Deck 18: Global Marketing and RD

Question 1

Within 20 years, we will have seen the emergence of enormous global markets for standardized consumer products. Do you agree with this statement Justify your answer.

Answer 1

One could either choose to agree or disagree, while the best answer would likely hedge it somewhere in the middle.  There are already enormous global markets for products like Coke and Levis, but it is questionable whether there will ever be a global consumer market for Norwegian lutefisk.  More global consumer markets will likely emerge, but there will continue to be national distinctions for many products.

Question 2

Part of developing a long-term research and development (R D) strategy is to locate facilities in countries which are widely known to be competitive. Your company seeks to develop R D facilities in Asia to counter recent competitor responses. A publication which evaluates economies based on their competitiveness is the Global Competitiveness Report. Locate this report and develop a presentation for the top management team that presents the benefits and drawbacks for the top 5 Asian economies listed. Justify your conclusions thoroughly.

Answer 2

The "Global Competitiveness Report" is an annual ranking published by the World Economic Forum. The ranking can be reached by searching for the term "Global Competitiveness Report" at http://globaledge.msu.edu/ResourceDesk/. The link is located under the globalEDGE category "Research: Rankings". Be sure to click on the Resource Desk link to search this area of the globalEDGE website.
Search Phrase: "Global Competitiveness Report"
Resource Name: World Economic Forum: Global Competitiveness Report
Website: http://www.weforum.org/issues/global-competitiveness
globalEDGE™ Category: "Research: Rankings"

Question 3

Domino's Worldwide



Is Taking a Bite Out of India," Getting More Awesome, www.gettingmoreawesome. com/2012/02/08/how-dominos-is-taking-a-bite-out-of-india; D. Buss, "Domino's Global Growth Feeds Pizza Chain's Rising Success," Forbes , March 9, 2013.
How does the marketing mix for Domino's in Japan differ from that in the United States How does the marketing mix in India differ

Answer 3

D's marketing mix in Japan is different compared to the U.S.in the following ways
• In the Japanese market ordering pizza is less frequent than in the U.S. The Japanese consumer has relatively high disposable income and is willing to spend more on "home" delivered pizza. D takes advantage of this by offering fancy topping at a premium price.
• D is trying to improve the frequency of pizza consumption in the Japanese market by offering special heart shaped pizzas on Valentine's Day and Mothers' day. D also had a unique contest for hiring pizza delivery persons which gave the company high visibility and promotion.
• Japanese like more sea food and the toppings reflect this preference.
In other words, among the 4 Ps of the marketing mix - product, price, place, promotion, the product features are different in the Japanese market, the pricing is different, and the promotion is also different.
D's marketing mix in India is different compared to the U.S.in the following ways:
• The Indian market is largely vegetarian and D ensures that the toppings are predominantly vegetarian. The Indian tastes and preferences are for spicier toppings and D provides cheese in its pizzas for Indian consumers which have more spice.
• Most of the Indian cities have heavy traffic in narrow roads. Therefore, D's delivery boys are provided with mopeds which enable them to weave and maneuver through heavy traffic.
In other words, among the 4 Ps of the marketing mix - product, price, place, promotion, the product features are different in the Indian market, the delivery mode is also different in Indian cities compared to the U.S. market.

Question 4

You are the marketing manager of a food products company that is considering entering the Indian market. The retail system in India tends to be very fragmented. Also, retailers and wholesalers tend to have long-term ties with Indian food companies, which makes access to distribution channels difficult. What distribution strategy would you advise the company to pursue Why

Question 5

Domino's Worldwide



Is Taking a Bite Out of India," Getting More Awesome, www.gettingmoreawesome. com/2012/02/08/how-dominos-is-taking-a-bite-out-of-india; D. Buss, "Domino's Global Growth Feeds Pizza Chain's Rising Success," Forbes , March 9, 2013.
What lessons can we draw from the Domino's case study that might be useful for other international businesses selling consumer goods

Question 6

Price discrimination is indistinguishable from dumping. Discuss the accuracy of this statement.

Question 7

You work for a company that designs and manufactures personal computers. Your company's R D center is in North Dakota. The computers are manufactured under contract in Taiwan. Marketing strategy is delegated to the heads of three regional groups: a North American group (based in Chicago), a European group (based in Paris), and an Asian group (based in Singapore). Each regional group develops the marketing approach within its region. In order of importance, the largest markets for your products are North America, Germany, Great Britain, China, and Australia. Your company is experiencing problems in its product development and commercialization process. Products are late to market, the manufacturing quality is poor, costs are higher than projected, and market acceptance of new products is less than hoped for. What might be the source of these problems How would you fix them

Question 8

Reread the Management Focus on Levi Strauss, and then answer the following questions:
a. What marketing strategy was Levi Strauss using until the early 2000s Why did this strategy appear to work for decades Why was it not working by 2004
b. How would you characterize Levi Strauss's current strategy What elements of the marketing mix are now changed from nation to nation
c. What are the benefits of the company's new marketing strategy Is there a downside
d. What does the Levi Strauss story tell you about the "globalization of markets"

Question 9

Domino's Worldwide



Is Taking a Bite Out of India," Getting More Awesome, www.gettingmoreawesome. com/2012/02/08/how-dominos-is-taking-a-bite-out-of-india; D. Buss, "Domino's Global Growth Feeds Pizza Chain's Rising Success," Forbes , March 9, 2013.
Do you think it is wise for Domino's to stick to its traditional "home delivery" business model, even when that is not the norm in a country and when its international rivals have changed their format

Question 10

Imagine you are the marketing manager for a U.S. manufacturer of disposable diapers. Your firm is considering entering the Brazilian market. Your CEO believes the advertising message that has been effective in the United States will suffice in Brazil. Outline some possible objections to this plan. Your CEO also believes that the pricing decisions in Brazil can be delegated to local managers. Why might she be wrong

Question 11

The consumer purchase of specific brands is an indication of the relationship that develops over time between a company and its customers. Locate and retrieve the most current ranking of global brands. Identify the criteria used. Which countries appear to dominate the top 100 global brands list Why do you think this is the case Prepare a short report identifying the countries that possess global brands and the potential reasons for success. In addition, identify the traits of companies new to the list.

Question 12

Domino's Worldwide



Is Taking a Bite Out of India," Getting More Awesome, www.gettingmoreawesome. com/2012/02/08/how-dominos-is-taking-a-bite-out-of-india; D. Buss, "Domino's Global Growth Feeds Pizza Chain's Rising Success," Forbes , March 9, 2013.
What do you think Domino's does from an organizational perspective to make sure that it accommodates local differences in consumer tastes and preferences