1.1 Starbucks Going global fast1. The controllable and uncontrollable entry barriersControllable: Limited selection of local partners Pricing policy Local tastes Range of products offered on different marketsUncontrollable: Legal requirements Local and global competition presence Coffee prices on local markets Starbucks impression Cultural challenges

2. Major sources of risk facing Starbucks and potential solution1. Strategy: Strategy not adjusted to companys maturity level Low employee morale with deepening staff dissatisfaction Centralized power and decision-making (Howard Schultz)Solution: Allocation of higher percentage of revenues on employees Increase of staff job satisfaction Preparation for unexpected Schultz withdrawal Strategy readjustment2. Customers: Growing customer infuriation due to Starbucks predatory real-estate strategy resulting with too many outlets Narrow customer target group New generation not attracted by StarbucksSolution: Surcease of predatory real-estate strategy Market research to address needs of new generation of customers Stores diversification3. Growing rivalry: Worldwide expenditure of other global enterprises such as McCafe Starbucks lookalikes filling up the Japanese market Other regional coffee brands on international marketsSolution: Product and pricing strategy adjustment to dynamically growing competition Enhanced marketing focus

4. Social aspects: Brand perception problems Counter globalization movements and behavior Starbucks products considered unhealthySolution: No usage of unhealthy ingredients Product positioning as healthy and eco Market research identifying key image issues Engagement in local community problems

3. Overall corporate strategy critique Aggressive attitude towards local entrepreneurs Disregard of advertisement importance trifling marketing costs Product and pricing strategy inappropriate to the companys maturity level Narrow target customer group Staff dissatisfaction low wages and long working hours Low job reputation3. Recommendation for profitability growth on Japanese market Increase of competitive advantage over lookalikes Adjustment of coffee and food tastes of Japanese customers Wisely increase marketing expenditures in terms of existing outlets development Launch of official Starbucks social app increasing customer loyalty

1.2 Nestle: The Infant Formula ControversyNestle one of worlds largest food-processing companies with worldwide sales of over $100 billion has been a subject of an international boycott. In 1974 report has been published which suggested that powdered-formula manufacturers contributed to the death of Third World infants by hard-selling their products to people incapable of using them properly.The charges included: Preparation of milk-formula with highly contaminated water (coming from local laundry and toilet) led to recurring attacks of diarrhea and vomiting Many parents diluted the formula to stretch their supply or some believed that bottle itself has nutrient qualities so they merely fill it with water which resulted with extreme malnutrition Dramatic decrease in the incidence of breast feeding Hard-selling mass advertisements in radio and product sampling in hospital, via nurses and doctors misleading African women of the breast feeding role. 1. Responsibilities of companies in this or similar situationsTheir marketing strategy and advertising didnt fit the culture and social issues. This led to lack of awareness of problems which undeveloped countries were facing. By lack of customer-centricity and social responsibility Nestle were partially responsible of deaths Third World children.2. What could have been done to avoid accusations of killing Third World babies and still market its product?We should remember that this situation was many years ago when was different marketing era. It was the time when marketing was concerned mostly about the product. In fact the 70s were the beginning of social marketing. From current perspective we know which factors were the baseline for issue said in the case and we can outline the actions which could have been done. However, there was significantly different time when it happened. Define different marketing strategy for other countries based on the culture, development level and issues in the society. Before entering the market they should gain the knowledge about it in order to address and position product in a right way which wont cause any harmful situation. Be aware of huge differences between developed and undeveloped countries not take international markets same as the local one3. The possible ways of protecting the company in the future Develop detailed market research of potential new markets so that the company would gain the knowledge about the environment, social issues and the culture of the nation we want to do the business. Company must ensure that marketing strategies and advertising methods fit the culture and social issues. The enterprise must always think of the impact of their advertisement on the people behavior. A company must have various marketing strategies dependent upon the characteristics of the market. Some strategies may differ from region to region and only be able to use the same strategies for various countries and/or regions. Cooperation with the government and national health organization supporting social responsibility of the company not only when it comes about local market but also about international markets. Identify major issues, taboo, policies and beliefs which might have impact on the peoples perception of offered product. Advertising strategy must be socially responsible, allowing the promotion of product in a way which wont have any harmful consequences. Advertisement must be led in different countries by different approaches which fit the society, etc. Education about the product in new markets which will decrease the risk of misusage which leads to in case of Nestle malnutrition or even deaths. 5. Recommendation for Nestle in terms of HIV infection spread via mothers milkWith the increased risk of HIV infection being spread via a mothers' milk, Nestl has an opportunity as a market for formula indeed exists if breast milk isn't feasible. Cooperation with the governments and health organizations in terms of showing the commitment to their country. For example, funding the HIV testing and investing in the education programs about HIV infection and its consequences as well as the child nutrition aspect. This must lead to product promotion but in a way as the alternative for breast feeding when the woman is infected. Offering testing and samples in less developing countries all the while knowing how and what issues that society is facing, ensuring these efforts will make matters better not worse. Educate the women on diseases that can be passed on to children (conception, delivery, breast feeding). Educate moms/women on the benefits of breast feeding when a mom is healthy. Offer tests for moms to determine if breast feeding is the best option

