CASE THI CUỐI KÌ 1.2 Hunter Boot Ltd: the iconic British brand is moving into exclusive fashion Chapter 1: Global marketing in the firm What are the main reasons for the recent international marketing success of the Hunter Boots? LÝ THUÊTS? • The recent success of Hunter boots was caused by the achievement from its international marketing strategy. + The strategy is focused on famous individuals that promote Hunter boots’. + The company delivered its product image to the consumers minds through global sports events, and this creates a trend in fashionable footwear. + Also, the launching of the special edition with collaboration with famous designers created new value for the company by offering premium products for new target markers, which attracted more and more customers. • Furthermore, by creating consumer values and networking partners, Hunter established its competing firms to boost their sale not only locally but also globally by brand recognition through trade associations and experts in order to grow • Their ability of moving ‘wellies’ into the fashion world • Collaboration with top designers, such as Jimmy Choo • Their effective marketing campaign, using celebrity endorsement to make their boots appear to be the must have item • Ability to identify celebrities wearing Hunter Boots at festivals, rock concerts and more events Recently Hunter has added outerwear (leather footwear and handbags) to their international product range. What are the pros and cons of extending the product range in this way? Should Hunter Boot Ltd. include further products like eyewear and watches? 1.Brand extension is a marketing strategy in which a well known brand uses the same brand name to enter into a totally unrelated product category. It is done to leverage on the existing brand equity. Some marketers argue that since building a brand is costly affair, once you have built a brand you should leverage its value by using the same brand name to other new categories. 2.Line extensions is a marketing strategy in which the scope of the product a brand represents is increased (when you are adding varieties or variations of the same branded product, you are basically doing a line extension). Like brand extension, line extension is also done to leverage on the brand equity by targeting a bigger chunk of the user base. Coke introducing Diet Coke to target the diet conscious people. Pros • Hunter has a strong brand name, and product diversification can help in leveraging the new products • It could reduce the financial risk that is associated with the new product development by leveraging the parent brand name (Hunter) to enhance consumers perception as a result of its core brand equity • It can help Hunter spread their customer base • Helps in enhancing the product portfolio of Hunter by introducing products in the market • It might expand the Hunter shelf space present at retailers • Focus on tradition of the brand • Effective marketing campaign • Moving towards the fashion world Cons • If the new line extension fails, consumers attitudes towards the core brand name (Hunter) and the core products might be damaged • Large competitors • To maintain quality you have to put high cost • If they add more products like eyewear and watches it might be a success for them since as they already are big in the market their brand loyalty is well enough so customers attract toward them. But they need to avoid intra-firm competition. They need to be able to clearly differentiate between products. The products should be similar but different enough that they will not compete with one another as much as they will with the brands of rival companies. Therefore yes they should. CHATGTP: Extending the product range can be a strategic move for a brand, but it also has its pros and cons. Here are some of the potential advantages and disadvantages of Hunter Boots adding outerwear, leather footwear, and handbags to their product range: Pros: ● ● ● Diversification: Adding new product lines allows the brand to diversify its offerings and appeal to a wider audience. Cross-selling: Existing customers who already love the brand's boots may also be interested in purchasing complementary products like outerwear, leather footwear, and handbags. Increased revenue: By offering a wider range of products, Hunter Boots can potentially increase its revenue and market share. Cons: ● ● Brand dilution: Expanding into too many product categories can dilute the brand's identity and weaken its image. Customers may no longer associate Hunter Boots with its iconic boots, but instead, view it as just another fashion brand with a wide range of products. Operational challenges: Introducing new product lines can also present operational challenges, including production and supply chain management issues. ● Cannibalization: The new product lines may cannibalize sales of existing products, leading to a decline in revenue and profitability. As for whether Hunter Boots should include further products like eyewear and watches, it ultimately depends on the brand's overall strategy and market research. Adding new product lines should be a deliberate and well-thought-out decision based on factors such as customer demand, market trends, and the brand's core values and identity. If eyewear and watches align with Hunter Boots' overall brand image and customer base, then it may be worth considering. However, it's important to balance the potential benefits with the risks and operational challenges involved in introducing new products. 