Download Notes to Accompany Videos for International Marketing, 15e

Notes to Accompany Videos for International Marketing, 15e
Video Segment 1: Seoul Success (7:05)
Text References: Chapters 1, 4, 8, 12, 13
Video Summary
Samsung attributes its global success and meteoric rise in BusinessWeek’s ranking of
the top 100 global brands to measuring its business outcomes and staying true to its
brand mission. The company uses a multitude of factors to measure success
including revenue, profitability, and brand attitude studies from a local level to a
global level. Samsung’s brand mission is to become the number one provider of the
best digital lifestyle experience across business, home, and mobile products.
The company believes that brand is a promise to consumers and consists of many
related attributes including support, service, on-time marketing, image, and design.
These variables must work in tandem to deliver the “best of breed” to consumers.
Samsung’s brand philosophy is demonstrated by the company’s constant interaction
with consumers before approving the final design of its products. For example,
Samsung’s DLP technology was created as a result of intense focus groups with
consumers who wanted a brighter TV picture, a lighter television that could be
moved room to room, and a less-expensive price point than plasma TVs. Working
with Texas Instruments, the company was able to develop and design TV products
that have been a “runaway success.”
Samsung believes it is critical to “infatuate” consumers with its brand so consumer
loyalty crosses over to other Samsung products. For example, as a cell phone leader,
Samsung brought out a new cell phone model every two weeks that worked faster
and had more capabilities and cutting edge technology than other phones. This
short product life cycle and Samsung’s ability to bring out newer and better
products quickly has allowed the company to keep consumers loyal to its brand.
Discussion Questions
1. What makes Samsung’s approach so successful?
Suggested Answer: Samsung employees understand the company’s brand mission of
being the number one provider of the best digital lifestyle experience. The company
firmly believes that listening to consumers before bringing products to market has
had a huge impact on the company’s success. Samsung also believes that in order to
get consumers to buy its products, the related factors of service, customer support,
usability, and cutting-edge design and technology are critical.
2. Samsung’s meteoric rise comes at the expense of some of its global competitors.
How can other companies gain back some competitive advantage?
Answers will vary; however, it’s important to understand cultural differences of
various countries and how they impact a company’s ability to go global and to
understand consumer behavior in countries around the world. Another key point is
a company’s ability to bring products to market quickly.
Video Segment 2: Disney Imagineering—Global Markets (10:16)
Text References: Chapters 4, 5, 13
Video Summary
In the mid-1950s, successful filmmaker Walt Disney wanted somewhere to take his
two young daughters that would be an enjoyable outing for the family. When he
couldn’t find such a destination, he created his own. In 1955, Disneyland opened in
Anaheim, California and became known as the “happiest place on earth.” With its
themed areas (such as fantasyland and tomorrowland), Disneyland attracted
visitors from across the country. At the same time, the company created Disney
Imagineering, which consisted of artists and craftspeople, and became the vision
behind Disney’s national and global expansions. In 1971, Disney expanded its theme
parks to Walt Disney World and Epcot Center in Orlando, Florida. Epcot drew
families from across the globe and paved the way for more “happy” places around
the world.
According to Jim Thomas, Disney Imagineering has three strategic priorities when
entering new markets: creativity and innovation; application of technology; and
global expansion. Along with these priorities come barriers to entering global
markets that include language, political challenges, cultural differences, and
fluctuating currencies.
The Disney brand is about human traits—stories about family, fears, and humor that
transcend all languages and cultures. With the United States making up only 5% of
the world’s population, the company’s decision to expand globally was a strategic
success. Every time a visitor walks into a Disney park in Europe or Asia, he/she
participates in global trade. Global expansion not only benefits Disney but the local
market and culture as well. When Imagineering was planning the venue in Hong
Kong the company knew it had to maintain the integrity of the Disney brand but be
sensitive to the needs of the local culture. Disney honored Hong Kong’s practice of
achieving harmony with the environment by hiring a feng shui consultant to advise
on the physical location of the park and its proximity to the sea.
