CASE STUDY – Groomers Incorporation – 60 marks

Groomers Incorporated Jamaica Ltd., as a maker of men’s and women’s razors and
electric hair trimmers, had little reason to become involved in the global arena. It was making
huge profits in the home market, had a great national reputation and all its marketing objectives
were being met. However in 2012, it was approached by Wellman Enterprises, a French
company, for a business opportunity. Wellman Enterprises engages in the production of
women’s hosiery. Managers at Groomers Inc. are now wondering whether a company-wide
global focus would be more profitable after all.

Groomers Inc. studied Wellman’s business opportunity in great detail. After seeing first-
hand the benefits Wellman is projecting for the international marketing opportunity, they were
excited about having their razors and trimmers sold in France. However, it was decided that
Groomers Inc. would target the French market merely via exporting and ignoring Wellman’s
business proposition. .
With the assistance of a domestic export department, the Groomers Inc. entered France.
For six months, sales were mediocre. But after that, sales suffered. Opinions varied among
numerous managers as to the cause of the failure. “Who knows better the local market than
people who live there?” was a comment heard throughout Groomers Inc.. “Maybe we do need to
get an agreement with a French firm such as Wellman. Maybe we should revisit Wellman’s
proposal”.

Groomers Inc. decided that they would go into business with Wellman but they did not fully
research Wellman’s history and reputation. As a result they did not realized that Wellman had
been criticized for a number of wrongdoings such as charging exorbitantly high prices, engaging
in deceptive practices or high-pressure selling, sold shoddy or unsafe products, or provided poor
service to disadvantaged consumers.

Without fully realizing the extent of Wellman’s problems, Groomers Inc. went into business with
them in hopes of having a profitable involvement in France. “

Case adapted from Kotler’s Principle of marketing and does not reflect a real company.

Questions

1. What are five (5) main factor(s) that pulled Groomers Inc. into international marketing in
2012? (5 marks)

2. Outline five major environmental variables that Groomers Inc. must consider when going
overseas? (10 marks)

3. Describe four (4) main ways that Groomers Inc. can sell its products overseas apart from
exporting? Note two (2) advantages and two (2) disadvantages of each method.

(20 marks)
4. Identify three (3) ways in which Wellman was not behaving socially responsibly. Name
and outline three (3) legislated organizations set up in Jamaica to ensure that companies
behaved ethically. Give three reasons why Groomers Inc should ensure that this negative
image is changed. (25 marks)