International Marketing Lecture 6


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International Marketing - Case studies

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International Marketing Lecture 6

  1. 1. International Marketing 463-441 Case Studies
  2. 2. Bangkok Hospital
  3. 3. Medical tourism worth USD $4 Billion (2012 projection) One of Asia’s fastest growing industries 1.3 million customers to locations like ThailandHealthcare in Thailand 50% cheaper than Singapore, 3 times cheaper than Hong Kong, 5 times cheaper than Europe. Thailand considered “First class service at Third World prices” CBS
  4. 4. Bangkok Hospital one of the best in ThailandFrom 1972 expanded from one hospital to 12 hospitals, 16 specialist Centres and 15 clinics. Eight other facilities in Cambodia, Myanmar and Bangladesh Positioned as the convenient and integrated healthcare solution
  5. 5. Positioning Differentiation Brand IntegrityThailand’s convenient and Wide network of hospitals in the country Integrated healthcare Wide range of healthcare services solutions offered Bra ge Brand n Ima d In nd den B ra tity Bangkok Hospital Positioning-differentiation-brand triangle of Bangkok Hospital
  6. 6. The Extent of International Involvement Internet Exporter Exporting Greater Control Importer And Greater Distributor Risk Direct SalesContractual Arrangements Licensing & Franchising Strategic Alliances Strategic Alliances Joint Ventures Ownership Direct Foreign Investment Cateora & Graham P. 323
  7. 7. Market Targeting Market PositioningMarket Segmentation Develop Measure of Develop positioning Identify bases for segment attractiveness for market segments segmenting the market Select target segment Develop a marketing mixDevelop segment Profiles for each segment Major Segment Variables for Consumer Markets Existing Product Sales, MarketVariables Geographic share, Growth and Decline, RelativeRegion and/or countryetc. World market sizes, City and/or region Density Climate Demographic Age, gender, family size, family life cycle, income, occupations, education, religion, race, generation, nationality Psychographic Social class, lifestyle, personality Behavioural Types of occasions and festivals, existing market cultures, user status, loyalty status, concept readiness stage, attitude towards products
  8. 8. Generic Global Marketing Strategies Strategic Option Comment1 Product and marketing practice Using the same strategies everywhere extension2 Product extension marketing While using the same products everywhere, using adaptation marketing strategies according to local market characteristics3 Product adaptation marketing While using the same marketing strategies, extension adapting the product offering according to market needs4 Dual adaptation Adjusting the product and marketing strategies according to market needs5 Product and market invention Innovating a new product and developing a new marketing strategy for it in each market Keegan, W., Global Marketing Strategies, Prentice Hall, NJ, 1999
  9. 9. Global Product Standardisation Types High (Global Scale) Global Standardisation Modular standardisation Aircraft and multi-brands Microprocessors Elevators Basic Chemicals IT services Pulp and Paper BeerMinimum Size Examples: BASF, Dell, Intel Examples: OTIS, Heinekenof Production Process standardisation Local Adaptation Cement Foods Consulting services Examples: Siam Cement Example: McDonalds, Carrefour Low (Local Scale) Similar Different (Local Segments) (Global Segments) Customers’ Needs Around the World
  10. 10. New Market Entrants, eg: • geographical factors • incumbents resistance • new entrant strategy • routes to market Buyer Power, Competitive Rivalry, Supplier Power, eg: eg: eg: • brand reputation • buyer choice • number and size of • geographical • buyers firms coverageFigure 7. Porter’s Five Forces of Competitive Position size/number • industry size and • product/service level quality • change cost/frequency trends • relationships with • product/service • fixed v variable cost bases customers importance • product/service ranges • bidding • volumes, JIT • differentiation, strategy processes/capabilities scheduling Product/Technolog ion y s Development, t nd ula eg: e g • alternatives price/ Tr Re quality • market distribution changes • fashion and trends • legislative effects
  11. 11. • What segment does the company focus?• Who is the company targeting?• Selling method?• Marketing mix?• Positioning?• Differentiation?• Service?• Process?
  12. 12. Royal Selangor
  13. 13. Commenced in 1885 for local Chinese market and expanded into Other products during British Colonial period, with export to UKNow produces range of prestigious products including medals for Malaysian Grand Prix and Sydney 200 Olympics 1970s export to Singapore, Hong Kong, Australia, and then onto Europe. Now export 20 countries with number of exclusive distributors, including Harrods, Mitsukoshi, Myers and David Jones. Also exclusive shops inAustralian Malls, Canada, Hong Kong, Indonesia, Japan, New Zealand, UAE, Thailand and US. Commissioned designers to create works Develop technology with Australian company to produce feature walls
