Description of company

Global marketing management is an important concept for every organization in relevance with the business expansion as well as in terms of matching with the global standards for making an effective goodwill of the organization in the international market. Global marketing is considered as the significant and complex international operation. In this report, international marketing activities of Vin’s Corporation will be discussed. It is a FMCG (fast moving consumer goods) Multinational Corporation headquartered in New York, United States. Apart from United States, company’s main operational area is Gulf region. Bahrain, Iraq, Oman, Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates are countries included in Gulf region and in relation with making a positive image in these countries, appropriate marketing activities requires to be adopted. International marketing involves adaptation of similar marketing strategies which could be implemented across all national boundaries with the objective to gain positive outcomes (Nainaar & Masson, 2018). Development of a global image of organization is crucial in terms of organizational expansion whereas, it is also necessary for the purpose of attainment of desired goals and objectives. In relation with this, primary objective of a company executing its operations in more than one country is attain a degree of synergy in the overall operations in order to take benefit of exchange rates, interest rates, labour, market opportunities, etc. for making the organization capable enough to sustain in the dynamic business environment along with gaining positive outcomes (Roni Sahroni, Margaretha & Budiastuti, 2017).

In this report, business report in relation with Vin’s Corporation will be discussed under which description of the company will be discussed mainly considering the Gulf region. Further, report will focus over critical analysis of the macro environment of the Gulf region in order to determine the threats and opportunities of the market. With the help of this analysis, organization would be able to design its strategies along with setting appropriate benchmarks for the accomplishment of tasks in the target market. In addition to this, the report will also focus over determining the similarities and difference between the Gulf countries and other countries’ marketing conditions. Next part of the report will focus over analysis of appropriate marketing strategy for the organization as per the marketing environment and the situation of organization. The last section of the report will focus over marketing activities which could be adopted in terms of enhancing organizational performance and this section will mainly focus over marketing mix strategies along with the distribution strategies for the attainment of desired goals and objectives in an effective manner.

Macro-environmental Analysis

Vin’s Corporation is a Multinational Corporation which deals in fast moving consumer goods. Company has established its effective presence in the international market within a short period of time. Company’s headquarter is established in New York, US, thus, their major operations are executed in US market. Apart from the US market, it also executes in various countries like Australia, United Kingdom, Gulf countries, etc. In relation with enhancing organizational existence in the international market, organization has integrated traditional as well as contemporary media platforms in an effective manner to communicate their message to the target countries (Chatterjee, et. al., 2018). With this, company has established its unique image in various countries and along with this, company’ distinctive market entry strategies are another effective in terms of acquiring a decent market share in the international FMCG market. Company also operate in Gulf countries where market conditions for business activities are favourable in comparison to the other countries (Rolfe, et. al., 2016). As population of Gulf countries is not much huge in comparison to the Asian countries and other global countries, opportunities for international migrants as well as for the business entities are huge. It is necessary for the organization to adopt certain advanced and unique strategies so that competitive advantage could be attained along with the attainment of degree of synergy in terms of overall operations of the organization could be enhanced. Primary issue faced by the organization in relation with executing its operations in the international market is adaptation of appropriate strategies through which the set benchmarks could be matched up along with the accomplishment of desired goals and objectives could be adopted (Angeles-Martinez, et. al., 2018).

It has been observed that in terms of attainment of more synergy in the overall marketing operations in the region of Gulf countries, it is necessary to evaluate all aspects of the international activity of organization in the Gulf region in comparison to the other regions of the world. Culture, buyer’s preferences, their behaviour, rules and regulations by government and policies are quite different in Gulf region in terms of other countries, thus, on the basis of benchmarks set up by the top level management, appropriate integration of traditional as well as non-traditional mediums of marketing strategies will be adopted so that an effective brand image could be developed (Eustace & Martins, 2014).

This analysis will help the organization to determine the similarities and differences between other countries and Gulf countries. In relation with this, PESTLE analysis, Hofstede’s cultural framework and Maslow’s hierarchy of needs will be executed for the purpose of determining the scope of improvement. With regards to this, appropriate set of strategies could be developed so that the gap could be fulfilled and all possible synergies could be developed (Zalengera, et. al., 2014).

