The relation between Marketing & Supply Chain Management ( P )

Chapter 4 – Research Findings –Data and analysis section

4.1 Introduction 

After establishing the research methodology adopted in this study in chapter three above, this chapter presents the research findings obtained. Out of the 120 questionnaires issued to the selected participants, only 101 were completed making the total completion rate to be 84%. This chapter starts by presenting the background information of the participants on the survey that was conducted on customers as well as from the interview with the companies’ SCM, Marketing, Sales, HR and Legal departments also with the departments directors. Further hypotheses are tested and analyzed using appropriate statistical tools. Afterwards, findings on how supply chain management should be more strategically integrated with marketing activities. As well as the importance of integrating local marketing talent within the supply chain network for the Multinational firms on more strategic level, due to the rapid change of global business environment and customer perception as the dynamic consumer needs.

The dissertation Hypotheses

1. If the integration between local marketers and supply chain management for the multinational firms are only on the operation and tactics level, the local customers voice will not be very clear to the multinational firms’ head quarter.

2. The strategic integration between marketing and global supply chain will lead to more competitive advantage and increase the customer service & loyalty that lead to increase the outcomes. 

3. There’re 3 point of view could be differentiated which include the integration of inter -functional, process, and business concept which can move the integration between marketing and supply chain management on More strategic level.       (Strategic integration Framework)

The proposed framework builds on these perspectives, which captures the integration between marketing and supply chain into business unit and moves them onto more strategic level. Integrating marketing and supply chain strategies involves the management of the following levels of integration:

• Strategic corporate, customer, and shareholder integration.

• Strategic supplier integration.

• Strategic marketing and SCM with the local marketing talent integration 

4. The strategic integration between global supply chain management for the Multinational firms and the local marketing talent will lead to utilize the concept of Economies of scale & scope in the best usage 

Customer assessment through Facebook before going to the main research topic 

Before going in depth in the main topic” Global supply chain with the local marketing talent” an assessment of customers preferences between global, glocal, and local marketing activities has been conducted through a survey using questionnaire data collection made on 120 random sample.

. When the sample was asked about how they prefer to see the product's promotions, the largest percentage 60% of the sample that stated that they prefer the global promotions but with some customization that fit to each region and market considering their cultures and preference, the other 30% divided between customers who prefer the total standard promotions and marketing campaigns and the total customized promotions and marketing campaigns. We can conclude that the global norms of customers are high but almost of them prefer the customization but not totally localized without integrating to global campaigns 

 55% of the sample appreciating companies which promote for their products targeting each country separately depends on their cultures and preferences while 37% exceeds the degree of appreciation and they become loyal to those brands, and the rest of the sample which presents 8% don't care.

 The survey also showed a great tendency for paying more attention on the brand name itself over than the country of origin, that was revealed by the 70% who stated that they focus more when they buying the product on the brand name while 30% who said the focus more on the country that made that product.

 While assessing the most reason which increase the customer's loyalty to a brand, the answers was split to 30% for the brands that make a special discounts specially for them and 40% finds their loyalty with the brands that specify the marketing and promotion activities specially for them. And 20% finds their loyal to find the brand in various places.

 The results also showed that the 46% preferring watching international celebrities presenting the brand’s promotion and sponsorships but designed along with the local preferences of their countries while 20% prefer watching promotions presented by international celebrities presenting international standard message for all countries and 34% prefer watching local celebrities promoting for the brand. We can conclude that almost of customers that surveyed like the global brands but on a local modifications. Which support the idea of global supply chain with the local marketing talent, but this only according to marketing and advertising not about the research main topic but we can assess the customers demands from this survey which will be valuable according to the research main topic.  

4.2Participants’ Background Information in the first part of the questionnaires.   

Based on the findings obtained in this study, it was revealed that more females than males participated where there were only 46 males against 55 females. On cross-tabulating the number of male and female participants with their ages, it was revealed that the female gender dominated in all the ages (as shown in table 4.2 below). This clearly shows that, there are more female buyers of fast moving consumer goods in Egypt than males. 

Table 4.2 – Cross-tabulation of gender and age of the participants

In addition, the frequency of shopping at Hyper One among the participants was also investigated; in addition to the accessibility of Pepsi, Coca- Cola, Nestle and Almaraie products in the supermarket. Based on the findings obtained, it was indicated that the majority of the participants were ‘frequent’ at the supermarket (as shown in figure 4.2 below); while all the participants indicting that they were able to access all the three brands in the store. This clearly shows that, the three companies have adopted an effective supply chain, which enables all their products to be accessed to the customers.

Figure 4.2 – Frequency of Shopping at Hyper One Supermarket 

4.3 Testing and analysis the first hypotheses (If the integration between local marketers and supply chain management for the multinational firms are only on the operation and tactics level, the local customers voice will not be very clear to the multinational firms’ head quarter).

