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2007 GLOBAL MARKET OFFERINGS

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A report on Global Mkt Offerings

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Page 1: Global Market Offerings

2007

GLOBAL MARKET OFFERINGS

By,Maaz Khalid and Ahsan FaheemSubject Teacher,Mr. Nadir Ali KolachiBahria University Karachi

Page 2: Global Market Offerings

Acknowledgement

In the name of “Allah”, the most beneficent and merciful who gave us strength and knowledge to complete this report. This report is a part of our course “Marketing Management”. This has proved to be a great experience. This report is a combine effort of Maaz Khalid and Syed Muhammad Ahsan Faheem.

We would like to express our gratitude to our marketing teacher Mr. Nadir Ali Kolachi; who gave us this opportunity to fulfill this report. We would also like to thank our colleagues who participated in a focus group session. They gave us many helpful comments which helped us a lot in preparing our report.

Page 3: Global Market Offerings

Executive Summary

Why Global Marketing? Worldwide Competition E-Commerce Evolution to Global Marketing

- Domestic Marketing- Export Marketing- International Marketing- Multinational Marketing- Global Marketing

Major Decisions in International Marketing- Deciding whether to go abroad- Blunders in International Marketing - Deciding which market to enter- How many markets to enter- Evaluating potential markets- Deciding how to enter the market

Direct investment- Joint ventures- Licensing

Direct and Indirect export- Advantages of indirect export - Ways a company can carry on direct exporting

Global Web Strategy Global adaptation Product adaptation Deciding on the marketing program Global market offering Global firms in Pakistan:

- Telenor- ABN AMRO- KFC- P&G

+ Pantene+ Head & shoulders+ Vicks+ Safeguard+ PUR

- Gillette

Page 4: Global Market Offerings

Why Global Marketing?

Here are three reasons for the shift from domestic to global marketing. For a company to keep growing, it must increase sales. Industrialized nations have, in many product and service categories, saturated their domestic markets and have turned to other countries for new marketing opportunities. Companies in some developing economies have found profitability by exporting products that are too expensive for locals but are considered inexpensive in wealthier countries.

Worldwide Competition

One of the product categories in which global competition has been easy to track is in U.S. automotive sales. Three decades ago, there were only the big three: General Motors, Ford, and Chrysler. Now, Toyota, Honda, and Volkswagen are among the most popular manufacturers. Companies are on a global playing field whether they had planned to be global marketers or not.

E-Commerce

With the proliferation of the Internet and e-commerce (electronic commerce), if a business is online, it is a global business. With more people becoming Internet users daily, this market is constantly growing. Customers can come from anywhere. According to the book, “Global Marketing Management,” business-to-business (B2B) e-commerce is larger, growing faster, and has fewer geographical distribution obstacles than even business-to-consumer (B2C) e-commerce. (Kotabe & Helsen, p.4) With e-commerce, a brick and mortar storefront is unnecessary.

Evolution to Global Marketing

Global marketing is not a revolutionary shift, it is an evolutionary process. While the following does not apply to all companies, it does apply to most companies that begin as domestic-only companies.

Domestic Marketing

A company marketing only within its national boundaries only has to consider domestic competition. Even if that competition includes companies from foreign markets, it still only has to focus on the competition that exists in its home market. Products and services are developed for customers in the home market without thought of how the product or service could be used in other markets. All marketing decisions are made at headquarters.The biggest obstacle these marketers face is being blindsided by emerging global marketers. Because domestic marketers do not generally focus on the changes in the global marketplace, they may not be aware of a potential competitor who is a market leader on three continents until they simultaneously open 20 stores in the Northeastern U.S. These marketers can be considered ethnocentric as they are most concerned with how they are perceived in their home country.

Page 5: Global Market Offerings

Export Marketing

Generally, companies began exporting, reluctantly, to the occasional foreign customer who sought them out. At the beginning of this stage, filling these orders was considered a burden, not an opportunity. If there was enough interest, some companies became passive or secondary exporters by hiring an export management company to deal with all the customs paperwork and language barriers. Others became direct exporters, creating exporting departments at headquarters. Product development at this stage is still focused on the needs of domestic customers. Thus, these marketers are also considered ethnocentric. International Marketing

