Global Marketing Strategies and Challenges
Uploaded by
ScribdTranslationsGlobal Marketing Strategies and Challenges
Uploaded by
ScribdTranslationsGLOBAL MARKETING AND RESEARCH AND DEVELOPMENT
ANALYSIS AND CRITICAL REASONING QUESTIONS
1. Imagine you are the marketing manager for an American manufacturer of disposable
diapers. Your company considers entering the Brazilian market. Its CEO believes that
the advertising message that has been effective in the United States will also be
effective in Brazil. Prepare an outline with some possible objections to this
argument. Likewise, its CEO believes that pricing decisions in Brazil can be delegated
to local administrators. Why might I be wrong on this matter?
The advertising message could not work since they are different countries within
which there are different cultures, different ways of life, tastes and preferences.
Brazil is one of the most important commercial references in South America, I could be
wrong because by delegating prices to local administrators, they could be high since
the diaper manufacturer is located in the US, which would not be profitable.
2. Within 20 years, we will have seen the emergence of a huge global market for
standardized consumer products. Do you agree with this statement? Justify your
answer.
Yes, I agree with this statement because the standardization of products, that is, their
classification and description according to their quality and characteristics, is an
instrument of singular importance for markets to function better, to adequately satisfy
the needs and preferences of consumers. consumers, to stimulate the investment and
effort of producers and to expand the consumption of products.
3. Suppose you are the marketing manager of a food products company planning to
enter the Indian market. The retail sales system in this country tends to be very
fragmented; In addition, retailers and wholesalers usually establish long-term
relationships with food producing companies, which makes access to distribution
channels difficult. What distribution strategy would you advise your company?
Because?
The long channel distribution strategy since the Indian market has a fragmented retail
sales system, generating the growth of wholesalers to supply retailers. That is,
establishing commercial links with wholesalers, because they already have loyal retail
customers and have a good positioning, thus making it less complex to sell new
products to them.
4. Price discrimination has no difference from dumping. Comment on the accuracy of
this statement.
They are two disciplines that have as their origin the existence of different prices for
the same product, the analysis and regulation of each one is different.
Price discrimination occurs when companies that participate in a perfectly competitive
market have no other option than to charge a competitive price, that is, when facing a
horizontal demand curve they are “price-takers”, therefore that they have no choice
but to sell at the market price as opposed to dumping since it is an imported product
in which its price must be below the normal value of the country of origin, causing or
threatening damage to the industry of the importing country and the establishment of
the causal link between the price and its damage to at least 25% of the national
industry.
5. Imagine that you work for a company that designs and produces personal
computers. The ID center is in North Dakota, United States. The computers are
manufactured, by contract, in Taiwan. The marketing strategy was delegated to the
heads of three regional groups: an American group (in Chicago), a European group (in
Paris), and an Asian group (in Singapore). Each regional group develops the
marketing strategy for its area. In order of importance, the largest markets for its
products are North America, Germany, Great Britain, China and Australia. Your
company is having problems in the product development and marketing process.
Products enter the market late, production quality is low, costs are higher than
projected, and acceptance of new products is lower than expected. What could be
the origin of such problems? How would you solve them?
The origin of these problems would be not having the appropriate technology,
innovation, or the type of contract established with the manufacturer.
I would solve it as follows:
One option would be to work with a national supplier that is at the forefront of
technology, who has the capacity to fulfill the established contract on time.
6. Reread the “Administrative Overview” about Levi Strauss and answer the following:
a) What marketing strategy was used until the early 2000s? Why did this strategy
work for decades? Why wasn't it already working in 2004?
They used the strategy of fashion trends, this strategy worked because it was the
option of the hippie generation and the majority of the 500,000 people at the
largest music festival of the time, it did not work in 2004 because it was only part
of one season but not had a future focus.
b) How would you characterize Levi's current strategy? What elements of the
marketing mix have changed in each country?
Levi's strategy was adaptation taking into account the thoughts of consumers
regarding its products, for example, Americans think that the products are basic
clothing to be used daily, while Europeans and Asians consider it as fashion.
elegant.
c) What are the benefits of Levi's new marketing strategy? Are there any
disadvantages?
