CASE STUDY MÔN MARKETING QUỐC TẾ

Would the model for mobile phone expansion apply to other less-or developed countries?. least-The model for mobile phone would expansion apply to other less or least developed countries.

UNIVERSITY OF FINANCE - MARKETING

FACULTY OF MARKETING

INTERNATIONAL MARKETING

CASE-STUDY FROM CHAPTER 1 TO CHAPTER 16

Lecture: MBA Ngo Minh Trang

Group: 6

1 Pham Quang Thuy 1721001634

2 Do Thanh Ngan 1721000602

3 Trinh Quoc Bao 1721000655

4 Phan Hoang Bao 1721000654

HCMC – October 2019

CATEGORY

CHAPTER 1 3

CHAPTER 2 12

CHAPTER 3 20

CHAPTER 4 25

CHAPTER 5 26

CHAPTER 6 28

CHAPTER 7 30

CHAPTER 8 33

CHAPTER 9 36

CHAPTER 10 37

CHAPTER 11 39

CHAPTER 12 40

CHAPTER 13 43

CHAPTER 14 45

CHAPTER 15 47

CHAPTER 16 49

- Hypermarkets - Ideal stop for families doing major shopping, offers a variety of food and non-food items at low prices

- Supermarkets - Offers a huge variety of fresh produce, local products, and non-food items at attractive prices

- Convenience stores – these are designed to address the local needs of the customers offering products at low prices and are open till late-night

- Cash & Carry stores, Hypercash stores – Displays all the products on pallets and are sold usually to bulk buyers such restaurateurs and similar professionals

- Multi-channel strategy – Carrefour is providing its customers with commerce and m-commerce solutions to make them shop anytime and anywhere

e-Price:

Carrefour generally follows ‘low prices every day’ policy, but frequently switches between a mix of policies., non-sensitive products are reasonably priced and imported products are priced very high However, the major portion of the revenue comes from the sale of Carrefour’s own brand products which are priced

as per the demand This gives an insight about the pricing strategy in the marketing mix of Carrefour

Place:

Carrefour has more than 12,000 stores operating in more than 30 countries

in Europe, America, Asia and Africa Carrefour has ensured its presence in 19 integrated countries and has franchised stores in 20 other countries The group, in addition to the traditional format has developed a wide range formats to cater to all kinds of shopping pattern, be it daily purchases, weekly hypermarket visits or bulk buys by business customers

Carrefour ensures that all its stores appear inviting via the use of attractive

& modern designs with different banners in every store Such steps provide Carrefour a competitive advantage and helps in increasing sales and market reach

As of June 2016, Carrefour has 1481 hypermarkets, 3462 Supermarkets, 7181 convenience stores and 171 Cash & Carry stores

Promotion:

IBM & its partners developed an in-store promotion system for Carrefour’s supermarket & hypermarket stores, that can be entirely operated by Carrefour and thus enabling it to plan and execute more targeted campaigns and have feedback about how effective they were Carrefour, as a part of its Relationship Management Strategy launched ‘MyCLUB’ loyalty card for its retail customers

to achieve their loyalty and ensure customer retention This card enables customers to earn points on every purchase which can be redeemed in place of cash on their next visit

Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Carrefour

People:

Carrefour puts in a lot of effort and funds to train its existing employees not only to provide excellent services to the customers but also to pass on their

expertise and ultimately raise the service standards In addition to salaries, employees are offered various other facilities like- medical benefits, supplementary pension scheme, profit-sharing schemes etc Carrefour offers a lot

of options for the employees to enhance their skills and climb the ranks, like- individual training paths and annual interviews

Process:

Carrefour has streamlined its distribution and delivery by choosing the right store formats as per the preference of its customers The strategy of renovation of existing stores and development of new stores for expansion has shown considerable impact in its financial report In addition to the brick and mortar stores, Carrefour’s online shopping portal has made shopping very convenient and efficient for the customers

Physical Evidence:

Carrefour constantly tries to update itself as per the preferences of its customers It adapts itself to the market (Urban or Rural), this is not restricted to the products only, this extends to lighting, furnishings, and additional services For example- Carrefour rejuvenated Bairro supermarkets in Brazil to provide a better shopping experience to its customers and renovated its stores in Italy and Belgium to enhance the offering by using its design to seduce the customers Hence, this completes the Carrefour marketing mix

2 What value does Carrefour provide consistently in all of the various

countries in which it operates?