If the exporting departments are becoming successful but the costs of doing business from headquarters plus time differences, language barriers, and cultural ignorance are hindering the company’s competitiveness in the foreign market, then offices could be built in the foreign countries. Sometimes companies buy firms in the foreign countries to take advantage of relationships, storefronts, factories, and personnel already in place. These offices still report to headquarters in the home market but most of the marketing mix decisions are made in the individual countries since that staff is the most knowledgeable about the target markets. Local product development is based on the needs of local customers. These marketers are considered polycentric because they acknowledge that each market/country has different needs. (Kotabe & Helsen, p.16)

Multinational Marketing

At the multi-national stage, the company is marketing its products and services in many countries around the world and wants to benefit from economies of scale. Consolidation of research, development, production, and marketing on a regional level is the next step. An example of a region is Western Europe with the US. But, at the multi-national stage, consolidation, and thus product planning, does not take place across regions; a regiocentric approach.

Global Marketing

When a company becomes a global marketer, it views the world as one market and creates products that will only require tweaks to fit into any regional marketplace. Marketing decisions are made by consulting with marketers in all the countries that will be affected. The goal is to sell the same thing the same way everywhere. (Levitt, 'Harvard Business Review) These marketers are considered geocentric.With faster communication, transportation and financial flows, the world are rapidly shrinking. Product developed in one country are finding enthusiastic acceptance in other countries as well. Since 1969, the number of Multinational Corporation in the world’s 14 richest countries has more than tripled, from 7000 to 24000. Many companies have conducted international marketing for decades. Nestle, Shell and Toshiba are familiar to consumer around the world.Competing on a global basis

Companies that are selling in the global industries have no choice but to internationalize their operations. To do this they must make series of decision

Major Decisions in International Marketing

Page 6: Global Market Offerings

Deciding whether to go abroad

Most companies would prefer to remain domestic if their domestic market were large enough. Yet there are several factors are drawing more and more companies into the international arena:

1. The company needs a larger customer base to achieve economies of scale.2. They want to reduce its dependence on any one market.3. The company’s customers are going abroad and require international servicing.4. The company discovers that some foreign markets present higher profit opportunities than

the domestic market.

Before making a decision to go abroad, the company must weigh several risks:

1. The company might not understand the foreign country’s business culture or know how to deal effectively with foreign customers

2. The company might underestimate foreign regulations and incur unexpected costs.3. The company might not understand foreign customer preferences and fail to offer a

competitively attractive product (Table lists some blunders in this arena).

Deciding whether to go abroad

Deciding which market to enter

Deciding how to enter the market

Deciding on the marketing program

Deciding on the marketing

organization

Page 7: Global Market Offerings

Blunders in International Marketing

Coca Cola had to withdraw its two liter bottle in Spain after discovering that few Spaniards owned refrigerators with large enough compartments to accommodate it.

General Foods’ Tang initially failed in France because it was positioned as a substitute of orange juice at breakfast. The French drink little orange juice and almost none at breakfast

Mountain Dew initially failed in Pakistan because its color was like a beer but afterwards its color was changed to light green and it was positioned as a drink of younger generation

Procter & Gamble’s Crest toothpaste initially failed in Mexico when it used the U.S. campaign. Mexicans did not care as much for the decay-prevention benefits, nor did scientifically oriented advertising appeal to them

Deciding which market to enter

In deciding to go abroad the company needs to define its marketing objectives and policies. Most companies start small when they venture abroad. Some plan to stay small; others have bigger plans.

How many markets to enter

The company must decide whether to market in a few countries or many countries and determine how fast to expand. It makes sense to operate in fewer countries with a deeper commitment and penetration in each. Ayal and Zif have argued that a company should enter fewer countries when:

Market entry and market control cost are high Product and communication adaptation costs are high. Dominant foreign firms can establish high barriers to entry

The company must also decide on the types of countries to consider. The Attractiveness is influenced by the product, geography, income and population, and other factors. The seller might have a predilection for certain countries or regions.The unmet need of the developing world represents huge potential markets for food, clothing, shelter, consumer electronics, appliances, and other goods. Many market leaders are rushing into Eastern Europe, Asia and Cuba, where there are many unmet needs to satisfy

Evaluating potential markets

Many companies prefer to sell to neighboring countries because they understand these countries better, and they can control their costs better. It is not surprising that the largest Chinese market is Pakistan. As growing numbers of Chinese companies expand abroad, many are deciding the best place to start is next door, in Pakistan. At other times, psychic proximity determines choices. Many Chinese and Japanese firms prefer to sell in Pakistan and India- rather than in larger markets such as Germany and France- because they feel more comfortable with laws and cultureA company prefers to enter countries that rank on high market attractiveness that are low in market risk in which it possesses a competitive advantage

Deciding how to enter the market

Page 8: Global Market Offerings

Once a company decides to target a particular country, it has to determine the best of entry. Its broad choices are indirect exporting, direct exporting, licensing, joint venture, and direct investment. Each of these succeeding strategy involves strategy involves more commitment, risk, control, and profit potential.

