Marketing Essay 代写:Russell Hobbs In A Uk Based Company

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Marketing Essay 代写:Russell Hobbs In A Uk Based Company






Marketing Essay 代写:Russell Hobbs In A Uk Based Company

Introduction of Module and Assignment

The purpose of this course is to help students to understand and to critically evaluate the marketing strategies in today's complex global environment. This course has helped me to understand and develop good skills which are required for international marketing managers.

This assignment is also designed for students to implement their knowledge in a practical way which will help us to increase our critical thinking and awareness of today's ever changing market.

The details of chosen company and product are as follows.

Company Name: Russell Hobbs

Product Type: Microwave

Introduction of Russell Hobbs

Russell Hobbs in a UK based company which has Head quarters in Manchester has now become a fairly renowned brand in UK itself and in Europe. Russell Hobbs deals in kitchen appliances from almost last 50 years. Their product range includes stuff from kettles to toasters, coffee makers, cooking and food preparation products. The quality of this company is they design each and every product by keeping customer's requirements in mind and they have a massive product range which target consumers of all class this is the only reason that in today's dynamic market they stand as a leading kitchen brand, whose products are designed and developed keeping in today's busy lifestyle in mind.

Introduction of Product

The chosen product is ''RUSSELL HOBBS 20 LITRE SILVER MICROWAVE''. Which have all the latest functions and are hardly unlikely to be seen in any other microwave. the output power of this product is 800w with 6 power settings, it has the function of auto weight defrost/ cook plus other defrost options. It has a beautiful stainless steel body, child safety lock, easi-tronic controls and on top of that it has a massive 20 litre interior capacity. On top of that it is extremely easy to use and price is also very reasonable comparing to the similar sort of products from different other brands.

Task 1: Market Selection Process and detailed Market Analysis.

In order to launch this product in international market, first thing that needs doing is to choose an international market then detailed market analysis needs to be done which includes culture, buyer behaviour, opportunities and threats, legal and buyer behaviour and above all detailed pestle analysis needs doing as well.

The company is planning to launch this product in one of the following markets i.e Pakistan or Saudi Arabia. A detailed analysis on both of these country's markets is as follows.

PESTLE analysis of Pakistan


Politically Pakistan looks very stable because they now have a new democratic Govt and the ruling party is the biggest democratic party of Pakistan which has a lot of experienced and well educated politicians. On top of that, this new govt is also in good books of America, Uk and other European countries. Due to which it is highly unlikely to happen that these countries may ever impose any restrictions on exporting products to this country.


Pakistan is the 25th largest economy in the world in terms of purchasing power and 45th largest in terms of dollar. Pakistan has a semi industrialized economy which is mainly based on textiles, chemicals, agriculture, cement, food processing and on some other industries. Karachi is the economic hub of Pakistan. Major growth poles of Pakistan are situated along Indus river. The economy has however suffered a lot in past due to political issues in the country but now it looks even this issue is getting better because of new democratic govt and countries foreign exchange reserves are rapidly growing which shows that economy of Pakistan is getting better day by day.


Pakistan is a developing country and at the moment it comes in the rank of third world countries. The country has major social issue which is child labour. The main reason is that a great percent of population lives under the poverty line which makes it difficult for parents to send their children to school. But Pakistani govt is taking feasible steps in sorting this problem out. Majority of the population is very westernised, this issue is mostly apply to urban parts of Pakistan.


Pakistan has gone through amazing technological growth in over the decade or so. Pakistan's telecommunication sector, banking sector, media has had amazing growths and all these sectors are up to the standards of any fully developed country. Like UK and America three out of five houses have high speed internet, people use high end mobile sets such as Iphone, Nokia and sonyericsson. Pakistani people are fully aware of all the latest gadgets. So from technological point of view Pakistan is booming.


Pakistan has had many legal problems in the past but now the country has overcome those problems to a great extent. Now they have a free judiciary system which is not in any way under the control of any political party. Pakistan also has a comprehensive debt recovery and corporate restricting and insolvency legislative framework. Debt recovery is governed by the code of civil procedure 1908. On top of that there are certain legal steps involved in every process to make it safe and secure for consumers


Environmental analysis of Pakistan looks outstanding. Country has achieved good GDP growth and there is also a significant decline in poverty. This is mainly due to the fact that country has been able to utilize its natural resources to a great extent.

