1. 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

2. The Competitive Market
One of the big issues becomes, how does a company increase its market share?
Take sales away from its competitors
Increase the size of the market

3. One of the big ways to increase the size of the market is….
International Marketing

4. 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 fastest-growing 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 single-brand retailer to holding 51% of its joint venture with a local partner.

5. 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…

8. HSBC Television Advertising
Local Customs
Golf in Japan
The Wrong Flower

9. 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

10. Marketing Mix Product Price
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

11. Marketing Mix cont’d Promotion Placement 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

12. 3 Approaches to International Marketing
Global strategy - minimal changes for new markets
McDonalds or Coke
Very few pure global companies - Pringles
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)
Customized strategy - developing a totally new product to meet specific market needs
Coke in China (herbal flavours)

13. Marketing Strategy Depends on…
Geographical Factors - high population areas, 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…

14. 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”

15. 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”

16. Globalization
Brazil and China – uses the same logo, product packaging and promotional messages around the world.

17. Customization
Customization – Milo developed customed packaging specificially for the South African Market.

18. Product Adaptation Poland – Sunsilk – co-creations
US – main page for Sunsilk – more flashy

19. Promotional Adaptation
Avon – changed some part of the promotional message or visuals needed for different markets (i.e. models of ethnic decent)