Tag: 2018#3

Wetzel’s Pretzels announced that it will soon be offering its iconic and special scratch-made pretzels, Bitz, Wetzel Dogs, and lemonade in China. Wetzel’s Pretzels will be focusing on its growth mostly in Shanghai, Beijing, and then South China.

 

Due to China having high-traffic venues and a growing middle class with passion and interest for foreign brands, Wetzel’s Pretzels seems to believe China is in need for this new fresh product. “Wetzel’s Pretzels provides a fresh product that I believe will be appreciated and embraced by the local community,” said Will Zhu, Wetzel’s Pretzels expansion leader. “Additionally, the brand’s operations are simple and streamlined, enabling our team to provide the fantastic experience to our guests which Wetzel’s has become synonymous with.”

 

Is this a good idea? Well it could be good if it works, but very bad if it fails. There are many things to consider in the strategy of the company. Things to be considered include the reasons to go global and homework needed to be done before deciding to officially go global. Why go global? What should be looked at when considering going global?

 

Reasons to go global:

1. Diversify your consumer base and your market
2. Prolong the sales life of the products currently being sold
3. Reduce the dependence the company has in its current market if taking globalization in a large level
4. Consider the fluctuations between seasons
5. Learn to compete the business and grow the business

 

When considering going global, homework needs to be done. Questions needed to be asked are questions such as:

• Are people interested in your product?
• Do people want to buy your product?
• Are there cultural differences between your current market and future market?
• Are you targeting the right crowd?
• Will this new adventure lead to increasing sales?

 

One of the things that Wetzel’s Pretzels did to take a look at their target market was do surveys of their consumer types. They surveyed to see their gender, ethnicity, age, and reason for buying from Wetzel’s Pretzels. When this was done, Wetzel’s Pretzels looked at this data and made their decision from there. Along with this, Wetzel’s Pretzels plans to keep its signature offerings while adding custom offerings in order to satisfy the local flavor of consumers in that area. They have chosen to do some research and development and see what types of tastes the Chinese like, in China overall and in each specific city in China as well.

Is this enough? Due to sales being high by the end of 2017, does that make it a good idea to expand globally?

 

References:

https://globenewswire.com/news-release/2018/04/27/1489297/0/en/Wetzel-s-Pretzels-Announces-International-Expansion-Across-China.html

https://missouribusiness.net/article/reasons-to-go-global/

 

 

 

The World Wrestling Entertainment, known for professional wrestling, has been pleasuring and entertaining audiences across the United States for decades. It’s one of the most popular and most lucrative entertainment sport companies across the United States. Even though the WWE shows are not legitimate contests, it’s purely entertainment based that is scripted, storyline based, and choreographed. It still captivated audiences when their favorite wrestlers battle head to head for title matches.

The WWE dominated their domestic market but for years they were itching at the fact of expanding globally and how their marketing tactics would support their move. The WWE posted about $800 million in revenue which was the highest recorded revenue in the franchise’s history. Their video and TV views reached 20 billion viewers and subscribers. Also, WWE beat our Marvel and Star Wars for the top selling action figure property (toys) in the United States. With all this being said, their brand recognition is bound to expand globally and touch base on the international market.

Attempts of expanding internationally have been in the works for the WWE. The WWE shows and their streaming platform for the WWE network reaches more than 180 countries. In order to build and cultivate a thriving fanbase, you must predict what the audiences needs and wants. The vison has to be accurate. The WWE Co-President explained how there are limits to expanding globally. The issue that the Co-President explains is that “it’s only in English” but if they localize the network, you can drive another layer of growth. Out of the WWE’s network 1.4 million subscribers, 1 million are local US but when it comes to total video consumption including YouTube, 70% comes from overseas. This explains that there is high demand for the product. WWE wants to expand globally not just via internet and media, they want to host live events and matches which is their core competency.