1.3 Coke and Pepsi Learn to Compete in India

1. The political environment in India has proven to be critical to company performance for both PepsiCo and Coca-Cola India. What specific aspects of the political environment have played key roles? Could these effects have been anticipated prior to market entry? If not, could developments in the political arena have been handled better by each company?The political environment have played key role as follow: Indian government viewed as unfriendly to foreign investors. Outside investment had been allowed only in high-tech sectors and was almost entirely prohibited in consumer goods sectors. The Principle of indigenous available If an item could be obtained anywhere else within the country, imports of similar items were forbidden. This made Indian consumers had a little choice of products or brands and no guarantees of quality or reliability. Indian Laws, the government mandated that Pepsis products be promoted under the Lehar Pepsi name. For Coca-Cola, they attempted to enter into Indian market by joining with Parle and became Coca-Cola India

Some of these effects may have been anticipated, especially foreseeing the corruption within Indian government. Taking that into account more proactively might have helped Coca-Cola avoid hardships in the past. As far as the contamination issues goes, that might not have been so easy to anticipate. Both companies held their own when trying to prove their products were within safe limits compared to other food products.They could developments in political arena; Coke could agreed to start new bottling plants instead of buying out Parle, and thus wouldnt agreed to sell 49% of their equity.

2. Timing of entry into the Indian market brought different results for PepsiCo and Coca-Cola India. What benefits or disadvantages accrued as a result of earlier or later market entry?

Pepsi entered into the Indian beverage market in July 1986 as a joint venture with two local partners, Voltas and Punjab Agro, forming Pepsi Foods Ltd. Coca-Cola followed suit in 1990 with a joint venture with Britannia Industries India and then in 1993 aligning with Parle, the leader in the industry.The primary barrier to Pepsis entry into the Indian market was its political / legal environment as a result of its history; also, the government mandates that Pepsi products be promoted under the name Lehar Pepsi within the Indian market. Despite the CEO of Pepsi said: Were willing to go so far with India because we want to be sure we get an early entry while the market is developing.In May 1990, Coca-Cola reenters Indian by means of a proposed joint venture with local bottling. The primary barrier to Coca-Colas entry into the Indian market was its political / legal environment. The government turned down this application. However, Coca-Cola made its return to India by joining forces with Britannia Industries India Ltd., The new venture was called Britco Foods.At that time, Coca-Cola would not take market share away from local companies because the beverage market was itself growing consistency from year to year. This is disadvantage of Coca-Cola.

3. The Indian market is enormous in terms of population and geography. How have the two companies responded to the sheer scale of operations in India in terms of product policies, promotional activities, pricing policies, and distribution arrangements? Responses to Indias Enormity Pepsi and Coca-Cola responded in many ways to the enormity of India in terms of it population and geography. Responses to Indias Enormity Product Policies Catering to Indian tastes Entering with products close to those already available in India such as colas, fruit drinks, carbonated waters and waiting to introduce American type drinks Coca-Cola introducing Sprite recently, Introducing new products, and Bottled water. Responses to Indias Enormity Promotional Activities Both advertise and use promotional material at Navrartri Pepsi gives away premium rice and candy with Pepsi Coca-Cola offers free passes, Coke giveaways as well as vacations Use of different campaigns for different areas of India India A campaigns try to appeal to young urbanites India B campaigns try to appeal to rural areas Responses to Indias Enormity Pricing Policies Pepsi started out with an aggressive pricing policy to try to get immediate market share from Indian competitors Coca-Cola cut its prices by 15-25% in 2003 Attempt to encourage consumption to try to compete with Pepsi and gain market share Responses to Indias Enormity Distribution Arrangements Production plants and bottling centers placed in large cities all around India More added as demand grew and as new products were added

4. Global localization (glocalization) is a policy that both companies have implemented successfully. Give examples for each company from the case.Global + Localization = GlocalizationBy taking a product global, a firm will have more success if they adapt it specifically to the location and culture that they are trying to market it in.Both companies have successfully implemented glocalizationPepsis GlocalizationPepsi forms joint venture when first entering India with two local partners, Voltas and Punjab Agro, forming Pepsi Foods Ltd.In 1990, Pepsi Foods Ltd. changed the name of their product to Lehar Pepsi to conform with foreign collaboration rules.In keeping with local tastes, Pepsi launched its Lehar 7UP in the clear lemon category.Pepsis GlocalizationAdvertising is done during the cultural festival of Navrartri , a traditional festival held in the town of Gujarat which lasts for nine days.Pepsis most effective glocalization strategy has been sponsoring world famous Indian athletes, such as cricket and soccer players.Coca-Colas GlocalizationFirst joined forces with the local snack food producer Britannia Industries India Ltd. in the early 90s.Formed a joint venture with the market leader Parle in 1993For the festival of Navrartri, Coca-Cola issued free passes to the celebration in each of its Thums Up bottlesAlso ran special promotions where people could win free vacations to Goa, a resort state in western IndiaCoca-Colas GlocalizationCoca-Cola also hired several famous Bollywood actors to endorse their products.

5. How can Pepsi and Coke confront the issues of water use in the manufacture of their products? How can they defuse further boycotts or demonstrations against their products? How effective are activist groups like the one that launched the campaign in California? Should Coke address the group directly or just let the furor subside?