There are always challenges and opportunities when entering a new market. The
company hires local talent, including architects, set designers, and engineers. They
believe in identifying the top local talent and keeping them as part of the Disney
team. The company also believes in adapting to cultural differences by obtaining
feedback from consumers. Disney receives extensive feedback via the Internet from
Japanese consumers who point out current trends in popular culture that can be
blended into special events at Tokyo Disneyland.
Disney’s global success is an example of an organization that stays true to its brand
while providing exceptional benefits to local markets and cultures.
Discussion Questions
1. How does Disney embrace local culture when expanding to markets outside the
United States?
Suggested Answer: When entering a new market, Disney hires local talent (for
example, set designers, architects, engineers) who are familiar with the customs and
preferences of the regional area. Disney also calls upon its past experience in
developing other venues to help anticipate challenges and obstacles in future
expansions.
2. Explain how Disney maintains a consistent global brand.
Answers may vary. One example is that Disney keeps its core attractions universal
and timeless while changing its “software” components (local entertainment and
special events) to reflect local culture and preferences. Another example is Disney’s
mission built on happiness and optimism permeates the overall theme park
environment. The Disney experience allows guests to play in a world of imagination,
and that experience is revisited and talked about for years to come.
Video Segment 3: Starbucks—Building Relationships with Coffee Growers
(12:08)
Text References: Chapters 1, 14
Video Summary
Starbucks has been a specialty coffee seller since its beginnings in 1971. The
company relies heavily on its coffee farmers to grow the high-quality beans it
purchases from growers around the world. Coffee is big business, and Starbucks
purchases at least 1.5% of the beans sold annually across the globe.
Starbucks typically buys its special grade of coffee beans directly from small
growers. When coffee bean prices dropped to less than 50 cents per pound,
Starbucks faced a huge challenge—how could it keep its growers in business when it
cost more to grow the beans than the money farmers would receive for selling their
crop?
The company developed several strategies for sustainability. First, it began to pay a
premium to growers to help them cover their costs. Starbucks prides itself on
understanding what it costs to grow coffee in a particular region and typically pays
above that price. When negotiating with farmers, Starbucks believes price is the last
discussion point, not the first. Next, the company worked closely with the small
farmers to teach them about the quality of beans the company required and how to
sustain quality growing methods.
To stabilize prices, Starbucks has started to negotiate long-term contracts
(anywhere from two to five years) with its growers. This guarantees Starbucks a
regular supply of coffee beans and predicts future sales at a regular price and
consistent profits for growers over a specific period of time. This allows the growers
to reinvest in their money-making sources: plant new trees, prune existing trees
correctly, plan and purchase new equipment to ensure the farmers stay in business.
Starbucks has also partnered with two non-profit organizations to provide
affordable credit to coffee growers in Latin America. Working through a third party,
Starbucks provides bridge loans to growers (similar to a line of credit for small
businesses in the US) so that they can pay the bean pickers during harvest time.
By investing and giving back to its coffee-growing partners, Starbucks has realized
some unexpected results. The company has spearheaded many social projects in
countries where they buy coffee beans, which include building primary and
secondary schools and medical clinics for workers.
Starbucks believes that business success and social responsibility go hand-in-hand.
To grow as a company, Starbucks believes it can secure future success by acting
responsibly.
Discussion Questions
1. Explain how Starbucks manages the price–quality relationship with its coffee
growers.
Suggested Answer: Because it is considered a specialty coffee retailer, Starbucks
believes that the quality of the coffee beans it buys must be high, and the company is
willing to pay its farmers a premium price to not only grow the best beans but also
to ensure that its growers make a profit, stay in business, and reinvest in their
operations.
