Seminar 8, November 30- December 4, 2009

Seminar 8, November 30- December 4, 2009
Seminar Tutor: NG


Topics Covered


A. Review of the Case Studies: Most common student questions


B. Case Study: Weekly Case Study - Whirlpool






A. Review of the Case Studies: Most common student questions


1. Appendices: Should you use them or not?



We encourage students not to have apendices as there is a tendency to bolster a non-critical content with appendices. There is a need to demonstrate ability to use models/ substantiated work effectively in supporting therir arguments in the context of their critique


Wherever possible, avoid appendices by offering citations to published work.


Word counts include appendices. If you feel you have to use appendices and that they will cause the word limit to be exceeded, discuss with the lecturers/tutors.



2. Theory


No marks will be given for quoting theory without application.  You should not quote theory ‘in a vacuum’, but you will be expected to apply relevant theory to the case material.


Use models and frameworks introduced in the module, where it is appropriate to do so. How you present your information will be up to you, use can be made of tables and charts to present comparisons or analyses, where relevant.



3. Scholarly Reserch Articles

Google Scholar

24/7

Learning Resources

 4. Question on 'International Market Entry Strategies':
 
Good answers will:

Demonstrate a high level of knowledge and understanding of relevant alternative market entry strategies


Provide insightful analysis and evaluation of the issues of cost, control, risks and returns, with a high level of integration of theory and practice


Focus only on those strategies which are most suitable


Provide clear recommendations


Be well written and argued


A well marketing strategy needs to have the "P's" working together to convey a consistent message to your target market about your offerings.5. Question on 'Challanges in a new country':



Good answers will:



Identify and evaluate the key issues or aspects of those issues, showing a high level of knowledge and understanding of environmental scanning, segmentation and positioning


Underpin their answers with reference to relevant theory, with a high level of integration of theory and case material

Understanding of the management of a joint venture (including the appropriateness of the joint venture form in this situation) when appropriate

Present a well written, well structured and well argued answer



 
6. Question on the 'Main elements of a future product/service and branding in a new country':
 
Good answers will:


Evaluate product/service range options


Consider standardisation and adaptation issues


Critically evaluate merits of global/regional branding approach using appropriate theoretical underpinning


Critically evaluate rational and emotional dimensions of the brand


Make clear recommendations




7. In general Excellent answers to Questions are likely to:8. Other links of interest:


http://www.accenture.com/Global/High_Performance_Business/High_Performance_Business_Podcast_Series/StrategiesTimesTranscript.htm


http://www.b2binternational.com/b2b-blog/b2b-presentations/market-research-conversations-podcast-audio/


http://www.consumerpsychologist.com/international_marketing.html


http://www.podbean.com/podcast-detail?pid=22671




B. Case Study: Weekly Case Study - Whirlpool

Research Helps Whirlpool Act Local in the Global Market



Overview: Whirlpool, an American company selling home appliances, is using extensive research methodologies to adjust to new markets around the globe. The market entry strategy of purchasing local established companies combined with adjusting to the needs of local market seems to be successful for Whirlpool.

1. Describe Whirlpool’s global marketing strategy.

Whirlpool’s basic market entry strategy was purchasing local established appliance companies, merging with already existing markets. In Europe, Whirlpool invested $3 billion total to the local market. Whirlpool became number three on the European continent, but didn’t move beyond it to Japan, Asia, and Latin America as was projected. To cope with resulting appliance problems in Europe, Whirlpool used global part-sourcing strategy that helped the company to trim down the number of suppliers by replacing sales organizations in 17 separate countries with four regional sales offices and by reducing the number of warehouses.


2. Summarize the role of market research in Whirlpool’s globalization strategy. What different types of research methodologies does the company use? What are the advantages of each methodology described in the case?

Market research shows that consumers in different countries consider different features of the product to be important. This finding allows Whirlpool to apply different research methodologies to collect the data in order to adjust to new markets and to strengthen the U.S. market. Consumers’ opinions are important in the United States, Europe and Latin America. Personal interviews of Brazilian households were essential research methodologies for the development of Ideale, the least expensive automatic washer machine.

The search for new specific needs’ products in local markets makes it easier to adjust to developing markets. This methodology helped lead to the four-leg machine for Brazil, grey and blue machines for China, and easily moved machines for India.

3. Do you believe developing products for low-income consumers in emerging markets is the right strategy?


The strategy of developing products for low-income consumers is a right one unless the company was to forget about the middle-income and high-income consumers. In countries like Brazil where the most of households are low income, it seems to be an essential and primary important tactic to develop products available for the low-income consumers.

4. What are the key lessons to be learned from Whirlpool’s experience in China?


Whirlpool jumped into the Chinese market without using extensive consumer research methodologies such as surveys and interviews. The company’s success was the “T-4” strategy (offering different home appliances, not just washing machines) and emphasize on the middle-class consumers. The key lesson is that in a country with a high rate of low-price competition it is necessary to use a strategy aiming at quality and uniqueness, not price.



