Please Follow the example case and complete the following case study. Please note that all sections must be complete. The key issues section is critical. Look for the terms and concepts that we have learned and apply them to the case. Do not define the key issues. What in the case makes them the key issue?
Companies who market internationally often have to work hard to find an effective and profitable balance between standardizing their marketing strategies while still reflecting an understanding of the unique characteristics and consumer behavior present in those markets.
IKEA, the Swedish furniture and furnishings company, is a good example of a retailer trying to find that sweet spot between standardization and adaptation. Its unique mission is to “create a better everyday life for the many people,” in particular, helping consumers with “thin wallets,” to be able to afford stylish furniture and home furnishings, as the store describes its niche. The company has 370 stores in 47 countries worldwide and a goal of 500 stores by 2020. To put its international footprint into perspective, IKEA has stores in more countries than Walmart and these are more profitable than Target and Lowe’s. In Beth Kowitt’s Fortune article “How IKEA Took Over the World,” the company is recognized as having mastered one of the hardest retail challenges: selling high volumes of inventory at a consistently low price in vastly different marketplaces, languages, and cultures. How have they achieved a successful balance between standardization and adaptation in their international markets?
First of all, the company credits marketing research for much of its success. Mikael Ydholm, head of research, says “The more far away we go from our culture, the more we need to understand, learn, and adapt.” At the same time it must look for points where cultures intersect. With a focus on volume production, IKEA does not want to have to adapt its products for each country market. But it has figured out how to show the same product working into the lifestyles of different locations around the world. By visiting the homes of consumers in different countries it has uncovered the similarities and differences in how consumers around the world use and interact with IKEA products.
Through its research, IKEA pays special attention to the subtle differences that are so important in international marketing. It also takes its time to develop strategy. For instance, it’s taken the company 6 years to move into South Korea, but even with that kind of lead time mistakes were still made; for instance a map mislabeled what South Koreans call the East Sea as the Sea of Japan.
Much of IKEA’s recent international growth has been built on the growing middle-class markets in emerging markets, which was a logical step for IKEA. It has always excelled at creating a sense of fantasy for customers who visit its stores. Tom Novak describes it as a creation of “domestic tableaux and scenes from a home life we imagine living.” In his Trend and Tonic post he describes how “these fantasies of new living are crucial for emerging global powers like China, India, and Brazil who all have rising middle classes.” IKEA is carefully tracking the growth of the middle class in these markets and has opened stores in countries like Croatia, Indonesia, Thailand, and China. In fact China is the market where it is experiencing the fastest growth and which has eight of the largest stores.
Novak argues that IKEA’s minimalism translates well across cultures because its simple furniture is chic yet practical. He also suggests that Sweden as the “country of origin” for the IKEA concept may enjoy the unique ability to appeal politically or ideologically to other cultures. It may be seen as able to fill a void for international consumers who are drawn to the Western fantasy but who want to avoid Western controversy. In fact, products retain their Swedish names in markets around the world as a way to build on the positives of IKEA’s brand identity.
Although IKEA may work hard to keep a more universal product approach, when it comes to its catalogs it defers to adaptation of language and culture. The company prints 212 million catalogs a year. Kowitt reports that catalogs come in 32 languages and 67 versions, which enables the company to do a better job of reflecting local customers and customs. Photo shoots for the catalogs are all done in a studio in Sweden where an employee is responsible for making sure that shots taken of each room set-up are appropriate and culturally sensitive for each of the different catalog versions being produced. For instance, they want to ensure that the Taiwanese catalog doesn’t feature glass products from mainland China and that Israel’s catalogs don’t picture Persian rugs.
The company admits that it has made cultural faux pas in the past with its catalog, like photoshopping women out of catalogs for Saudi Arabia and removing a lesbian couple from a version for Russia. IKEA Communications officer Kajsa Orvarson says, “We have done mistakes, but we are becoming more and more aware of how to improve and to share our values.”
format to follow
This assignment is due by midnight on Sunday, at the end of each week. No late assignments will be accepted without advance permission from the instructor.
