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A. BOOK REFERENCES
Al Ries, Jack Trout (2013). The Marketing Classic: Positioning. McGrawHill
Belch, George E. Advertising and promotion: an integrated marketing
communication perspective, New York, NY: McGraw-Hill/Irwin,
c2012.
Chitty, W., Barker, N. & Shrimp, T. Integrated Marketing Communication
2nd edition. Cengage Learning, c2012
Chitty, William, Integrated marketing communications, Victoria, Australia:
Cengage Learning. Australia, Pty Limited 2012
Clow, Kenneth E. Integrated advertising, promotion, and marketing
communications. Upper Saddle River, NJ: Pearson Education,
c2010.
Dahlen, Micael. Marketing communications: a brand narrative approach.
West Sussex: Wiley, c2010.
Don E. Schultz, Stanley I. Tannenbaum, Robert F. Lauterborn. Integrated
Marketing Communication: Putting It Together & Making It Work
Mizrahi, Janet, Fundamentals of writing for marketing : a brand and
public relations: a step-by-step guide for quik and effective results.
New York, NYL: Business Expert Press, c2010.
Philip J. Kitchen, Patrick de Pelsmacker (2004). Integrated Marketing
Communications: A Primer
Shrimp Terrence A. Advertising, promotion, and other aspects of
integrated marketing communications. [S.l.]: South-Western
Cengage Learning, c2013.

FAR EASTERN UNIVERSITY - Department of Communication


Students Portfolio of MC1242 and MC1248
Integrated Marketing Communications 2015-2016

45

B. LEARNING MATERIALS
HYGEIA INTERNATIONAL
Expansion in Nigeria is the issue. Henry Livingstone, vice president of the
Africa/Middle East Region of Hygeia International, has just received a proposal
from his Nigerian managing director for a major move into poultry production.
This would extend Hygeias profitable agricultural activities even more in that
West African country.
CORPORATE BASE
HYGEIA International is pseudonym for one of the 10 leading
pharmaceutical companies of the world. Based in the United States, Hygeia also
has laboratories and plants in many countries. Over a third of its net income is
earned outside the U.S., and because of growing federal regulation, Hygeia looks
abroad for a rising percentage of its future income.
Like other large pharmaceutical films, Hygeia has converted drugs
designed for humans to use in farm animals. This opens up a large market with
relatively low R & D expense. In addition to veterinary products for the control
and treatment of disease, Hygeia produces a variety of feed supplements.
Currently, about 15 percent of Hygeias total sales of over a billion dollars come
from agricultural activities!
Hygeias agricultural business includes active participation in mass
production of poultry. Today, frying chickens are raised in 100,000-chick batches.
Thanks to genetic selection. Scientific feeding, and a strictly controlled
environment, fries can be ready for market in 10 weeks. Egg production is
similarly engineered. Significantly, these mass production methods provide one
of the most efficient conversions of cereal grains into protein known on earth.
Of course, two essential features of such operations are drugs for disease
control and feed supplements. Hygeia makes both (as do several competitors).
More over, to keep contact with the latest developments, Hygeia has a subsidiary
focusing on development of new genetic strains in chickens-for a faster growth, a
FAR EASTERN UNIVERSITY - Department of Communication
Students Portfolio of MC1242 and MC1248
Integrated Marketing Communications 2015-2016

46

larger proportion of white meat, more egg, resistance to disease, or other desired
characteristics, In the U.S., Hygeia itself does not produce chicken or eggs
commercially or sell chicks for the purpose, but it does have experts familiar with
the entire technology.
As part of its international expansion, Hygeia has helped promote modern
poultry technology in Europe. Latin America and now Nigeria.
POTENTIAL MARKET
A British colony until 1960, Nigeria is growing dramatically; it is by far the
leading black African country economically. Its large population of over 90
million (growing 2.7 percent per year) coupled with massive foreign exchange
from its crude oil exports ($15 billion in 1980) provide a base for all sorts of
expansion.
At the time of independence, Nigeria was a relatively poor developing
country with only modest agricultural exports. Probably 90 percent of its
population relied on the small village economy, almost unchanged for centuries.
Political independence provided the drive, and oil the financial means to
modernize. Even now the average annual per capita income of about $500 is
unevenly distributed, with many village people being very poor.
National plans call for universal education and the improvement of
hospitals, roads and airports, electric plants. Radio and TV ad industry, Lagos,
the capital. Already have a population or over a million and so many
automobiles that new bridges and a fine elevated highway cannot handle the
traffic.
Such a rapid transition naturally creates strains politically. Then most
important task is to unite three major tribal groups: the Hausa-Fulani in the
north, Ibo in the east, and Yoruba in the west. They speak many different
languages (English is the common language) and traditionally are suspicious of
each other. A serious civil war occurred from 1967 to 1969 when Biafra tried
unsuccessfully to secede. The constitution provides for democratic government,
but a series of military coalitions has been necessary to maintain national unity.
Although significance European influence in Nigeria is only about a
century old along the southern coast, the Moslem religion and associated ideas
have been present in the northern, more and regions since the twelfth century.
FAR EASTERN UNIVERSITY - Department of Communication
Students Portfolio of MC1242 and MC1248
Integrated Marketing Communications 2015-2016

