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The professor will choose one of the following cases to take the test and give an essay question for you to answer

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The professor will choose one of the following cases to take the test and give an essay question for you to answer. It may also be the commonality of the two cases or other questions. 1- Case Discussion Guide for Jingdezhen Porcelain Industry.doc. in PDF, page 65-74 2- 2-Discussion Guide for Coca Cola's New Vending Machine (A).doc. in PDF, page 75-83 34- Case Discussion Guide for Heineken, N.V. Global Branding and Awareness.doc in PDF, page 93-106 4-Case Discussion Guide - Pepsi Blue.doc. in PDF, page 107-115 5- 5-Case Discussion Plan for P&G Scope Canada (rev1).doc Separate PDF Running Head: REDISCOVERING MARKET NICHES IN A TRADITIONAL INDUSTRY 1 On February 25th and March 3rd, we will discuss the above-cited case in class. The subject company is both an industry and a company, JCAC, a startup in the industry centered historically in Jingdezhen, China. During these discussions, you must be present and PREPARED to participate in these discussions. I will take attendance, and I will give points for participation. These discussions could become the basis for our midterm exam on March 16th. 1. Come to class on time 2. Bring your calculator 3. Bring this assigned case (which begins on approx. page 81) and your own study and classroom notes and your writeup. For February 25th, please complete the following and submit it through Blackboard, keeping a copy with you for class discussion purposes: 1. Read the case thoroughly 2. Make notes on JCAC and the history of its industry in Jingdezhen 3. Have typewritten answers (preferably outlined) to the following questions: • • Summarize the case narrative in five sentences. What factors caused or facilitated Jingdezhen’s success in the middle ages? • Using common source materials (Google, Wikipedia, etc.) explain the geography and logistics of delivering hand-crafted porcelain from Jingdezhen, China, to the distant capitals of Europe (eg: Paris, Venice, Amsterdam, etc.) in the 12th Century CE, including: 1. Outlining the route(s) taken and manner of travel/transport 2. Enumerate the that risks that producers, transporters, financers would have taken to deliver eastern Chinese goods to the capitals of Europe? 3. How would prices have mounted during the journey from eastern China to the capitals of Europe? • What are the problems (and the origins of these problems) facing the porcelain/ceramics industry in Jingdezhen currently? • What marketing strategies set JCAC apart from its rivals? • Which market segments Are available to JCAC? • Which strategy do you believe would be best for Jingdezhen porcelain makers (other than JCAC) to pursue? • What is a “global” brand? Does this term apply to Jingdezhen’s exports? REDISCOVERING MARKET NICHES IN A TRADITIONAL INDUSTRY 2 • How could JCAC develop a global brand? • What steps would be required to turn around fortunes of the porcelain artisans of Jingdezhen. REDISCOVERING MARKET NICHES IN A TRADITIONAL INDUSTRY 3 Deng Niandong founded Crystal-color Art and Crafts Co. Ltd.(JCAC) in 1995, a strategic investor who came from Beijing after the shutting down of several porcelain factories in Jingdezhen because of stiff competition. Deng had an objective of restoring the city's reputation for artistic chinaware. JCAC partnered with the leading porcelain factories in Jingdezhen to manufacture ceramics that were different from their competitors. The company dominated several markets both locally and internationally. It was awarded with a patent for its invention by the state government, which gave it support that increased its market share (Wallace, 2014). The patent also empowered the company to expand its ceramics business based on its intervention and allowed its competitors to exploit the invention by paying royalties to JCAC under the licensing agreement. Several factors facilitated Jingdezhen's success during the middle age period. Porcelain factories received endorsements and endless support from the state government, which helped the companies expand their business and dominate into local and overseas markets, i.e., the JCAC company. Factories in Jingdezhen partnered with the best porcelain factories that led to the production of quality and unique products demanded by many consumers (Wallace, 2014). The companies hired high skilled porcelain workers who had expertise in making ceramics who drew unique paintings and drawings that differentiated them from others. The ease of transportation in the porcelain industry in Jingdezhen was facilitated by Chang River, whereby the porcelain streets and markets were set along. All the Jingdezhen ceramics started their long journeys on Chang River, which loaded small riverboats. The river connected with Poyang Lake, which was the only