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to ensure its longevity? Q2 . How would you characterize the Guinness brand? Q3 . What could Guinness do to attract younger drinkers? And to retain its older loyal customer base?Can both be done at the same time? 1. Ans.: Beer and stout were very popular in Ireland; however, it became an old pattern for youngsters, slightly over-weighed people and thus not fit for the youths. After looking the demands of youths, Guinness changed the trend of bottle style and quality, which became very much trendy andused at local parties and pubs. Guinness has applied product innovations and brand building to ensureits longevity of product. The canned beer with a perfect head with chilled stout make more deliciousfor younger adults. As well as Guinness started promoting the brand excessively through advertisingin cinema halls, sporting and musical events etc. 2. Ans.: Guinness is the oldest brand in the world of beers. Unfortunately, the 241 year old brand felldown due to sudden changes in the younger desires. The sudden crisis of the brand geared-up thecenturies old brand in Irish mystique and tradition. Guinness applied the strategies according to thenew trend of requirement. However, it also not lost the faith of old customers. We can say it as, the old wine in a new bottle. Guinness has just changed the shape and size of the bottle and chilled the beer toattract the youngsters. Guinness has applied the “Market-driven business policy”; such as, customerconcern throughout the business, customer choice with marketing mix, welcomes changes, andinnovation implementations‟. 3Ans.: Guinness implemented a new innovative product design for the younger drinkers as well as itsolder loyal customers. In 1989, Guinness developed an ingenious canned stout for the youngsters, which can sold at non-license outlets, shops and supermarkets. In 1997, Guinness launched an extrachilled tap system in Ireland, which was used in pubs and bars. In 1999, Guinness introduced a coolerimage on the long-stemmed old pattern bottles, with a clear, shiny plastic wrap, designed to look like acreamy-pint; that offer a fashionable way to younger and older drinkers
Q3 .Why is the grey market so attractive to business? Q2 .: At first. anti-ageing products and luxurious cars. 2. the grey market is the parallel market as compared to normal market. Ans. the products are less expensive than the branded products.Ans. They used to attempt adventurous tours and travels. however the products do not have any warranty as branded products furnish. they love to stay without any barriers. the changing of trends according to demographic forces causes a biggest challenge for the grey market . Freedom : After getting retired. They maintain luxurious living style with the use of cosmetics.: Grey market is very attractive to business. Discuss the challenges involved in targeting the grey market. there are generally pricediscrepancies in how the goods are sold in different markets. is the foremost point of challenging. andprovides a brand name goods at a lower price to the consumers. however to know what the market requires and what quality product will sustain in the market. Advertising a product is very easy. Health : Baby boomers are very much health cautious. Secondly. They commonly purchase electrical and electronic items and other technicalproducts. Identify the influences on the purchasing behaviour of the over-50s consumer.2. As we know.3. : The influences on the purchasing behavior of the over 50s consumers are: Cost : Baby boomers usually purchase household items to decorate their homes. the biggest challenge is to understand the market . They also invest in private health insurance and pharmaceutical products to maintain their healthy lives. Baby boomers love to see the world adventurously. Foreign tour is one of their common passions of expenditure.T h e r e a s o n t h a t t h e grey market survive in the business because. As there is no relationship between the producer and seller. Ans. . 1. is a risk-free legal business as others. 3. This price discrepancy permits theproducts to be resold in the more classy market at a profit. because it creates much more benefits to theconsumer as well as the seller. in the absence of their children.
