3.

1 International Market Research at Mayo Clinic

Question - Assume you are the new marketing vice president at the Mayo
Clinic. The CEO and the board have decided to expand their international
sales revenues by 100 percent over the next five years. Write a memo to
your staff outlining the marketing research that will be needed to support
such a strategy. Be specific about sources of secondary data and the best
places and media for gathering primary data. Also, be specific about the
best methods to use.

Outlining the market research which needs to be done in order to support the
growth strategy
Step 1: Definition of the problem
Existing customers:

Determine current satisfaction level of patients and factors that cause

satisfaction or dissatisfaction
Perception of doctors, medical technology, nursing care, physical facilities,
management and ethics
Perception of Mayo Clinic

New potential markets:

Perception of health insurance, medical care (public and private) in different

markets
Perception of doctors, medical technology, nursing care, physical facilities,
management and ethics
Satisfaction or dissatisfaction of medical care services
Local competitors as well as local pricing of medical care services

Step 2: Development of the approach to the problem

Quantitative and qualitative research based on data about potential market. Each
potential market should be evaluated separately and in the end compared within
group so that the most profitable markets could be chosen. Moreover, another
market research should be organized for local market which will be focused on
increasing satisfaction of existing customer as well as definition of new potential
target groups.
Step 3: Formulating a research design
Gather the reliant data from secondary or primary sources, or both. Mayos
International Marketing Department should analyze available secondary information
as a useful first step. Information required ranges from the general statistical data
to understand target markets preferences in the healthcare industry to specific

market information about media and other efficient means of delivering information
to the target market for decisions about promotion. To find out which countries
value the US health care highly and where Mayo Clinic services may have a
competitive advantage over local ones we should conduct a multicultural research.
It involves countries with different languages, economies, social structures,
behavior, and attitude patterns towards taking care of their health. There are many
studies conducted and statistical documents available online for the secondary
dada research. These data are more widely available because they are commonly
reported by the United Nations and other international agencies. Once
approximations for health trends and preferences are established, Mayo will have
more understanding of what additional primary research is needed.

Step 4: Doing fieldwork and collecting data

In order to ensure the best quality, two methods of market research are
recommended to be used: quantitative and qualitative. Primary research will be
conducted by focusing on one country at a time and using native speaking research
agents. Outside vendors who know the culture and the language will be necessary
due to cultural differences that may lead to unwillingness or inability to participate,
collect, or interpret responses if surveys are conducted by US marketers. The main
goal is to gather as much cultural and historical information about our target
market. While conducting a survey the target market has to be a random sample in
a specific sample frame. This way every population member will have an equal
chance to be surveyed. This is a key of having a true random sample and avoiding
bias.
It is also recommended to conduct research about the local health providers and
availability of resources to treat the common and rare diseases found in such
countries. Qualitative data will be collected to find out preferences and criteria
people look for in a good health provider in their home country and whether they
are satisfied or not.
The primary research will be gathered by means of mail and email surveys, focus
groups, personal phone and face-to-face interviews, as well as direct observation of
people in clinics and insurance offices. The methods will vary according to customs
and cultural differences among countries.
Step 5: Preparing and analyzing data
After conducting and processing research, Mayo Clinic researchers should analyzed
gathered data. Analysis of the quantitative data should deliver insight into obtain
specific
responses
regarding
aspects
of the respondents behavior, intentions, attitudes, motives and demographic
characteristics. Quantitative research provides the marketer with responses that
can be presented with precise estimations. Qualitative research with open-ended or

in-depth, and unstructured responses reflects peoples thoughts and feelings on the
subject. The purpose of the research is to formulate and define problem or situation
more clearly and to determine relevant questions to be examined in subsequent
research. It is also used to stimulate ad message ideas and where interest centers
on gaining an understanding of a market.
Step 6: Preparing and presenting the report
Based on the results of analyzed data, the final report documenting the market
research should be prepared. The report should include description of the research
methodology, data gathering process overview as well as the results and
conclusions. Once all the research is collected, processed, and conclusions are
drawn; the Mayo Clinic marketing department can decide on the best strategy to
build awareness and, potentially, increase its international sales revenues.

