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Marketing 420 and 720: Global Marketing Strategy

University of Wisconsin – Madison


Spring 2006

Professor: Nancy R. Buchan, Ph.D.


Office: 3104 Grainger Hall
Office Hours: T/R 10:45–11:45 or by appointment
Office Phone: 263-7720
Home Phone: 920-992-3555
E-mail: nbuchan@bus.wisc.edu

Course Description & Objectives:


The objective of this course is to provide you with a method for analyzing world markets and their respective
consumers and environments, and to equip you with the tools needed to develop marketing strategies for an
ever-changing global market. We will accomplish this objective through lecture and discussion of relevant
concepts, readings from the business press, case analyses of actual global marketing issues, and through an in-
depth group research project resulting in a market entry strategy into the foreign country of your choice.

Upon successful completion of this course, you should have developed the following global competencies:

(1) Environmental Competence – an understanding of the key environmental and cultural differences
across global markets
(2) Analytic Competence - an understanding of how these environmental and cultural factors influence
marketing decisions (i.e. which products and marketing strategies to pursue in which markets)
(3) Strategic Competence – the ability to develop global strategies designed to define the long term
interests of the firm
(4) Functional Competence – the ability to implement the marketing mix across countries
(5) Managerial Competence – an understanding of the planning, personnel and corporate organizational
structure necessary to implement a successful global strategy

Method of Instruction:
My teaching philosophy is that learning is best done actively, not passively. It is something that you do, not
something that is done to you. For my part, instruction in the course will rely primarily on discussion, lectures,
readings and cases, with some videos and guest speakers thrown in to keep things lively. But the learning that
occurs – what you eventually take away from the course – is a function of what you put into the course. Active
involvement through participation in case and lecture discussions is essential for you and your classmates, to
derive maximum benefit from this course. My goal in this course is to challenge you to learn as much as you
possibly can about the global marketing environment.

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Course Materials:
(1) Text: Curry, Jeffrey Edmund “A Short Course in International Marketing: Approaching and
Penetrating the International Marketplace,” World Trade Press, 2001.
(2) Paperback Book: Friedman, Thomas L. , The Lexus and the Olive Tree, Anchor Books, 2000.
(3) Course packet of articles and other materials (available from Grainger Hall copy center, 1st Floor)

Course Requirements and Grading:


Grades will be determined by the following criteria.

(1) Class Participation 20%

(2) 2 Case Write-Ups (3 pages each max., Dbl. space, 12 pt font, 1” margins) 25%
- Completed in groups or individually, your choice

(3) 5-Minute Country Report 15%

(4) Global Marketing Project 30%


- Completed in groups

(5) Cumulative Country Exam 10%


- Completed individually

Extra Credit: Discussion questions (see description below)

(1) Class Participation: Your participation grade reflects the extent to which you are actively involved during
class. What is of value here is not the quantity of your participation, but the quality of your input. By quality, I
specifically mean:

• Fit: Relates to the discussion at hand and the group’s current focus; demonstrates the ability to
synthesize one’s analysis with that of others, also demonstrates evidence of class preparation.
• Depth: Demonstrates rigorous qualitative and/or quantitative analysis. Involves level of insight,
accuracy, and usefulness. (Simply a restatement of the facts from the case or article will not do –
synthesis of the facts into insight for action is the key).
• Reach: Drives the discussion forward toward a greater understanding or a solution to the problem
• Conciseness: Uses the group’s time effectively
• Presentation: Confident, convincing, and courteous delivery

Although this is not an attendance grade, obviously, if you are not present on a given day, you will be unable to
participate. Past experience clearly shows that to achieve high marks in the course one must come prepared for
class, and made consistent and regular quality contributions to discussion.

(2) Case Write-ups: You are required to hand in 2 three-page case write-ups during the semester. Cases are
due at the beginning of the class period during which the case will be presented. Hard copies only are
acceptable; electronic versions of analyses are not. Absolutely no late cases will be accepted for any reason.

