The Competitive Market
there is a limit to the products that can be supported
in a market
 the competitive market is the specific products
in a category as well as companies that produce
them
 market share is the percentage that a product
takes of the total dollars spent within a particular
category
 market segments are narrower categories
The Competitive Market
 One of the big issues becomes, how does a company
increase its market share?
1.
Take sales away from its competitors
2. Increase the size of the market
One of the big ways to increase the size of the market is….
 International Marketing
Starbucks moves into India!
The Wall Street Journal – October 10, 2011
• Starbucks sets out to perk up sales by making a
long-awaited entry into one of the world’s fastestgrowing markets (deal to be closed soon…)
• Within the next 3 months, announce partnership
with Tata Coffee Ltd. to open stores in India.
• Starbucks outlets are likely to be located in retail
stores and hotels, associated with Tata group.
• Traditionally drinkers of tea, Indians have of
been taking to order espressos, etc at quick service
cafes as a growing middle class increasingly
adapts to Western tastes
• India's restrictive foreign-ownership laws could
prove to be a challenge for Starbucks. Local
foreign-investment rules limit a foreign singlebrand retailer to holding 51% of its joint venture
with a local partner.
HSBC – “The World’s Local Bank”
 HSBC prides itself on understanding customers and
business at a local level around the world – this is
their USP
 Their tag-line (slogan) “The World’s Local Bank”
shows how important this concept is to them
 Let’s look at some of their advertising…
HSBC Television Advertising
 Local Customs

http://www.youtube.com/watch?v=JK_NinOmFWw
 Golf in Japan

http://www.youtube.com/watch?v=GHuO6qmiSgg
 The Wrong Flower

http://www.youtube.com/watch?v=8jrbu0lCWjk
International Marketing
 Use same methods in international marketing
 Marketing Mix (4 P’s)
 Target Market
 Consumer Profiling & Segmentation
 Competitive Advantage
 Unique Selling Proposition
 BUT, it needs to suit the local market
 Research and local knowledge is critical
Marketing Mix
 Product




Packaging needs to be in the right language
Regulations must be followed
Understand competitors there, size of product
Design (make up colour, cars)
 Price




Need to factor in transportation costs, tariffs, tax impacts, insurance,
exchange rates, etc.
Tariffs: tax placed on good being imported into a country
Must calculate “landed cost” – the total, end cost to go into that
country
Consider the type of currency used
Marketing Mix cont’d
 Promotion
 Portrayal of women’s roles
 Forbidden products and regulations
 What channels are most effective?
 Language
 Placement
 Channels of distribution
 Ethical issues, customs, and regulations
 Wholesale, retail, need to be assessed
 Understand the impact of the “black market”
 Consider your options for distribution
3 Approaches to International Marketing
1.
Global strategy - minimal changes for new markets


McDonalds or Coke
Very few pure global companies - Pringles
2. Adaptation strategy - making changes in product
or promotion to meet target's needs/wants/culture


Nike - clothing, sizes, climate, cultural sports;
Nestle – Milo drink in South Africa (soccer theme)
3. Customized strategy - developing a totally new
product to meet specific market needs

Coke in China (herbal flavours)
Marketing Strategy Depends on…
1. Geographical Factors - high population areas,
2.
3.
4.
5.
climate, land type; product, price (costs), place
Economic Factors - money, how developed the
country is, employment rates; price, place,
product, promotion
Political Factors - role of government, trade
barriers; place, product, price
Legal Factors - laws that govern the country;
product, promotion
Cultural Factors – Name some examples…
What Can Happen if this Approach is
Not Used?
 Coors put its slogan “Turn it Loose” into Spanish,
where it was read as “suffer from diarrhea”
 Clairol introduced the “Mist Stick”, a curling iron,
into German only to find out that “mist” is slang
for manure
 Scandinavian vacuum manufacturer Electrolux
used the following in an American campaign:
“Nothing sucks like an Electrolux”
 In Chinese, the Kentucky Fried Chicken slogan
“finger-lickin' good” came out as “eat your fingers
off”
More Global Marketing Bloopers
 The Coca-Cola name in China was first read as
“Ke-kou-ke-la”, meaning “Bite the wax tadpole” or
“female horse stuffed with wax”, depending on the
dialect. Coke then researched 40,000 characters to
find a phonetic equivalent “ko-kou-ko-le”,
translating into “happiness in the mouth”
 Pepsi's “Come alive with the Pepsi Generation”
translated into “Pepsi brings your ancestors back
from the grave”, in Chinese
 In Italy, a campaign for Schweppes Tonic Water
translated the name into “Schweppes Toilet Water”
Globalization
Customization
Product Adaptation
Promotional Adaptation