CASE STUDY MÔN MARKETING QUỐC TẾ

UNIVERSITY OF FINANCE - MARKETING FACULTY OF MARKETING INTERNATIONAL MARKETING CASE-STUDY FROM CHAPTER TO CHAPTER 16 Lecture: MBA Ngo Minh Trang Group: No Member Student’s code Pham Quang Thuy 1721001634 Do Thanh Ngan 1721000602 Trinh Quoc Bao 1721000655 Phan Hoang Bao 1721000654 HCMC – October 2019 CATEGORY CHAPTER CHAPTER 12 CHAPTER 20 CHAPTER 25 CHAPTER 26 CHAPTER 28 CHAPTER 30 CHAPTER 33 CHAPTER 36 CHAPTER 10 37 CHAPTER 11 39 CHAPTER 12 40 CHAPTER 13 43 CHAPTER 14 45 CHAPTER 15 47 CHAPTER 16 49 CHAPTER 1 How is Carrefour’s marketing mix kept consistent across market? Product: Carrefour is one of the leading retail stores in the world Carrefour stores & its services are its marketing mix product strategy It's stores are present worldwide in various formats to cater to all kinds of needs of its customers: - Hypermarkets - Ideal stop for families doing major shopping, offers a variety of food and non-food items at low prices - Supermarkets - Offers a huge variety of fresh produce, local products, and non-food items at attractive prices - Convenience stores – these are designed to address the local needs of the customers offering products at low prices and are open till late-night - Cash & Carry stores, Hypercash stores – Displays all the products on pallets and are sold usually to bulk buyers such restaurateurs and similar professionals - Multi-channel strategy – Carrefour is providing its customers with ecommerce and m-commerce solutions to make them shop anytime and anywhere Price: Carrefour generally follows ‘low prices every day’ policy, but frequently switches between a mix of policies., non-sensitive products are reasonably priced and imported products are priced very high However, the major portion of the revenue comes from the sale of Carrefour’s own brand products which are priced as per the demand This gives an insight about the pricing strategy in the marketing mix of Carrefour Place: Carrefour has more than 12,000 stores operating in more than 30 countries in Europe, America, Asia and Africa Carrefour has ensured its presence in 19 integrated countries and has franchised stores in 20 other countries The group, in addition to the traditional format has developed a wide range formats to cater to all kinds of shopping pattern, be it daily purchases, weekly hypermarket visits or bulk buys by business customers Carrefour ensures that all its stores appear inviting via the use of attractive & modern designs with different banners in every store Such steps provide Carrefour a competitive advantage and helps in increasing sales and market reach As of June 2016, Carrefour has 1481 hypermarkets, 3462 Supermarkets, 7181 convenience stores and 171 Cash & Carry stores Promotion: IBM & its partners developed an in-store promotion system for Carrefour’s supermarket & hypermarket stores, that can be entirely operated by Carrefour and thus enabling it to plan and execute more targeted campaigns and have feedback about how effective they were Carrefour, as a part of its Relationship Management Strategy launched ‘MyCLUB’ loyalty card for its retail customers to achieve their loyalty and ensure customer retention This card enables customers to earn points on every purchase which can be redeemed in place of cash on their next visit Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Carrefour People: Carrefour puts in a lot of effort and funds to train its existing employees not only to provide excellent services to the customers but also to pass on their expertise and ultimately raise the service standards In addition to salaries, employees are offered various other facilities like- medical benefits, supplementary pension scheme, profit-sharing schemes etc Carrefour offers a lot of options for the employees to enhance their skills and climb the ranks, likeindividual training paths and annual interviews Process: Carrefour has streamlined its distribution and delivery by choosing the right store formats as per the preference of its customers The strategy of renovation of existing stores and development of new stores for expansion has shown considerable impact in its financial report In addition to the brick and mortar stores, Carrefour’s online shopping portal has made shopping very convenient and efficient for the customers Physical Evidence: Carrefour constantly tries to update itself as per the preferences of its customers It adapts itself to the market (Urban or Rural), this is not restricted to the products only, this extends to lighting, furnishings, and additional services For example- Carrefour rejuvenated Bairro supermarkets in Brazil to provide a better shopping experience to its customers and renovated its stores in Italy and Belgium to enhance the offering by using its design to seduce the customers Hence, this completes the Carrefour marketing mix What value does Carrefour provide consistently in all of the various countries in which it operates? Carrefour’s role is to help its customers and consumers enjoy a better quality of life, each and every day Committed, Caring and Positive These three values bring us closer to our customers and consumers and reflect our personality We look for and find the best possible solutions for them every day Committed We are committed Committed professionals and committed members of the community We constantly strive to exceed everyone's expectations by providing better value and finding new solutions for a better quality of life Caring We are caring Caring towards our customers and our