5. Other links of interest:

www.usatoday.com/money/world/2007-04-04-whirlpool_N.htm

http://odeo.com/episodes/25048045-Continuous-Market-Entry-Never-Ends-in-China

http://www.soe.ucsc.edu/classes/cmps050/Spring04/whirlpool.html

Seminar 7, November 23-27, 2009

Seminar 7, November 23-27, 2009

Tutor: NG

We will go over the MCQ test questions.

Seminar 6, November 16-20, 2009

Seminar 6, November 16-20, 2009
Tutor: NG

No seminars will be held this week. Instead there is a Multiple Choice Quiz.

Case Study Question on International Marketing Strategies

One of your classmates asked for clarification regarding the following question in the cases:

'Critically discuss what and how International marketing strategies can be applied to help organisations when entering a new geographical market territory? Give examples.'

-
You will be studying/acquiring the international marketing strategies throughout the course. But in regards to that case, the question wants you to possibly look at several of the issues below:

1) When launching a product into foreign markets do you standardise or adapt your marketing mix to the foreign market? A company can adopt to use a standardised marketing mix around the world or an adapted marketing mix in each country.

2) As with international product decisions an organisation can either adapt or standardise their promotional strategy and message. Advertising messages in countries may well have to be adapted because of language barriers or the current message used in the national market may be offensive to overseas residents.

3) Pricing on an international scale is difficult. As well as taking into account traditional price considerations:

Fixed and variable costs,
Competition,
Company objectives ,
Proposed positioning strategies,
Target group and willingness to pay,

the organisation needs to consider the costs of transport, any tariffs or import duties that may be levied on their product(s) when they are sold on the international scale. Also what currency do you expect to be paid in? Will it be home or international currency? Exchange rate fluctuation will also impact profitability and influence pricing decisions.

4) And distribution strategies: A standard distribution channel in the UK may go from a Manufacturer, wholesaler, retailer to consumer or direct from a manufacturer to a retailer. In an overseas market there may well be more intermediaries involved. In your international market , is it dominated by major retailers or is the retail sector made up of small independent retailers? Is internet distribution common for your product.

Seminar 5, November 9-13, 2009

Seminar 5
Seminar Tutor: NG


Topics Covered

A. Insurance Institute of London Diploma Awards on 16 November

Those who are free in the afternoon of Monday Nov 16 would be welcome to attend the Insurance Institute of London Diploma Awards.

Unfortunately, exchange students would not be able to attend as they are likely to be taking the MC exam in class.

Please let NG know if you can come asap (you have got to attend if you say you can come).

The details are:

Date: Monday 16 November 2009

Venue: Great Hall, 20 Aldermanbury, London EC2V 7HY

Timings: Please arrive by 5.40pm for a musical reception, which will be followed by the Diploma awards ceremony. After the ceremony, complimentary drinks and canapés will be served until the evening closes at approximately 7.00pm.

Dress code: Business attire.

If you are attending, you have to be at 'Great Hall, 20 Aldermanbury, London EC2V 7HY' by 5 30 pm in business attire. You are responsible for getting there and then back home etc.

It would appeal a lot ot those interested in insurance, marketing of financial services, or the City in general.


B. Brief Review of the Multiple Choice Exam in Week 8 (next week)

There is a Multiple Choice Exam next Week, Week 8.

It is a formative exam for the Exchange Students.

It is a summative exam for the regualt third year students.

Please watch your mail inboxes and OasisPlus as to where you will take the exam.


C. Brief Review of the Individual Assignment

By now, you should have finalised which case you will do.

And now it is time to start working on it.

When you come to the seminar next week, I expect you to have started working on your case!


D. Case 4-2: Barbie - Growing Pains as the American Girl Goes Global

Barbie, the “icon” of American lifestyle, once so popular, looses its sales due to new line of Bratz dolls and general hardships in the global market. Europe and Japanese experiences show that Barbie is demanded more in its original American version instead of its “culturally adjusted” ones. The Middle East is the main region requiring Mattel to be culturally and religiously sensitive to compete with the local producers of dolls.

Q1. Describe Mattel’s global marketing strategy for Barbie and assess its success. Does management demonstrate that it understands and embraces the need to “think global and act local”?

In each country, management was attempting to create a doll that would be based an aesthetic standards of the new country’s market. Even though the attempts to adjust a product to other cultures were done in every country outside the United States, the usual American prototype was still the most successful. Mattel tried to adjust to the principle “Think globally and act local” but the product was more successful in its original “home grown” look.

Q2. Approximately 90 percent of the world’s children live in developing countries. Despite recent negative sales trends, Barbie remains the most popular toy in the world. What must Mattel do to capitalize on the strategic strength of the Barbie brand and take advantage of market opportunities around the globe?

The decline in sales of Barbie was caused, in part, by the newly developed Bratz line. Before Bratz were created, Barbie was considered the fashion doll and a symbol of the American lifestyle and prosperity. Barbie stays the most popular toy, but to take advantage of market opportunities, the doll (her clothes and accessories) should be modernized (new fashion American trends) to compete with Bratz.

