International Marketing - GSM 527
Spring 2006
Rev.: 1/9/2006
Saturday, 10:00 am- 1:00
Professor: Maurice Gervais
Office Hours: Before/after classes or by appointment. Tel. 617 521 3807
Home telephone: (781) 271 1288 - Email: maurice.gervais@simmond.edu
Objectives: This course will address the challenges specific to marketing products and services in foreign
markets. It is assumed that you have a basic knowledge of the marketing functions.
Today, all firms have to compete on a global scale and must adapt to an ever-changing environment. The
tasks of the Marketing Manager are much more complex when the enterprise operates in several countries
where the needs and preferences of customers are different.
The Marketing Manager must learn new skills to detect the emerging customers needs, to adapt the products
to local requirements, to enter or exit foreign markets, to implement a worldwide organization, which
motivates local managers with different cultures while insuring the proper flow of information.
We will analyze the alternatives to enter foreign markets, the benefits and pitfalls of global marketing, the
challenges of managing products that address fast changing customer needs, keeping in mind that the Sales
and Marketing Manager is directly accountable for the revenues and profits of the enterprise.
One of the subjects of our discussions will be the difficult choice between the centralization of the Marketing
activities at the headquarters to benefit from economies of scale and consistency, and the larger freedom to
be provided to the local Management to adapt to local needs.
This course will address these challenges with contemporary readings and business cases that will take
place in the major regions of the world and will cover different business sectors such as retail, consumer
products, industrial products, services and high tech industries. Your analysis and the class discussions of
business cases will prepare you to make recommendations and decisions based on your own judgment.
Course Material:
The course-pack contains most of the mandatory readings and all business cases. To reduce the
price of the course-pack, the Harvard Business Review articles that are part of the mandatory
readings are not in the course pack but are available online and are on reserve at the GSM library.
Optional readings referred in the class assignment page are available either online or at GSM library.
It is highly recommended that you read them.
Requirements:
A.
You are expected to read the assigned material prior to the beginning of the class. You should have a
solid understanding of the case and have developed your own analysis and recommendation for actions. The
value for you of the class discussions is directly related to your preparation and the recommendations you
arrived at before coming to the class. You are encouraged to form small study groups to discuss the readings
and share your opinions on the cases prior to coming to class.
B.
It is your responsibility to participate to the class discussions. Sharing your personal experience and
debating others’ opinion make the analysis of the business situation more effective and more interesting for
you and for the other students.
C.
You will prepare a written report of three cases that you select among the cases listed in the course
outline. Papers should be 4 to 5 pages (typed and double-spaced) The papers are due at the beginning of
class on the day the case is due to be discussed, no exception. If you submit more than three case reports,
the top three grades will be used to compute your final grade.
To guide you in the development of your written report, the analysis of each case and the identification of the
main issues, you will find for each case several questions listed at the end of this syllabus. These questions
are also meant to be the starting point for the discussion during the class. It is particularly critical that your
report includes your detailed recommendations to the management of the firm under study. These
recommendations carry the highest weight in your grade.
Generally, the questions includes the following components:
1 - An analysis of the firm, its performance and the competitive environment,
2 - The identification and a description of the main issues,
3 - The identification of alternative solutions followed by a brief discussion of their respective benefits. You
should consider broad alternatives beyond the firm current practices.
4 - Your recommendations of the appropriate solution and course of actions for its implementation.
D.
Foreign students or students with a personal business experience of a foreign country will be able to
replace one business report by making a 30 minutes presentation to the class of the business conditions and
practices in their country. They will provide copies of the slides they use to support their presentation.
Instructor approval must be obtained on the subject by February 7.
E.
I encourage you to contact me at any time to discuss the issues of the cases as well as any problem
you encounter. I will be delighted to review and advise you on plans for future career.
When you know that you will be missing a class, please let me know by sending an email.
Grading:
% of total grade
Three written case analysis, each case:
30%**
Individual participation to class discussion
10%
** For Foreign students, one class presentation on the business situation in their country would replace one
case report.