The surveys which addressed only to the customers to assess their perceptions on The marketing strategies of some FMCG in Egypt that occurred by the researcher in Hyper one Super market and others as well as through internet in order to assess how the importance of integration between local marketers and global supply chain management design within global supply chain network which was clear through the literature review chapter and will be discussed in more details on the following paragraphs, adopted the following hypotheses, which will be tested in this section. The first hypothesis is focusing on the customers needs, demands and perceptions, so it’s focusing on the centralization Vs. decentralization as well as standardization VS adaptation of the FMCG to ensure the importance of the local marketing strategies on the global supply chain management design To reach the local customer’s voice.

To analyze the first Hypotheses, we have to divide it to 3 points

A - Supply chain management activities are directly related to customer satisfaction

On testing and analyze this point, regression analysis model was employed in which the independent variable was supply chain activities while the dependent variable was customer satisfaction. Among the key variants, which were used to determine the effectiveness of supply, chain management were ability to access wide range of product lines in a single store, consumer prices, and the flow of products (new and old) within the supply chain. Based on the findings obtained, the R-value of 0.945 obtained indicated a very strong positive relationship between supply chain management activities and customer satisfaction (as illustrated in table 4.3A ). This is confirmed by the significance level (P value) of 0.000. As such, the point is accepted. As it was clear within the literature review; the importance of integration between marketing and supply chain and this is an essential topic which can determine the multinational firms can compete in the global market or not so the Multinational firms should set their strategies to satisfying customers and this requires understanding of the customer value creation process as well as it aims to maximizing the co-creation value across target customer segments which considered as the main objective that drives the close interaction between marketing and supply chain management, which will be discussed in the following paragraphs.

Table 4.3A – Regression analysis on the relationship between supply chain management and customer satisfaction

B - Adopting localized marketing strategies on global supply chains leads to higher customer satisfaction

In correspondence to the conceptual framework in this study, the relationship between localized marketing strategies on global supply chains with customer satisfaction was tested.  The participants’ preference of localized marketing activities including advertising over standardized ones by multinational firms was considered as the independent variables, whereas the participants’ satisfaction from the quality and variety of products offered by the selected four brands (Pepsi, Coca Cola, Nestle, and Almaraie) was the dependent variable. This analysis was done using Pearson’s correlation coefficient because the variables were only two. Based on the findings obtained, the R2 value of 0.910 indicated a very strong positive relationship between the variables (as shown in table 4.3B below); and hence this point is accepted. According to this point the customization in FMCG is becoming a basic issue, but the idea lies on how the Multinational firms conduct this customization through professional instruments and strategic integration between marketing and supply chain within effective supply chain network which is required more strategic integration with the local marketing talent. 

Table 4.3B – Correlation analysis between customer preference of localized marketing activities on global supply chains and customer satisfaction 

C - Integrating customers’ needs along the supply chain leads to higher customer satisfaction and loyalty intentions

Further, the relationship between integrating customer needs along the supply chain management and customer satisfaction was investigated. In this analysis, accessibility of consumer products, prices, and customer service that meets the needs of the customers were independent variables, whereas customer satisfaction was the dependent variable. The analysis was done using regression in which the R-value of 0.947 obtained indicated a very strong relationship between the two variables (as shown in table 4.3C). On testing the level of significance, the P value of 0.000 obtained confirmed the positive relationship between the research variables; and therefore the point is accepted. 

The Multinational firms have to come a long way as a profession through changing their focusing from merely providing excellence customer service to actually managing relationship with target customer segments. As the customer demands are becoming highly dynamic and the rapid change on the global business environment required from the Multinational firms to consider laggards in adopting this game changing trends to achieve higher customer satisfaction.

Table 4.3C – Regression Analysis of Supply Chain Ability to meet Customer needs and Customer Satisfaction 

After we examined the customers dynamic needs, we can conclude that on FMCG the marketing activities should be adopted to meet the local customers needs so the supply chain management should also be adopted to meet those different needs, in turn the integration between marketing and supply chain management should be more integrated on a strategic level that will be more clear on the following paragraphs. 

4.4 Testing and analysis the second hypotheses (The strategic integration between marketing and global supply chain will lead to more competitive advantage and increase the customer service & loyalty that lead to increase the outcomes). 

