MM04
International Marketing
Assignment No.I
Assignment Code: 2013MM04A1 Last Date of Submission: 15th April 2013
Maximum Marks:100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A
Ques. 1 How does the Uruguay round differ from Tokyo Round of GATT?
Ques. 2 How can a nation achieve competitive advantage?
Ques. 3 Why is transnational approach to strategy development important in certain global
markets?
Ques. 4 What are the differences among companies at the international, multinational, global
and transnational stages of development? Find examples of companies that fit the
characteristic of each of these types
Section-B
Case Study : Market Research in Developing Countries
Nestle demonstrates how understanding the market can lead to success. It successfully positioned its Maggi brand noodles as a between-meal snack food rather than a pasta meal item. Nestle also caters to the Indian preference for local brands; although Nescafe is the company’s flagship global coffee brand in many countries, Nestle created chicory-flavored Sunrise especially for the Indian market. Nestle managers have also learned that the 20 million wealthy households in its core target market exhibit a value orientation traditionally associated with mass markets. Nestle has responded by keeping prices down: more than half of the products it sells in India cost less than 25 rupees – about 70 cents.
The tobacco industry is also learning about India. Sixty percent of Indian men smoke, although many prefer the native bidi, which is hand-rolled with a leaf outer wrapper rather than paper. As Darryl Jayson, economist at the Tobacco Merchants Association (TMA), noted recently, “Many companies, local and international, are hoping that these bidi-smokers move up to cigarettes as India becomes more affluent.” Although Western brands enjoy high levels of awareness, the government taxes make up 70 percent of the retail price of a single pack. As a result, premium European brands such as Dunhill cost $4 per pack, whereas Indian brands from Indian Tobacco Company and other local manufacturers sell for 50 cent to $1.50. Taste is an issue facing American tobacco companies; Indian smokers prefer Virginia blend tobaccos, while the typical American smoke uses oriental and burley blends. The TMA’s Jayson says, “Indian smokers perceive U.S. Cigarettes as roasted and harsh. I think it is very difficult to change the smoking habits of the Indians. It may take up to 20 years to bring about the change.”
Questions
1. Is there a potential market for international brands of Tobacco in India. If yes, suggest global marketing strategies to succeed in India.
2. What criteria should global marketers consider when making product design decisions?
MM04
International Marketing
Assignment No.II
Assignment Code: 2013MM04A2 Last Date of Submission: 15th May 2013
Maximum Marks:100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A
Ques. 1 (a) Define a “global brand” giving examples. Describe in detail the factors affecting the
accelerating pace of globalization of brands.
(b) Differentiate between a global product and a global brand give suitable example in
support of your answer.
Ques. 2 Discuss various modes of transportation of goods in international business.
Ques. 3 a) Discuss the Japanese distribution structure?
b) What are the General and Retail Patterns adopted in International Marketing?
c) What are the factors, which affect choice of channels in International Market?
Ques. 4 Explain each of the following export documents:-
a) Bill of lading
b) Consular Invoice
c) Commercial invoice
d) Insurance certificate.
Section-B
Case Study : Pricing Reeboks in India
When Reebok, the world’s number two athletic shoe company, decided to enter Indian in 1995, it faced several basic marketing challenges. For one thing, Reebok was creating a market from scratch. Upscale sports shoes were virtually unknown, and the most expensive sneakers available at the time cost 1,000 rupees (about $23). Reebok officials also had to select a market entry mode. The decision was made to subcontract with four local suppliers, one of which became a joint venture partner. Only a limited number of distribution options were available. Bata, a Canadian company with global operations, was the sole shoe retailer with national coverage. American style sports stores were unknown in India. To reinforce Reebok’s high-tech brand image, company officials decided to establish their own retail infrastructure. There were two other crucial pieces of the puzzle: product and price. Should Reebok create a line of mass-market shoes specifically for India and priced at Rs 1,000? The alternative was to offer the same designs sold in other parts of the world and price them at Rs 2,500 ($58), a figure that represented the equivalent of a month’s salary for a junior civil servant.
In the end, Reebok decided to offer Indian consumers about 60 models chosen from the company’s global offerings. The decision was based in part of a desire to sustain Reebok’s brand image of high quality. Management realized that the decision would limit the size of the market. Despite estimates that India’s “middle class” was comprised of 300 million people, the number who could afford premium-priced products was estimated to be about 30 million. Reebok’s least expensive shoes were priced at about Rs 2,000 per pair; for about the same amount of money, a farmer could buy a dairy cow or a homeowner could buy a new refrigerator. Nevertheless, customer response was very favorable, especially among middle-class youths. As Muktesh Pant, Reebok’s regional manager, noted, “For Rs 2,000 to Rs 3,000, people feel they can really make a statement. It.s cheaper than buying a new watch, for instance, if you want to make a splash at a party. And though our higher-priced shoes put us a competition with things like refrigerators and cows, the upside is that we’re new being treated as a prestigious brand.”
Reebok was also pleased to discover that demand was strong outside of key metropolitan markets such as Delhi, Mumbai, and Chennai. The cost of living is lower in small towns, so consumers have more disposable income to spend. In addition, inhabitants of rural areas have had less opportunity to travel abroad and therefore have not had the opportunity shop for trendy brands elsewhere. Reebok now has about 100 branded franchise stores that sell about 300,000 pairs of athletic shoes in India each year. The company exports twice that number of Indian-made shoes to Europe and the United States. As pant observed, “At first we were embarrassed about our pricing. But it has ended up serving us well.”
Questions
1. What are the three basic factors affecting price in any market? Why did Reebok introduced only the high quality, high price products in Indian market?
2. For consumer products, local income levels are critical in pricing decision. Explain with reference to the above case.
