...Viswanathan, N. & Dickson, P. 2007, ‘The fundamentals of standardizing global marketing strategy’, International Marketing Review, vol. 24, no. 1, pp. 46-63. Introductory Academic Program – Academic English The issue of standardisation versus adaptation, which affects all international business organizations, continues to evolve as markets and technologies develop further. In the article ‘The fundamentals of standardizing global marketing strategy’ (2007), Viswanathan and Dickson contribute to the discussion by examining the considerations related to the standardisation of a multinational company’s marketing practices. The authors subsequently propose a new theoretical framework that identifies three complex drivers to be considered in evaluating the degree of marketing standardisation possible: the similarity of consumer response to the marketing mix, the transmissibility of competitive advantage, and similarities in the amount of economic freedom in different markets. The article imparts perceptive insights on the latter two drivers, which, according to the literature review, have been relatively ignored by researchers in comparison to the role of consumers. This critical review assesses the structure and practicality of the proposed conceptual framework, as well as the comprehensiveness of the authors’ exploration of the issue. The proposed theoretical model, intended for the use of marketing practitioners as an instrument in decision-making, appears reasonably sound,...
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...I. INTRODUCTION 1.1 Purpose of the Study The purpose of this study is to conduct a critical analysis and evaluation of the market value drivers which in this paper will refer to Aveda Corporation operating in personal care industry. The author will examine both marketing operations and strategic approach perspective to create customer value through differential advantage from comparable offerings in the same market. After comprehensive evaluation, the paper will determine opportunities and draw appropriate recommendations via Value-Driven Marketing approach for future development of the organisation in order to sustain competitive advantage within the industry. 1.2 Industry Context According to Euromonitor latest research, the beauty industry worldwide value was estimated at $426 billion in 2011 (Euromonitor, 2012). Porter (1980) states that within broad industries, subgroups exist in the form of strategic groups, which face their own unique set of competitive rules. In the case of Aveda, the company operates in natural and organic market which is $14 billion worth niche group of the broader personal care product industry. II. AVEDA - THE CORPORATE STRATEGY PERSPECTIVE 2.1 Aveda Corporation - the company background. Aveda Corporation (Aveda) is Minneapolis based manufacturer, established in 1978 by Horst Rechelbacher and it has been operating in the personal product care industry. Aveda offers a line of over 700 premium professional and consumer, plant-derived...
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... or marketing-oriented CEO: How do I manage the brand? How will my customers react to changes in the product or service offering? Should 1 raise price? What is the best way to enhance the relationships with my current customers? Where should I focus my efforts? Business executives can answer such questions by focusing on customer equitythe total of the discounted lifetime values of all the firm's customers. A strategy based on customer equity allows firms to trade off between customer value, brand equity, and customer relationship management. We have developed a new strategic framework, the Customer Equity Diagnostic, that reveals the key drivers increasing the firm's customer equity. This new framework will enable managers to determine what is most important to the customer and to begin to identify the firm's criticai strengths and hidden vulnerabilities. Customer equity is a new approach to marketing and corporate strategy that finally puts the customer and, more important, strategies that grow the value of the customer, at the heart of the organization. For most firms, customer equity is certain to be the most important determinant of the long-term value of the firm. While customer equity will not be responsible for the entire value of the firm (e,g,, physical assets, intellectual property, and research and development competencies), its current customers provide the most reliable source of future revenues and profits. This then should be a focal point for marketing strategy...
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...VALUE CHAIN ANALYSIS A) Discussion of the core elements of a value chain. (8 marks) B) Explanation of why an understanding of these elements is so important in managing costs and gaining or sustaining competitive advantage. Establish all important linkages in your answer. (12 marks) The value chain analysis is a useful tool for defining a firm’s core competencies and the activities in which it can pursue a competitive advantage. The core elements of a value chain analysis are the primary and secondary activities and cost. Companies use these primary and support activities as "building blocks" to create a valuable product or service. The Primary activities relate directly to the physical creation, sale, maintenance and support of a product or service. The primary activity and cost is where the value for customers and their purchasing decisions are directly influence and created by these functions. These activities are inbound logistics, operations, outbound logistics, marketing and sales, and service. Inbound logistics: For the production and development activities, organizations need inputs as goods which are received from the suppliers. Inbound logistics refer to all the activities related to receive goods from the suppliers, decision about the transportation scheduling, storing the goods as inventory, managing the inventory, and make the inputs ready to use for the production of end products. Operations: Operation is the process of transforming input activities...