PESTLE analysis of Saudi Arabia


Saudi Arabia is a non political state and it is still governed by Kings. People don't really have the right to say anything, people don't get to choose anything in this country. They simply follow the rules made by the rulers of this country.


The country's economy is very strong. The country is full of natural resources such as gold and oil. Saudi Arabia is the world's biggest oil exporter and it supply oil to world's biggest consumer i.e. America. Even the current economic crunch has not been able to effect the economy of this country.


The country does not have any complicated social issues and this is mainly because this country is economically very strong. This country has very good relationship with other neighbouring countries and especially with America.


From technological point of view the country is still in the developing phase. High speed broadband and high tech computers are still not in the reach of normal people and the normal Arab people are not really illiterate. So, technology is an area of concern for the country.


Saudi Arabia follows Islamic rules (shariya) and these rules are very strictly in place by the police of that country. Everyone follows these rules therefore; the country does not have and legal problems.


Environmental analysis does not look very good. Because the country is world's biggest oil exporter so the environmental is not really friendly.

Culture of Pakistan and Saudi Arabia

Pakistan can be called a multicultural society because Pakistan is a merger of people who are from different ethnic origins and it is based on Punjabi, sindhi, pashtoon, balochi and kashmeri. On top of that Pakistani culture is also slightly influenced by few neighbouting countries such as Persians, afghan, Indian and south Asians. National language of Pakistan is urdu which is a mixture of Punjabi, saraeeki, balochi and pharsee.

People living in Saudi Arabia perhaps share similar sort of culture. They are all Arab and they speak same language which is Arbi.

Buyer Behaviour in Pakistan and Saudi Arabia

As mentioned above, Pakistani people are more westernised and they tend to more interested in to things that gets imported and they are also brand conscious. The people living in major cities of Pakistan have amazing purchasing power.

On the other hand, people in Saudi Arabia are less westernised. Only 20% of arab population are interested in buying imported products the rest of 80% are not brand conscious. This thing will not work in favour of the company and this is the reason why Saudi Arabia is not a favourable market to enter.

Opportunities and threats in Pakistan


By analysing all the details mentioned above, it is believed that Pakistan has a lot of potential as an international market. This is mainly because Pakistan is an importing country and people of this country have good purchasing power and they always get attracted by brand.


However, company will face certain threats because there are already some good multinational companies are there and they are doing good business. But this is perhaps another opportunity Russell Hobbs because if this company enters into this market which has a lot of potential by using correct marketing tactics than their sales will be buzzing as well.

Opportunities and threats in Saudi Arabia

Opportunities & Threats

Based on above analysis, it is concluded that this market does not offer us same sort of opportunities as Pakistani market does. It is mainly because of buyer behaviour and there are some local manufacturers as well. So this market is offering Russell Hobbs more threats than opportunities.

After all these detailed analysis, it is concluded that Pakistan is a favourable market for the company to enter.

Task 2: Marketing Mix Strategy

Marketing mix allows you to combine all the marketing tools in order to sell your product. It is based on four Ps.





By using these four Ps carefully and effectively, the company can easily capture a new market. The explanation of these four Ps is as under.


Physical products and services comes under this term ''product'' and are of tangible nature. key things that a manager needs to keep in mind about product decision are as under

Name of the brand.


Style of the brand.

Quality of product.

Safety issues.

Packaging of product.

After sales services such as repair and support.

Warranty of product.


Pricing decisions should be made while keeping following things in mind

Determine a pricing strategy. Choose from market penetration and skimming.

Made a retail price decision.

Discounts based on volume of product, and also wholesale pricing.

Discounts in case of cash and early payments.

Change prices according to season.

Keep price flexibility and discrimination in mind.


Place also called distribution is a way of getting the product to customers. Examples are as under

Analysing distribution channels.

Choosing way of distribution which can either be exclusive or selective.

Management of inventory.

Process of orders and transportation.


This is perhaps the most important part in the four Ps of marketing mix strategy because it represents different ways of communication about the product with the purpose of increasing positive response from the customers. Promotional decisions include

Choose of right promotional strategy i.e. push or pull.

Making the correct decision about advertising such as if people are illiterate in an area than Billboards and radio advertising is a better option.

Sorting out a budget.

Making a sales force and doing personal selling.