2.2 Elvis Presley Enterprises Inc. (EPE): internationalization of a cult icon 1. What are the main motives for the internationalization of EPE? Motives for internationalization can be catogorized to proactive and reactive motives. Proactive motives are those that the firm come up with from their own need, desire. Some examples are profit and growth, managerial urge, technology competence, foreign market opportunities, economies of scale, tax benefit. Reactive motives are those that appear in order to react to a specific situation, events. For example competitive pressure, overproduction, domestic market (small and saturated), proximity to international customers/psychological distance The main reason(s) for Elvis Presley Enterprises' (EPE) internationalization were: creating profit and growth goals for EPE and maintaining Graceland, building global awareness of the late rock icon, building brand awareness and gaining market share in the music industry. Firstly, Elvis Presley's legacy as a music icon has strong global appeal and fan base. Thus, by expanding internationally, the company can tap into new markets and revenue streams. Secondly, globalization and advances in technology (techonology competence) have made it easier for the company to expand their reach globally. Thirdly, the demand for Elvis Presley merchandise and experiences, such as Graceland tours and Elvis-themed events, has increased globally. This creates opportunities for the company to establish new partnerships, collaborations, and licensing deals worldwide. Additionally, expanding internationally helps to strengthen the company's brand and reputation, allowing them to continue promoting the king of rock 'n' roll to new generations of fans. By pursuing internationalization, Elvis Presley Enterprises' aims to preserve and promote the legacy of Elvis Presley while expanding their business operations globally. 2. What can EPE do to maintain a steady income stream from abroad? Elvis Presley Enterprises (EPE) can maintain a steady income stream from abroad by focusing on branding, licensing and tourism. EPE can license merchandise such as T-shirts, posters, albums, and other souvenirs to increase their revenue. Additionally, EPE can partner with other brands for co-branding and promotions of Elvis Presley merchandise. EPE can also leverage the power of digital media to increase their reach and engagement, especially with younger fans. Tourists also play a crucial role in generating income for EPE. Therefore, improving the touring experience around Graceland, Elvis' former home and museum, can attract tourists and generate revenue. Elvis-themed events and activities such as tribute concerts, film festivals, and commemorative exhibitions can attract Elvis fans from around the world. Finally, EPE can explore opportunities to engage with Elvis communities worldwide, collaborating with international Elvis fan clubs and reaching out to fans through social media to increase their global reach and revenue. 3. What are the most obvious assets for further internationalization of EPE? Elvis Presley Enterprises (EPE) has several assets that could aid its further internationalization. Firstly, Elvis Presley is a globally recognized brand name and image, with loyal fans across various countries. EPE could leverage this to expand their reach and generate more revenue through partnerships with companies in different areas of the world. Secondly, EPE could explore opportunities in diverse platforms like music, movies, or even merchandise for varying interests worldwide. Thirdly, the digital arena presents an abundant opportunity for EPE to reach an extensive global audience, utilize social media to promote and sell content, collaborating with influencers and affiliates of regions for a broader reach. Lastly, events and festivals around the globe cater to fans of nostalgic cultural icons like Elvis Presley, and EPE could leverage this opportunity to promote itself, generate brand awareness, and expand its revenue. By tapping into these assets, EPE could advance its brand internationally and broaden its customer base. 6.2 Sauer-Danfoss: which political/economic factors would affect a manufacturer of hydraulic components? 1. Which political and economic factors in the global environment would have the biggest effect on the future global sales of Danfoss Power Solutions’ hydraulic components/systems to: (a) manufacturers of construction and mining equipment (e.g. Caterpillar)? For construction manufacturers some of the most relevant economic factors will be: the general macroeconomic indicators and the general construction activity. The financial situation, infrastructure and interest rates also take a big part in the future global sales of the company. In regard to the political factors, policies like tariffs and different regulations, along with a country’s risks of operations and whether they have non-tariff trade barriers or not, influence the company’s future. (b) manufacturers of agricultural machinery (e.g. John Deere)? For agricultural manufacturers some of the most relevant economic factors will be: the general macroeconomic indicators and the general agricultural activity. The financial situation of the farmers and the number of farmer workers also take a big part in the future global sales of the company. In regard to the political factors, once again, policies like tariffs and different regulations, along with a country’s risks of operations and whether they have non-tariff trade barriers or not, influence the company’s future. In the case of manufacturers of agricultural machinery government subsidies for farmers are also of great importance. 