Description
One of the product categories in which global competition has been easy to track in U.S.is automotive sales. The increasing intensity of competition in global markets is a challenge facing companies at all stages of involvement in international markets.
GLOBAL MARKETING STRATEGIES
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Discuss how the international trade system, economic, political-legal, and cultural environments affect a company?s international marketing decisions. Describe three key approaches to entering international markets. Explain how companies adapt their marketing mixes for international markets. Identify the three major forms of international marketing organization.
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faster communication, transportation, and financial flows, the world is rapidly shrinking. Product and services developed in one country are finding and enthusiastic acceptance in others. ? A Gujarati businessman may wear an Italian suit to meet an English friend at a Japanese restaurant, who later returns home to drink Russian vodka and watch an American movie on a Korean TV.
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? Nokia
has made a remarkable transformation from an obscure Finnish conglomerate in to the world?s largest maker of mobile phones. ? Part of Nokia?s success is due to the broad view it takes of its business, selling a wide range of products to consumers of all kings all over the world. ? Nokia?s global view motivates its broad product lines that appeal to all kinds of customers and price ranges all over the world.
Nokia N Series (Global) Nokia 1208 (India)
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It is a firm which operate in more than one country and capture R&D , production, logistical , marketing and financial advantages in its cost and reputation that are not available with purely domestic competitors E.g.. Fords world truck “ Has European made cab and North American made chassis is assembled in Brazil and imported in USA for sales”
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The world is shrinking rapidly with the advent of faster communication, transportation, and financial flows. International trade is booming and accounts for 25% of U.S. GDP. Global competition is intensifying. Higher risks with globalization.
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Levitt
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Many U.S. companies have made the world their market.
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Restrictions—tariffs, quotas, embargos, exchange controls, and non-tariff trade barriers.
The International Trade System:
Helps Trade—reduces tariffs and other international trade barriers.
The World Trade Organization and GATT:
Groups of nations organized to work toward common goals in the regulation of international trade.
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Regional Free Trade Zones:
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Shapes a country?s product and service needs, income levels, and employment levels.
Subsistence Economies Raw Material Exporting Economies
Industrializing Economies
Industrial Economies
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Attitudes Toward International Buying Government Bureaucracy
Political Stability
Monetary Regulations
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Sellers must examine the ways consumers in different countries think about and use products before planning a marketing program. Business norms vary from country to country. Companies that understand cultural nuances can use them to advantage when positioning products internationally.
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When Nike learned that this stylized “Air” logo resembled “Allah” in Arabic script, it apologized and pulled the shoes from distribution.
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Japanese Barbie Doll
American Barbie Doll
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First poster- A man lying in the hot desert sand...totally exhausted and fainting. Second poster - man is drinking our Cola. Third poster- Our man is now totally refreshed.
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Factors Affecting Companies to go International : ? Firms offering better product or lower prices can attack companies domestic market , company wants to counter attack these competitors in there home markets E.g.. TCS competing with IBM in US ? Company discover some foreign mkt presents high profit opportunity than domestic mkt E.g.. L&T enter in to Gulf country ? Company needs larger customer base to achieve economy of scale E.g.. RIL ? Wants to diversify E.g.. Wipro
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Risk factors: ? Company may not understand foreign customer preferences and fail to offer comparatively attractive product. ? Not able to understand business culture and dealing effectively with foreign nations ? Company might under estimate regulation and incur unexpected cost. ? Lack of Manager having global exp. ? Change in commercial law or devaluation of currency or undergo political revolution.
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Colgate introduced a toothpaste in France called Cue, the name of a notorious porno magazine. Not well received. Pepsi?s “Come alive with the Pepsi Generation” translated into “Pepsi brings your ancestors back from the grave,” in Chinese. Clairol introduced the “Mist Stick,” a curling iron, into Germany only to find that “mist” is slang for manure. Not too many people had use for the “manure stick.” General foods tang initially failed in France because it was positioned as substitute of orange juice at breakfast but French don?t drunk orange juice at breakfast
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? Huge foreign debt. E.g.. Mexico, Russia , Indonesia ? Unstable Gov. ? Foreign Exchange problem ? Bureaucracy ? Tariffs ? Corruption ? Technological pirating ? High cost of product and communication
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Before going abroad, the company should try to define its international marketing objectives and policies.
What Volume of Foreign Sales is Desired?
How Many Countries to Market In?
What Types of Countries to Enter? Choose Possible Countries and Rank Based on Market Size, Market Growth, Cost of Doing Business, Competitive Advantage, and Risk Level
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Entering Strategies.
? Water fall approach: Gradual entering in diff country one by one e.g. BMW, GE ,Benetton and Body shop ,Emway ? Sprinkler approach : Entering many counties simultaneously e.g. Microsoft
? Amway : 1971 Expanded Australia 1980 Expanded in 10 more countries Now in more than 80 countries
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Developed vs. Developing Mkt
? Developing Mkt is 80% of total world population ? Selling in developing area can?t be “business as usual ” as its having different economic and cultural environment in comparison with developed country. ? Developing country will lack in basic infrastructure like Rail , road ,ports etc. ? E.g.. Uniliver 1 Rs pouch is big hit in rural India where 70% of total population lives. ? When coco cola move to 200ml small bottle in India at Rs 5 ,sales jump like anything. ? In 1995 all mobile phones in China ware made by global giant Nokia ,Motorola , Ericson but within 10 year there mkt share dropped to 60% as China's domestic firms immerge as rivals.
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Free Trade Zones:
? SAFTA: South Asian Free Trade Area consist of seven countries namely Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri lanka.
? Agreement signed in 2004 and came into effect in 2006 ? Aim is to promote economic development of members by expanding investment, production opportunities and foreign exchange earnings. ? They are classified into two main categories; least developed countries and Non least developed countries India, Pakistan and Sri lanka ? Tariff was reduced by 20% and 30% for NLDC and LDC respectively
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? European Union: ? it consist of 25 countries ? It?s world single largest market with more than 454 million consumer account for 23% of world export ? Companies marketing in EU faces 14 different languages, 2000 years of historical and cultural differences. ? Formed in 1957 NAFTA(North American Free Trade Agreement): ? Formed in 1994 ? it consist of US, Mexico, Canada ? It has 360 million consumer base ? It has market of more than 6.7 trillion US$ ? All Trade barriers and investment restriction are eliminated among member countries
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Using aggressive promotional and educational programs, Colgate has expanded its market share from 7% to 35% in less than a decade.
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Exporting:
? Indirect: working through independent international marketing intermediaries. ? Direct: company handles its own exports.
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Joint Venturing:
? Joining with foreign companies to produce or market products or services.
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Approaches:
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KFC entered Japan through a joint ownership venture with Japanese conglomerate Mitsubishi.
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Direct Investment:
? The development of foreign-based assembly or manufacturing facilities. ? This approach has both advantages and disadvantages.
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Standardized Marketing Mix:
? Selling largely the same products and using the same marketing approaches worldwide. ? Standard Marketing mix has some pros and cons like Economies of scale in production, Lower marketing cost, Control, Uniformity of marketing practices, Ignore differences in consumer needs, Ignore differences in brand and product development Ignore differences in legal environment, marketing institutions, administrative procedure. ? Producer adjusts the marketing mix elements to each target market, bearing more costs but hoping for a larger market share and return.
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Adapted Marketing Mix:
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In India, McDonald’s serves chicken, fish, and vegetable burgers, and the Maharaja Mac—two all-mutton patties, special sauce, lettuce, cheese, pickles, onions, on a sesame-seed bun.
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Straight Product Extension:
? Marketing a product in a foreign market without any change.
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Product Adaptation:
? Adapting a product to meet local conditions or wants in foreign markets.