way that connected Jingdezhen to its markets. Other routes from Jingdezhen included the Yangzi River, Longkou, Grand Canal, Hangzhou, among others. Transportation of Chinese goods to European markets led to the rise of several risks. Policy barriers created think borders to the porcelain transporters. The cumbersome custom procedures REDISCOVERING MARKET NICHES IN A TRADITIONAL INDUSTRY 4 and delays on crossing the borders were some of the risks that faced Jingdezhen. Since the Chinese products' transportation took longer days and weeks to reach the European markets, it affected the pricing strategies of the porcelain products. The manufacturers had increased the products' prices to cater to transportation costs (Gerritsen, 2020). Porcelain industries in Jingdezhen are currently facing several challenges. Most factories were using low technology, which was outdated in their production process, resulting in outdated products. Some companies that manufactured porcelain lacked innovation skills which led to the copying of the products by other competitors in the market. Jingdezhen's industrial production was on a small scale, which hindered the city's production growth. All these factors have led to the declining prominence of Jingdezhen in terms of its production and customer satisfaction. JCAC has established some of the marketing strategies that will give the company a more competitive advantage. Using Haier's model, they should focus on the niche markets and offer products that face less competition in the market. The company could contact global galleries to establish and enhance its brand name globally. Also, JCAC could contact large international gift distributors to expand the company's sales volume. The JCAC market segments include; The collectors market, mass market, the state government, and corporate market. JCAC could also try and implement the digital marketing strategy. In my own opinion, I think it's the best strategy for the company since it involves the marketing of the products through online platforms such as social media and search engines (Wallace, 2014). I today's era, most companies are going digital since most consumers want to shop online; it would be better to implement this strategy to cater to this particular group. A global brand is a brand that is recognized worldwide. This term also applies to Jingdezhen exports despite its current challenges. For centuries, the Chinese produced the world's REDISCOVERING MARKET NICHES IN A TRADITIONAL INDUSTRY 5 finest porcelain which makes it a global brand. JCAC could develop its brand globally by starting new flagship stores in the prominent America and contacting galleries worldwide. To turn around the porcelain artisans' fortunes in Jingdezhen, they should be compensated according to their performance. They should be hired according to the knowledge and skills and should be given further training to enhance their skills (Wallace, 2014). Also, they should be motivated through bonuses and rewards to retain them. REDISCOVERING MARKET NICHES IN A TRADITIONAL INDUSTRY 6 References Gerritsen, A. (2020). The City of Blue and White: Chinese Porcelain and the Early Modern World. Cambridge University Press. Wallace, J. (2014). Global Business Problems. California State Polytechnic University-Pomona. • Develop and submit answers to the following questions: 1. Summarize the case in five sentences 2. Is selling Coke through interactive vending machines a good or a bad idea? Why? 3. What are Coca Cola’s values, and what does what does Coca Cola mean to the average consumer? 4. Where, how, and for whom does this new technology create or destroy value? 5. Are there any pricing issues that can adversely affect the firm? 6. What did Coca Cola do right? Wrong? How would you have done it differently? 7. What is price discrimination, and when does it work? 8. In what circumstances do YOU tolerate price discrimination? 9. How does the Internet affect the ability of firms to price-discriminate across consumers? 10. What do you think of CEO, Mr. Ivester, and his comments? 11. Define “policy.” 12. What policy changes should the company’s Board of Directors make? Discussion Plan for Coca Cola’s New Vending Machine: Pricing to Capture Value, or Not? 1) The case is about the introduction of automatic vending machine by coca cola company that was proposed by the chairman, M. Douglas Ivester. The idea was published in various media outlet including the New York Times, which stirred mixed reaction from the people and competitors. The vending machine aimed at taking advantage of advancement in technology in developing vending outlets that adjusts the price of coke soda based on temperature. The ingenuity was implemented in japan and was working very well given the development of computer chips and the internet. Critics viewed the idea as an agent of price discrimination and taking advantage of weather to exploit customers for more profits. 