2. How does Starbucks use relationship marketing in dealing with its growers?
Suggested Answer: Starbucks relies heavily on its preferred growers, and it is
critical that the company work closely with the farmers on several levels. From a
business standpoint, Starbucks believes building its preferred suppliers program is
critical to the company’s long-term success. The company does this in several ways:
it subsidizes growers via bridge loans to be sure they can pay the workers
harvesting the coffee beans; it has partnered with several eco-friendly organizations
to preserve and sustain the environment in which coffee is grown; and it gives back
to the regions and countries where it works with coffee growers as a way of staying
socially responsible.
Video Segment 4: McDonald’s—Segmentation, Targeting, Positioning (4:45)
Text References: Chapters 8, 12, 16
Video Summary
Segmenting markets is central to McDonald’s marketing strategy and advertising
efforts. Unlike other companies that organize their marketing by brands,
McDonald’s organizes its marketing by segment. For example, there are segment
managers for young adults, women, moms, African-Americans, Hispanics, and
Asians. This type of structure puts the company in a position to maximize targeted
marketing efforts.
The company uses “segment insights,” which are bits of information about
consumer behavior developed through marketing research. This information is
collected on a daily basis by several hundred full-time employees, and it helps
McDonald’s understand how to describe its products in the best way for each
specific segment of the population.
As an example, McDonald’s Southwest Chicken Salad is marketed differently to
various segments. For the general population, ads focused on the cool variety of
ingredients in the salad. Because marketing intelligence tells the company that AfroAmericans are unlikely to substitute a salad for most sandwiches, McDonald’s
developed a message for that segment that describes the salad as a hearty, filling,
and interesting alternative to a sandwich.
For the Hispanic segment, McDonald’s marketing efforts showed the salad was full
of ingredients that would resonate with culture and heritage—compelling
ingredients for entirely different reasons. Marketing intelligence has told
McDonald’s that Asian consumers like a variety of tastes and new and different
components in their salads.
McDonald’s believes that understanding consumer segments and positioning
products to appeal to individual segments has increased the company’s overall
sales.
Discussion Questions
1. What are the advantages of McDonald’s marketing approach?
Suggested Answer: Collecting extensive consumer information and dividing the
population into specific segments allows McDonald’s to target its marketing efforts
in an efficient manner to various consumers.
2. If you were a segment manager at McDonald’s how would you target coffee
products to young adults? To moms? To senior citizens? What would be the key
marketing data used for each of the three segments?
Answers will vary but should spark a lively discussion about how to target market
to different segments of the population. Targeting coffee to young adults might
include emphasis on the rich taste of the coffee as well as the variety of different
coffee drinks available at bargain prices. Targeting moms might acknowledge the
busy lifestyle of today’s young moms and the convenience of buying McDonald’s
coffee drinks at the drive-thru window. Targeting senior citizens might focus on the
inexpensive pricing associated with McDonald’s coffee.
Video Segment 5: Starbucks—Corporate Social Responsibility
Text References: Chapter 5
Video Summary
Consumer behavior research reveals that people frequent companies that have a
positive impact on the local community. Starbucks is one such company. Although
considered a small player in the global coffee market (purchasing about 1% of
global coffee crop annually), Starbucks has become a big player when it comes to the
impact the company has had not only on the industry but on business activities at
the global level.
Starbucks believes that corporate social responsibility (CSR) is an important part of
its everyday business. Customers are concerned about how a company operates,
and Starbucks believes in disclosure and transparency. Giving consumers a window
to how a company operates ultimately helps bring customers in the door.
Sue Mecklenberg, Starbucks’ VP of Business Practices, says the company is always
looking at the way it conducts business. The company has two permanent
objectives: “meeting our numbers” and “living our values.”
The definition of CSR is constantly evolving, according to Mecklenberg. In the past,
CSR activities were strictly philanthropic in nature, meaning the company would
write checks to charitable organizations. Now CSR activities are undertaken based
on reviewing both internal and external factors and the needs of employees and
other partners to be sure the company is acting responsibly.