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Product Invention:
? Creating new products or services for foreign markets.
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Can use a standardized theme globally, but may have to make adjustments for language or cultural differences. Communication Adaptation:
? Fully adapting an advertising message for local markets.
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Changes may have to be made due to media availability.
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Companies face many problems in setting their international prices. Possible approaches include:
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International prices tend to be higher than domestic prices because of price escalation. Companies may become guilty of dumping –a foreign subsidiary charges less than its costs or less than it charges in its home market.
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? Charge a uniform price all around the world. ? Charge what consumers in each country will pay. ? Use a standard markup of costs everywhere.
Twelve European Union countries have adopted the euro as a common currency, creating “pricing transparency” and forcing companies to harmonize their prices throughout Europe.
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Organize an export department Create international divisions
? Geographical organizations ? World product groups ? International subsidiaries
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Become a global organization
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Introduction
The Coca-Cola Company was first established in 1886 by Dr John Styth Pemberton. Today, the company is the world's leading manufacturer in the beverage industry, operating globally in more than 200 countries with its head office located in Atlanta, USA. It produces more than 300 beverage brands and over 1.06 billion drinks are consumed per day.
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In India, Coca-Cola was the leading soft-drink till 1977 when govt. policies necessitated its departure. Coca-Cola returned to India in 1993 and over the past ten years has captured the imagination of the nation, building strong associations with cricket, the thriving cinema industry, music etc. Coca-Cola has been very strongly associated with cricket, sponsoring the World Cup in 1996 and various other tournaments, including the Coca-Cola Cup in Sharjah in the late nineties.
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Coca cola owns more than ½ of the world?s beverages Coke was first advertised as a remedy for headaches and exhaustion Coke has been advertising on television for 60 years donated $10 million to tsunami relief efforts in Asia First bottle of Coke was sold 120 years ago on May 8, 1886 in Atlanta, Georgia. Coke is a Kosher drink, so it is sold internationally. Approximately 10,450 Coca-Cola brand drinks are consumed around the world each second of every day Coca-Cola sold only 25 bottles in the first year nowadays, they sell over one billion bottles per day
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In July 1985, Coke was the first soft drink to be enjoyed in outer space on the space shuttle Challenger. A special space can was developed If you stacked all of the bottles of Coke that had ever been made end to end, it would reach to the moon and back 1,045 times! The sales of Coke in the first year was $50, and the expenses were $70 In 1998 Coke international created its first ad for the celebration of the Muslim holiday of Ramadan. It was run in 20 countries worldwide
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The biggest competitor of coke is PepsiCo. other from Pepsi there are many players in this industry like juices, natural drinks but coke and Pepsi dominate 95% of the market. During the last 4 to 5 years, the turn over has touched a mark of 7000 crore and is heading for 8000 crore mark. Soft drink consumption is growing by around 7% to 8% a year, according to the publication Global Soft drinks 2009, total volume reached 412,000 million litres in 2008, giving a global per capita consumption of around 67.5 litres per year. Almost 19% of the population consume soft drinks. In India, the leading players are Coca cola and Pepsi, who holds a strong market share. Coca cola contributes to 58% market share whereas Pepsi holds 42% market share.
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The Coca-Cola Company has nos. of brands like thums up, sprite. But if we talk about coca cola as a product it has sub products like Diet Coke, Caffeine Free Coke, Cherry Coke Coca-Cola Zero, Vanilla Coke and special editions with lemon and with lime, and even with coffee. They introduced other cola drinks under the Coke brand name. The most common of these is, which has become a major diet cola is diet coke. But we find only diet coke and vanilla coke in India. Multi branding is the branding strategy used by Coca Cola company for its different products.
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“ Quality Is Our Highest Business Objective ”
This is the statement given by the company.
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In 'blind' taste tests, people prefer the taste of Pepsi over the taste of Coke. However, if the test is not 'blind' and the tasters know which beverage is which, they prefer the taste of Coke over Pepsi! That is the emotional power of a brand. The CocaCola brand has the power to actually change an individual's taste Coca-cola is the no.1 brand in the world Coca-Cola is recognized by 94% of the world?s population. Guinness World Record ranked coca cola as the most popular soft drink
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The famous Coca-Cola logo was created by John Pemberton's bookkeeper, Frank Mason Robinson, in 1885. It was Robinson who came up with the name, and he also chose the logo?s distinctive cursive script. Coca cola has two registered trade marks as shown below.
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The packaging of have been always very attractive and different from others, as we can also see in the bottles below. Even the 600 ml bottle has a different kind of packaging. The first shape that was registered was of the coca cola bottle
Advertisement
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Glass
200 ml, 300 ml, 500 ml, 1000 ml
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500 ml, 1.5 L, 2L
Can
330 ml
Fountain
Various Sizes
In 2002, the Coca-Cola Company extended the products of Coke and developed the new products Coke with lemon and Vanilla Coke. This extension responded to consumer demands and generated sales and profit. It also launched innovative product like diet coke which was then also copied by their competitors but they didn?t succeeded.
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Psychological Pricing : Most of the Coca-Cola products use this method of pricing. For example, for a pack of 5 cans of Coca-Cola soft drinks it is priced at Rs.99 instead of Rs.100 this pricing strategy makes consumers perceive the products to be cheaper. When coca cola entered into Indian market it used penetration method. In India it started with low price, its price in India was just Rs 5 in the year 2003 with an intention to occupy Indian rural market, which is almost 90% of the population. Coca cola also follows going rate policy as the price of its major competitor Pepsi.
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Advertising : The Coca-Cola Company uses advertising as its main source of increasing consumer awareness. It mainly uses television for advertisement. There are many television advertisements on Coca-Cola products. This source allows the company's products to reach a large audience. The latest television advertisement for Coca-Cola soft drinks was Aamir khans ` hum same same' advertisement. One of the older one are `thanda matlab coca cola' & „Manu bhabhi?.
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Other from this it also advertises on radio for e.g. “thanda matlab coca cola”, “life ho toh aisi” and many other. For radio advertisement they mainly use the proverbs only.
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Sponsored 1997 World Cup Bollywood film like Dhoom 2
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India A : “Life ho to Aisi”
“India A,” the designation Coca-Cola gave to the market segment including metropolitan areas and large towns, represented 4% of the country?s population. This segment sought social bonding as a need and responded to inspirational messages, celebrating the benefits of their increasing social and economic freedoms. “Life ho to Aisi,” (life as it should be) was successful and relevant tagline found in Coca-Cola?s advertising to this audience.
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India B : “Thanda Matlab Coca cola”
Coca-Cola India believed that the first brand to offer communication targeted to the smaller towns would own the rural market and went after that objective with a comprehensive strategy. “India B” included small towns and rural areas, comprising the other 96% of the nation?s population. This segment?s primary need was out-of-home thirstquenching and the soft drink category was undifferentiated in the minds of rural consumers.
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Coca cola at every stage has done sales promotion. If you must have remembered the Aish Cash offer of coca cola which was a big success now also a new offer have come into market, which is there for all products of coca cola. Now they have started a new “sms and win offer” which will soon hit the market.
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Indirect Distribution
Coca-Cola Company uses intermediaries in its distribution. That is, the company does not sell its products directly to its consumers. The Coca-Cola Company uses the intensive distribution strategy. The business's products are sold in almost every outlet including: · retail outlets · small shops · restaurants · petrol stations · newsagents · schools · sports and entertainment venues· from vending machines.
Company warehouses ? whole sellers ? retailers ? consumers.
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Company plans to grow their outlet base by 100,000 outlets next year to 6,00,000 outlets and will not stop growing that base until they are truly "within arm's reach of desire". The company had opened 50,000 new outlets in the first two months of this year, as part of its plans to cover one lakh outlets for the coming summer season. The new outlets also covered 3,500 new villages.
