`

2023
INTERNATIONAL DIMENSIONS
OF MARKETING
Table of Contents
INTRODUCTION..................................................................................................................................................... 2
MACRO FACTORS................................................................................................................................................... 3
 POLITICAL STABILITY FACTOR...........................................................................................................3
 ECONOMICAL FACTOR.....................................................................................................................3
 SOCIAL FACTOR................................................................................................................................4
 ENVIRONMENTAL FACTOR...............................................................................................................4
MICRO FACTORS.................................................................................................................................................... 4
 BARGAINING POWER OF BUYER......................................................................................................4
 DISTRIBUTION CHANNELS:...............................................................................................................5
SWOT ANALYSIS..................................................................................................................................................... 5
PAKISTAN CHOCOLATE INDUSTRY ANALYSIS.............................................................................................. 7
COMPETITORS.........................................................................................................................................7
CULTURAL ISSUES IN PAKISTAN....................................................................................................................... 8
TARGET CONSUMERS IN PAKISTAN................................................................................................................. 9
MARKET ENTRY STRATEGIES........................................................................................................................ 10
MARKETING MIX................................................................................................................................................ 12
CONCLUSION........................................................................................................................................................ 12
REFERENCES........................................................................................................................................................ 13

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INTRODUCTION
The 2006 founding of Demarquette Fine Chocolates by chocolatier Marc Demarquette is
evidence of the skill and enthusiasm that go into creating fine chocolates. The business is well-
known for its commitment to using premium ingredients, maintaining traditional craftsmanship,
and pushing the envelope in terms of flavor innovation. In the world of artisanal chocolate,
Demarquette Fine Chocolates is a monument to the union of tradition and innovation. Focusing
on quality, innovation, and passion for the work, the company continues to wow chocolate lovers
with a variety of delicious and decadent treats. (Website for Démarquette Fine Chocolates).
Demarquette is a master at making delicious chocolates, but she also goes above and beyond in
how she presents them. The brand's dedication to providing a full sensory experience is reflected
in its exquisite and opulent packaging. Demarquette offers customers exclusive and distinctive
treats by releasing limited edition chocolates in addition to their regular offerings. These
chocolates are typically tied to seasonal themes or special occasions. Product list provided by the
company consists of:

1. Tea and Coffee Chocolate Caramel Cups: Delights & Decadence

A selection of exquisite chocolates with tea and coffee makes the ideal pretext for a
conversation break.
2. Selection Box for Gifts
A premium assortment of expertly made ganache chocolates.
3. African Queen Chocolate Truffles
Made with 68% ethical cocoa and blended with fresh cream and Tanzanian honey, this luxury
chocolate is the recipient of the Great Taste TOP 50 Award. Crisp Breton wafers are
combined with a hazelnut praline to form the chocolate's base.
4. Herd of Praline Seahorse
Dark chocolate mold filled with rich house hazelnut praline and adorned with a hand-painted
seahorse.
5. Praline Mushrooms
Hand-painted mushrooms filled with house-made hazelnut praline and encased in milk
chocolate.

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6. The English Garden
Twelve exquisite caramel cream chocolates in the shape of flowers, each with a subtle floral
flavour from around the country, make up this distinctively British luxury chocolate line.

The first country Pakistan will be suggested for international expansion. Pakistan offers a
substantial market for a wide range of goods, including luxury and premium goods, due to its
sizeable and expanding population.