2) An interactive vending machine is a good idea because it promotes sales for the company by allow the company to explore on innovative technology in it marketing strategies to improve customer experience. 3) Coca-Cola’s values include availing affordable products at customers reach and meet customer desires in all its outlets. Coca-Cola considers its customers as average consumers; hence, it doesn’t practice consumer discrimination and aim at charging same prices across its market. 4) The new technology creates value for the consumer in its local market and international market. The new technology will bring the products closer to the customers and avoid long walks to find stores for a can of soda. 5) Increasing the price due changes in temperatures will raise the issue of price discrimination, especially for people who live in hot areas where the price will always be high. The price discrimination in such areas will lead to loss of customers and market share for the firm, as customers will tend to seek alternative from its competitors. 6) Coca-Cola could have implemented the idea of automatic vending machine but maintain prices on the current level of demand and supply. I would implement the idea but the price fluctuations would be based on the demand and supply in the market. 7) Price discrimination is the practice of charging different prices for the same product in different markets. Different consumers are charged differently based on their willingness to pay. Price discrimination works when the firms is the price maker for a product whose demand is elastic and seller has information about how much the buyer is willing to pay. 8) You can tolerate price discrimination when you less information about prevailing prices in the market or when buying a luxurious product whose price is not determine by the forces of demand and supply. 9) Internet enables firms the collect information about consumers purchasing behavior and their willingness to pay for high prices for products. In this case, the firms use consumers purchasing information to set different prices for the same products. 10) The CEO’s comments on the introduction of automatic vending machine shows that his focus was on improving company’s profits by capitalizing on the increase in demand for coke soda during summer events. I think he did not consider the issue of consumer rationality, which is to increase utility and minimize cost, even when the demand is high consumer will always consider paying low prices at all cost. 11) Policy is a course of action that a company adopts or proposes to meets its set objectives. 12) The company should propose ways in which Coca-Cola can retain its brand image in the market amid public outcry on the proposed automatic vending machine. The company should adopt the idea of availing automatic vending machine in its local and international market to enhance customer value. Heineken, NV: Global Branding and Advertising: Preparation for March 23rd We will devote three days to discussing the above-cited case. The subject company is an internationally recognized alcoholic beverage manufacturer. During these discussions, you must be present and PREPARED to participate in these discussions. I will grade your participation (or lack of it). 1. Come to class on time 2. Bring your calculator 3. Bring this assigned case (which begins o/a page 93) and your own study and classroom notes. For March 23rd, please complete and bring the following with you to class (after submitting through Blackboard: 1. Read the case thoroughly 2. Make typewritten and stapled notes on Heineken and its position in various countries and the Product Life Cycle, with answers to the following questions: • Summarize the case in five sentences • List and explain Heineken’s strengths and weaknesses, citing case material? • List and explain Heineken’s brand values • What has been learned from research? How would results of test market help or hinder brand building? • How can the Heineken brand be developed through marketing communications? • What should be the role of Heineken’s headquarters in shaping the marketing of the brand worldwide? • Explain why Heineken is - or is not - a global brand? Case Summary The Heineken brewery was founded in 1863 in Amsterdam, Netherlands. The company moved beyond a start-up to gaining an international presence in the rest of Europe, Asia, Australia, Africa, and America. 