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...the Chief Marketing Officer for Aerosphere Airlines, a Flemish company that hires private jets. He worries about how to maintain a marketing edge against his main competitors, Dynasty Airlines, Shark Airlines, and Ultra Airlines. Aerosphere, Dynasty and Ultra have similar business models, reflecting a higher concern for service, and Shark positions itself more as a low-price, low-cost carrier. The four companies operate from airports in Belgium and offer flights within Europe. The total size of the market for flights in private jets in Belgium is estimated at 20.000 customers. Mainly companies who choose to hire a private jet, rather than buying or leasing their own corporate jet. To figure out the current competitive position of the airlines, and to help set strategy, Schneider commissioned a customer equity study of the industry. This began with focus group interviews with customers to figure out the drivers of Value Equity, Brand Equity and Relationship Equity. Based on the focus groups, Schneider came up with the customer equity driver diagram shown in exhibit 1. The identified drivers and sub-drivers were: Drivers of Value Equity ▪ Quality of cabin service (“cabserv”) ▪ Passenger compartment comfort (“passcomp”) ▪ Price (“price”) Drivers of Brand Equity ▪ Attitude toward the airline (“aatt”) ▪ Awareness of the airlines advertising (“aad”) Drivers of Relationship...
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...EXECUTIVE SUMMARY emotive intends to become the first global, provider of unique experiential marketing solutions to the automotive and motorsports industries. emotive creates and executes automotive based experiences for the world’s leading car manufacturers and corporations , operating in one of the fastest growing marketing environments - direct consumer experiences. In an increasingly competitive market, automotive sales are in decline . Manufacturers need ever more compelling methods to conquest the consumer. The emphasis on traditional advertising by these companies has changed with a far greater emphasis on direct consumer marketing. Experiential marketing’s unique ability to reach , engage and make relevant connections with consumers has contributed to its growth in this climate with significant year on year increase predicted . The reason is simple; it works, it is measurable, it sells cars and adds value to brands. emotive programs take many forms, from the sales-generating consumer driving events to the thrill-seeking sports & race car driver training and the educational (teen driving programs) to custom designed programs that satisfy the client’s objectives. emotive is uniquely positioned to change the way people interact with cars, collaborating with clients, CEOs, marketing managers, consumers, safety experts, engineers and drivers to develop compelling experiences in an era of increased consumer control and desire for authenticity. The group has brought...
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...MM S p r i n g 2001 C o n s i d e r t h e i s s u e s facing a typical brand manager, product manager, or marketing-oriented CEO: How do I manage the brand? How will my customers react to : r changes in the product or service offering? Should 1 raise price? What is the best way to enhance the relationships with my current customers? Where should I focus my efforts? Business executives can answer such questions by focusing on customer equitythe total of the discounted lifetime values of all the firm's customers. A strategy based on customer equity allows firms to trade off between customer value, brand equity, and customer relationship management. We have developed a new strategic framework, the Customer Equity Diagnostic, that reveals the key drivers increasing the firm's customer equity. This new framework will enable managers to determine what is most important to the customer and to begin to identify the firm's criticai strengths and hidden vulnerabilities. Customer equity is a new approach to marketing and corporate strategy that finally puts the customer and, more important, strategies that grow the value of the customer, at the heart of the organization. For most firms, customer equity is certain to be the most important determinant of the long-term value of the firm. While customer equity will not be responsible for the entire value of the firm (e,g,, physical assets, intellectual property, and research and development competencies), its current...
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...5. Internal marketing. Employees as internal customer are important as external because they who deliver the service and business vision and values. So, we should aligned employee values with customer values to get progress “the more the values of the staff and consumers concur with brand values the more likely the brand is to succeed.” (Walton Hall & Milton Keyenes, 2000). Thus, we have to work on the same values and make it easy for our staff as well. In other words, the Internal Marketing concept deeply aim to treat employee like customers and connect them emotionally with the brand "internal marketing is used to refer to the activities an organization must implement in order to woo and win over the hearts and minds of its employees...