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Your write-up will be graded on the quality of your analysis and of your recommendations. You are required to
do one case from List A and one case from List B.

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List A (cases which are more broad in scope) List B (cases which focus more specifically
Robert Krups GMBH on a given aspect of strategy)
Nippon Vicks K.K. Microsoft Corporation
Food Distribution in Russia Interactive Computer Systems Corp.
SADAFCO Planet Reebok

Questions to be considered when writing up each case are provided at the end of this syllabus. Formatting
requirements: 3 pages maximum, double spaced, 12 point font, 1 inch margins all around.

Forming groups to discuss the cases is highly recommended. You are allowed to hand in the case as a group, or
if you prefer, you may hand in individual cases. The choice is yours – depending on your own working style.
There is no difference in the manner in which I will grade a group or individual case.

Cases are graded on a 1 to 10 scale. A score of 1 represents absolutely no effort, 10 represents a superior
analysis with every important question in the case fully covered. The average case grade is approximately a 6.5
or 7; a score 9.0 or above on a case means that you are doing extremely well, a score of 5 or below means that
you need serious improvement in your skills. Further information that may be of assistance in analyzing and
writing up the cases will be distributed in class on Tuesday, January 24th.

Please note: Even if you do not do a write-up for a given case, you are still expected to address the
questions in the case during class discussion. Cold-calling will be an option to keep the discussion moving
along.

Also note: It is expected that you will present quantitative analyses in the case write-ups when appropriate, to
support your arguments. For example, if you are discussing the potential profitability of a project, you are
expected to show a break-even analysis. If you feel that you need assistance in performing quantitative
analyses such as break-evens, a very helpful Harvard Business Note entitled “Marketing Math” is on reserve in
the business library.

(3) 5 Minute Country Report: Each student will present a 5-minute (maximum) in-class country analysis. This
analysis will consist of an analysis of important environmental data in that country: population, GNP, major
exports, imports, historical and cultural characteristics, etc. and will also provide the outlook for marketers in
that country. ie. In what stage of development is the country? What is the structure of competition in the
market? What do consumers seek? What are the trends? What are the hot prospects for a foreign company
entering that country? What are things for marketers to watch out for (possible risk factors or cultural pitfalls,
etc.)? Finally, the presenters of the report should teach the class some helpful phrases for the business traveler
in that country. (A sample country report is provided in the course reading packet).

It is expected that the authors of the report will be experts on the country and fully up to date on current
conditions which may be of interest to marketers (e.g. changes in political leadership, economic crises, etc.).
Consultation with news reports from the past year regarding your country is highly recommended. These
sources (WSJ, NY Times, Business Week, Economist, etc. or local sources in that country) may be found in
LEXIS NEXIS in the library.

The most informative reports are those in which the presenters are able to synthesize the information given into
useful insight. The least informative, least interesting (and lowest scored) reports are those in which the
presenters simply read the information listed on their overhead slide.

Each presenter is to prepare an overhead slide of their report and a hard copy of the report for each student in
the class. If you send a copy of your report to me via an e-mail attachment no later than 2pm the weekday
before the report is due, I will be happy to make the overhead slide (in color if needed) of your presentation.

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(4) Global Marketing Project: “The Country Notebook” This is really your chance to demonstrate what you’ve
learned in the course and what you can do with it. The project is designed to enhance your understanding of
course concepts, and requires you to apply them in developing a marketing strategy for the foreign country of
your choice. Broadly, the project consists of two parts; (1) a detailed and comprehensive analysis of the
marketing environment (e.g. the cultural, economic, political, and legal forces) in a particular country, and (2) a
well-reasoned marketing plan for entering that country with a particular product/brand considering the existing
competition.