Carrefour’s role is to help its customers and consumers enjoy a better quality of life, each and every day

Committed, Caring and Positive

These three values bring us closer to our customers and consumers and reflect our personality We look for and find the best possible solutions for them every day

Committed

We are committed Committed professionals and committed members of the community We constantly strive to exceed everyone's expectations by providing better value and finding new solutions for a better quality of life

Caring

We are caring Caring towards our customers and our consumers We are receptive

to their needs, each and every day We welcome them to our stores and meet their needs with kindness, warmth and attention to detail

Positive

We are positive We rise to every challenge with energy, enthusiasm, and with fresh ideas We help brighten the lives of our customers and our consumers For them, for our employees, for the planet, we want the best, both today and tomorrow

3 How do local partners help Carrefour overcome difficulties in new

markets? What is the advantage of that approach?

- Local partners help Carrefour to navigate the differences in each countries’ culture and help Carrefour to form the thorough understanding by giving Carrefour informations, statistics, to make the right Marketing decision

- Retailing behaviours may vary greatly depending on the local culture, so using the local partners is smart

- Carrefour can get into the new market by franchise, M&A Carrefour considers the local partners as the levelrage

In 2010, Carrefour entered the Indian market using the partners who was Kishore Biyani of Pantaloon Retail This help the Carrefour counter moves by the American Wal-Mart and the Bristish Tescon to corner the $390 billion Indian retail market

4 Explain the impact of drivers of globalization described in this chapter with regard to Carrefour

Channel of Communication:

Dealing with the language barrier When entering the China market, as the brandname close to the French pronunciation while the authority demands the name written in Mandarin The company has made up the name Carrefour translate to 家樂福 Jia Le Fu in which Jia means Family, Le means Joy and Fu

means Love, fortune, which reinforce the company’s name For instance, customer inquired about the right image of the company names

Brand names characteristic: location based store

Moreover, as the Carrefour means crossroad, when enter China market, location plays a major role so that shops are primarily located at the crossroads

Lower Transportation cost

The food is a special product which demands to be kept in the good conditions not to mention the expired date To keep everything on the right track can higher the transportation cost of the product

To solve the case, Carrefour sources many of its product locally They conduct the couple education and build the relationship with the local suppliers of food through camps for Indian Farmers The outcome is that the efficiency of Indian farmers increased and improve the sources of foods for the company

Culture or Patterns

The marketing team of Carrefour form the relationship with local partners when entering the new markets For example, when enter Taiwan in 1989, they join hands to learn about Asian business environment, especially culture This knowledge led to expansion in six other Asian markets

Carrefour attempt to make large or small change to adapt the cultural

In case of Middle East countries

Donate to local charities to build goodwill and image Moreover, during Ramadan month in which more than 1 billion Islamic people over the world will find their way back to the Mecca and conduct the religious activities include starve for a day After that day, the demand of food to recover is huge In UAE 2009, Carrefour donated the food worth AED 625.000 (ABOUT $170.000) to person in need

- Carrefour is very smart when finding and using the local partner to navigate the differences and take measures to adapt the local market

- Learning about culture might increase the cost of MKT Research in different country

- Difficult to monitor the partners in foreign markets

- This trend might lead toi conflict agreement between the company and partners reulted in poor collaboration

Language

Carrefour is smart when translating the brand name into Chinese, the new brand name still carry the company value, which is the image of happy family, this actions has inspire customer interest, easy to recall or remember and help the company to stand out in the market and achieve the desired effect

Political and Legal system

- China-the company has been active in the relatively strong command economy of China since 1995, the marketing programs is adjusted to meet governmental restrictions

- Singapore has an open market

- Under the law or politic of one country, there may be limitations on the products can be sold, the price for certain goods may be st by the government

- France require the traditional parliamentary democracy, which means the B.O.M of the company has to be less-representative or less stable

- Pakistan has the high levels of political risk

- Indonesia anti trust

In conclusion, the impact has been mostly postitive as the Carrefour has taken right action to respond to the international complexity

CHAPTER 2

1 Discuss the difference between the use of cell phones in the African cellular phone markets compared with cell phone use in developed-country cellular phone markets