Besides the use of self -fulfilling questionnaires, the researcher also conducted interviews with experts in supply chain management and marketing activities who were all directors of the respective departments in the three selected organizations (Coca Cola, Pepsi and Nestle) in Egypt. When asked what they think about the link between marketing activities and supply chain management, all the marketing and supply chain directors acknowledged that supply chain management and marketing are inseparable. For instance, the marketing director of Pepsi indicted that, ‘...there is no doubt that supply chain activities must be informed by the market conditions....’ Similarly, the supply chain director of Coca Cola indicated that, ‘.... to be sincere, it is impossible to achieve sustainable marketing activities without a plausible supply chain....’ With regard to a previous study conducted by Juttner, Christopher & Godsell (2010), integrating supply chain management operations with marketing activities is necessary because market needs dictate ‘what’ is to be supplied and ‘how’ the final products will be supplied to the markets.

When asked whether market orientation should be extended to supply chain management orientation, the majority of the interviewees revealed that extending marketing orientation to supply chain orientation is necessary for sustainable customer orientation. For example, the marketing director of Nestle indicated that, ‘.... it is necessary to understand the market dynamics and extend them within the supply chain....’ Similarly, the supply chain management director of Coca Cola noted that market dynamics informs any changes in the supply chain, and thus market orientation usually informs supply chain orientation. As such, organizational learning was considered in this study to be a collaborative approach in the supply chain and marketing sides. For instance, the supply chain management director of Pepsi revealed that, ‘.... given the link between supply chain management and marketing,then definitely learning in the entire organization must be a collaborative approach in both the sides...’ This clearly shows that marketing management and supply chain management ought to be collaboratively managed within global organizations. In this regard, both qualitative and quantitative customer data was found to be quite useful in predicting customer value along the supply chain.

Among the best practices that this study revealed to be quite useful in facilitating integration of marketing strategy and supply chain management is technology within an organization’s value chain. Among all the interviewees in this study, the use of electronic data interchange (EDI) and point of sale (POS) technologies were revealed to be among the most useful supply chain management systems which help in linking the entire supply chain with demand chain management system. For instance, the supply chain management director of Nestle noted that, ‘...using technology in integrating supply chain with the demand side is quite useful, like the use of electronic data interchange and pint of sale software....’ As a result, inter-functional integration was considered to be necessary in order to ensure that marketing, logistics and manufacturing are linked; in order to facilitate the integration of marketing and SCM processes.  As revealed by the marketing director of Coca Cola, ‘...linking marketing with logistics and manufacturing facilitates a holistic approach towards marketing efficiency....

The use of local marketing workforce (talents) was also highlighted in this study to be necessary in order to enable an organization to be able to understand the needs of the communities they serve better. Through the use of local talent, it becomes easier for an organization to be able to coordinate supply chain management with the marketing activities. Based on Wolf (2013) ideas, local staff members are usually preferable in multinational firms because of their ability to integrate the local values into the organizational value chain; and thus promote a better relationship between an organization and the communities around them. This explains why it is necessary to integrate local marketing talents into the supply chain management activities of multinational firms in order to enable the firms to be in a position to meet the specific needs of the local markets in the most effective manner as the researcher see that integrating the local marketing talent with the global supply chain for the MNC in more strategic level will facilitate the information flows between the partners within the supply chain network.

When asked about whether the integration of SCM and marketing can lead to quick response, all the interviewees acknowledged the significance of integrating the entire supply chain with marketing activities in order to enhance quick response. As indicated by the supply chain director of Pepsi, ‘...when marketing intelligence information is shared in timely manner to the upper echelon of the supply chain, then it becomes easier for manufacturers to respond quickly to any changes in demand...’ This brings in the concept of agile supply chain where unnecessary inventories are avoided within the supply chain when the market information is shared within the supply chain (Banker, 2009). For example, the marketing director of Nestle indicated that, ‘...when sufficient information about the market demand is shared in timely manner within the supply chain, then it becomes easier to control inventories within the supply chain....’ This leads to demand chain management where marketers tend to receive the right amount of stocks from the supply chain side based on the demand. These findings seem to corroborate with a previous study conducted by Juttner, Christopher & Godsell (2010) which revealed that, integrating supply chain management and marketing is necessary for prospective organizations in the currently globalized environment.

However, this study revealed several challenges that face the integration of supply chain management and marketing. As indicated by the supply chain management director of Pepsi, ‘...supply chain complexity in overseas markets resulting into bullwhip effect is a major factor than has been interfering with agility in many supply chains...’ With numerous middlemen, some companies find it difficult to track their products along the supply chain, and subsequently source information from the market up-stream in the supply chain (Flint, 2004); and posing a potential challenge in ensuring cohesive supply chain integration with marketing activities. Another key challenge was indicated by the supply chain management director of Nestle who pointed out that, the highly dynamic consumer needs makes it difficult for firms to make forecasts on demands; and thus making it difficult to balance between demand chain and the processes in the upper echelon of the supply chain. In order to counter the challenges related to market dynamics, (Dubais, Hulten & Pedersen ,2004) suggests the use of automated supply chain management system which enables instant sharing of information up-stream or downstream along the supply chain. For example, in cases of any unexpected changes in the market, retailers are able to share the information quickly to the manufacturers and thus enhance quick response within the system. 