The project will be conducted by groups of 4-6 students, and is an ongoing assignment throughout the semester.
At the end of the semester each group will submit a written project report, and will give a 12-minute
presentation during class. Detailed information concerning the objectives, expectations, and guidelines for the
project are given in “The Country Notebook” included in your reading packet, and further instructions will be
distributed and discussed in class on Tuesday, January 24th. Meanwhile you may want to begin thinking about
possible group members and the country and product you would like to study. Additionally, given that a
requirement for the project is a minimum of 2 interviews with natives from your chosen country, you should
begin to search out possible interviewees.

(5) Cumulative Country Exam: It is crucial that global marketers and managers have a comprehensive
knowledge of the world at their fingertips, and this exam (or the preparation for it) is intended to begin
equipping you with that knowledge. The exam will cover approximately 25 countries (the actual number will
be determined by enrollment) – these countries represent the United States’ largest trading partners and the
fastest growing global markets.

Part I of this exam will be given on Tuesday, February 28th and will count for 20% of the total exam score.
Part I will contain the following information:
Geography – identification of the location of the country on a world map
Country Capital
Head of Government

Part II of the exam, counting for 80% of the total exam score, will be administered the final day of class, or if a
student so chooses, they may take the exam during the regularly scheduled exam time; Tuesday, May 9th at
2:45. Part II will contain all information from Part I as well as:
Population
Per Capita Income
Cultural Characteristics
- High, Moderate, or Low Context
- Collectivist or Individualist

Extra Credit: You are strongly encouraged to submit questions to stimulate discussion on those days in which
class time will be largely devoted to discussion of assigned readings. The questions may regard something that is
unclear in the readings, or more likely will pertain to something in the readings that was thought provoking to
you, and which you think may spark some debate/discussion among others. Any questions submitted will count
toward extra credit in your participation grade. Questions should be submitted to me electronically by 2pm the
day before class. The classes for which this option is available are: 1/26, 2/9; 2/21; 3/7; 4/4.

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Global Marketing 420 and 720, Spring 2006
COURSE SCHEDULE

Session Date Topic Assignment

1 Tues. Course Introduction “The 21st Century Corporation”


Jan. 17 Syllabus Overview “The Chinese Century”

2 Thurs. Video and Discussion: Benetton “The Globalization of Markets”


Jan. 19 “The Myth of Globalization”

3 Tues. Information on Cases Analyses “Looking Ahead at the Marketplace”


Jan. 24 Global Marketing Project “Distance Still Matters”

Guest speaker on sources of Thoroughly read and understand “The Country Notebook”
information for global
marketing project - Pick Project Country
(Begin locating natives from that country to interview regarding
potential product/service – interviews should occur within
the next few weeks).

4 Thurs. The Global Environment Curry: Chapter 5


Jan. 26 Political and Legal Forces “Authority Figures”
“Indonesia’s Guerrilla War Puts Exxon Under Siege”
“Commentary: A Food Fight the US is Sure to Lose”
“Arts Abroad…”
“Drink Politics”
“Beijing’s Phony War on Fakes”

5 Tues. Cultural and Social Forces Curry: Chapter 6


Jan. 31 “Key Concepts: Underlying Structures of Culture”
“Crossing Cultures: Table Manners”
Deadline: Global Project group members and country finalized

6 Thurs. Case Discussion Case: Nestle – The Infant Formula Incident (not for write-up)
Feb. 2 “The Price of Lobster Thermidor”
“Hypocrisy Surrounds Bribery Issue”

7 Tues. Guest Presentation Professor Emeritus David Schrieber


Feb. 7 Topic: An Environmental Scan The Management Institute
of Indonesia, East Asia, and
Eastern Europe

8 Thurs. Globalization The Lexus and the Olive Tree (Parts One and Two – through page
Feb. 9 326)
“Globalism’s Discontents”

9 Tues. Global Marketing Project “Prep To be used as work time for projects. Look ahead to all future details
Feb. 14 Day” of project and information that will be necessary. Contact relevant
sources.

