Mkw 3444 International Marketing: My Kuali International Marketing Plan

...

---------------------------------------------------------------

MyKuali realizes opportunities to export to Nigeria, as significantly increasing amounts of Nigerians are consuming instant noodles. MyKuali was awarded the no.1 best instant noodles in the world, and uses natural ingredients. It is feasible that MyKuali has the potential to capture the Nigeria’s market and compete against Indomie.

3.2 PESTEL Analysis

3.2.1 Political Analysis

Nigeria’s current political viewpoint is stable relative to previous years due to the election euphoria, leading to violence in the country (Usman, 2013). The election, which ended in March 2015, resulted in the election of President Muhammadu Buhar, a Muslim and ex soldier, believing that he will have a better chance of restoring the morale of Nigeria’s wretched army to end Boko Haram, an Islamist radical group that has tortured Nigeria’s north-east over the previous years (Kano, 2015). Mr Buhari’s style is extremely ascetic, has a status for honesty, and is proved by national vote, believes that he can eliminate corruption and further increase Nigeria’s GDP (The Economists, 2015).

Hence, it is an opportunity for MyKuali to invest in a country that is now stable relatively stable. The newly elected president who is positive in making the country more stable and economically strong reduces political risk for MyKuali to venture into Nigeria.

3.2.2 Economic Analysis

[pic 1]

Figure 1

Retrieved from: http://www.economist.com/news/finance-and-economics/21600734-revised-figures-show-nigeria-africas-largest-economy-step-change

Nigeria recently overhauled its GDP data from 1990-2010, for the first time in 20 years, known as ‘’rebasing’’. This resulted in an increase in the projected scope of the economy by over 89%, officially achieving the largest economy in Africa with an estimated nominal GDP of $USD510 billion, outranking South Africa’s $USD352 billion (Barungi, 2014). Figure 1 represents Nigeria’s economic statistics before and after revision compared to relative sub-Saharan economies. Additionally, Diagram 1 (Appendix) shows Nigeria’s GDP over the past seven decades illustrating an outstanding upward trend from the early 1990’s.

[pic 2]

Figure 2

Nigeria’s Unemployment (Total %) between 2006 and 2011

Source of Data: The World Bank

Figure 2 exhibits an upward trend of rising unemployment in Nigeria since 2006 up till 2011. Asaju, Arome & Anyio (2014) noted the deteriorating unemployment trend is due to lack of good governance, systematic problems in education, and globalization. MyKuali may actually use this to their advantage; by employing these low-skilled workers when penetrating the market, as the movement and transportation of instant noodles does not require know-how or specialized skills.

3.2.3 Socio-Cultural Analysis

As of 2011, Nigeria’s overall literacy rate for ages six and above was indicated at 50.6% of the total population, of which male 53.6% and female 46.4% (UNESCO, 2012). Furthermore, Nigeria also has the highest number of out-of-school children, approximately over 7 million, amounting at 10% of total global population.

Nigeria is a predominantly Muslim country with 50.4% of its population in 2012 being Muslims (Lugo, Cooperman, Bell, O’Connell, & Stencel, 2012). According to the recent study conducted, Nigeria was placed second at 90% behind Cameroon in agreeing to Islam’s holy book (Quran) should be read literally, word for word (Lugo, Cooperman, Bell, O’Connell, & Stencel, 2012). Thus, this portrays that Nigerians take their core belief into account, which addresses their attitude towards society; being selective in choosing foods to eat (halal foods).

3.2.4 Technological Analysis

Africa is stated to be in a technological backward state, particularly in Nigeria due to the advent of colonialism; local residences of Nigeria perceive technology as a threat to the marketing of goods imported from Europe (Akaninwor, 2008, as cited in Uwaifo and Uddin, 2009). By 2010, the Federal Government of Nigeria had proposed an investment plan towards prioritizing telecommunication and information technology fields as a viral infrastructure for the country’s economic development (Climate Investment Funds, 2010). As a result, by 2015, the number of Internet users in Nigeria has increased up to 83.4 million (Linnington, 2015).

According to Ehimuan (2014, as cited in Linnington, 2015) smartphones are becoming a center tool for Nigerian residences to conduct product researches before purchasing an item; with 85% using smartphones, 30% computers, and 6% tablet devices for product research. Moreover, Nigerian consumers have shifted from brick-and-mortar to online shopping due to increasing availability and affordability of mobile devices (Linnington, 2015).

3.2.5 Legislation Analysis

The F&B industry in Nigeria consists of various standards, regulations and guidelines that must be complied to guarantee that food manufactured, distributed and retailed is safe for human consumption. The National Agency for Food and Drug Administration and Control (NAFDAC) is Nigeria’s regulatory body in the F&B industry (Michael, 2014). The rules and regulations to abide, are food labelling to be accurate and informative along with criterias such as expiration date and nutritional facts (NAFDAC, 2015). Moreover, food additives must be within the standards of Codex Alimentarius which is the same requirements as Malaysia’s Food Act 1983 (Loh, 2014). Thus, it is easier for MyKuali to be sold in Nigeria as they already fulfill the requirements of NAFDAC.

3.2.6 Environmental Analysis

Nigeria has a total of 923,768 sq. km, bordering the Gulf of Guinea, between Benin and Cameroon (Western Africa). The country has considerable amounts of natural resources such as natural gas, petroleum, tin, iron ore, coal, limestone, niobium, lead, zinc, and arable land which dubs the country as an extremely valuable country for those who can exploit these riches. Nigeria’s natural hazards which are exogenous, consist of periodic droughts as well as flooding (The World Factbook : Nigeria,