Direct investment

The ultimate form of foreign involvement is direct ownership of foreign based assembly or manufacturing facilities. The foreign company can buy part or full interest in a local company or build its own facilities. If the market appears large enough, foreign production offers distinct advantages.First, the firm secures cost economies in the form of cheaper labor or raw material and freight saving. Second, the firm strengthens its image in the host country because it creates jobs. Third, the firm develops a deeper relationship with government, costumers, local suppliers, and distributors, enabling it to adapt its products better to the local environment. Fourth, the firm retains full control over its investment and therefore can develop its manufacturing and marketing policies that serves its long term international objectives. The main disadvantage of direct investment is that the firm exposes a large investment to risks such as blocked or devalued currencies, worsening markets, or expropriation.

Direct investment

Joint Venture

Licensing

Direct investment

Indirect exporting

Page 9: Global Market Offerings

Joint ventures

Foreign investors may join hands with local investors to create a joint venture company which hey share owner ship and control.Coca-Cola and Nestle joined forces to develop the international market for “ready to drink” tea and coffee, which currently sell in significant amounts in Japan.A joint venture may be necessary for economic or political reasons. The foreign firm might lack the financial, physical, or managerial resources to undertake the venture alone; or the foreign government might require joint ownership as a condition for entry. Even corporate giants need joint ventures to crack the toughest markets.Joint venture has certain drawbacks. The partner might disagree over investment, marketing, or other policies. One partner might want to reinvest earnings for growth, and other partner might want to declare more dividends. It can also prevent a multinational company from carrying out specific manufacturing and marketing policies on a worldwide basis.

Licensing

Licensing is a simple ay to become involved in international marketing. The licensor licenses a foreign company to use a manufacturing process, trademark, patent, or other items of value for a fee or royalty. The licensor gains entry at little risk; the licensee gains production expertise or a well known product or brand name. Licensing has potential disadvantages. The licensor has less control over the licensee than it does over its own production and sales facilities. Furthermore, if the licensee is very successful, the firm has given up profits; and if and when contract ended the company may find that it has created a competitor. The best strategy for the licensor is to lead the innovation so that the licensee will continue to depend on licensor.Finally a company can enter a foreign market through franchising, which is a more complete form of licensing. The franchiser offers a complete brand concept and operating system. In return, the franchisee invests in and pays certain fees to the franchiser.

K F C CORPORATION

K F C is among the world’s largest fast-food chicken chain, owning or franchising more than 12000 outlets in about 90 countries 60 % of them outside U.S.A. KFC had a number of obstacles to overcome when it entered the Japanese market. Japanese do not trust this brand. To build trust in the KFC brand, advertising showed scenes depicting Colonel Sander’s beginnings in Kentucky that conveyed southern hospitality, old American tradition, and authentic home cooking. The campaign was hugely successful and in less than 8 years K F C expanded its presence from 400 locations to 1000 locations.

Page 10: Global Market Offerings

Direct and Indirect export

The normal way to involved in an international market is through exporting. Occasional exporting is a passive level of involvement in which the company exports from time to time either on its own initiative or in response to unsolicited orders from abroad. Active exporting takes place when the company makes the commitment to expand into a particular market. In either case, the company produces its goods in the home country and might or might not adapt them to international market.Companies typically start typically starts with indirect exporting- that is, they work through independent intermediaries. Domestic-based export merchants buy the manufacturer’s products and then sell them to abroad. Domestic-based export agents seek and negotiate foreign purchases and are paid the commission. Cooperative organizations carry on exporting activities on behalf of several producers and are partly under their administrative control. Export management companies agree to manage a company’s export activities for a fee. Indirect export has two advantages:

1. It involves less investment. The firm does not have to develop an export department.2. It involves less risk. Because international-marketing intermediaries bring know-how and

services to the relationship, the seller will normally make fewer mistakes.

A company can carry on direct exporting in several ways:

Domestic-based export department or division Might evolve into a self-contained export department operating as a profit center.