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10 Thurs.
Feb. 16

11 Tues International and Global Michael Alioto


Feb. 21 Marketing Research Vice President, International Research, RDA Associates

Guest Presentation Curry: Chapter 8


“1.3 Billion Potentially Satisfied Customers”
“Volkswagon Shifts Gears in China

Schedule meeting for 2/28 with Prof. Buchan to discuss group


project progress.

12 Thurs Global Markets and Buyers “The End of Corporate Imperialism”


Feb. 23 “Smart Globalization”
“An American Coffee House (or 4) in Vienna”
“Winning the Indian Consumer”
“Understanding the Chinese Consumer”
“Hewlett Packard”

Deadline: Global Project product list finalized. One page


progress report for each group. (Include a description of
interviews).

Cumulative Country Exam 3 Alternate Exam Times Available (Choose one):


Part I Tues. Feb 28: 9:00 am 1195 Grainger
Tues. Feb 28: 5:30 pm Location TBA
Thurs. March 2: 12:25 pm Location TBA

13 Tues. Case Discussion Case: Robert Krups GMBH & CO. KG: Brand Transfer into East
Feb. 28 Germany

Group Project Progress Curry: Chapter 9 – You will refer back to this chapter throughout the
Meetings next several weeks

14 Thurs Case Discussion Case: Nippon Vicks, K.K.


March 2

15 Tues International and Global Product Curry: Chapter 7


March 7 Strategies “Pillsbury Presses Flour Power in India”
Video: Colgate-Palmolive, Use “Seeking New Markets for Tampons… Mexico”
of Video in Mexico “Coke: I’d Like to Buy the World….”
“Out From Under: Saudi Women Sold on Lingerie”
“Romancing the Globe”

16 Thurs. International and Global Product Case: Microsoft Corporation


March 9 and Service
Strategies

Case Discussion

17 Tues. Pricing for International and Case: Interactive Computer Systems Corp

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March Global Markets
21 “Sticker Shock in Euro Land”
Case Discussion “No Fear of Euro in Grey Market”

18 Thurs Global Market Entry Strategies “Pluralism Under the Golden Arches”
March Video: McDonalds in Moscow “McAtlas Shrugged”
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19 Tues. Managing International Mr. George Seyk


March Channels Vice President of International Marketing and Sales, Littelfuse, Inc.
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Guest Presentation “Seven Rules of International Distribution”

20 Thurs. Managing International Case: Food Distribution in Russia: The Harris Group and the Lux
March Channels Store
30
Case Discussion “In Russia, Capitalism of a Certain Size”
“As Japan Deregulates, Quality of Life Laments”

21 Tues. International and Global “The Lure of Global Branding”


April 4 Promotion, Advertising and “Brand Building in Emerging Markets”
Branding Strategies “Coke’s Crisis”
“Japan’s Snow Brand Milk Maker Says Sorry…”
“San Miguel’s Split Image”
“Fuel and Freebies”
“Brands in an Age of Anti-Americanism”

22 Thurs. Managing International Brands Case: Planet Reebok


April 6
Case Discussion

23 Tues. Marketing in Emerging Markets Case: SADAFCO


April 11
Case Discussion “Competing with Giants” (You will draw on this article when
formulating your strategy for SADAFCO).

24 Thurs. Marketing in Global Markets Video (in class) case: Rubbermaid


April 13
Case Discussion

25 Tues. Conducting International Mr. Richard R. Gesteland


April 18 Negotiations President Global Management, LLC

Guest Presentation “The Silent Language of Overseas Business”

26 Thurs. Global Marketing Project “Prep To be used as preparation time for projects and oral presentations.
April 20 Day”

27 Tues. Oral Presentation of Global


April 25 Marketing Projects

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28 Thurs. Oral Presentation of Global
April 27 Marketing Projects

29 Tues. Oral Presentation of Global


May 2 Marketing Projects

30 Thurs. Wrap-up and Final Exam Deadline: Country Notebooks due at the beginning of class
May 4
Cumulative Country Exam

Note: If students so choose, they may take the exam at the


regularly scheduled exam time: Tuesday, May 9th at 2:45 pm.
However, regardless of which time the exam is taken, ALL
students are expected to be in class on Thursday, May 4th for the
wrap-up discussion.

