International Business Marketing Management

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NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

: - 3.2.2015

Masters Program in Business Administration (MBA)
Specializations

:-

International

Management

Note :- Solve any four cases
All cases carry equal marks.

Business

Marketing

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

: - 3.2.2015

Case No 1 :- MARKETING SPOTLIGHT- NIKE

Nike hit the ground running in 1962. Originally known as Blue Ribbon
Sports, the company focused on providing high-quality running shoes
designed especially for athletes by athletes. Founder Philip Knight
believer that high-tech shoes for runners could be manufactured at
competitive

prices

if

imported

from

abroad.

The

company’s

commitment to designing innovative footwear for serious athletes
helped it build a cult following among American consumers. By 1980,
Nike had become the number-one athletic shoe company in the United
States.
From the start, Nike’s marketing campaigns featured winning
athletes

as

spokespeople.

The

company

signed

on

its

first

spokesperson, runner Steve Pre fontaine, in 1973. Pre fontaine’s
irreverent

attitude

matched

Nike’s

spirit.

Marketing

campaigns

featuring winning athletes made sense. Nike saw a `pyramid of
influence’’ – it saw that product and brand choices are influenced by
the preferences and behavior of a small percentage of top athletes.
Using professional athletes in its advertising campaigns was both
efficient and effective for Nike.
In 1985, Nike signed up then-rookie guard Michael Jordan as a
spokesperson. Jordan was still an up-and-comer, but he personified
superior performance. Nike’s bet paid off: The Air Jordan line of
basketball shoes flew off the shelves, with revenues of over $100
million

in

the

first

year

alone.

Jordan

also

helped

build

the

psychological image of the Nike brand. Phil Knight said. ``Sports are
at the heart of American culture, so a lot of emotion already exists
around it. Emotions are always hard to explain, but there’s something

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

: - 3.2.2015

inspirational about watching athletes push the limits of performance.
You can’t explain much in 60 seconds, but when you show Michael
Jordan, you don’t have to.’’
In 1988, Nike aired its first ads in the ``Just Do It’’ ad
campaign.

The

$20

million

month-long

blitz-subtly

encouraging

Americans to participate more actively in sports-featured 12 TV spots
in all. The campaign challenged a generation of athletic enthusiasts to
chase their goals; it was a natural manifestation of Nike’s attitude of
self-empowerment through sports. The campaign featured celebrities
and noncelebrities. One noncelebrity and featured Walt Stack, an 80year-old long-distance nunnery, running across the Golden Gate bridge
as part of his morning routine. The ``Just Do It’’ trailer appeared on
the screen as the shirtless Stack ran on a chilly morning. Talking to the
camera as it zoomed in, and while still running. Stack remarked,
``People ask me how I keep my teeth from chattering when it’s cold.’’
Pausing, Stack matter-of-factly replied, ‘’I leave them in my locker.’’
As Nike began expanding overseas to Europe, it found that its
American style ads were seen as too aggressive. The brand image was
perceived as too fashion-oriented. Nike realized that it had to
``authenticate’’ its brand in Europe the way it had in America. That
meant building credibility and relevance in European sports, especially
soccer. Nike became actively involved as a sponsor of soccer youth
leagues, local clubs, and national teams. Authenticity required that
consumers see the product being used by athletes, especially by
athletes who win. The big break came in 1994, when the Brazilian
team

(the

only

national

team

fro

which

Nike

had

any

real

sponsorships) won the World Cup. The victory led Nike to sign other

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

: - 3.2.2015

winning teams, and by 2003 overseas revenues surpassed U.S.
revenues for the first time. Nike also topped $10 billion in sales for the
first time in the year as well.
Today, Nike dominates the athletic footwear market. Nine of the
10

top-selling

basketball

shoes,

for

example,

are

Nikes.

Nike

introduces hundreds of shoes each year for 30 sports – averaging one
new shoe style every day of the year. Swooshes abound on everything
from wristwatches to golf clubs to swimming caps.

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

: - 3.2.2015

Discussion Questions
1.

What have been the key success factors for Nike?

