Global Business #9
July 2, 2011
Dept of Technology Management for Innovation (TMI),
Graduate School of Engineering
Professor Kazuyuki Motohashi
工学系研究科 技術経営戦略学専攻教授
元橋一之
http://www.mo.t.u-tokyo.ac.jp
Today’s Class
•
•
•
•
What is marketing, why important?
Marketing strategy planning steps
4P: Product, Price, Place and Promotion
Marketing for emerging economies: China,
India, BOP
• Introduction to the next class: Shiseido in
China
Marketing and Sales
Marketing
Sales
New customers, potential
customer needs
Existing customers
Forward looking (for new
product, services)
Market analysis for value
creation
Existing products
Actions (Eigyo), and sales
force management
Involves whole process of
marketing strategy
Focus on “Promotion” in
marketing 4P
How marketing fits in corporate
strategy ?
Strategic Marketing Planning
Market Analysis and Identifying
Opportunities (SWOT analysis)
Market Segmentation
Identifying target market and
product (service) positioning
Marketing Mix (4P) and Execution
Ansoff’s Product and Market
Growth Matrix
Global Business Context: CAGE and AAA framework
Example of Market Segmentation
Target Segment Identification
Marketing’s 4P
Product
Price
To what extent you can be a price setter, instead of price taker ?
Place (Channel)
Promotion (AIDMA)
Changing to AISAS in
Internet Era
Promotion tools (in detail)
Promotion in global business
Some caveats
• Regulations over promotion activities: such
as whether you can do “comparative
advertising”
• Terminology in foreign language
• Brand creation (difference in customer’s
perception)
• Importance of local ad agency
• Lack of product knowledge at local
distributors
Marketing mix by product life cycle
Market Intelligence: China and India
• Concept of PPP（Purchasing Power Parity)
China
GDP
3.45
Consumption
3.46
Food, beverages
5.52
Alcohoic, tabacco
5.75
Colothing
6.86
Housing related
3.37
Furnishing, durables 5.27
Health
0.69
Transport
5.98
Communications
3.14
Nominal Ex-rate
8.19
India
14.67
13.58
21.33
31.53
16.72
12.33
22.73
3.00
32.46
17.46
44.1
Japan
129.55
129.16
238.42
97.04
167.23
128.19
167.25
64.80
162.32
127.15
110.22
China
0.42
0.42
0.67
0.70
0.84
0.41
0.64
0.08
0.73
0.38
India
0.33
0.31
0.48
0.71
0.38
0.28
0.52
0.07
0.74
0.40
Japan
1.18
1.17
2.16
0.88
1.52
1.16
1.52
0.59
1.47
1.15
Targeting?
イ ンドの所得別世代構成比
高所得層
(180,001ルピー
～)
上位中所得層
(135,001～
180,000ルピー)
中所得層
(90,001～
135,000ルピー)
下位中所得層
（45,001～
90,000ルピー）
低所得層（～
45,000ルピー）
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
1985
1995
2001
• Profit=gross margin * sales volume (size of market and
competition)
• Difference between durable and consumption goods, customer
preference?
BOP(Bottom of the Pyramid)
Over 20,000 US$
75 mil. -100 mil.
150 mil.-1,750 mil.
1500～20,000 US$
1500US$ and under
4,000 mil.
（出典）The fortune at the bottom of the pyramid (C.K. Praharad)
BOP’s Business Chance
（出典）The fortune at the bottom of the pyramid (C.K. Praharad)
Example: ICICI’s micro payment
（出典）The fortune at the bottom of the pyramid (C.K. Praharad)
Next Class: Shiseido Case
• Is China is important for Shiseido? Evaluate based on
Shiseido’s domestic and global operation statistics
• List merits and demerits of operating in China, as
compared to operations in US and Europe
• Characterize Shiseido’s marketing strategy in China.
Take Urara as an example, and discuss its targeted
customer and marketing 4P. Do they have a
consistent story?
• Compare Shiseido’s marketing in China with those of
US and European mega players such as l’Oreal and
P&G. It is better to keep such strategy, when Shiseido
competes with them in Chinese market?