  14. 14. Positioned as Malaysia’s gift to the World, created wonderful shopping experience With first class service, e-sales via internet. Still hand cast products with some tradition Skilled craftsmen with extensive distribution network
  15. 15. Positioning Differentiation Brand IntegrityThe World’s most innovative Wide range of innovative products Highly skilled craftsmen Pewter crafter Wide distribution networks Bra ge Brand n Ima d In nd den B ra tity Royal Selangor Positioning-differentiation-brand triangle of Royal Selangor
  16. 16. San Miguel
  17. 17. Started in 1890, first official brewery in Spanish occupied Philippines and all of S. E. Asia. Began exporting to Guam, Hong Kong and Shanghai Opened brewery in Hong Kong in 1948 One of the top 20 beer brands in the World Now diversified and produces a wide range of food and beverage products Now manufacture in Vietnam, Indonesia, Thailand, China and Australia Beer accounts for around 75% of the corporation’s profits and 80% of its sales from the Philippines90% beer market share in Philippines, 87% of soft drinks, 60% processed meat And 40% of poultry
  18. 18. In Thailand paid US $100 million for Thai Amarit Own Anker bir in Indonesia Technology through international partnerships Equity injection from Japan’s Kirin Beer Partner in Australia J Boag & Son, put it in premium beer market24% share in China beer market acquiring Guandong Brewery in 94 – Dragon and Valor Bada Baoding Brewery in Northern China – Blue Star 30 different beer labels to suit various tastes
  19. 19. Positioning Differentiation Brand IntegrityThe unofficial beer of the High quality brewing Philippines with Large distribution network World-class quality Bra ge Brand n Ima d In nd den B ra tity San Miguel Positioning-differentiation-brand triangle of San Miguel
  20. 20. Black Canyon
  21. 21. Established in 1993 120 locations in Bangkok and other cities in Thailand Old West cowboy themeShopping malls, airports, hospitals, train stations, convention centres 2002 opened 4 outlets in Malaysia, 4 in Indonesia, one each in Singapore, Myanmar and Cambodia. Also 4 branches in Middle East Full restaurants, mini-restaurants and kiosks Some franchises Buy from King’s project in Chang Mai
  22. 22. Both East and Western Cuisines (different from other chains) Mixed fusion cooking Also bakery Value for money principal Member card system Continues to innovate and reinvent itself
  23. 23. Positioning Differentiation Brand IntegrityFood houses that combine Extensive Western and Asian specialty Wild West name and décor East and West Large chain of outlets Bra ge Brand n Ima d In nd den B ra tity Black Canyon Positioning-differentiation-brand triangle of San Miguel
  24. 24. Kinokuniya
  25. 25. Founded in 1927, a leading chain of bookstores in Japan With 58 domestic and 22 overseas stores Stores that are open and sparse Also on-line sales 1964 expanded over Japan and openedfirst overseas store in San Francisco (to serve Japanese community) Later expanded to other US cities 1983 opened first Asian store in Singapore Then Taiwan, Malaysia, Thailand, Indonesia and Australia Customer service
  26. 26. Sees itself as ‘a service provider of knowledge and the joy of discovery’ Creative local marketing in each country Focus on a number of market segmentsBecause of large range it serves corporate customers different from Others
  27. 27. Positioning Differentiation Brand Integrity Wide categories of booksLeading provider of information and other readings and cultural readings Book buying experience Networks of bookshops Bra ge Brand n Ima d In nd den B ra tity Kinokuniya Positioning-differentiation-brand triangle of San Miguel
  28. 28. Air Asia
  29. 29. No previous experience of running an airline except for; Knowing what budget air travelers want Knowing what makes a business profitable Dominated by traditional full-cost airlines, air transport slump after 9/1, a sector in loss situation and retrenchmentWith changing demands of consumers due to higher incomes became profitable in the first two years Took customers away from trains and buses Now a regional low cost airline Had to overcome regulation
  30. 30. 2004, JV with Shin Corporation to form Thai Air Asia Bought into Awair and formed Indonesian Air Asia Strategy to keep costs low with high aircraft utilisation and fast turnaround rateIncome: airfares, food sales, air cargo, corporate tie ups Motivated workforce Open office to reduce “power-distance” Secondary airports – lower fees and costs Internet sales
  31. 31. Positioning Differentiation Brand Integrity Low cost structureNo frills and fun low cost carrier Fun internal culture Bra ge Brand n Ima d In nd den B ra tity Air Asia Positioning-differentiation-brand triangle of San Miguel