate of Oman, but also across the entire Gulf region. This success is attributed to the successful international marketing adopted by the company.
Main Body
There are several reasons why Al Jufair should broaden its international marketing and not just within the Gulf region. According to Tielmann (2010), these reasons that persuade companies to go international can be proactive or reactive. Al Jufair enjoys steady market and revenue growth in the Sultanate of Oman and in the entire region—this shows a promising market opportunity in other major markets. The organization's core competencies can be expanded and implemented in new markets to expand the profit generation capability of the company. The organization can replicate its success in other regions aside from the Gulf area by implementing its strategies and responses.
With the growing competition of the food industry in the Sultanate of Oman and in the Gulf region with the entry of new market and business players, Al Jufair must be reactive in facing the competition threat. Aside from domestic new market players, international companies are also erroding the market base of Al Jufair; some international food companies within the category of Al Jufair that are already in the Middle East region include: Kettle Foods from Oregon, USA, and PepsiCo, Inc. These companies have solid market base in other international markets that they can use to gain market share in the Middle East region. Al Jufair had to confront the competition in firsthand to ensure steady growth even in the midst of competition.
Another important factor why Al Jufair should go international is the presence of Muslim communities across the globe. Al Jufair products adhere to the standards set by the Islam and Muslims can easily identity themselves with the product. With the growing global presence of Muslims across major markets, Al Jufair anticipates that future growth of this opportunity. By leading a strategic advantage now, Al Jufair will be able to cement its stronghold before any Middle Eastern food company or organization does.
Al Jufair's international marketing introduction can follow product standardization. As stated above, an important part of the international expansion of the company is to meet demands and needs of Muslims across major markets. Product standardization allows the company to market the same products they do in the Gulf region. As such, this would allow the company to focus on a single product and this would allow consumers to get the same product specifications anywhere in the world. The organization replicates its core competencies and strengths in the Middle East region as part of its international marketing direction. Yet, the company cannot also close doors for segmentation of the market as it moves international due to the varying specifications of demands of consumers.
Hou (2011) asserts the claim of standardization of organizations in the process of international marketing. This principle is anchored on the idea that the organization can succeed in reaching to its consumers without regard to the superficial regional preferences and differentiation. With the aid of standardization, the marketing mix of the company follows the same order and process. This simply means that the customers demands and needs are general and common, regardless of customs, traditions, and other social behavior. Most international products such as PepsiCo, Inc. and automobile organizations follow the same standardization of marketing mix to replicate success.
Mainly, it is necessary for Al Jufair to make the product available to its consumers. By creating partnership with distribution channels across different markets, it is easier for Al Jufair to increase customer engagement. And of course, as part of standardization, the price of Al Jufair products should be kept in uniformity with considerable account of the cost of transportation and distribution. Creating awareness among members of the Muslim communities is central to the success of Al Jufair international marketing. By harvesting this strength, it would be easier for Al Jufair to communicate to other market segments.
The Potato Chip of Al Jufair is the most popular product of the brand across the Gulf region. At the top of the organization's marketing approach is how to position the brand or the product in the market. As mentioned, standardization provides that Al Jufair replicate its success in Middle East across new markets. This ensures that the company follow the same quality of its products. The focus of potato and wheat products narrows the company's position. By keeping at this base products, Al Jufair will be positioned in the market as a quality potato and wheat-based company.
Another important part of the brand positioning strategy of the company is the benefit positioning. This strategy highlights the fact that Al Jufair products follow the Islamic sense and appeal to the demands of Muslims. This sets and differentiates Al Jufair products from that of competitors, especially international players. Al Jufair products are not just of high quality, but they are also above the criterion set by the Islamic Council to ensure that Muslims do not violate religious sensibilities or practices. By communicating Al Jufair as an Islamic product that appeals to the taste of Muslims and their craving for traditional or regional flavors is a benefit that stands out from other products.
As mentioned earlier, it is very important for Al Jufair to reach to its Muslim markets. The advertising strategy of the company should focus on this segment to reach out to them and gain a following from this promising base. Al Jufair can use television and print advertisements to introduce the product to the market. Strategic advertising must be conducted to choose programs and time slots that are watched by Muslims. In the same manner, Al Jufair can sponsor events of the Muslim community where the organization can introduce the Al Jufair products.