100 years after its foundation, the company recorded net sales of 9,049 million and a profit of 798 million. Besides, the company acquired other brands and oversaw the brewing of many local brands. In 1994, the senior managers in the company reviewed two projects, Project Comet and Project Misa, which focused on the assessment of the brand’s image. Strengths and Weakness Strengths i. Strong brand image ii. International presence iii. Quality products iv. Good advertising Weaknesses i. Competition from other breweries both locally and internationally The company's strong brand image can be identified from the foundation of its brand values. Ideally, the company was committed to creating a brand that prides itself on brewing high-quality products. Besides, the company gained an international presence. The company operated in other European countries besides the Netherlands and also made a presence in America. Africa and Asia. Ideally, such an expansion proved the company's intent to grow beyond its geographical origins. Besides, the company's quality products can be identified from the mention of the great taste of its beer products. Also, the company was known for good advertising. Over 95% of its advertising took place in TV commercial brands. However, the company faced the challenge of competition. With various companies striving to emerge ahead of the game, the company was operating in a competitive environment. Brand Values i. Taste ii. Premiumness iii. Tradition iv. Winning spirit v. Friendship Taste and premiumness are essential values that were considered as the main components of market entry. In the advertising concept, Project Comet mentioned that the aspect of taste can be achieved through the slow pouring of the drink, whereas the premiumness can be achieved through quality production. Besides the value of tradition states the need for setting an authentic tone of the brand. Also, the winning spirit mentions the need for creating a tone the conveys a value of confidence. Besides, the company introduced the value of friendship to portray the solidarity and positive engagements that are achieved from the drinks. Research Takeaways One of the key takeaways from the research is the need to conducts a continuous assessment of the various operations in an organization. With the changing dynamics of the business market, the business operations should be frequently explored and reexamined to ensure that company is operating within the competitive frameworks of the industry to avoid being left behind. As such, the test results would help in identifying the areas that require intervention or improvement to ensure a continuous strong brand image in the market. Developing brand through marketing Marketing communication is a fundamental concept that contributes to the improvement of the brand image in the market. Heineken can use advertising to deliver a message regarding the quality and authenticity of its products to the public. Besides, the company can use advertising to inform the public regarding the availability of new brand products in the market. Role of Heineken’s headquarters The company's headquarters should oversee the research conducted on the marketing framework in the market. Ideally, the headquarters can oversee such projects by ensuring that proper research experts are recruited. Also, the headquarters should ensure that the advertising researchers receive the proper funding to complete the study. Heineken is a global brand Heineken is a global brand. The company has ventured into international markets such as the rest of Europe, Asia, America, and Africa. References Wallace, J. (2012). global business problems. Pearson. Running head: THE PESPSI BLUE CASE 1 Pepsi Blue: Preparation for April 6th, et seq. We will spend up to three days discussing the Pepsi Blue case, relating it to previous discussions. The subject company is an internationally recognized non-alcoholic beverage. I’ve chosen Pepsi Blue, in part, because we’ve visited its archrival, iconic Coca-Cola, and because I want you to consider what it means to market a lesser brand against a larger, older, and deeply entrenched competitor. I have also chosen it for its strategic similarities to Heineken, NV. During these discussions, you must be present and PREPARED to participate in these discussions. I will give points for participation. 1. Come to class on time 2. Bring your calculator 3. Bring this assigned case (which begins o/a page 91) and your own study and classroom notes. Please complete the following: 1. Read the case thoroughly. 2. Make typewritten notes on Pepsi, its role in the beverage category, and its objectives going forward. 3. Include answers to the following questions: • Summarize the case in five sentences • What is the purpose of the Pepsi Blue Project, and why has it been initiated? • How well have the new identity and logo been tested? • Why was the test market chosen? Was it a success? • To what extent will this test market help or hinder brand building? • How well did the test market serve the purpose of the Project? • What issues will facilitate or impede the introduction of Pepsi Blue to the market? • Estimate from case material how much Pepsi spends for each 1% of market share. Make the same estimate for Coca-Cola. Please show your work. THE PEPSI BLUE CASE 2 The Pepsi Blue Case Summary The Pepsi Company on the basis of 1995 revenues, was ranked 20 in the Fortune 500 