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Similar to Global Marketing - PP Presentation Kristianstad 17.11.2010
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Global Marketing - PP Presentation Kristianstad 17.11.2010
- 1. Global Marketing
– Born local, Act global
Kristianstad, the 17th November, 2010
By: 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
- 3. It nearly came to the situation that the US Government even
had to print new 1 dollar notes with a desperate George
Washington ………
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 6. The new world order (US loosing its
leadership in the world economy) –
provides new opportunities for
emerging regions to position
themselves in the long-term
development of the world economy
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 12. SDU
Here I live
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 15. This was how the
authorship came
up:
First edition came
in 1988:
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 16. in 1998 2001 in 2004
4th ed. cam
5th ed. came in 2007
in 2010
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 17. 2nd ed. came in
2010 on Pearson
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 18. Came out in Jan. 2009
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 22. Definition of Globalization
Reflects 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
- 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. 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 B2C
Upstream Hollensen, Global Marketing 5e, © Pearson Education 2010 Downstream
- 30. Exhibit 1.4: Pocoyo
Zinkia Entertain- Granada Pocoyo sold to
ment, Madrid Ventures, UK 100 countries
(beginning of 2007)
Upstream Downstream
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 31. Value net
How to create value in cooperation
with other actors in the value net
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 32. Vertical Network
The Value Net: Suppliers
Horizontal Network
Focal Complemen-
Competitors tors
firm
Customers
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 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. + =
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 37. What is Irn-Bru?
Irn-Bru is:-
A sparkling mixed fruit flavour soft drink enjoyed by
teenagers and young adults, with a unique and indescribable
taste that delivers a truly alternative refreshment experience.
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 38. What is Irn-Bru?
Irn-Bru is:-
A sparkling mixed fruit flavour soft drink enjoyed by
teenagers and young adults, with a unique and indescribable
taste that delivers a truly alternative refreshment experience.
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 39. Internationalisation Process:
Passive, reactive exporting
↓
Active, proactive exporting
↓
Local production
Barr 1980s → Barr 2009
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 41. Production of Irn-Bru started in February 2002
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 42. Irn-Bru adds to PBG in-store presence
Helps “shut” Coke out
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 45. Global Marketing Strategies
Globalization 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
- 49. Sporting
Rubber, Fabric Shoe Goods,
and Other Raw Manufacturing Marketing Departments
Materials and Assembly and Shoe
Stores
Customers
Online Catalog
Product
and Other
Development
Retailing
Nike Branded
Stores
Customer Needs/Wants Feedback
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 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. 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
- 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-
feedback
End-customers:
Millions of end-customers around the world
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 65. Master
franchisor -
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. Hvad er lighedspunkterne rent marketingmæssigt mellem de to produkter?
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 70. Provide awareness for Aldo shoes
by making the campaign / tag
YouthAIDS trendy among celebrities
ALDO Shoes
(A non-profit organization
operating in more than 60
countries 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. 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. The three main competitors:
Microsoft Xbox 360: Sony Playstation 3: Nintentendo Wii:
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 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. 2005 2006 2007 2008
Mill. Units Mill. Units Mill. Units Mill. Units
% % % %
Sony:
PS2 16.8 11.7 8.6 7,4
PS3 - 1.2 7.2 10,3
Total 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 11,2
Total 4.8 7.5 7.8 11,2
20% 31% 20% 21%
Nintendo:
GameCube 2.7 1.0 - -
Wii - 3.0 15.5 24,8
Total 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
- 77. Global Marketing Strategies
Globalization 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
- 79. of „Global Marketing‟
Russia – pure translation
Europe:
India – Co-authorship
Latin America – Co-authorsh
USA: “Competitive” alliance
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 81. Two
contrasts
Result: .. in Middle East,
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 82. But then something happened ….. A
lecturer in Teheran presented the
book to Iranian students.
And today is quite popular
”underground” literature among
Iranian business students
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 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. 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. Textbooks for courses in ”International Marketing”:
High degree of internal competition:
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 86. What to do as a supplier with small relative power? Business schools = end customers
Supplier: Customer:
Reps in UK
R&D Production & Marketing (home)
Lecturers Students
Product 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. A specific product strategy
for a specific market
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 88. Value chain configuration for emerging and developing countries (1)
Problem today:
Today companies in developing and emerging countries often only
get access to 15-20 % of the total added in the value chain from raw
materials to final product
Developing /
Emerging
Countries:
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. 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. Nike
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 91. Value chain configuration for emerging and developing countries (2)
Challenge tomorrow for companies in developing and emerging
countries:
To get access also to the remaining 80-85 % of the total added in the
value chain from raw materials to final product
Developing /
Emerging
Countries:
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. How do I contribute to letting the developing
countries get access to the 80% of the value
chain:
-Writing a Pearson textbook, about lifting their
competence level in Global Marketing & Supply
Chain Management
- Contributing to the development of business in
these countries, e.g. a B2B Programme
(Udenrigsministeriet) about development of a e-
commerce system in Ghana
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 95. The three founders (from the left):
Frank Thygesen, Håkan Löfholm and Johnny
Ragazzo
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 96. The product ’One Café’ and how it is used
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 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 Restaurants
bean 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
- 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. 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
- 104. GAM relationship with relative high customer power:
Supplier HQ
Traditional HQ-HQ negotiations
with decentralized distribution
DC logistics DC logistics
Customer (GA) HQ
Country Country Country …….. Country
A B C N
Hollensen, Global Marketing 5e, © Pearson Education 2010
- 106. Thank you for your attention
Hollensen, Global Marketing 5e, © Pearson Education 2010