...European Case Clearing House, England and USA. North America, phone: +1 781 239 5884, fax: +1 781 239 5885, e-mail: ECCHBabson@aol.com. Rest of the World, phone: +44 (0)1234 750903, fax: +44 (0)1234 751125, e-mail: ECCH@cranfield.ac.uk. All rights reserved. Printed in UK and USA. Web Site: http://www.ecch.cranfield.ac.uk. EA RO PEAN CA 504-009-1 INSEAD 1 5188 After three successful years in the Personal Care division of Unilever in Pakistan, Laercio Cardoso was contemplating an attractive leadership position in China when he received a phone call from Robert Davidson, Head of Unilever’s Home Care division in Brazil, his home country. Robert was looking for someone to explore growth opportunities in the marketing of detergents to low-income consumers living in the Northeast of Brazil, and felt Laercio had the seniority and skills necessary for the project (Laercio had joined Unilever in 1986 after graduating from Fundação Getulio Vargas in São Paulo and had participated in INSEAD’s Advanced...
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...Unilever set up their first plant in 1930 to manufacture Sunlight Soap. In 1957 OMO, the countries first detergent, was launched and grew to be Unilever’s most successful Brand commanding 52% of the market share. Completing the detergent portfolio are Minerva, which is sold as both soap and detergent powder and Campeiro, their price based brand. Together the Unilever portfolio commands 81% of the market. Upon review of the company’s strategic options positive economic forces in Brazil have presented Unilever with the viable option of pursuing the low income consumer market. Currently their price based brand Campeiro is priced affordably but does not meet low income needs for perceived product attributes and as such only retains 6% of the market. Management are concerned this presents a chink in Unilever’s armour presenting anopportunity for Proctor and Gamble to attack and grow in this segment. Unilever had fallen victim to this strategy in India whereby a low priced detergent “Nirma” was developed andtargeted at low income consumers and quickly gained 48% of the market. Brazil is a country with a population ofapproximately 170m. It’s predominately split into two regions, the northeast with a population of 48m and the southeast with a population of 73m. The northeast and the southeast regions vary greatlywith regards to a number of issues related to the detergent and soap markets. Firstly income and education levels vary, as do cultural values and norms. A PEST analysis of the...
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...2012, Colgate delivered another year of strong results despite volatile currencies and challenging macroeconomic conditions worldwide. Colgate people remain sharply focused on the Company’s four strategic initiatives: Engaging to Build Our Brands, Innovation for Growth, Effectiveness and Efficiency, and Leading to Win. Colgate-Palmolive Company is a $17.1 billion global company serving people in more than 200 countries and territories with consumer products that make lives healthier and more enjoyable. The Company focuses on strong global brands in its core businesses – Oral Care, Personal Care, Home Care and Pet Nutrition. Colgate follows a tightly defined strategy to grow market shares for key products, such as toothpaste, toothbrushes, bar and liquid soaps, deodorants/antiperspirants, dishwashing detergents, household cleaners, fabric conditioners and specialty pet food. Cover: Photo taken in rural Uttar Pradesh, India. Brazil United Kingdom Brands Innovation Engaging To Build Our For Growth Italy Efficiency Effectiveness And IFC 2 8 10 12 14 16 20 Contents: Growing In A Fast-Changing World Engaging To Build Our Brands Innovation For Growth Effectiveness And Efficiency Leading To Win Financial Highlights Dear Colgate Shareholder Colgate’s Global Brands Sustainability Commitment Board Of Directors Management Team Reconciliation Of Non-GAAP Financial Measures 25 Form 10-K IBC Shareholder Information 21 22 23 24 South Africa Leading To Win...
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...CASE 41 Tambrands—Overcoming Cultural Resistance Tampax, Tambrands’s only product, is the best-selling tampon in the world, with 44 percent of the global market. North America and Europe account for 90 percent of those sales. Company earnings dropped 12 percent to $82.8 million on revenues of $662 million. Stakes are high for Tambrands because tampons are basically all it sells, and in the United States, which currently generates 45 percent of Tanbrands’s sales, the company is mired in competition with such rivals as Playtex Products and Kimberly-Clark. What’s more, new users are hard to get because 70 percent of women already use tampons. In the overseas market, Tambrands officials talk glowingly of a huge opportunity. Only 100 million of the 1.7 billion eligible women in the world currently use tampons. In planning for expansion into a global market, Tambrands divided the world into three clusters, based not on geography but on how resistant women are to using tampons. The goal is to market to each cluster in a similar way. Most women in Cluster 1, including the United States, the United Kingdom, and Australia, already use tampons and may feel they know all they need to know about the product. In Cluster 2, which includes countries such as France, Israel, and South Africa, about 50 percent of women use tampons. Some concerns about virginity remain, and tampons are often considered unnatural products that block the flow. Tambrands enlists gynecologists’ endorsements to stress...