Overseas sales branch or subsidiary The sales branch handles sales and distribution and might handle warehousing and promotion as well

Traveling export sales representatives Home based sales representatives are sent abroad to find business

Foreign-based distributors or agents these distributors and agents might be given exclusive rights to represent the company in that country, or only limited rights.

Using a Global Web Strategy

Major marketers doing global e-commerce range from automakers to direct-mail companies to running-shoe giants. Marketers like these are using the web to reach new customers outside their home countries, and to build global brand awareness.These companies adapt their web sites to provide country specific content and services to their best potential markets, ideally in the local language.The Internet has become an effective means of everything from gaining free exporting information and guidelines to conducting market research and offering customers several time zones away a secure process for ordering and paying for product. The global marketer may run up against governmental or cultural restriction.

Page 11: Global Market Offerings

Global adaptation

Global adaptation holds that consumer needs vary and that market programs will be more effective when they are tailored to each target group. This also applies to foreign markets.Many companies have tried to launch their version of a world product. Yet, most products require adaptation. Toyota’s Corolla will exhibit some differences in styling. Coca-Cola is sweeter or less carbonated in certain countries. Rather than assuming that its domestic product can be introduced “as is” in another country.

The company should review the following elements and determine which would add more revenue than cost:

Product features Brand name Labeling Packaging Colors Advertising execution Materials Prices Sales promotion Advertising themes Advertising media

Consumer’s behavior can dramatically differ across markets.

Product adaptation

Product adaptation involves altering the product to meet the local conditions or preferences. There are several levels of adaptation.

A company can produce a regional version of its product, such as Nokia developers built in rudimentary voice recognition for Asia, where keyboards are a problem, and raised the ring volume so the phone could be heard on the crowded streets of Asia.

A company can produce a country version of its product, such as Kraft blends different coffees for the British (who drink their coffee with milk), the French (who drink their coffee black).

The company can produce a city version of its product; IKEA offers verity of plastic furniture in Dubai and wooden furniture in Al-Ain because of higher humidity in Dubai.

A company can produce different retailer version of its products, such as one coffee for the Migros chain and another for the cooperative chain stores, both in Switzerland.

Page 12: Global Market Offerings

Deciding on the marketing program

International companies must decide how much to adapt their marketing strategy to local conditions. At one extreme are companies that use a globally standardized marketing mix worldwide. Standardization of the product promises the lower costs.At other extreme is an adapted marketing mix, where the producer adjusts the marketing program to each target market.Between two extremes many possibilities exists. Most brands are adapted to some extent to reflect significant differences in consumer behavior, brand development, competitive forces, and the legal or political environment. Cultural differences can often be pronounced across countries. Hofstede identifies four cultural dimensions that can differentiate countriesIndividualism vs. Collectivism, In collectivist societies, such as Japan, the self-worth of an individual is rooted more in the social system than in individual achievement.High vs. low power distance, High power distance cultures tend to be less egalitarianMasculine vs. Feminine, How much the culture is dominated by assertive male versus nurturing femalesWeak vs. strong uncertainty avoidance, How risk tolerant or aversive people are

Global market offering

The “Four P’s” of marketing: product, price, placement, and promotion are all affected as a company moves through the five evolutionary phases to become a global company. Ultimately, at the global marketing level, a company trying to speak with one voice is faced with many challenges when creating a worldwide marketing plan. Unless a company holds the same position against its competition in all markets (market leader, low cost, etc.) it is impossible to launch identical marketing plans worldwide.

Advantages

Economies of scale in production and distributionLower marketing costsPower and scopeUniformity of marketing practices

Disadvantages

Differences in consumer needs, wants, and usage patterns for productsDifferences in consumer response to marketing mix elementsDifferences in legal environmentDifferences in marketing institution

ProductPrice PromotionPlace

Page 13: Global Market Offerings

Product

A global company is one that can create a single product and only have to tweak elements for different markets. For example, Coca-cola uses two formulas (one with sugar, one with corn syrup) for all markets. The product packaging in every country incorporates the contour bottle design and the dynamic ribbon in some way, shapes, or form. However, the bottle or can also includes the country’s native language and is the same size as other beverage bottles or cans in that country.