47

(Kano, for example continues to center around the s simple village economy with
strong emphasis on loyalty to the extended family. The great movement now
occurring is from the village to the city, with all the social and economic
adjustments tied to such a shift.
The total population growth, and especially the movement to the cities,
has created problems of food supplies. Nigeria has much fertile land., but sugar
and cereals are being imported. The village society is unsuited to large, but sugar
and cereals are being imported. The village society is unsuited to large-scale
agricultural technology, and marketing channels are poorly development.
Particularly serious is the shortage of protein foods. The production of peanuts is
rising slowly, but the amount of meat going into markets is stable at best.
Therefore one facet of the national plan ti increase agricultural output. A
system of agricultural agents advice farmers is being established some research

FAR EASTERN UNIVERSITY - Department of Communication


Students Portfolio of MC1242 and MC1248
Integrated Marketing Communications 2015-2016

48

FAR EASTERN UNIVERSITY - Department of Communication


Students Portfolio of MC1242 and MC1248
Integrated Marketing Communications 2015-2016

49

Thinking of ten ventures in the environs of the following cities: Lagos (3), Ibadan
(2), Benin (2), Kaduna, Kano, and Makurdi. Three will be parent-stock farms-one
each in Lagos, Ibadan, and Benin; the others will be commercial egg farms.
8. The financial projection prepared by R. Akobo, our agricultural manager, and
checked by M. Suleman, our financial manager, is attached [see Table 1.] you do
to have to send us cash: we can simply withhold capital as it becomes needed
from remittances due on shipments made to us.
TABLE 1.
FINANCIAL SUMMARY
(Based on detailed estimated amounts in thousands of dollars)
Land
Building & equipment
Development Expenses
Total fixed investment
Working Capital
Total investment
Sales
Direct Expenses
Administration, Sales, etc.
Operating profit
Income taxes @ 50%
Net Profit
Government and Bank Financing
Equity
Total investment
Return on equity before Taxes/yr
Return on equity after Taxes/yr

40
960
100
1,100
500
1600
2,300
870
150
1,020
510
510
1000
600
1,600
170%
85%

25
440
60
525
175
700
850
685
45
120
60
60
450
250
700
48%
24%

Sales figures, but not expenses, reduce 20% to allow for contingencies.
Actually, most Nigerian taxes will be rebated during first four years.
Figures converted from naira to dollars at rate of IN - $1.50.
Inflation will increase all estimates, but the proportion should remain the same.

FAR EASTERN UNIVERSITY - Department of Communication


Students Portfolio of MC1242 and MC1248
Integrated Marketing Communications 2015-2016

50

Estimates are for full-scale operations. It will take two to three years to reach this
level. Estimates show both cash and net income break even by end of first year
and, with tax rebate, full recovery of equity early in third year.

FAR EASTERN UNIVERSITY - Department of Communication


Students Portfolio of MC1242 and MC1248
Integrated Marketing Communications 2015-2016

51

FAR EASTERN UNIVERSITY - Department of Communication


Students Portfolio of MC1242 and MC1248
Integrated Marketing Communications 2015-2016

52

FAR EASTERN UNIVERSITY - Department of Communication


Students Portfolio of MC1242 and MC1248
Integrated Marketing Communications 2015-2016

53

FAR EASTERN UNIVERSITY - Department of Communication


Students Portfolio of MC1242 and MC1248
Integrated Marketing Communications 2015-2016

54

FAR EASTERN UNIVERSITY - Department of Communication


Students Portfolio of MC1242 and MC1248
Integrated Marketing Communications 2015-2016

55

FAR EASTERN UNIVERSITY - Department of Communication


Students Portfolio of MC1242 and MC1248
Integrated Marketing Communications 2015-2016

56

FAR EASTERN UNIVERSITY - Department of Communication


Students Portfolio of MC1242 and MC1248
Integrated Marketing Communications 2015-2016

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