ANS - The key success factors for Nike are mentioned below1.Nike focused on providing high-quality running shoes designed
especially for athletes. According to the founder Philip Knight high tech
shoes for runners could be manufactured at competitive prices if
imported

fromabroad.

2.The company’s commitment to designing innovative footwear for
seriousathletes.
3.Marketing campaigns featured winning athletes as spokespeople. i.e.
Runner Steve Prefontain was first to sign as spokesperson, in 1973.
Pretontaine’s

irreverent

attitude

matched

Nike’s

spirit.

4.Nike followed the “pyramid of influence”. They used professional
athletes in its advertising campaign which resulted both efficient and
effective

for

Nike.

5.In 1985, Nike signed up then-rookie guard Michael Jordan as a
spokesperson which made revenues of over $100 million in the first
year

alone.

6.In 1988, Nike’s first “Just Do It” ad campaign featuring celebrities
and non-celebrities challenged a generation of athletic enthusiasts to

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

chase

their

: - 3.2.2015

goals.

Through

this

Nike

presented

its

natural

manifestation of Nike attitude of self-empowerment through sports.

7.In 1994, when Brazilian team which was the only national team that
Nike sponsored wonthe World Cup that was a big break for Nike.

8.Nike’s mass production and innovation are two plus points that let
Nike to dominate the athletic footwear market. I.e. Nike introduces
hundreds of shoes each year for 30 sports-averaging one new shoe
style every day of the year.

2.

Where is Nike vulnerable? What should it watch out for?

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

ANS

: - 3.2.2015

When Nike started to expand its market overseas to Europe it faced
some problems which were vulnerable for them. It found that its
American style ads were seen as too aggressive in Europe.
To overcome this problem the took some steps1. It realized and started authentication its brand in Europe the way it
had in America. I.e.it built credibility and relevance in European sports,
especially soccer.
2. Authenticity required that consumers see the product being used by
athletes, especially by athletes who win. Therefore, Nike became
actively involved as a sponsor of soccer youth leagues, local clubs, and
national teams. Their big break was in 1994, when Brazilian team (the
only national team for which Nike had any real sponsorship) won the
World Cup. The Victory led Nike to sign other winning teams, and by
2003 overseas revenues surpassed U.S. revenues for the first time.
Nike also topped $10 billion in sales for the first time in the year as
well. So the point is that, in their business expansion Nike did face
some vulnerable situation, however, it managed to overcome the
problem and continued to dominate the athletic footwear market
successfully. Nike introduces 10 of shoes each year for 30 sportsaveraging on new shoe style very day of the year. Nike let consumers
customize athletic shoes for $10 more and a shopper with 2 different
size and even with a nonmatching pair can have their preferred shoes.

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

3.

What

: - 3.2.2015

recommendations

would

you

make

to

senior

marketing executives going forward? What should they be sure
to do with its marketing?
Arising from our work and the "Findings" and "Observations"
previously stated, i submit here for NIKE's consideration a number of
recommendations.

In

some

instances,

the

suggestions

are

"directional" and indicate general areas or topics for additional work or
focus. In others - where we are comfortable doing so - we offer
specific ways in which these recommendations might be effectively
implemented.
1. Recommendation: NIKE should continue its efforts to support and
implement the provisions of the Apparel Industry Partnership which
resulted in the first major agreement - across industry lines - to set
voluntary, global standards and goals for international labor practices.
2. Recommendation: NIKE should take more aggressive steps to
explain and enforce the Code Of Conduct.
3. Recommendation: NIKE should take pro-active steps to promote the
development of "worker representatives" in the factories who can
effectively represent the workers' individual and cumulative interests..
4. Recommendation: NIKE should insist that the factories which
manufacture its products create and enforce a better grievance system
within the factory that allows a worker to report a complaint or abuse
without the fear of retribution or reprisal.
5. Recommendation: NIKE should expand its dialogue and relationship
with the human rights community and the labor groups within the