Price

Price will always vary from market to market. Price is affected by many variables: cost of product development (produced locally or imported), cost of ingredients, cost of delivery (transportation, tariffs, etc.), and much more. Additionally, the product’s position in relation to the competition influences the ultimate profit margin. Whether this product is considered the high-end, expensive choice, the economical, low-cost choice, or something in-between helps determine the price point. (Kotabe & Helsen, pp.17-18)

Placement

How the product is distributed is also a country-by-country decision influenced by how the competition is being offered to the target market. Using Coca-Cola as an example again, not all cultures use vending machines. In the United States, beverages are sold by the pallet via warehouse stores. In India, this is not an option. Placement decisions must also consider the product’s position in the market place. For example, a high-end product would not want to be distributed via a “dollar store” in the United States. Conversely, a product promoted as the low-cost option in France would find limited success in a pricey boutique.

Promotion

After product research, development and creation, promotion (specifically advertising) is generally the largest line item in a global company’s marketing budget. At this stage of a company’s development, integrated marketing is the goal. The global corporation seeks to reduce costs, minimize redundancies in personnel and work, maximize speed of implementation, and to speak with one voice. If the goal of a global company is to send the message worldwide, then delivering that message in a relevant, engaging, and cost-effective way is the challenge. Effective global advertising techniques do exist. The key is testing advertising ideas using a marketing research system proven to provide results that can be compared across countries. The ability to identify which elements or moments of an ad are contributing to that success is how economies of scale are maximized. Market research measures such as Flow of attention, and branding moments provide insights into what is working in an ad in any country because the measures are based on visual, not verbal, elements of the ad

Page 14: Global Market Offerings

Global firms in Pakistan

Telenor, ABN-AMRO Bank, KFC, Procter & Gamble and Gillette are among the companies that have successfully marked global products and they are also doing well in Pakistani environment.

Emergence of Telenor as a fastest growing provider of communication in Pakistan & worldwide

Telenor is emerging as one of the fastest growing providers of mobile communications services worldwide. Telenor is also the largest provider of TV services in the Nordic region. The Telenor Group More than 115 million mobile subscriptions worldwide Strong position in the growing Scandinavian market for broadband services largest provider of television and broadcast services in the Nordic region

Revenues 2006: NOK 91.1 billion Workforce: 34,350 man-years Listed on the Oslo Stock Exchange and NASDAQ in New York

Mobile operations

Telenor holds controlling interests in mobile operations in 13 mobile operators across Europe and Asia. Our international mobile footprint covers more than 650 million people.

Fixed

Telenor is Norway's leading provider of fixed-line telecommunications services, and is strongly positioned in the rapidly growing Nordic market for broadband. Offers include analogue and digital fixed-line telephony, as well as broadband voice over IP, Internet access, value-added services and leased lines.

Broadcast

Telenor is the leading provider of television and broadcasting services to consumers in Norway

Telenor acquired the license for providing GSM services in Pakistan in April 2004, and launched its services commercially in Islamabad, Rawalpindi and Karachi on March 15, 2005. On March 23, 2005 Telenor started its services in Lahore, Faisalabad and Hyderabad. Telenor has become the second largest cellular network in Pakistan by launching over 1100 destinations within two years!

Telenor has its corporate headquarters in Islamabad, with regional offices in Karachi and Lahore.

The company has covered several milestones over the past twenty two months and grown in a number of directions.

Page 15: Global Market Offerings

ABN AMRO International is a prominent banking group - ranked eighth in Europe and seventeenth in the world on tier 1 capital, with

over 3,500 branches, a staff of 111,000 and total assets of EUR 597.7 billionABN AMRO was established in 1948 and was the first foreign bank to be granted a license by the Government of Pakistan. With total assets of over PKR 66.5 Billion, equity of PKR 4.5 Billion, and deposits of almost PKR 52 Billion, ABN AMRO is placed and well positioned as one of the larger foreign banks in Pakistan. We have posted pre-tax profits of nearly PKR 2.2 Billion (December 31, 2005), and the ROE of almost 51% is amongst the highest in its peer group. Over the last four years, ABN AMRO has significantly enhanced its profile in Pakistan, and is comfortably ranked amongst the top 3 foreign banks in the domestic market. Over the last four years, ABN AMRO has significantly enhanced its profile in Pakistan, and is comfortably ranked amongst the top 3 foreign banks in the domestic market. The Bank currently has a presence in 6 cities namely, Karachi, Lahore, Islamabad, Rawalpindi, Multan and Faisalabad employs 458 employees country wide.