Coca-Cola eventually decide to go on the attack, though indirectly, giving detailed briefing by executive, who questioned the scientific credentials of their products accusers.PepsiCo began a public relations offensive, placing large advertisement in daily newspapers saying, Pepsi is one of the safest beverage you can drink today.From campaign in California can be effective in solving the problem and marking trust in water problem. Coke should the group directly for easy working.

6. Which of the two companies do you think has better longterm prospects for success in India?

Pepsi Better marketing and advertising strategies More widely accepted More market share

Coke Government conflicts Trailing Pepsi in market share Pepsi will fare better in the long run

7. What lessons can each company draw from its Indian experience as it contemplates entry into other Big Emerging Markets?Pepsis Lessons Learned Beneficial to keep with local tastes Beneficial to pay attention to market trends Celebrity appeal makes for exceptional advertising It pays to keep up with emerging trends in the market Coca-Colas Lessons Learned Pay specific attention to deals made with the government Establish a good business relationship with the government Investment in quality products Advertising is crucial

1.4 Marketing Microwave Ovens to a New Market Segment

ASSIGNMENTYour task is to develop a strategy to market White Appliances microwave ovens in India. Include target market(s), microwave oven features, price(s), promotion, and distribution in your program. You should also consider both short-term and long-term marketing programs. Some of the issues you may want to consider are: Indian food preparation versus Western food preparation. Values and customs that might affect opinions about microwave ovens. The effects of competition in the market.

India outlook: India is the seventh largest country in the world. India's population is one billion making it the second most populous country after China. There are generally more children in a family. In some places girls do not attend schools and becoming housewives. The food of India is extremely diverse, as ingredients, spices and cooking methods.

Other facts: Indian people prefer cook in kitchen rather than using microwave The taste of the dishes will be different if cooked by hand manually or by microwave. Compare of Indian foods and western foods: Indian foodsWestern foods

Use of various spices, herbs and vegetables Wide assortment of dishes and cooking techniques Simple ingredients and put substantial emphasis on sauces as condiments, seasonings, or accompaniments Less-simple cooking techniques

Microwave is becoming an emerging trend in small towns in India, since the Indians already get the knowledge how to used microwave daily. Indians like novelty, so microwaves may replace the demand of goods like second television or big refrigerators. Soon, microwave is taking up a key role as one of the daily use home appliances in Indian homes.

Market segmentation: Geography Urban SuburbanDemography College graduated or higher Age 22-40 years old Income over Rs. 30,000Lifestyle Modern cooking Hurry-up lifestyle

Marketing MixProduct strategy: Compact microwave oven: toast and grill function Modern appearance User friendly with less-button Auto cooking Multi-stages cooking Easy-to-clean and rust free Child safety lockPrice: A little lower to competition, to attract the market in its introductory stage. But can be adjusted through time, depending on market response (may go low or high). Promotion: Incorporate the use of this microwave oven in a popular cooking show thats being aired in major cities in India, if not all over the country Entice the idea in making a promotional ads that everyone can use microwave to cook good food effortless, which even can man prepare his own food Demonstrate microwave utilization in major malls or widely known appliance stores, capitalizing to the products special featurePlace: Shops / markets Personal sales

SWOTStrengthWeakness

Easy-to-use High technology Functional; toasted, grill, heat Long-term usage Safety for child Easy-to-clean Call center service After-sale service Microwave maintenance cost is high. (for user) Lacking brand awareness and image

OpportunityThreat

Social change (The changing lifestyles and family structure) Huge population (1.3 billion) Labor pool Consumer unclear of other microwave utilizations for day-to-day cooking. Competitor intentions

Short term marketing strategy: To position the product in the market A little lower pricing to the existing competitor Highlight on the special feature of the microwave in launching a promotional ads (cooking shows, mall demos, personalized cooking class, etc.) Advertising and communicating Use a known personality to endorse the product Movie, regular ads, internet banner Door-to-door marketing in the most populated places in the 7 major cities, to create awareness that the product exist

2.1 The Not So Wonderful World of EuroDisney

1992: Paris 310 million people in Europe live 2 hours by plane Summer 1994: lost 900 million since openingCheaper hotel, meal, ticketsFrench dont go to EuroDisney "American imperialism"New change to attract: bigger castle, tram from hotel to parkFrench spend max 2 days against 3 in US.1996: start to be successful "Disneyland Paris"They realize it's not a good to make all the US atmosphere (food) but guest need to be welcomed on basic of their own culture.Disneyland most famous than Eiffel tower, they learned from mistakeTokyo made money because Japanese attach to Disney characters.

2005 Disneyland Paris bankruptcy, new invest from government. CEO ask to open Charles de Gaulle (airport) to more low cost company

Hong Kong: they wouldnt make the same mistake as Paris, take a long time to analyze Chinese comportment and culture, attitude. No building 4 floor because is a bad number in china, wait a special date to open the park much better orientation of park...Problem: to small park, not so famous in China, limited knowledge, communism area 40 years, big adaptation, special decoration for new year, food in restaurant...