Their key to their growth strategy is to create some sort of live events to establish more of their presence. In order to do this permanently they must host live events internationally for specific occasions.  The WWE host events in the United Kingdom, Ireland, Mexico, Canada, and also Japan. Judging by the roaring success of the audience’s response, the WWE needed to establish themselves globally in these markets. For the first time, Royal Rumble will be arriving in Saudi Arabia this Spring. One of the important aspects of expanding internationally is making sure the wrestlers in the ring reflect the people in the crowd. The WWE has had no issues with diverse and international contestants and athletes. This is why it’s so important to capture the international market. Most people in the world can recognize a wrestling ring, that is why localization and telling a universal story to a universal audience.

https://www.fastcompany.com/40555389/the-wwe-is-at-the-top-of-its-game-in-the-u-s-next-stop-the-world

https://www.sportskeeda.com/wwe/wwe-news-triple-h-reveals-plans-to-make-nxt-a-global-territorial-system

Domino’s Pizza started off by its innovating home delivery service that people in the United States loved. In order to grow its brand, Domino's turned to international markets. Domino’s kept many things the same as they did in the United States with a few different touches.

Domino’s Pizza decided to stick to its traditional business model of pizza delivery and take-out orders throughout all of its stores worldwide. This is what Domino’s prevailed at and gave them a leading position in the market. However, when Domino’s went international and focused more on research and development, they realized that each country and culture perceives pizza in a different light. Does everyone perceive pizza to be quick and easy? Some countries and cultures believe it to be more as a fast food convenient place, some believe it to be more upscale, and some people believe it to be an occasional holiday outing. Due to this, Domino’s now has more tables available at their stores; however, the luxury of having servers serve and clean up afterwards is not the case. People are required to serve themselves and clean up afterwards.

Domino’s adapts and adjusts their products in the various markets it operates in. As mentioned, Domino’s has added more tables into their stores to please the needs and wants of consumers in other countries. They also adapted to certain taste preferences that people in different countries prefer. By adapting to consumer preferences, Domino's is able to provide consumers in each country the pizza and experience they want. For example, take a look at the marketing mix of India compared to the US. In India, there are about 3 or 4 different toppings that are available solely in Domino’s stores in India to fit their taste preferences. Since the majority of people in India are Hindu, a majority of the pizzas offered at Domino's in India are vegetarian. They also offer oregano spice mix packets rather than Parmesan cheese packets in order to attract the Indian culture. Also, the marketing and advertising in India is different as pizza in India is not viewed as daily fast food, but rather more of a once a week, special meal. Also, the Domino’s stores in India are located in highly populated areas such as shopping malls to create more buzz and attraction while in the United States, Domino’s stores are not in highly populated areas. While in the United States deliveries are made by car, in India, Domino’s, uses mopeds for delivery. In the streets of India, there is lots of traffic and to complete a quicker delivery, mopeds seemed to be the better option for Domino's.

   

 

 

 

 

 

 

 

 

 

 

 

 

References:

https://www.forbes.com/sites/dalebuss/2013/03/09/dominos-global-growth-feeds-pizza-chains-growing-success/

https://www.marketing91.com/marketing-strategy-of-dominos/

 

When thinking of companies who successfully achieve a global marketing strategy, Red Bull comes to mind. It is unbeatable. It is extreme. It is tactical. It is global. Red Bull’s brand is what makes the company great.

In 2015, Red Bull was the market leader with over 43% market share and is still continuing to grow strong. Red Bull had the first mover advantage and created the energy drink market. They targeted specifically males between the ages of 18-35 years old at many different hangout spots such as college parties, sports venues, libraries, college campuses, coffee shops, bars, etc.  They advertised their products through positive word of mouth essentially for free. Till this day, they still continue to go towards that target audience, however, it has begun to include females between those age groups as well. You can see the Red Bull car driving around and have evolved to music festivals all over the world, concerts, and major sports events globally, and they are sold pretty much everywhere.

Red Bull’s tagline, “Red Bull gives you wings”, captures their audience and it applies to people all over the world. Everyone needs energy to focus or do whatever they please and Red Bull accurately describes this. “Red Bull gives you wings” entices Red Bull’s audience and works for everyone around the world. Red Bull’s entire value is to “give wings to people and ideas.” Everything Red Bull makes and does simply revolves around this idea of giving wings and freedom and energy and life. This upbeat enthusiasm usually involves extreme sports, music, dance, art, festivals, clubs, etc.

As previously mentioned, Red Bull evolved in producing content that their audience enjoys. They publish large amounts of new and upcoming material on their website, produce a magazine called the Red Bulletin, they continuously post videos based on energy and “awe” moments, and sell their products and vision by doing publicity stunts, creating events (such as Red Bull Crashed Ice or Red Bull Queen of the Bay), and large amounts of sponsorships worldwide.