MACRO FACTORS
The chocolate industry in Pakistan operates within a dynamic macro-environment.
 POLITICAL STABILITY FACTOR
From a political perspective, the stability of the government plays a crucial role, impacting
the chocolate industry's operational environment. Government regulations and policies,
especially those related to food safety, import/export practices, and business operations,
significantly influence the industry's functioning. (McCabe, 2015)

 ECONOMICAL FACTOR
Economically, the growth trajectory of Pakistan affects consumer purchasing power and
subsequently influences the demand for chocolate products. Fluctuations in inflation rates
and exchange rates can impact production costs and pricing strategies, posing challenges for
chocolate manufacturers. The country's economic growth and increasing disposable income
may result in a growing demand for luxury and premium products. (Toma & Săseanu, 2020)

 SOCIAL FACTOR
Social factors such as consumer preferences and demographics are pivotal considerations.
Understanding cultural nuances and adapting product offerings to align with local tastes are
essential for success in the Pakistani chocolate market. As Pakistani youngsters are very
enthusiastic to try different brands of chocolates. (Deam, 2020)

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 ENVIRONMENTAL FACTOR
Increasing environmental awareness is influencing consumer preferences and industry
practices in Pakistan's chocolate sector. Sustainability has become a key consideration for
consumers, leading to a demand for chocolates produced with environmentally friendly
practices. This includes a focus on sourcing sustainable cocoa, reducing carbon footprints in
the production process, and adopting eco-friendly packaging. Chocolate companies that
align with these environmental concerns may gain a competitive advantage in the market .
(Afrane & Ntiamoah, 2011)

MICRO FACTORS
The microenvironment in the marketing context for Demarquette Fine Chocolates' move to
Pakistan involves a close examination of various factors that directly impact its operations and
marketing strategies.
 BARGAINING POWER OF BUYER
One critical element is the availability of substitutes; if consumers have numerous options or
alternative sweets to choose from, their bargaining power tends to increase. The level of
consumer loyalty to established brands also plays a pivotal role, as a strong attachment may
reduce the likelihood of buyers switching brands solely based on price. And also
Distribution channels and the accessibility of chocolates through various retail outlets can
affect buyer bargaining power, particularly if there are multiple options available.
Furthermore, the effectiveness of promotional activities and discounts, as well as the
existence of high switching costs, can impact buyer negotiations. In conclusion, the
bargaining power of buyers in the Pakistani chocolate industry is dynamic and multifaceted.
(Duana-Ávila et al., 2023)

 DISTRIBUTION CHANNELS:
Developing relationships with local distributors and retailers is essential for efficient product
distribution. Understanding the dynamics of the local distribution network is crucial for
ensuring that Demarquette Fine Chocolates reaches the target customers effectively.
Traditional retail stores, including grocery stores, convenience stores, and supermarkets, are
primary distribution channels for chocolates. These outlets serve as convenient points of

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 purchase for consumers. Specialty chocolate shops and boutique stores focusing on
premium or artisanal chocolates cater to a niche market. These shops frequently offer a
distinctive and customized shopping experience. In addition, e-commerce has grown
significantly in popularity in Pakistan, and online merchants give customers a convenient
way to buy chocolates. Brands can work with well-known e-commerce platforms or have
their own website. (Hosseinzadeh-Bandbafha & Kiehbadroudinezhad, 2022)

SWOT ANALYSIS
When entering or operating in the Pakistani market, Demarquette Fine Chocolates, a well-known
brand recognized for its premium quality chocolates, may face a number of opportunities and
difficulties. One of its most prominent advantages is its standing for making premium chocolates,
which may draw in Pakistan's affluent customer base. The brand's dedication to producing
distinctive flavours and goods may also work to its advantage by giving it a standout advantage
in a market where conventional flavours are the norm. However, in a market like Pakistan where
price sensitivity is frequently a major factor influencing consumer choices, the high price point
associated with fine chocolates might present a challenge. The general public's purchasing power
might be a significant factor, and Demarquette might need to plan how to position itself to be
competitive while preserving its premium reputation. Demarquette could investigate different
pricing strategies in order to counteract the possible vulnerability of a high price point. This
could entail keeping larger, premium assortments for special occasions or gifting, but introducing
smaller, more accessible packs. Developing partnerships with other luxury brands or value-added
bundles could help to defend the premium price. (Misevic et al., 2020)
Moreover, Demarquette's low level of brand awareness in Pakistan might be a vulnerability.
Gaining the trust of customers is essential, and the business might have to make marketing and
promotional expenditures to become known in the community as a trustworthy and appealing
option. Pakistan offers opportunities for Demarquette due to the expanding middle class. The
growing middle class may lead to a rise in the market for high-end and upscale goods, which
would be advantageous for quality chocolates. Getting involved in e-commerce and online sales
can be another way to expand, particularly in cities where online shopping is becoming more and
more common. A successful internet marketing plan might enable Demarquette to reach more