2.2 Cultural Norms, Fair & Lovely and Advertising

Huge cultural differences between Western and Asian countries while in Western countries tanning is the rage, in Asia skin lightening treatments are widely popular. Hindustan Lever Ltd. (now Hindustan Unilever) Fair & Lovely used to be and still is the top-selling skin lightening cream, followed by its competitor CavinKares Fairever. Before Fairever was created, Fair & Lovely dominated the market by having 90% of market share. With the introduction of Fairever and its rapid growth, HLL came up with the series of controversial advertising campaigns which focused on skin color as a leverage to better social position, finding husband, etc. Skin color is the powerful theme in India fair skin is connected to higher social status, class and beauty. Moreover, it focus on men dominance and women passiveness in the society. AIDWA (All India Womens Democratic Association) is an activist group against the Fair & Lovely advertising as well as the product. AIDWA lodged the complaint about three aspect of campaigns: racism, son preference promotion, insulting working women. As a result HLL: Launched Fair & Lovely Foundation encouraging economic empowerment of women across India by providing resources in education and business to millions of women Sponsorship of career fairs in over 20 cities offering counseling in many careers Rural scholarships for women students passing their 10th grade Professional course for aspiring beauticians Three-month Home Healthcare Nursing Assistant course offering training for young women who possess no entry-level skills and therefore are not employable Modifications in advertising reworked to enhance your self-confidenceAfter AIWDA campaigns, Fair&Lovely advertising has change but in fact HLL still keeps the highest market share and despite the boycott the demand for fairness creams didnt slow down. In fact the demand is growing 15-20% each year. It has risen about 43% in last 3 years.1. Is it ethical to sell product which is only mildly effective?Yes, in other way there should be no advertisements of any beauty cosmetics because there is no prove for them to be effective. Promotion is the most important element of brand positioning so companies should be able to promote their products. Customer on the other hand are thinking beings which have their own right to believe in the potential effects of offered product. One will believe that those product are working, others not but its their own opinion.2. Is it ethical to exploit cultural norms and values to promote the product?Yes, international marketing is based on entering new markets with the awareness about the culture, existing social issues, taboos or other factors specific to each country. Using cultural aspect while promoting is something normal. Fair & Lovely didnt create the feeling of being worse when having the darker skin. This existed much before theyve created the fairness cream. They simply observed what are the needs of people and controversial social aspect and use it wisely. 3. Fair & Lovely way of promotionHLL used social taboos and caste issues which exist in Indian society. Theyve promoted the hope of changing the lifestyle rather than simply promoting how to use product and potential effects.4. Will Fair & Lovely Foundation be enough to counter charges AIDWA?Yes, HLL put lots of efforts to become socially responsible company, which supports women empowerment. As shown in the case, after AIDWA boycott the market hasnt declined. It has even risen about 43% in 3 years and is still growing about 15-20% each year. This shows the demand for fairness creams and for me this means that people didnt give up on HLL.7. Now that a male market for fairness cream exists, is the strength of AIDWAs argument weakened?Yes, AIDWA postulated about the gender discrimination and unethicality of promoting that the main qualification for woman to get the job or husband is the way she looks. While more than 40% of men is using fairness cream, this means that the skin color is the important issue not only in female Indian population but as well as the male. Accusing the Fair & Lovely of it is wrong. They simply addressed the people needs and the demand.2.3 Starnes-Brenner Machine Tool Company: To Bribe or Not to Bribe? Case outlook: FrankBill

Frank pays mordidas to get equipment passed by government officials.Bill absolutely opposes the idea of mordidas.

States business will fail without the payment of mordidas.States business will be successful without paying mordidas.

Believes they are not encouraging bribery to spread but rather just accepting the Latinos ways of doing business.To bribe is unethical.

1. Is what Frank did ethical? By whose ethicsthose of Latino or the United States?Bribing is not ethical. In this case it is ethical for Frank, because Latino bribery is seen as normal.What did Frank not justified, since no matter the part of the world in which they do, bribery is totally unethical.