consumers We are receptive to their needs, each and every day We welcome them to our stores and meet their needs with kindness, warmth and attention to detail Positive We are positive We rise to every challenge with energy, enthusiasm, and with fresh ideas We help brighten the lives of our customers and our consumers For them, for our employees, for the planet, we want the best, both today and tomorrow How local partners help Carrefour overcome difficulties in new markets? What is the advantage of that approach? - Local partners help Carrefour to navigate the differences in each countries’ culture and help Carrefour to form the thorough understanding by giving Carrefour informations, statistics, to make the right Marketing decision - Retailing behaviours may vary greatly depending on the local culture, so using the local partners is smart - Carrefour can get into the new market by franchise, M&A Carrefour considers the local partners as the levelrage In 2010, Carrefour entered the Indian market using the partners who was Kishore Biyani of Pantaloon Retail This help the Carrefour counter moves by the American Wal-Mart and the Bristish Tescon to corner the $390 billion Indian retail market Explain the impact of drivers of globalization described in this chapter with regard to Carrefour Channel of Communication: Dealing with the language barrier When entering the China market, as the brandname close to the French pronunciation while the authority demands the name written in Mandarin The company has made up the name Carrefour translate to 家樂福 Jia Le Fu in which Jia means Family, Le means Joy and Fu means Love, fortune, which reinforce the company’s name For instance, customer inquired about the right image of the company names Brand names characteristic: location based store Moreover, as the Carrefour means crossroad, when enter China market, location plays a major role so that shops are primarily located at the crossroads Lower Transportation cost The food is a special product which demands to be kept in the good conditions not to mention the expired date To keep everything on the right track can higher the transportation cost of the product To solve the case, Carrefour sources many of its product locally They conduct the couple education and build the relationship with the local suppliers of food through camps for Indian Farmers The outcome is that the efficiency of Indian farmers increased and improve the sources of foods for the company Culture or Patterns The marketing team of Carrefour form the relationship with local partners when entering the new markets For example, when enter Taiwan in 1989, they join hands to learn about Asian business environment, especially culture This knowledge led to expansion in six other Asian markets Carrefour attempt to make large or small change to adapt the cultural differences In case of Thailand Thai people still prefer to shop at the local grocery store or traditional market to shop at hypermarket In 2010, Carrefour introduced a mini-supermarket in Bangkok These smaller stores still provide ready-to-eat meals, plus grocceries frozen food drinks and household products In case of Middle East countries Donate to local charities to build goodwill and image Moreover, during Ramadan month in which more than billion Islamic people over the world will find their way back to the Mecca and conduct the religious activities include starve for a day After that day, the demand of food to recover is huge In UAE 2009, Carrefour donated the food worth AED 625.000 (ABOUT $170.000) to person in need Governmental action: - An active Carrefour in the relatively strong command economy of China since 1995 - France- less representative or less stable system to match the traditional parliamentary democracy of France - Indonesia Carrefour found guilty in the antitrust case ( vi phạm luật chống độc quyền, luật nhằm tạo cạnh tranh công ) - The company has appealed, but if the appeal is lost, Carrefour may be forced to sell its stake in a local Indonesian retailer How have the factor that create international marketing complexity both helped and hurt Carrefour has the impact been mostly postitive or mostly negative? Culture - A thorough understanding appreaciation for culture means a fundamental aspect of successful international Marketing - Because the the retailing behaviour may vary depending on the local culture so Carrefour has leveraged local partners when entering new markets to find out similar values to serve - Carrefour is very smart when finding and using the local partner to navigate the differences and take measures to adapt the local market - Learning about culture might increase the cost of MKT Research in different country - Difficult to monitor the partners in foreign markets - This trend might lead toi conflict agreement between the company and partners reulted in poor collaboration 10 no one can take a loan or borrow anything For the macro, money such as capital, shark loan or funds cannot be taken by any companies Or the money cannot be used which is saved As the consequences, the economy of a country will be damaged significantly then collapse Conduct an online search of the world’s poorest countries Do you think microfinance will be effective in these markets? In my opinion, these markets are having the potential for the microfinance Huge organizations like the United Nations or International Monetary Fund might provide millions of dollars in aid to build systems in a developing country The government that receives the aid can make