Across Africa the same outside access created by mobile phone is possible

in isolated communities Instead of traditional landline phones, consumers have moved directly to mobile communication Ninety percent phone subcribing Africa use phone, often using the more accessible pay as pay you go models The pricing system allows consumers more flexibility than a traditional monthly plan Payments are solely linked to usage rates Consumers keep multiple SIM memory cards, switching to whichever company provides the best rate for calling being made, Short calls or even flahsing- the act of calling and hanging up after one ring so that the person will not be billed of for the call, which also helps keep costs low

The use of mobile phone differs on the continent from other part of the world For many consumers, mobile technology offers a primary source of information Cell phones can be used to track the price of crops and to receive reminders to take medicines, They save wasted trips outside of the village Due to this focus on function, the phones typically strip down many Western phone features and instead only provide the ability to call and send text messages

2 How might the different ownership structures in Africa reflect potential economic systems in the host countries?

An economic system is a system of production, resource allocation, and

distribution of goods and services within a society or a given geographic area It includes the combination of the various institutions, agencies, entities, decision-making processes, and patterns of consumption that comprise the economic structure of a given community As such, an economic system is a type of social

system The mode of production is a related concept All economic systems have three basic questions to ask: what to produce, how to produce and in what quantities, and who receives the output of production

The ownership structure is defined by the distribution of equity with regard

to votes and capital but also by the identity of the equity owners These structures are of major importance in corporate governance because they determine the incentives of managers and thereby the economic efficiency of the corporations they manage

Economic system is an important factor that businesses should consider when choosing ownership structure because it has a direct impact on the business ability of the business If the right ownership structure is chosen, the business will develop rapidly and the potential for competition will be high Conversely, enterprises will be retarded and soon be kicked out of the competitive environment

Beside the growing economy, many business companies appear, with a variety of ownership structure For example, there are so many kind of ownership

structure like private owned- (Safricom, Cellcom, MTN, Zain, …), state owned- (Sotelma, Mcel, Mtel, Tunisie Télécom, …), vivdendi subsidiary- (Maroc Telecom,…), subsidiary- (Vodacom, …), joint venture- (São Tomé Telecoms,

Sonatel, …)

The African economic system might be mixed system A mixed economic system is an economic system that features characteristics of both capitalism and socialism A mixed economic system protects private property and allows a level

of economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims According to neoclassical theory, mixed economies are less efficient than pure free markets, but proponents of government interventions argue that the base conditions such as

equal information and rational market participants cannot be achieved in practical application

Advantages of mix economic system:

a It promotes a quick economic development

In this type of economic system, both the public and private sectors can operate equally, which means that economic development will be quicker This is especially true considering that economic resources will be utilized efficiently Also, depletion of resources will be slowed down

b It creates a balance in regional developments

The planning commission of a country will be able to create policies for the improvement of every region In addition, the government would also try to develop each sector of the population

c It encourages lesser income inequality

With a mixed economy, there will be lesser inequality when it comes to income, where the inheritance law is applied to enable members of society to become richer As for the public sector, it would try to provide economic utility

to the general public, leading to further reduction of inequality in income

d It provides the freedom to own a private property

People are free to obtain property in a mixed economy, which means that the idea to work even more will be encouraged Again, this will help in the fast economic development, especially in the areas of industries and agriculture

Disadvantages of mix economic system:

a It brings about the fear of nationalization

As the private and public sectors coexists, the government would have the ability to own and nationalize any industry This means that private entities will have to stay on the psychological apprehension that their business would be nationalized or taken over by the government

b It could risk the government to go too far

In a mixed economy, determining the exact role of the government in the private sector would sometimes become a guessing game that would result to unfair practices in both sides It is believed that the government would manage the economy poorly, so its involvement is usually regarded as inappropriate

c It observes lesser use of resources

While the interest of the society is important in this system, it also hinders maximum use of available resources This is primarily because of the government trying to mobilize resources to produce products and services that are generally beneficial for society, rather than doing it for the betterment of the economy

d It can lead to higher taxes

With more state intervention in the economy, it would mean that the government would invest more and would get their funds largely from tax revenues More taxes would be required from the people, which can lead to negative consequences