2. Are Franks two different payments legal under the Foreign Corrupt Practices Act as amended by the Omnibus Trade and Competitiveness Act of 1988?The first payment of Frank is legal, because as a payment to the chief of the border workers to expedite the transfer, the statutes concerning the payment of these have softened.The second payment to government officials, to repair the machines is illegal.3. Identify the types of payments made in the case; that is, are they lubrication, extortion, or subornation?In both cases, the types of payments are identified subornation because subornation is defined as someone with corrupt money, gifts or some kind of favor, in order to get something for that person.4. Frank seemed to imply that there is a similarity between what he was doing and what happens in the United States. Is there any difference? Explain.Frank says that when you have big dinner parties where different treatment or close businesses and stakeholders pay the bill, is a tipe of bribery.The difference is that in the U.S. these are normal business dinners and Latino bribes are large amounts of money being paid directly.5. Are there any legal differences between the money paid to the dockworkers and the money paid the jefe (government official)? Any ethical differences?Yes, there are legal differences. First, the payment to a government official is illegal, while bribery dock workers is considered legal under Foreign Law on Corrupt Practices.If we analyze the ethical part, there aren't differences, because it evades honesty and in both cases there is bribery.6. Franks attitude seems to imply that a foreigner must comply with all local customs, but some would say that one of the contributions made by U.S. firms is to change local ways of doing business. Who is right?The reality of the world tells us that when we enter or do business in other countries, we must know their culture, their traditions, their profile negotiator, among other things. This doesn't mean that we have to mold it entirely. There is a difference between adapting to certain rules or customs and depend or be enslaved them.U.S. companies are trying to establish a new business system, without bribery and honest practices, regardless of whether the country you're working with is illegal working methods, make use of bribes and this is seen as normal.Ethics must be above everything.7. Should Franks behavior have been any different had this not been a government contract?Franks attitude would have been different, as with any client, ethical principles should be the same. Bribes not be admitted under any circumstances. 8. If Frank shouldnt have paid the bribe, what should he have done, and what might have been the consequences?Frank had to wait for American mechanics or find another solution within the same country. If I had done this, you probably would have lost the client and their profits, but had established a more clean and proper business conduct.If Frank shouldnt have paid the bribe, what should he have done, and what might have9. What are the company interests in this problem?Within the policies of the company there is no possibility of bribing, but if this happens, as in the case of Frank, former president of the company preferred to skip this, because he gave more importance to the profits it was generating Frank, no matter how it was generated.10. Explain how this may be a good example of the SRC (self reference criterion) at work.Frank has a reference about himself and his way of manage the business, and he thinks that he is the best doing his job and that the others are wrong, but he doesnt know that he is making a mistake doing the things without ethics.This is a perfect example of the SRC, because he closed his view to himself and nothing else, and belittles the work of the other people.11. Do you think Bill will make the grade in Latino? Why or why not? What will it take?Bill will succeed in Latin as honest working methods establish and implement the strategy that worked well in the United States. He will need strong strategies based on cost or differentiation to compete healthily without bribes.12. How can an overseas manager be prepared to face this problem?Any manager that aims to work abroad in the future, you will need excellent training. This training should address issues such as practices, norms, lifestyles, culture, etc.., the country where you are going, so that when exercising, that person can know what will face problems and scenarios. Your skills and abilities will give you the tools to resolve conflicts that may arise.

2.4. Ethic and Airbus1. In each of the cases described, who benefits and who suffers from the alleged ethical and legal lapses of Airbus?Suffers taxpayer and consumer but also Boeing because they are coming back with fair offers and those are getting rejected because they are not giving kickbacks.Benefits middleman, government officials and Airbus. 2. How should the public relations staff at Airbus respond to the articles appearing in The Economist , The Guardian , and Reuters News?

3. What steps might Boeing take to defend itself from this sort of competition?U.S. Commercial services frequently aides businesses attempting to compete in foreign markets conducting un fair business practices. The US government needs to step up nad help Boeing with contracts. 4. Do you think that Boeing and Airbus behave differently in marketing their aircraft around the globe? How and why?Yes, Boeing does not give in to bribery to win contracts, from the way this article sounds. Airbus does nothing but give out bribes and kickbacks to win contracts. The article makes the point that Airbus has more attractive range of planes yet Boeing frequently comes in at a lover bid. 5. Had France adopted the OECD convention on bribery ahead of these transactions, would the firms behavior have differed? Why?Yes, had France adopted OECD earlier these middlemen

2.7 McDonalds and Obesity

30 percent young fat in US, we have to take care!American child sees 10000 food ads a year, mostly for high fatJunk foodCountry realized it, they create law against fast food (France, UK ...)McDonalds answer: try to be healthier. No salt in fries, less ads, change color of logo, propose bag of fruits for children...

We all know McDonalds and bad effect (super-size me)

3.1 International Market Research at Mayo Clinic1. Outline the market research which needs to be done in order to support the growth strategyStep 1: Definition of the problemExisting customers: Determine current satisfaction level of patients and factors that cause satisfaction or dissatisfaction Perception of doctors, medical technology, nursing care, physical facilities, management and ethics Perception of Mayo ClinicNew potential markets: Perception of health insurance, medical care (public and private) in different markets Perception of doctors, medical technology, nursing care, physical facilities, management and ethics Satisfaction or dissatisfaction of medical care services Local competitors as well as local pricing of medical care servicesStep 2: Development of the approach to the problemQuantitative and qualitative research based on data about potential market. Each potential market should be evaluated separately and in the end compared within group so that the most profitable markets could be chosen. Moreover, another market research should be organized for local market which will be focused on increasing satisfaction of existing customer as well as definition of new potential target groups.Step 3: Formulating a research designGather the relevant data from secondary or primary sources, or both. Mayos International Marketing Department should analyze available secondary information as a useful first step. Information required ranges from the general statistical data to understand target markets preferences in the healthcare industry to specific market information about media and other efficient means of delivering information to the target market for decisions about promotion. To find out which countries value the US health care highly and where Mayo Clinic services may have a competitive advantage over local ones we should conduct a multicultural research. It involves countries with different languages, economies, social structures, behavior, and attitude patterns towards taking care of their health. There are many studies conducted and statistical documents available online for the secondary dada research. These data are more widely available because they are commonly reported by the United Nations and other international agencies. Once approximations for health trends and preferences are established, Mayo will have more understanding of what additional primary research is needed. Step 4: Doing fieldwork and collecting dataIn order to ensure the best quality, two methods of market research are recommended to be used: quantitative and qualitative. Primary research will be conducted by focusing on one country at a time and using native speaking research agents. Outside vendors who know the culture and the language will be necessary due to cultural differences that may lead to unwillingness or inability to participate, collect, or interpret responses if surveys are conducted by US marketers. The main goal is to gather as much cultural and historical information about our target market. While conducting a survey the target market has to be a random sample in a specific sample frame. This way every population member will have an equal chance to be surveyed. This is a key of having a true random sample and avoiding bias.It is also recommended to conduct research about the local health providers and availability of resources to treat the common and rare diseases found in such countries. Qualitative data will be collected to find out preferences and criteria people look for in a good health provider in their home country and whether they are satisfied or not.The primary research will be gathered by means of mail and email surveys, focus groups, personal phone and face-to-face interviews, as well as direct observation of people in clinics and insurance offices. The methods will vary according to customs and cultural differences among countries.Step 5: Preparing and analyzing dataAfter conducting and processing research, Mayo Clinic researchers should analyzed gathered data. Analysis of the quantitative data should deliver insight into obtain specific responses regarding aspects of the respondents behavior, intentions, attitudes, motives and demographic characteristics. Quantitative research provides the marketer with responses that can be presented with precise estimations. Qualitative research with open-ended or in-depth, and unstructured responses reflects peoples thoughts and feelings on the subject. The purpose of the research is to formulate and define problem or situation more clearly and to determine relevant questions to be examined in subsequent research. It is also used to stimulate ad message ideas and where interest centers on gaining an understanding of a market.Step 6: Preparing and presenting the reportBased on the results of analyzed data, the final report documenting the market research should be prepared. The report should include description of the research methodology, data gathering process overview as well as the results and conclusions. Once all the research is collected, processed, and conclusions are drawn; the Mayo Clinic marketing department can decide on the best strategy to build awareness and, potentially, increase its international sales revenues.

