Deck 15: Global Marketing and R-D

Question 1

Use the globalEDGE Resource Desk (http://globalEDGE.msu.edu/resourcedesk/) to complete the following exercises:
You are the marketing manager for a diversified food and beverage company. Preliminary market research indicates that Chile holds significant opportunities for your products. Using an analysis of the food and beverage industry in Chile used by Australian suppliers, prepare a short report identifying the factors that must be considered when formulating the marketing strategy for this country.

Answer 1

Not Answer

Question 2

What steps did Microsoft have to take in order to develop products that are customized to Indian customers?

Answer 2

The case shows how companies have to adopt different strategies to make their firm position in the market. If right strategies are adopted at right time, the chance of success increases. This is exactly what happened when Company M tries to expand its business in Country I.
The following steps were taken by Company M to develop customized products for people of Country I:
• It studied and analyzed the economic conditions of the people living in Country I.
• It invested money in one of the popular R D centers of Company I to develop offerings according to the needs of Country I.
• It opened one of the biggest software centers to develop the customized products.
Using above strategies, Company M gradually developed the customized products and successfully established itself. The strategies proved fruitful and attracted a lot of customers.

Question 3

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 3

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 4

Global Marketing and R D
Use the globalEDGE Resource Desk (http://globaledge.msu.edu/Reference-Desk) to complete the following exercises:
A.T. Kearney publishes an annual study to help retailers prioritize their global development strategies by ranking the retail expansion attractiveness of emerging countries based on a particular set of criteria. Find the latest version of this Global Retail Development Index.What criteria are used to identify the attractiveness of the retail environment in emerging countries? Categorize the top 10 countries by world region. Do any of these countries surprise you? Why or why not?

Question 5

How does Microsoft vary the marketing mix of its existing product offerings to gain traction with Indian customers? What else has Microsoft done to make headway in India?

Question 6

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 7

What general lessons can be derived from Microsoft's experience in India?

Question 8

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

Question 9

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, 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, and 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 10

Reread the Management Focus feature 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 the 2000s?
b. How would you characterize Levi's current strategy? What elements of the marketing mix are now changed from nation to nation?
c. What are the benefits of Levi's new marketing strategy? Is there a downside?
d. What does the Levi Strauss story tell you about the "globalization of markets"?

Question 11

Why does Microsoft's traditional strategy of "one-size-fits-all" not work well in emerging markets like India? What is different about these markets? How do customers differ both in their characteristics and in the way they use technology?

Question 12

Imagine you are the marketing manager for a US 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. Your CEO also believes that the pricing decisions in Brazil can be delegated to local managers. Why might she be wrong?