Nevertheless, this study revealed that there are some legal issues that multinational firms must adhere when integrating their supply chain management and marketing activities. Among such issues is the competition law, which inhibits large firms from making collaborations. In addition, the legal practitioner of Coca Cola also noted that, ‘...ethical sourcing of raw materials is also necessary, while also providing honest promotions to the customers...’ In multinational companies, the legal practitioner of Pepsi indicated that, ‘...legal and cultural diversity is a key factor which firms must consider when planning a marketing or supply chain design....’ This clearly showed that, all the activities related to supply chain management and marketing have legal obligations and thus organizations must always act within the stipulated legal frameworks in the countries they operate in.

 When we go to the interview with the martial planner director of Almaraie. And it was very important; especially Almaraie is in a joint venture with PepsiCo. 

First let’s introduce this partnership, basically the partnership is joint venture which 51% Almarai & 49% PEPSICO, by the way they share a specific Juice Beyti that was owned by Beyti company, before the company sold to Almaraie and PepsiCo. But they still offer Beyti juice in the Egyptian market until now and this will be clear within the body of the interview.

To understand well the conclusion of the interview so we have to represent the interview in some details:

When the researcher asked her about the way of working on supply chain department, and the challenges. She told me if they have a launch on a tide time, the Supply chain department can go to external suppliers, so we can conclude that the policy of SCM regardless dealing with internal suppliers or external suppliers, but the main important is the quality and the lead time and this what the researcher is focusing on this research, the strategic integration within supply chain network, as we know Marketing and sales considered as an internal customers of supply chain, so supply chain department 'is trying to achieve the marketing and sales needs as well as the marketing and sales departments should respect the timeline and business flows of supply chain network. When the researcher asked her about if the marketing department as an internal customers to the supply chain department can change or alter the supply chain design at any time regardless the terms and the conditions of working? She answered that Supply chain department take the plans and instructions from the marketing department but in case the marketing needs a specific products from the supply chain department for a particular events, the operation of that has to be on a marital plan in six or seven months before the event on also she said to me that, the supply chain can bring everything from local external suppliers or global external suppliers or mix between both, but everything have to be aligned within the supply chain management “the supply chain network”.

Now we ‘re moving to the main important point about the collaboration between Almaraie and PepsiCo. 

The researcher asked her about the nature of this partnership on the way of working and communication between all partners within the supply chain network, she said PepsiCo. Deal directly with the marketing department of Almaraie, as the marketing department considered as an internal suppliers to Almaraie’s supply chain department so the information flow within the supply chain network play a vital role to ensure the efficiency of the activities which enables all the partners within the supply chain network to represent their perspective, also she said the only direct communication between the supply chain department of Almaraie and PepsiCo Lies on one or two meetings between PepsiCo’s board director and Almaraie’s supply chain department during the year. Hence the role of the marketing department to ensure the efficiency of the information flows within the supply chain network. Also when the researcher asked her about the main challenges that face Almaraie’s supply chain, she said that PepsiCo. Could restrict specific lead-time and specific external suppliers on Almaraie’s supply chain to bring some of raw materials of some sorts” tastes” within (Tropicana juice) from a specific supplier either locally or globally so Almaraie’s supply chain can face some problems in case of the external supplier don’t respect the timeline that PepsiCo needs in its product (Tropicana), by the way the marketing department is also responsible to achieve this operations so the effective information flow is a very critical player within the supply chain network, when the researcher asked her about what Almaraie’s supply chain do to prevent the problems that could face when dealing with  specific external supplier which PepsiCo Choose it? She said that Almaraie’s supply chain start to set internal strategy to prevent these problems to happen such as set higher safety stock also they could increase the led time, also the researcher asked her in case of the external supplier do a big problems on delivering the raw martials to Almaraie’s supply chain, what Almaraie will do? She said also PepsiCo. Haven’t access to handle these problems and Almaraie’s supply chain with the marketing department are the only 2 partners who responsible to handle all of these problems in front of PepsiCo, so if the problems with the external supplier that Almaraie deal with didn’t solve, then Almaraie’s supply chain and marketing department can recommend PepsiCo another external supplier so again PepsiCo. Do their Investigation on this external supplier which requires effective investigation from the local marketers of PepsiCo, Hence the improvement of the local marketing talent of the Multinational firms is very important and also can play a Multi roles within one country or could be within other countries and the researcher will discuses it in the following hypotheses of the research.