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Strength
Strong brand name – known by 94% of world Corporate identity – since 1880?s Global distribution – more than 200 countries Advertisement – very attractive Innovation – diet coke, vanilla coke etc. Local approach – maintain purely visible Strong R&D Backward integration – company owned bottling Brand loyalty Financial stability
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Weakness
Not No. 1in India – First Pepsi & Second coke owned Thums up Market share – less in India Under utilization of capacity Sales in India – 6 bottles per capita/year, in Mexico 533 bottles per capita/year Pesticide scandal
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Opportunities
Possible growing demand in India per capita Developing global brand Coca cola?s bottling system – most of the bottling companies are under the control of coke Sufficient capital Has a potential – to innovate & differentiate Expansion in to new market – other than soft drink market
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Threat
Competition with Pepsi Pesticide matter Change of taste of their consumers Consumers are not necessarily married to it Increase its advertisement budget
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McDonald's Corporation is the world's largest chain of fast food restaurants, serving nearly 47 million customers daily through more than 31,000 restaurants in 119 countries worldwide
It is the ninth most valuable brand in the world Total emp of McDonald is more than US Arm force Controls the market share of more than 3 food chains taken together in America
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Their first restaurant opened on 15th April 1955 in Des Plaines, Illinois, U.S.A. more than 50 years down the line McDonald's opened its doors in India in October 1996. Ever since then, their family restaurants in Mumbai, Delhi, Pune, Ahmedabad, Vadodara, Ludhiana, Jaipur, Noida Faridabad, Doraha, Manesar and Gurgaon have proceeded to demonstrate, much to the delight of all our customers, what the McDonald's experience is all about.
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McDonald?s in India is a 50-50 joint venture partnership between McDonald?s Corporation [USA] and two Indian businessmen.
Amit Jatia?s company Hardcastle Restaurants Pvt. Ltd.
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Vikram Bakshi?s company Connaught Plaza Restaurants Pvt. Ltd
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McDonald's India's local suppliers provide us with the highest quality, freshest ingredients. Complete adherence to the Indian Government regulations on food, health and hygiene is ensured, while maintaining their own recognized international standards. Fast, friendly service - the hallmark of McDonald's restaurants the world over is the mantra we abide by.
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•Growth in Personal Income: The increase in buying
power
•India's per capita income has increased by over 20 percent from 1992 to 1996. • Shrinking Household Size: •number of households in middle, upper and high-income categories has grown by more than 12 percent annually. These households have higher disposable income per member and have a greater propensity to spend on food. Urbanization: •Approximately 50 percent of high, upper and middleincome group Indian consumer households reside in urban areas.
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Growing Number of Women in the Workforce: • Over 16 percent of the population of Indian women work full-time and spend most of their time away from home. away from home. •Menu Diversification: •High-income Indian consumers are seeking variety in their choice of food. Urban Indian consumers are aware of various international cuisine (e.g. Continental, Chinese, Mexican, Italian, Thai, and Japanese) and an increasing number are willing to try new foods
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Health professionals and consumer activists accuse McDonald's of contributing to the country?s health issue of high cholesterol, heart attacks, diabetes, and obesity. • The relationship between corporate level McDonald's and its franchise dealers. • McDonald?s competitors threatened market share of the company both internationally and domestically. • Anti-American sentiments. • Global recession and fluctuating foreign currencies. • Fast-food chain industry is expected to struggle to meet the expectations of the customers towards health and environmental issues.
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McDonald's India has developed a special menu with vegetarian selections to suit Indian tastes and preferences. McDonald's does not offer any beef or pork items in India. Only the freshest chicken, fish and vegetable products find their way into our Indian restaurants. In addition, they have re-formulated some of their products using spices flavored by Indians. Among these are McVeggie™ burger, McAloo Tikki™ burger, Veg. Pizza McPuff™ and Chicken McGrill™ burger.
Marketing Mix
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A very popular punch line of McDonald “ Aap ke zamame main ,baap ke zamane ka daam”
The main reason of this price strategy was to attaract the middle class and the lower class of people Value Pricing Happy meal-samll burger ,coke+toy Maharaja Mac meal Rs 95
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The 80-20 Menu Board:
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Even the menu counter in the outlet are a marketing tool , it should be design such a way it can attract customer
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McDonalds have menu board that are descriptive as well visual. They call it the 80-20 menu board eight 80% visual and 20% descriiption Other strategies are
? ? ? ? Collobration with coke,MTv , Sony Music Scratch card on large jumbo meals. Price, T-shirts, Free-ticket to luck All?s contest Purchase of 2 meals in a month qualified for Opel Corsa
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MacDonald has opened its restaurants in residential areas so that senior citizens would not find any problem Open restaurants in mall and multiplexes to attract young generation.
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1. Increase its product line. 2. To have more variety to choose from, to include more deserts and more items like Pizza McPuff. 3. To provide better and quick service. 4. Lower the supply chain cost so that it helps in cost reducing. 5. To expand their Happy Meal choices to attract and retain customers. 6. To educate about healthy lifestyle. 7. Introduction of McCafees serving premium and specialty coffees and other beverages and other products such as cakes, pastries etc in the existing McDonald’s. 8. Provide with better ambience. 9. Focus on gifts for all generations i.e. youth, kids’ especially senior citizen which is a completely new concept. 10. Special promotions during festivals. 11. Increasing the space for provision of birthday party areas. 12. Try to sponsor college festivals. 13. Work for social welfare of the society
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MM Mithaiwala is one of the oldest fast food firm operating in Mumbai which has all the ingredients of becoming an international brand. MM Mithaiwala works on the principle of developing profit centers whereby all the work is handled by professionally qualified people responsible for their respective departments. There Philosophy has always been customer satisfaction and they believe that a satisfied customer is a customer for life.
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M.M.Mithaiwala is a producer of Indian sweets, snacks and is also into retailing outlets, restaurant business, and fast food and lassi centers. M.M.Mithaiwala supplies to Industrial Canteens, Hospitals, Flight Kitchens, and Hotels. They also supply to caterers organizing marriages and other social functions in the city. They have established high quality performance standards like Punctuality, Great Service, Good Quality Food, Hygiene and Commitment to the customer. This is the essence of their success. Unique Selling Point (USP): The best product with traditional taste and service sold at the best prices with best ingredients in the most hygienic condition.
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M.M.Mithaiwala was started as a Joint Family Catering Business in 1946. (A pioneering family since pre-independence).Ten family members worked together full time to build the business from its humble beginnings. The business was established at Malad, Mumbai in 1951 at Gupta Market by Shri Chandrabhan Nathanlal Gupta.
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To be true to the customers by serving best quality food in the most hygienic conditions, at highly affordable prices along with great service There VISION is to retain the old principles and values at the same time make the business grow. They are always improving there infrastructure, day-to-day operations, hygiene conditions, manufacturing units, welfare of the staff, safety measures, marketing and distribution.
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Air India Bharat Petroleum Corp Ltd (BPCL) Hindustan Petroleum Corp Ltd (HPCL) ICICI One Source Indian Oil Corporation Oil and Natural Gas Corporation (ONGC) Reliance Industries Bhabha Atomic Research Center (BARC) Bombay Electric Supply & Transport (BEST) Glaxo India Ltd. Hotel Sea Princess Sahara India
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M.M.Mithaiwala strongly believes in the best practices for production, storage and distribution. Our skilled and professional staff is trained to handle our delivery department from order taking to timely delivery of the finished products. Our system has been tuned for efficient and punctual delivery at any location. Our products are delivered fresh and packaged in properly designed materials taking into account the shelf life, the shape and the texture of the product. Before delivery we thoroughly understand our customers? consumption pattern and accordingly we plan our packaging and delivery. We make sure that the products are fresh when served to customers.