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...the Chief Marketing Officer for Aerosphere Airlines, a Flemish company that hires private jets. He worries about how to maintain a marketing edge against his main competitors, Dynasty Airlines, Shark Airlines, and Ultra Airlines. Aerosphere, Dynasty and Ultra have similar business models, reflecting a higher concern for service, and Shark positions itself more as a low-price, low-cost carrier. The four companies operate from airports in Belgium and offer flights within Europe. The total size of the market for flights in private jets in Belgium is estimated at 20.000 customers. Mainly companies who choose to hire a private jet, rather than buying or leasing their own corporate jet. To figure out the current competitive position of the airlines, and to help set strategy, Schneider commissioned a customer equity study of the industry. This began with focus group interviews with customers to figure out the drivers of Value Equity, Brand Equity and Relationship Equity. Based on the focus groups, Schneider came up with the customer equity driver diagram shown in exhibit 1. The identified drivers and sub-drivers were: Drivers of Value Equity ▪ Quality of cabin service (“cabserv”) ▪ Passenger compartment comfort (“passcomp”) ▪ Price (“price”) Drivers of Brand Equity ▪ Attitude toward the airline (“aatt”) ▪ Awareness of the airlines advertising (“aad”) Drivers of Relationship...
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...5 key drivers of supply chain compliance and why？ The key drivers of supply chain management that determine the overall competitiveness and responsiveness of the organization relate to inventory, transportation, facilities and information. The complete supply chain is made up of many channel partners and many processes. Supply chain management encompasses several activities and partners. The forces which are responsible for making the supply chain effective are legislation, environmental, pricing, customer and social. 1. Legislation Legislation is the most important drivers of supply chain; a firm should follow the legislation, or exit the market. Legislation may be in form of general environmental laws (Fleischmann et al., 1997; Georgiadis and Vlachos, 2004; and Van Nunen and Zuidwijk, 2004), or it maybe specific, for example mandating a given recycled content in new products (Krikke et al., 2004) or pinpointing End Of Life (EOL) take-back responsibility (Krikke et al., 2004). Legislation in turn may be driven by issues like government's concern for environmental degradation, public opinion or pressure, lobbying by interest groups, shortage of resources, preferred modalities of a nation's development, which may also, in turn, act directly as drivers for a business firm. Reference: 1. Mann, Hanuv; Kumar, Uma; Kumar, Vinod; Mann, Inder Jit Singh. “Drivers of Sustainable Supply Chain Management.” Iup Journal of Operation...
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...------------------------------------------------- Enterprise Rent a car: Green Taxi ------------------------------------------------- Enterprise Rent a car: Green Taxi Student: Nguyen Phuong Duc Class: FB3A Lecturer: Nguyen Thu Thuy Student: Nguyen Phuong Duc Class: FB3A Lecturer: Nguyen Thu Thuy Student name: Nguyễn Phương Đức Class: FB3-A Enterprise Rent A Car – Green Taxi Table of Contents I. Enterprise Introduction........... . .... ........ 2 II. Enterprise Analysis3 1. SWOT 2. PEST 3. 5 Forces III. Market Penetration Strategy7 IV. Human Resource Plan12 V. Marketing Plan19 VI. Financial Plan22 VII. Conclusion2 I. Executive Introduction. Green Taxi is a Vietnam based company, whose mission is to provide reliable, timely, environment protective and safe taxi services by using modern electric car for providing services. The company will establish its presence in the industry by attack in a new way of service providing, the first time presence in Vietnam – EV taxi (Electric vehicle). Green Taxi will provide complete taxi services using the latest equipment and technology to facilitate the travel of individuals in and around Danang and Hanoi. The company's products and services show that we are an innovative, forward thinking company that recognizes the need to move with unnoisy, convenient...
