Global Marketing– Born local, Act globalKristianstad, the 17th November, 2010By: Svend Hollensen, svend@sam.sdu.dk- Value ...
Hollensen, Global Marketing 5e, © Pearson Education 2010
It nearly came to the situation that the US Government evenhad to print new 1 dollar notes with a desperate GeorgeWashingt...
Hollensen, Global Marketing 5e, © Pearson Education 2010
Hollensen, Global Marketing 5e, © Pearson Education 2010
The new world order (US loosing itsleadership in the world economy) –provides new opportunities foremerging regions to pos...
Hollensen, Global Marketing 5e, © Pearson Education 2010
Hollensen, Global Marketing 5e, © Pearson Education 2010
Hollensen, Global Marketing 5e, © Pearson Education 2010
Hollensen, Global Marketing 5e, © Pearson Education 2010
Some background informationabout myself, my university and mybooks          Hollensen, Global Marketing 5e, © Pearson Educ...
SDU       Here I liveHollensen, Global Marketing 5e, © Pearson Education 2010
University of Southern Denmark          Sønderborg        Hollensen, Global Marketing 5e, © Pearson Education 2010
Svend HollensenGLOBAL MARKETING               5th Edition
This was how the                                                           authorship came                                ...
in 1998                   2001                                                in 2004                                     ...
2nd ed. came in                                                           2010 on PearsonHollensen, Global Marketing 5e, ©...
Came out in Jan. 2009Hollensen, Global Marketing 5e, © Pearson Education 2010
Hollensen, Global Marketing 5e, © Pearson Education 2010
Hollensen, Global Marketing 5e, © Pearson Education 2010
Hollensen, Global Marketing 5e, © Pearson Education 2010
Definition of GlobalizationReflects the trend of firms buying, developing, producing, selling and distributing products an...
Globalization-from the micro-perspectiveThe Value chain       Hollensen, Global Marketing 5e, © Pearson Education 2010
Hollensen, Global Marketing 5e, © Pearson Education 2010
Hollensen, Global Marketing 5e, © Pearson Education 2010
Hollensen, Global Marketing 5e, © Pearson Education 2010
Value chain of focal firm:             Support functions: - Firm infrastructure                                - Human Res...
Suppliers:                                                                                Customers: Second tier:         ...
Hollensen, Global Marketing 5e, © Pearson Education 2010
Exhibit 1.4: PocoyoZinkia Entertain-                     Granada                                  Pocoyo sold toment, Madr...
Value netHow to create value in cooperationwith other actors in the value net     Hollensen, Global Marketing 5e, © Pearso...
Vertical NetworkThe Value Net:                      SuppliersHorizontal Network                                          F...
Vertical                                                                                 cooperation:                     ...
+                               =    Hollensen, Global Marketing 5e, © Pearson Education 2010
+= Successful alliance      Hollensen, Global Marketing 5e, © Pearson Education 2010
Hollensen, Global Marketing 5e, © Pearson Education 2010
What is Irn-Bru?Irn-Bru is:-A sparkling mixed fruit flavour soft drink enjoyed byteenagers and young adults, with a unique...
What is Irn-Bru?Irn-Bru is:-A sparkling mixed fruit flavour soft drink enjoyed byteenagers and young adults, with a unique...
Internationalisation Process:       Passive, reactive exporting                                  ↓       Active, proactive...
PEPSI BOTTLING GROUPPARTNERSHIP                        IN          RUSSIA Hollensen, Global Marketing 5e, © Pearson Educat...
Production of Irn-Bru started in February 2002                  Hollensen, Global Marketing 5e, © Pearson Education 2010
 Irn-Bru adds to PBG in-store presence Helps “shut” Coke out               Hollensen, Global Marketing 5e, © Pearson Edu...
IRN-BRU : RUSSIA        Hollensen, Global Marketing 5e, © Pearson Education 2010
Hollensen, Global Marketing 5e, © Pearson Education 2010
Global Marketing StrategiesGlobalization                                                                                 L...
Svend HollensenGLOBAL MARKETING               5th Edition
Hollensen, Global Marketing 5e, © Pearson Education 2010
Comparison of differentBusiness models       Hollensen, Global Marketing 5e, © Pearson Education 2010
SportingRubber, Fabric       Shoe                                                         Goods,and Other Raw    Manufactu...