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Pricing Policy: - As all the products of MM Mithaiwala are well known and widely accepted by the customers, Penetrating strategy is used i.e. Fair prices with Quality Products Discounts: - Discounts are provided only when there is a large / bulk order or for a corporate order. On Special occasions like festivals 10% to 15% discounts are given. Terms of Delivery: - Free home delivery of some products like Sweets if in bulk quantity. Payment Terms: - Cash
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Advertising: - Advertising is done through Hoardings outside Malad Station. Display: - Display of Products all along the Railway Station & in the interiors.
Publicity: - Mouth to Mouth Publicity
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SCANNING THE ENVIRONMENT
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Political Stability ? The legal system is a composite of English laws and the French Code Napoleon. Free and fair elections are held every five years. Mauritius is a Parliamentary democracy governed under the constitution of 1968, as amended in 1992. The president, who is the chief of state, is elected by the national assembly for a five-year term. The prime minister, who is the head of government, is appointed by the president, as is the council of ministers. The unicameral legislature consists of a 70-seat national assembly; 68 members are elected and, and eight, representing ethnic minorities, are appointed by the president.
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Strong Economy
? It has emerged from a monoculture economy based on sugar cane to a diversified economy resting on four main pillars, namely agriculture, export processing industries, tourism and financial services. The information and communication technology (ICT) sector is now being developed as a fifth pillar. State-of-the-art physical infrastructure, comfortable foreign exchange reserves.
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Qualified Work Force
? Mauritius has a literacy rate of over 86 %. A large pool of well-educated and easily trainable young people is ready for the labour market. A skilled and bilingual (English / French) workforce, The labour laws and remuneration orders are available from the Ministry of Labour & Industrial Relations and the Mauritius Employers Federation (MEF).
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Developed Infrastructure
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Attractive Incentives
? The government has invested heavily in infrastructure. Mauritius is today endowed with a developed and well-maintained road network, a modern international airport, a well-equipped sea port, state-of-the-art telecommunications, serviced land and new generation business parks. ? The whole island is supplied with electricity, water and telephone lines. Electric power and water supply are stable. ? The Government pursues a liberal foreign investment policy and offers attractive fiscal and non-fiscal incentives for the development of all sectors of the economy. Incentives offered can be in the form of reduced corporate tax, exemption of customs on equipment and raw materials, preferential loan rates and reduced tariffs for electricity and water.
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? Moreover, dividends paid to shareholders are taxexempt. Free repatriation of profits, dividends and capital is allowed.
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Physical Location ? Mauritius is a volcanic island in the Indian Ocean lying in the east of Madagascar and southwest of India. Almost 11 times the size of Washington, DC, With about 600 people per square kilometer. ? Mauritius has one of the highest population densities in the world. There is no monsoon season, though cyclones hit the island every 15 years or so between November and May.
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Tourist Attractions of Mauritius
? Port Louis is the bustling capital of Mauritius of about ? 1, 38,000 people and a leading port. During the day, it bustles with big-city commercial activities, while at night in contrast all the activity takes place at the swish new Le Caudan Waterfront, where you can enjoy casino, cinemas, shops, bars and Restaurants.Its harbourside location is world-class.The wonderful Pereybere public beach is also popular due to its shopping facilities, restaurants and pubs. ? Celebration of almost all the Hindu festivals in this island is a common phenomenon. Festivals like, Teemeedee, Thaipoosam Cavadee, Diwali, Pongal, Mahashivratri, New Year, Holi, Independence and Republic days are celebrated here.
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Important Festivals and Exhibitions
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Culture and Lifestyle
? Mauritius accounts a 63% of Indian majority of which 80% follow Hinduism. Roughly every other fifth person is Muslim.. The remaining population is of Créoles, descendants of African slaves, and Franco-Mauritians, the original settlers of the island. English is the official language of the island, though you may also hear French, Créole and also Indian languages like Bhojpuri and Urdu.
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Food Habits
? The eating habits of the Mauritians inevitably reflect the ethnic diversity of its people: Creole rougailles, Indian curries, Muslim bryanis, Chinese sweet-and-sour pork, French delicate dishes, English bacon and eggs, ...... you name it, you?ll get it there.
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Economic Environment of Mauritius
? Mauritius has developed from a low-income, agriculturally based economy to a middle-income diversified economy with growing industrial, financial, and tourist sectors. Some other Vital Info of there Economy…
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GDP - per capita: purchasing power parity - $13,300 (2005 est.) GDP - composition by sector: agriculture: 6.1%; industry: 29.9%; services: 64% (2005 est.) Unemployment rate: 10.5% (2005 est.) Population below poverty line: 10% (2001 est.) Fiscal year: 1 July - 30 June
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Exports - partners: UK 33.1%, France 20.4%, US 14.8%, Madagascar 5.1%, Italy 4.1% (2004) Imports - partners: South Africa 11.3%, China 9.4%, India 9.3%, France 9.2%, Bahrain 5.3%, Japan 4.1% (2004) Regulatory Body in Mauritius
? Under the Mauritius Financial Services Development Act 2001, the regulating authority with regard to offshore matters is the Financial Services Commission (FSC). It is expeditious and efficient in approving applications to incorporate companies in Mauritius. The FSC has also been careful not to forsake standards in satisfying the flexible demands of offshore customers whilst protecting the investor and preserving the excellent reputation of Mauritius as an International Financial Services Centre.
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M.M.Mithaiwala strongly believes in the best practices for production, storage and distribution. Our skilled and professional staff is trained to handle our delivery department from order taking to timely delivery of the finished products. Our system has been tuned for efficient and punctual delivery at any location. Our products are delivered fresh and packaged in properly designed materials taking into account the shelf life, the shape and the texture of the product. Before delivery we thoroughly understand our customers? consumption pattern and accordingly we plan our packaging and delivery. We make sure that the products are fresh when served to customers. To avoid contamination and spreading of bacteria we ensure that our packaging is properly sealed and stored correctly maintaining the right temperature required.
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Pricing Policy: - Skimming policy (High Price & High Quality) at the beginning stage and then as the product is accepted Penetrating strategy can be used i.e. Low prices with Quality Products Level of Prices: - Different prices for each product with Standard price levels Discounts: - Discounts are provided only when there is a large / bulk order or for a corporate order. On Special occasions like festivals 10% to 15% discounts are given. Terms of Delivery: - Free home delivery of some products like Sweets in bulk quantity. Payment Terms: - Cash
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Advertising: - will be done locally with use of FM Radio Stations, Hoardings, Banners, giving sponsorships, etc Sales Promotional Activities: - Giving Incentives to the Staff, Free food to the people, Free Gifts to the Corporate Clients, Launching New Schemes for regular customers, etc Display: - Display of Products all along the road & in the interiors. Publicity & P.R.: - Mouth to Mouth Publicity with a Special person appointed for handling public relations.
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Global marketing strategies have to respond to the twin needs of global standardisation and local customisation. In their quest to maximise local responsiveness, companies should not overlook opportunities to standardise and cut costs. On the other hand, an excessive emphasis on generating efficiencies through a standard marketing mix may result in the loss of flexibility. The challenge for global marketers is to identify the features which can be standardised and build a core product. Then customised offerings can be designed around the core product for different markets. In real life, striking the right balance between standardisation and customisation can be extremely challenging.
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Marketing Management – Philip Kotler Global Marketing Management – Warren Keegan www.google.com www.youtube.com www.cocacola.com www.mcdonals.com www.mbajunction.com www.managementparadise.com Other Internet sources
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A LITTLE PUSH IN THE RIGHT DIRECTION CAN MAKE A BIG DIFFERENCE…..
