Compare and contrast company/corporate branding and own-label branding.

Explain the links between a product life cycle, investment and cash flows.

A US-owned food exporting business plans to enter the market in Trinidad and Tobago for the first time. The directors have yet to decide whether to sell high- or low-priced products and which type of shops they should sell through. The marketing manager obtained the following data from secondary sources, without leaving his desk - which is why it is sometimes called desk research.

• The two-island republic has one of the highest per capita GDPs in the Caribbean over US $\$20000$ in $2013$.

• GDP grew by $2 \%$ in $2013$.

• The retail market is made up of over 500 stores (supermarkets, grocery stores and petrol stations), with sales estimated at just over US$1 billion in$2013$.

• Aiming for a 'one-stop' shopping experience, many supermarket chains have begun to renovate and remodel their stores.

• The market leader is Hi-Lo Food Stores.

• In-house bakeries and delis are becoming more common.

• Retail food sales rose by nearly$50 \%$between$2000$and$2013$.

• Supermarkets are increasing the number of premium-priced low-fat and healthfood products on offer.

Evaluate the usefulness of secondary research to the US food exporter trying to market its goods in Trinidad and Tobago.

A US-owned food exporting business plans to enter the market in Trinidad and Tobago for the first time. The directors have yet to decide whether to sell high- or low-priced products and which type of shops they should sell through. The marketing manager obtained the following data from secondary sources, without leaving his desk - which is why it is sometimes called desk research.

• The two-island republic has one of the highest per capita GDPs in the Caribbean over US $\$20000$ in $2013$.

• GDP grew by $2 \%$ in $2013$.

• The retail market is made up of over 500 stores (supermarkets, grocery stores and petrol stations), with sales estimated at just over US$1 billion in$2013$.

• Aiming for a 'one-stop' shopping experience, many supermarket chains have begun to renovate and remodel their stores.

• The market leader is Hi-Lo Food Stores.

• In-house bakeries and delis are becoming more common.

• Retail food sales rose by nearly$50 \%$between$2000$and$2013$.

• Supermarkets are increasing the number of premium-priced low-fat and healthfood products on offer.

Analyse how two pieces of information in the secondary research on Trinidad and Tobago might guide a US food exporter trying to market its goods in the country.

Outline two benefits to the US food exporter of the data researched from secondary sources

Explain two reasons why brand awareness is important to a business.

The 'I AM Nikon' advertisement campaign was launched in order to achieve the marketing objective of improving market positioning in the compact segment for Nikon. This advertisement campaign was launched with the concept of Nikon camera customers speaking from their perspective. Through this campaign, brand awareness in $12$ European countries increased dramatically with a $37\%$ rise in Germany alone. The marketing strategy was based around the idea that the photos people take tell a powerful story about the character that they want to project.

Supermarket distribution and point-of-sale displays were essential to achieving a successful sales increase, so Nikon's marketing agency created a partnership between Hollyoaks characters (a popular TV show in the UK), the supermarket chain Asda and Nikon. Buyers of Hollyoaks-branded cameras distributed in Asda could win a part in the Channel $4$ show. Sales of the cameras through Asda increased by $332 \%$ over the course of the campaign.

Evaluate Nikon’s decision to use new technology and social media as part of its promotional strategy.

Jupiter Confectionery Ltd manufactures four brands of chocolate bar. It is a well-established business and relies heavily on the traditional qualities of rich-tasting chocolate and prestige packaging to sell its products. It rarely introduces new brands - its last launch was three years ago and this required substantial investment. The other three brands are over ten years old. The products are:

Orion - the newest brand, designed to appeal to teenagers with 'Star Wars' wrappers and a competitive price. Sales are increasing at a steady rate.

Venus - the original product of the company, a rich, dark chocolate bar with a black and gold wrapper. The same size as most bars, but slightly more expensive - to suit its image. Sales and cash flow from this product have helped to finance the launch of the other three.

Sun - the firm's only attempt at boxes of chocolates. There was intense competition in this high-value and high-profit margin market sector. Sales figures are given below.

$$\begin{array}{|l|c|} \hline \textbf{ Year } & \textbf{ Sales of Sun boxes of chocolates (units) } \\ \hline 2010 & 120000 \\ \hline 2011 & 125000 \\ \hline 2012 & 115000 \\ \hline 2013 & 123000 \\ \hline 2014 & 124000 \\ \hline \end{array}$$

Mercury - this is a very sweet, soft-centred bar that has been very popular with older consumers. Sales have declined in recent years because of imports of healthier 'low-fat' chocolates. Old stocks are being returned by retailers.

The marketing manager is concerned both about sales of Mercury bars and the sales record of Sun boxes. Should they both be dropped or could sales be revived? The manager decides to analyse the current sales of the range of products by using the product life cycle concept.

Plot the Sun brand of chocolates in the product life cycle diagram.