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...CASE 41 Tambrands—Overcoming Cultural Resistance Tampax, Tambrands’s only product, is the best-selling tampon in the world, with 44 percent of the global market. North America and Europe account for 90 percent of those sales. Company earnings dropped 12 percent to $82.8 million on revenues of $662 million. Stakes are high for Tambrands because tampons are basically all it sells, and in the United States, which currently generates 45 percent of Tanbrands’s sales, the company is mired in competition with such rivals as Playtex Products and Kimberly-Clark. What’s more, new users are hard to get because 70 percent of women already use tampons. In the overseas market, Tambrands officials talk glowingly of a huge opportunity. Only 100 million of the 1.7 billion eligible women in the world currently use tampons. In planning for expansion into a global market, Tambrands divided the world into three clusters, based not on geography but on how resistant women are to using tampons. The goal is to market to each cluster in a similar way. Most women in Cluster 1, including the United States, the United Kingdom, and Australia, already use tampons and may feel they know all they need to know about the product. In Cluster 2, which includes countries such as France, Israel, and South Africa, about 50 percent of women use tampons. Some concerns about virginity remain, and tampons are often considered unnatural products that block the flow. Tambrands enlists gynecologists’ endorsements to stress...
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...| UNIVERSITY OF DAR ES SALAAMBUSINESS SCHOOLDepartment of Marketing | | | | | | | | | | | | | MASTER OF INTERNATIONAL BUSINESS (MIB) INVESTMENTS IN EMERGING MARKET Question : Critically describe corporate social responsibility in the context of emerging economies INTRODUTION Definition of the Key Terms Emerging economy: These are rapidly growing and volatile economies of certain Asian and Latin American countries. They promise huge potential for growth but also pose significant political, monetary, and social risks. There are varying ways to define an emerging economy and are fairly standard definition is a country with income per head of population of $ 9,265 or less. Countries big and small can fall within this definition. For example, China, Mexico, Egypt and India is regarded as an economic power house, yet income per head of population is still low, so as an emerging economy it sits alongside much smaller economies such as Tunisia. These are typically economies in transition, moving from a closed to an open economy, as they seek to integrate into the world economy. But this wont necessary be a one way journey, and political or economic turmoil can send them back into their shells, possibly resulting in Sbigger the risk the greater the potential. Corporate Social Responsibility: Is the continuing commitment by business to behave ethically and contribute to economic development...
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...The impact of social performance - Unilever and its environmental responsibility Unilever is one of the world largest multinational companies, merged by British soapmaker Lever Brothers and Dutch margarine producer Margarine Unie in 1929, which is related with lives of over two billion people every day mainly in the area of food and beverage, home care and personal care. The corporate purpose of Unilever indicates that they require "the highest standard of corporate behavior towards everyone we work with, the communities we touch, and the environment on which we have an impact (Purpose & principles 2010)". This corporate purpose highlights the importance of social performances and the interactions with their shareholders. Corporate social responsibility (CSR) is increasingly essential in the global environment (Wilburn 2009, 111), especially for large multinational companies who confirm that making contributions to shareholders is the driving force to increase the value of the corporations. Unilever claims that corporate social responsibility is at the heart of its business (Cescau 2007). “We've always believed in the power of our brands to improve the quality of people’s lives and in doing the right thing. As our business grows, so do our responsibilities (Our vision 2010)” Unilever has made a clear direction about their vision. These years Unilever has focus on building their corporate image with full consideration and improvement of social performance, varying from...
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...RUNNING THE BRAZILIAN BUSINESS T THE IDEA You may never have heard of Reckitt Benckiser, but in the past few years the company has outperformed its rivals P&G, Unilever, and Colgate in growth—even during the downturn. Here’s how. hey say you can’t go home again. If you work for Reckitt Benckiser, you can go home—but you may not want to, and you certainly won’t have to. Many companies, when they describe themselves as global, mean they have operations around the world, they work virtually and in all time zones, and their key people are developed through stints in other markets. Our version is more comprehensive. Most of our top managers haven’t held jobs in their countries of origin for years and view themselves as global citizens rather than as citizens of any given nation. We have operations in more than 60 countries. Our top 400 managers represent 53 different nationalities. We’ve spent the past 10 years building this culture of global April 2010 Harvard Business Review 103 HOW I DID IT mobility because we think it’s one of the best ways to generate new ideas and create global entrepreneurs. And it has paid off. Products launched in the past three years—all the result of global cross-fertilization—account for 35% to 40% of our net revenue. For example, Finish, an all-in-one dishwasher tablet you drop into your machine, is now the leader in its market category. Recently we successfully introduced QuantuMatic—an automatic dispenser of dishwasher detergent that doesn’t...
