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International Marketing - Case studies
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International Marketing 463-441
Case Studies
Bangkok Hospital
Medical tourism worth USD $4 Billion (2012 projection)
One of Asia’s fastest growing industries
1.3 million customers to locations like Thailand
Healthcare in Thailand 50% cheaper than Singapore, 3 times cheaper thanHong Kong, 5 times cheaper than Europe.
Thailand considered “First class service at Third World prices” CBS
Bangkok Hospital one of the best in Thailand
From 1972 expanded from one hospital to 12 hospitals, 16 specialistCentres and 15 clinics.
Eight other facilities in Cambodia, Myanmar and Bangladesh
Positioned as the convenient and integrated healthcare solution
Bangkok Hospital
Thailand’s convenient andIntegrated healthcare
solutions
Wide network of hospitals in the countryWide range of healthcare services
offered
Positioning Differentiation
Brand
Bra
nd Im
ageB
rand Indentity
Brand Integrity
Positioning-differentiation-brand triangle of Bangkok Hospital
The Extent of International Involvement
Internet
Exporter
Importer
Distributor
Direct Sales
Licensing & Franchising
Strategic Alliances
Joint Ventures
Direct Foreign Investment
Exp
ortin
g
Contractual Arrangements
Strategic Alliances
Ownership
Greater Control
AndGreater
Risk
Cateora & Graham P. 323
Market Segmentation
Identify bases for segmenting the market
Develop segment Profiles
Market Targeting
Develop Measure of segment attractiveness
Select target segment
Market Positioning
Develop positioning for market segments
Develop a marketing mix for each segment
Major Segment Variables for Consumer Markets
Geographic VariablesWorld Region and/or country
City and/or regionDensityClimate
DemographicAge, gender, family size, family life cycle, income, occupations, education, religion, race, generation, nationality
PsychographicSocial class, lifestyle, personality
BehaviouralTypes of occasions and festivals, existing market cultures, user status, loyalty status,
concept readiness stage, attitude towards products
Existing Product Sales, Market share, Growth and Decline,Relative market sizes, etc.
Strategic Option Comment
1 Product and marketing practice extension
Using the same strategies everywhere
2 Product extension marketing adaptation
While using the same products everywhere, using marketing strategies according to local market characteristics
3 Product adaptation marketing extension
While using the same marketing strategies, adapting the product offering according to market needs
4 Dual adaptation Adjusting the product and marketing strategies according to market needs
5 Product and market invention Innovating a new product and developing a new marketing strategy for it in each market
Generic Global Marketing Strategies
Keegan, W., Global Marketing Strategies, Prentice Hall, NJ, 1999
High(Global Scale)
Minimum Size of Production
Low(Local Scale)
Similar(Global Segments)
Different(Local Segments)
Customers’ Needs Around the World
Global Product Standardisation Types
Global StandardisationAircraft
MicroprocessorsBasic ChemicalsPulp and Paper
Examples: BASF, Dell, Intel
Modular standardisation and multi-brands
ElevatorsIT services
Beer
Examples: OTIS, Heineken
Process standardisationCement
Examples: Siam Cement
Local AdaptationFoods
Consulting services
Example: McDonalds, Carrefour
Bu
ye
r P
ow
er, e
g:
buyer choice
buyers size/num
ber
change cost/frequency
product/service im
portance
volumes, JIT
scheduling
Ne
w M
ark
et
En
tran
ts, e
g:
geographical factors
incumbents
resistance
new entrant strategy
routes to market
Com
petitive
Rivalry, eg:
number and size
of firms
industry size and trends
fixed v variable cost bases
product/service ranges
differentiation, strategy
P
rodu
ct/Tech
nolo
gy
Develop
men
t, eg:
alternatives price/quality
market
distribution changes
fashion and trends
legislative effects
Su
pp
lier P
ow
er,
eg
:
brand reputation
geographical coverage
product/service level quality
relationships with
customers
bidding processes/capabilities
Figure 7. Porter’s Five Forces of Competitive Position
Trends
Regulation
• What segment does the company focus?• Who is the company targeting?• Selling method?• Marketing mix?• Positioning?• Differentiation?• Service?• Process?
Royal Selangor
Commenced in 1885 for local Chinese market and expanded into Other products during British Colonial period, with export to UK
Now 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
Positioned as Malaysia’s gift to the World, created wonderful shopping experienceWith first class service, e-sales via internet.
Still hand cast products with some tradition
Skilled craftsmen with extensive distribution network
Royal Selangor
The World’s most innovative Pewter crafter
Wide range of innovative productsHighly skilled craftsmen
Wide distribution networks
Positioning Differentiation
Brand
Bra
nd Im
ageB
rand Indentity
Brand Integrity
Positioning-differentiation-brand triangle of Royal Selangor
San Miguel
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 Philippines
90% beer market share in Philippines, 87% of soft drinks, 60% processed meatAnd 40% of poultry
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 market
24% 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
San Miguel
The unofficial beer of the Philippines with
World-class quality
High quality brewingLarge distribution network
Positioning Differentiation
Brand
Bra
nd Im
ageB
rand Indentity
Brand Integrity
Positioning-differentiation-brand triangle of San Miguel
Black Canyon
Established in 1993
120 locations in Bangkok and other cities in Thailand
Old West cowboy theme
Shopping malls, airports, hospitals, train stations, convention centres2002 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
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
Black Canyon
Food houses that combine East and West
Extensive Western and Asian specialtyWild West name and décor
Large chain of outlets
Positioning Differentiation
Brand
Bra
nd Im
ageB
rand Indentity
Brand Integrity
Positioning-differentiation-brand triangle of San Miguel
Kinokuniya
Founded in 1927, a leading chain of bookstores in JapanWith 58 domestic and 22 overseas stores
Stores that are open and sparseAlso on-line sales
1964 expanded over Japan and opened first 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
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 segments
Because of large range it serves corporate customers different fromOthers
Kinokuniya
Leading provider of information and cultural readings
Wide categories of books and other readings
Book buying experienceNetworks of bookshops
Positioning Differentiation
Brand
Bra
nd Im
ageB
rand Indentity
Brand Integrity
Positioning-differentiation-brand triangle of San Miguel
Air Asia
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 retrenchment
With 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
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 rate
Income: airfares, food sales, air cargo, corporate tie ups
Motivated workforce
Open office to reduce “power-distance”
Secondary airports – lower fees and costs
Internet sales
Air Asia
No frills and fun low cost carrier Low cost structureFun internal culture
Positioning Differentiation
Brand
Bra
nd Im
ageB
rand Indentity
Brand Integrity
Positioning-differentiation-brand triangle of San Miguel
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