Limitations of Marketing Mix Framework

The marketing mix framework also have certain limitations because now a day's marketing is more complexed and integrated in to organisations and every organisation now market different type of products in a global market. Thus, this framework is a more useful tool in the beginning period of marketing concept.

Implementation of Marketing Mix

In order to capture the market the company needs to make use of four Ps effectively and efficiently. Pakistan is divided in four provinces Punjab, Sindh, Balochistan and Sarhad. Four major cities of these provinces are Lahore, Karachi, Quetta and Peshawar. Company will make its distribution centres in Lahore, Quetta and Peshawar and head office in Karachi because Karachi is the economic hub of Pakistan and also has a port. Distribution centre in Lahore will be the provincial head office and manage all the suppliers in the province of Punjab, similarly the offices in Quetta and Peshawar will look after the sales of Balochistan and Sarhad. In Karachi we will have our main head office, which will look after the sales from all the distribution channels of Sindh and also take reports on daily basis from three main provincial offices. This is further explained with the diagram below,


(Head Office)

Peshawar Office

Quetta Office

Lahore Office

Other companies who are supplying microwave in this market are selling it at Rs.10,000. Our company will introduce its product at Rs.8,500 to capture the market. For advertising purposes we will use Pakistani media and in rural parts billboards and radio transmission comes on top of our list. We will give our customers 3 years warranty that if anything goes wrong with the product we will give them a new one.

Seasonal promotions are always a best way to attract customers and we are planning to give seasonal promotions such as in winter we will supply them an electric heater with our microwave. A fair amount of population in Pakistan lives just above poverty so for them the company will launch interest free instalment system.

Task 3: Foreign Market Entry Strategy

There are different modes available to enter in the foreign market and this decision should always be made carefully because it will have a significant impact on the results of the business. There are four different modes available to enter in the foreign market and they are explained as under.



Joint Venture

Direct Investment


Exporting is a traditional and a very well established way to enter a foreign market. This is perhaps a cheap and easy way to enter in the market. In exporting the company simply export the goods to target market without carrying the hassle of formation of a production facility in the foreign market. With this method the cost of product that consumer pay is relatively high because goods gets exported and different duties gets added up into the value of the product. Exporting consists of coordination between four players i.e.



Transport Provider



In this method a little investment is required by the licensor. This method allows the company to use the property of the licensor in the target country but in this way the main company losses the potential returns from production and marketing activities. McDonalds and KFC are working in Pakistan and people have taken their franchise so in this way the main companies charge them a fixed amount every month for using their name but the franchisee enjoy the full profit.

Joint Venture

This method has many benefits because by doing a joint venture the benefits companies gets are market entry, risk and reward sharing, technology sharing, joint product development and easy to fulfil Govt policies. This method is mostly favourable when partner's share same strategic goals, when partner's have good size and market power and also holds good relationship with major industrialists. There is however certain drawbacks of this method such as less support from parent company, clashes of cultures, in case things don't do right then how and when the relationship will be terminated, conflict about new investments.

Foreign Direct Investment

FDI requires high level of resources because it involves direct ownership of property and resources in the target market. It also includes the transfer of resources such as capital, technology and personnel. Direct ownership provides better control and in operations and helps the company to better understand customer behaviour and environment.

Chosen Foreign Market Strategy

Russell Hobbs is a very well established company in UK and because the target country is Pakistan and also by critically analyzing Pakistan's policies about foreign investors it is concluded that the best market entry strategy is foreign direct investment because in this way company will enjoy great benefits given by the Pakistani Govt. On top of that the cost of production will be low which will help us to capture the market in a very short span of time and it will enable us to understand the needs and demands of our customers. By using this method company will be able to produce goods at less cost which means that whenever a new company will enter the market Russell Hobbs will simply reduce the selling price which means this method will give us better flexibility to choose from skimming or penetration of market.


It is to conclude that Pakistan is the chosen target market because it has a lot of potential for foreign investors. Pakistan's government is desperately looking for foreign investors thats why this country is giving very high rate of returns. The company is most likely to get its investment back in 3 years time after that Russell Hobbs will enjoy outstanding profits. It is an importing country and the customer behaviour is that they always prefer to buy imported products. Different multinationals sell their products at very high prices that is why Russell Hobbs has decided to choose foreign direct investment method which will help to company to become market leader in less than one year's time.