Q3. How important is culture in dictating children’s toy preferences? Will cultural differences result in failure for Mattel as the company faces new competitors in the Middle East?

Culture is important in dictating children’s toy preferences. In Barbie’s case, local culture seems to play less of a role as, in most countries, children prefer American Barbie to the culturally adjusted one. The Middle East is probably the one region where American Barbie may have a problem connected to cultural standards. Parents in Middle Eastern countries may refuse to buy toys which make their daughters think that it is appropriate to be independent and open-minded. The competitors of Barbie, especially that Fulla doll, would be more culturally accepted and therefore more in demand.

Q4. Industry observers often refer to Barbie as an “icon.” What does this mean? What should Mattel executives do to turn around sales of Barbie in the United States?

Barbie is an “icon” of the American lifestyle, with her Cadillac, house with a pool, and boyfriend Ken. The doll is associated with the “ideal” adult life that children want to reach to have freedom from their parents. At the same time, the United States is a country of many nationalities and the U.S. market should be responsive to the needs of its cultural mix. In addition to creating African-American, Asian American, and Hispanic dolls, current cultural trends should be incorporated. Innovations in technology (such as the iPhone, iPod, etc.) could be reflected as accessories for Barbie.

Seminar 4, October 16-30, 2009

Seminar 4
Seminar Tutor: NG


Please come to class prepared with any questions you may have on the module and the seminars.



You may enjoy and benefi from watching the following videos:

http://www.youtube.com/watch?v=JJ7aVrtTbg0&feature=related

http://www.youtube.com/watch?v=VfJ-Mk2g1NY

http://www.youtube.com/watch?v=XYrbF6nWOnU&feature=related

Seminar 3, October 19-23, 2009

Seminar 3
Seminar Tutor: NG


Topics Covered

A. Brief Review of the Individual Assignment

By now, you should have finalised which case you will do.

And now it is time to start working on it.

When you come to the seminar next week, I expect you to have started working on your case!

B. Case 1: McDonald’s Expands Globally While Adjusting Its Local Recipe

Overview. Today, McDonald’s golden arches are one of the most recognized symbols in the world, just behind the Olympic rings. While growth within the U.S. has slowed, the picture outside the U.S. has appeared brighter, until recently. However, globally, taste profiles and consumer desires are changing. McDonald’s has responded to these changes by altering their basic products (when necessary) to fit the requirements of the local markets. While not always successful, it has proven to be a winning strategy.

Q1. Identify the key elements in McDonald’s global marketing strategy (GMS). In particular, how does McDonald’s approach the issue of standardization?

The popularity of American-style hamburgers, fries, and soft drinks is growing around the world, supporting Levitt’s view of the global village. Also, the restaurants themselves offer the consumers a chance to experience for themselves a fast food legend. However, students should point out that, in many locations, menu items are adapted according to the customs and tastes of individual countries. McDonald’s offers an ideal example of “global localization.”

Q2. Do you think government officials in developing countries such as Russia, China, and India welcome McDonald’s? Do consumers in these countries welcome McDonald’s? Why or why not?

Despite concerns by governments and citizens in some countries about “cultural imperialism,” McDonald’s and other franchises with well-known brand names are generally welcome. Such businesses provide both much-needed jobs and employee training.

McDonald’s does a good job of earning the support of local authorities and the local population by working with agricultural producers to develop local supply sources for beef, potatoes, and dairy products. Finally, thanks to changing lifestyles around the globe, more people are embracing the whole concept of fast food.

Q3. At the end of 2003, McDonald’s announced t was selling the Donatos Pizza unit. Then, in 2006, the Chipotle chain was spun off. In light of these strategic actions, assess McDonald’s prospects for success beyond the burger-and-fries model.

McDonald’s spent a period of time acquiring businesses they believed to be complimentary to their core burger-and-fries model. However, during this expansion, they made the error of “taking their eye off of the ball.” This allowed competitors to make inroads and resulted in their core business flagging. By reasserting themselves in their core business, they are reestablishing themselves as innovators in the market. Success beyond their core model is certainly possible; however, attention can not be diverted from their core business model.

Q4. Is it realistic to expect that McDonald’s – or any well-known company – can expand globally without occasionally making mistakes or generating controversy? Why do antiglobalization protesters around the world frequently target McDonald’s?

McDonald’s has a reputation for being sensitive to local issues and mentalities. According to the staff director for international human resources in Central Europe, “One of our guiding principles is that our restaurants should always be a reflection of the communities they serve.” Mistakes such as the one in France represent exceptions that can serve as learning experiences. Still, each new national has the potential to present unique problems. In Israel, for example, McDonald’s must deal diplomatically and appropriately with dietary laws pertaining to kosher foods and operating restaurants on the Sabbath (Friday and Saturday).

Another issue is to maintain the service attitude that was a cornerstone of McDonald’s U.S. reputation. A German student noted that in Germany, good service is not associated with McDonald’s because counter help consists of immigrants who do not exhibit the cheerful demeanor of their U.S. counterparts.