International Marketing Lecture 6

International Marketing 463-441

Case Studies

Bangkok Hospital

Medical tourism worth USD $4 Billion (2012 projection)

One of Asia’s fastest growing industries

1.3 million customers to locations like Thailand

Healthcare in Thailand 50% cheaper than Singapore, 3 times cheaper thanHong Kong, 5 times cheaper than Europe.

Thailand considered “First class service at Third World prices” CBS

Bangkok Hospital one of the best in Thailand

From 1972 expanded from one hospital to 12 hospitals, 16 specialistCentres and 15 clinics.

Eight other facilities in Cambodia, Myanmar and Bangladesh

Positioned as the convenient and integrated healthcare solution

Bangkok Hospital

Thailand’s convenient andIntegrated healthcare

solutions

Wide network of hospitals in the countryWide range of healthcare services

offered

Positioning Differentiation

Brand

Bra

nd Im

ageB

rand Indentity

Brand Integrity

Positioning-differentiation-brand triangle of Bangkok Hospital

The Extent of International Involvement

Internet

Exporter

Importer

Distributor

Direct Sales

Licensing & Franchising

Strategic Alliances

Joint Ventures

Direct Foreign Investment

Exp

ortin

g

Contractual Arrangements

Strategic Alliances

Ownership

Greater Control

AndGreater

Risk

Cateora & Graham P. 323

Market Segmentation

Identify bases for segmenting the market

Develop segment Profiles

Market Targeting

Develop Measure of segment attractiveness

Select target segment

Market Positioning

Develop positioning for market segments

Develop a marketing mix for each segment

Major Segment Variables for Consumer Markets

Geographic VariablesWorld Region and/or country

City and/or regionDensityClimate

DemographicAge, gender, family size, family life cycle, income, occupations, education, religion, race, generation, nationality

PsychographicSocial class, lifestyle, personality

BehaviouralTypes of occasions and festivals, existing market cultures, user status, loyalty status,

concept readiness stage, attitude towards products

Existing Product Sales, Market share, Growth and Decline,Relative market sizes, etc.

Strategic Option Comment

1 Product and marketing practice extension

Using the same strategies everywhere

2 Product extension marketing adaptation

While using the same products everywhere, using marketing strategies according to local market characteristics

3 Product adaptation marketing extension

While using the same marketing strategies, adapting the product offering according to market needs

4 Dual adaptation Adjusting the product and marketing strategies according to market needs

5 Product and market invention Innovating a new product and developing a new marketing strategy for it in each market

Generic Global Marketing Strategies

Keegan, W., Global Marketing Strategies, Prentice Hall, NJ, 1999

High(Global Scale)

Minimum Size of Production

Low(Local Scale)

Similar(Global Segments)

Different(Local Segments)

Customers’ Needs Around the World

Global Product Standardisation Types

Global StandardisationAircraft

MicroprocessorsBasic ChemicalsPulp and Paper

Examples: BASF, Dell, Intel

Modular standardisation and multi-brands

ElevatorsIT services

Beer

Examples: OTIS, Heineken

Process standardisationCement

Examples: Siam Cement

Local AdaptationFoods

Consulting services

Example: McDonalds, Carrefour

Bu

ye

r P

ow

er, e

g:

buyer choice

buyers size/num

ber

change cost/frequency

product/service im

portance

volumes, JIT

scheduling

Ne

w M

ark

et

En

tran

ts, e

g:

geographical factors

incumbents

resistance

new entrant strategy

routes to market

Com

petitive

Rivalry, eg:

number and size

of firms

industry size and trends

fixed v variable cost bases

product/service ranges

differentiation, strategy

P

rodu

ct/Tech

nolo

gy

Develop

men

t, eg:

alternatives price/quality

market

distribution changes

fashion and trends

legislative effects

Su

pp

lier P

ow

er,

eg

:

brand reputation

geographical coverage

product/service level quality

relationships with

customers

bidding processes/capabilities

Figure 7. Porter’s Five Forces of Competitive Position

Trends

Regulation

• What segment does the company focus?• Who is the company targeting?• Selling method?• Marketing mix?• Positioning?• Differentiation?• Service?• Process?

