Deck 17: Marketing Globally

Question 1

The chapter explains five international marketing orientations. Which one most applies to Tommy Hilfiger? Explain why.

Answer 1

TF Company:
TF is a U Country's company. It produces products such as clothing, watches, perfumes and more. The company was initially started as a men clothing stores later, it expanded its market by concentrating on female products and other lifestyle merchandises. The firm positioned its brand as an exclusive and luxury brand.
The marketing orientations that will be applicable to TF Company's are given below:
TF Company should focus on the differences that are not similar amid the target marketplace from dissimilar cultural locale that may have an impact on the effectiveness of drive. The marketing orientation of "Polycentric approach" will be suitable for the TF Company. Polycentric approach signifies that any organization having this orientation provides the identical importance or value to the local market of each nation, since there is distinctiveness of each marketplace, and its necessity to be tackled in a distinctive manner.
The reason for the suitability of polycentric approach to TF Company is that campaigns of "Global Marketing" are vital to this company, with a concentration on relevancy, consistency, and driving altitude across product zones and product lines.
TF Company involves the customers by the campaigns of marketing that have a significant concentration on the initiatives of digital promotions and innovative social media. Company has the gatherings of garments and further products of women and men.
If the company concentrates equally on every nation or its targeted marketplace, then the company can be victorious. Polycentric approach signifies that company examines or studies the cultural background of every marketplace prior to commence or market its product in a specific nation. From knowing the preferences of its target marketplace, company can build its products as per the tendencies of its marketplace. Additionally, this will add the variety to the products of company.

Question 2

The chapter explains five elements in the marketing mix (product, pricing, promotion, branding, and distribution). In which of these have Tommy Hilfiger's operating practices been the most standardized globally? Explain why this has been possible and desirable.

Answer 2

TF Company:
TF is a U Country's company. It produces goods such as clothing, watches, perfumes and more. The company was initially started as a men clothing stores later, it expanded its market by concentrating on female products and other lifestyle merchandises. The company positioned its brand as an exclusive and luxury brand.
TF Company's operating practices that have been the most standardized globally are given below:
TF Company's promotion and branding strategies have been the most constant globally. This was essential as a method to convince stores to stock the goods and to convince customers to want it.
Because of this approach, TF Company has become a universal brand with strong distribution network and recognition in over 90 countries and more than 1000 retail stores all through the countries such as NA, EU, SA, and AP. Hence, these data proves that promotions and branding is the most effective approaches followed by TF Company.

Question 3

What advantages might Danone receive from the Grameen Danone joint venture?

Answer 3

DN Company:
DN Company is a multinational food product corporation. The company has certain business lines such as early life nutrition, waters, medical nutrition, and fresh dairy products.
GD Company:
GD Company is a social business enterprise, which was formed to offer children with several nutrients that are typically not found from their diet in rural BG Country.
DN Company and GD Company formed a joint venture. The objective was to fill nutrition deficits of children in BG Country.
The following is the advantage of DN obtained from GD's joint venture:
Before the joint venture with GM Company, DN had no operations in BG Country. Prior to the joint venture, DN promoted most of its products at high-end consumers.
The demand for these products has been maturing in wealthier countries, which have been DN's traditional markets. The joint venture enabled them to learn about customers and ways of operating in these less than developed countries.
Hence, the joint venture between DN and GD Company has not only benefitted the companies, but also several children in BG Country who had started getting rich nutrition foods.

Question 4

How much do you think Danone's decision to set up a social business was motivated by wanting to be socially responsible versus believing the move would help its performance? Does the answer to this make any difference?

Question 5

What marketing pitfalls might Danone face if it tries to duplicate its Bangladesh experience to serve BoP customers in other countries?

Question 6

Assume a company, such as Danone, wishes eventually to serve all income segments within a country. What advantages and disadvantages might it encounter by first serving the BoP? How might it later deal with any disadvantages?

Question 7

If Danone were to add products to sell to the BoP, which of its products would be the best candidates? Why?

Question 8

Since establishment of the Grameen Danone Foods social business, the number of social businesses worldwide has grown so much that there is now an annual global summit in Wolfsburg, Germany. Are there types of companies that might not be good candidates to establish social businesses? If so, what are they and why?

Question 9

In 2010, Bangladeshi Prime Minister Sheikh Hasina said that Grameen had been "sucking money out of the people after giving them loans. There has been no improvement in the lifestyle of the poor so far. They were just used as pawns to get more aid." In response, Yunus resigned from the bank, saying that he did not want to distract from its activities. Evaluate the Prime Minister's statement. How might Yunus's resignation affect the future of the Grameen Danone Foods JV?

Question 10

Can you think of any other MNEs that can collaborate successfully with the Grameen Foundation and help solve specific problems in Bangladesh? How can they do this?