Hollensen, Global Marketing 5e, © Pearson Education 2010
Hollensen, Global Marketing 5e, © Pearson Education 2010
Brand Pyramid: Women‘s underwear (lingerie)        High price/(‘higher’ perceived             value)                      ...
Entry Suppliers:         Manufacturer:                 modes:               Retail:                       Consumers:Main T...
Hollensen, Global Marketing 5e, © Pearson Education 2010
Hollensen, Global Marketing 5e, © Pearson Education 2010
Hollensen, Global Marketing 5e, © Pearson Education 2010
Hollensen, Global Marketing 5e, © Pearson Education 2010
Hollensen, Global Marketing 5e, © Pearson Education 2010
Hollensen, Global Marketing 5e, © Pearson Education 2010
Most fashionable                                        Items with longer                 items (own                      ...
Hollensen, Global Marketing 5e, © Pearson Education 2010
Hollensen, Global Marketing 5e, © Pearson Education 2010
Hollensen, Global Marketing 5e, © Pearson Education 2010
Hollensen, Global Marketing 5e, © Pearson Education 2010
Masterfranchisor -BBW - Louis,Missouri , USA                                               Master franchisee -            ...
Hvad er lighedspunkterne rent marketingmæssigt mellem de to produkter?                     Hollensen, Global Marketing 5e,...
Cause-related marketing           &         CSR    Hollensen, Global Marketing 5e, © Pearson Education 2010
Hollensen, Global Marketing 5e, © Pearson Education 2010
Hollensen, Global Marketing 5e, © Pearson Education 2010
Provide awareness for Aldo shoes                                      by making the campaign / tag    YouthAIDS           ...
Blue Ocean StrategyRed Oceans: Tough head-to-head competition in mature industries often results in bloody red oceans of ...
The three main competitors:Microsoft Xbox 360:                 Sony Playstation 3:                          Nintentendo Wi...
Hollensen, Global Marketing 5e, © Pearson Education 2010
Relative performance level -                                                                                              ...
2005                      2006                          2007            2008                 Mill. Units             Mill....
Global Marketing of:    Hollensen, Global Marketing 5e, © Pearson Education 2010
Global Marketing StrategiesGlobalization                                                                                 L...
Hollensen, Global Marketing 5e, © Pearson Education 2010
of „Global Marketing‟                                                                     Russia – pure translationEurope:...
Entering is difficult   Hollensen, Global Marketing 5e, © Pearson Education 2010
Two                    contrastsResult:                 .. in Middle East,          Hollensen, Global Marketing 5e, © Pear...
But then something happened ….. Alecturer in Teheran presented thebook to Iranian students.And today         is quite popu...
Textbooks for courses in ”International Marketing”:• Fragmented market• No clear market leader• Intensive competition on t...
Textbooks for courses in ”International Marketing”:High degree of competition between textbooks on publisher level:       ...
Textbooks for courses in ”International Marketing”:High degree of internal competition:                            Hollens...
What to do as a supplier with small relative power?                                  Business schools = end customersSuppl...
A specific product strategyfor a specific market      Hollensen, Global Marketing 5e, © Pearson Education 2010
Value chain configuration for emerging and developing countries (1)Problem today:Today companies in developing and emergin...
The Banana Split Model            Plantation workers 2%              Plantation owners 10%                                ...
Nike       Hollensen, Global Marketing 5e, © Pearson Education 2010
Value chain configuration for emerging and developing countries (2)Challenge tomorrow for companies in developing and emer...
How do I contribute to letting the developingcountries get access to the 80% of the valuechain:-Writing a Pearson textbook...
Born Global Hollensen, Global Marketing 5e, © Pearson Education 2010
’Born Globals’Hollensen, Global Marketing 5e, © Pearson Education 2010
The three founders (from the left):                                           Frank Thygesen, Håkan Löfholm and Johnny    ...
The product ’One Café’ and how it is used           Hollensen, Global Marketing 5e, © Pearson Education 2010
Cooperation                                          Distributors /      Retail     End-con-               (Fair Trade    ...
Global AccountManagement(GAM) Hollensen, Global Marketing 5e, © Pearson Education 2010
Global Account Management (GAM)            Supplier HQ                                   GAM = Management of supplier’s   ...
Consolidation takes place everywhere and not only in the pharmaceutical industry ……..  Kilde: www.ims-global.com/.../ news...