extensive long-term plans about what to with the money Many organizations provide microcredit mainly for poor women This is partly because women are often more excluded from financial services and educational opportunities than men Women usually spend their money in ways that improve their families’ nutrition, health and education What business benefits are there from increased wealth in least-developed countries? In least-developed countries, many global top companies consider that these market are not giving the profit as they want therefore these market are easier to operate by others small company If small companies can get into these market before the others, they can easily to be the top of mind brand in these countries If they can increase wealthy success, there will be more potential from the native companies to take more loans which benefit the business Do you agree with the criticisms regarding banks moving into the microfinance market? Why or why not? No, I not Because the operations by huge finance company in least developed countries will provides fund for start-up to their business Then, they might provide jobs for the poverty Finally, they can help the economy in these countries to develop which will reduce the number of unemployment and poverty 38 CHAPTER 11 Sustainable distribution practices, particularly the management of carbon emissions, have become increasingly important What role have channel captains such as Wal-Mart played in this process Wallmart is the first retailer with verified science – based target emissionsreduction plan The company aims to reduce its absolute Scope and emissions by 18 percent by 2025 The retailer will also work to reduce CO2e, or cacbon dioxide equivalent, emissions from upstream and downstream scope sources by one billion tons (a giggaton) between 2015 and 2030 The use of this software them gives JDA clients a competitive advantage More channel captains,such as Wal-Mart, require suppliers plus the companies supplying those companies to meet a sustainability code of conduct.Without meeting these guidelines Wal-Mart will stop ordering The overall industry trend is the same One estimate claims that 6% of leading companies deselected supplies failing to account for carbon in 2010, while more than 50% of companies are committed to so in the future JDA Software provides services to a broad range of industries Why the company’s services apply to such a large range of companies? JDA Software is the leading provider of end-to-end, integrated retail and supply chain planning and execution solutions for more than 4,000 customers worldwide JDA’s unique solutions empower its clients to achieve more by optimizing costs, increasing revenue and reducing time to value so they can always deliver on their customer promises With unwavering customer passion and unmatched industry expertise built on a rich heritage of growth, innovation and market leadership, JDA is laserfocused on creating customer value and making businesses more efficient, sustainable and profitable 39 JDA operates on nearly every continent and in many different countries within those regions How might a global reach give the company an advantage over competitors? When present in many countries around the world JDA will have many advantages for its business such as: There are many suppliers who work with our company so customers have more choices from there Therefore, this is also an advantage to help JDA attract more customers throughout the country This helps the company to have more income As a multinational company, JDA has good brand awareness as well as quality products to market Therefore, our company will have high reliability from customers CHAPTER 12 What types of products will be featured in Tesco stores: those with intensive, selective or exclusive distribution strategies? Intensive • The types of products that are introduced in Tesco stores according to the intensive distribution strategy are such as grocery products • Those products are: Fresh food is food such as meat, fish, butter, milk, cheese, seafood, frozen foods, drinks, shampoos, household items and has grown to become an international leader in hypermarkets 40 Intensive distribution will mean convenience to the customer’ Tesco and increase customer ‘Tesco satisfaction And it is also make the Tesco supermarket have high number of purchasers, high purchasers frequency Selective Types of products introduced in Tesco stores according to the distribution strategy of selected products such as electronics and clothing Selective distribution can help the manufacturer gain optimum market coverage and more control but at a lesser cost than intensive distribution Exclusive Exclusive distribution is an extreme form of selective distribution in which only one wholesaler, retailer or distributor is used in a specific geographical area When the firm distributes its brand through just one or two major outlets in the market, who exclusively deal in it and not all competing brands, it is said that the firm is using an exclusive distribution strategy This is a common form of distribution in products and brands that seek a high prestigious image The types of products introduced in Tesco stores follow the distribution strategy of selected products such as banking, telecommunications, and even the recording industry A key component of success has been on focusing on its own bank, including the brands Tesco and Finest When choosing a distribution system in China, what factors should Tesco’s marketing team consider? 