Keeping the mother product in the centre.Nivea: managing an umbrella brand Q1. Nivea products are consumer needs. Nivea has the strategy of product variants. trustworthy.I think the company will able to protect these core values. mildness. what are the core values of the Nivea brand? What type of brand extensionframework did Beiersdoft develop to ensure that these core values did not get diluted? Do you think the company was able to protect these core values? Why/why not? Q3.Independent branding focuses on a single brand and product. simplicity. critically comment on the pros and cons of adopting an umbrella brandingstrategy. The cons of adopting an umbrella branding strategy is.Beiersdoft felt that Nivea‟s uniqueness values such as. Ans. Independent branding strategy is far different from umbrella branding strategy . Nivea is uniform throughout the world. Unlessthe core brand became strong. whereas umbrella branding focuses on asingle brand with various products. it affects other sister products critically.: The core values of Niveabrand are high quality. consistency and caringcould easily be used to make a non diluted brand extension. Ans. The „ .: The reason for success of the Nivea is due to innovation. Q2.: The essential components of Beiersdoft‟s global expansion strategy for Nivea are : itmanufacture and distribute the products of reliable quality and high needs and benefits to theconsumer. What were the essential components of Beiersdoft‟s global expansion strategy for Nivea? Under what circumstances would a „global-strategy-local execution‟ approach be beneficial for a company? When and why should this approach be avoided? 1. Discuss the reasons for the success of the Nivea range of products across the world. According to you. The company decided not to use supermodels to promote the products andapplied majorly blue and white as a brand color. gentleness. It also helps the company to reducepromotional and advertisement cost. attractiveand familiar approach. it can dent or damage other products without any fail. trust and love. brand extension and globalization. fairand eco-friendly products. Why didBeiersdoft decide to extend the brand to different product categories? In the light of Beiersdoft‟s brandextension of Nivea. Nivea decided toproduce products for all age group of male and female. 2. The Pros of adopting an umbrella branding strategy is. because the products are consumer needsand are very heart-touching to the peoples. Compare the use of such a strategy with the use of an independent branding strategy. It has the crowd market brand which offers the largestskincare collection. Ans.Nivea produced various sister products to extend its brand globally. 3. with a single brand name number of products can be promoted and reached to the people world widely. The main advantage of umbrella branding is investment orcapitalization on one single name for various products. which believe in creative. with innovative product built-ups for consumers of every corner of the world. customer oriented. if the mother product or any otherproduct of an umbrella brand not managed properly. which based on sympathy. reliability.Beiersdoft extended the brand to different product categories by adopting the strategy of productcategory extension. As the competition increased among various skin care brands.
company was present in over 14 product categories.global-strategy-local execution’ approach is beneficial for a company. AN ODE TO NIVEA’s SUCCESS Term Assessment Task . These product categories were serving peoples of 150 countries. Company Overview Nivea is brand of Beiersdorf a German based company owing various other cosmetics brand. it became ahelpful for Nivea. . involvement and performance by the local employees for globalpurpose. Introduction to case The case describes: . Nivea’s journey from being a one-product brand to a range encompassing fourteen product categories The strategies taken by the company to ensure that brand dilution did not hamper the umbrella branding initiatives for Nivea. however. The global-local strategy is a risk for various brand managements. when it formulatedand executed with proper education.2 Presented by : .Tarun Arya [email_address] 2. This approach should be avoided. if the products are not correlated and consumeroriented. . 3.Brand management strategies of the German branded goods major Beiersdorf for its Nivea range of products. In year 2003.
Question1. 4. critically comment on the pros and cons of adopting an umbrella branding strategy? Answer The main reason to extend the brand to different product categories: Beiersdorf wanted to go globally with Nivea brand. Mass-marketing Take the help of advertising for the brand recognition. Nivea was the single largest factor for 4. Market Share The brand had a 15% market share in the global skin care products market in 1990. Nivea was believed to be the brand of local origin in many of these countries which helped them in becoming the market leader. An Umbrella Brand 9. For the year 2001. Facts about Nivea (in year 2003) Market leader in: .4% increase in the company’s revenues and 10. Beiersdrof wanted . 7. suntan products in 15 countries.skin creams and lotions in 28 countries. Why did Beiersdrof decide to extend the brand to different product categories? In the light of Beiersdrof’s brand extension of Nivea. facial skin care in 18 countries. Nivea Sales Worldwide 10. Oscar Troplowitz was the owner of this company and also he was the person who named it Nivea. 11. Marketing Strategy The target segment of Nivea were primarily women from the upper strata of society. 5. Mr.7% increase in PAT for the year 2002. Geographical condition of various countries also motivated Beiersdrof to extend the brand Nivea. so they extended their product categories. Nivea comes from the latin word niveus/nivea/niveum (meaning snow-white). Expanding the brand globally. facial cleansing in 23 countries. Nivea posted double-digit growth rates every year.5 billion. brand generated the revenues of 2. 6. Company Overview Nivea began its operations in the year 1911. 8. Growth of Nivea Between 1991 and 2001.