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...Marketing Management 12e, Kotler and Kellner Summary: Chapter 5 (pages 139 - 171) Building Customer Value, Satisfaction and Loyalty Successful marketing companies invert the chart and see customers at the top and managers at every level must be personally involved in knowing, meeting and serving customers. Customer Perceived Value Customers are more educated and informed than ever and they have the tools to verify companies’ claims and seek out superior alternatives. They estimate which offer will deliver the most perceived value and act on it. Customer perceived value (CPV) is the difference between the prospective customer’s evaluation of all the benefits and all the costs of an offering and the perceived alternatives. Total customer value is the perceived monetary value of the bundle of economic, functional and psychological benefits customers expect from a given market offering. Total customer cost is the bundle of costs customers expect to incur in evaluating, obtaining, using and disposing of a given market offering, including monetary, time, energy and psychic costs. Applying value concepts = what the customer perceives as value and applying these. Choices and implications = (given in the context of the tractor example) ▪ The buyer may be under orders to buy at the lowest price ▪ The buyer will retire before the company realises that the product is more expensive to run ▪ The buyer enjoys a long-term friendship with one of the sales people Buyers...
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...the Chief Marketing Officer for Aerosphere Airlines, a Flemish company that hires private jets. He worries about how to maintain a marketing edge against his main competitors, Dynasty Airlines, Shark Airlines, and Ultra Airlines. Aerosphere, Dynasty and Ultra have similar business models, reflecting a higher concern for service, and Shark positions itself more as a low-price, low-cost carrier. The four companies operate from airports in Belgium and offer flights within Europe. The total size of the market for flights in private jets in Belgium is estimated at 20.000 customers. Mainly companies who choose to hire a private jet, rather than buying or leasing their own corporate jet. To figure out the current competitive position of the airlines, and to help set strategy, Schneider commissioned a customer equity study of the industry. This began with focus group interviews with customers to figure out the drivers of Value Equity, Brand Equity and Relationship Equity. Based on the focus groups, Schneider came up with the customer equity driver diagram shown in exhibit 1. The identified drivers and sub-drivers were: Drivers of Value Equity ▪ Quality of cabin service (“cabserv”) ▪ Passenger compartment comfort (“passcomp”) ▪ Price (“price”) Drivers of Brand Equity ▪ Attitude toward the airline (“aatt”) ▪ Awareness of the airlines advertising (“aad”) Drivers of Relationship...
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...CHAPTER 3 ACTIVITY-BASED MANAGEMENT Questions, Exercises, and Problems: Answers and Solutions 3.1 See text or glossary at the end of the book. 3.2 Disagree. This chapter deals with the problem of allocating indirect costs to products. Indirect costs can be the overhead costs incurred in manufacturing a good or providing a service. 3.3 Step 2 of ABC is to identify the cost drivers associated with each activity. These cost drivers can be selected based on causal relation, benefits received, or reasonableness. 3.4 Companies using a single plantwide rate for their allocation of indirect costs usually select a volume based allocation factor, such as direct labor hours, machine hours, volume of activity, or material costs. 3.5 1. Identify the activities that consume resources. 2. Identify the cost drivers of those activities. 3. Compute a cost rate per cost driver unit. 4. Allocate costs to products by multiplying the cost driver rate times the cost driver volume consumed by the product. 3.6 1. Causal relation. Allocate costs to the product that causes the cost. 2. Benefits received. Allocate costs to the product that receives the most benefit. 3. Reasonableness. Some costs cannot be linked to products based on either causality or benefits received, so they must be allocated on the basis of fairness or reasonableness. 3.7 The traditional approach uses one allocation rate to allocate indirect costs (typically based on direct-labor hours or...
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...1. What are the various market targets for the New Beetle available to Volkswagen? Describe each both demographically and psychographically. What are the pros and cons of each option? What are the appeals of the New Beetle to each group? The targeted markets available for the New Beetle were the young drivers between age of 18-34 years old and baby boomers. -Young drivers (18-34 years old) The consumers in this target markets are mostly single and well-educated. They are fun and adventurous; they see driving more than just getting from place to place. They are confident and like to be the center of attention. The New Beetle has unique and non-conservative design that look “beautiful and interesting”; it is what the younger consumers like about the car. Also, the car is sold at a lower prices comparing to other European luxury cars. It is definitely more price-friendly and affordable to the young consumers. In addition, there was an existing marketing campaign targeting to a younger generation of drivers and product introduction such as the t spending even more marketing budget on the spirit of young drivers. Also “driver wanted” campaign shares similar attitude with the New Beetle, it captures the sprit of energetic and fun driving experience. Although the consumers in this group like the uniqueness of the car and relatively low price tag, most of them do not have past experiences of buying cars. It might take a lot of effort to sell a car to this targeted market than the...
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