41 Sainsbury’s in Egypt, Wal-Mart in Germany, Best Buy in the UK and Marks & Spencer in mainland Europe The examples are endless and tell the cautionary tale that overseas expansion for major companies is not always a success As well as the launch of its Fresh & Easy brand in the United States, one of the most famous examples is Tesco’s expansion in China, where it made its debut into what is now the world’s second-largest economy in 2004 under its eponymous brand The marketing team should invest in analyzing the market in China carefully and researching clearly consumer behavior and consumer habits in China The supermarket market in China has a lot of big competitors, Walmart and Carefour has been here for a long time Tesco's success in the UK cannot be subjective in a new and challenging market like in China China is large, complicated and a very capital-intensive market to crack What sources of channel power might Tesco hold in China? Channel of power that Tesco hold in China are: A central component of company’s strategy is to offer large shopping centers, referred to as Lifestyle Malls, that will include Tesco-owned stores, along with other retail outlets These centers are huge by retail standards, including as much as 400,000 square feet of space The massive spaces reportedly will include outlets such as restaurants and cinemers Tesco has been able to secure join venture support form local businesses that enable the firm to share part of the cost involved in the operations Owning the store property enables the company to enjoy several benefits, most notably control over building features and standards Building such large retail outlets and establishing reliable distribution center alternatives currently exist for these regions 42 While focusing on “tier two” cities, what type of utility is Tesco attempting to provide? Tesco’s Chinese strategy focuses on “Tier two” cities in the country such as Shanghai and Beijing Tesco have to provide utility in Shanghai and Beijing to make sure the customer satisfied: - Place utility: Put supermarket chains in the most convenient place for buyers to make it easier for customers to arrive - Time utility: Make sure supermarket chains have products that can be used when customers want to buy and use them - Possession utility: Transferring ownship of product to customers - Communication: providing information to other channel members and customers CHAPTER 13 Describe the target market, advertising objective, and type of the international appeal used in the N8 campaign in the Philippines Target market: Customers who are using social networks such as Facebook and Youtube They are able to use the internet because they created a website for people to publish their stories about Pier They also established a contest which was about making movies for Pier which targeted a minority of customers Advertising objective: Lets the Filipinos know as much as possible because Nokia established a TVC They also want to get more attention and awareness by creating a competition Type of international appeal: rationality Describe the traditional executional frameworks that best match the N8 campaign 43 The traditional executional frameworks that best match the N8 campaign is Slice-of-life This framework help the N8 campaign close to the Filipinos daily life, help their customers feel the relation between them and the Nokia N8 The participants and Pier, who represented for Nokia N8, have met in the stories which increase effectively the awareness and fasten the buying decision process Using Internet resources, identify the Philippines as a low- or high-context culture Explain how the N8 advertising program fits with that type of culture Would the campaign be as successful if the opposite type of culture were present? Why or Why not? Filipinos are high-context of culture The people with high-context culture: - prefer to solve problems by collaborating with other people and/or consulting with the boss - are expected to fulfill the task even if the task is not clear; - prioritize and rely on long-term relationships; - tend to ask for help/collaboration the same people in different situations; - modify their communicative style depending on the social rank of their interlocutor; - are oriented towards face saving, preserving traditions, and maintaining politeness Overall, the Filipinos are likely to work with others to solve the problems which will provide conversations about Nokia N8 online or word-of-mouth They also want to fill the undone task, which was the 8-day lost Filipinos also have a long-term relationship with things they are close to Therefore if they have a connection to Pier, they will rely that relation for long time The campaign would not be as successful if it was launched in the opposite type of culture Explain how the N8 campaign combines traditional advertising with nontraditional marketing Which nontraditional marketing program does it contain? 