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people. Opportunities-wise, there's a big market for luxury goods thanks to the expanding
middle class. (Harish, 2020)
However, the brand must be aware of various threats. Intense competition, both from local and
international chocolate brands, is a significant threat. Understanding the competitive landscape,
differentiating products effectively, and possibly collaborating with local retailers could be
strategies to navigate this challenge. Additionally, cultural differences in taste preferences may
require adaptation of products to cater to the local palate. Addressing regulatory and logistics
challenges is crucial for success in the Pakistani market. Import regulations and tariffs should be
thoroughly understood, and a seamless supply chain must be established to ensure the timely
import and distribution of chocolates. Collaborating with local partners who are familiar with the
market intricacies can be instrumental in overcoming regulatory hurdles and ensuring operational
efficiency. Demarquette might modify its marketing approach to target this market by
emphasizing the sophistication and exclusivity of its offerings. Investigating partnerships with
upscale lodging facilities, eateries, or shops can improve exposure and reach the intended
market. (Amjad et al., 2021)
Looking more closely at the data, Demarquette Fine Chocolates can use its advantages in
experience and quality to establish itself as a leading supplier of upscale candy in Pakistan.
Highlighting the skill and creativity that go into making each chocolate creation will appeal to
customers who value the finer things in gourmet goods. One of Demarquette's main
differentiators may be their distinctive chocolate flavours. The brand's attractiveness can be
increased by carrying out market research to comprehend Pakistani consumers' preferred
flavours and customizing products to fit regional preferences. Moreover, launching seasonal or
limited-edition flavours influenced by Pakistani ingredients or celebrations can generate buzz
and boost sales.
In conclusion, Demarquette Fine Chocolates can improve its chances in the Pakistani market by
combining a strong distribution network, strategic marketing, and product adaptation. In
Pakistan's expanding luxury confectionery market, the brand can establish a niche for itself by
comprehending and adjusting to local preferences and market dynamics. (Gurl, 2017)

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PAKISTAN CHOCOLATE INDUSTRY ANALYSIS
Pakistan's chocolate exports increased by 105% in 2022 over 2021. Exports increased
significantly overall. With a 538% increase over the previous year, 2017 saw the highest growth
rate ever recorded. The exports peaked in 2022 and are predicted to continue growing in the near
future during the review period. All things considered; exports are still showing a notable rise.
After two years of decline, international supplies of chocolate and cocoa products increased by
12% in 2022, marking the second consecutive year of growth. Overall, imports demonstrated a
significant increase. The year 2021 saw the largest growth rate, with imports rising by 61%. 2022
marked the peak of imports, and growth is anticipated to continue in years to come. (Khan &
Tariq, 2023)

COMPETITORS
 Mitchell's Fruit Farms Limited
 Tang
 Nestlé Pakistan Limited
 Giggly
 Lala's Chocolates
 EBM (English Biscuit Manufacturers)
 Lindt
 Dairy Milk (Mondelez International)
 Choco Bliss
 Meiji

CULTURAL ISSUES IN PAKISTAN

Moving a company like Demarquette Fine Chocolates to a new cultural context like Pakistan
requires careful consideration of cultural issues that may impact consumer behavior. Here are
some key cultural factors to analyze.

