Task 1:

Work in small groups as directors of Hudson Corparation. Hold an informal

meeting and discuss the advantages and disadvantages of each marketing
stategy. Then, choose two marketing strategies for Hudson to focus on
expand sales in European markets.
List of members Acting roles
Nguyễn Dương Việt Hoàng Bob – Chairman/CEO of Hudson’s
Hồ Thị Ngọc Châu Anna – CRO (Chief Research Officer)
Đặng Thị Mai Linh Lyn – CFO (Chief Financial Officer)
Nguyễn Thị Hường Alice – CMO (Chief Marketing Officer)
__________________________________________________________________
SCRIPT
Everyone entered the meeting room. The CEO greeted everyone, then
introduced each member of the board and started the meeting.
Bob: Good afternoon, everyone.
Everyone else: Good afternoon.
Bob: I appreciate you all for being here on time (introduced each member of the
board). If we are all here, let’s start the meeting now. As previously mentioned,
our company is expanding into the European market, and we need to select
suitable campaigns to increase sales there. In our last meeting, we discussed many
strategies, but none stood out as ideal. Today, we’ll re-evaluate, analyzing the pros
and cons to select the two best, most feasible strategies to begin implementing.
That’s the purpose of today’s meeting. Let’s get started!
Anna: I think we need to really understand that the European market is going to
be very different from the USA market and also within Europe there are
differences between countries like France, Italy and Germany.
Alice: We should also do market research in the USA again before expanding to
Europe to understand why our sales are decreasing.
Bob: One of the reasons for this is the increased competition from Asian
companies selling similar products at lower prices. We will explore other reasons
and then do some European market research to really understand what customers
want in that market.
Lyn: In addition, we also have to really clear on what the core values and
messages our brand wants to bring to know what we want the Hudson brand to be
in Europe.
Bob: OK! I will look into these issues carefully. So what do you guys think about
the different strategies presented earlier for Hudson. Hmm... Let me see! We have
6 strategies which are Reposition the brand, Develop the Hudson brand, Hire a top
designer, Develop a wider product range, Stretch the Hudson brand and the last
one is Develop sales using e-commerce
Alice: I suggest repositioning the brand Hudson suitcases and bags at medium
price ranges which would attract a wider range of customers. Additionally,
manufacturing the products in countries with lower labor costs such as India or
China, and not promoting the products as "Made in America" to reduce production
costs for Hudson's core products and allows us to increase our price
competitiveness.
Bob: It sounds financially appealing. If we can reduce our manufacturing costs,
we can increase our profit margins and price more competitively. However, this
goes against the image we have built for so long. “Made in America” is the core
element that makes Hudson stand out to European customers. They trust the
quality and differentiation that our products bring. What does everyone think?
Anna: I think this is perhaps the most dangerous option of all. Not promoting our
products as “Made in America” could dilute the brand’s value and affect our
reputation. We would be no different from the unknown. In addition, the mid-
priced segment is often highly competitive, requiring constant innovation and
marketing efforts to stay afloat.
Lyn: Exactly. Moreover, manufacturing in other countries can pose risks related
to labor rights and product quality. Additionally, manufacturing in low-cost
countries can harm brand perceptions regarding quality and authenticity and
targeting the mid-price segment can result in lower profit margins than premium
strategies. We need to consider this carefully.
Alice: But if we don't reduce our prices, can we compete with other brands?
Lyn: I think instead of reducing prices, we should focus on increasing brand
value. That way, customers will be willing to pay more for the quality and class
we bring.
Anna: Additionally, shifting factories to other countries is not simple. This will be
time-consuming and pose many risks to quality control.
Bob: That’s right. Balancing cost savings with maintaining quality might be
challenging. This strategy may generate short-term revenue but is not sustainable.
This will reduce the long-term value of the company. Do you have any other
ideas?
Lyn: I think focusing on brand development is a solid strategy. This strategy
includes promoting our products as a premium brand and keeping the "Made in
America" label, selling products at higher price ranges, and using product
placement in films and television to support the brand. We could also hire
influential celebrities to endorse the products.
Bob: Hmm... Collaborating with stars, especially in Europe, will help us build a
more luxurious and classy image. This will help our brand attract high-end
customers.
Lyn: Yes, the strength of this strategy is being able to maintain the high-end
segment that Hudson is leading. We do not need to compete too much on price.
Alice: But it would require significant marketing costs to endorse the product
including advertising, brand ambassador cooperation costs, and PR activities and
could limit our market due to higher prices.
Anna: It’s true that the costs are high, but the profits from selling premium
products can offset that. However, there is a problem, which celebrity we’re going
to use and whether we need to use different celebrities for each different country?
That sounds crazy!
Bob: And what if the product doesn’t sell as expected? The company will suffer
huge losses! Not to mention that customers may have higher expectations for
quality and service, which can be challenging to meet consistently. It also means
we need to ensure our manufacturing capabilities meet quality expectations.
Premium products require better materials and more complex manufacturing
processes.
Anna: This is not a strategy that fits our current situation.
Bob: I see. So who would like to start with other strategy?
Anna: What if we hire a top designer? I believe that product design is very
important, so bringing in a leading designer would be essential. We could launch a
unique product line such as smaller suitcases and shoulder bags aimed at
businesspeople travelling in Europe, the young, fashion-conscious and affluent
buyers. This would help Hudson open new customer segments.
