International Marketing Management

Topics: Marketing, Indonesia, Strategic management Pages: 15 (4599 words) Published: August 23, 2013
Avery Wellness (M) Sdn Bhd is a private company specialise in total skin care and beauty product solutions in Malaysia. The company began its operation in Malaysia since 1990. Follow Me Industries Sdn Bhd is the sole manufacturing facility for all skin care and beauty products to Avery Wellness (M) Sdn Bhd.

Avery Wellness business model involved in marketing and distributing skin care and sun care products within Malaysia market. The main distribution centres in Malaysia focus in all pharmacy chains, departmental stores and beauty retailers.

The company is envisaged to transform from a local enterprise into a multinational brand company with growth plan to tap into overseas market. The company has a headquarter base in Subang Jaya Industrial Park with total 80 employees.

The advantage of Avery Wellness products are HALAL accreditation and this gave the company a strong market presence in Muslim segment. The company with its marketing and branding strategy by leveraging on local Muslim celebrity as ambassador to successful help the brand enters the Muslim market.

2.2 Vision and Mission
Avery Wellness is visioning to capture the South East Asian market and to emerge as a dominant company in providing skin care and sun care solution for all consumers.

The mission of Avery Wellness is to provide continuous innovative and reliable product to overcome all man and woman skin problems with a product certified halal accreditation.

2.3 Sales Revenue
Avery Wellness average sales revenue for the past 3 years from 2010 to 2012 mainly contributed from 3 major brands which are Ageless solution, Clear & Clean and Sun Safe™ (Table 1). The percentage of contribution is 46%, 20% and 34% respectively. The Sun Safe™ brand has two main sun care products which are Sun Safe™ Face and Sun Safe™ Body. Currently the market share for these two products in sun care category is more than 35% in Malaysia.

Table 1: Sale Revenue on Skin Care Brand for Avery Wellness
Brand2010 (RM/Million)2011 (RM/Million)2012 (RM/Million)Averagepercentage Ageless5.55.86.05.7746%
Clear & Clean2.42.52.52.4720%
Sun Safe™4.24.34.34.2734%
Total Revenue12.112.612.812.5100%

2.4 International Market Entry Objective
In view of sales revenue stagnancy from year 2010 to 2012, and increasing of fixed and variable cost yearly such as cost of goods sold, salaries and wages, interest expenses and promotion, thus impacting in net income yearly. In fact, there is significant descent of net profit from 11.4 % to only 9.9% in year 2012 (Appendix 1). In order to sustain business growth and achieve imperative profitability, step to enter international market is essential. In particular, sustained economic growth has been experienced in emerging economies, which have become a source of expanding market opportunities and are currently underpinning the global recovery (Zizah Che Senik et al, 2010). Malaysia policy of governance encourages local SME to go International. In the effort to encourage SMEs to go global, SME Corp has introduced the National Mark of Malaysia Brand which is a certification process, audited and monitored by Sirim. Through this initiative, Malaysian Brands are developed not just for the local market, but with the intention that they would be good enough to penetrate international markets (Mohd Rithaudden Makip, 2012) In addition, the SME Master plan (2012-2020) has also outlined a High Impact Programme – Going Export Programme that will focus on addressing challenges faced by SMEs on entering new markets overseas, which include high upfront costs and the lack of detailed knowledge about the markets and local competitors (Charles Fernandez, 2013). 3 Country and Market Entry Analysis

3.1 Country Analysis
Indonesia, Thailand and Singapore are selected as the potential markets for Avery Wellness’s expansion plan to sell HALAL accreditation sun care products. In order to minimize business failure...
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