3.2 Swiffer, higher, stronger, dearer. Sport and advertising, crazy prices... Sport special quality that make it unlike almost any other sort on TV program Watch sport on live no replay Sport became an essential part of business strategy of television channel. US TV right 20 billion a year Big money because big audience (super bowl) AND targeting on people who watch sport: young men with cash to spend!! BEER, cars, new TV full HD..... Highest concentration of young people Winner take all ex David Beckam, he made almost half of his fortune with advertisement. So big business they want create some special "super league" to create new event too make even more money!!!!

3.3 Marketing on the bottom of the pyramid

Poor people not considerate because of money, but poor people easy to influence with money, ex: ITC India, go to farmer, long work but now acquireMotorola special phone cheap phone 500 h battery for people without permanent electricity. BOP require creative financing CEMEX give furniture cheap and customer build themselves ICICI bank: bank for poor but efficiently, group of support, help each other

BOP market require effective distribution.Unilever: 1000 shaki-amma (comon way to traveling) to distribute to small villages, poor but cheap distribution so cheap price... today 1300 poor women are selling unilever product to 50000 villages in 12 states of India.

BOP market require affordable packaging.Sales women ex: in Africa they sell you ice-cream cheap because the packaging is nothing, really basic, Nestle in China

BOP market create health benefitsAction from World Health Organization supporting by Hindustan Lever Company against soap problemHLC make a sensible campaign to village to prevent them against soap problem (soap in river...)

3.4: Continued Growth for Zara and Inditex

Basic stuff: "fast fashion" 2 week delivery, take example on haute couture, cheaper faster, 2 week delivery Pression on customer if you dont buy it know tomorrow too late. And it is working!No promotion only placement (in 4P marketing-mix)2008: grow fast, lots of new opening shops around the world but problem is that now Inditex need to slow down because cost too high -> cut cost, more flexibility working time, more efficient "no time out" Contract with airplane company, cargo plan, cheaper2009: 7.6 percent decline profit. 1st half of year.Really difficult to sell online but they will do it in Europe thanks to first big logistic challengesResult sales increase again, Inditex continue to grow up and open new shops.They are thinking about creating the application.

Inditex, founded by Amancio Ortega, operates six different chains: Zara, Massimo Dutti, Pull&Bear, Bershka, Stradivarius, and Oysho. Since 2003 and 2008, Inditex has added Zara Home and Uterque to its collection. The retail chains were meant to operate as separate business units within a structure, which included six support areas and nine corporate departments. Main competitors: H&M and GAP

1. What are the ways that Inditex ensures that fast fashion is truly fast?Inditex ensures that its fashion is fast through its supply chain efforts. They have created new methods to enable store managers to order and display merchandise faster and added cargo routes for shipping goods. The company ships clothing straight from the factory to stores and makes two-thirds of its goods in Spain and nearby countries, compared to most competitors who manufacture most of their clothing in Asia. Inditex has their sales managers monitoring computers, which are reporting sales at every store around the world. When a garment does well or fails, they are able to quickly tell designers if they need to come up with new ideas. They also have generated in house store fronts where they develop new marketing promotions every two weeks. 2. What are the important attributes of a fast fashion retailer to customers? To store managers?Retailer to costumer: Give new product fast to shops; Stocked stores with new designs twice a week; Ship clothes straight from the factory to stores to improve product availability; The important fast fashion attributes to the customer is that the retailer is providing the latest fashion to them as soon as it comes out. They want to make sure that they are getting the latest trends first and that they are not buying out dated clothing. It is also important to the customer that the retailer has what they are looking for when they come. They do not want the retailer to be out of stock every time they come in. If they are out of stock, the attribute of having their suppliers close to the retailers means that they would be able to re-stock their merchandise fairly quick.Retailer to store managers: Have information about rate of sale of new collection as fast as possible; New collection has labels in time of arrival (to make fast identification and hang on store) ; Store managers use hand-held computers that show how garments rank by sale, so clerks can re-order bestsellers in less than an hour.