to increase the brand equity of Nivea brand. it was essential for Nivea to extend its brand. an umbrella is a place brand used by a locality to attract the attention of different kinds of audiences. investors. Umbrella Branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related. or students. An umbrella brand strategy also help companies to reduce promotional and advertisement cost. Some times the brand communication strategy of core brand affects the extension brand.g. incoming tourists. e. If the core brand is not stronger than its extension. Cons of umbrella branding strategy If the brand is not managed well. . The main advantage of using umbrella branding strategy is the capitalisation on one single name. there is a threat for its associate brands. . As the competition increased in skin care market it was necessary for Nivea to extend it brand to be a-step-ahead of the competition. It applies also to any company that is identified only by its brand and history. Pros of using umbrella branding strategy An umbrella brand strategy allows the core brand to be nurtured by association with products with which it was not previously associated. Pros of using umbrella branding strategy The same brand supports several products in different market. so Nivea decided to extend it product categories to tap new set of consumers. that’s why they adopted the strategy of product category extension. the message that the core brand is communicating is not clear. . Umbrella branding strategy also helps in brand awareness and brand recall. which can reduce financial risk by using the parent brand name. The umbrella branding strategy also helps new product to penetrate in the market. To tap all age group of consumer both male and female. Brand Extension is of the new product development strategies. it may destroy the brand image.
. so that consumer can try their product. based on childhood. They were offering their consumer a innovative product. 19. Nivea is truly global product. Nivea is the mass market brand which offers the largest skincare assortment. attractive. Nivea adopted strategy of product variants. energetic and sympathetic. To differentiate their product from competitors. Nivea has a strong brand personality which is emotionally involving. Brand Extension frame work To maintain the brand extension framework. Nivea made sure that product extension that they are offering to the consumer is really adding value or not. Their product is made off natural ingredients. What are the core values of the Nivea brand? What type of brand extension framework did Beiersdrof develop to ensure that these core values did not get diluted? Answer Core values of Nivea: They were not using animal fats in their product. The Nivea brand has always been closely linked with consumer. Nivea always concern of keeping its brand young. Question 2. Nivea products meet consumer needs. and its product are same everywhere. . trust and love. so that they can tap every consumer from the all corner of the world.
Q2. 3. Physicalevidence: . Burger King and KFC. The name „Pret aManger‟ itself did advertise among people. office employees havea little time for lunch.2.reliable quality. How has Pret a Manger positioned its brand? 1. These 7P-elements can be described as below:1. strong individual background and dedication to moral ideas.otherwise pizzas.They did things differently.Ans. Product : Products of any company or brand should be consumer essential. freshness and uniqueness of product. which never compared with price by the consumers. and for the people‟.5. How has Pret a Manger positioned its brand? Q2 .: In the early 1980s. „ PretaManger ‟ fulfilled the need of people as wellas the quality.Explainhowthedifferentelementsoftheservicesmarketingmixsupportandcontributetothe positioningofPretaManger. Explain how the different elements of the services marketing mix support and contribute to thepositioning of Pret a Manger.4. PretaManger positionedas the most esteem brand within UK food and beverage sector. Pret started and marketed the product in a right place. Place : Pret‟s sandwiches are the best in London and now number one in UK‟s food and beveragesector. People :„ PretaManger ‟ concept is just like „by the people.2.Ans.such as healthy and high quality food with no preservative and additives. At the same time in 1986. by saying „ready to eat‟. so they used to took fast-food from McDonald‟s. so their brand positioned. of the people. The workers or employees who work for Pret are very cautious about health. Here the brand name „Pret aManger‟ functioned as an element of promotion.Pret a Manger: Passionate about food Q1 . where it needed. Pret‟s offering was based just about premium-quality sandwiches and other health-oriented lunches. As the awarenesscreated among people. they started searching good and healthy food. However. Promotion : Promoting a brand is most required as the quality of product. It has the extreme customer service.6. Julian Metcalf and Sinclair Beecham two property law graduates started shop with a name as „ PretaManger ‟ which means to „ ready to eat ‟ at CentralLondon. They fulfilled the requirement of consumers. Price : Price doesn‟t matters.Most of the people used to visit restaurants for traditional lunch and some to pubs. at London and other British cities the lunchtime eating is very narrow. quality matters. : The different elements of „ servicemarketingmix ‟ supported and contributed to „ Pret aManger ‟ as a famous brand in UK. Q1. „Pret a Manger‟implemented the same after looking the necessity of lunchtime eating in London and British.