Starbucks commitment to being socially responsible begins with the way they treat
their employees. All employees—full-time and part-time—receive health care
benefits and stock options. The company refers to its employees as partners because
they all have a financial stake in how well the company succeeds at the local level as
well as at the global level.
On the local level, Starbucks provides product donations and corporate
sponsorships to the community. In an effort to get employees to practice personal
corporate responsibility, the company matches monies donated by employees to
organizations and also contributes to non-profit organizations in which employees
volunteer on a regular basis.
Conservation and sustainability are important elements of Starbucks CSR strategy.
The company has started a Green Team, consisting of employees from across the
United States, which looks at ways to reduce resources, an action that lowers
expenses and lessens harm to the environment.
Starbucks works closely with its coffee farmers to be sure they are committed to
sustaining the environment and acting in a socially responsible manner. The
company created a set of sourcing guidelines for the farmers to use to ensure its
philosophies are followed.
Starbucks issues an annual CSR report to all stakeholders, which provides the
company with a sense of discipline and purpose to measuring and monitoring how
the organization is doing when it comes to its social responsibility. This report has
“enormous impact on how we view ourselves as a company.” In fact Starbucks’ welldocumented reputation of being socially responsible helps attract investors who
also want to demonstrate their commitment to social responsibility.
Corporate social responsibility also provides a boost to Starbucks’ bottom line. By
giving all employees health care benefits and demonstrating concern about their
overall well-being, Starbucks has kept employee turnover very low, thus reducing
hiring and training costs.
Discussion Questions
1. How does Starbucks’ policy of corporate social responsibility impact the
company’s bottom line?
Suggested Answer: Starbucks’ commitment to social responsibility has a positive
impact on the company’s business in several ways. First, by being transparent about
its business practices, Starbucks attracts consumers and employees who believe the
company is working to better the planet by its eco-friendly and sustainable
activities. Second, by providing employees (whether full or part time) health care
benefits and stock options, Starbucks is able to retain employees, thus reducing its
hiring and training costs.
2. As Starbucks continues its global expansion, what must it do to ensure that the
company maintains its socially conscious focus?
Suggested Answer: Student responses will vary. Starbucks must continue to learn
from its employee partners and other business partners about how the company
can improve its eco-friendly approach while keeping costs in check. It will be
important for the company, from a marketing standpoint, to share its vision on a
local level in new regions while respecting the local cultures.
Video Segment 6: BP—Creating a Global Brand
Text References: Chapters 1, 5, 16
Video Summary
Prior to 1998, British Petroleum (BP) was a mid-sized energy company that did
business around the world. Through a series of mergers and acquisitions over the
next four years, BP became a large organization that included such companies as
Amoco, ARCO, and Castrol in the United States and Aral Petroleum in Germany. By
2002, the company doubled its size, expanded into new markets, and became the
world’s largest energy company.
The new BP faced an enormous challenge: how to reinvent itself from a British oil
company to a global brand. The company decided that it needed to develop a set of
core values for all of its employees, consumers, and stakeholders worldwide.
Management believed that in order for a new global brand to be created, employees
needed a “sense of belonging” to the new organization and its corporate values.
The company undertook a major rebranding initiative. One of the first steps was to
gather employees from all of the acquired companies and discuss what should be
the core values of the new global business. After many discussions, the company
came up with four core values that would become the driving force behind creating
a new global brand: performance, innovation, progressive, and green.
Once the core values were identified, the company held a series of training sessions
to unify, excite, and motivate employees about the new global brand. In fact, the core
values form a major part of the company’s training sessions for new as well as
veteran employees. The sessions allow employees and team leaders the opportunity
to discuss the company’s core values and how they can be applied to daily life.
Once the new brand was created, BP implemented a global
communications/marketing plan that would help change consumers’ negative view
of the oil industry. The company’s marketing efforts focused on the new core values,
establishing a new type of relationship with stakeholders.
The other strategic decision was to consolidate all advertising and marketing efforts
into one communications group worldwide instead of individual advertising
agencies around the world. This move helped BP ensure consistency in its brand
message across the globe.