International Marketing
Assignment No.I
Assignment Code: 2013MM04A1 Last Date of Submission: 15th April 2013
Maximum Marks:100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A
Ques. 1 How does the Uruguay round differ from Tokyo Round of GATT?
Ques. 2 How can a nation achieve competitive advantage?
Ques. 3 Why is transnational approach to strategy development important in certain global
markets?
Ques. 4 What are the differences among companies at the international, multinational, global
and transnational stages of development? Find examples of companies that fit the
characteristic of each of these types
Section-B
Case Study : Market Research in Developing Countries
Nestle demonstrates how understanding the market can lead to success. It successfully positioned its Maggi brand noodles as a between-meal snack food rather than a pasta meal item. Nestle also caters to the Indian preference for local brands; although Nescafe is the company’s flagship global coffee brand in many countries, Nestle created chicory-flavored Sunrise especially for the Indian market. Nestle managers have also learned that the 20 million wealthy households in its core target market exhibit a value orientation traditionally associated with mass markets. Nestle has responded by keeping prices down: more than half of the products it sells in India cost less than 25 rupees – about 70 cents.
The tobacco industry is also learning about India. Sixty percent of Indian men smoke, although many prefer the native bidi, which is hand-rolled with a leaf outer wrapper rather than paper. As Darryl Jayson, economist at the Tobacco Merchants Association (TMA), noted recently, “Many companies, local and international, are hoping that these bidi-smokers move up to cigarettes as India becomes more affluent.” Although Western brands enjoy high levels of awareness, the government taxes make up 70 percent of the retail price of a single pack. As a result, premium European brands such as Dunhill cost $4 per pack, whereas Indian brands from Indian Tobacco Company and other local manufacturers sell for 50 cent to $1.50. Taste is an issue facing American tobacco companies; Indian smokers prefer Virginia blend tobaccos, while the typical American smoke uses oriental and burley blends. The TMA’s Jayson says, “Indian smokers perceive U.S. Cigarettes as roasted and harsh. I think it is very difficult to change the smoking habits of the Indians. It may take up to 20 years to bring about the change.”
Questions
1. Is there a potential market for international brands of Tobacco in India. If yes, suggest global marketing strategies to succeed in India.
2. What criteria should global marketers consider when making product design decisions?
MM04
International Marketing
Assignment No.II
Assignment Code: 2013MM04A2 Last Date of Submission: 15th May 2013
Maximum Marks:100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A
Ques. 1 (a) Define a “global brand” giving examples. Describe in detail the factors affecting the
accelerating pace of globalization of brands.
(b) Differentiate between a global product and a global brand give suitable example in
support of your answer.
Ques. 2 Discuss various modes of transportation of goods in international business.
Ques. 3 a) Discuss the Japanese distribution structure?
b) What are the General and Retail Patterns adopted in International Marketing?
c) What are the factors, which affect choice of channels in International Market?
Ques. 4 Explain each of the following export documents:-
a) Bill of lading
b) Consular Invoice
c) Commercial invoice
d) Insurance certificate.
Section-B
Case Study : Pricing Reeboks in India
When Reebok, the world’s number two athletic shoe company, decided to enter Indian in 1995, it faced several basic marketing challenges. For one thing, Reebok was creating a market from scratch. Upscale sports shoes were virtually unknown, and the most expensive sneakers available at the time cost 1,000 rupees (about $23). Reebok officials also had to select a market entry mode. The decision was made to subcontract with four local suppliers, one of which became a joint venture partner. Only a limited number of distribution options were available. Bata, a Canadian company with global operations, was the sole shoe retailer with national coverage. American style sports stores were unknown in India. To reinforce Reebok’s high-tech brand image, company officials decided to establish their own retail infrastructure. There were two other crucial pieces of the puzzle: product and price. Should Reebok create a line of mass-market shoes specifically for India and priced at Rs 1,000? The alternative was to offer the same designs sold in other parts of the world and price them at Rs 2,500 ($58), a figure that represented the equivalent of a month’s salary for a junior civil servant.
In the end, Reebok decided to offer Indian consumers about 60 models chosen from the company’s global offerings. The decision was based in part of a desire to sustain Reebok’s brand image of high quality. Management realized that the decision would limit the size of the market. Despite estimates that India’s “middle class” was comprised of 300 million people, the number who could afford premium-priced products was estimated to be about 30 million. Reebok’s least expensive shoes were priced at about Rs 2,000 per pair; for about the same amount of money, a farmer could buy a dairy cow or a homeowner could buy a new refrigerator. Nevertheless, customer response was very favorable, especially among middle-class youths. As Muktesh Pant, Reebok’s regional manager, noted, “For Rs 2,000 to Rs 3,000, people feel they can really make a statement. It.s cheaper than buying a new watch, for instance, if you want to make a splash at a party. And though our higher-priced shoes put us a competition with things like refrigerators and cows, the upside is that we’re new being treated as a prestigious brand.”
Reebok was also pleased to discover that demand was strong outside of key metropolitan markets such as Delhi, Mumbai, and Chennai. The cost of living is lower in small towns, so consumers have more disposable income to spend. In addition, inhabitants of rural areas have had less opportunity to travel abroad and therefore have not had the opportunity shop for trendy brands elsewhere. Reebok now has about 100 branded franchise stores that sell about 300,000 pairs of athletic shoes in India each year. The company exports twice that number of Indian-made shoes to Europe and the United States. As pant observed, “At first we were embarrassed about our pricing. But it has ended up serving us well.”
Questions
1. What are the three basic factors affecting price in any market? Why did Reebok introduced only the high quality, high price products in Indian market?
2. For consumer products, local income levels are critical in pricing decision. Explain with reference to the above case.
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