The international marketing strategies that are adopted by Al Jufair should be in accordance with the external environment of the organization. First, it is necessary to understand the political and legal framework of the new market. There are regions that do not allow the sale of processed foods that have certain levels of ingredients that are deemed unhealthy. This is a factor that affects the standardization of the Al Jufair products. The organization has to develop the same product without the blocked ingredient or component to comply with the requirements of the health, legal, and political setting of the country (Vrontis, 2008). Otherwise, it would be impossible for Al Jufair to enter the new market.
Another important external factor to the international marketing strategy of Al Jufair is the economy of the nation. In truth, this should not be a big problem to Al Jufair because the company offers products in smaller packages that do not need sizable purchasing power. However, it is necessary to understand the purchasing power of the new market to keep the standardization of the product pricing strategy. Nonetheless, it is to be noted how the company can produce the goods. Will it establish processing plants in new markets or will it transport goods from Oman to these new markets? By understanding the value of technology to the international marketing strategy, Al Jufair will be able to take advantage of the current advancement in production, marketing, distribution, and even promotion.
And of course, Al Jufair must deal with the social behavior or attitudes of the consumer market. Potato chip products are greatly consumed by major markets such as in North America and Europe, however the case with the growing strength of green products is a problem that must be dealt with. More and more consumers are inclined to green products than regular products, and Al Jufair must ensure that their products can compete with the social behavior of the market.
In essence, the marketing strategies and plan of the organization can be summed up as having impact on the processes, people, and products of the company. Basically, it is vital for the organization to successfully and effectively introduce the existing products of the company to new markets of the host country. This is banking on the potential of the organization's product to generate necessary customer base and the target revenue. As mentioned earlier, this will be in parallel with the standardization of the company's international marketing. However, if needs be the company can also create new products for the new market. This is anchored on the value of segmentation and adoptation to the demands of the new markets and the acknowledgment to the different preferences of consumers based on social attitudes, customs, and traditions. The creation of new products that will be used to penetrate the new market is also an inevitable pattern that the organization should embrace to comply with requirements of the host country's legal and political framework, as stated above.
In this regard, the organization does not just increase the sales of products of existing markets, but the wide resources that are available also allow the organization to innovate itself and create new products [within the focus of the company] that can be used to improve existing market sales. By creating awareness of the product in the new market, the organization acquires new customer base or market share while keeping its existing market base. This means that Al Jufair can compete with its competitors in a reactive manner.
In essence, Al Jufair trumpets the “think global act local strategies” as part of its international marketing. As stated throughout the paper, Al Jufair can use its core competencies and strengths to replicate its success in the Oman market and in the entire Gulf region. The effectiveness of the strategies that are already adopted by the company is already trusted and proven that it can be employed to other markets. This is an important component of international marketing – keeping up with the demands of international markets while focusing on local strategies rather than creating new experimental strategies for international scope.
The market is always local, even if its international. This is the reality and this is what Al Jufair believes. It is always necessary to look at the market in a local level than in a whole. By looking at the market in local levels, the organization can see its upswings and downswings easily. This also allows international marketing strategies to be reactive on the changing environment than be dependent on certain levels of bureaucracy.
Conclusion
One of the important direction that any organization should consider is going global or international. The domestic market may have been promising and has provided the company great results and financial success, but the domestic market has its own limitations. The domestic market may not be able to sustain the growth and development of the organization. As such, going international becomes a mandatory response of the company toward the entry of international players in the domestic market and the changing business and economic environment.
International marketing works on the way the organization should direct its resources to distribute products and services to other markets. At the top of the concern is how the organization can work with different demands of geographic market segments. The company can either work with market segmentation or retain its standard portfolio. Standardization allows the company and its products to remain the same anywhere, regardless of the demands of the people. However, standardization or segmentation is not always a perfect choice. Rather, the combination of these two provides better results. While the company ensures that the company and its products remain the same at any geographical market, the organization must also seek to serve demands of the new market.
Overall, international marketing is about how the company can keep up with the demands of the changing market with the international operation. There are barriers that stop the organization from moving or going global. When these barriers are properly addressed, the organization can have success in the international stage.
References:
Hou, A. J. (2001). Integration of Standardization and Adaptation Marketing Mix Strategy. University of Hull.
Keillor, B. (2011). Winning in the Global Market: A Practical Guide to International Business Success. ABC-CLIO.
Onkvisit, S. & Shaw, J. (2004). International Marketing: Analysis and Strategy. Routledge.
Tielmann, V. (2010). Market Entry Strategies. GRIN Verlag.
Vrontis, D. (2008). The External Environment and Its Effect on Strategic Marketing Planning: A Case Study for McDonald's. J. International Business and Entrepreneurship Development, Vol. 3.