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doc_674468838.pptx
One of the product categories in which global competition has been easy to track in U.S.is automotive sales. The increasing intensity of competition in global markets is a challenge facing companies at all stages of involvement in international markets.
GLOBAL MARKETING STRATEGIES
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Discuss how the international trade system, economic, political-legal, and cultural environments affect a company?s international marketing decisions. Describe three key approaches to entering international markets. Explain how companies adapt their marketing mixes for international markets. Identify the three major forms of international marketing organization.
? Did you know?
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? With
faster communication, transportation, and financial flows, the world is rapidly shrinking. Product and services developed in one country are finding and enthusiastic acceptance in others. ? A Gujarati businessman may wear an Italian suit to meet an English friend at a Japanese restaurant, who later returns home to drink Russian vodka and watch an American movie on a Korean TV.
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? Nokia
has made a remarkable transformation from an obscure Finnish conglomerate in to the world?s largest maker of mobile phones. ? Part of Nokia?s success is due to the broad view it takes of its business, selling a wide range of products to consumers of all kings all over the world. ? Nokia?s global view motivates its broad product lines that appeal to all kinds of customers and price ranges all over the world.
Nokia N Series (Global) Nokia 1208 (India)
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It is a firm which operate in more than one country and capture R&D , production, logistical , marketing and financial advantages in its cost and reputation that are not available with purely domestic competitors E.g.. Fords world truck “ Has European made cab and North American made chassis is assembled in Brazil and imported in USA for sales”
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The world is shrinking rapidly with the advent of faster communication, transportation, and financial flows. International trade is booming and accounts for 25% of U.S. GDP. Global competition is intensifying. Higher risks with globalization.
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Levitt
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Many U.S. companies have made the world their market.
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Restrictions—tariffs, quotas, embargos, exchange controls, and non-tariff trade barriers.
The International Trade System:
Helps Trade—reduces tariffs and other international trade barriers.
The World Trade Organization and GATT:
Groups of nations organized to work toward common goals in the regulation of international trade.
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Regional Free Trade Zones:
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Shapes a country?s product and service needs, income levels, and employment levels.
Subsistence Economies Raw Material Exporting Economies
Industrializing Economies
Industrial Economies
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Attitudes Toward International Buying Government Bureaucracy
Political Stability
Monetary Regulations
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Sellers must examine the ways consumers in different countries think about and use products before planning a marketing program. Business norms vary from country to country. Companies that understand cultural nuances can use them to advantage when positioning products internationally.
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When Nike learned that this stylized “Air” logo resembled “Allah” in Arabic script, it apologized and pulled the shoes from distribution.
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Japanese Barbie Doll
American Barbie Doll
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First poster- A man lying in the hot desert sand...totally exhausted and fainting. Second poster - man is drinking our Cola. Third poster- Our man is now totally refreshed.
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Factors Affecting Companies to go International : ? Firms offering better product or lower prices can attack companies domestic market , company wants to counter attack these competitors in there home markets E.g.. TCS competing with IBM in US ? Company discover some foreign mkt presents high profit opportunity than domestic mkt E.g.. L&T enter in to Gulf country ? Company needs larger customer base to achieve economy of scale E.g.. RIL ? Wants to diversify E.g.. Wipro
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Risk factors: ? Company may not understand foreign customer preferences and fail to offer comparatively attractive product. ? Not able to understand business culture and dealing effectively with foreign nations ? Company might under estimate regulation and incur unexpected cost. ? Lack of Manager having global exp. ? Change in commercial law or devaluation of currency or undergo political revolution.
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Colgate introduced a toothpaste in France called Cue, the name of a notorious porno magazine. Not well received. Pepsi?s “Come alive with the Pepsi Generation” translated into “Pepsi brings your ancestors back from the grave,” in Chinese. Clairol introduced the “Mist Stick,” a curling iron, into Germany only to find that “mist” is slang for manure. Not too many people had use for the “manure stick.” General foods tang initially failed in France because it was positioned as substitute of orange juice at breakfast but French don?t drunk orange juice at breakfast
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? Huge foreign debt. E.g.. Mexico, Russia , Indonesia ? Unstable Gov. ? Foreign Exchange problem ? Bureaucracy ? Tariffs ? Corruption ? Technological pirating ? High cost of product and communication
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Before going abroad, the company should try to define its international marketing objectives and policies.
What Volume of Foreign Sales is Desired?
How Many Countries to Market In?
What Types of Countries to Enter? Choose Possible Countries and Rank Based on Market Size, Market Growth, Cost of Doing Business, Competitive Advantage, and Risk Level
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Entering Strategies.
? Water fall approach: Gradual entering in diff country one by one e.g. BMW, GE ,Benetton and Body shop ,Emway ? Sprinkler approach : Entering many counties simultaneously e.g. Microsoft
? Amway : 1971 Expanded Australia 1980 Expanded in 10 more countries Now in more than 80 countries
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Developed vs. Developing Mkt
? Developing Mkt is 80% of total world population ? Selling in developing area can?t be “business as usual ” as its having different economic and cultural environment in comparison with developed country. ? Developing country will lack in basic infrastructure like Rail , road ,ports etc. ? E.g.. Uniliver 1 Rs pouch is big hit in rural India where 70% of total population lives. ? When coco cola move to 200ml small bottle in India at Rs 5 ,sales jump like anything. ? In 1995 all mobile phones in China ware made by global giant Nokia ,Motorola , Ericson but within 10 year there mkt share dropped to 60% as China's domestic firms immerge as rivals.
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Free Trade Zones:
? SAFTA: South Asian Free Trade Area consist of seven countries namely Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri lanka.
? Agreement signed in 2004 and came into effect in 2006 ? Aim is to promote economic development of members by expanding investment, production opportunities and foreign exchange earnings. ? They are classified into two main categories; least developed countries and Non least developed countries India, Pakistan and Sri lanka ? Tariff was reduced by 20% and 30% for NLDC and LDC respectively
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? European Union: ? it consist of 25 countries ? It?s world single largest market with more than 454 million consumer account for 23% of world export ? Companies marketing in EU faces 14 different languages, 2000 years of historical and cultural differences. ? Formed in 1957 NAFTA(North American Free Trade Agreement): ? Formed in 1994 ? it consist of US, Mexico, Canada ? It has 360 million consumer base ? It has market of more than 6.7 trillion US$ ? All Trade barriers and investment restriction are eliminated among member countries
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Using aggressive promotional and educational programs, Colgate has expanded its market share from 7% to 35% in less than a decade.
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Exporting:
? Indirect: working through independent international marketing intermediaries. ? Direct: company handles its own exports.
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Joint Venturing:
? Joining with foreign companies to produce or market products or services.
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Approaches:
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KFC entered Japan through a joint ownership venture with Japanese conglomerate Mitsubishi.
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Direct Investment:
? The development of foreign-based assembly or manufacturing facilities. ? This approach has both advantages and disadvantages.
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Standardized Marketing Mix:
? Selling largely the same products and using the same marketing approaches worldwide. ? Standard Marketing mix has some pros and cons like Economies of scale in production, Lower marketing cost, Control, Uniformity of marketing practices, Ignore differences in consumer needs, Ignore differences in brand and product development Ignore differences in legal environment, marketing institutions, administrative procedure. ? Producer adjusts the marketing mix elements to each target market, bearing more costs but hoping for a larger market share and return.
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Adapted Marketing Mix:
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In India, McDonald’s serves chicken, fish, and vegetable burgers, and the Maharaja Mac—two all-mutton patties, special sauce, lettuce, cheese, pickles, onions, on a sesame-seed bun.
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Straight Product Extension:
? Marketing a product in a foreign market without any change.
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Product Adaptation:
? Adapting a product to meet local conditions or wants in foreign markets.