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...Running Head: VENEZUELAN OIL MARKET 1 Analysis of the Venezuelan Oil Market BINT 6311 – International Business Management University of the Incarnate Word VENEZUELAN OIL MARKET 2 Table of Contents Abstract ............................................................................................................................................3 Review of Venezuela .......................................................................................................................4 Geographic Location ....................................................................................................................4 Demographics ...............................................................................................................................5 Economic Indicators .....................................................................................................................5 Politics and Economic Freedom ...................................................................................................6 Analysis of Entry Modes .................................................................................................................7 Government’s Role ......................................................................................................................8 Joint Ventures ...............................................................................................................................8 Recent Events in Entry ....
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...category from zero to 100 in no time flat The race to create categories and subcategories may be your best option in emerging markets. Here’s how winners set the pace. By Mike Booker, Wlademir Gomes, Nikhil Ojha and Robert Schaus Mike Booker is a Bain & Company partner based in Singapore and leads the firm’s Consumer Products and Retail practices in Asia-Pacific. Wlademir Gomes is a Bain partner in São Paulo. Nikhil Ojha is a Bain partner in New Delhi. Robert Schaus is a Bain partner in Kyiv. Pierre-Laurent Wetli, a Moscow-based principal, and Joachim Breidenthal, a principal based in Johannesburg, also contributed to this article. Copyright © 2012 Bain & Company, Inc. All rights reserved. Taking a new consumer goods category from zero to 100 in no time flat Branded edible oils in Sudan, soy fruit drinks in Brazil, isotonic drinks in Indonesia. Five years ago, these categories were barely on the radar in these countries. By 2011, they ranged between $400 million to $890 million in revenues in these markets, generating significant profits for the companies that took the initiative to introduce them. Emerging markets may be expanding at a record-setting pace, but many also are undergoing rapid category consolidation. It’s to the point where, in many cases, the top three to five players now control the lion’s share of a category in any given market. Consolidation can slim margins for incumbents and limit opportunities for new players. That leads some consumer goods companies...
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...& Mark C Green Chapter 02 The Global Economic Environment Presentation adapted by Alfred Lowey-Ball For (International) Marketing management course Fall semester 2014 UBI-BA2 Brussels Chapter 02 Outline (The Global Economic Environment) 2-0 2-1 2-2 2-3 2-4 2-5 2-6 Introduction The world economy—an overview Economic Growth stars Classification of countries by income Market opportunities in DCs World population trends Dealing with currency risks 2 2-0 Introduction • The level of economic development in the target country is a major determinant of global market potential and opportunities • Globalization and forms of freemarket capitalism prevail almost everywhere today • Since the 2008 financial crisis, however, much uncertainty has crept in. 2-3 2-1 The World Economy—An Overview • The world economy has changed profoundly since WWII: in the western world, trade boomed and GDP rose constantly at a 2-3% rate… • Globalization (economic integration) was estimated to be 10%; today it is 50% (by some measures) and still rising • Global companies have arisen to respond to global market demands and opportunities, global competitors have displaced local ones 2-4 Growth of world GDP Figure 1.1 Growth of Real World GDP, 1975–2005 500 – 450 – 400 – 350 – Volume 300 – 250 – World GDP ~$70 Trillion today World population 7,1 Billion 200 – 150 – 100 – 1975 1980 1985 1990 1995 World GDP 2000 2005 Countries by annual GDP growth ...
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...Chapter 17 Outline Procter & Gamble in Japan: from Marketing Failure to Success Introduction The Globalization of Markets? Market Segmentation Product Attributes Cultural Differences Economic Differences Product and Technical Standards Distribution Strategy A Typical Distribution System Differences between Countries Choosing a Distribution Strategy Communication Strategy Barriers to International Communication Push versus Pull Strategies Global Advertising Pricing Strategy Price Discrimination Strategic Pricing Regulatory Influences on Prices Configuring the Marketing Mix New Product Development The Location of R&D Integrating R&D, Marketing, and Production Cross-Functional Teams Implications for the International Business Chapter Summary Critical Discussion Questions Nike--The Ugly American? Procter & Gamble in Japan: from Marketing Failure to Success Procter & Gamble (P&G), the large US consumer products company, has a well-earned reputation as one of the world's best marketers. With its 80-plus major brands, P&G generates more than $37 billion in annual revenues worldwide. Along with Unilever, P&G is a dominant global force in laundry detergents, cleaning products, and personal care products. P&G expanded abroad after World War II by exporting its brands and marketing policies to Western Europe, initially with considerable success. Over the next 30 years, this policy of developing new products and marketing strategies in the United States and...