PESTLE Analysis

Political situation of Gulf countries are stable along with this, societies of Gulf region are homogenised. With this regard, relationship between Gulf countries and its neighbour countries are strong which generates opportunities for the business entities to grow appropriately (Jamaani & Roca, 2015). There are not such unexpected changes in the policies with regards to the business operations. Apart from this, chances of threats in Middle Eastern countries are huge but their impact over Gulf countries’ business operations are not much high. Conflict between Palestinians and Zionists and the war in Iraq are such big conflicts which have affected business operations in Gulf countries but with the effective political regulations, business operations could easily be executed (Silventoinen, et. al., 2015).

GCC (Gulf Co-operation Council) is an oil based region by the largest persistent oil reserves in the world. Approximately 40% of world’s crude oil reserves are in Gulf region with approximately capacity 483.7 billion barrels. Gulf region is the leading producer and exporter of petroleum and plays vital role along with OPEC in the world. In terms of fast moving consumer goods market, consumption is less in comparison to the other countries because Gulf region contributes less than 50% of the total population across the globe. Purchasing power of people in Gulf region is high, thus, Vin’s Corporation could easily sustain in the marketplace along with gaining high profits (Liddle, 2014).

Mainly culture of the societies in Gulf region is conservative and most of the population over there are Muslims due to which consumption of meat, beef, etc. is much high. Due to conservative societies, females are not allowed to go out for shopping uncovered (Aloui, Hkiri & Nguyen, 2016). Apart from this, there are lot of restrictions which have been imposed in the Gulf region especially for females. As these countries are yet rule by kings, thus, scope for democracy is less in comparison to other countries and this restricts the organizations to introduce new products and services in the Middle Eastern countries (Faisal, 2015).

Gulf countries are known one of the ideal locations in terms of marketing products and services to Middle East and Asia. Information Technology covers all aspects i.e. society, consumer, business, private as well as the governments. Thus, organizations could easily avail the facility of advanced information technology in order to market its products and services. In relation with this, scope for Vin’s Corporation is huge in Gulf Countries in terms of increasing the demand for their products along with approaching large part of target market (Bahaddad, 2017).

Hofstede’s cultural framework

Legal obligations in Gulf countries are quite similar as driven in the Islamic Sharia. Apart from this, Gulf region also follows Egyptian and France laws as civil laws whereas Jordanian laws and British laws are also essential part Gulf region’s legislation (Malik, 2018). Thus, it will be required for the Vin’s Corporation to understand the legal conditions of Gulf region in order to set up its business operations in an appropriate manner. It has been observed that legal conditions of Gulf countries are quite different from other countries, thus, it is necessary to adopt appropriate strategies through which all legal requirements could be fulfilled of Gulf region along with the fulfilment of organizational desired goals and objectives (Elmi, 2017).

Environmental issues in Gulf region are high and these mainly arise due to people pressure who resides in metropolitan cities. Population is rapidly increasing and in terms of providing shelter, natural habitat is getting destroyed. Apart from this, fresh water accessibility is another major environmental issue faced by Gulf countries. This generates opportunities for the organization to enhance their product offering by delivering packed mineral water bottles to the target market customers and this will help the organization to attain its objectives such as increasing sales, revenues, profits, etc. (Lambert & Hashim, 2017).

It is a theoretical framework which describes cross-cultural dimensions and it was developed by Geert Hofstede. Main motive of this framework to analyse the effects of a society’s culture on the basis of value of its members and relationship between values and the behaviour of the buyers with the help of a factor analysis (Al-Saleh & Mahroum, 2015). This theory majorly proposed four criteria in order to analyse cultural values. These criteria are individualism-collectivism, power distance, uncertainty avoidance and masculinity-femininity.  Further, two more dimensions were added for better understanding of the cultural values i.e. long term evaluation and indulgence versus self-restraint. These dimensions help to determine the values, cultural background and related attributes of an individual. Vin’s Corporation is a multinational corporation which is present in various countries including Gulf countries and due to this, people with different cultural background, values, beliefs, etc. works at the organization. This leads to workforce diversity and managing people with different culture, background, etc. is bit challenging task for the management (Saleem  & Larimo, 2017). With the help of following six dimensions, cross-cultural communication and other differences would be analysed:

• Power distance index: Definition of this dimension is the extension to which less powerful members of organization accept that the power is distributed unequally. In order to enhance organizational performance in Gulf region, management needs to distribute power amongst the members of the organization equally to avoid glitches and personal conflicts amongst the employees. Although, where people with different values and beliefs work in same organization, chances of personal conflicts increases but it is the duty of management to make them realise that all employees are equal and they will be treated on the basis of their knowledge and talent rather treating them on the basis of culture, religion and background (Beugelsdijk, Kostova & Roth, 2017).
• Uncertainty avoidance index: It is defined as the society’s tolerance for ambiguity. Laws, regulations, society’s values and guidelines are different from each other. Evaluation of this is necessary for the attainment of goals and objectives. This requires to be followed while entering into a new country as well as while developing marketing strategies for the objective of generating demand for the organizational products and services (Mazanec, et. al., 2015).
• Masculinity vs.femininity: Male and female are being differentiated on various bases whereas, masculinity society gives preference to males while in feminine societies, females’ values, beliefs and cultures are treated similar to men. Gulf region is a type of masculine society because there women are treated as competitive and assertive but less in comparison to men. Thus, Vin’s Corporation requires to understand this gap while adopting appropriate strategies for the development of appropriate set of marketing strategies (Leung & Morris, 2015).
• Individualism vs.collectivism: This index majorly focuses on “I” versus “we”. Individualism relates to the aspects people prefer to work for themselves rather than working in groups. It is necessary for the organization to adopt one of the best measures in order to accomplish its set goals. Teamwork is the best attribute through which organization could easily execute its operations so that desired goals could be attained (Jonas, 2016).
• Long term orientation vs.short term orientation: This dimension associates connection between current and past challenges and actions. Short term orientation is poor countries with little economic development and less funds while countries like Gulf countries continues to develop. This helps the organization to avail the opportunities present in the Gulf region in order to enhance organizational performance (Lee & Hanna, 2015).
• Indulgence vs.restraint: Indulgence is followed in the democratic countries because it allows societies to live freely and natural human desires in relation with enjoying life. Societies with indulgence believe in controlling their own life and emotions while restrained societies believe other factors dictate their life and emotions (Fallatah & Syed, 2018).

With the help of above analysis through Hofstede’s Cultural Framework, it has been observed that the conditions in Gulf region different in terms of every macro environmental factor. This is because Gulf countries are still running on monarchy which is the major factor which differentiates Gulf countries from other European, Asian and other countries. In terms of enhancing their effectiveness in the Gulf region, it is necessary for the organization to build effective set of dynamic strategies. This will ultimately enhances organizational efficiency through which an effective position could be developed in the target market. Analysing culture of the target market has helped the organization to determine the needs and wants of the consumers through which appropriate goods and services could be delivered to the target audience for the purpose of gaining positive outcomes (Ozguner & Ozguner, 2014).

• Self-actualisation: Self-actualisation needs for public of Gulf countries refers to the personal growth on the basis of personal potential and self-fulfilment. These needs relates to the increasing one’s efficiency in order to accomplish the goals (Perreault, Cannon & McCarthy, 2015).
• Esteem: This is classified into two parts i.e. esteem for oneself such as dignity and independence and desire for reputation or respect from others such as prestige and status.
• Love/belonging: These are the third level needs of an individual and these relates to the requirement of an individual in terms of involving in feelings of belongingness. Example, friendship, affection and love (Olson, et. al., 2018).
• Safety needs: Job security, health safety and freedom from fear are some of the primary elements for an individual in terms of attainment of personal goals.
• Physiological:These are basic needs such as food, water, sleep, sex, shelter, clothing, etc. These most necessary elements for every individual and if these needs are not fulfilled appropriately, one cannot function in right manner. Physiological needs are considered as the most important needs and these are counted as the primary needs by Maslow while all other needs have been classified into secondary needs (Baker, 2014).

