International Marketing - Case studies

1. International Marketing
463-441
Case Studies

2. Bangkok Hospital

3. Medical tourism worth USD $4 Billion (2012 projection)
One of Asia’s fastest growing industries
1.3 million customers to locations like Thailand
Healthcare in Thailand 50% cheaper than Singapore, 3 times cheaper than
Hong Kong, 5 times cheaper than Europe.
Thailand considered “First class service at Third World prices” CBS

4. Bangkok Hospital one of the best in Thailand
From 1972 expanded from one hospital to 12 hospitals, 16 specialist
Centres and 15 clinics.
Eight other facilities in Cambodia, Myanmar and Bangladesh
Positioned as the convenient and integrated healthcare solution

5. Positioning Differentiation
Brand Integrity
Thailand’s convenient and Wide network of hospitals in the country
Integrated healthcare Wide range of healthcare services
solutions offered
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Bangkok Hospital
Positioning-differentiation-brand triangle of Bangkok Hospital

6. The Extent of International Involvement
Internet
Exporter
Exporting
Greater
Control
Importer And
Greater
Distributor Risk
Direct Sales
Contractual Arrangements Licensing & Franchising
Strategic Alliances
Strategic Alliances
Joint Ventures
Ownership Direct Foreign Investment
Cateora & Graham P. 323

7. Market Targeting Market Positioning
Market Segmentation
Develop Measure of Develop positioning
Identify bases for segment attractiveness for market segments
segmenting the market
Select target segment Develop a marketing mix
Develop segment Profiles
for each segment
Major Segment Variables for Consumer Markets
Existing Product Sales, MarketVariables
Geographic share, Growth and Decline,
RelativeRegion and/or countryetc.
World market sizes,
City and/or region
Density
Climate
Demographic
Age, gender, family size, family life cycle, income, occupations, education, religion, race, generation, nationality
Psychographic
Social class, lifestyle, personality
Behavioural
Types of occasions and festivals, existing market cultures, user status, loyalty status,
concept readiness stage, attitude towards products

8. Generic Global Marketing Strategies
Strategic Option Comment
1 Product and marketing practice Using the same strategies everywhere
extension
2 Product extension marketing While using the same products everywhere, using
adaptation marketing strategies according to local market
characteristics
3 Product adaptation marketing While using the same marketing strategies,
extension adapting the product offering according to market
needs
4 Dual adaptation Adjusting the product and marketing strategies
according to market needs
5 Product and market invention Innovating a new product and developing a new
marketing strategy for it in each market
Keegan, W., Global Marketing Strategies, Prentice Hall, NJ, 1999

9. Global Product Standardisation Types
High
(Global Scale)
Global Standardisation Modular standardisation
Aircraft and multi-brands
Microprocessors Elevators
Basic Chemicals IT services
Pulp and Paper Beer
Minimum Size Examples: BASF, Dell, Intel Examples: OTIS, Heineken
of Production
Process standardisation Local Adaptation
Cement Foods
Consulting services
Examples: Siam Cement Example: McDonalds, Carrefour
Low
(Local Scale)
Similar Different
(Local Segments)
(Global Segments)
Customers’ Needs Around the World

10. New Market
Entrants, eg:
• geographical
factors
• incumbents
resistance
• new entrant strategy
• routes to market
Buyer Power, Competitive Rivalry, Supplier Power, eg:
eg: eg: • brand reputation
• buyer choice • number and size of • geographical
• buyers firms coverage
Figure 7. Porter’s Five Forces of Competitive Position
size/number • industry size and • product/service level quality
• change cost/frequency trends • relationships with
• product/service • fixed v variable cost bases customers
importance • product/service ranges • bidding
• volumes, JIT • differentiation, strategy processes/capabilities
scheduling
Product/Technolog
ion
y
s
Development,
t
nd
ula
eg:
e
g • alternatives price/
Tr
Re quality
• market
distribution changes
• fashion and trends
• legislative effects

11. • What segment does the company focus?
• Who is the company targeting?
• Selling method?
• Marketing mix?
• Positioning?
• Differentiation?
• Service?
• Process?

