April 9, 2017

Daily Archives

  • Unstable Foreign Grounds for Pakistani Brands

    big angry boss screaming at small startled worker

    big angry boss screaming at small startled worker

    Why Pakistani brands so far have failed miserably to find acceptance in other countries? The answer is very long. But primarily ground is very unstable for Pakistani brands, marred by unstable governments’ policies, foreign-exchange problems, corruption, and lack of technological advancements. Besides, the local companies have no will to internationalize their operations.
    The local companies’ lack of enthusiasm is the direct results of their own fallacies, which are strongly based on their incompetencies and running the organisation on “force-fitting” dictator basis rather than well defined marketing management.
    The irony is that many local marketing companies even do not have marketing departments; in fact, they still in believe that sales and marketing is the same. No idea of marketing objectives and they are happy with sales ratio. Indeed, a big, big, big mistake!
    Moreover, these companies are of the view that research and development is nothing but waste of money and failed to understand that as many countries are eliminating foreign competition through protective legislation, the better way to compete is to continuously improve products at home and expand into foreign markets.
    Performing in other countries to flourish brands means utmost marketing understanding as global competition is intensifying in more product categories as new firms make their mark on the international stage. Competition from is heating up to new level.
    The problem with Pakistani companies that they have no mechanism upon deciding to go abroad; they have no capabilities to define their international marketing objectives and policies. In absence of such mechanism they have no clue to take crucial decisions whether to market in a few or many countries and rate candidate countries on three criteria: market attractiveness, risk, and competitive advantage.
    It is a lesson to learn that developing countries offer a unique set of opportunities and risks. The “BRICS” countries—Brazil, Russia, India, China, and South Africa—plus other significant markets such as Indonesia are a top priority for many global firms.
    There are very weak modes for the Pakistani companies to enter foreign markets by indirect exporting, direct exporting, licensing, joint ventures, and direct investment. By virtue of scrawny methods, which have required succeeding strategy entails more commitment, risk, control, and profit potential.
    In deciding how much to adapt their marketing programs at the product level, firms in Pakistan are widely reluctant to pursue a strategy of straight extension, product adaptation, or product invention. At the communication level, their failure to choose communication adaptation or dual adaptation is further redundant. At the price level, firms are encountering price escalation, dumping, gray markets, and discounted counterfeit products. At the distribution level, firms are yet to understand strategically that they need to take a whole-channel view of distributing products to the final users. Local firms are far away to consider the cultural, social, political, technological, environmental, and legal limitations they face in other countries.

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