Hollensen, Global Marketing 5e, © Pearson Education 2010
Hollensen, Global Marketing 5e, © Pearson Education 2010
Hollensen, Global Marketing 5e, © Pearson Education 2010
GAM relationship with relative high customer power:                          Supplier HQ                                  ...
Production unitsHollensen, Global Marketing 5e, © Pearson Education 2010
Thank you for your attention      Hollensen, Global Marketing 5e, © Pearson Education 2010
Hollensen, Global Marketing 5e, © Pearson Education 2010
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Pp Presentation Kristianstad 17.11.2010

  1. 1. Global Marketing– Born local, Act globalKristianstad, the 17th November, 2010By: Svend Hollensen, svend@sam.sdu.dk- Value Chain - Value net- Internationalization of the value chain- ”Born Global” model- CSR: YouthAids business model – Cause Marketing- GAM – Global Account Management (IKEA and Licentia)Cases e.g. - Nike vs Triumph vs. Bjørn Borg - Zara vs. Gap vs. H&M - GAM: IKEA and Licentia 5e, © Pearson Education 2010 Hollensen, Global Marketing
  2. 2. Hollensen, Global Marketing 5e, © Pearson Education 2010
  3. 3. It nearly came to the situation that the US Government evenhad to print new 1 dollar notes with a desperate GeorgeWashington ……… Hollensen, Global Marketing 5e, © Pearson Education 2010
  4. 4. Hollensen, Global Marketing 5e, © Pearson Education 2010
  5. 5. Hollensen, Global Marketing 5e, © Pearson Education 2010
  6. 6. The new world order (US loosing itsleadership in the world economy) –provides new opportunities foremerging regions to positionthemselves in the long-termdevelopment of the world economy Hollensen, Global Marketing 5e, © Pearson Education 2010
  7. 7. Hollensen, Global Marketing 5e, © Pearson Education 2010
  8. 8. Hollensen, Global Marketing 5e, © Pearson Education 2010
  9. 9. Hollensen, Global Marketing 5e, © Pearson Education 2010
  10. 10. Hollensen, Global Marketing 5e, © Pearson Education 2010
  11. 11. Some background informationabout myself, my university and mybooks Hollensen, Global Marketing 5e, © Pearson Education 2010
  12. 12. SDU Here I liveHollensen, Global Marketing 5e, © Pearson Education 2010
  13. 13. University of Southern Denmark Sønderborg Hollensen, Global Marketing 5e, © Pearson Education 2010
  14. 14. Svend HollensenGLOBAL MARKETING 5th Edition
  15. 15. This was how the authorship came up: First edition came in 1988:Hollensen, Global Marketing 5e, © Pearson Education 2010
  16. 16. in 1998 2001 in 2004 4th ed. cam 5th ed. came in 2007 in 2010 Hollensen, Global Marketing 5e, © Pearson Education 2010
  17. 17. 2nd ed. came in 2010 on PearsonHollensen, Global Marketing 5e, © Pearson Education 2010
  18. 18. Came out in Jan. 2009Hollensen, Global Marketing 5e, © Pearson Education 2010
  19. 19. Hollensen, Global Marketing 5e, © Pearson Education 2010
  20. 20. Hollensen, Global Marketing 5e, © Pearson Education 2010
  21. 21. Hollensen, Global Marketing 5e, © Pearson Education 2010
  22. 22. Definition of GlobalizationReflects the trend of firms buying, developing, producing, selling and distributing products and services in most countries and regions of the world Hollensen, Global Marketing 5e, © Pearson Education 2010
  23. 23. Globalization-from the micro-perspectiveThe Value chain Hollensen, Global Marketing 5e, © Pearson Education 2010
  24. 24. Hollensen, Global Marketing 5e, © Pearson Education 2010
  25. 25. Hollensen, Global Marketing 5e, © Pearson Education 2010
  26. 26. Hollensen, Global Marketing 5e, © Pearson Education 2010
  27. 27. Value chain of focal firm: Support functions: - Firm infrastructure - Human Ressource Man. R&D Production Marketing Sales and services Cus-Suppliers - Sales force tomers - Product dev. - Prod. capaciy - Marketing info. - Logistics - Design - Component parts - Product - Terrms of sales - Price - Petents - Assembly - Inventory - Distribution - Product features - Material flow - Communication - Payment - Engineering - Quality Man. -Customer - Branding service Support functions: - Technology development - Procurement (buying)Upstream Downstream Hollensen, Global Marketing 5e, © Pearson Education 2010