Basically, the success or failure of a mixed economy would still depend on how it is managed However, based on the advantages and disadvantages listed above, we will be able to know whether it will do our country any good or just

make situations even worse

3 Would the model for mobile phone expansion apply to other less-or developed countries? Why or why not?

least-The model for mobile phone would expansion apply to other less or least developed countries Because: These countries have a large population, which is

a potetial market for develop mobile communications Besides, there are some surveys, datas about the expansion of mobile phone in less or least developed countries:

- There is a survey underlined a simple fact: “Less developed countries, especially LDCs has experienced an incredible boom in mobile phone use over the past decade In 1998, there were fewer than four million mobiles on the continent Today, there are more than 500 million In Uganda alone, 10 million people, or about 30% of the population, own a mobile phone, and that number is growing rapidly every year For Ugandans, these ubiquitous devices are more than just a handy way of communicating on the fly: they are a way of life It may seem unlikely, given its track record in technological development, but Africa is at the

centre of a mobile revolution” ( Source: “Mobile economic revolution”)

- Mobile phones will account for almost one-tenth of African GDP by the end of the decade, as mobile broadband connections triple in five years, underlining how the explosive growth in the telecoms industry is having a major economic, social and political impact on the continent Market analysts Ovum expect mobile broadband connections, which stood at 147m in 2014, to account for a substantial share of the mobile market, forecasting a rise to 76% at the end

of 2020, up from just 17% in 2014.The figures underpin the extraordinary rate at which the mobile industry has grown across the continent over the past decade and a half The sector contributed $100bn (£76bn) to sub-Saharan Africa’s economy in 2014 and is expected to account for three times that in 2020 John Githongo, veteran anti-corruption activist “The growth in access to smartphones leads to the creation of networks that are broader, deeeper and more durable than

we have seen in the past.” (Source: “Africa calling: mobile phone revolution to

transform democracies”)

- There is a figure traces the expansion in mobile phone subscriptions in developed, and least developed countries Through this figure, it can be seen that Developing Countries and Least developed Countries have high growth rates

4 How do Porter’s five factors explain the high level of industry competitive intensity in the African mobile phone market?

Five factors:

Substitutes: The mobile pricing system is too flexibility since payments are

linked to usage rate and customers will use the one that bring them benefit the most

Supplier: There are at least 6 local providers in the market

The entrants: There are large barriers to entry in terms of cost and

government approval

Industry competitors and extent of rivalry & advantage: Local

companies has a strong position in the market They has varieties of ownership structures and present a strong challenge to outside competitors

Buyers: Africa has the fastest growth and most exciting market in the

international marketplace 50% growth per year since 2002, 28% of African consumers use mobile phone

5 How might an African government apply Porter’s national competitive advantage diamond to further spur cellular phone specialization within a country?

Things that government should do to further spur cellular phone specialization:

Government required to be handle exchange rate differences

Adding some laws to protect the interests of investors

Most of the labor is poorly qualified so government needs to improve education to raise labor quality

Upgrading infrastructure, medical services

Enactment of anti-money laundering and anti-corruption bribery legislation that accords with international best practice on such issues, a reduction in red tape through a significant decrease in the number of licences and permits required to carry on business in many countries, and stronger institutions led by meritocratically appointed professionals with long-standing success of growing business in the private sector

Government issue Prudent macro-economic policies to provide a sound foundation for investment and have increasingly freed people from the impoverishing effects of inflation Privatisation programmes, lower corporate

taxes (through provision of corporate income tax holidays and reductions in the standard rate for taxes such as import duties and VAT for large infrastructure projects), reductions in trade barriers and improving judicial systems all go to make up an increasingly appealing environment for overseas investors

Legal systems in Africa are rooted either in civil law (derived from the French, Italian, Portuguese or Spanish systems) or common law (derived from the English system) and, in certain countries, these systems operate alongside Sharia law and tribal or customary laws Lack of certainty is a feature affecting many local legal systems, driven by inconsistent court interpretations, a shortage of precedents and unreliable public registers Local market practice may also differ significantly from international market practice So Government need to enhance consistency in the legal system

M&A transactions in African jurisdictions are particularly exposed to risks relating to bribery and corruption A historical combination of a high degree of influence enjoyed by public officials over significant foreign investments, relatively weaker institutions, a lower level of transparency and infrequent prosecution of wrongdoing has made bribery and corruption a significant issue In Transparency International's Corruption Perceptions Index (the leading international measure of perceived public sector corruption), 90% of sub-Saharan African countries scored below 50 So government need to anti-bribery and corruption