Royal Selangor

Commenced in 1885 for local Chinese market and expanded into Other products during British Colonial period, with export to UK

Now produces range of prestigious products including medals for Malaysian Grand Prix and Sydney 200 Olympics

1970s export to Singapore, Hong Kong, Australia, and then onto Europe.Now export 20 countries with number of exclusive distributors, including

Harrods, Mitsukoshi, Myers and David Jones. Also exclusive shops inAustralian Malls, Canada, Hong Kong, Indonesia, Japan, New Zealand, UAE,

Thailand and US.

Commissioned designers to create works

Develop technology with Australian company to produce feature walls

Positioned as Malaysia’s gift to the World, created wonderful shopping experienceWith first class service, e-sales via internet.

Still hand cast products with some tradition

Skilled craftsmen with extensive distribution network

Royal Selangor

The World’s most innovative Pewter crafter

Wide range of innovative productsHighly skilled craftsmen

Wide distribution networks


Brand

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Brand Integrity

Positioning-differentiation-brand triangle of Royal Selangor

San Miguel

Started in 1890, first official brewery in Spanish occupied Philippines and all of S. E. Asia.

Began exporting to Guam, Hong Kong and Shanghai

Opened brewery in Hong Kong in 1948

One of the top 20 beer brands in the World

Now diversified and produces a wide range of food and beverage products

Now manufacture in Vietnam, Indonesia, Thailand, China and Australia

Beer accounts for around 75% of the corporation’s profits and 80% of its sales from the Philippines

90% beer market share in Philippines, 87% of soft drinks, 60% processed meatAnd 40% of poultry

In Thailand paid US $100 million for Thai Amarit

Own Anker bir in Indonesia

Technology through international partnerships

Equity injection from Japan’s Kirin Beer

Partner in Australia J Boag & Son, put it in premium beer market

24% share in China beer market acquiring Guandong Brewery in 94 – Dragon and Valor

Bada Baoding Brewery in Northern China – Blue Star

30 different beer labels to suit various tastes

San Miguel

The unofficial beer of the Philippines with

World-class quality

High quality brewingLarge distribution network


Brand

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rand Indentity

Brand Integrity

Positioning-differentiation-brand triangle of San Miguel

Black Canyon

Established in 1993

120 locations in Bangkok and other cities in Thailand

Old West cowboy theme

Shopping malls, airports, hospitals, train stations, convention centres2002 opened 4 outlets in Malaysia, 4 in Indonesia, one each in

Singapore, Myanmar and Cambodia.Also 4 branches in Middle East

Full restaurants, mini-restaurants and kiosks

Some franchises

Buy from King’s project in Chang Mai

Both East and Western Cuisines (different from other chains)

Mixed fusion cooking

Also bakery

Value for money principal

Member card system

Continues to innovate and reinvent itself

Black Canyon

Food houses that combine East and West

Extensive Western and Asian specialtyWild West name and décor

Large chain of outlets


Brand

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Brand Integrity


Kinokuniya

Founded in 1927, a leading chain of bookstores in JapanWith 58 domestic and 22 overseas stores

Stores that are open and sparseAlso on-line sales

1964 expanded over Japan and opened first overseas store in San Francisco (to serve Japanese community)

Later expanded to other US cities

1983 opened first Asian store in Singapore

Then Taiwan, Malaysia, Thailand, Indonesia and Australia

Customer service

Sees itself as ‘a service provider of knowledge and the joy of discovery’

Creative local marketing in each country

Focus on a number of market segments

Because of large range it serves corporate customers different fromOthers

Kinokuniya

Leading provider of information and cultural readings

Wide categories of books and other readings

Book buying experienceNetworks of bookshops


Brand

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Brand Integrity


Air Asia

No previous experience of running an airline except for;Knowing what budget air travelers want

Knowing what makes a business profitable

Dominated by traditional full-cost airlines, air transport slump after 9/1, a sector in loss

situation and retrenchment

With changing demands of consumers due to higher incomes became profitable in the first two years

Took customers away from trains and buses

Now a regional low cost airline

Had to overcome regulation

2004, JV with Shin Corporation to form Thai Air Asia

Bought into Awair and formed Indonesian Air Asia

Strategy to keep costs low with high aircraft utilisation and fast turnaround rate

Income: airfares, food sales, air cargo, corporate tie ups

Motivated workforce

Open office to reduce “power-distance”

Secondary airports – lower fees and costs

Internet sales

Air Asia

No frills and fun low cost carrier Low cost structureFun internal culture


Brand

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Brand Integrity


International Marketing Lecture 6

Education

Transcript of International Marketing Lecture 6