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

: - 3.2.2015

countries where they produce goods and with their international
counterparts.
6. Recommendation: NIKE should consider some type of "external
monitoring" on an ongoing basis as a way to demonstrate its
commitment to the Code Of Conduct and to insure its effective
application
Now Nike is the company focused on providing quality running
shoes especially for athletes.
But they need to take some step in their marketing policy.
Nike should take a look on –
1. Providing some casual and formal shoes also.
2. Emphasizing more TV ads
3. Focusing more on societal marketing
4. Considering more about the people outside USA
5. Using champions on TV ads.
6. Brand image in different countries Although Nike has started to
concern about the people Outside USA they are not using only
American type ads now a days.
Nike realized that it had to authenticate its brand in Europe the way it
had in America
Case NO. 3

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

: - 3.2.2015

MARKETING SPOTLIGHT- HSBC

HSBC is known as the ``world’s local bank.’’ Originally called the Hong
Kong

and

Shanghai

Banking

Corporation

Limited,

HSBC

was

established in 1865 to finance the growing trade between China and
the United Kingdom. HSBC is now the second-largest bank in the
world, serving 100 million customers through 9,500 branches in 79
countries. The company is organized by business line (personal
financial services; consumer finance; commercial banking; corporate
investment banking and markets; private banking), as well as by
geographic

segment

(Asia-Pacific,

U.K./Eurozone,

North

America/NAFTA, South America, Middle East).
Despite operating in 79 different countries, the bank works hard
to maintain a local feel and local knowledge in each area. HSBC’s
fundamental operating strategy is to remain close to its customers. As
HSBC chairman Sir John Bond said in November 2003, ‘’Our position
as the world’s local bank enables us to approach each country
uniquely, blending local knowledge with a world-wise operating
platform.’’
For example, consider HSBC’s local marketing efforts in New
York City. To prove to jaded New Yorkers that the London-based
financial behemoth was ‘’the world’s local bank, ``HSBC held a ‘’New
York City’s Most Knowledgeable Cabbie’’ contest. The winning cabbie
gets paid to drive full-time for HSBC for the year and HSBC customers
win, too. Any customer showing an HSBC bankcard, checkbook, or
bank statement can get a free ride in the HSBC-branded Bankcab. The
campaign demonstrates HSBC’s local knowledge. ‘’In order to make

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

: - 3.2.2015

New Yorkers believe you’re local, you have to act local,’’ said Renegade
Marketing Group’s CEO Drew Neisser.
Across the world in Hong Kong, HSBC undertook a different
campaign. In the region hit hard by the Severe Acute Respiratory
Syndrome, (SARS) outbreak, HSBC launched a program to revitalize
the local economy. HSBC’’ plowed back interest payments’’ to
customers who worked in industries most affected SARS (cinemas,
hotels, restaurants, and travel agencies). The program eased its
customer’s financial burden. The bank also promoted Hong Kong’s
commercial sector by offering discounts and rebates for customers
who use an HSBC credit card when shopping and dining out, to help
businesses affected by the downturn. More than 1, 5000 local
merchants participated in the promotion.
In addition to local marketing, HSBC does niche marketing. For
example, it found a little-known product area that was growing at 125
percent a year: pet insurance. In December 2003 it announced that it
will distribute nationwide pet insurance through its HSBC Insurance
agency, making the insurance available to its depositors.
HSBC also segments demographically. In the United States, the
bank will target the immigrant population, particularly Hispanics, now
that it has acquired Bital in Mexico, where many migrants to the
United States deposit money.
Overall, the bank has been consciously pulling together its
worldwide businesses under a single global brand with the ‘’world’s
local bank’’ slogan. The aim is to link its international size with close
relationships in each of the countries in which it operates. The
company spends $600 million annually on global marketing and will

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

: - 3.2.2015

likely consolidate and use fewer ad agencies. HSBC will decide who
gets the account by giving each agency a ‘’brand-strategy exercise.’’
Agencies will by vying for the account by improving on HSBC’s number
37 global brand ranking.

Discussion Questions

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

1.

: - 3.2.2015

What have been the key success factors for HSBC?