BP believes that one of the major challenges for any global brand is to be responsive
to local needs. It is important to accept that we work with diverse cultures and must
respect all of them. In fact, BP decided to keep some of the product lines that were
leading brands in several markets rather than rebrand them under the BP name.
Creating a new global brand takes much effort and strategic vision; however, BP
believes the “new” organization has become a global citizen guided by its core
values.
Discussion Questions
1. Why are BP’s core values important in building a global brand?
Suggested Answer: In a short period of time, BP acquired nine other companies
around the world and merged them into one large organization. In order for the
“new” company to create a global brand, BP had to unify and motivate all of its
employees to support the new organization by providing a “sense of belonging.” BP
management listened to employees from the acquired companies to understand
what was important to them in the new “blended” organization. A global company’s
brand is the core of the corporation, how it is perceived and how it relates to key
stakeholders.
2. How do you think the company’s involvement in the Gulf Coast oil crisis in 2010
affected its global brand and its core values?
Suggested Answer: Student answers will vary and possibly spark a lively discussion.
The oil spill caused an environmental disaster and took a long time to clean up. BP’s
CEO lost his job as a result of how he handled the overall situation. From a
marketing standpoint, BP—once it mobilized its marketing/communications
efforts—ran several TV commercials and print ads acknowledging its involvement
and vowing to “make it right.” The company used BP employees in the commercials
who were from the affected areas as a way of “humanizing” the event. In 2011, BP is
running TV commercials featuring Gulf Coast fishermen who are now back at work,
possibly as a way of helping to “clean up” its tarnished image, particularly in the
United States.
Video Segment 7: Kraft—Marketing Globally (5:14)
Text References: Chapters 4, 8, 12, 16
Video Summary
Kraft’s Oreo cookie is the most popular cookie in the world, enjoyed in more than
100 countries. A truly global product, Oreo is sold in a consistent form and its
unique flavor translates across borders.
Adjustments to product, packaging, and promotion are sometimes necessary to
match consumer tastes and expectations in each country. For example, in China, the
Oreo contains 27% less sugar, and consumers in Venezuela prefer milk chocolate
Oreos.
Packaging changes from market to market. In the United States, Oreos are packed in
large formats, typically because consumers shop in large stores and have large
pantries at home in which to store food. Smaller packaging formats are used in other
countries because of limited shelf space and smaller home pantries.
One of the greatest challenges in global marketing is creating promotions. Marketers
must understand cultural subtleties—promotional campaigns in one country may
not be relevant or understood in another. Oreo’s brand message is to provide
moments of child-like delights. Oreo’s twisting, licking, and dunking ritual is
typically passed down from one generation to another (for example, a parent
showing a child the ritual). However, in countries where there is no brand heritage
for Oreos, Kraft believes it makes sense to use promotions that show a child
introducing the ritual to a parent or sibling.
Promotions are highly customized to a specific country. For example, in China
brands advertised on TV are perceived to be more credible and of a higher quality.
Thus Kraft’s predominant form of promotion appears on Chinese television. In
Venezuela, Kraft uses outdoor ads and marketing based on consumers’ busy
lifestyles. Kraft’s research determined that the best time to reach consumers in
Venezuela is during drive time, so Kraft uses large ads painted on sides of buildings
for the best impact.
Marketing a product globally allows for a huge growth potential for any brand.
Focusing on cultural differences has helped Kraft make Oreo the number one cookie
brand in the world.
Discussion Questions
1. What type of market research should Kraft conduct to determine the proper
promotional approach for Oreos?
Suggested Answer: Qualitative and quantitative research should be undertaken in
various countries to understand consumer preferences and to create the most
effective advertising/promotion campaign for Oreos. It is important that Kraft rely
on local employees to help the company understand the marketing process in each
region.
2. Describe how Kraft uses rituals in its global marketing approach for Oreos?
Suggested Answer: Rituals are patterns of behavior that are learned and repeated.