3.2 Swiffer, higher, stronger, dearer.

Case Background
Covers the development of paid broadcasting rights for televised sports from
1948 until today.
The implication that sports immediacy and popularity has on the advertising
world.
The interaction of professional athletics institutions/associations and global
communications companies.
The complexity of the relationship between broadcasters, content providers
and advertisers including BBC, NBC, ESPN, Fox and others.
The positive and negative effects of that the money involved in the industry
has on sports, broadcasting rights and advertisements.
Recent change and initiatives that may impact on the future of televised sport
and advertising
various countries are mentioned throughout the case, with a specific focus on
America, United Kingdom and Australia.

Key Statistics
The top eight television programs in America are all sporting events

 Some 3 billion people watched part of the 2000 Olympiad.

The money that television has brought into professional sport has put some of
the top players among the worlds highest- paid entertainers
In America, estimates of total spending on sports rights by television
companies is about $20 billion a year
Key Statistics
Fox purchased the rights to a year of National Football League games for about
$4 billion.
Kirch, a German group spent $2.2 billion for the worlds biggest soccerbroadcasting rights: to show the finals of the World Cup in 2002 and 2006 outside
America.
For a 30-second slot during the Super Bowl, by most estimates networks are
now asking and getting around $3 million

Issues / Challenges
- The quality of immediacy- Sport also has a special quality that makes it unlike
almost any other sort of television program: immediacy.
- Television changing sport and vice versa-The combination of popularity and
immediacy has created a symbiotic relationship between sport and television in
which each is changing the other.
- Sport channels taking over screen time- The combination of popularity and
immediacy has created a symbiotic relationship between sport and television in
which each is changing the other.
- Inability for broadcasters to attain value for money-The problem is that the
value of sport to viewers (consumer surplus, as economists would put it) is
much larger than the value of most other sorts of programming.
- Charging viewers to watch sport-In the next few years, the main new outlet for
sports programs will be digital television.
- Losing track of whats important-The biggest beneficiaries of televised sport
have not been the clubs and bodies that run sports but the players

Recommendations
- Benefits of free-to-air televised sport

- Adapting television to suit sport

- Avoiding a potential marketing myopia
- Deterring illegal streaming and/or piracy
- Restricting the influence of government/politics
- Maximizing the value of sport
- Stopping televised sport becoming completely subscription based

3.3 Marketing on the bottom of the pyramid

1. In evaluating the potential of a BOP market segment there are certain factors that
need to be analyzed in order to develop a marketing strategy. The following will be
used as a guideline to establish possibility and viability of marketing to the BOP.
Market opportunity
Being the poor sector of the pyramid is there a marketing opportunity? Will people
who struggle to survive buy convince goods? In analyzing the market opportunity of
the BOP, as the case suggest with major markets being more competitive and
profits margins per supplier reducing, organizations are now uncovering the
potential of tapping the BOP. The BOP is a group that consists of over 4 billion
people, that accounts for of worlds population. Given the size of the market,
profitability is obtained by volume of sale rather than an individual sale.
Consumer behavior
Having an understanding of the consumers in BOP can help organization enter this
market. With earning less than $2 a day the average persons perception is a earn
today, spend today attitude. Marketing to the BOP is not easy; its not making low
quality but affordable products, but catering to their specific needs which may
require having advance technology to facilitate the product affordability.
Marketing Mix
Would there be a difference in the marketing mix when targeting BOP? What needs
to be considered?
* Product
In designing the product, one needs to understand that more emphasis is to be paid
on the functionality rather than the form of the product. As sighted in the case study
in marking mobile phones to the BOP, functionalities such as long battery life,
affordability and extra volume for noisy environment is valued more than the fancy
way it looks. Attracting the BOP markets require the products to be in smaller units
which will facilitate affordability. For example even in Sri Lanka products such as
Sunsilk shampoo, Nescafe mix, Rinso washing power, Kist tomato sauce is sold in
sachets which makes it affordable.

Approaching the market in this way brings the product into the consideration set of
the poor for the first time - even if they only buy the sachet once a month,
collectively these purchases can result in a substantial volume of product sale. The
infrastructure at the bottom of the pyramid is often poor and products may need to
be adapted to withstand shortcomings such as fluctuating voltage, impure and
intermittent water and movement over unsealed roads or tracks.