  28. 28. Suppliers: Customers: Second tier: First tier: First tier: Second tier: Oil / Refiner Focal firm: Mass Merchan- Chemicals / Plast parts disers: Plastic molder Braun (Gillette) Marks&Spencer Sainsbury Tesco, B&Q etc. Nylon prod. / End - consumers Brushhead Electrical retail DuPont chains: Dixons Curry Comet Aluminium Electric motor Prod Electrical Independent wholesaler electrical stores Chemicals / Rechargeable Producer of Battery pack NiCd batteries Internet: Amazon.com Wires / Plugs / Dentist.net Rubber / Metal Timer / chip / etc. / Wire producer Printed circuit ’Internal’ value chain: B2B B2B B2B B2B B2CUpstream Hollensen, Global Marketing 5e, © Pearson Education 2010 Downstream
  29. 29. Hollensen, Global Marketing 5e, © Pearson Education 2010
  30. 30. Exhibit 1.4: PocoyoZinkia Entertain- Granada Pocoyo sold toment, Madrid Ventures, UK 100 countries (beginning of 2007)Upstream Downstream Hollensen, Global Marketing 5e, © Pearson Education 2010
  31. 31. Value netHow to create value in cooperationwith other actors in the value net Hollensen, Global Marketing 5e, © Pearson Education 2010
  32. 32. Vertical NetworkThe Value Net: SuppliersHorizontal Network Focal Complemen- Competitors tors firm Customers Hollensen, Global Marketing 5e, © Pearson Education 2010
  33. 33. Vertical cooperation: Suppliers (Upstream)Horizontal cooperation: Competitors: e.g. Focal firm: Complementors: e.g. Braun (Gillette) Possible cooperation with Philips about developing Possible cooperation about new technologies expanding the total product in electrical tooth brushing, programme in oral care e.g. software-development Customers (Downstream) Hollensen, Global Marketing 5e, © Pearson Education 2010
  34. 34. + = Hollensen, Global Marketing 5e, © Pearson Education 2010
  35. 35. += Successful alliance Hollensen, Global Marketing 5e, © Pearson Education 2010
  36. 36. Hollensen, Global Marketing 5e, © Pearson Education 2010
  37. 37. What is Irn-Bru?Irn-Bru is:-A sparkling mixed fruit flavour soft drink enjoyed byteenagers and young adults, with a unique and indescribabletaste that delivers a truly alternative refreshment experience. Hollensen, Global Marketing 5e, © Pearson Education 2010
  38. 38. What is Irn-Bru?Irn-Bru is:-A sparkling mixed fruit flavour soft drink enjoyed byteenagers and young adults, with a unique and indescribabletaste that delivers a truly alternative refreshment experience. Hollensen, Global Marketing 5e, © Pearson Education 2010
  39. 39. Internationalisation Process: Passive, reactive exporting ↓ Active, proactive exporting ↓ Local production Barr 1980s → Barr 2009 Hollensen, Global Marketing 5e, © Pearson Education 2010
  40. 40. PEPSI BOTTLING GROUPPARTNERSHIP IN RUSSIA Hollensen, Global Marketing 5e, © Pearson Education 2010
  41. 41. Production of Irn-Bru started in February 2002 Hollensen, Global Marketing 5e, © Pearson Education 2010
  42. 42.  Irn-Bru adds to PBG in-store presence Helps “shut” Coke out Hollensen, Global Marketing 5e, © Pearson Education 2010
  43. 43. IRN-BRU : RUSSIA Hollensen, Global Marketing 5e, © Pearson Education 2010
  44. 44. Hollensen, Global Marketing 5e, © Pearson Education 2010
  45. 45. Global Marketing StrategiesGlobalization Localization(Standardization) (Differentiation) 100% 100% Global Low-cost Production and Culturally Close Selling to Consumer Flexible Response Global roll-out of Concepts / High speed GLOCAL to local customer needs Regional and local market Low penetration complexity 09-12-2010 45 Hollensen, Global Marketing 5e, © Pearson Education 2010
  46. 46. Svend HollensenGLOBAL MARKETING 5th Edition
  47. 47. Hollensen, Global Marketing 5e, © Pearson Education 2010
  48. 48. Comparison of differentBusiness models Hollensen, Global Marketing 5e, © Pearson Education 2010