Salman Gasim is looking at the latest sales data for FarmGate dairies. As usual, there is some good news and bad news. The four main products are organised into business units. They record very different sales performances, and marketing decisions have to be made concerning the company's product portfolio. Here are the sales data:

$$\begin{array}{|c|} \hline \textbf{ \% market share of the market segment each product is sold in } \\ \hline \end{array}$$

$$\begin{array}{|l|c|c|c|} \hline & \textbf{ 2012 } & \textbf{ 2013 } & \textbf{ 2014 } \\ \hline \text{ Gold Seal milk } & 25 & 26 & 24 \\ \text{ Lo Fat yoghurts } & - & 7 & 6 \\ \text{ Churn butter } & 8 & 6 & 5 \\ \text{ Hi Energy spread } & 30 & 28 & 31 \\ \hline \end{array}$$

Gold Seal milk is the oldest-established product. Sales have not risen greatly over the last few years, but it is in a mature market. FarmGate has not promoted the brand for the last three years.

Lo Fat yoghurts were launched two years ago with a substantial marketing campaign. Although there is great competition in this 'health segment' of the market - it is becoming one of the fastest-growing segments in the high-profit-margin yoghurt market - FarmGate's Lo Fat product initially caught the public's imagination. Product developments might be needed to sustain consumer interest.

Churn butter had for many years been a weak brand in its sector. Frequent promotional campaigns and special offers had failed to create much consumer loyalty. Butter sales in general were suffering because of increasing health concerns.

Hi Energy spread was introduced to the market only five years ago. Sales took off immediately - partly due to very competitive pricing. Healthy eating habits were driving the market forward, but new brands are now making their presence felt. Should a further advertising campaign be introduced? Should the product be developed with a wider range of flavours?

Evaluate the usefulness of the Boston Consulting Group matrix as a model to guide marketing strategy.

Salman Gasim is looking at the latest sales data for FarmGate dairies. As usual, there is some good news and bad news. The four main products are organised into business units. They record very different sales performances, and marketing decisions have to be made concerning the company's product portfolio. Here are the sales data:

$$\begin{array}{|c|} \hline \textbf{ \% market share of the market segment each product is sold in } \\ \hline \end{array}$$

$$\begin{array}{|l|c|c|c|} \hline & \textbf{ 2012 } & \textbf{ 2013 } & \textbf{ 2014 } \\ \hline \text{ Gold Seal milk } & 25 & 26 & 24 \\ \text{ Lo Fat yoghurts } & - & 7 & 6 \\ \text{ Churn butter } & 8 & 6 & 5 \\ \text{ Hi Energy spread } & 30 & 28 & 31 \\ \hline \end{array}$$

Gold Seal milk is the oldest-established product. Sales have not risen greatly over the last few years, but it is in a mature market. FarmGate has not promoted the brand for the last three years.

Lo Fat yoghurts were launched two years ago with a substantial marketing campaign. Although there is great competition in this 'health segment' of the market - it is becoming one of the fastest-growing segments in the high-profit-margin yoghurt market - FarmGate's Lo Fat product initially caught the public's imagination. Product developments might be needed to sustain consumer interest.

Churn butter had for many years been a weak brand in its sector. Frequent promotional campaigns and special offers had failed to create much consumer loyalty. Butter sales in general were suffering because of increasing health concerns.

Hi Energy spread was introduced to the market only five years ago. Sales took off immediately - partly due to very competitive pricing. Healthy eating habits were driving the market forward, but new brands are now making their presence felt. Should a further advertising campaign be introduced? Should the product be developed with a wider range of flavours?

Examine a strategy FarmGate could adopt to increase the sales of Lo Fat yoghurts and a strategy to increase the market share of Hi Energy spread.

Salman Gasim is looking at the latest sales data for FarmGate dairies. As usual, there is some good news and bad news. The four main products are organised into business units. They record very different sales performances, and marketing decisions have to be made concerning the company's product portfolio. Here are the sales data:

$$\begin{array}{|c|} \hline \textbf{ \% market share of the market segment each product is sold in } \\ \hline \end{array}$$

$$\begin{array}{|l|c|c|c|} \hline & \textbf{ 2012 } & \textbf{ 2013 } & \textbf{ 2014 } \\ \hline \text{ Gold Seal milk } & 25 & 26 & 24 \\ \text{ Lo Fat yoghurts } & - & 7 & 6 \\ \text{ Churn butter } & 8 & 6 & 5 \\ \text{ Hi Energy spread } & 30 & 28 & 31 \\ \hline \end{array}$$

Gold Seal milk is the oldest-established product. Sales have not risen greatly over the last few years, but it is in a mature market. FarmGate has not promoted the brand for the last three years.

Lo Fat yoghurts were launched two years ago with a substantial marketing campaign. Although there is great competition in this 'health segment' of the market - it is becoming one of the fastest-growing segments in the high-profit-margin yoghurt market - FarmGate's Lo Fat product initially caught the public's imagination. Product developments might be needed to sustain consumer interest.

Churn butter had for many years been a weak brand in its sector. Frequent promotional campaigns and special offers had failed to create much consumer loyalty. Butter sales in general were suffering because of increasing health concerns.

Hi Energy spread was introduced to the market only five years ago. Sales took off immediately - partly due to very competitive pricing. Healthy eating habits were driving the market forward, but new brands are now making their presence felt. Should a further advertising campaign be introduced? Should the product be developed with a wider range of flavours?

