BAS 282: Global Marketing: Homework
Marketing a new energy drink featuring Portuguese-speaking soccer players as endorsers
Brazil
Advertising that all products sold are made in the home country since citizens of this country have very high levels of consumer ethnocentrism
China
In some countries in the Middle East, anti-American sentiment leads people to boycott U.S.-made products.
Consumer Ethnocentrism
In the United States, WeatherTech sells car mats that it proudly advertises as "made in the USA" to capture a common consumer sentiment that products made abroad are of lesser quality.
Consumer Ethnocentrism
Many people in the United Kingdom will not purchase produce grown in the United States that have been genetically modified because they are devoted to buying only non-GMO (that is, non-genetically modified) fruits and vegetables.
Consumer Ethnocentrism
Dunkin Donuts sells the Grapefruit Coolata in South Korea, mango chocolate donuts in Lebanon, and "Dunclairs" in Russia.
Cultural Fit
In India, where the cuisine is generally spicy, Domino's sells a pizza called the "Peppy Paneer." It is topped with crispy capsicum (a tropical pepper plant) and spicy red pepper.
Cultural Fit
To appeal to the consumer market in China, Pampers changed the name of its diapers to mean "help-baby-[be] comfortable"—a product feature considered valuable to Chinese parents.
Cultural Fit
The Chinese government is often accused of undervaluing the yuan or renminbi, keeping its value low with respect to the dollar.
Currency Fluctuation
Zimbabwe once had such a high inflation rate that Zimbabwean $1 million bills were used as toilet paper. Because Zimbabwe's money was worth nothing, very few countries were willing to trade with Zimbabwe.
Currency Fluctuation
Selling your products to an expanding middle class of consumers in Guatemala.
DR-CAFTA
The members of this arrangement include Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua.
Dominican Republic-Central America Free Trade Agreement
This is the second-largest Latin American market for U.S. producers, just behind Mexico.
Dominican Republic-Central America Free Trade Agreement
Allowing manufacturing plant in Spain to quickly reduce barriers in its efforts to market and sell products in France.
European Union
As a result of a referendum in 2016, the United Kingdom chose to leave this organization.
European Union
The members of this economic, political, and monetary arrangement include Greece, Spain, Portugal, and Italy.
European Union
In 2004, one euro was worth about $1.32 US dollars, but today it is worth about $1.11 US dollars.
Exchange Rate
The Mexican peso is usually worth about 5 U.S. cents, but recent changes in Mexico's economy have made the peso worth about 8 U.S. cents.
Exchange Rate
France has very strict regulations regarding agricultural products that enter its borders.
Global Challenge
France is a member of the European Union, a group of more than 25 countries in Europe that seek to achieve economic integration.
Global Challenge
Shipping products overseas is much more expensive than shipping products within the continental United States.
Global Challenge
The exchange rate between the U.S. dollar and the euro (France's unit of currency) fluctuates on a daily basis.
Global Challenge
In 2002, China's middle class comprised 4 percent of the Chinese population. By 2012, the middle class comprised 31 percent of the population, meaning that more of the population were able to buy more goods and services.
Income Distribution
It is estimated that the top 20 percent of Americans own 86 percent of the country's wealth, and the bottom 80 percent of Americans own 14 percent of the country's wealth.
Income Distribution
Marketing chicken-based products since religious customs in many parts of this country forbid the eating of beef
India
Problems selling to Japanese consumers due to the instability of the exchange rate between American and Japanese currencies.
International Monetary Fund
This organization hoped to stabilize the world economic system after World War II.
International Monetary Fund
This organization works to foster international monetary cooperation, secure financial stability, facilitate international trade, and reduce poverty around the world.
International Monetary Fund
The case indicates that the Chinese perceive the purchase and ownership of Western luxury goods as symbolic of affluent status. How could Starbucks benefit from this knowledge?
It can expand its presence in Beijing, where luxury sales are highest.
In the United States, approximately 4 percent of the workforce is currently unemployed. (That is, the U.S. unemployment rate is about 4 percent.)
Local Challenge
The U.S. inflation rate in recent years has hovered around 2 percent per year.
Local Challenge
The state in which the company is located has just announced an increase in the corporate profits tax.
Local Challenge
The town in which the company's warehouse is located will not give the company a permit to increase the size of the warehouse.
Local Challenge
Increasing the number of products your company exports from the United States to Canada without tariffs that could hurt profits.
NAFTA
This arrangement among the United States, Canada, and Mexico was established to eliminate barriers to trade and investment.
North American Free Trade Agreement
This arrangement has greatly benefited U.S. farmers.
North American Free Trade Agreement
In the United States, where many people own cars, supermarkets can be gigantic. Shoppers can buy everything they want in one trip to the supermarket, and they then transport their groceries home in their car. In contrast, in many European countries, supermarkets are quite small, reflecting the fact that people either walk or take the bus in order to do their grocery shopping.
Place
In 2018, the United States imposed a tax on solar panels and washing machines manufactured outside of the United States, thereby giving U.S. manufacturers of these products an advantage in the marketplace.
Price
In the United States, Coca-Cola sells a product called "Diet Coke." In many European countries, a similar beverage is sold as "Coca-Cola Light."
Product
To raise and maintain its visibility in the United Kingdom, Nike (the producer of athletic apparel) has sponsored the Manchester United football (soccer) team, which is extremely popular throughout the UK.
Promotion
Developing a nonalcoholic beverage for young adults since the sale of alcohol is forbidden in this country
Saudi Arabia
Selling video-streaming technology because the majority of this country's residents have televisions with video-streaming capability
United States
Resolving an issue that involves rules of trade that are impacting your business as you try to increase distribution to several markets in Africa.
World Trade Organization
This global agreement is headquartered in Geneva, Switzerland, and represents more than 97 percent of the world's population.
World Trade Organization
This global agreement regulates trade among participating countries and helps importers and exporters conduct their business.
World Trade Organization
5 Bucks prefers to maintain greater control afforded by __________ and is willing to take on greater financial risk to continue its global expansion into India.
a joint venture
Traditional culture in China emphasizes the drinking of tea, not coffee. To appeal to this tea-drinking segment of the market, Starbucks could choose to
adapt the product menu to include more tea-based beverages.
If Joe to Go decides to produce its coffee beans domestically and sell them in India through a retail intermediary, this would be an example of
exporting.
One of the advantages of __________ as a global market expansion strategy for 5 Bucks would be a better understanding of local market conditions, and a local partner that shares risk.
joint venture
If Joe to Go is willing to accept royalties or fees for the use of its coffee trademark and patents, it would be considering which strategy for international growth?
licensing
Demand for international products is one of the reasons that companies turn to global marketing. Among which population group would demand for Starbucks coffee be the greatest?
millennials
China is now the second largest market for Starbucks after the United States. What factor made this possible?
the fact that China's population is more than four times greater than that of the United States