  49. 49. SportingRubber, Fabric Shoe Goods,and Other Raw Manufacturing Marketing Departments Materials and Assembly and Shoe Stores Customers Online Catalog Product and OtherDevelopment Retailing Nike Branded Stores Customer Needs/Wants Feedback Hollensen, Global Marketing 5e, © Pearson Education 2010
  50. 50. Hollensen, Global Marketing 5e, © Pearson Education 2010
  51. 51. Hollensen, Global Marketing 5e, © Pearson Education 2010
  52. 52. Brand Pyramid: Women‘s underwear (lingerie) High price/(‘higher’ perceived value) High-end market Agent Provocateur Chantelle, La Senza Victoria‘s Secret , Marie Jo Mid-market Marks & Spencer National brands (e.g. Femilet , DK) Low-end market Low price/ Asda Tesco Sainsbury H&M Private Labels(‘lower’ perceived value) Hollensen, Global Marketing 5e, © Pearson Education 2010
  53. 53. Entry Suppliers: Manufacturer: modes: Retail: Consumers:Main Triumph 50 subsidiaries +production sites: distribution centres around the world Bangko Many k Independent different stores countries (approx. 40,000 and Morocc partner stores) o Many Triumph Own stores different China (1,620 in total) International countries (HQ in Switzerland) India Many Other Clothing different Store chains countries (supplied with private labels) from Triumph) others In total: 27 production centres Hollensen, Global Marketing 5e, © Pearson Education 2010
  54. 54. Hollensen, Global Marketing 5e, © Pearson Education 2010
  55. 55. Hollensen, Global Marketing 5e, © Pearson Education 2010
  56. 56. Hollensen, Global Marketing 5e, © Pearson Education 2010
  57. 57. Hollensen, Global Marketing 5e, © Pearson Education 2010
  58. 58. Hollensen, Global Marketing 5e, © Pearson Education 2010
  59. 59. Hollensen, Global Marketing 5e, © Pearson Education 2010
  60. 60. Most fashionable Items with longer items (own shelf life, e.g. basic T- production): shirts (out-sourced - Own factories in Spain production ): Suppliers: an Portugal (app. 50% Low-cost producers in: Info- of all supplies) Turkey, India, Bangla feed- - Rest of Europe (app. Desh and China back 25% of all supplies) 75% 25% In the customer Inditex feed-back chain, Zara stores act as ZARA: customer information gathering Info- terminals, that will feedback bring back the information to Zara HQ in order to create new designs, that will 1500 ZARA stores around the world be produced in the factories Info- feedbackEnd-customers: Millions of end-customers around the world Hollensen, Global Marketing 5e, © Pearson Education 2010
  61. 61. Hollensen, Global Marketing 5e, © Pearson Education 2010
  62. 62. Hollensen, Global Marketing 5e, © Pearson Education 2010
  63. 63. Hollensen, Global Marketing 5e, © Pearson Education 2010
  64. 64. Hollensen, Global Marketing 5e, © Pearson Education 2010
  65. 65. Masterfranchisor -BBW - Louis,Missouri , USA Master franchisee - Choose Holding ApS Owns franchise Rights to DK, S, N , D Choose Choose Choose Choose Denmark Sweden Norway Germany ApS AB AS GmbH 8 stores 1 store 2 stores 4 stores Sold in 2008 to one of the founders of Choose Holding ApS Hollensen, Global Marketing 5e, © Pearson Education 2010
  66. 66. Hvad er lighedspunkterne rent marketingmæssigt mellem de to produkter? Hollensen, Global Marketing 5e, © Pearson Education 2010
  67. 67. Cause-related marketing & CSR Hollensen, Global Marketing 5e, © Pearson Education 2010
  68. 68. Hollensen, Global Marketing 5e, © Pearson Education 2010
  69. 69. Hollensen, Global Marketing 5e, © Pearson Education 2010
  70. 70. Provide awareness for Aldo shoes by making the campaign / tag YouthAIDS trendy among celebrities ALDO Shoes(A non-profit organizationoperating in more than 60countries to stop spred of HIV (Canadian owned shoe retail/ AIDS) chain with 1,000 stores operating in 37 countries USD 3.5 million for the sales of around the world) nearly 1 million tags in Aldo stores Hollensen, Global Marketing 5e, © Pearson Education 2010