Ans. HSBC was established in 1865 to finance the growing trade
between China and UK. Being an early starter to penetrate into this
geography, HSBC was able to fully utilize the untapped business
potential available and thereby capture a huge chunk of the market.
Despite growing in almost 80 countries al over the world, HSBC has
been successful in positioning itself in ‘World’s local bank’. As the bank
constantly works hard to maintain a local feel and local knowledge,
customers feel comfortable to bank with an international brand like
HSBC. Consequently it has ensured high customer loyalty and HSBC
has been able to retain its large customer pool.
Another key factor of success is the ability of HSBC to reach a large
section of customers by different innovative promotional campaigns.
Moreover discounts, rebates, relaxing of interest rates on loan during
crisis etc. has helped to gain popularity as well as confidence among
its customers.
HSBC also keeps a strong focus on the services that it offers to the
customers. It offers personal banking services, consumer finance,
commercial banking, corporate investment banking and market,
private banking etc among 100 million customers spread all over the
world in a very professional and efficient way .This has helped to boost
up the confidence level of the customers to a great extent. Also its
professional attitude towards understanding the different hitherto

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

: - 3.2.2015

untapped segments like niche marketing or targeting a specific
demographic segment has led to its success story.

2.

Where is HSBC vulnerable? What should it watch out for?
Ans.

The vulnerability of HSBC lies in its business model. It has expanded
into a true international bank starting from a small unit in UK with its
vision as‚ Worlds local bank by providing the customers local touch and
comfort. This model can be easily replicated by its competitors who are
also constantly looking for business opportunities. Also local banks can
provide more comfort and ease to the customers as they understand
the psychology of people. Another concern can be the satisfaction level
among the employees of HSBC.As a huge number of people from
different countries are working in HSBC in different geographies, there
is a chance of a dip in job satisfaction level.
Points to be watch out for
1.It should closely follow the strategies adopted by its competitors and
redesign its strategy accordingly with a proper emphasis on its
strength i.e. Worlds local bank. 2. Also it should be careful that the
customers do not feel any un comfort or uneasiness while dealing with
the bank personnel.
3. It should also watch out for potential customer and new business
segments. Internally,

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

: - 3.2.2015

4. it should ensure that the employees are motivated enough in their
job to deliver maximum productivity.
5. It must continue to understand the local market and to continue to
make the
“connection” with local communities.
6. Rapid changes to their target markets (demographic changes,
psychological changes, etc.) in the local and national levels.

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

3.

What

: - 3.2.2015

recommendations

would

you

make

to

senior

marketing executives going forward? What should they be sure
to do with its marketing?
Ans:- Recomendations
a. Do not get complacent or overly comfortable with their successes.
Avoid becoming
“big” for “bigness sake.”
b. going forward executives have to learn native cultural activities
such as local festivals, likes and dislikes of local citizens etc.
for Marketing following points needs to be consider
a.
b.
c.

Continue to capitalise on niche markets,
local connections to the communities, and
continue to investigate the marketing forces of their markets on

an individual basis.
d.
They should try not to create ―generalizations‖ for the sake of
internal efficiencies.
e.
According to the Cultural dimensions of Hofstede’s, different
regions of countries have distanced cultural implications .Linking those
in to recruitment processes of each country, organization will be able
to gain cultural opportunities in attracting employees.
f.
This would be an advantage to attract most talented people from
pool of limited qualified bankers in different countries.
g.
HSBC has placed small attention on individual weaknesses in
planning training and development program. Instead they pull
employees towards training and development programs insisting on
seniority and service period. If organization pays attention on
individual weaknesses, it will be much helpful in correcting their

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

: - 3.2.2015

performance drawbacks and enhancing employee performances up to
the expected limit.