Lyn: Sounds good, limited edition collections can create a sense of urgency and
exclusivity and high-profile designers can attract media attention, boosting brand
visibility.
Alice: But if so, the brand may become too dependent on the designer’s reputation
and the cost of hiring someone to design and manufacture a new product line
would be very high. Furthermore, the budget for developing a new brand is not
small. We may have to wait 3-5 years to see the profit from this strategy. We need
quick results, so I'm not sure this option is suitable at this time.
Anna: Hmm... It's true that it's not a top priority right now.
Bob: Not a bad idea, but what concerns me are the risks if the designer's vision
doesn't align with the client's preferences. We need to research the market and
determine exactly the look that customers want. This is quite costly and time-
consuming, not to mention that each country will have different requirements for
the look. Do you understand?
Everyone else: Yes
Bob: Another thoughts?
Alice: Why don’t we devolop a wider product range? We could expand to other
products under the Hudson brand like trolley-backpacks, briefcases, and shoulder
bags to meet various consumer needs, boosting Hudson’s brand recognition. We
could also price these products lower to increase market reach, boost sales and
generate higher profits for the company.
Lyn: I really like this strategy. Product line extension will help Hudson reach
more customer segments, both male and female, from students to office workers.
This keeps flexibility without losing brand image.
Anna: I totally agree with her. The investment in research and development will
be high, but the potential profit from new product lines is huge, especially if we
target multiple market segments. The most important thing to do is to put the
brand message first.
Bob: From a manufacturing perspective, many existing production lines can be
reused to create new products without investing too much in machinery.
Lyn: Yeah. This also helps us reduce the risk of relying on a few specific products
and expands our market reach. Offering a wide range of products can increase
customer retention by meeting more of their needs.
Anna: Oh, but if we sell at a low price, will it dilute the premium image that our
company is building? Moreover, this approach could lead to over-saturation,
confusing customers about the brand’s core identity.
Alice: No, we still keep the high-end product lines and just expand to increase
profits. Not to mention, if we offer a reasonable price, this will help us attract not
only high-end customers but also customers with a fairly average income.
Anna: Oh not bad
Bob: Very good. Keep the high-end products and at the same time expand the
product range at reasonable prices to ensure revenue and increase market share.
This is a strategy worth developing, right?
Everyone else: Yes
Bob: Okay, so we will choose the "Develop a wider product range" strategy to
expand sales in the European market. Does anyone have any comments?
Everyone else: No
Bob: Ok. So let's move on to the next strategy
Anna: If we have diversified into the above products, why not expand into higher-
end items such as watches and jewelry? That way, Hudson could retain its luxury
brand core and partner with Swiss manufacturers to enhance credibility and appeal
for customers valuing refinement, quality and personal value. Above all, they
often have high profit margins. High-quality watches and jewelry can be
considered investments, attracting affluent customers.
Alice: No, entering the luxury jewelry and watch market can be expensive and
requires a lot of expertise and the target market for luxury items is relatively small,
limiting potential sales volume. In addition, the high competition in the luxury
watch and jewelry industry can make it difficult for Hudson to establish its
position.
Lyn: Not to mention that our Hudson brand is still not well known in the
European market. If we attack such products, it will be difficult to compete with
famous and long-standing brands of watches and jewelry in this market. And we
have no experience in this field, working with a new manufacturer would be risky
and could result in us losing control of the brand.
Bob: Yes, this is quite a risky move. If successful, the profit will be huge and
conversely, if we fail, we will suffer very heavy losses.
Alice: I think Hudson should focus on its core strengths instead of venturing into a
new field.
Everyone else: Yes. I agree with you
Bob: OK. Let’s move on another one.
Lyn: Hmm… Using e-commerce as a sales strategy? This seems like a good
option. First, expanding into e-commerce could allow Hudson to reach a global
customers, connecting with a larger customer base. Second, this approach could
reduce overhead costs related to physical stores such as rent or building space and
drive higher profits. Finally, competitive online prices could attract price-sensitive
customers and make shopping more convenient.
Alice: Great. By this way, customers can easily see our products and make
purchases via everyday devices like phones and computers without visiting
physical stores. At the same time, e-commerce platforms will provide us with
valuable data about customer behavior and preferences and offer products that
match that customer's needs.
Lyn: Yes, I see this as the least risky strategy and can be implemented in parallel
with other strategie
Anna: Not bad, the potential profits from online sales can be very high, especially
if we apply effective marketing strategies. However, this strategy has some
challenges, such as high competition, requiring a significant digital marketing
investment to stand out. Also, managing logistics and customer service for global
consumers and building trust with online customers, especially for high-value
items is also a significant challenge for our brand.
Bob: Nevertheless, it’s worth trying. We need to step out of our comfort zone and
embrace new approaches. Right?
Everyone else: Yes
Bob: Ok. Besides the above strategies, does anyone have any other strategies?
Everyone else: No
Bob: Alright. Each strategy has its own advantages and disadvantages. The best
choice depend on Hudson’s long-term goals, target audience, and available
resources. In this meeting, we considered the pros and cons of all 6 strategies and I
think the 2 strategies that received the most consensus were “Develop a wider
product range” and “E-commerce Sales Growth” strategies. I will plan these two
strategies in detail and share them with everyone in the upcoming meeting. That
concludes today’s meeting. Thank you everyone for a very productive meeting.
Goodbye everyone.
Everyone else: (Say goodbye)