4. Briefly describe five opportunities for continued growth during the next five years for Zaras parent, Inditex, SA. Launch stores in the Americas along with establishing new distribution centers. The same as with China and Russa. Focus on online expansion. Expand aggressively into international markets. Continue to find creative ways to keep the stores looks fresh.

4.1 Tambrands Overcoming Cultural Resistance

1. Tambrands wisdom of becoming Procter & Gamble Tambrands: no capabilities for international growth, lack of infrastructure for global distribute, no brand awareness in potential marketsP&G: large international distribution network, global marketing capabilities, knowledge about different markets, brand awareness in other countriesProcter & Gamble buyout of Tambrands will allow them to position them again in the tampons market. For Tambrands global distribution and international marketing capabilities as well as the infrastructure and deep customer knowledge of P&G was the only possibility for international growth. Without the decision about joining the P&G company Tambrands with its narrow infrastructure and lack of brand awareness wouldnt be able to go global. Obviously there are some negative aspects for Tambrands about joining the big international company but it brings rather more opportunities and leverages P&G strengths. Before approaching P&G for the buyout Tambrands has analyzed their capabilities in terms of global expansion with clear statement: Tambrands could not continue to be profitable if its major market was the U.S. and that to launch a global marketing program was too risky to do it alone.2. Tambrands marketing strategy of marketing each cluster in similar wayThe goal of the segmentation is to create customer-centric strategy. However, Tambrands marketing strategy doesnt seem to follow the main objective segmentation. Although they have adjusted the communication the certain clusters, they seem to follow one type of advertisement. Their marketing costs covering advertisement is around $65 million. Tambrands segmentation showed that clusters are much different between each other when it comes about the attitude towards tampons usage. This segments should be targeted in a different way (not only by different communication). P&G should used Tambrands knowledge about clusters and apply it to their educational programs. There should be organized deeper research in terms of creating more tailored educational programs. Moreover, those programs should take into consideration the country development status, cultural differences and touchy subject within the feminine hygiene products in certain countries. 3. Cultural resistance in identified clustersCluster 1: United States, United Kingdom, Australia already use tampons and many feel they know all they need to know about the productResistance: women feeling that they know all that should be known about the product (not exactly it has to be true)Approach: promotional actions which aims about testing the knowledge about tampons and later giving them brochures which will extend women knowledgeCluster 2: France, Isreal, South Africa about 50% use tampons, some concerns about virginity remain and tampons are often considered as an unnatural products that block the flowResistance: concerns about virginity issues as well as the consideration about the product as an unnaturalApproach: Educational programs increasing knowledge about the product as well the virginityCluster 3: Brasil, China, Russia tackling the virginity issues, lack of knowledge of about how to use tamponsResistance: lack of knowledge how to use the product as well as the concern about virginity issuesApproach: Educational programs increasing knowledge about the product (technical aspect of how to use it) as well the virginity4. The approach that can be used to reach the goal of marketing each cluster in similar wayOut of the approached identified in the exercise 3 there is no universal approach which would fit all the issues form different clusters. Moreover, cluster 2 and cluster 3 might be educated in a similar way which will include educational programs coping with lack of knowledge how to use tampons, women attitude towards product (as an unnatural one) as well as the virginity aspect. However, mentioned above approach cannot be applied to the cluster 1 which is characterized by rather good knowledge about the product as well as high rates of usage.5. P&G marketing strategy in Venezuela with its Mexican modelGenerally P&G model includes educational problems which are the base for position tampons in the market. Product which are used for hygiene and also are connected to touchy issues should be promoted with special programs which not only attract people to buy but also educate people on the product usage. Reopening the Brazilian market should also use the educational programs although market research should be organized before the launch of those programs. Mentioned research should cover the issues specific for the Brazilian market and later be the base for creation Brazilian-centric educational program.