Course Outline and Assignments
Oct. 9, 2005
Jan 7
The Global Environment
Reading:
The Geography of Competition and Strategy
Case:
Philips versus Matsushita
Optional reading
Global strategy: a factor of Japanese Success
HBS
HBS
G. Yip
Jan 14
The Globalization of Markets
Reading:
The Globalization of Markets
on line HBR
Case:
Henkel: Global Branding in the European Markets
HBS
Optional reading
The lure of Global Branding
online HBR
Jan 28
Designing Global Strategies
Reading:
What is a Global Manager?
online C. Bartlett
Case:
BRL Hardy: Globalizing an Australian wine company
HBS
Optional Reading
Managing in the Euro Zone
online HBR
Feb 4
Entering a Foreign Market
Reading:
Managing global expansion
Gupta
Case:
Making China Beautiful: Shiseido and the China Market
HBS
Optional Reading
The End of Corporate Imperialism
online C. Prahalad
Feb 11
Managing International Alliances
Reading:
Managing International Alliances
HBS Note
Case:
Neilson International in Mexico (A) Case B in class
HBS
Optional Reading
Seven rules of international distribution
online HBR
Feb 18
Cultures and Marketing
Foreign Students presenting their country business situation
Reading:
National Culture and management
HBS
A Nation apart, From seat to shining sea, US versus us, Therapy of masses
All in a survey of America, Nov. 8. 2003
The Economist on-line
Case:
Monsanto Europe (A)
HBS- Ivey
Mar 4
Marketing Global products
Foreign Student presentations (Cont’d)
Reading:
Can you Standardize Multinational Marketing
online R. Buzzell
Beware of Pitfalls of Global Marketing
online K. Kashani
Case:
Toys R Us Japan (A)
Case B distributed in class HBS
Optional reading
Can sales Promotion go global?
Kashani & Quelsh
March 11
Managing in Developing Countries, outsourcing issues
Reading:
Will you survive the Services Revolution?
online HBR
Case:
Tracmail
HBS
Optional reading
Globalization and its critics, Sept 29, 2001 online The Economist
March 18
Developing Sales and Marketing Plans
Reading:
The return of the Country Manager
Unleash innovation in foreign subsidiaries
Case:
Gillette Indonesia
Optional reading:
Short term results: litmus test for success
Mar 25
online McKinsey quarterly
online HBS
HBS
online R. Yan
Building global organizations
Reading:
Customizing Global Marketing
online J. Quelch & E. Hoff
Case:
Unilever’s Butter-Beater: Innovation & global diversity
HBS
Optional Reading
Assessing Foreign Business Practices
HBS
Case Study Guidelines
Aug 28, 2005
Jan 7
Philips and Matsushita
1. How did Philips evolve and become a leading consumer electronics company in the postwar
era? What distinctive competences/incompetencies did they build?
2. What was the organization model that Matsushita implemented? How did they succeed in
displacing Philips as No.1?
3. What were the organization model that Philips originally introduced, its strengths and
weaknesses?
4. What do you think of the changes that Management of each company made to date - the
objectives, the implementation, their impact? Why is the change so hard for both of them?
5. What form of organization would you recommend to the CEO’s of both corporations to be
profitable in the 21st Century?
Jan 14
Henkel: Global Branding in European Markets
1. What factors favor international brand harmonization and which ones favor brand
differentiation?
2. Why are Unilever and P&G harmonizing their brand portfolio internationally? What benefits
are they aiming to achieve?
3. Is it a strategic necessity for Henkel to follow suit – Are they in the same situation as their
competitors?
4. What are the potential losses and gains from introducing the Persil brand in Italy
and Spain?
5. What brand strategy should Henkel follow in Italy and Spain?
Jan 28
BRL Hardy: Globalizing an Australian wine company
1. How successful are BRL Hardy corporation and its European subsidiary? How do you
account for BRL Hardy’s international results for the period 1990-1997
2. What is the source of tension between Carson and Davies? Identify the different
organizational concepts underlying the conflict. Do you agree with the way Millar is handling
the situation?
3. Should Millar agree to Carson’s proposal to launch D’istinto?
4. Would you recommend to Carson to introduce Kelly’s Revenge in Europe? Why?
5. What recommendations would you make to Millar to facilitate the decision process
between the HQ and the European management?