 Come back to the relation between all partners within the supply chain network, the Researcher asked her which suppliers does PepsiCo Prefer local or multinational external suppliers? She said both is acceptable to PepsiCo, but the main important is the quality so we can conclude that the global norms within the integrated / Interdependent economic system “ Global economic system” ease a lot of procedures in today’s business. 

Finally the researcher asked her about the partnerships that occurred between Almaraie and PepsiCo. Still offer “Beyti Juice” in the Egyptian market that was owned for “Byeti company before it sold to Almaraie and PepsiCo, she answered that Both companies realized that Beyti juice” has a high market share in the Egyptian market so they still sell the juice through the know how of the Beyti company so we can conclude that everyone in the supply chain may value something different. As well as recognizing that many methods both qualitative and quantitative will be needed to capture those different values perception. But the main important to ensure the efficiency between all partners is the strategic integration between marketing and supply chain management.

From the last interview above we can conclude that supply chains involve relationships through key firms who could in one form of partnerships such as joint venture, strategic alliances or merger and acquisitions or others which required effective supply chain network and strategic integration between marketing and supply chain management to attain Mutual strategic goals for the multinational firms.

Finally in the second hypotheses we can conclude from the above; the advantages which the Multinational firms can gain from the integration between marketing and supply chain management and the importance of local marketing talent to be integrated with the Global supply chain management design in more strategic level for the Multinational firms within a particular framework which will be discussed on the research framework on the third Hypotheses.

4.5 Testing and analysis of the third hypotheses (A strategic integration framework)

There’re 3 point of view could be differentiated which include the integration of inter -functional, process, and business concept which can move the integration between marketing and supply chain management on More strategic level. 

The proposed framework builds on these perspectives, which captures the integration between marketing and supply chain into business unit and moves them onto more strategic level. Integrating marketing and supply chain strategies involves the management of the following levels of integration:

1. Strategic corporate, customer, and shareholder integration.

2. Strategic supplier integration.

3. Strategic marketing and SCM with the local marketing talent integration.

Introduction on the proposed framework 

When we describe these three levels of integrations as they related to each other, we have to put the first and second levels under the third level that’s  “strategic integration between marketing and SCM with the local marketing talent “to realize and understand well the research main idea and the additional factor that added on the framework that’s local marketing talent.

First level of integration (strategic corporate, customer, and shareholder integration)

The firm’s objectives of the business or unit should be aligned for customer and share holder value creation specially on the large firms, as we understood from the literature review chapter as well as from the pervious paragraphs that, the integration between Marketing and supply chain management are mainly focusing on linking the customer value creation and market performance, but as we mentioned that specially on the large companies such as the Multinational firms, the focusing should includes the shareholder value creation, actually this can be done through the strategic integration between marketing and supply chain management, so from this point we argue that this strategic integration could mediate the link between customer value and shareholder value creation specially both are already sharing common and same asset base which they build on, basically we can judge and evaluate marketing on how it develop and improve the share holder value as well as the main important criteria which we can measure the marketing performance is; its efficiency on customer value creation. From this point we can conclude that customer and channel relationships shouldn’t only seen as an objects of marketing actions because of, it should be seen as  a strategic asset of the firm which have to be well established, according to the supply chain which have highly concern from the top management at any firm, on its relation with marketing , we can measure the supply chain performance as a partner within the supply chain network  through  its efficiency on improving the short term cost effectiveness (Lacefield, 2007) , so from this point the risk on destroy the shareholder value as  (Christopher and Ryals 1999) discussed that supply chain as an element to improving the short term profit which based on the supply chain can destroy a shareholder value if they undermine a firm’s financial health in the longer term. Some researchers develop the framework in the way of linking market based asset on market performance and ultimately shareholder value and also others extended the principles and link between asset, performance and value to include the integration between marketing and supply chain management, and this research are developing the framework to including the strategic integration between marketing and SCM with the local marketing talent, as the Multinational firms serving diverse markets which have diverse customers so the strategies ,operations should be achieved through effective information flows within the supply chain network. Hence the role of the local marketing talent emerges, which will be discussed on more details on the third level of integration within the proposed framework of this research.

 Come back to the first level of integration within the proposed framework of this research which is (strategic corporate, customers, and shareholders integration)

Shareholder value is created when the firm’s performance within the market generate high returns which is compensate the investments of the total expenses and costs which occurred through the investors as well as a premium which more than compensate for the additional risk incurred. We can say that the strategic assets considered a basis for the shareholder value and this is because of they facilitate and enable the firms to generate strategies and implement it which enhancing its effective and efficient performance within the market as well as ensure the competitive advantage, but this strategic assets have no value unless it converts and transmitted into the customer value creation. From this point we can say that marketing and supply chain management build on the same strategic assets that is (customer, channel, supply chain) relationships. To realize this point we have to understand the marketing and supply chain roles on this issue.