4.2 Iberia Airlines Builds a BATNA

1. Negotiation strategies and tactics of key executives involvedIBERIA AIRLINES (Dupuy) Iberias chief financial officer and the man who led its search for well-known airplane manufactures participate in a real horse race while negotiation. Excellent skills and professionalism of Iberias Dupuy who appears to have played the game to perfection. His critical task was to strengthen his BATNA (best alternative to a negotiated agreement). It had been a long time since Iberia had bought Boeing aircraft. He went to great lengths to bring the Boeing executives into the bidding contest, including offering to fly the 14 hours to Seattle. Another brilliant move was to bring the used Singapore Airlines 747s into consideration. He had also done a good job during the 1995 (another bad market year for aircraft manufacturers) negotiations with Airbus by including the resale price guarantees. Dupuys strategic and manipulation skills led to hit the price target during negotiation between Airbus and Boeing.AIRBUS (Leahy) Airbuss top salesman determined to finally reach the global domination over Boeing, eager to do whatever it takes to get the advantage over Boeing. During the negotiation he used the argument that Airbus ensure better investment return due to less expensive price and its similarity to other Iberias planes. His determination led to win the bidding. However, he gave away too much in price which might have negative consequences later. After the end of negotiation he faced the fact that Iberia has neglected the confidentiality agreement about price guarantees. During the negotiation he talked also about disadvantages of Boeing not only about the advantages of Airbus which seems to be ethical. Leahy even disturbed family holidays when he got frustrated. In order to win the deal, he constantly cut the price finally reaching the Dupuys demand. BOEING (Bright) chief salesman for Europe which after the Dupuys invitation to bidding was eager to sign the contract with Iberia which would help Boeing to stem the tide. He pitched the Boeing airplanes as the revenue machine based on the more seats as well the lower operating cost. Hes an aerospace designer which felt that Boeing planes are undervalued because of Dupuys price demands. Due to the Boeing strategy he didnt offer any resale values guarantees. He has proper negotiation skills which focus on bringing the advantages of Boeing planes rather that criticism of the competitor. He showed the commitment to the bidding by eventually lowering the price go all out to win this bid. Bright at the end of bidding showed the negotiation aggressiveness by cutting the price so it could hit the price target. In the end they lost the deal and Bright made the statement that he hasnt been able to hit Dupuys numbers.2. Overall aircraft makers marketing strategy Airbus and Boeing are competing for market share through price cuts. In a volatile industrial market this guarantees major advantages in the bidding process. We, of course, cannot and would not advise collusion between the aircraft manufacturers. But, both firms would be better off with less aggressive price discounting. A good marketing strategy would explore other avenues for winning industrial accounts such as: after-sales service, guarantees, staff training etc. 3. Key factors which ultimately sent the order to AirbusOne of the main factors were in fact the strong personal and political relationships between the top executives at the European firms clinched the deal. This emphasizes the great importance of relationship building in the business. Moreover, Airbus hit the Dupuys price target and agreed to most of Iberias terms of asset guarantees, maintenance cost limitation and attractive financing terms. Leahys determination to win edged out Boeings aggressive package.4. Iberia is once again on the market for jet liners. How should Bright handle a new inquiryThe question is whether to win the deal by lowering the price to the edge were the deal might no longer is profitable. Bright should stay in line with general Boeing practices by which they have lost the deal with Iberia. However, they might search for different deals which dont require that much price competition during the bidding but the focus is rather on quality, assurance and planes probable revenues.

4.4 National office Machine - Motivating Japanese salespeople: Straight salary or Commission?

National Offices Machine NOM leader in US, already implant in UE leader in US with "successful and aggressive sales"Nippon Cash Machine NCM huge company in JapanNippon/America business Machine Corporation NABMC NOM propose to NCM to work togetherNOM invest on NCM: multiplication by 2 salesforce in a year managing by NOM personal.New salesforce must be young and Japanese.Management problem cultural HR: Nippon way VS US way!!!Nippon: foundation on Japanese management, spending life time with employees, promotion through seniority, single company union, NEVER dismissal even if no work to do, passive attitude, work for life, 9 am to 5 pm, open space, accommodation, pension at 55 years old.US: Data analyze, optimization, every time new product, everywhere to make more profits, salary ++ good job, bonus ++.... "Competition each other"NOM start implementation; push to creative talent, best seller....People change their mind, few years ago western companies was place to avoid, today student want it

4.6 Making Socially Responsible and Ethical Marketing Decisions: Selling Tobacco to Third World Countries1. The ethical and social responsibility implications of the situations described Different tar levels in cigarettes which are the base of unethical treating undeveloped countries U.S. 17mg, Kenya 22.3mg, Malaysia 29.7mg, South Africa 31.1mg Candy-flavored cigarettes advertising focused on youth which might lead to increase of smoking teenagers People in developing countries dont have a long enough life expectancy to worry about smoking-related problems - representative of tobacco company

Generally, tobacco advertising isnt a bad thing. However, due to the specific issues connected to the cigarettes tobacco companies should follow the corporate social responsibility in their strategies. This means they should check whether their marketing strategies and promotions activities dont have negative consequences in terms of immoral target groups, lack of awareness about the health problems related to smoking. Tobacco companies shouldnt be banned to promote their product but surely there should be some restrictions (like no smoking ads on hours were cartoons are shown in TV or on the child channels). Moreover tobacco companies should treat all people equally this means equal level of tar substances in cigarettes for all countries. Different level of tar in cigarettes show violation of human rights in terms of equality and racism. 2. The alternative strategy for tobacco companies Stop targeting youth and sponsoring child events Clear and visible message with health warning Campaigns and educational programs increasing health issues concerning smokers Equal tar level in cigarettes for all countries

3. The U.S government supporting U.S tobacco companies interests abroadFrom the economical point of view, tobacco business generates for governments high amounts of money. Considering the value of that business, U.S. government should be supporting the international presence of U.S. tobacco companies. Governments should also take care of the people well-being. Generally, cigarettes are legal and shouldnt be banned. Everyone has their right to do what they want, including smoking. However, governments while supporting tobacco international expansion should also monitor the quality of cigarettes as well as the promotion activities so that smoking wouldnt be advertised to youths, etc. 4. Should the company be forced to stop marketing a product which is not illegal such as cigarettes?No. Everyone has rights to decide on their own what they want to do. There are many legal, a bit harmful things but customers have their own will so they are able to choose if they want to buy it or not. Considering marketing issues, I think that those companies should have the possibility to promote their product but it should be done in socially responsible way and the most ethically as it can be.