Analysis of Marketing Strategies

With this analysis, it could be observed that organization could easily perform its operations along with the fulfilment of local citizen’s needs and wants. With the fulfilment of local citizen’s needs and wants, Vin’s Corporation will easily be able to accomplish its goals. Purchasing power of Gulf countries’ public is high, thus, they could easily sustain along with the ability to fulfil their demands. If Vin’s Corporation will adopt appropriate advance and unique level of strategies for the objective of enhancing customer satisfaction as well as with the objective of meeting international market’s demands and wants. Thus, main difference analysed between the Gulf region and other countries’ situation and the cultural difference are huge. Major difference is cultural difference and the freedom of speech is another big factor which differentiates between Gulf countries and other countries (Armstrong, et. al., 2015).

Marketing strategies plays vital role in terms of enhancing organizational performance in terms of promotion of the products and services, increasing awareness amongst the target audience along with the fulfilment of organizational objectives. Companies such as Vin’s Corporation, Walmart, Wesfarmers, Apple Inc., Amazon Inc., etc. are some of the big multinational corporations and in order to execute their international operations, organizations are required to adopt one of the international strategies available in the market with the objective of global expansion, attaining set goals as well as for the objective of sustainable business development. Mainly there are three international strategies through which organization could perform its operations smoothly in global market. These are global, multidomestic, and transnational. Each strategy has its own specifications and features in relevance with the execution of operations in the foreign countries. As every country’s market conditions and consumer’s preferences, behaviour and their demands are different, thus, it is necessary to evaluate the effectiveness of each strategy for the purpose of accomplishing organizational operations in the desired manner.

This strategy assumes that audience of different countries have different needs and wants and on this basis, organization requires to analyse its target audience’s preferences to fulfil their needs as well as to accomplish the desired goals. This strategy is ideal for highly differentiated products and in relation with this, organization requires to enhance its product offering along with adding unique and advanced features to its products and services for the purpose of approaching as well as to attract the target audience towards their product and service offering. In terms of Vin’s Corporation, organization is bit struggling in Gulf countries’ market, thus, it is necessary for the organization to mould its strategies on the basis of market demands, consumer wants and purchasing power of the target audience. This helps the organization to maintain its acquired position in the target market so that appropriate goals could be accomplished in terms of uplifting organizational performance. In this strategy, decision making power is decentralised so that management could be able to respond on the local level. Further, it has also been observed that multi-domestic strategy makes the organization efficient enough to gain its set goals. Companies like Wesfarmers, Coles, etc. uses multi-domestic strategy for the purpose of moulding their products on the basis of market conditions and consumer preferences with the objective of enhancing customer satisfaction as well as for the motive of customer satisfaction (Kiseleva, 2017).

Global marketing strategy is different from the multi-domestic strategy and this strategy assumes that all countries’ market conditions and the consumer’s preferences irrelevance to their geographic regions are same. This strategy is being used by the organizations to deliver same sort of products under which standards need to be followed. Companies which maintain same type of interest and taste in their products adopt global marketing strategy. Coca-Cola, McDonald’s, KFC, etc. are certain companies have adopted global marketing strategy so that same type of taste and quality in their products and services.

Thus, it is required for the Vin’s Corporation to amend its strategies so that appropriate product and service offering could be introduced in the Gulf region with the motive of enhancing organizational goals and objectives. Multi-domestic strategy will help VIN’s Corporation to provide the products and services to the target audience of Gulf region on the basis of analysed market demands and consumer behaviour. This will help the organization to attain positive outcomes as well as the objectives of increasing sales, increasing awareness regarding organizational products and services, etc. will also be attained (Business Chief, 2016).

Marketing activities have a significant impact over improving organizational performance along with the attainment of desired goals and objectives of the organization. As per this scenario, Vin’s Corporation is executing its operations in various parts of global market, thus, it is necessary for the organization to integrate appropriate mediums of marketing in relevance with the target market’s conditions. Along with the implementation of appropriate marketing mediums, organization will also focus over marketing mix components so that marketing activities of the organization could be standardised in terms of Gulf region’s requirements (Nainaar & Masson, 2018).

Organization will focus over determining target audience’s demands and wants so that appropriate products and services could be offered to them. Fulfilment of target audience’s demands is one of the primary factors for every organization and with regards to this; Vin’s Corporation requires to amend its product offerings as per the citizens of Gulf countries. Major products required in Gulf region are beef, meat, bottled milk and other daily necessity goods of superior quality as purchasing power of people over there is sufficient enough to consume high quality goods. Apart from this, varieties of products will also be introduced in the target market in order to fulfil target audience’s demand and wants. This will also help the organization to enhance its performance in the target market along with the attainment of set goals. Providing varieties of unique products and services will differentiate organization from its competitors in the target and it will also ensure the organization to attain sustainable development and growth in the target market (Roni Sahroni, Margaretha & Budiastuti, 2017).