Feb 4
Making China Beautiful: Shiseido and the Chinese market
1- What is a beauty product? Why do people buy beauty products? What are the
obstacles to globalizing cosmetics? How “global” are the beauty products?
2- What strategies did Shiseido use to expand around the world? Assess Shiseido
operations and results.
3- What are Shiseido plans for China? Assess the opportunities for Shiseido and risks
in China?
4- What should be the corporate priorities for Shiseido in and outside China?
Feb 11
Neilson in Mexico
1. Compare the business, market and competitive environment in Canada and Mexico for
Neilson. What are the key differences between the markets and the competitive environment?
What issues do they raise for Neilson entering the Mexican market?
2. Analyze the various strategic options that Neilson has to enter Mexico. What are the pros
and cons fro each alternative.
3. What are the pros and cons regarding PepsiCo proposal? Which partner do you
recommend to Nielson Management for entering Mexico? Why?
4.What coordinating mechanisms should Neilson implement with its partner to insure close
cooperation from the beginning and throughout the relationship? Be complete and specific.
Feb 18
Monsanto Europe
1. Who are the constituents involved in the acceptance of new GM products? What the
arguments used by the proponents and the opponents of Roundup Ready crops?
2. What are Monsanto corporate objectives, strategies and practices? What pressure does it
create in reaching short term goals?
3. Why is Monsanto running into so much opposition in Europe?
4. What factors determine the rate of development and acceptance of new technologies in
different societies/cultures?
5. Analyze the advertising campaign that is described at the end of the case. What are the
major themes? Do they address the key issues raised by the opponents? Will it succeed?
6. What would you recommend Monsanto to do to change the situation in Europe?
March 4
Toys R Us Japan
1. What are the characteristics of the Japanese market & distribution?
2. What are the characteristics of Toys R Us business model and the reasons of their
success in the US?
3. Is Japan a good market for Toys R Us? Develop the pros and cons. Are they likely to
succeed? Why?
4. Has Toys R Us chosen the best entry strategy for the Japanese market? Has it chosen the
right partner?
5. What are your recommendations to insure a successful penetration of the Japanese
market?
March 11
Tracmail
1. Briefly analyze the status and changes in the industry that Tracmail is in.
2. What are the benefits and opportunities for Tracmail as well as the issues associated with
the proposed joint venture?
3. What is the profitability and growth rate of the proposed JV? How financially attractive is
this opportunity? Use exhibits and information of pages 5, 7 and 8
4. Considering the long-term (2 to 3 years) direction that Cooper wants for his company,
weight the pros (what can go right) and cons (what can go wrong) of signing the contract
with GTS? What actions can Cooper take to increase the chance of things going right and
insure that the joint venture, if signed, would be satisfactory and profitable?
5. Should Cooper accept the joint venture with GTS? Why and why not?
6. What action plan would you recommend to Cooper for establishing a direct sales force in
the US? Would you recommend to Cooper to enter the US market on his own and why?
March 18
Gillette Indonesia
The case is related to the decision to increase or not the proposed 1996 sales plan.
Note: Replace on page 6 second paragraph: “price increases (20%)” by “20% increase
due to product mix change”.
1. What are the markets for each of the three main categories of shaving products shown in
exhibit 2? What actions can Allan undertake to increase the demand for each category?
2. Analyze the differences between the 1995 results and the 1996 plan in term of
unit sales, profit, and revenue by category of shaving products. (See Exhibit 2 & 3)
3. Would you qualify the 1996 plan proposed by Allan of timid, aggressive or even risky?
4. What considerations should Allan keep in mind when assessing the request of his superior
to increase the volume by 25%? What are the consequences of each alternative?
4. Should Allan commit to higher numbers as his manager recommends? Justify. How
should Allan present his decisions to his superior?
March 25
Unilever’s butter-beater
1. What is your assessment of the current status of Krona product?
2. What is your understanding of the exhibits 4, 5 and 6?
3. What are the fundamental reasons why other country organizations did not embrace the
Krona concept with enthusiasm? Go beyond the obvious differences of customer taste.
4. What changes in the product development process and organization structure would you
recommend to avoid similar difficulties in the development and introduction of future new
global products? What motivation tools would you put in place? What is the role of top
management in such a transformation?