and 30 in the market value among all companies in the world. In that same year 1995, Pepsi company sales increased in both the US and outside the US markets. Pepsi products accounted for 27% and 23% of the retail value of carbonated drinks sales and volume shares respectively while Coca Cola being the lead, accounted for 35% and 30% respectively. With the aim of rejuvenating Pepsi image against the Coca Cola red color, the Pepsi-Cola International’s beverage division in November 1995 arranged and publicized the change in the identity and logo of the Pepsi soft drinks. In order for Pepsi to have updated the look of Pepsi cans and bottles, Point of Sale signage, trucks and vending machines all over the world, they estimated a budget of $500 Million investment in what they called Project Blue. Pepsi Roles in the Beverage Category THE PEPSI BLUE CASE 3 The Pepsi Company beverage products include, bottled water, tea, juices and a variety of soft drinks such as Pepsi, Diet Pepsi, Pepsi Max, 7-Up, Slice, and mountain Dew. According to the international operations 1995, the Pepsi Company’s beverage revenues accounted for 29% while the beverage operating profits accounted for 18%. Three Pepsi brands i.e., Pepsi, Diet Pepsi, and Pepsi Max accounted for 40% of its sales in the US with 4 billion cases of 24 8-oz. cans being sold. Besides, 2 billion cases of the three Pepsi brands sold outside USA accounted for 70% of the Pepsi Company’s international beverage sales made in 1995. However, the Pepsi Company 1995, invested in expanding its market share over the Coca Cola Company which had acquired a significant market share both domestic and international markets which recorded an increase of 3% in domestic markets and 7% in the international markets compared to its previous share in 1994. Pepsi’s Objectives Going Forward In 1930’s, the Pepsi Company established its market place rivalry against the Coca Cola by introducing a price-oriented campaign. In 1970’s, the Pepsi Company conducted the Pepsi Challenge whose objective was to gain taste superiority over the Coca Cola products. Approximately 20 Million people participated in the Pepsi Challenge with which 60% opted Pepsi over Coca cola. Further in 1980’s, both Coca Cola and Pepsi Companies invested heavily in Image advertising and celebrity endorsements. Pepsi Company targeted the teenage group with a tagline, “The Choice of a New Generation”, while the Coca Cola targeted a broader target group with a tag line, “Always Coca Cola”. The Pepsi system’s two most important products launch of Crystal Pepsi and Pepsi Max took place in 1993. The Crystal Pepsi launched in the US failed to achieve more than 2% of its volume share of carbonated beverage sales. While, Pepsi Max launched in the UK market supported by television advertising while targeting people between 16-29 years gained a 5% THE PEPSI BLUE CASE 4 volume share in the UK markets. Pepsi’s strong record of packaging innovations, investment in acquisition joint ventures in emerging markets and continued usage of surplus cash to purchase partial or total control of its independent bottlers worldwide led to the increased sales growth in the Pepsi Company by 1995. The Blue Project The blue Project was initiated by the Pepsi Company with the aim of rejuvenating Pepsi image by associating it with the blue color in contrast to the Coca Cola’s red color. A team of consultants and PCI executives identified blue as a much stronger color that would own contrast to the Coca Cola’s red color. Consumers on the other hand viewed the new color as a modern, cool, exciting, dynamic and associated it with a color that communicated refreshment. In October 1995, the Pepsi Company conducted a market test in Bahrain. Bahrain was chosen because Pepsi sales dominated Coca Cola sales, Pepsi had started experimenting the blue backgrounds in point-of-sale materials since the standard white material caused the logo to be washed out and Bahrain market was only served by a single franchise bottler who had been critical to PCI headquarter. In addition, Bahrain has a small population which made it easy for the PCI to conduct a controlled field test of the blue impact. Tracking research was done before and after the market test indicating a success of blue project in Bahrain. The market test did not serve the purpose of the project because Bahrain results could not replicate the worldwide impact of the Blue since Pepsi had gained unusually high share in Bahrain. Besides, bottlers in Latin American such as Mexico had established strong capital investments hence it would be difficult to implement the blue project. However, the large market shares in the UK market were considered to be a good market after the successful launch of the Pepsi Max product. Some executives therefore, saw the need of waiting until all the bottlers were committed into going with Blue for the sake of the global launch. The PCI THE PEPSI