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Product Invention:
? Creating new products or services for foreign markets.
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Can use a standardized theme globally, but may have to make adjustments for language or cultural differences. Communication Adaptation:
? Fully adapting an advertising message for local markets.
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Changes may have to be made due to media availability.
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Companies face many problems in setting their international prices. Possible approaches include:
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International prices tend to be higher than domestic prices because of price escalation. Companies may become guilty of dumping –a foreign subsidiary charges less than its costs or less than it charges in its home market.
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? Charge a uniform price all around the world. ? Charge what consumers in each country will pay. ? Use a standard markup of costs everywhere.
Twelve European Union countries have adopted the euro as a common currency, creating “pricing transparency” and forcing companies to harmonize their prices throughout Europe.
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Organize an export department Create international divisions
? Geographical organizations ? World product groups ? International subsidiaries
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Become a global organization
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Introduction
The Coca-Cola Company was first established in 1886 by Dr John Styth Pemberton. Today, the company is the world's leading manufacturer in the beverage industry, operating globally in more than 200 countries with its head office located in Atlanta, USA. It produces more than 300 beverage brands and over 1.06 billion drinks are consumed per day.
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In India, Coca-Cola was the leading soft-drink till 1977 when govt. policies necessitated its departure. Coca-Cola returned to India in 1993 and over the past ten years has captured the imagination of the nation, building strong associations with cricket, the thriving cinema industry, music etc. Coca-Cola has been very strongly associated with cricket, sponsoring the World Cup in 1996 and various other tournaments, including the Coca-Cola Cup in Sharjah in the late nineties.
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Coca cola owns more than ½ of the world?s beverages Coke was first advertised as a remedy for headaches and exhaustion Coke has been advertising on television for 60 years donated $10 million to tsunami relief efforts in Asia First bottle of Coke was sold 120 years ago on May 8, 1886 in Atlanta, Georgia. Coke is a Kosher drink, so it is sold internationally. Approximately 10,450 Coca-Cola brand drinks are consumed around the world each second of every day Coca-Cola sold only 25 bottles in the first year nowadays, they sell over one billion bottles per day
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In July 1985, Coke was the first soft drink to be enjoyed in outer space on the space shuttle Challenger. A special space can was developed If you stacked all of the bottles of Coke that had ever been made end to end, it would reach to the moon and back 1,045 times! The sales of Coke in the first year was $50, and the expenses were $70 In 1998 Coke international created its first ad for the celebration of the Muslim holiday of Ramadan. It was run in 20 countries worldwide
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The biggest competitor of coke is PepsiCo. other from Pepsi there are many players in this industry like juices, natural drinks but coke and Pepsi dominate 95% of the market. During the last 4 to 5 years, the turn over has touched a mark of 7000 crore and is heading for 8000 crore mark. Soft drink consumption is growing by around 7% to 8% a year, according to the publication Global Soft drinks 2009, total volume reached 412,000 million litres in 2008, giving a global per capita consumption of around 67.5 litres per year. Almost 19% of the population consume soft drinks. In India, the leading players are Coca cola and Pepsi, who holds a strong market share. Coca cola contributes to 58% market share whereas Pepsi holds 42% market share.
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The Coca-Cola Company has nos. of brands like thums up, sprite. But if we talk about coca cola as a product it has sub products like Diet Coke, Caffeine Free Coke, Cherry Coke Coca-Cola Zero, Vanilla Coke and special editions with lemon and with lime, and even with coffee. They introduced other cola drinks under the Coke brand name. The most common of these is, which has become a major diet cola is diet coke. But we find only diet coke and vanilla coke in India. Multi branding is the branding strategy used by Coca Cola company for its different products.
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“ Quality Is Our Highest Business Objective ”
This is the statement given by the company.
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In 'blind' taste tests, people prefer the taste of Pepsi over the taste of Coke. However, if the test is not 'blind' and the tasters know which beverage is which, they prefer the taste of Coke over Pepsi! That is the emotional power of a brand. The CocaCola brand has the power to actually change an individual's taste Coca-cola is the no.1 brand in the world Coca-Cola is recognized by 94% of the world?s population. Guinness World Record ranked coca cola as the most popular soft drink
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The famous Coca-Cola logo was created by John Pemberton's bookkeeper, Frank Mason Robinson, in 1885. It was Robinson who came up with the name, and he also chose the logo?s distinctive cursive script. Coca cola has two registered trade marks as shown below.
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The packaging of have been always very attractive and different from others, as we can also see in the bottles below. Even the 600 ml bottle has a different kind of packaging. The first shape that was registered was of the coca cola bottle
Advertisement
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Glass
200 ml, 300 ml, 500 ml, 1000 ml
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500 ml, 1.5 L, 2L
Can
330 ml
Fountain
Various Sizes
In 2002, the Coca-Cola Company extended the products of Coke and developed the new products Coke with lemon and Vanilla Coke. This extension responded to consumer demands and generated sales and profit. It also launched innovative product like diet coke which was then also copied by their competitors but they didn?t succeeded.
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Psychological Pricing : Most of the Coca-Cola products use this method of pricing. For example, for a pack of 5 cans of Coca-Cola soft drinks it is priced at Rs.99 instead of Rs.100 this pricing strategy makes consumers perceive the products to be cheaper. When coca cola entered into Indian market it used penetration method. In India it started with low price, its price in India was just Rs 5 in the year 2003 with an intention to occupy Indian rural market, which is almost 90% of the population. Coca cola also follows going rate policy as the price of its major competitor Pepsi.
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Advertising : The Coca-Cola Company uses advertising as its main source of increasing consumer awareness. It mainly uses television for advertisement. There are many television advertisements on Coca-Cola products. This source allows the company's products to reach a large audience. The latest television advertisement for Coca-Cola soft drinks was Aamir khans ` hum same same' advertisement. One of the older one are `thanda matlab coca cola' & „Manu bhabhi?.
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Other from this it also advertises on radio for e.g. “thanda matlab coca cola”, “life ho toh aisi” and many other. For radio advertisement they mainly use the proverbs only.
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Ads
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India A : “Life ho to Aisi”
“India A,” the designation Coca-Cola gave to the market segment including metropolitan areas and large towns, represented 4% of the country?s population. This segment sought social bonding as a need and responded to inspirational messages, celebrating the benefits of their increasing social and economic freedoms. “Life ho to Aisi,” (life as it should be) was successful and relevant tagline found in Coca-Cola?s advertising to this audience.
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India B : “Thanda Matlab Coca cola”
Coca-Cola India believed that the first brand to offer communication targeted to the smaller towns would own the rural market and went after that objective with a comprehensive strategy. “India B” included small towns and rural areas, comprising the other 96% of the nation?s population. This segment?s primary need was out-of-home thirstquenching and the soft drink category was undifferentiated in the minds of rural consumers.
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Coca cola at every stage has done sales promotion. If you must have remembered the Aish Cash offer of coca cola which was a big success now also a new offer have come into market, which is there for all products of coca cola. Now they have started a new “sms and win offer” which will soon hit the market.
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Indirect Distribution
Coca-Cola Company uses intermediaries in its distribution. That is, the company does not sell its products directly to its consumers. The Coca-Cola Company uses the intensive distribution strategy. The business's products are sold in almost every outlet including: · retail outlets · small shops · restaurants · petrol stations · newsagents · schools · sports and entertainment venues· from vending machines.
Company warehouses ? whole sellers ? retailers ? consumers.
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Company plans to grow their outlet base by 100,000 outlets next year to 6,00,000 outlets and will not stop growing that base until they are truly "within arm's reach of desire". The company had opened 50,000 new outlets in the first two months of this year, as part of its plans to cover one lakh outlets for the coming summer season. The new outlets also covered 3,500 new villages.