Oreo’s brand message is that the cookie provides moments of child-like delights for
people of all ages. The twisting, licking, dunking ritual is a delightful event and has
been shown in promotions to be passed down from grandparents to grandkids or
parents to their own children. In some countries where there is no brand heritage,
Kraft has been successful promoting the product by having a child introduce the
ritual to parents or siblings.
Video Segment 8: Dole—Buying from Vendors Around the World (7:05)
Text References: Chapter 14
Dole is the world’s largest producer of fruits and vegetables. To maintain such a
large-scale operation, the company must contract with vendors around the world.
Dole has developed a five-step process that streamlines and regulates how the
company works with vendors. The five steps in the business-to-business (B2B)
buying process are (1) Need recognition; (2) product specification; (3) RFP process;
(4) order specifications and delivery dates; and (5) vendor performance analysis.
The first step involves identifying a need that must be filled. For example, a vendor
may not be able to keep up with Dole’s volume demands or meet the quality specs
that are required, so the company is looking for additional reliable vendors. The
second step is itemizing product specifications that potential vendors must be able
to meet. Dole only hires a vendor after its Q&A team deems a vendor’s practices
meet Dole’s standards. The third step is asking vendors to complete a request for
proposal (RFP) based on Dole’s required specifications. To avoid a monopoly, Dole
requires three different vendors supply bids for each RFP.
Once vendors are selected, Dole provides specific specifications for orders (for
example, fruit size, texture, sugar levels) and firm delivery dates. This is the fourth
step in the process. Firm delivery dates are crucial because growing seasons can be
affected by inclement weather and natural disasters. Flexible delivery dates don’t
work because Dole’s produce typically takes six weeks to get from producer to store
shelves, and planning is key.
The final step is analyzing vendor performance. This is a customized process that
identifies and lists Dole’s requirements and looks at vendors’ performances against
this list to determine each vendor’s score. If a vendor’s score is unsatisfactory, it
may not work with Dole in the future. Customer feedback is also included in
performance analysis.
Dole believes that using a formalized B2B process is essential for creating successful
partnerships with vendors across the globe. The uniform structure of Dole’s B2B
approach prevents wasted time, communication lapses, and compromised quality.
The B2B process is essential to Dole’s success and overall growth.
Discussion Questions
1. How does Dole maintain the highest quality in its products?
Suggested Answer: The company maintains quality in its products by formalizing
the buying process, providing detailed specifications for its vendors to follow, and
evaluating each vendor’s performance according to key criteria. Included in the
performance criteria is customer feedback/complaints.
2. Why are firm delivery dates so important to Dole?
Suggested Answer: Supplying firm delivery dates is critical in Dole’s operation
because of the lead time needed to transport its products from grower to producer
to store shelves. On average, it takes 6 weeks of transportation time to get produce
to stores in various parts of the country. Planning is key to ensure products get to
market on time.
Video Segment 9: New Balance—Supply Chain Management (5:18)
Text References: Chapter 12
Video Summary
Supply chain management is the coordination of suppliers, manufacturers,
warehouses, retailers, and transportation so merchandise is produced in the right
quantity and sent to the correct location at the time the customer needs it. A smooth
supply chain is directly related to a company’s ability to market and sell its products
successfully.
New Balance produces athletic footwear and apparel. The company is unique
because it has manufacturing facilities in the United States as well as in Asia.
Domestic goods present a unique challenge to the flow of product because raw
materials come from various places around the world, which causes different lead
times for manufacturing in the U.S. plants. Finished products are shipped to
distributors where they are stored until they are sent to retailers.
Flow of information along the supply chain is as critical as flow of product. New
Balance relies on sales forecasts provided by its retailers. Supplied in spreadsheets,
the forecasts typically are for a period extending out 12 to 18 months.
Approximately 5 to 6 months into the timeframe, New Balance must make a
commitment to purchasing raw materials, so it needs firm orders from its retailers.