BLUE CASE 5 executives agreed to invest in $500 Million marketing program to facilitate the world-wide launch. Estimates from case Material of how much Pepsi and Coca Cola spend for each 1% market share In USA Pepsi spends 1/100* $500 million = $5 million per 1% of its market share, while Coca Cola spends 1/100*$1,200,000,000 billion = $12 million per 1% of its market share. In the international markets, Pepsi spends 1/100*$200 Million =$2Million per 1% of its market share while Coca Cola spends 1/100*$600 Million = $6 Million per 1% of its market share. Reference Wallace, J. (2012). global business problems. Pearson. GUO1 Discussion Plan for Proctor & Gamble Scope Canada: Up to six days of Discussion beginning April 13th. Day 1: Student Preparation • • • • • Read Case thoroughly (12 pages with data) Summarize the case in five (5) sentences Make TYPED notes on changes in Canadian mouthwash market over past three years Make TYPED notes on Scope and competitors’ pricing and market shares TYPED evaluation of Scope’s performance during last 3 years (think carefully and justify your conclusions) Day 2: Student Preparation: TYPED notes on the following • What are Scope’s alternatives, given the competitive situation? o o • • • Pro and cons of each option Business case for each option Calculate P/L and Breakeven analysis for Scope (MANDATORY) Calculate the value of market share in sales/profits to the brand Estimate value and impact on profits and shelf price relative to competition given 5% price increase. Both days: Students are required • • • • Bring calculators Attend class P & G Scope CN case materials and their own study and discussion notes. Participation will be graded depending on level of preparation and willingness of student to take risks with the data. GUO2 Procter & Gamble Scope Canada Summary of the case Procter & Gamble is among the prosperous companies dealing with consumer products in the globe. The Company’s Canadian branch known as Proctor & Gamble Scope Canada is a frontrunner in supplying packed goods in the in the market. The following is summary of case. o The products of the Company are advertised in over 140 nations and had its net income stood at 1.6 billion dollars in 1990. o Scope is the frontrunner mouthwash merchandise in the Canadian mouthwash industry. o Plax is a mouthwash product that is airing danger to overtake scope as the frontrunner product in the market industry. o The company dares the product manager to create a three-year marketing strategy with a motive of advancing the sales of scope. o Plax’s pressure on overtaking Scope is caused by the added advantages it offers which include pre-brushing and fighting plague. Changes Three years before 1990, the Canadian mouthwash market had experienced some significant changes. For instance, there was introduction of new tastes in several major products like Scope and Listermint in 1987. The resultant change that occurred form the introduction of such flavors is increasing the Canadian mouthwash market to 26 percent. In 1988, another important change ensued in the Canadian mouthwash market where Listerine started marketing its brand by claiming to fight a plague and prevent exacerbated gums. In this period, Listerine GUO3 received important marketing support for a reason of combating the menace bad breath. In the same year, a Canadian marketing Company by the name Strategic Brands convened a licensing treaty with Merrel Dow to advertise Cepacol. The contract helped Merrell Dow to make several distributions of Cepacol as the advertisements made its affordable prices made to people through promotions. Finally, Plax entered the industry in 1988. Plax dealt with pre brushing services and it was advertised to eradicate up to thrice more plague than brushing only. Pricing and market shares Scope had the highest market shares both in food stores and drug stores within the three revealed years. Scope, Cepacol, Listerine and Plax had the highest shares in the market. Their products entered the market through top wholesale stores like Price store and Costco store. Competitive data shows that Scope, Palx, and Listerine had the highest expenditures in making advertisements. Scope was the leading with $1700 followed by Listerine ($1600), Plax ($1200), Listermint ($330), and Capecol ($170). Scopes performance For the last three years (1987 to 1990), Scope as a brand had performed well in the Canadian mouthwash industry. It was the frontrunner in the industry all along owning an approximation of one-third of the entire market shares. Scope led in market shares both in Canada and in the United States of America. However, the introduction of Plax in conjunction with Cepacol’s expansion caused a threat to overtake Scope. As a result, there was need for Scope to do something about them to continue topping in the industry. Despite doing well in the industry, Scope’s market shares decreased between 1988 and 1990.