Porter argues that a country's firms gain competitive advantage if their domestic consumers are highly sophisticated and demanding Such consumers would put pressure on domestic companies to meet high standards of product quality and produce new designs The government should create conditions to improve the quality of life of people, enabling them to be exposed to telephones and telecommunications

Integrated Shipping Solutions – Customization and Flexibility

DHL makes express shipping simple and efficient with fully-integrated business solutions

The benefits of DHL Integration Solutions:

• Use in-house shipping and warehouse management systems and still be able to provide access to complete set of DHL Express shipping services

• No need to locally maintain DHL business rules

• Provide DHL capabilities from internal shipping sites, shopping carts and E-Commerce websites

• No DHL hardware or software is required on customer site

• Use standard XML based, secured platform to integrate with DHL

• You control implementation timelines

Available Services

2 Does the reduction of barriers to trade help or hurt DHL’s business? Justify your answer

We believe that the reduction of barriers to trade helps DHL’s business because:

Firstly, lowering trade barriers can makes DHL more successful and wealthier by assisting small businesses internationally

Secondly, lowering trade barriers creates chance for DHL to be closer and known in foreign countries

well-Thirdly, DHL creates opportunities to target bottom-of-the-pyramid consumers with affordable price because of low input fees Besides, it is easier for DHL to compete with local competitors

Capability

Rate Quote

Returns

Shipment ProcessingLabel GenerationPaperless Trade

Pickup BookingTrackingShipment Preparation

3 Visit the DHL small business website (www.DHLsmallbusiness.com) What are four activities on the websites that facilitate small business trade?

Activity 1: Provide solutions for small and medium enterprise when operating their companies

Activity 2: Easy shipping: instruct business how to use DHL’s shipping service

Activity 3: Business Across Border - Understanding International Trade

International trade is a complex process, but also an exciting business opportunity

DHL can help not only with global customs requirements and trade terminology but also with local import and export support and resources

Activity 4: Not have

4 Would a supporter of protectionism view DHL’s activities as positive or negative? Do you agree with that perspective?

First of all we must understand what is protectionism to answer the question

• In economics, protectionism is the economic policy of restraining trade between states (countries) through methods

• Protectionist policies protect the local industry, national security, cultural, environment from foreign competitors, earn revenue and promote consumer revenue

There are some disadvantages of Protectionism:

• Trading partners implement protectionist policies in retaliation, causing demand for exports to plummet, hurting workers and businesses

• The government gets into the business of “picking winners,” leading to corruption

• The cost of imports go up, hurting consumers

• The market is distorted, mislocating resources, and giving firms and workers a false sense of security

2 How might religious differences influence the type of refrigerator to be sold

as well as its size in international markets?

Many religions dictate that individuals fast at certain times or certain days The fast may last from dawn until dusk, or take place during a religious holiday

or festival Storing food for the time when the person is allowed to eat becomes a consideration in selecting a refrigerator

3 How would topography influence the production and sale of refrigerators by Electrolux?

Shopping habits are tied to both dining habits and to size of living quarters

In Europe, it is not unusual for a family to purchase only one or two days, worth

of dining supplies at any given time, shopping daily a local market Needs for a refrigerator are relatively small, and the unit purchase reflects this daily culture event , in which socialization becomes large part of the shopping event Americans, in contrast, often shop at large retailers and need a large space for a refrigerator that can store large, less frequent purchases

4 What potential market segments can you identify from the information provided in this case?

There have four market segments: habits, culture, religion, topography

Electrolux's potential market segment is cultural and topography Electrolux's segmentation helps optimize the distribution as well as the production

of products suitable to each customer segment, easily accessible to consumers Religious factors will be potential but face many disadvantages in buying and using products

5 Would there be a refrigerator market for bottom of the pyramid customers? Why or why not?

For each country, Electrolux has created refrigerators lines that are suitable for culture, usage habits At the same time, it is also associated with wholesalers

to apply the installment sale policies for income people The ads for income customers benefit from the potential benefits of refrigerators that are well worth the money

2 How might regulatory activities TOTO as it enters markets?

Legal activities can hinder the development of the company Certificates of green products or environmental protection, depends very much on the

government Some ads may not be suitable for some countries, typically