Religious Sensitivities:

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Pakistan, being an Islamic country, places significant importance on religious sensitivities.
Demarquette Fine Chocolates should ensure that all aspects of its products, from packaging to
marketing, align with Islamic values and traditions. Avoiding any imagery or messaging that
could be perceived as disrespectful to Islamic principles is crucial. Additionally, being mindful of
religious holidays, such as Ramadan, and tailoring marketing efforts to these occasions can
enhance the brand's resonance with the local consumer base. (Levesque, 2013)

Taste Preferences:
Success in the Pakistani market requires an understanding of local taste preferences. In-depth
market research should be done by Demarquette Fine Chocolates to determine Pakistani
consumers' favorite flavours, sweetness levels, and textures. By tailoring the product offerings to
these preferences, the chocolates will be more likely to be accepted and become popular because
they will appeal to the local palate. (Abbas et al., 2020)

Language and Communication:

Building a relationship with Pakistan's consumer base requires effective communication.
Demarquette Fine Chocolates should make sure that all marketing collateral, such as
advertisements and product labels, is available in Pakistan's official languages, Urdu and
English. This bilingual strategy shows consideration for cultural differences and makes the
community more accessible. (Tracy, 2020)

Social Structure and Hierarchy:

Pakistani society is hierarchical, and successful marketing requires an understanding of this
social dynamic. Demarquette Fine Chocolates can appeal to higher socioeconomic classes by
establishing itself as a premium brand. Marketing messaging that highlights exclusivity and
quality can help the brand fit in with this demographic's preferences. (Black, 2003)

Halal Certification:
Since Pakistan is an Islamic country, getting certified as Halal is essential. By guaranteeing that
the chocolates abide by Islamic dietary regulations, this certification addresses a basic consumer
expectation and fosters confidence among the community. (Hakim & Aziz, 1998)

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TARGET CONSUMERS IN PAKISTAN
Given the diversity of Pakistan, the target consumer profile for Demarquette Fine Chocolates is
multidimensional. Although the demographic composition varies, it is expected that the ideal
customer will encompass a range of age groups: young adults who are looking for indulgence,
middle-aged people who value quality, and older consumers who value sophistication. However,
considering the premium positioning of Demarquette Fine Chocolates, special attention might be
paid to the middle- to upper-middle-class demographic. (Ghani, 2014)
Targeting consumers primarily in urban and suburban areas is likely to be the strategy's
geographic focus. With their more affluent and multicultural populations, cities like Karachi,
Lahore, and Islamabad offer substantial prospects for brand penetration. Additionally, the
consumer base in these urban areas is more diverse, which makes it possible to use a nuanced
marketing strategy that can accommodate a range of preferences. An additional crucial
component of the target consumer profile is education level. It is anticipated that the ideal
customer will be at least somewhat educated, as this group flavours and actively seeks out high-
end, premium goods. This well-educated customer base is probably more discriminating and
appreciates the artistry and excellence that Demarquette Fine Chocolates stands for. (Chudry &
Pallister, 2002)
Additionally, foodies who value and seek out distinctive culinary experiences can be described as
the target consumer in Pakistan. Chocolates appeal to people who appreciate the finer things in
life because they are not only viewed as candy but also as a kind of indulgence and art. The
brand's emphasis on premium ingredients and artisanal craftsmanship suits the tastes of
customers who view chocolate as a luxury and a reflection of their refined lifestyle. For the target
consumer profile, it is also essential to comprehend the hospitality and gift-giving customs of the
area. By capitalizing on Pakistan's rich tradition of gift-giving during festivities and festivals,
Demarquette Fine Chocolates can present itself as the perfect option for presents. This is
consistent with the customs of the culture in which giving gifts is a way to show someone you
care and appreciate them. (Saleem et al., 2018)
In conclusion, the ideal customer for Demarquette Fine Chocolates in Pakistan is a well-
educated, multicultural person with a refined palate, a fondness for decadence, and an
appreciation for culinary artistry. The brand can create a strong bond with Pakistani consumers

