AMB336 Marketing|Employees and Country

Assignment Cepuros Foods Malaysia: Finding the Secret Sauce for Growth After ending her weekly conference call with executives from the corporate headquarters of Cepuros Foods International (CFI) in Singapore, Shelby Diaz looked out the window of her office in Kuala Lumpur hoping for inspiration. As the country manager for Cepuros Foods International– Malaysia (CFI-M), Diaz was responsible for developing and marketing CFI-M’s products. She needed to increase the sales of CFI-M’s Baik Sos Salsa line of shelf-stable salsas by the end of 2019. Diaz had begun the call by explaining her plan to target new products to CFI’s existing salsa customers with small increases to the marketing and communications budget. She had planned to target customers who purchased the original salsa to try the new flavors. Her proposal was to increase salsa sales 15% by increasing selling expenses by 7%. CFI’s CEO, Bia Aati, interrupted her. He said, “The proposal lacks a long-term vision. The success of the salsa line is essential to our revenue growth in Malaysia. We need an aggressive, mass-market strategy with major investments in marketing and an ambitious sales goal.” CFI’s executive vice president of marketing, Chen Lee, disagreed. She said, “Growing revenue through salsa sales is important, but a mass-market approach is too risky. Targeting our marketing mainly to our current cooking sauce and salsa customers is more reasonable.”  Before next week’s call, Diaz had to decide how to revise her proposal. She remembered the Ansoff’s matrix used in her MBA program and decided to use it to frame her recommendations.1 Should she change the proposal to develop consumer demand in the mass mark Cepuros Foods International CFI was founded by Vivekasugha “Alif” Bin Gunnaalan in Singapore, where his parents had been successful restauranteurs. After earning a degree in food technology, Gunnaalan first developed products for global food companies. In 1987, he founded CFI. CFI specialized in the development, branding, and marketing of cooking and table sauces with unique flavor profiles. By 2017, CFI had more than 50 employees and country offices across Southeast Asia. (Exhibit 1 shows CFI’s income statement for 2017.) CFI partnered with local food manufacturers and distributors to produce its sauces. In 2017, Singapore accounted for 48% of CFI’s sales, with Indonesia (21%), Malaysia (12%), Vietnam (10%), and the Philippines (9%) accounting for CFI’s other revenue. Malaysia in 2018 Comprising two regions separated by the South China Sea, Malaysia contained multiple ethnic groups who spoke 134 living languages. Its official language was Bahasa Malaysia; the official religion was Muslim. Malaysia’s urban population was growing; more than one-fourth of its citizens lived in the greater Kuala Lumpur area, known as Klang Valley. Exhibit 2 provides country statistics. Requirements Section 1. Identify and provide a brief summary of international market specific issues, constraints and opportunities related to the case. Base your issues on theoretical international concepts. As the international marketing manager, what are the pertinent environmental and ethical issues to consider in this case? Use journals to help give your responses some depth. Section 2. Answer the following questions: 1.What factors determine the demand for Baik Sos cooking sauces in Malaysia? 2.What are the differences between the factors affecting demand for Baik Sos cooking sauces and the demand for Baik Sos Salsa? 3.Undertake a SWOT analysis for CFI-M’s situation in 2017. 4.How should CFI develop the salsa market in Malaysia? 5.How should CFI-M allocate its marketing investments?
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