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Strength
Strong brand name – known by 94% of world Corporate identity – since 1880?s Global distribution – more than 200 countries Advertisement – very attractive Innovation – diet coke, vanilla coke etc. Local approach – maintain purely visible Strong R&D Backward integration – company owned bottling Brand loyalty Financial stability
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Weakness
Not No. 1in India – First Pepsi & Second coke owned Thums up Market share – less in India Under utilization of capacity Sales in India – 6 bottles per capita/year, in Mexico 533 bottles per capita/year Pesticide scandal
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Opportunities
Possible growing demand in India per capita Developing global brand Coca cola?s bottling system – most of the bottling companies are under the control of coke Sufficient capital Has a potential – to innovate & differentiate Expansion in to new market – other than soft drink market
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Threat
Competition with Pepsi Pesticide matter Change of taste of their consumers Consumers are not necessarily married to it Increase its advertisement budget
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McDonald's Corporation is the world's largest chain of fast food restaurants, serving nearly 47 million customers daily through more than 31,000 restaurants in 119 countries worldwide
It is the ninth most valuable brand in the world Total emp of McDonald is more than US Arm force Controls the market share of more than 3 food chains taken together in America
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Their first restaurant opened on 15th April 1955 in Des Plaines, Illinois, U.S.A. more than 50 years down the line McDonald's opened its doors in India in October 1996. Ever since then, their family restaurants in Mumbai, Delhi, Pune, Ahmedabad, Vadodara, Ludhiana, Jaipur, Noida Faridabad, Doraha, Manesar and Gurgaon have proceeded to demonstrate, much to the delight of all our customers, what the McDonald's experience is all about.
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McDonald?s in India is a 50-50 joint venture partnership between McDonald?s Corporation [USA] and two Indian businessmen.
Amit Jatia?s company Hardcastle Restaurants Pvt. Ltd.
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Vikram Bakshi?s company Connaught Plaza Restaurants Pvt. Ltd
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McDonald's India's local suppliers provide us with the highest quality, freshest ingredients. Complete adherence to the Indian Government regulations on food, health and hygiene is ensured, while maintaining their own recognized international standards. Fast, friendly service - the hallmark of McDonald's restaurants the world over is the mantra we abide by.
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•Growth in Personal Income: The increase in buying
power
•India's per capita income has increased by over 20 percent from 1992 to 1996. • Shrinking Household Size: •number of households in middle, upper and high-income categories has grown by more than 12 percent annually. These households have higher disposable income per member and have a greater propensity to spend on food. Urbanization: •Approximately 50 percent of high, upper and middleincome group Indian consumer households reside in urban areas.
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Growing Number of Women in the Workforce: • Over 16 percent of the population of Indian women work full-time and spend most of their time away from home. away from home. •Menu Diversification: •High-income Indian consumers are seeking variety in their choice of food. Urban Indian consumers are aware of various international cuisine (e.g. Continental, Chinese, Mexican, Italian, Thai, and Japanese) and an increasing number are willing to try new foods
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Health professionals and consumer activists accuse McDonald's of contributing to the country?s health issue of high cholesterol, heart attacks, diabetes, and obesity. • The relationship between corporate level McDonald's and its franchise dealers. • McDonald?s competitors threatened market share of the company both internationally and domestically. • Anti-American sentiments. • Global recession and fluctuating foreign currencies. • Fast-food chain industry is expected to struggle to meet the expectations of the customers towards health and environmental issues.
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McDonald's India has developed a special menu with vegetarian selections to suit Indian tastes and preferences. McDonald's does not offer any beef or pork items in India. Only the freshest chicken, fish and vegetable products find their way into our Indian restaurants. In addition, they have re-formulated some of their products using spices flavored by Indians. Among these are McVeggie™ burger, McAloo Tikki™ burger, Veg. Pizza McPuff™ and Chicken McGrill™ burger.
Marketing Mix
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A very popular punch line of McDonald “ Aap ke zamame main ,baap ke zamane ka daam”
The main reason of this price strategy was to attaract the middle class and the lower class of people Value Pricing Happy meal-samll burger ,coke+toy Maharaja Mac meal Rs 95
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The 80-20 Menu Board:
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Even the menu counter in the outlet are a marketing tool , it should be design such a way it can attract customer
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McDonalds have menu board that are descriptive as well visual. They call it the 80-20 menu board eight 80% visual and 20% descriiption Other strategies are
? ? ? ? Collobration with coke,MTv , Sony Music Scratch card on large jumbo meals. Price, T-shirts, Free-ticket to luck All?s contest Purchase of 2 meals in a month qualified for Opel Corsa
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MacDonald has opened its restaurants in residential areas so that senior citizens would not find any problem Open restaurants in mall and multiplexes to attract young generation.
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1. Increase its product line. 2. To have more variety to choose from, to include more deserts and more items like Pizza McPuff. 3. To provide better and quick service. 4. Lower the supply chain cost so that it helps in cost reducing. 5. To expand their Happy Meal choices to attract and retain customers. 6. To educate about healthy lifestyle. 7. Introduction of McCafees serving premium and specialty coffees and other beverages and other products such as cakes, pastries etc in the existing McDonald’s. 8. Provide with better ambience. 9. Focus on gifts for all generations i.e. youth, kids’ especially senior citizen which is a completely new concept. 10. Special promotions during festivals. 11. Increasing the space for provision of birthday party areas. 12. Try to sponsor college festivals. 13. Work for social welfare of the society
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MM Mithaiwala is one of the oldest fast food firm operating in Mumbai which has all the ingredients of becoming an international brand. MM Mithaiwala works on the principle of developing profit centers whereby all the work is handled by professionally qualified people responsible for their respective departments. There Philosophy has always been customer satisfaction and they believe that a satisfied customer is a customer for life.
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M.M.Mithaiwala is a producer of Indian sweets, snacks and is also into retailing outlets, restaurant business, and fast food and lassi centers. M.M.Mithaiwala supplies to Industrial Canteens, Hospitals, Flight Kitchens, and Hotels. They also supply to caterers organizing marriages and other social functions in the city. They have established high quality performance standards like Punctuality, Great Service, Good Quality Food, Hygiene and Commitment to the customer. This is the essence of their success. Unique Selling Point (USP): The best product with traditional taste and service sold at the best prices with best ingredients in the most hygienic condition.
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M.M.Mithaiwala was started as a Joint Family Catering Business in 1946. (A pioneering family since pre-independence).Ten family members worked together full time to build the business from its humble beginnings. The business was established at Malad, Mumbai in 1951 at Gupta Market by Shri Chandrabhan Nathanlal Gupta.
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To be true to the customers by serving best quality food in the most hygienic conditions, at highly affordable prices along with great service There VISION is to retain the old principles and values at the same time make the business grow. They are always improving there infrastructure, day-to-day operations, hygiene conditions, manufacturing units, welfare of the staff, safety measures, marketing and distribution.
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Air India Bharat Petroleum Corp Ltd (BPCL) Hindustan Petroleum Corp Ltd (HPCL) ICICI One Source Indian Oil Corporation Oil and Natural Gas Corporation (ONGC) Reliance Industries Bhabha Atomic Research Center (BARC) Bombay Electric Supply & Transport (BEST) Glaxo India Ltd. Hotel Sea Princess Sahara India
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M.M.Mithaiwala strongly believes in the best practices for production, storage and distribution. Our skilled and professional staff is trained to handle our delivery department from order taking to timely delivery of the finished products. Our system has been tuned for efficient and punctual delivery at any location. Our products are delivered fresh and packaged in properly designed materials taking into account the shelf life, the shape and the texture of the product. Before delivery we thoroughly understand our customers? consumption pattern and accordingly we plan our packaging and delivery. We make sure that the products are fresh when served to customers.