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...Colgate: Global Strategies, Local Strength 2010 Annual Report Colgate: Global Strategies, Local Strength Succeeding With Consumers, The Profession And Our Customers u Innovating Everywhere u Effectiveness And Efficiency In Everything u Strengthening Leadership Worldwide u Colgate-Palmolive Company is a $15.6 billion global company serving people in more than 200 countries and territories with consumer products that make lives healthier and more enjoyable. The Company focuses on strong global brands in its core businesses – Oral Care, Personal Care, Home Care and Pet Nutrition. Colgate follows a tightly defined strategy to grow market shares for key products, such as toothpaste, toothbrushes, bar and liquid soaps, deodorants/antiperspirants, dishwashing detergents, household cleaners, fabric conditioners and specialty pet food. Cover: Photo taken in Chengdu City, Sichuan Province, China Contents: Financial Highlights Dear Colgate Shareholder Succeeding With Consumers Succeeding With The Profession Succeeding With Our Customers Innovating Everywhere Effectiveness And Efficiency In Everything 18 Strengthening Leadership Worldwide 2 4 8 10 12 14 16 20 Colgate’s Corporate Governance Commitment 21 Your Board Of Directors 22 Your Management Team 23 Non-GAAP Reconciliation Of Financial Measures 24 Global Financial Review/Form 10-K IBC Shareholder Information t Mexico Financial Highlights 2006 2007 2008 2009 2010 Net Sales ($ millions) 2006 2007 2008 2009 2010 $12...
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...Colgate: Global Strategies, Local Strength 2010 Annual Report Colgate: Global Strategies, Local Strength Succeeding With Consumers, The Profession And Our Customers u Innovating Everywhere u Effectiveness And Efficiency In Everything u Strengthening Leadership Worldwide u Colgate-Palmolive Company is a $15.6 billion global company serving people in more than 200 countries and territories with consumer products that make lives healthier and more enjoyable. The Company focuses on strong global brands in its core businesses – Oral Care, Personal Care, Home Care and Pet Nutrition. Colgate follows a tightly defined strategy to grow market shares for key products, such as toothpaste, toothbrushes, bar and liquid soaps, deodorants/antiperspirants, dishwashing detergents, household cleaners, fabric conditioners and specialty pet food. Cover: Photo taken in Chengdu City, Sichuan Province, China Contents: Financial Highlights Dear Colgate Shareholder Succeeding With Consumers Succeeding With The Profession Succeeding With Our Customers Innovating Everywhere Effectiveness And Efficiency In Everything 18 Strengthening Leadership Worldwide 2 4 8 10 12 14 16 20 Colgate’s Corporate Governance Commitment 21 Your Board Of Directors 22 Your Management Team 23 Non-GAAP Reconciliation Of Financial Measures 24 Global Financial Review/Form 10-K IBC Shareholder Information t Mexico Financial Highlights 2006 2007 2008 2009 2010 Net Sales ($ millions) 2006 2007 2008 2009 2010 $12...
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...in more than one country but restricts the sale of its products to the home country. Answer: C Page Ref: 279 Objective: 1 AACSB: Analytic Skills Difficulty: Easy 2) Which of the following can induce a firm to expand into the international arena? A) Consumer preferences in the domestic market vary widely. B) Average income level of domestic consumers is high. C) The firm operates in an industry that caters to the mass market. D) The firm finds that the domestic market is almost saturated. E) The firm is yet to achieve economies of scale even though the domestic market has potential. Answer: D Page Ref: 279 Objective: 1 AACSB: Analytic Skills Difficulty: Moderate 3) Zodiac Inc. is one of the leading producers of designer bags in its country. The company is considering shifting some of its production to India. Which of the following could have prompted this move? A) People in India prefer imported designer bags. B) Zodiac can target a niche market of high-profile consumers who have a high income. C) Zodiac can improve its market share if it can offer better prices than its competitors. D) People in the home country have an ethnocentric approach. E) Market research indicates that Indian consumers...
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