2. What are the biggest problems in forecasting future demand for a subsupplier such as Danfoss Power Solutions? The sales are always dependent on the sales made by their main customers, like John Deere. We will use the bottom-up approach, still we will encounter some problems: keeping in close contact with the company’s main potential clients, the clients’ sales forecasts for their final products, and the fact that the final sales forecast should be revised according to the potential customers’ stock level. Moreover, the uncertainty of the global market and changes in consumer preferences can make it difficult to predict the product’s demand. The reliance on external factors such as economic and political factors, which can lead to fluctuations in demand. Additionally, forecasting demand for a sub-supplier requires accurate assessments of the needs of the end-users, as well as the manufacturers who purchase and implement the product, thus needing collaboration with various stakeholders. Lastly, technology advancements, climate change, regulatory change, and events such as pandemics can also impact demand. In conclusion, sub-suppliers face challenges in forecasting demand due to diverse, constantly-changing, and unpredictable factors that require continuous surveillance to make accurate data-driven predictions. 7.1 Cirque du Soleil Inc.: the show that revolutionized the circus arts is expanding its global scope 1. Which socio-cultural factors influence the sales of tickets for ‘Cirque du Soleil’ shows around the world? Socio-cultural factors include several elements such as languages, manners and customs, social institutions, technology and material culture, education, value and attitudes, aesthetic and religion. Socio-cultural factors are very important part of international marketing because it differs from country to country. For example, in the languages, there are verbal and nonverbal languages, which also alter from country to country. Nonverbal are very important in high-context cultures. Or attitudes and values help to determine what people think is right or appropriate, what is important and what is desirable. Cirque du Soleil is a unique form of entertainment that combines acrobatics, art, and theatre, which attracts a diverse audience around the world. The sales of tickets for Cirque du Soleil shows are influenced by various socio-cultural factors such as social media, cultural diversity, word-of-mouth recommendations, and economic conditions. 1. Social media platforms (techonology culture) provide an effective way to reach potential customers, target demographics, and promote upcoming shows. 2. The cultural diversity also plays a significant role in the success of Cirque du Soleil shows, as they incorporate elements from different cultural traditions, making their performances culturally inclusive. Each show is about the circus style from around the world that is presented in one main theme with great story line. In North America, the company's home market, the popularity of live entertainment and the desire for unique experiences such as cutting-edge technology such as holograms, 3D and motion simulation play a major role in driving ticket sales. In Europe, the company's emphasis on artistic creativity and avant-garde performances appeal to the cultural and intellectual sensibilities of audiences. In Asia, the mystique and mysticism associated with circus-themed shows are a significant draw. Language barriers and cultural differences, however, pose a challenge to the company's global marketing strategy in non-English speaking regions. Moreover, the company must be sensitive to social and cultural norms in countries where gender roles, religion, and politics must be considered when crafting performances. Overall, a deep understanding of cultural differences and local markets is imperative to Cirque du Soleil's success. 3. Word of mouth recommendations from satisfied customers also serve as a critical driver of sales, helping to increase the popularity of the shows. 4. The economic conditions of the host country can impact ticket sales, as some potential customers may have more disposable income than others to spend on entertainment. Overall, a blend of cultural sensitivity, strategic promotional activities, and economic circumstances impact the sales of Cirque 2. What makes the business model of ‘Cirque du Soleil’ globally so successful? The global success of Cirque du Soleil's business model can be attributed to several key factors. 1. Firstly, the company learn from past mistake. They have created a whole new, unique and innovative product that combines elements of theatre, circus, music, and dance. This differentiates them from traditional circuses and attracts a wider demographic of patrons. That’s it. It created a blue ocean of new market space. Its blue ocean strategic move challenged the conventions of the circus industry. Cirque du Soleil’s success is that it did not win by taking customers from the already shrinking circus industry, which historically catered to children. Instead it created uncontested market space that made the competition irrelevant. It appealed to a whole new group of customers: adults and corporate clients prepared to pay a price several times as great as traditional circuses for an unprecedented entertainment experience. 