  71. 71. Blue Ocean StrategyRed Oceans: Tough head-to-head competition in mature industries often results in bloody red oceans of rivals fighting over a shrinking profit poolBlue Oceans: The unserved market, where competirtors are not yet structured and market is relatively unknown. Here it is about avoiding head-to-head competition Hollensen, Global Marketing 5e, © Pearson Education 2010
  72. 72. The three main competitors:Microsoft Xbox 360: Sony Playstation 3: Nintentendo Wii: Hollensen, Global Marketing 5e, © Pearson Education 2010
  73. 73. Hollensen, Global Marketing 5e, © Pearson Education 2010
  74. 74. Relative performance level - perceived by customers 10 0 2 4 6 8 Pr ice CP St U or Po ag we e r Hi (h ar gh d de di sk fin ) itio n Vi de o Co nn ec DV tiv D ity M (o ot nl io in n e) co nt Fa Un ro m iq lla bl ily ue e or ga ie m nt Factors of Competition ed ep la (la rg y e pu bl ic)Hollensen, Global Marketing 5e, © Pearson Education 2010 Value curve - Wii vs. Xbox and SP3 Nintendo Wii Sony Playstation 3 Microsoft Xbox 360
  75. 75. 2005 2006 2007 2008 Mill. Units Mill. Units Mill. Units Mill. Units % % % %Sony:PS2 16.8 11.7 8.6 7,4PS3 - 1.2 7.2 10,3Total 16.8 12.9 15.8 17,7 69% 53% 40% 33%Microsoft:Xbox 3.6 0.7 - -Xbox 360 1.2 6.8 7.8 11,2Total 4.8 7.5 7.8 11,2 20% 31% 20% 21%Nintendo:GameCube 2.7 1.0 - -Wii - 3.0 15.5 24,8Total 2.7 4.0 15.5 24,8 11% 16% 40% 46%Total 24.3 24.4 39.1 53,7 100% 100% 100% 100% Hollensen, Global Marketing 5e, © Pearson Education 2010
  76. 76. Global Marketing of: Hollensen, Global Marketing 5e, © Pearson Education 2010
  77. 77. Global Marketing StrategiesGlobalization Localization(Standardization) (Differentiation) 100% 100% Global Low-cost Production and Culturally Close Selling to Consumer Flexible Response Global roll-out of Concepts / High speed GLOCAL to local customer needs Regional and local market Low penetration complexity 09-12-2010 77 Hollensen, Global Marketing 5e, © Pearson Education 2010
  78. 78. Hollensen, Global Marketing 5e, © Pearson Education 2010
  79. 79. of „Global Marketing‟ Russia – pure translationEurope: India – Co-authorship Latin America – Co-authorsh USA: “Competitive” alliance Hollensen, Global Marketing 5e, © Pearson Education 2010
  80. 80. Entering is difficult Hollensen, Global Marketing 5e, © Pearson Education 2010
  81. 81. Two contrastsResult: .. in Middle East, Hollensen, Global Marketing 5e, © Pearson Education 2010
  82. 82. But then something happened ….. Alecturer in Teheran presented thebook to Iranian students.And today is quite popular”underground” literature amongIranian business students Hollensen, Global Marketing 5e, © Pearson Education 2010
  83. 83. Textbooks for courses in ”International Marketing”:• Fragmented market• No clear market leader• Intensive competition on the publisher level Hollensen, Global Marketing 5e, © Pearson Education 2010
  84. 84. Textbooks for courses in ”International Marketing”:High degree of competition between textbooks on publisher level: and many more .. Hollensen, Global Marketing 5e, © Pearson Education 2010
  85. 85. Textbooks for courses in ”International Marketing”:High degree of internal competition: Hollensen, Global Marketing 5e, © Pearson Education 2010
  86. 86. What to do as a supplier with small relative power? Business schools = end customersSupplier: Customer: Reps in UKR&D Production & Marketing (home) Lecturers StudentsProduct development GAM -relation Reps in Benelux Lecturers Students Reps in Lecturers Students Skandinavia HQ in UK (London) Reps in Eastern Lecturers Students = The wold’s biggest Europe publisher within business literature for uni. courses Reps in Africa and Lecturers Students Asia Reps in North Lecturers Students America Hollensen, Global Marketing 5e, © Pearson Education 2010
  87. 87. A specific product strategyfor a specific market Hollensen, Global Marketing 5e, © Pearson Education 2010