widespread poverty (per capita US $360) and growing income inequality make Kenya a country of economic as well as geographic diversity. The stores are very weather permitting to seat and eat. Agriculture is the most important economic activity. The standard of living. The infertility Kenya has dictated the location of 85% of the population & almost all economic activity in the southern 2/5 of the country. subsistence and commercial farmers. Economic History . is a country located in East Africa. Kenya’s population is composed of many tribes and is extremly heterogeneous. Economy of Kenya Kenya’s economy has been beset by high rates of unemployment and underemployment for many years. Process : The process contains various operations. However. It also saves time andmoney of the company. Geography of Kenya: It has a diverse geographic and climatic endowment & 3/5 of the nation is semiarid desert. Each store plays music.7.The physical look of every Pret‟s store is distinctive.Saharan african countries.000 km2 and a population of nearly 39 million residents. such as people-place-price oriented. The self-service process is one of the best processes to save time of consumers and staffs. Nairobi is a major commercial hub. Arab’s muslims and cosmopolitan residents of Nairobi. high-tech style with dark red coloured interior. including traditional herders. Contd………. It has a land area of 580. to create a trendy and lively impression. About three quarters of the population still lives in rural areas and about 7 million workers are employed in agriculture accounting for over 2/3 of the total workforce. Its economy is the largest by GDP in East and central africa. Kenya is classified as a developing and sometimes an emerging African nation. in the major cities is relatively high compared to the average of other Sub. Brief about Kenya: Kenya. representing many different people and cultures. Kenya's capital.
farm production and farmer incomes. tea. In Agriculture Comprising 23% of 2000 GDP and 77% of merchandise exports. In Industry: It is the most industrialised country in eastern Africa. Public and private industry accounted for 16% of GDP in 2000 The Kenyan government has implemented several policies to nourish the agriculture sector. cashew nuts. Kenya’s expansionary economic policy is characterised byLarge public investments Support of small agricultural production units Incentives for private industrial investment (domestic and foreign) Which played an important role in the early 7% rate of GDP growth in the first decade after independence. Contd…… In the past 7 years (1973-80) the oil crisis let to a lower GDP growth to an annual rate of 5%. Lack of adequate domestic saving and investment slowed the growth of economy. pyrethrum. sisal. Various economic policies designed to promote industrial growth led to a neglect of agriculture and a consequent decline in farm prices.food processing Production of beverages Tobacco . and horticultural products. Traditionally. agricultural production is the backbone of Kenyan economy Kenya’s chief agricultural exports are coffee. coffee has been Kenya’s chief earner of foreign exchange. Two such policies are: Fixing attractive producer prices Making available amounts of fertilizer. Kenya’s chief manufacturing activities : .
Decrease in price of export. India. In the late 1980s & 1090s.87. Has second largest population in the world and a birth rate of 1. Pakistan & Bangladesh.- Footwear Textiles Cement Metal products Paper chemicals Kenya Current problems : Stagnating economy Growing political unrest A huge budget deficit High unemployment A substantial balance of payment problem Stubbornly high population growth rate. with increase in price of import. The country achieved independence in 1947 from Britishers. India moved away from socialist economy and political orientation and adopted market capitalism. Terrorism Corruption Questions : Is the economic environment of Kenya favourable to international business Yes or No – substantiate Case Study on Resurgent India? INDIA .263 km). .8%.A PICTURE OF PARADOXES Brief about India: India is the largest country in South Africa & seventh largest in the world (32. After that India was divided in to 3 parts.
As a result. ATMs have increased access to cash and computerization has improved the speed of bank stuffs. Inflation and interest rates have fallen with the reduction of external barriers. Green Revolution(1960-70): Agriculture contributes 28% in the GDP of India. After green revolution production is increasing at an annual rate of 3% plus. India has become robust for the industrial sector. . POSITIVE PART OF INDIAN ECONOMY GDP of India has an average growth rate of 5. Interest rates have been decreased. India is self sufficient in grain production.1% in 1973 to 19% today Financial Reforms: It has empowered consumers access to loans. bribe-laden procedures have been abolished. Poverty ratio has decreased from 56. Technological reforms: Its has revolutionized the capital market.T.India is at 43rd rank in global competitiveness. and is center of attraction for software and I. Economic Reforms: Low import duties have ended the smuggling and black market premium on foreign exchange has gone down. credit & debit cards and mutual funds. Computerization has facilitated micro-finance orgn allot. Captains of industries are free to decide and implement. giving India NSE & by facilitating dematerialization of shares Mobile phone has removed the deference between grass root persons and VIPs. Tortuous.3% in the 1980s and 6% in the 1090s and is now well past 9%.
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