12. Royal Selangor

13. Commenced in 1885 for local Chinese market and expanded into
Other products during British Colonial period, with export to UK
Now produces range of prestigious products including medals for Malaysian
Grand Prix and Sydney 200 Olympics
1970s export to Singapore, Hong Kong, Australia, and then onto Europe.
Now export 20 countries with number of exclusive distributors, including
Harrods, Mitsukoshi, Myers and David Jones. Also exclusive shops in
Australian Malls, Canada, Hong Kong, Indonesia, Japan, New Zealand, UAE,
Thailand and US.
Commissioned designers to create works
Develop technology with Australian company to produce feature walls

14. Positioned as Malaysia’s gift to the World, created wonderful shopping experience
With first class service, e-sales via internet.
Still hand cast products with some tradition
Skilled craftsmen with extensive distribution network

15. Positioning Differentiation
Brand Integrity
The World’s most innovative Wide range of innovative products
Highly skilled craftsmen
Pewter crafter Wide distribution networks
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Royal Selangor
Positioning-differentiation-brand triangle of Royal Selangor

16. San Miguel

17. Started in 1890, first official brewery in Spanish occupied Philippines
and all of S. E. Asia.
Began exporting to Guam, Hong Kong and Shanghai
Opened brewery in Hong Kong in 1948
One of the top 20 beer brands in the World
Now diversified and produces a wide range of food and beverage products
Now manufacture in Vietnam, Indonesia, Thailand, China and Australia
Beer accounts for around 75% of the corporation’s profits
and 80% of its sales from the Philippines
90% beer market share in Philippines, 87% of soft drinks, 60% processed meat
And 40% of poultry

18. In Thailand paid US $100 million for Thai Amarit
Own Anker bir in Indonesia
Technology through international partnerships
Equity injection from Japan’s Kirin Beer
Partner in Australia J Boag & Son, put it in premium beer market
24% share in China beer market acquiring Guandong Brewery in 94
– Dragon and Valor
Bada Baoding Brewery in Northern China – Blue Star
30 different beer labels to suit various tastes

19. Positioning Differentiation
Brand Integrity
The unofficial beer of the
High quality brewing
Philippines with
Large distribution network
World-class quality
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San Miguel
Positioning-differentiation-brand triangle of San Miguel

20. Black Canyon

21. Established in 1993
120 locations in Bangkok and other cities in Thailand
Old West cowboy theme
Shopping malls, airports, hospitals, train stations, convention centres
2002 opened 4 outlets in Malaysia, 4 in Indonesia, one each in
Singapore, Myanmar and Cambodia.
Also 4 branches in Middle East
Full restaurants, mini-restaurants and kiosks
Some franchises
Buy from King’s project in Chang Mai

22. Both East and Western Cuisines (different from other chains)
Mixed fusion cooking
Also bakery
Value for money principal
Member card system
Continues to innovate and reinvent itself

23. Positioning Differentiation
Brand Integrity
Food houses that combine Extensive Western and Asian specialty
Wild West name and décor
East and West Large chain of outlets
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Black Canyon
Positioning-differentiation-brand triangle of San Miguel

24. Kinokuniya

25. Founded in 1927, a leading chain of bookstores in Japan
With 58 domestic and 22 overseas stores
Stores that are open and sparse
Also on-line sales
1964 expanded over Japan and opened
first overseas store in San Francisco (to serve Japanese community)
Later expanded to other US cities
1983 opened first Asian store in Singapore
Then Taiwan, Malaysia, Thailand, Indonesia and Australia
Customer service

26. Sees itself as ‘a service provider of knowledge
and the joy of discovery’
Creative local marketing in each country
Focus on a number of market segments
Because of large range it serves corporate customers different from
Others

27. Positioning Differentiation
Brand Integrity
Wide categories of books
Leading provider of information and other readings
and cultural readings Book buying experience
Networks of bookshops
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Kinokuniya
Positioning-differentiation-brand triangle of San Miguel

28. Air Asia

29. No previous experience of running an airline except for;
Knowing what budget air travelers want
Knowing what makes a business profitable
Dominated by traditional full-cost airlines,
air transport slump after 9/1, a sector in loss
situation and retrenchment
With changing demands of consumers due to higher incomes
became profitable in the first two years
Took customers away from trains and buses
Now a regional low cost airline
Had to overcome regulation

30. 2004, JV with Shin Corporation to form Thai Air Asia
Bought into Awair and formed Indonesian Air Asia
Strategy to keep costs low with high aircraft
utilisation and fast turnaround rate
Income: airfares, food sales, air cargo, corporate tie ups
Motivated workforce
Open office to reduce “power-distance”
Secondary airports – lower fees and costs
Internet sales

31. Positioning Differentiation
Brand Integrity
Low cost structure
No frills and fun low cost carrier
Fun internal culture
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Air Asia
Positioning-differentiation-brand triangle of San Miguel