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and carve out a niche for itself in the premium chocolate market by customizing marketing
strategies to align with these attributes. (Iqbal & Ghafoor, 2013)

MARKET ENTRY STRATEGIES

Considering Demarquette Fine Chocolates' entry into the Pakistani market, several market entry
strategies are available:
Exporting:
Exporting offers a low-risk entry strategy for Demarquette Fine Chocolates. By initially
exporting products to Pakistan, the company can test the market without making substantial
upfront investments. However, challenges such as trade barriers, transportation costs, and
potential quality control issues must be carefully managed. Notwithstanding these difficulties,
exporting gives businesses the freedom to scale their operations in response to market demand.
(Cooper & Kleinschmidt, 1985)

Licensing or Franchising:
Franchising and licensing are examples of cooperative strategies that make use of regional
knowledge. Collaborating with well-established companies in Pakistan can hasten market entry
by leveraging pre-existing networks and clientele. Although there are costs and risks associated
with this strategy, it can be difficult to maintain quality control and consistent brand
representation. Success depends on finding compatible partners who share the standards and
values of the brand. (Hoffman & Preble, 1991)

Strategic Alliances or Joint Ventures:

Establishing joint ventures or strategic alliances with nearby businesses gives Demarquette Fine
Chocolates the chance to share risks and acquire insightful market knowledge. Navigating
cultural quirks and regulatory complexity can also be facilitated by collaboration. Aligning
business strategies, decision-making procedures, and profit-sharing agreements, however, may
present difficulties. Finding a trustworthy and compatible local partner is essential to the success
of this plan. (Kogut, 1988)

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Wholly Owned Subsidiary:
Creating a fully owned subsidiary in Pakistan provides the maximum degree of control over
branding, operations, and quality requirements. This tactic enables one to interact directly with
the market and customize business plans to suit regional tastes. Notwithstanding, the obstacles
encompass a substantial upfront outlay, maneuvering intricate regulatory structures, and
possessing an in-depth comprehension of the regional market dynamics. It's a long-term
commitment that calls for careful resource allocation and planning. (White III et al., 2014)
A phased approach could be taken into consideration when recommending a market entry
strategy for Demarquette Fine Chocolates in Pakistan. Starting to export or establishing strategic
partnerships can offer important insights into the dynamics of the market. Moving to a wholly
owned subsidiary for more control after a firm grasp is obtained and the brand becomes well-
known could be a wise long-term move. This strategy strikes a balance between the need for
control and market responsiveness and risk mitigation.

MARKETING MIX
Businesses frequently must modify certain components of the marketing mix when entering a
new market in order to make them compatible with the target market's social, cultural, and
economic context. The four Ps of marketing are Product, Price, Place, and Promotion. Together,
they make up the marketing mix. When Demarquette Fine Chocolates enters a new market in
Pakistan, it should implement these marketing mix components.

PRODUCT:
 Taste Preferences: Chocolate flavours and ingredients should be modified to
accommodate Pakistani local tastes. To make the product more appealing, think about
adding traditional flavours or locally sourced ingredients.
 Packaging: Adjust packaging to conform to regional aesthetic standards and cultural
moors. Make sure the packaging represents the target audience's preferences and contains
information in the local language. (Hayat et al., 2019)

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PRICE:
 Affordability: Establish pricing plans that take Pakistan's economic circumstances into
account. To choose the best pricing plan, consider the local purchasing power and the
level of competition in the chocolate market.
 Currency Considerations: Consider current exchange rates as well as any future swings
that might have an impact on pricing choices. (Ali & Ilyas, 2016)

CONCLUSION
The business should modify its product and marketing strategies to better suit the tastes and
cultural quirks of Pakistan's customer base. Success in a new market also depends on forming
reliable alliances with regional distributors and retailers, adhering to local laws, and upholding
high standards of quality.

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