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Pricing Policy: - As all the products of MM Mithaiwala are well known and widely accepted by the customers, Penetrating strategy is used i.e. Fair prices with Quality Products Discounts: - Discounts are provided only when there is a large / bulk order or for a corporate order. On Special occasions like festivals 10% to 15% discounts are given. Terms of Delivery: - Free home delivery of some products like Sweets if in bulk quantity. Payment Terms: - Cash
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Advertising: - Advertising is done through Hoardings outside Malad Station. Display: - Display of Products all along the Railway Station & in the interiors.
Publicity: - Mouth to Mouth Publicity
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SCANNING THE ENVIRONMENT
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Political Stability ? The legal system is a composite of English laws and the French Code Napoleon. Free and fair elections are held every five years. Mauritius is a Parliamentary democracy governed under the constitution of 1968, as amended in 1992. The president, who is the chief of state, is elected by the national assembly for a five-year term. The prime minister, who is the head of government, is appointed by the president, as is the council of ministers. The unicameral legislature consists of a 70-seat national assembly; 68 members are elected and, and eight, representing ethnic minorities, are appointed by the president.
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Strong Economy
? It has emerged from a monoculture economy based on sugar cane to a diversified economy resting on four main pillars, namely agriculture, export processing industries, tourism and financial services. The information and communication technology (ICT) sector is now being developed as a fifth pillar. State-of-the-art physical infrastructure, comfortable foreign exchange reserves.
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Qualified Work Force
? Mauritius has a literacy rate of over 86 %. A large pool of well-educated and easily trainable young people is ready for the labour market. A skilled and bilingual (English / French) workforce, The labour laws and remuneration orders are available from the Ministry of Labour & Industrial Relations and the Mauritius Employers Federation (MEF).
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Developed Infrastructure
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Attractive Incentives
? The government has invested heavily in infrastructure. Mauritius is today endowed with a developed and well-maintained road network, a modern international airport, a well-equipped sea port, state-of-the-art telecommunications, serviced land and new generation business parks. ? The whole island is supplied with electricity, water and telephone lines. Electric power and water supply are stable. ? The Government pursues a liberal foreign investment policy and offers attractive fiscal and non-fiscal incentives for the development of all sectors of the economy. Incentives offered can be in the form of reduced corporate tax, exemption of customs on equipment and raw materials, preferential loan rates and reduced tariffs for electricity and water.
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? Moreover, dividends paid to shareholders are taxexempt. Free repatriation of profits, dividends and capital is allowed.
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Physical Location ? Mauritius is a volcanic island in the Indian Ocean lying in the east of Madagascar and southwest of India. Almost 11 times the size of Washington, DC, With about 600 people per square kilometer. ? Mauritius has one of the highest population densities in the world. There is no monsoon season, though cyclones hit the island every 15 years or so between November and May.
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Tourist Attractions of Mauritius
? Port Louis is the bustling capital of Mauritius of about ? 1, 38,000 people and a leading port. During the day, it bustles with big-city commercial activities, while at night in contrast all the activity takes place at the swish new Le Caudan Waterfront, where you can enjoy casino, cinemas, shops, bars and Restaurants.Its harbourside location is world-class.The wonderful Pereybere public beach is also popular due to its shopping facilities, restaurants and pubs. ? Celebration of almost all the Hindu festivals in this island is a common phenomenon. Festivals like, Teemeedee, Thaipoosam Cavadee, Diwali, Pongal, Mahashivratri, New Year, Holi, Independence and Republic days are celebrated here.
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Important Festivals and Exhibitions
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Culture and Lifestyle
? Mauritius accounts a 63% of Indian majority of which 80% follow Hinduism. Roughly every other fifth person is Muslim.. The remaining population is of Créoles, descendants of African slaves, and Franco-Mauritians, the original settlers of the island. English is the official language of the island, though you may also hear French, Créole and also Indian languages like Bhojpuri and Urdu.
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Food Habits
? The eating habits of the Mauritians inevitably reflect the ethnic diversity of its people: Creole rougailles, Indian curries, Muslim bryanis, Chinese sweet-and-sour pork, French delicate dishes, English bacon and eggs, ...... you name it, you?ll get it there.
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Economic Environment of Mauritius
? Mauritius has developed from a low-income, agriculturally based economy to a middle-income diversified economy with growing industrial, financial, and tourist sectors. Some other Vital Info of there Economy…
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GDP - per capita: purchasing power parity - $13,300 (2005 est.) GDP - composition by sector: agriculture: 6.1%; industry: 29.9%; services: 64% (2005 est.) Unemployment rate: 10.5% (2005 est.) Population below poverty line: 10% (2001 est.) Fiscal year: 1 July - 30 June
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Exports - partners: UK 33.1%, France 20.4%, US 14.8%, Madagascar 5.1%, Italy 4.1% (2004) Imports - partners: South Africa 11.3%, China 9.4%, India 9.3%, France 9.2%, Bahrain 5.3%, Japan 4.1% (2004) Regulatory Body in Mauritius
? Under the Mauritius Financial Services Development Act 2001, the regulating authority with regard to offshore matters is the Financial Services Commission (FSC). It is expeditious and efficient in approving applications to incorporate companies in Mauritius. The FSC has also been careful not to forsake standards in satisfying the flexible demands of offshore customers whilst protecting the investor and preserving the excellent reputation of Mauritius as an International Financial Services Centre.
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M.M.Mithaiwala strongly believes in the best practices for production, storage and distribution. Our skilled and professional staff is trained to handle our delivery department from order taking to timely delivery of the finished products. Our system has been tuned for efficient and punctual delivery at any location. Our products are delivered fresh and packaged in properly designed materials taking into account the shelf life, the shape and the texture of the product. Before delivery we thoroughly understand our customers? consumption pattern and accordingly we plan our packaging and delivery. We make sure that the products are fresh when served to customers. To avoid contamination and spreading of bacteria we ensure that our packaging is properly sealed and stored correctly maintaining the right temperature required.
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Pricing Policy: - Skimming policy (High Price & High Quality) at the beginning stage and then as the product is accepted Penetrating strategy can be used i.e. Low prices with Quality Products Level of Prices: - Different prices for each product with Standard price levels Discounts: - Discounts are provided only when there is a large / bulk order or for a corporate order. On Special occasions like festivals 10% to 15% discounts are given. Terms of Delivery: - Free home delivery of some products like Sweets in bulk quantity. Payment Terms: - Cash
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Advertising: - will be done locally with use of FM Radio Stations, Hoardings, Banners, giving sponsorships, etc Sales Promotional Activities: - Giving Incentives to the Staff, Free food to the people, Free Gifts to the Corporate Clients, Launching New Schemes for regular customers, etc Display: - Display of Products all along the road & in the interiors. Publicity & P.R.: - Mouth to Mouth Publicity with a Special person appointed for handling public relations.
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Global marketing strategies have to respond to the twin needs of global standardisation and local customisation. In their quest to maximise local responsiveness, companies should not overlook opportunities to standardise and cut costs. On the other hand, an excessive emphasis on generating efficiencies through a standard marketing mix may result in the loss of flexibility. The challenge for global marketers is to identify the features which can be standardised and build a core product. Then customised offerings can be designed around the core product for different markets. In real life, striking the right balance between standardisation and customisation can be extremely challenging.
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Marketing Management – Philip Kotler Global Marketing Management – Warren Keegan www.google.com www.youtube.com www.cocacola.com www.mcdonals.com www.mbajunction.com www.managementparadise.com Other Internet sources
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A LITTLE PUSH IN THE RIGHT DIRECTION CAN MAKE A BIG DIFFERENCE…..
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