* Pricing
The technique in price at the BOP segment is to have low margins and high
volumes. Special consideration needs to be made to the purchasing power of the
segment. There are various ways of overcoming the pricing issue in a BOP market
as the case suggest,
Installment payments Singar had adopted this method, where instead of selling a
sewing machine at the price of $100 it was sold at an installment plan for $5 p.m.
Another example is at Hoy payments to purchase r/m to expand homes were sold at
$11.50 p.w. at the end of the year given the volume of participants they made a
profit of $1.5 million.
Another example is where Hindustan Lever, among the first MNC's to realize the
potential of India's rural market, has launched a variant of its largest selling soap
brand, Lifebuoy at Rs.2 for 50 gm. Coca-Cola has addressed the affordability issue
by introducing the returnable 200-ml glass bottle priced at Rs.5. The initiative has
led to 80% of new drinkers for coke coming from the rural markets.
Earn and purchase as you work engaging the customers to work and having the
products sold at a discount.
* Distribution
Given the poor state of roads, it is an even greater challenge to regularly reach
products to the village. Reaching the BOP is not always easy a company needs to
find low distribution methods to get the products across to this segment. For
example India's largest MNC, Hindustan Lever, has built a strong distribution system
which helps its brands reach the interiors of the rural market. To service remote
village bullock-carts and even boats are used. Coca-Cola, which considers rural India
as a future growth driver, has evolved a hub and spoke distribution model to reach
the villages. LG Electronics defines all cities and towns other than the seven metro
cities as rural and semi-urban market. As the case suggest employing women from
the BOP can be employed to act as a distributor which is more effective low cost
means of getting the products to those who need.

* Promotion
Since large parts of BOP markets are not accessible to conventional advertising
media, building awareness is another challenge. For example Hindustan Lever relies
heavily on its own company-organized media. Godrej Consumer Products, which is
trying to push its soap brands into the interior areas, uses Radio to reach the local
people in their language. Coca-Cola uses a combination of TV, Cinema and Radio to
reach rural households. LG Electronics uses vans and road shows to reach rural
customers. Philips India uses wall writing and Radio advertising to drive its growth in
rural areas. (Flercher, 2005)

Implications for international marketers

The BOP segment will require a deep understanding of the local environment and
involve a bottom-up approach resulting from identifying and shoring up the
existing social infrastructure. Strategies need to be culturally sensitive and
relationship based. Such as:
* Creation of a unique approach tailored to the local market that is both culturally
sensitive and economically feasible.
* Identify the real needs of the consumer and product adaptation to meet these
needs in a way that creates opportunity for local participation;
* Development of ways to overcome the infrastructure problems faced by BOP
consumers.
* Detailed research into the BOP market as to their specific needs and
characteristics.
* Try to utilize BOP segment in the distribution and promotion.

2. In the past the role of a marketer was to anticipate and identify customer needs.
However given the complexities and the increase global competition in todays
context, marketers now also find themselves creating a need in the market.
Marketing to the BOP is an example for the latter.

The BOP consists of the poorest population with low levels of disposable income.
One would expect it to be spent on necessities. However companies now are
creating a need amongst the bottom of the pyramid for convenience and shopping
goods. For instance due to the high price of a lap top or even a bottle of shampoo,
the lower end will not even consider this product as a need. By making it affordable
through installment payments the products are now attractive and even considered
due to the affordability factor. Companies also use smaller units to overcome
affordability factor. These tactics creates a demand within BOP segment for those
products not even considered before.
Is it exploitation for company to make profits from the population at the bottom of
the line? As a business entity profits is one of the main concerns however marketing
to the bottom of the pyramid also has a social responsibility attached to it. Although
they have little disposable income considering their purchasing power, alterations
are done to make the product affordable as explained above. Profitability therefore
is not made by selling to an individual in the BOP segment; the company can
actually make losses considering a single transaction. However profit is earned from
the volume of the purchase and the size of the BOP collectively. Rather than
exploiting the poor its merely raising their standard of living through and through
the volume the company in turn earns a profit creating a win win situation. Through
marketing to the BOP
* Making products such as toiletries improve hygiene and wellbeing.
* By selling computers. Sewing machines, it gives a chance to improve their skills
and ability which will they can benefit
* By having loans and employment catered to the BOP can stimulate economic
growth
Just because there are called bottom of the pyramid they should not be expected to
stagnate as the same level, in a global attempt to irradiate poverty marketing to the
BOP is the start.