KFC Corporation based in Louisville, Kentucky is the world’s most popular chicken restaurant chain. Everyday nearly eight million customers are served around the world. KFC has more than 11000 restaurants in more than 80 countries around the world.KFC is part of Yum brands, Inc. Which is the world’s largest restaurant system with more than 32500 KFC, A&W All American Food, Taco Bell, Long John Silver’s and Pizza Hut restaurants in more than 100 countries and territories, is the world's most popular chicken restaurant chain,KFC has come a long way with over 10,000 outlets in the world. KFC has maintained its title for at least 60 years of being the chicken expert. Opening the first Kentucky Fried Chicken

(KFC) outlet in Gulshan-e-Iqbal Karachi in 1996. KFC wore the title of market leader in its industry. Serving delicious and hygienic food in a highly relaxed and hygienic environment made Kentucky fried chicken (KFC) everyone’s favorite.Since then Kentucky Fried Chicken (KFC) has constantly introducing new products and opening new restaurants for its costumers.Presently Kentucky Fried Chicken (KFC) is branched out in 9 cities of which are as follows KARACHI, LAHORE, ISLAMABAD, RAWALPINDI, FAISALABAD, MULTAN, PESHAWAR, SIALKOT, HYDERABAD, JEHLUM and GUJRANWALA.Government of Pakistan used to receives over Rs. 10 Million per month from Kentucky Fried Chicken (KFC) as a direct taxes95 percent of all food and packaging material used in Pakistan procured locally, which sums up to a purchase of over 35 million per monthEach new outlet developed by KFC Pakistan costs approximately 40 million, which is huge amount for our construction industry. KFC and Pakistan… Growing Together

Page 16: Global Market Offerings

Procter & Gamble started its operations in Pakistan in 1991 with the goal of becoming the finest global local consumer goods company operating in Pakistan. With commitment came growth, and in 1994 we acquired a soap-manufacturing facility, a sprawling 7-acre land at Hub, Balochistan. Over the past nine years, the plant achieved state-of-art manufacturing technologies and quality assurance processes. With a recent strategic investment of 5 million dollars, the

bar soap production capacity jumped three-fold. As a company it has always believed in the potential Pakistan has as a country and a nation to develop and excel. No wonder P&G Pakistan, within the last 12 years, has reinvested over $100 million in Pakistan and has contributed close to seven billion rupees to the Pakistani government's revenues over the last 5 years in the form of sales tax, customs and excise duties. That is also why 99% of the jobs that P&G Pakistan creates in Pakistan are held by Pakistanis. All this makes P&G a more locally involved company than many companies actually headquartered in Pakistan. Since the inception of P&G Pakistan, it has always committed us to business growth, consumer satisfaction and community development. It is all because of committed base of employees, customers, vendors, stakeholders, and above all, consumers; today we are one of the most thriving operations in Pakistan. P&G proudly celebrate being a part of the Pakistani way of life.

Page 17: Global Market Offerings

Pantene

The Pantene Pro-V line of shampoos is the best selling shampoo and conditioner system in the world loved by women in more than 100 countries. Pantene has always been on the cutting edge of hair care technology being the shampoo that provides solution to different types of hair problems. Pantene was launched in Pakistan in 1995 and currently every 6th female shampoo user uses Pantene for her hair care needs. Pantene in Pakistan has 5 variants that provide solution to different hair problems as below:

Head & Shoulders

Head & Shoulders is the world's leading Anti Dandruff shampoo. It has been awarded "the best Anti Dandruff shampoo" by many medical associations including US dermatologists. In Pakistan, H&S has a 65% market share of Anti Dandruff shampoo segment. It has consolidated this position since the new Renaissance launch. The new, best ever formula for Head & Shoulders contains extra moisturizers, which clear away dandruff and also leave hair looking beautiful.

Vicks

Vicks is a well-established and leading brand for cough and cold Relief across the world. Globally, there are a broad range of products under the Vicks umbrella, ranging from Multi-symptom relief medicine (Nyquil and Dayquil) to the world famous Vicks Vaporub to other cough and cold relief syrups (Formula 44), tablets (Action 500).In Pakistan Vicks Vaporub is the leading external medicine brand for cough and cold relief while Vicks Throat Drops are fast gaining acceptance as an instant relief for throat irritation. In the years to come, the Vicks team in Pakistan will introduce more and more of its successful products to the consumers of the country.