  88. 88. Value chain configuration for emerging and developing countries (1)Problem today:Today companies in developing and emerging countries often onlyget access to 15-20 % of the total added in the value chain from rawmaterials to final productDeveloping /EmergingCountries: Consume e.g. in WE 15-20% 80-85% Raw Final materiels Product Total value added from developing / emerging Countries to end end-consumer Hollensen, Global Marketing 5e, © Pearson Education 2010
  89. 89. The Banana Split Model Plantation workers 2% Plantation owners 10% Retailers 40%Transnational companies 31%(includes 5% EU tariff) Ripeners / Distributors 17%There is a high degree of overlap between the transnational companies and the ripeners / distributors:Four of the five transnationals are also involved with ripening: Chiquita, Dole, Del Monte Hollensen, Global Marketing 5e, © Pearson Education 2010
  90. 90. Nike Hollensen, Global Marketing 5e, © Pearson Education 2010
  91. 91. Value chain configuration for emerging and developing countries (2)Challenge tomorrow for companies in developing and emergingcountries:To get access also to the remaining 80-85 % of the total added in thevalue chain from raw materials to final productDeveloping /EmergingCountries: Consumer e.g. in WE: 15-20% 80-85% Raw Final materiels Product Total value added from developing / emerging Countries to end end-consumer Hollensen, Global Marketing 5e, © Pearson Education 2010
  92. 92. How do I contribute to letting the developingcountries get access to the 80% of the valuechain:-Writing a Pearson textbook, about lifting theircompetence level in Global Marketing & SupplyChain Management- Contributing to the development of business inthese countries, e.g. a B2B Programme(Udenrigsministeriet) about development of a e-commerce system in Ghana Hollensen, Global Marketing 5e, © Pearson Education 2010
  93. 93. Born Global Hollensen, Global Marketing 5e, © Pearson Education 2010
  94. 94. ’Born Globals’Hollensen, Global Marketing 5e, © Pearson Education 2010
  95. 95. The three founders (from the left): Frank Thygesen, Håkan Löfholm and Johnny RagazzoHollensen, Global Marketing 5e, © Pearson Education 2010
  96. 96. The product ’One Café’ and how it is used Hollensen, Global Marketing 5e, © Pearson Education 2010
  97. 97. Cooperation Distributors / Retail End-con- (Fair Trade Wholesalers Outlets sumers: concept) (Super- Markets) In-home Roasters (e.g. Kraft Cafes /Small coffee Foods, Sara Restaurantsbean farmers Lee, Nestlé, P&G, Tchibo) Out-of- Airlines home Middlemen (brokers, Hotels importers) ? ? ? A new player appears: One Café (Uganda) Searching for the right international partners and customers Hollensen, Global Marketing 5e, © Pearson Education 2010
  98. 98. Global AccountManagement(GAM) Hollensen, Global Marketing 5e, © Pearson Education 2010
  99. 99. Global Account Management (GAM) Supplier HQ GAM = Management of supplier’s relations to large powerful customers (GAs) with worldwide operations Customer (GA) HQ Hollensen, Global Marketing 5e, © Pearson Education 2010
  100. 100. Consolidation takes place everywhere and not only in the pharmaceutical industry …….. Kilde: www.ims-global.com/.../ news_story_010425.htm Hollensen, Global Marketing 5e, © Pearson Education 2010
  101. 101. Hollensen, Global Marketing 5e, © Pearson Education 2010
  102. 102. Hollensen, Global Marketing 5e, © Pearson Education 2010
  103. 103. Hollensen, Global Marketing 5e, © Pearson Education 2010
  104. 104. GAM relationship with relative high customer power: Supplier HQ Traditional HQ-HQ negotiations with decentralized distributionDC logistics DC logistics Customer (GA) HQ Country Country Country …….. Country A B C N Hollensen, Global Marketing 5e, © Pearson Education 2010
  105. 105. Production unitsHollensen, Global Marketing 5e, © Pearson Education 2010
  106. 106. Thank you for your attention Hollensen, Global Marketing 5e, © Pearson Education 2010
  107. 107. Hollensen, Global Marketing 5e, © Pearson Education 2010

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