Draw a Boston Consulting Group matrix diagram and position each of FarmGate’s products on the matrix you have drawn.

Jupiter Confectionery Ltd manufactures four brands of chocolate bar. It is a well-established business and relies heavily on the traditional qualities of rich-tasting chocolate and prestige packaging to sell its products. It rarely introduces new brands - its last launch was three years ago and this required substantial investment. The other three brands are over ten years old. The products are:

Orion - the newest brand, designed to appeal to teenagers with 'Star Wars' wrappers and a competitive price. Sales are increasing at a steady rate.

Venus - the original product of the company, a rich, dark chocolate bar with a black and gold wrapper. The same size as most bars, but slightly more expensive - to suit its image. Sales and cash flow from this product have helped to finance the launch of the other three.

Sun - the firm's only attempt at boxes of chocolates. There was intense competition in this high-value and high-profit margin market sector. Sales figures are given below.

$$\begin{array}{|l|c|} \hline \textbf{ Year } & \textbf{ Sales of Sun boxes of chocolates (units) } \\ \hline 2010 & 120000 \\ \hline 2011 & 125000 \\ \hline 2012 & 115000 \\ \hline 2013 & 123000 \\ \hline 2014 & 124000 \\ \hline \end{array}$$

Mercury - this is a very sweet, soft-centred bar that has been very popular with older consumers. Sales have declined in recent years because of imports of healthier 'low-fat' chocolates. Old stocks are being returned by retailers.

The marketing manager is concerned both about sales of Mercury bars and the sales record of Sun boxes. Should they both be dropped or could sales be revived? The manager decides to analyse the current sales of the range of products by using the product life cycle concept.

Evaluate three extension strategies that Jupiter Confectionery could adopt for the Sun brand of chocolates.

The world's best-known fast-food restaurant has always prided itself on high standards for hygiene and levels of service in its outlets, no matter which country it is operating in. It also aims to achieve uniform product standards throughout the world. The principle of a common world approach is also extended to the marketing mix used by the business $-$ same products, same decor, same promotions, same pricing levels. When the company first expanded internationally in the $1970$s, it was selling the 'American dream' but that is no longer acceptable in many countries of the world. The emphasis has now changed to 'global brand but local marketing'.

The need to be aware of cultural and religious factors when designing a global marketing strategy was made clear to the business when it was confronted with a lawsuit from Indian Hindus. McDonald's had to apologise to all religious and secular vegetarians for failing to make clear that beef flavouring is added to its chips in the USA. It is claimed that there are at least $16$ million vegetarians in the USA, who may have eaten these chips, and that they could be suffering from emotional distress as a result. In India, restaurant windows were smashed and dirt was smeared on statues of Ronald McDonald. Hindu leaders called for the food chain to be expelled from the country.

There are benefits to standardisation, however $-$ the McDonald's double-arch logo is now the best-recognised in the world, for example, and internationally standardised advertisements as used by Coca-Cola offer economies of scale as well as reinforcing the global nature of the brand.

However, McDonald's is not alone in increasingly adopting the 'think globally, act locally' concept. Products that are too heavily focused on American culture, tastes and consumer needs are much less well received in some countries than they used to be. Adapting well-known brands to meet the cultural and social demands of countries that are becoming more independent in their approach to business and marketing is now a priority for companies like McDonald's. In India, McDonald's had to move away from reliance on beef and now has an Indian menu with local flavours, such as McCurry Pan and Chicken Maharaja Mac. In France, the changes have been even more substantial. Red and yellow colours are replaced with more 'adult' colour schemes. External restaurant signs are discreet and blend in with the neighbourhood. There are real leather seats, gas fireplaces and hardwood floors. Organic ingredients are used and healthy-eating messages are displayed on every wall. French desserts are offered instead of the standard options and a big seller is le P'tit Moutarde $-$ a small hamburger with a French mustard sauce. McDonald's sales in France rose by $8 \%$ in one year after some years of much slower growth - perhaps meeting local needs and responding to national consumer tastes is the way forward.

McDonald's percentage sales revenue growth:

$$\begin{array}{|l|c|c|} \hline & \textbf{ 4th quarter 2013 \% } & \textbf {2 0 1 2 \% } \\ \hline \text{ USA } & -1.4 & 5 \\ \hline \text{ Europe } & +1.0 & 8 \\ \hline \text{ Asia, Middle East, Africa } & -2.4 & 11 \\ \hline \end{array}$$

Evaluate McDonald’s’ decision to change from a pan-global international marketing strategy to a global localisation approach.

Toyota is one of the best examples of a multi-site business with $52$ manufacturing facilities in $26$ different countries. In a typical recent $12$-month period, it opened its first factory in Mexico and opened its 13th manufacturing facility in the USA $-$ in Mississippi. Recently concern has been expressed by the company that its production capacity in the USA was starting to outstrip demand for vehicles, so this could be the last new factory the company builds there for some time.

Evaluate Toyota's decision to locate operating factories in so many different countries.