2. Secondly, Cirque du Soleil has a strong branding and marketing strategy, with a focus on creating immersive and visually stunning experiences. This has helped to build hype and anticipation for the shows before they even premiere, which results in higher ticket sales. Thirdly, the company operates on a decentralized model, allowing local teams to manage the production and logistics of each show. This approach enables the company to tailor each show to the local market and also reduces costs. 3. Finally, Cirque du Soleil has expanded its global presence by leveraging partnerships with local companies and venues. Overall, Cirque du Soleil's ability to continuously innovate and adapt to local markets has contributed to its global success. 3. What should be the criteria for selection of a theme for Cirque du Soleil’s next world tour? Looking after the achievement they get with Michael Jackson, there are several factors that the next theme should have in order to grasp the success similar to “The Immortal World Tour”: - First and foremost, the theme should be globally appealing, as the company is known for its international productions. For example, in the world tour collaborate with Michael Jackson, Cirque du Soleil aimed at lifelong fans as well as those experiencing Michael’s creative genius for the first time. This helps Cirque du Soleil to not only use its fame but also MJ’s fame in marketing. - Additionally, the theme should have the potential for widespread appeal and be able to attract a broad audience. It should also be a unique and original theme that has not been explored by the company before. This will help the company maintain its position as a leader in the entertainment industry. - Finally, the theme should be adaptable to various cultures and languages, as Cirque du Soleil performs in different countries and regions around the world. 9.1 Jarlsberg: the king of Norwegian cheeses is deciding on entry modes into new markets 1. Which kind of market entry mode would you generally suggest for Jarlsberg: (a) in Scandinavia? For Jarlsberg, a cheese brand from Norway, exporting to other Scandinavian countries would be the most suitable entry mode. Given the similarities in culture, language, and gastronomic preferences, the company can effectively leverage its reputation and brand recognition in the region while minimizing the risks associated with entering a new market. Additionally, since Norway, Sweden, Denmark, and Finland belong to the European Economic Area (EEA), the company can benefit from streamlined trade regulations and customs procedures. However, Jarlsberg should carefully consider the product's packaging and labeling to adhere to each country's legal requirements and consumer expectations. Moreover, a priceperception study would provide the company with insights on how to price its product competitively across borders, considering the differences in market demand and local economic factors. (b) in Asia? In considering a market entry mode for Jarlsberg in Asia, it is important to assess the level of risks involved and the company's resources. The recommended entry mode for Jarlsberg in Asia would be a joint venture. This would involve partnering with a local company with the same vision and goals as Jarlsberg, as well as an established network and understanding of the Asian market. Joint ventures allow companies to share risks, costs, and expertise, as well as gain access to local knowledge and resources. It also offers a quicker time-to-market compared to other entry modes. Additionally, a joint venture would enable Jarlsberg to leverage the partner's existing distribution channels, facilities, and networks, increasing the chances of success in the Asian market. Overall, a joint venture would be a less risky and cost-effective way for Jarlsberg to enter and grow in the Asian market. 2. What are the general motives for choosing a hierarchical mode (own subsidiary) in the US? First, export mode has downside as there are quotas introduced by the World Trade Organization (WTO) between norway and the US, Jarlsberg can only export a limited amount of cheese from norway to the US. Intermediary mode may also be disadvantageous because the market share in US is very large, choosing intermediary mode may lead to some conflicts in benefits and as a results, Jarlsberg cannot Therefore, choosing a hierarchical model, such as an owned subsidiary, in the US is to have greater control over operations and decision-making processes. This can be especially important for global companies seeking to create a standardized approach to marketing and branding across different regions. Another motive is the ability to better understand and navigate local regulations and cultural differences, which can be complex and vary significantly across markets. Additionally, having an owned subsidiary can be a way to establish a physical presence and build long-term relationships with customers and partners in the US market. However, operating an owned subsidiary can also be expensive and requires significant resources, which may not be feasible for all companies. Ultimately, the decision to choose a hierarchical model will depend on the specific goals and needs of the company as well as the challenges and opportunities present in the US market.
