“France’s Unlikely Import: Weight Loss Centers” (Bloomberg Businessweek, January 12, 2012) provides an example of a cultural trend – growing obesity in France — and one firm’s adaptation to a new culture. The article also explains how another U.S. import — fast food (McDonalds and Pizza Hut have experienced growth in the country) helped France put on that extra weight. Jenny Craig has adapted its approach to French consumer behavior and palette. I know we just had an example of international product adaptation, but this one differs and covers a service and good.
Internet entrepreneurs in Vietnam are figuring out how to overcome challenges posed by the country’s infrastructure. Among Vietnam’s 88 million people, there is growing interest in the convenience of online shopping. There are now more than two dozen Vietnamese sites copying Groupon’s “deal-of-the-day” concept. These companies adapted the strategy used in more developed countries. So for example, few Vietnamese consumers have credit cards or PayPal style accounts. To over come this, at least one of the Groupon copycats NhomMua, relies on a team of more than 100 moped-driving couriers that deliver vouchers directly to consumers and then collect cash. Read more in this Bloomberg Businessweek article, “Vietnam’s Dot-Com Boom” (January 19, 2012). Also posted at Learn the 4 Ps.
The examples here might work well when you cover Place, retail, Price, or Promotion and want to provide an example of how a concept is adapted in international markets.
It is nice to have examples from around the world — especially when they are good examples. This short video describes a campaign by Russian window maker Rehau. The advertising told Russians how their poor quality windows let heat escape — it was like throwing money out the window. The ads show money flying out the window, but Rehau then literally threw money out the window, which generated lots of publicity and media coverage. This video describes the program. Just in time for winter weather, this could be a ice example to use for publicity, promotion, or international marketing.
Caterpillar, Deere/Hitachi, and Komatsu own the market for heavy construction equipment – together accounting for 82% market share for excavators weighing at least eight metric tons. A new kid is trying break in. Chinese construction equipment maker Luogong has signed up one of its first dealers in the U.S. with Syracuse, NY based Stephenson Equipment. Breaking into the U.S. market will likely be a long-term proposition for Luogong as most customers in this market prefer a proven record of reliability and dealers nearby with spare parts.
This article, “China Treads on New Turf” (Wall Street Journal, August 16, 2011, non-subscribers may need to click here) could be used in a number of different places in the introductory marketing course. There is a four minute video with the article, but it is kind of dry. This case raises issues about organizational buying when you think about whether customers will buy from an unknown upstart — though the 15-20% lower price might attract some buyers. It might be interesting to discuss what types of customers would be the best target market for Liugong. It also provides a great example about the importance of channels of distribution — particularly as a firm moves into a foreign market. You could even outline Luogong’s marketing strategy – target, price, product, place, and promotion decisions – based on the article. Also posted at Learn the 4 Ps.
Finally a great B2B example we can share. Good B2B examples are just hard to find. And this one comes from Brazil — so it is international, too.
Problem: A printer in a big city has tons of competition — how can they get their customers’ attention & interest?
Solution: Check out what Brazil’s ArtCenter did to get the attention of a advertising agencies in Sao Paulo. The creativity showed that they understood their customer as well. Another fun example to show on the first day of class perhaps — or when you are talking about promotion and want to show an unusual B2B example of direct marketing in an international context.
We all know how difficult it can be to change consumer behavior. Try selling razors in India, where only half of men shave at home (the other half shave at barbers — and then not everyday). Is this a threat or an opportunity? P&G India saw this as an opportunity — hundreds of thousands of men who were not using its product.
So last year P&G launched its “Women Against Lazy Stubble” campaign — see TV commercial below for one of the early ads. The campaign reflects subtle changes in P&G’s marketing strategy under new CEO Bob McDonald which is described in “Why Procter & Gamble Needs To Shave More Indians” (Bloomberg Businessweek, June 9, 2011).
The article and television ad (you can find more ads in the campaign by searching YouTube) could make a great example to use in a number of different class sessions. For example, you could start a class session on consumer behavior by giving your students shaving data from the article and then ask how P&G could encourage more Indian men to shave at home. The case might also work to show how consumer behavior differs around the world — or in international marketing or advertising and promotion.
As one of the world’s fastest growing economies, Brazil is a country our students should learn about. Here we have a great combination of a video and article on Brazil — with a video showing a clever promotion to make customers aware that they can buy on credit. Then, an article about potential problems for Brazil’s economy as more consumers use credit.
Brazil might want to learn from the experiences the United States has had with easy credit. Apparently the Brazilian government is concerned — but many firms know that easy credit brings in customers. A recent Businessweek article, “Brazil’s New Middle Class Goes on a Spree” (May 12, 2011), describes how easy access to credit appeals to many Brazilians. Unfortunately many of these consumers don’t understand what they are getting into with the sky high interest rates they are paying. Brazil’s government is putting in some controls, as it fears credit problems might drag down the economy.
You might start a discussion with the clever and seemingly innocuous video below. The short (0:54) video describes a campaign by Brazilian retailer Magazineluiza which targets elderly Brazilian consumers and informs them about credit through a crossword puzzle. After showing this in class, you could discuss the pros and cons of credit in an economy like Brazil’s. The article provides a nice background for your discussion.
This combination could work well in discussing international, ethics, public policy, promotion, and pricing.
Here is a nice case study you could show in class as an example of creative promotion. The Swedish Post wanted to increase awareness and educate its customers on one of its products — pre-stamped parcels that allowed them to send almost anything overnight with the green boxes. The clever campaign generated online buzz and awareness across Sweden. Also posted at Learn the 4 Ps.
Volkswagen’s global market share is about 11% — but it sits at only 3% in the world’s largest auto market — the United States. Volksagen’s managers hope to change that, so they are re-doubling marketing efforts. This article, “Volkswagen Rediscovers America” (Bloomberg Businessweek, May 19, 2011), offers some insights into its strategy — but mostly gives a few interesting nuggets of information. For example, I was surprised to read that as compared to its European counterpart, the U.S. Passat has more legroom, larger control buttons, and a better air conditioning system. And the U.S. customer gets these extras for for a price of about $8000 courtesy of lower U.S. wages and simplified product design. VW has just opened its first U.S. manufacturing plant since 1988.
The article offers some examples that can be used when you teach international marketing (product adaptation) and the local factory turns a weakness into a strength.
VW’s 2011 Super Bowl commercial (“The Force” see below) was one of the most popular — though I must confess I was not a fan. While I found the ad cute, I didn’t think it said anything relevant about the brand.
Tupperware has been having great success in emerging markets — and in slowing mature economies like France where sales grew 17% last quarter and 19% in 2010. This article, “In France, Tupperware Finds a Market” (Bloomberg Businessweek, May 5, 2011) describes some of the reasons for Tupperware’s success. A higher end product line and changes in the traditional Tupperware party have helped the firm appeal better to a younger target market. One of the bestsellers in France (and in the U.S.) is a $139 vegetable steamer (see picture to the left). Also posted at Learn the 4 Ps.
“France’s Unlikely Import: Weight Loss Centers” (Bloomberg Businessweek, January 12, 2012) provides an example of a cultural trend – growing obesity in France — and one firm’s adaptation to a new culture. The article also explains how another U.S. import — fast food (McDonalds and Pizza Hut have experienced growth in the country) helped France put on that extra weight. Jenny Craig has adapted its approach to French consumer behavior and palette. I know we just had an example of international product adaptation, but this one differs and covers a service and good.