Case NO .4
MARKETING SPOTLIGHT- KRISPY KREME

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

: - 3.2.2015

Krispy Kreme makes 2.7 billion donuts a year. But it took more than
fresh, hot donuts to earn Krispy Kreme the title of ‘’hottest brand in
America’’ in 2003. Krispy Kreme’s stock price quadrupled in the three
years following its IPO in 2000, and the entire chain now generates a
billion dollars in annual revenues across more than 300 outlets.
How did Krispy Kreme turn donuts into dollars? Careful brand
positioning and local marketing tell the story. ‘’We have a humble
brand and product,’’ says Krispy Kreme CEO Scott Livengood. ‘’It’s not
flashy.’’ The company is not new – it was founded in 1937- and part of
its brand image is an old-fashioned feel. The plain red, green, and
white colors and retro graphics evoke the squeaky-clean Happy Days
of the 1950s, as do the Formica-filled, kid-friendly shops. ‘’We want
every customer experience to be associated with good times and warm
memories,’’ Livengood says.
That company’s brand image also rests on its fresh, hot donuts –
a freshness that’s measured in hours. In a world of processed,
prepackaged food, nothing beats a fresh, hot donut. The company’s
marketing is grassroots local. Krispy Kreme has no traditional media
advertising budget. Rather, local ‘’community marketing managers’’
enlist the aid of local groups and charities. For example, the company
helps charities raise money by selling them donuts at half price which
they can re-sell at full price. Local bake sales become a promotional
tool for Krispy Kreme.
Another tactic is giving away free donuts to TV, newspapers, and
radio stations before entering a market. Krsipy Kreme scored a
publicity coup in 1996 when it opened its first store in New York City.
The company delivered boxes of donuts to the Today Show, garnering

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

: - 3.2.2015

millions of dollars worth of national exposure for the price of a few
donuts. Even the day of the IPO relied on the buzz from free Krispy
Kreme donuts on the floor of the stock exchange.
Each local outlet is an emissary for the brand, and Krispy
Kreme’s signature Doughnut Theater defines the brand image. A
multisensory experience, Doughnut Theater occurs several times a day
at each shop. When the store flicks on its ‘’Hot Doughnuts Now’’ sign,
the performance is about to begin. A large plate glass wall lets
customers watch the whole process.
The Doughnut Theater experience works on three levels. On a
direct level, the performance entertains customers and draws them
into the donut-making experience. On an indirect level, it shows that
the products are freshly made in a clean environment. On a subliminal
level, as CEO Livengood describes it, ‘’The movement of the products
on the conveyor through our proofbox has this relaxing, almost
mesmerizing effect. The only other thing like it is standing on the
oceanfront and watching the tide come in. it has that same consistent,
relaxing motion that is really positive to people.’’ People flock to the
store to see wave after wave of donuts emerge hot and deliciously
fresh. They happily stand in long lines around newly opened outlets to
get the aroma of the donuts being made, the sight of the vanilla glaze
waterfall, and the warmth of the hot donut that ‘’just melts in your
mouth and tastes so good,’’ Livengood says.
Doughnut Theater is a bit of show business that draws
customers into the baking experience and makes them feel like they
are a part of the process. Another aspect of show business is product
placements on hit shows like. The Sopranos and Will & Grace and

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

: - 3.2.2015

movies like Bruce Almighty. Finally, international expansion is fueled by
celebrities like Dick Clark, Hank Aaron, and Jimmy Buffet, who
clamored for Krispy Kreme franchises of their own. Krispy Kreme
doesn’t just grant franchise rights to anyone.
Krispy Kreme makes 65 percent of its revenue selling donuts
directly to the public through its 106 company-owned stores. Another
31 percent comes from selling flour mix, donut-making machines, and
donut supplies to its 186 franchised stores. The final 4 percent of
revenue comes from franchisee licenses and fees.
Krispy Kreme is now expanding and selling donuts through
convenience stores. Will this hurt the brand? Stan Parker, Krispy
Kreme’s senior vice president of marketing, says it won’t because the
company continues

to

emphasize

freshness.

It

replenishes

the

packaged donuts daily from the local Krispy kreme store and removes
any unsold packages. The donuts’ presence in convenience stores will
help remind people of the taste of a fresh, hot Krispy Kreme donut,
and that brings them back into a Krispy Kreme shop.
The success of Krispy Kreme has been a wake-up call for
competitor Dunkin’ Donuts, which had become complacent. The onetwo punch of Krispy Kreme in donuts and Starbucks in coffee led
Dunkin’ Donuts to revamp its menu and its stores, neither of which
had changed in years. Rather than innovate, Dunkin’ Donuts looked at
what customers were already eating elsewhere. It brought in basic
products like bagels, low-fat muffins, and breakfast sandwiches.
Dunkin Donuts still dwarfs Krispy Kreme in size, with 2003 revenues of
$3 billion, but it must work to find new ways of creating excitement

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

: - 3.2.2015

that builds customer pride, because one thing is sure: Krispy Kreme
refuses to be dull.

