Quiz 16: Global Marketing and RD
It is wise for the mentioned company to stick to its traditional business model of take-out and delivery of pizzas. The evidence showed that pizza is viewed as an occasional treat rather than a meal of convenience. These days the mentioned company does have more tables in their stores internationally, than in the US, for people who want to sit and eat in the store. But, they do not provide any service. The patrons are expected to serve themselves and clean-up afterwards. This was done by them when international rivals were changing to full service restaurants, but the company stuck to its traditional model. It has been noticed that the company deliver's even at the places where its rivals in India will not. This has resulted in many other food genres also adopting the home delivery model. Thus, it is wise for them to stick to their traditional model while including some changes as well to combat the competition.
While babies' behinds serve the same function in all cultures, and the product's technical standards may be similar, sensitivity to bodily functions does vary across cultures. Thus, the advertising message may need to be changed for different attitudes towards what is appropriate advertising. Likewise, where it might be progressive to show an ad with a male changing a diaper in some countries, in other countries this message could be lost or misinterpreted. Another consideration would be the noise level created by the advertising message of competitor's products, which may well be different in Brazil. While local demand and price elasticity decisions should play an important role in Brazil, pricing should not be left solely to the discretion of the local managers. Since this is a global business, your firm will likely be competing in Brazil with some of the same competitors as elsewhere. Thus pricing decisions in one country can have an impact on pricing and competition in other markets. Similarly, your firm may want to position and price the brand similarly across different South American countries.
An attribute is a quality or characteristic inherent in or ascribed to a person or an object. When a product is defined as a bundle of attributes it includes the various characteristics that it possesses. Example : An automobile is defined by its power, fuel economy, comfort, maximum speed, and the brand name of the manufacturer. Different automobiles will emphasize different attributes depending on the target market. Ferrari emphasizes when selling its cars, the styling, power, maximum speed and the Ferrari brand. This is because it caters to a market where the customers are looking for these attributes. Tata Motors sells its Nano by emphasizing on its low price, fuel economy and the brand name.