44 N8 campaign combined traditional marketing which was television to nontraditional media for instance, movie trailers which was combined as the TVC and the advertisement on social networks Of the attitudinal and behavior outcomes listed in Figure 13.11, which effects did this advertising and marketing campaign achieve? Explain your answer The effects that attitudinal and behavioral achieve in N8 campaign are: Brand recognition, brand recall and website visit The number “eight” appear everywhere in N8 campaign, from the 8-day lost to eight winners to receive an N8 Nokia These details will make the customers recall the word N8 as much as possible including the brand Nokia N8 The combination of stories related to daily life and customers will make the campaign last longer in customers mindset which increase the awareness of Nokia Brand recognition has achieved because of it Finally, Nokia has succeed in pulling the traffic to their new website which more than 25,000 text which the number of traffic is more than that CHAPTER 14 How does “Get Set, Go Free” use additional promotional tools such as coupons, premiums, or free samples to help create consumer interest in Nestle products? For appealing the customers to participate in Nestle promotion, they have to give their customers the premiums which are in the products Their products are confectionary individual or multipacks, cereals and chocolate cookies They are the kind of products which are popular by the customers How does “Get Set, Go Free” help Nestle promote its core value of nutrition, health and fitness? The customers, who want to participate in “Get set, Go free” have to collect the redeem codes in packages of confectionary products which are quite harm to their health The hidden meaning of this is Nestle want to remind their 45 customers that although these kind of products, only kinds in which Nestle put the redeem codes, are nutrition, customers have to work out to increase their health and have a fit body This promotion helps Nestle maintain its position as a worldwide leader in health, nutrition and fitness Will a promotion such as “Get Set, Go Free” generate long-term interest in the company’s products? This promotion will take the name of Nestle into their customers top of mind for a long time Whenever they buy Nestle products, they will remember the way Nestle remind people to workout Health and fitness are popular in the past and its importance is increasing because of the developing of the world Therefore “Get set, go free” will generate long-term interest in the brand Nestle, or even their products How could Nestle ultilize social networking in this promotion? How could the marketing team improve its efforts in this area? The customers who use social networks such as facebook, youtube and twitter are the majority of the office worker, who usually spend their working time online This activity also does harm to their health which are related to the key message of “Get set, go free” The marketing team of Nestle should provide the danger of spending time sitting in front of the computer and the benefit of work out which are related to the promotion How could Nestle take advantage of this program in its public relations efforts? Health is the society problems, not only about the office workers but also related to a long range of customers who are lazy in doing exercises Therefore Nestle only have to let the society know about the danger of lack of exercises such as children, adult, etc The “Get set, go free” is also the public activity which will be known by many people and be spread out easily by word-ofmouth 46 If you worked for an international competitor of Nestle, what types of promotions would you develop that would be based on health, nutrition, and fitness? Or, would you run such a promotion? Why or why not? If I worked for the competitor of Nestle, I will develop such a promotion which also focus on health, nutrition and fitness However, despite of using the premiums, I will use the bonus packs I will deliver the products which can fulfill the demand of customers and also can show that our products have the nutrition enough to refill the energy for the customers CHAPTER 15 What factors allow Oriflame’s online retailing program to succeed in India? The factors allow Oriflame’s online retailing program so succeed in India is the selling platform helps markets will strong brand identities to capitalize on brand equity, as the case for Oriflame The move to online retailing allowed the marketing team to build on the strong brand identity and to establish what will essentially become “virtual offices” This catalogue which plays the important role in the selling of the products is uploaded the official site of the company The visitor of site place their orders on the site by creating their account there Thus by providing the ultimate shopping experience to consumers, the Oriflame catalogue supports the business opportunity to its consultans What cultural variables would impact cosmetic marketing in India? How does online retailing pertain to these variables? - Some cultural variables would impact cosmetic marketing in India are: + Indians tend to love nature so they want to use products with natural ingredients 47 + Indians also pay more attention to businesses that know how to talk and advice They will pay attention to a product also because they have a good feeling about it - So the online retailing pertain to these variables very carefully, such as The consultant working for this company should know the art of communication and to convince the consumers The senior managers of company try to enhance the quality of communication in consultants The following are give some tips which senior managers give to the consultants like • Motivate fans to buy Oriflame product • Give tips on make-over, make-up, fashion, through different campaigns • Promote the brand • Excite customers with buzz content • Change the lifestyles and the way people think about it • More over, Oriflame also sell this product online and note the ingredients almost from natural Should Oriflame abandon