 Supply chain relationships comprise upstream and downstream relationships with customers and suppliers and on this point, the researcher will discuss it on the second level of integration as the marketing is playing a vital role in ensuring the information flow within the supply chain network as well as the Supply chain management and marketing have a significant effect on balance and link between customers and suppliers. Marketing is doing a very important role which can be described on the marketing channel relationships take a downstream perspective on the firm’s integration with the partners within the supply chain network, as the researcher mentioned on above that marketing department play a vital role in ensuring the information flow as on this chain the Multinational firms will deal with internal and external suppliers either locally or Globally. Hence the role of local marketing talent play a vital role which facilitate the Multinational supply chain network activities in different markets across the world which requires high and professional skills as well as good understanding of the local culture and business environment in the foreign market.

Marketing and supply chain strategies are linking these assets to the key shareholder value driver of accelerated cash flow, both doing an effective activities beside accelerating cash flow such as improving the cash flow operation as well as reducing the changes or vulnerability of the cash flow for instance marketing strategies as  one of its main important objectives to enhancing and developing the long term relationships with customers and through this, the firm can reduces the time for market penetration and for the multinational firms which the time is considered as an important element, the local marketers can enhance the Multinational firms ability to reduce the time on penetrate the market then the cash flow will be accelerated also the local marketers could developing the customers loyalty  and this also will enhance the cash flow or reduce the volatility in cash flow among the stability in the relationships with the local customers that need close relationships according to their  different culture and behaviors. Supply chain strategies in turn also play a vital role on this through it can comprise the time and shorter end to end pipeline time so it has a positive significant effect on the relationships between the parties within the supply chain network. Finally the integration between marketing and supply chain on foreign market will enable the Multinational firm to have high response to the market rapid changes which lead to reduce the risks and uncertainty or lost the market share and revenues. When we talking about the strategic customers that; the Multinational firm should make the customers as we mentioned above that customers are a strategic asset which should build and enhanced on their relations with the firm through the integration between marketing and supply chain within the supply chain network, we can say that customers value creation process considered as the starting point for the segmentation as the customers characteristics has highly dynamic changes so the integration between marketing and supply chain management should move into more strategic level and this research suggest that local marketing talent which should be integrated with the global supply chain management design in more strategic level not only operational and tactics level, as the information flows and customization of products and services play a vital role on enhancing the Multinational firms competitive advantage within the global market.

Also strategic customers including focusing in customer needs and value creation approach should be aligned with the firm’s value propositions, as the research idea emphasized that the Multinational firm should understand the different customer characteristics and needs through the local marketing talent so this required understanding of the customer value creation process as well as it aims to maximizing the co-creation value across target customer segments which considered as the main objective that drives the close interaction between marketing and supply chain management.

The value co-creation perspective based on the customer is always co-producer, that’s means the customer is interact with the firm, we can say that customer value creating process as the starting point for segmentation.

The customer value creation can be described as a set of activities which done by the customer in order to achieve a specific goals, when the company seek to increase the degree of customer integration. It should develop the customer value creation by using a specific process such as enhancing the customer capability to utilize the available resources in higher degree of efficiency and effectiveness such as according to the marketing perspective; customers can use the brand in their own advertising. And according to the supply chain perspective; short lead-time and short cycle time requires in delivering the products or services to the customers. We can conclude that, the ideas of the customer value as co-created value involving well understanding what are the features of the customer value and translated to the value proposition as the customer demand is highly dynamic and highly changed as well as has differences from market to another, so according to the Multinational firms which is serving in different markets, the local marketing talent play a vital role to link between the marketing’s perspective & process as well as supply chain’s perspective & process within the supply chain network as the information flows is highly utilized. 

To summarize the strategic corporate, customers, and shareholders integration, we can say that the strategic integration between marketing and supply chain management should link between focusing with customers value and shareholders value creation through what the researcher mentioned above on this paragraph.

Second level of integration (Strategic supplier integration)

On this level of integration, the firm’s co-creation, which based customer segmentation is integrated with the approach of supplier’s value creation, it includes synchronized downstream customer and upstream suppliers segmentation. On this strategic supplier integration we can find many researcher which emphasized on the integration between customer and supplier, the companies which with upstream and downstream integration outperform others, so we can conclude that to handle this issues the company should be aware of a range of performance indicators such as market share, profitability and return on investments as well as return on assets or overall customer service, some researchers such as (Lee, 2002) adopt logic strategy which designed to balance  the uncertainties on customer demand with supply side uncertainties, Lee said that from an integration perspective; the supplier strategy cannot be suffice in express in terms of the closeness and quality of the social relationship (e.g. Gundlach et al., 1995). . On this point, this research is seeking to continue on this concept, which is that social relationships are not sufficed for strategic supplier integration. To realize the researcher point of view according to this point, we have to remember the interview, which the researcher did with the material planner director of Almaraie Company, which is in a joint venture partnership with PepsiCo. We can say that according to the supply chain’s point of view; the marketing of the firm is considered as the internal customer of the supply chain and logically according to the marketing perspective the supply chain is considered as the internal supplier, as the research discuses the integration between marketing and supply chain within supply chain network also we have to put the external supplier of both marketing and supply chain in high consideration which requires effective information flows. Hence the Multinational firm, which is serving in different markets, should improve the local marketing talent in its foreign market to ensure the ability to meet the dynamic customer demand as well as the led time cycle and the example of PepsiCo and Almaraie Company is the best example, which can describe the researcher point view on this issue. 