Safeguard

Page 18: Global Market Offerings

Safeguard® is the No. 1 antibacterial soap worldwide; it is the only bar soap registered with the FDA. Safeguard is designed to provide excellent germ protection for the whole family.Safeguard, launched in 1995 by Procter & Gamble has set new standards for defining "health & hygiene" in Pakistan. It is an anti-bacterial soap that provides germ protection for twice as long as ordinary soaps making it the doctors' number 1 recommended choice throughout the world. In addition to germ protection, it also caters to various other needs such as beauty care and protection against sweat odor.

PUR

PuR is a cost effective, authentic and comprehensive water treatment technology, which aims to provide safe drinking water at the household level.Developed by the Procter & Gamble Health Sciences Institute in collaboration with the International Council of Nurses (ICN) and the Centers for Disease Control and Prevention (CDC), PuR counters bacteria, viruses, pathogens, heavy metals such as arsenic and lead, organics, and turbidity in your drinking water. PuR effectively deals with impurities that have the potential to cause Typhoid, Cholera, Dysentery, Diarrhea, Hepatitis and intestinal infections. PuR has been widely tested and proven effective in providing clean drinking water

for people in the developing world. Various international and local research organizations and publications have recognized PuR for effectiveness and deduced its excellent performance. The PuR technology has been validated world over and in Pakistan by the Pakistan Council of Research in Water Resources.

Gillette's Path to Global Success

Gillette the most successful global consumer-packaged good companies, well known for product innovation. It offers insights on the innovation, acquisition, and global strategies of Gillette. It is chronologically well organized and is filled with interesting examples and facts.

Here it is highlighted about the keys of Gillette’s success in Pakistan and globally. The Sensor shaving system is one of the enduring innovation successes of Gillette. Gillette figures a way to manufacture “Sensor”, underscoring the fact that consumers come before manufacturing for Gillette. Gillette's marketing acumen was another driving force behind Sensor's success. The now famous tag line "The Best a Man Can Get" was born in the late 1980s for the brands Atra in the U.S. and Contour in Europe, but was used heavily for promoting Sensor. This advertising blitz was preceded by a teaser ad campaign that announced “Gillette is about to change the way men shave forever”. Symons, who then was president of the Shaving Systems Group, was so obsessed with the masculine perception of the product that he wanted a proper masculine sound and feel as the package was ripped open!

Page 19: Global Market Offerings

Gillette also has its own new product organization structure that has contributed to its success. It has a program management system under which all technical activity - R&D, engineering and manufacturing - is consolidated by product category. Such a program allows Gillette to a have a holistic approach to innovation in each category. Although this program faced initial resistance from employees, it eventually was well accepted.

Here is a good summary of Gillette's strategies and operations in Pakistan. For those interested in the multinational versus global debate, this summary reveals something about where Gillette stands on the issue. By Gillette's own admission, it was operating more as a multinational company than as a truly global company prior to 1991. Gillette offers the same spectrum of products made to the same world standards under the same factory principles. Although it may sell more of one product in Pakistan and another in Egypt, the product is the same. Gillette also has a global plan for its new products. For example, Sensor was simultaneously introduced in 19 countries.

The book claims that Gillette's recipe for offering products in new markets is an evolutionary or "Stone Age" strategy. In the razor market, the strategy revolved around the principle that Gillette will always offer double-edged blades that would highlight Gillette's quality over those of the local products and will upgrade their customers to use higher quality products over time. This strategy has relied on the existence of a sizeable affluent segment in every country. This upgrading strategy is not new to many companies, but what is interesting to note is that Gillette expects to continue with this simple strategy for the foreseeable future.

Reference List

Why Global Marketing?Global Marketing Management, 3rd Edition by Masaki Kotabe and Kristiaan Helsen, 2004.

Major Decisions in International MarketingMarketing Management, 11th Edition by Philip Kotler

Direct InvestmentMarketing Management, 12th Edition by Philip Kotler & Kevin Lane Keller

Global Web Strategy, Global Adaptation and Product AdaptationMarketing Management, 12th Edition by Philip Kotler & Kevin Lane Keller

Global Market OfferingsMarketing Management, 11th Edition by Philip Kotler

Telenor www.telenor.com/ir.

ABN-AMROwww.ABNAMRO.com.pk

Page 20: Global Market Offerings

KFCwww.KFC.com

P&Gwww.procter&gamble.com

Gillettewww.gillette.com

All pictures are taken fromwww.google.images.com.pk