face-to-face selling in India? If not, how should the direct sales force be selected? How should the salespersons be compensated? You should not that, because most Indians are low income They are very afraid to be consulted directly when buying The best direct sell method is to email close customers to inform the promotion And the saleperson just contact with the channel to look for other big customers What are some of the biggest threats to the success of online retailing of cosmetics in a country such as India? + Web system error due to multiple users accessing at the same time + Bad management will lead to order errors leading to dissatisfied customers about the service 48 + Miss more opportunities to understand customers because customers who buy cosmetics are more likely to learn from real experiences than to watch and buy online CHAPTER 16 1) What factors in the international marketing environment, as described in this chapter, might influence the Virgin Galactic company? How will impact be felt? Strength i ii Weakness Lower training time (2 days iii Still need more compare to months) and lower experiments to develop cost (200,000$ to 30 mill USD) the commercial rocket Technology which won the Ansari which can launch the X Prize of $10 million shows that space ship out of the VG has enough technology atmosphere safety basement and fund to develop Threat Opportunities iv v The average risk for A large amount of interest of going to space by the customers More than 10$ million worth of ticket has typical space flight is a crash on one out of fifty flights been sold which reflect the opportunities of this area SW: Virgin Galactic has enough fund and technology ability based on their scientist which can easily improve the rocket problem 49 OT: Despite the threat is 1/50, the demand is still high If VG can improve the risk, they can cover more the market which mean they can take more than 10$ million worth of ticket 2) Visit http://www.virgin.com/company to see a list of the various companies owned by Virgin Group How does the broader Virgin brand help sell Virgin Galactic? The companies owned by Virgin are working in areas which serve the rich segment These customers are able to pay the ticket which is 200,000$ just for travel into space Moreover, Virgin owned companies are everywhere in global therefore they can take as much as possible the “rich” customers who are not living in the UK 3) Create a marketing plan for Virgin’s plan to expand into space travel STP Segments Income: Super rich Social class: Upper class Benefit: Experience User status: Potential customers, first-time user Targeting Rich customers who would like to go to space for their very first time Positioning Virgin should position themselves as a first company who provide opportunity to customers to fly into space with the low cost but in the most safety spaceship Marketing Mix: Product Space travel is a service Core benefit: To travel to space, discover new thing which customers never have before Augment products: To enhance customers position in society 50 Price Internal factors: Break-even pricing Virgin should only take back their investors fund and money which invest in the project by reaching the break-even revenue The reason is taking back the fund is making the cost lower for customers to purchase However, the fund which they invest into this project is very high which will reach about 400 million USD External factors: The market and demand factors The demand of customers who are very rich is to enhance their life position Therefore they are willing to pay such a large amount of money to be in the first commerce space trip To combine, the price which Virgin release should be the meet between the internal factors and external which is high enough for Virgin Galactic taking back their fund and also profit but not so high as their competitors Pricing method Virgin should give to their customers the price which are calculated based on their competitor Distribution Space travel will be distributed by extensive Promotion Public relation This project should be known by the public, especially by the investors Virgin should show them the ratio of chance of successful for them to invest into this projects It also can be known by the public, who are in Virgin targeting through some science reports on newspaper, online magazine, traditional magazine and television 51 Direct mail Contacting to some potential investors to ask them for the fund Also sending email to introduce the service and the potential; of the project to Virgin targeting customers Personal selling Whenever the investors or potential customers reply the email, or directly contact to the company, their should be a well-trained person who can easily communicate with them That person should know exactly what the service is and know how to persuade the investors or customers 4) Using Figure 16.14, identify strategic and operational standard for the Virgin Group and Virgin Galactic Strategic Indicators Corporate/Brand image Brand awareness The space travel service is not a bargain The target of Virgin should be only use the effective of this project to appeal more customers in others segment to focus on others products from their subsidiaries Operational Standards Advertising Reach The effectiveness is the most important thing that Virgin should focus on This will help them to enhance their fame on the global market which help them to appeal more investors, enhance their credit and be known by large amount of customers in the world 52