Also there’s a very important point that the Multinational firm should take in consideration which is customizing the products or services that offering on a particular market which already demonstrated high level of excellent operations provides the opportunity to the supplier to become an integral part of a customer’s business, as the supply chain management is highly depend on close relationship with customers so the way on how to customized the products or services in a particular market which is also should be aligned  and consistent with the firm’s  general strategy and ideology is the key point of success which requires high skills instrument and one of the main important instrument is the local marketing talent. 

To summarize the main purpose of the strategic supplier integration level, we can say that the extension of the integration between customers and suppliers can be done among strategic supplier partitioning approach, which is supported by the experimental evidence of an effective performance on the vertical upstream and downstream collaboration which is depend on high interactive between marketing and supply chain management which is in turn requires effective local marketing talent which will be discussed in more details on the third level of integration (Strategic marketing and SCM with the local marketing talent integration) which the research proposed framework built on.

Third level of integration (Strategic marketing and SCM with the local marketing talent integration) 

On this research’s proposed framework, we have to put the first and second levels under the third level to realize and understand well the research main idea and the additional element that added on the framework that’s “local marketing talent”. But before reviewing the marketing talent we have to talk about the marketing and supply pipeline strategy integration.

The strategic task of this level of integration lies on the questions of how the marketing and SCM define customer co-creation propositions as well as the approach of supplier partitioning which could be translated into the process of delivering the value that ensure the effective activities from the customer to supplier or from supplier to the customer according to the co-creation value which should be with the configuration process engaged on the integration marketing and supply chain management, from the market conditions  and experience. The researchers considered the customer as an factor who engaged in co-creation of value because of the customer has the ability to improve the performance of the firm while ensuring that the effectiveness of the underling marketing strategy is not only including the marketing and supply chain management field through linking the respective strategies to the customer and market segment characteristics which considered as the emphasizes of integrating marketing and supply chain strategies to achieve the competitive advantage. To make the idea more clear we can say that marketing is focusing on the activities of marketing mix such as product, price, place, promotions. The marketing strategy types based on interrelated decisions regarding these divers instruments such as aggressive marketers, mass marketers, marketing minimizer and value marketing strategies and all theses instrumentsto deliver the value to the customer, and logically depend on the supply chain which is focusing on enhancing the duration of life cycle and lead time and mainly focusing on the quality of raw materials that’s also depend on the market characteristics both integrating to deliver the value to the customer that depend on the market segment characteristics that is different from market to another which is highly depend on the local marketing talent because of the integration between marketing and supply chain need to be orchestrated across different markets, when the researcher said orchestrated logically it refers to the need to be driven from the local marketing talent point of view and driving the operations required highly skills and proficiency to gain the advantage which could be mixed with the advantage of quick response from the local marketing talent to the highly dynamic customers demands 

The following figure can explain the integration between marketing and supply pipeline strategy.

To explain the figure idea on brief its about that every segment required a specific marketing and supply pipeline strategy which is need either high responses or high understanding of the market characteristics from the marketing and it provides short lead time with varying delivery volume, low price sensitivity or the other option provide long lead time, stable delivery volume, which both depend on different strategy of supply chain which both strategies should be aligned and integrated within the supply chain network . 

To summarize the integration between marketing and supply pipeline strategy, we can say that it reflects the process of configurations which are designed in order to deliver the value propositions for the different customer segments supported by strategic marketing and supply chains’ decisions and we can highlighted on the word of decisions to conclude that; the strategic integration not only depend on implementation or acting activities but it’s highly depend on decisions which requires proficiency and high skills within effective supply chain network. 