Price is another predominant factor for organizational success and growth. In terms of Vin’s Corporation’s scenario in Gulf region, adaptation of premium pricing will be suitable in terms of enhancing demand for the organizational products and services in the target market. Further, it is another critical factor to compete in the competitive and dynamic business environment. Saveco, Union Coop, LuLu Hypermarket, Emirates Cooperative Society, etc. are some of the major supermarkets in Middle East. In order to compete with them along with the objective of gaining competitive advantage in the target market, premium pricing strategy will be effective. This strategy will help the organization to attain its set goals so that the competitive advantage could be attained. As per the market conditions in Gulf region, premium pricing strategy will be the most beneficial element in terms of setting up an effective brand image along with the objective of attaining competitive advantage in the target market.

In terms of place of distribution, not many changes will be implemented because people residing in Gulf region as well as in the other countries purchase products from supermarkets and retail stores. Thus, Vin’ Corporation will adopt pull strategy in terms of enhancing demand for their products and services which will be offered in Gulf region. Pull strategy denotes to the situation where consumers go to the company for the purpose of consumption of products and services. In relation to this, organization requires to adopt appropriate marketing strategies through which target audience could be approached as well as attracted towards their product offering. Along with this, organization will also require to enhance quality of their products and services so that customer satisfaction could be enhanced. Apart from this, organization will also adopt intensive distribution technique to approach to the large part of target customer segments. Although, intensive distribution strategy is mainly adopted for low priced goods and services but sometimes, it also helps in terms of increasing sales as well as for providing the products amongst the target customer segments without fail (Chatterjee, et. al., 2018).

This is another success element for an organization in order to attain its primary goals and objectives. Thus, organization needs to adopt promotional techniques on the basis of current market requirements as well as on the basis of organizational expectations. In terms of promotional mediums, organization requires to integrate the effective combination of traditional and non-traditional mediums of marketing techniques so that the desired goals could be accomplished. In terms of enhancing organizational performance along with the attainment of desired goals in relevance with increasing sales, revenues and profitability. Every medium has its own importance and in terms of approaching to the target audience of Gulf region, organization requires to focus over both traditional and non-traditional mediums.

Traditional forms of media mix

Newspaper, magazine, television, radio, board hoardings, etc. are some of the essential mediums of traditional marketing channels. Every medium in traditional media mix helps the organization to promote its products amongst the target audience as traditional media users are also high in Gulf region.

Non-traditional forms of media mix

Social media, search engines, personal relations, display promotions and sponsorships are certain effective mediums of promotion and advertisement. In Middle Easters countries, advanced technology is being used, thus, Vin’s Corporation could also utilise the digital forms of media in terms of enhancing organizational product’s demand amongst the target customer segment (Angeles-Martinez, et. al., 2018).

Though, Gulf countries’ have restrictions as monarchy is practiced there, thus, companies needs to practice their functions on the basis of government’s rules and regulations. Apart from this, media platforms are the method of communication amongst customers and company, so company must ensure that there will be no gap between the features of products shown in the promotional events as compared to the reality. This makes the company capable enough to gain reliable position in the target market and it also helps the organization to gain competitive advantage.

Conclusion 

From the aforesaid information, it can be concluded that Vin’s Corporation is a multinational corporation engaged in fast moving consumer goods. Along with US, UK and Asia, organization is also present in Gulf region. Conditions of Middle Eastern countries are different in comparison to the conditions of other countries, thus, this report concludes several marketing strategies and activities which could be adopted for the purpose of improving organizational performance in Gulf countries. With this regard, it has been recommended to the organization to conduct market research analysis on regular basis so that target audience’s demands could be analysed so that they could be offered the same as per their requirements. This report has concluded position of Vin’s Corporation in the global fast moving consumer goods market along with macro environmental analysis of Gulf region so that appropriate marketing activities could be developed or adopted in terms of enhancing organizational performance.

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