By deciding to close factories in the United States and invest in other facilities
where it could be produced more economically, Levi's expanded the range of
products (especially women's clothing) and opened new markets in Russia, China
and India.
One disadvantage is that growth is slow in the US and Europe.
d) What does the story of Levi Strauss suggest to you about the globalization of
markets?
The story of Levi's suggests to us that we must generate global thinking, forget
about the limits imposed by borders and the political division of this planet and
generate a thought free of ties that allows us to make exchanges in the markets,
with the only in order to achieve a sustainable competitive advantage that allows
the development of our society.
Common questions
Powered by AIPrice discrimination and dumping both involve different pricing strategies but differ fundamentally in their regulatory contexts and objectives. Price discrimination occurs in competitive markets where firms set varying prices for the same product based on demand elasticity, serving as 'price-takers'. In contrast, dumping involves selling a product in a foreign market at a price below its normal value, aiming to damage the industry's local competition by undercutting, which can trigger international trade penalties .
Levi Strauss' shift toward a more adaptive marketing strategy allowed the company to tailor operations according to varying consumer perceptions across different regions. For instance, the perception of Levi's as basic clothing in the US versus elegant fashion in Europe and Asia influenced regional marketing tactics. This adaptation supported global expansion, opening new markets in countries like Russia, China, and India, although it also caused slower growth in traditional markets like the US and Europe due to the complex changes in production locations and market focuses .
Closing US factories allowed Levi Strauss to reduce production costs by shifting to more economical locations. This cost-saving measure, combined with enhanced product diversity, enabled strategic financial investment in enterprising new international markets. However, this also carries the potential downside of initial slow growth in its established markets like the US, due to transitional operational and strategic adjustments necessary when shifting production activities abroad .
The problems likely originate from a lack of cohesive strategy and coordination among different regional marketing teams. Specific issues could include misalignment in market entry timing due to varied regional strategies, inconsistent quality control measures, higher costs from inefficiencies in communication and coordination, and poor market adaptation leading to lower product acceptance. Solving these requires adopting centralized oversight with flexible localization strategies to ensure technology and contracts align across regions .
A strategic solution involves integrating technology and management practices focusing on enhancing communication and alignment between product development teams and manufacturing partners. Establish cross-functional teams that include representatives from marketing, design, and production to ensure comprehensive understanding and faster issue resolution. Implement advanced project management tools to monitor timelines and budgets strictly, and partner with tech-savvy suppliers to ensure high-quality production standards and on-time delivery .
Delegating pricing decisions to local administrators in Brazil might lead to pricing that does not align with the company's strategic objectives. Local administrators may set prices based on their understanding of the market, which might not consider the overall brand positioning and competitive strategies necessary for profitability. This could result in prices being set too high, potentially deterring customers, or too low, impacting profit margins negatively and not covering costs of production and operation .
Levi Strauss' history highlights the necessity for companies entering international markets to embrace global thinking and to transcend geopolitical borders in their strategy development. It underscores the importance of adapting products and marketing strategies to local preferences while maintaining a coherent global brand identity. This approach enables sustainable competitive advantages and supports societal development through diverse market engagement and tailored consumer interactions .
The primary cultural challenge involves recognizing the differences in consumer behavior, preferences, and cultural values between American and Brazilian markets. American marketing strategies may not resonate in Brazil due to these cultural distinctions, potentially reducing the effectiveness of the advertising message . Furthermore, differences in economic conditions, societal norms, and consumer expectations could require significant adaptation in both the message and medium of advertising to successfully penetrate the Brazilian market .
A long channel distribution strategy is most effective for entering the Indian market due to its fragmented retail system. This approach leverages existing wholesaler-retailer relationships to facilitate market entry. Wholesalers have established networks and customer loyalty, which can help in gaining quick market access and ensuring efficient product distribution. This strategy circumvent complex distribution challenges by relying on local expertise and infrastructure .
The emergence of a global market for standardized consumer products hinges on the balance between efficiency in production and the ability to meet diverse consumer preferences globally. Standardization facilitates better market functionality, satisfies consumer needs, stimulates producer investment, and boosts product consumption. However, it must overcome challenges such as varying local consumer tastes and regulatory standards. Although feasible, it requires significant efforts in market understanding and product adaptation to local needs without losing the standardization advantages .