On every case assignment you must meet the minimum standards for depth and organization. Any case analysis that is under 500 words (not counting title and references) will receive a zero. Each case also must have a minimum of 3 outside references, not counting the textbook.
Below is a Sample Case Analysis. This sample gives you a clear example of how the required case analysis format should be delivered. Follow this format in your analysis.
Do not use the Key Marketing Issues used in the sample case. Each case will have its own set of Key Marketing Issues which you will choose based on the details of the case content and the class reading. Follow this format on all 8 case analyzes.
Sample Case Assignment Analysis Format
MRKT 5000 Online Course
(Instructional notes in red)
(Your name here)
Can Pepsi make Pepsi One the One? (This is a case from a previous edition of the Marketing text – not currently in your text book. This is only a sample analysis to demonstrate analysis format only)
(Each case to be analyzed will be read from the text, with specific questions assigned)
(These are the issues in this particular case – each case will have a different set of Key Issues)
Personal Case Analysis
I learned that Pepsi One was a product created by a modification of an existent product “Pepsi Diet”. The product modification was the sweetener used. A new taste of cola was added to the appeal for a low calorie soft drink. By trying to differentiate Pepsi One from a classic Diet product, PepsiCo shows its innovative style and gain market share from Coca-Cola.
1- Is Pepsi One a new product, a modified product, or a line extension? Explain your answer.
Pepsi One is a new product, line extension and a modified product. Pepsi changed the sweetener to acesulfane potassium (ace K) to create the Pepsi One and tried to be unique by being a low calorie soft drink, which tastes a regular soft drink.
2- In what way is Pepsi One positioned?
Pepsi One was positioned by including characteristics that target market most desires. Understanding the diet aspect of Pepsi One helped attract an unusual market segment for a diet drink: cola-loving males in their 20s and 30s. The product is not made to compete head to head with Diet Pepsi.
3- Over the years, PepsiCo has had a number of product failures. Evaluate PepsiCo management’s decision to introduce Pepsi One?
PepsiCo was launched just after test indicated consumers liked its taste as much as its creators did. In extensive home-use tests, almost 70 percent of Pepsi One tasters reported they would purchase the product again. To differentiate Pepsi One from the horde of diet soft drinks, PepsiCo focused on the product’s taste, which is almost indistinguishable from the taste of sugared soft drinks.
The company that wants to be competitive needs to be innovative and always introduce new products in the market. PepsiCo used line extension of its Diet products to create Pepsi One. Pepsi One is a product modification as well, which was consisted of in changing the sweetener to acesulfane potassium (ace K). This aesthetic modification provided the product differentiation that appealed to customers as product with low calorie that tastes as a regular soft drink. The different product design that included change on the styling never seen before, helped to position the product among the cola-loving males in there 20s and 30s. By being innovative Pepsi One is guaranteeing its position on the soft drinks market, taking some market share from its big rival “Coca-cola.”
(Each analysis must include a minimum of three outside references, not counting the text or references from the case subject directly)
Bramhall, Joe, “Pepsi Inc”, Hoovers, http://www.hoovers.com/xm-holdings/–ID_60656–/free-co-factsheet.xhtml
“Choosing a soft drink”, Soda pop.com Click & Learn: http://www.pepsicity.com/rpsm/edOid/105548/rpem/ccd/lookLearn.do
Deitz, Corey, “Learn the Difference to Make the Best Choice For Yourself”, Your Guide to softdrinks, December 29, 2005, Pepsi and Coke Comparison Chart
Company Profile, “Pepsi, Inc”, February 10, 2006, NAMC Newswire, http://www.newswire.com/companyprofiles/xmsr.html
Insight from Standard & Poor’s, S&P Boosts Pepsi to Strong Buy, BusinessWeek online, February 9, 2006, http://www.businessweek.com/investor/content/feb2006/pi20060209_35961.htm?chan=tc
We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.Read more
The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.Read more
The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.Read more
By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.Read more