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Marketing 420 and 720 Case Questions

Case: Nestle – The Infant Formula Incident


1. What is the problem?
2. What environmental factors did Nestle overlook in it’s strategy to market infant formula to developing
countries?
3. How did Nestle promote their product? What was the effect?
4. Was Nestle at fault? Who is to blame?

Case: Robert Krups GMBH & Co. KG: Brand Transfer into East Germany
1. What strategic alternatives face Krups as they prepare to enter East Germany?
2. Analyze Krups performance to date (sales volume, market share, brand image, etc). What has been their
marketing strategy? What is your assessment of their present situation. What have been the keys to Krups’
success?
3. How does the typical consumer decide to buy a small appliance?
4. How does Krup’s distribution strategy play into its overall marketing strategy?
5. Analyze the East German consumer. What marketing strategies are most likely to be effective in reaching
him/her?
Note: For #5 you will want to refer to the lecture on global markets and buyers (Tuesday, Feb. 22nd), in addition to
information from the case.

Case: Nippon Vicks, K.K.


1. Analyze Clearasil’s performance to date (unit volume, sales volume, market share, etc.). What is your
assessment of the present situation?
2. What can we learn from observing existing market trends, customer habits, and overall market dynamics in
the skin care segment?
3. How has the competitive situation changed since the introduction of Clearasil?
4. In your opinion, what were the cause(s) of Clearasil’s decline? To what extent was advertising the cause, or
were there other factors that contributed to the product’s decline?
5. What do you think of the line’s extension into the soap/wash segment of the skin care industry?
6. What opinions exist to re-launch the Clearasil business in Japan? What specific actions would you
recommend (advertising, production line, distribution, etc.)?

Case: Microsoft Corporation: The Introduction of Microsoft Works


What are the main issues in this case? (What should we say to the country managers?)
1. How should we segment the market? Why? Will any of these segmentation strategies apply globally?
2. Given your views on the proper segmentation strategy, what is your recommended positioning for
Works?
3. Who are the key decision-makers for each element of Microsoft Works’ marketing strategy? Does the
process seem to be effective?
4. What is your recommendation for Microsoft?

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Case: Interactive Computer Systems Corp
1. What is the nature of this problem? Look at it from a European, an American, and a corporate point of
view.
2. What is the impact of the present situation on the company?
3. As Peter Mark, how would you settle this issue? How would you explain your decision from both a
European and American point of view?
4. To what extent did the ICS pricing policy contribute to this disagreement on the Model 2000?
5. What changes would you make in future ICS pricing policy?

Case: Food Distribution in Russia: The Harris Group and the LUX Store
1. Contrast the state of retailing in Russia with that in the United States.
2. Analyze the operations of the LUX store. Is LUX a successful operation? (How are you measuring
success?)
3. What measures could you take in the short term to improve the store’s operations?
4. What options are available to Harris? What are the advantages/disadvantages of each? What should he do?

Case: Planet Reebok


1. Does Reebok need a global umbrella campaign?
2. If Reebok does need an umbrella campaign, is the Planet Reebok concept appropriate?
3. Does Planet Reebok differentiate Reebok from Nike?
4. Will Planet Reebok be successful in Europe?

Case: SADFCO
The strategies discussed in “Competing with Giants” will serve as a guide when determining what you believe
to be the appropriate strategy for SADAFCO.

1. What are the strengths and weaknesses of SADAFCO?


2. At what stage of development is the Saudi Arabian ice cream market? How will the entry of the
multinationals influence the development of the market?
3. What should be SADAFCO’s response to the intensified competition in the ice cream market? Can it
survive in the face of this well-funded challenge to its position?

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