Now we are moving to the marketing talent, which will take also more discussion on the last section of this research. It can be described as the following: 

Marketing talents are concentrating on everything related to the market and competition involving the value of talent that enabling the firm to cover the benefits of economical areas, customer satisfaction, competitors, quality productivity, cycle time, market capitalization as well as costs and revenues, rationally those activities can’t be achieved by computerized techniques so it should be achieved trough talented persons, so the firm’s process to improve the management and marketing talent not only including hiring the most qualified and valuable employee but focusing on how to retain them and the main important to improve their skills and knowledge, so the local marketing talent should be integrated with the global supply chain management for the multinational firms in more strategic level as it considered as a vital player on the strategic integration between marketing and supply chain management , as the world business is becoming highly dynamic and the customer demands and perception have a rapid change so the Multinational firms which are serving in different countries and the efficiency of the managing the multinational firms relationship can be measured through managing relationships with targeted customer segments as we conclude from the research the importance from this in order to more strategic integration between marketing and supply chain management, so the Multinational firm should respond on this dynamic customer demand’s, through focusing on customer relationships and cross functional integration which requires from the Multinational firms more focusing on their customers outside the firms and shoring up the emphasize on cross functional processes inside the firm and this can be achieved through strategic integration between marketing and supply chain management as we  realized from the above paragraphs the importance of this integration on a strategic level as well as we realized that marketing talent play a vital role to move this strategic integration to more strategic level. Talent marketing is a subset of talent management which is becoming highly needed for advancement in all areas, so the local marketing talent as its importance to be integrated within the supply chain management design for the Multinational firms that will gain advanced benefits in the particular market which the multinational firm is serving on also the potentially to be exploited to other markets which has similar cultures and business environment which will be discussed on the fourth Hypotheses. 

Finally on the third hypotheses by conducting this proposed framework the integration between marketing and supply chain management will move into more strategic level which leads the multinational firms to gain more competitive advantage, customer loyalty and more strategic benefits through improving the local marketing talent to be an integral part within the global supply chain management design for the multinational firm not only on the operational and tactics level but on a strategic level. 

 4.6 Testing and analysis of the fourth Hypotheses (The strategic integration between global supply chain management for the Multinational firms and the local marketing talent will lead to utilize the concept of Economies of scale & scope in the best usage) 

When the multinational firms focusing on developing the local marketing talent fled. It can gain a tremendous benefits from this not only on the particular single market which the local marketing has been developed within, but it can exploit the local marketers who are becoming more proficiency and advanced skills through engaging on the global supply chain management design of the Multinational firms.

First we have to discuss why supply chain management tanning to knowledge based learning “talent management”: one of the main requirements of supply chain talent; is finding and hiring as well as evolving the talented people then it can placing them in the suitable roles. The successful firms are the firms that can gain a competitive advantage that is mainly depend on changing supply chain game, the firm have to be professional to choose the right skills on the right place and according to the research main idea, the multinational firms should focusing a lot on this field specially on FMCG.

During the great recession the talent management took a back seat within a lot of firms in different industries, but on the FMCG, the firms decided to move aggressively against this trend, however they layoff huge Number of their employee and decreased about 10% of the overall salaries but they set an effective strategy and plans to enhancing and evolving the talent management. Logically almost of the firms did this because of they realized the importance of talent management on this industry, specially in the large firms – Multinational firms which serving in various markets, the local marketing talent should be priority and should be integrated on their global supply chain management design on a strategic level as the research mentioned above, we can say that the multinational firms can exploit the marketing talent by transferring it into another market which have similar characteristics and business environment and by this it can also reducing its overall costs, this point take us to the concept of economies of sale and economies of scope which is very relevant to achieving this point .

The multinational firms which serving a lot of different customers in different countries across the world.  Could gain benefits from the concept of economies of scale and scope through transferring the experience that gained from one country to another country in terms of similarity in culture, customers characteristics and business environment. From this point we can conclude that if the firm concern to improve the local marketing talent in different nations, it can exploit the experience which the marketer could gained and use it in another country, that share similar culture, customer characteristics and business environment and according to the industry which the research is focusing on “FMCG” firms can exploit the local marketer in Egypt in a lot of countries within the Middle East Region specially they are sharing one language and similar cultures specially Egypt considered as Hollywood of the Middle East, through this, the multinational firms can use the Egyptian celebrities and make common campaigns that can be suitable in all countries within the Middle East Region and also make its campaign more consistent as well as reducing advertising costs ,so this required great collaboration and integration between marketing and supply chain management on a strategic level . 

When we measure the similarities between for example Egypt, United Arab Emirates and Kuwait we can find, the 3 countries are sharing common language, traditions, and proper percentage on culture and customer characteristics similarities, as the researcher mentioned above that Egypt is controlling the media in Middle East and it considered as the Hollywood of Middle East, so this concept has high potentially to be achieved and the percentage of the success is very high. 

This is comparison between culture on Egypt, United Arab Emirate and Kuwait 

So we can conclude that when the multinational firms enhancing and evolving the local marketing talent, which is serving within, it can gain competitive advantage on this particular country as well as beyond this country.