Discussion Questions

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

1.

: - 3.2.2015

What have been the key success factors for Krispy Kreme?
Ans : -

Krispy Kreme is a most popular food company in

America. There are some key factors of Krispy Kreme to be most
strong brand in America.
Those

are

given

below:

• Old fashioned feel –They have been adopting one tradition for
long time serving food to the customers

which has worked as brand

symbol.


Theater experience works – They perform different types of

theater which entertains customs and draws them into the donutmaking

experience.

Showing the manufacturing process – They invite to the people
come to see how donuts are freshly made in a clean environment. So
that,

people

are

more

attractive

to

buy

donuts.

• Concern with country people – Krispy Kreme dose not work
with franchise. They busy with own country people to serve donuts so
that maintaining the best food quality. People buy donut more for the
best

quality.
• Following different way to convince media – Sending boxes of

donuts into television media as gift which is one of strategy to bring
out

of

publicity.

• Selling in half price – Krispy Kreme is selling donut in half price
in charity shows. But

charity shows organizer sell donuts at same

price .That is why Donuts became popular very frequently. Because
people are getting donuts at same price as outside of charity show.

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

2.

: - 3.2.2015

Where is Krispy Kreme vulnerable? What should it
watch out for?

Ans : a. Krispy Kreme vulnerable into their international business.
b. Krispy Kreme is one of the most popular brands in USA and it has
very good demand world-wide but it does not grant franchise rights to
any one of donuts.
Points to be watch out for
a. If they franchise donuts it could count bigger profits yearly.
b. Krispy Kreme has tremendous reputation for it’s hot fresh donuts.
c. By ensuring proper quality it should watch out for it’s franchise
business.
d. Which would make it more the possible to earn huge profit.

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

3.

What

: - 3.2.2015

recommendations

would

you

make

to

senior

marketing executives going forward? What should they be sure
to do with its marketing?
Ans : The senior marketing executives should be concern to those sector
which are given below :
• They should look forward to franchise business.
• The proposal from the celebrities can be re-valued.
• Rather then being concern to supply donuts to convenient store they
could open new store or convenient store own by Krispy Kreme.
• The senior marketing executives can also emphasis the home
delivery service.
And While Marketing they Needs to make sure
To emphasis the marketing Krispy Kreme should go for advertisement .
they should go through food survey into the country so that they can
recognize the demand of the people for donuts . Krispy Kreme should
be concern to the social responsibilities to grab the hole market with
its responding attitude

Case NO. 6

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

: - 3.2.2015

MARKETING SPOTLIGHT- WAL-MART

Wal-Mart Stores, Inc., is the largest retailer in the world, with sales of
$259 billion in 2003, 1.5 million employees, and 4,300 facilities. Each
week, over 100 million customers visit a Wal-Mart store. Sam Walton
founded the company in 1962 with a simple goal: Offer low prices to
everyone. His notions of hard work and thrift continue to permeate
Wal-Mart today, although he died in 1992. Employees see their jobs as
a mission ‘’to lower the world’s cost of living.’’ Wall –Mart’s philosophy
is to enable people of average means to buy more of the same
products that were previously available only to rich folks. The company
works hard at being efficient and using its buying clout to extract lower
prices from suppliers, and then passes those savings on to customers.
Wal-Mart succeeds in the competitive American retail market for
several reasons. First, its low prices, vast selection, and superior
service keep the customers coming in the door. But one of Wal-Mart’s
biggest strengths is not even inside the store. Its unrivaled logistics
ensure that it can keep prices low while keeping the right goods on the
shelves. As the biggest retailer in the United States. Wal-Mart’s
logistics demands are considerable. The company must coordinate with
more than 85,000 suppliers, manage billions in inventory in its
warehouses, and bring that inventory to its retail shelves.
To streamline these tasks, Wal-Mart set up a ‘’hub-and-spoke’’
network of 103 massive distribution centers (DC). Strategically spaced
across the country, no store location is more than a day’s drive away
from a DC. Wal-Mart is known as ‘’the king of store logistics’’ for its
ability to effectively manage such a vast network.