3.4: Continued Growth for Zara and Inditex

1. What are the ways that Inditex ensures that fast fashion is truly fast?
Inditex ensures that its fashion is fast through its supply chain efforts. They have
created new methods to enable store managers to order and display merchandise
faster and added cargo routes for shipping goods. The company ships clothing
straight from the factory to stores and makes two-thirds of its goods in Spain and
nearby countries, compared to most competitors who manufacture most of their
clothing in Asia. Inditex has their sales managers monitoring computers, which are

reporting sales at every store around the world. When a garment does well or fails,
they are able to quickly tell designers if they need to come up with new ideas. They
also have generated in house store fronts where they develop new marketing
promotions every two weeks.
2. What are the important attributes of a fast fashion retailer to
customers? To store managers?
Retailer to costumer:
Give new product fast to shops;
Stocked stores with new designs twice a week;
Ship clothes straight from the factory to stores to improve product
availability;
The important fast fashion attributes to the customer is that the retailer is
providing the latest fashion to them as soon as it comes out. They want to make
sure that they are getting the latest trends first and that they are not buying out
dated clothing. It is also important to the customer that the retailer has what they
are looking for when they come. They do not want the retailer to be out of stock
every time they come in. If they are out of stock, the attribute of having their
suppliers close to the retailers means that they would be able to re-stock their
merchandise fairly quick.
Retailer to store managers:
Have information about rate of sale of new collection as fast as possible;
New collection has labels in time of arrival (to make fast identification and
hang on store) ;
Store managers use hand-held computers that show how garments rank by
sale, so clerks can re-order bestsellers in less than an hour.
3. Why would a retailer introduce their online store country-by country?
Why Inditex slow to embrace online sales when it was is so tech-savvy in
other ways?
There is a number of reasons why a company might chose to stay away from a
certain type of marketing. Some of the primary reason could include the companys
business model, its core competencies, or even the exclusivity factor. The company
might have attempted to stay away from internet sales as its main selling
population was within larger cities, and majority of its marketing structure was
based on in store sales. As prominent as information technology is today, not all
merchandise is best advertised online. It seems that in this particular case, the
companys core marketing was based around its in-store merchandise that was
always updated. The companys late entry into the online market could have been
for the simple reason of it focusing on its core competencies.
Launching its online store on country-by-country basis could be a wise idea from the
stand point of market analysis. A number of questions come to mind when
operating an online retail. Some of this include: where will the merchandise be
shipped from, what will be the primary online strategy in terms of fashion, what
would be the cheapest way to produce merchandise sold online, and may other

logistical problems. Launching its online business country-by-country would allow

the company to get some bearing on the new business venture that is outside of the
companys core business model. I dont necessarily believe that the companys
decision to wait on its online business was necessarily related to their inability to
deal with the technology associated with online stores. The companys business is
based on some degree of exclusivity, and having online stores could possibly
damage that image.
4. Describe five opportunities for continued growth during the next five
years for Zaras parent, Inditex, SA.

Launch stores in the Americas along with establishing new distribution

centers. The same as with China and Russia.
Focus on online expansion.
Expand aggressively into international markets.
Continue to find creative ways to keep the stores looks fresh.
The fifth and final opportunity would be to continue exploring alternative
markets

5. Pick one of the five opportunities and outline the advantages and
disadvantages of pursuing it?
The opportunity I would like to discuss is continuing growth in the American market.
The primary advantages to investing in the American market segment are the
financial and overall structural wealth of the country. The United States is a huge
market for many fashion firms, and with todays technological advance, the
American market is expanding very quickly. Although the company already has a
number of stores in major cities, the company should pursue opening up stores in
smaller communities. By no means anything rural, but cities such as Cleveland,
although not the fashion such as New York, could still facilitate good business.
The primary negatives to entering American market are naturally the competition
and logistics. The American market is well developed and rather saturated with
already established retail chains such as GAP. Market entry and promotion could be
expensive. Another factor to take into consideration when entering American
market is logistics. The primary manufacturing hub for the company is located in
Western Europe, thus shipping could take a big toll on the profit margin. Although
the company does currently offset this costs by raising the prices on its products,
this ultimately will hinder the firms ability to compete with local retailer who are not
burdened by the logistical expenses.