A flexible supply chain is critical. For example, if forecasts are off, retailers need to
be able to change business situations quickly. If one type of shoe does not meet
forecast numbers, communicating that information to New Balance will allow the
company to slow production down for that shoe or speed up production if another
product is selling faster than forecast. Retailers can also help out the supply side of
the business by devising promotions to sell excess inventory.
A well-managed supply chain is very important to marketers, and marketers need to
understand the variables that affect the supply chain. Becoming an informed
member of the supply chain team will help marketers provide better service and
quality to customers as well as increase the company’s overall profitability.
Discussion Questions
1. Explain the relationship between marketing and a well-managed supply chain.
Suggested Answer: A company’s supply chain is responsible for making sure that
products are in the right place at the right time. Marketers must understand the
variables that affect the supply chain and work with the team to make adjustments
based on ongoing sales forecasts. A supply chain that responds quickly to changing
situations will help marketers provide better service.
2. How do New Balance retailers communicate with the company’s manufacturers
and distribution centers?
Suggested Answer: Retailers send sales information and forecasts through
electronic data interchanges or spreadsheets to New Balance so that the supply
chain can make adjustments as needed. Effective communication between
marketers and retailers can have a positive effect on the company’s bottom line.
Video Segment 10: MINI-USA—Promotions (9:33)
Text References: Chapters 8, 16
Video Summary
MINI-USA faced several marketing challenges when introducing a new entry into the
U.S. auto market. The company had to build a brand from the ground up based on an
iconic auto brand in Europe; develop a new segment for the smallest car on the
road; and introduce two new models at the same time.
During prelaunch, MINI-USA talked to many consumers around the country to
determine the typical MINI customer. Market research revealed that potential
customers shared many of the same traits: successful, technologically savvy, and
inquisitive.
Evaluating the competition, marketers determined that other companies talked
about driving when promoting their car brands. Based on marketing data, MINI-USA
devised a promotional campaign that embraced the spirit of owning the new MINI
by promoting the concept of Motoring. As part of its marketing strategy, the
company created a Book of Motoring distributed to more than 300,000 consumers
via Web, trade shows, and other events to explain the “fun” culture of owning a
MINI.
The pre-launch phase was very successful, and the company continued its unique
approach to building the MINI brand during launch activities. These included “Make
Waiting Fun,” allowing customers to track the manufacturing process from order to
delivery, and “You-ification,” customizing the look of individual MINIs to reflect
owners’ personalities.
The company took an unconventional approach to advertising, calling it creative
content distribution and using billboards and other less expensive media to
communicate its “edgy” style. Its PR strategy used extensive publicity to create a
buzz about the new car, including safety and reliability features. MINI-USA also
invested time and money into training its MINI Motoring Advisors, who provided
the ultimate brand experience when selling cars to consumers.
Conveying its message in a fun and unique promotional campaign, MINI won North
American Car of the Year in 2003, the first European car to capture this prestigious
award.
Discussion Questions
1. Building a brand from scratch can take time and risks being a failure. How did
MINI-USA build a brand and avoid marketing missteps?
Suggested Answer: Student responses may vary but should include MINI-USA’s
commitment to using an integrated message to promote the new brand. It was
critical that each group within the company conveyed a singular voice when
generating publicity and telling the story of “Motoring.” The company also decided
to embrace the small size of the car in its marketing campaign, deciding to focus on
the “fun” aspects of owning such an interesting vehicle.
2. How did marketing research help the company “reframe” its advertising strategy?
Suggested Answer: The company’s marketers traveled around the country talking to
consumers and creating a buzz for the new brand. Marketing data showed that
potential MINI customers shared many similar traits, and the company decided to
focus on marketing promotions that would appeal to its inquisitive customers
(“Make Waiting Fun” and “You-ification”). Creating an effective Web site
(MINIUSA.com) not only helped the company attract customers but also retain
them.