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

: - 3.2.2015

Sam Walton was something of a visionary when it came to

logistics. He had the foresight to realize, as early as the 1960s, that
his goals for company growth required advanced information systems
to manage high volumes of merchandise. The key to low-cost retail is
knowing what goods would sell and in what quantities – ensuring that
store shelves never have too much or too little of any item. In 1966,
Walton hired the top graduate of an IBM school and assigned him the
task of computerizing Wal-Mart’s operations. As a result of this
forward-looking move, Wal-Mart grew to be the icon of just-in-time
inventory control and sophisticated logistics. By 1998, Wal-Mart’s
computer database was second only to the Pentagon’s in terms of
capacity.
Wal-Mart’s logistics success is astounding considering its size:
Over 100 million items per day must get to the right store at the right
time. To accomplish this goal, Wal-Mart developed several IT systems
that work together. It all begins at the cash register or point-of-sale
(POS) terminal. Every time an item is scanned, the information is
relayed to headquarters via satellite data links. Using up-to-the-minute
sales

information,

Wal-Mart’s

Inventory

Management

System

calculates the rate of sales, factors in seasonal and promotional
elements,

and

automatically

places

replenishment

orders

to

distribution centers and vendor partners.
Wal-Mart uses its information systems for more than just
logistics. Suppliers can use its voluminous POS database to analyze
customers’ regional buying habits. For example, Proctor & Gamble
learned that liquid Tide sells better in the North and Northeast while
Tide powder sells better in the South and Southwest. P & G uses

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

: - 3.2.2015

information such as this to tailor its product availability to specific local
regions. This means that it delivers different Tide products to different
Wal-Mart locations based on local customer preferences. Wal-Mart’s
may look the same on the outside, but the company uses its
information systems and logistics to customize the offerings inside
each store to suit regional demand.
Wal-Mart continues to grow. Despite already having 3,200 stores
in the united States, Wal-Mart plans to add another 220-230 Super
centers, 50-55 discount stores, 35-40 Sam’s Clubs, and 25-30
Neighborhood Markets in the United States alone, and an additional
130 units internationally. If Wal-Mart maintains the average growth
rate of the past 10 years, it could become the world’s first trilliondollar company.

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

: - 3.2.2015

Discussion Questions
1.

What have been the key success factors for Wal-Mart?

Ans :a. The strategic concept — offer low prices to everyone; low prices,
vast selection, andsuperior services.
b. Unrivaled logistics.
c. “Hub-and-spoke” network of distribution centers.
d. Advanced information systems: icon of just-in-time inventory
control.
e. IT systems that work together.
f. Suppliers that tie-in to Wal-Mart’s Inventory Management System to
analyze customers’ regional buying habits.

2.

Where is Wal-Mart vulnerable? What should it watch
out for?

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

: - 3.2.2015

Ans : - Wal Mart is vulnerable because of below points
a. Competitors duplicating or improving upon Wal-Mart’s strategic
concept— lowprices, vast selection and superior services.
b. Changes in consumer buying patterns — technology (the Internet).
c. Increases in private label products to more than 50 percent of
selection.
d. Community backlashes to the concept of superstores, “big box
retailers.”
e. Internal cannibalization caused by too many stores located too close
to each other.

3.

What

recommendations

marketing executives

going

would

you

forward?

company be sure to do with its marketing?
Ans : -

make
What

to

senior

should

the

NAME

: - JAWED WABDULHAMID WARUNKAR

Reference No

: - M-001-1908

Course

: - DBM

Specializations

: - INTERNATIONAL MARKETING MANAGMENT

Date of Exam

: - 3.2.2015

Recommendation a) Do not rest on past successes — continue your
strategic direction.
Recommendation b) Monitor changes in your target market’s
definition of “service” and adapt to those changes.
For Marketing Company needs to ensure: a. Resist opportunities to expand your market (width and breath) that
you begin to “lose” your “identity” with the consumer as to what your
company means to them.
b. Emphasize your strengths in variety, selection, service, price, and
convenience

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