Coachella is Red Bull’s biggest event coming up this month on the dates of April 13-15 and April 20-22 with major world wide known artists headlining such as Beyonce, The Weeknd, Eminem, Cardi B, Migos, etc. Red Bull has constantly been posting Coachella material along with the hash tag Coachella x Red Bull (#CoachellaxRedBull ). They even sold tickets on their page which most companies were not able to do and did not have the authority to do.

References:

https://coschedule.com/blog/red-bull-marketing-strategy/

https://artplusmarketing.com/red-bull-stomps-all-over-global-marketing-7642c2647401

The goal of this new campaign is to expand and create more awareness of the brand. The aim is to challenge the sport’s perception by showing through the eyes of the fans the true reality and extreme experience of what F1 racing feels like. This is all to create more of brand identity among existing fans and consumers and to reach out to potential fans.

F1 released a new 60 second advertising film that emphasizes and shines upon the industries innovation, performance, endurance, and elemental nature. The film places the fans right front and center and in the heart of the action, spike their adrenalin as they are the ones behind the wheel. What make Formula 1 unique in its industry is that the products are engineered by pure insanity and the juxtaposition of two opposing forces.

The marketing tagline of this new campaign is ‘Engineered Insanity’. The marketing reaches out to all aspects of media. This includes posters in airports and city buildings with murals all across the city walls. The campaign will roll out across all grand prix destinations in China, France, Germany, and the USA. It’ll run on most digital and social platforms.

The goal and result of the film campaign is to track engagement, views, outreach, and sharing and reposting for the short run. The long-term aspect is to measure against its core brand statements like interest, knowledge and deeper understandings of F1 as a dominant sport. The long-term strategy is to shift brand perception to build a new identity centering around its loyal fan base. The campaign switches the focus away from the echo chamber and focuses on why fans love the sport.

This campaign exemplifies a ‘fan first’ engagement where it gains so much momentum as it rolls out globally. The visual language will be placed in the hands of the public who will post about their experiences online via GIFs and interactive Instagram stories. It’s all about the fan experiences. At the races, there will be more fan-based interactions that will engagement more participation and create more brand awareness. Also, for the fans enjoyment around the world, Formula 1 created their own F1 TV so that everyone may see live races and events that are ad free and love streamed. This content will be film directly from the drivers cock pit point of view to give the viewer and better, more dynamic and exhilarating feel watching the races.

https://www.formula1.com/en/latest/headlines/2018/3/formula-1-unleashes-global-marketing-campaign-.html

https://www.marketingweek.com/2018/03/16/formula-one-unveils-first-global-marketing-campaign/

Burberry has been a brand well known around the world as a high end designer brand. For the past 17 years, Christopher Bailey had been the creative director. However, effective March 31, 2018, Bailey will no longer be the creative director. Burberry took this as a window for more opportunity to improve their megabrand globally and restructure their strategy and target market. With this being said, Burberry’s chief executive, Marco Gobetti, hired a new creative director named Riccardo Tisci who was known for “resurrecting” the brand Givenchy. His creative vision will reposition Burberry’s brand image and position it to be complete luxury.

Burberry has previously been known as a luxury brand more for the older generation. Its products were mostly more conservative and more classic and basic. The pattern was the same with not many changes. With Tisci joining the team, Burberry is planning to change their global strategy as a whole. They want to change designs to be more contemporary and implement his skill sets to blend streetwear with high luxury fashion, which is what he is known for.

Gobetti and Tisci have a three year plan to elevate the Burberry brand and change their strategy to position Burberry tightly in the luxury category competing with the biggest brand names. The strategy includes uplifting the leather goods that Burberry uses, to create new collections that are fresh and appealing to a wider market, tighten their relationship with their distribution channels, make their stores more appealing to walk in to and catch your eye, and to better communicate with the public about their products and create a newness that grasps the attention. They want consumers to think “I have got to have this.” The whole product and customer experience has to be improved upon and updated.

Burberry has already started to take measures to redesign their products by incorporating streetwear to their Spring/Summer 2018 collection by partnering up with skater-inspired label Gosha Rubchinskiy. This will be the start of Tisci’s project at Burberry. Adding the streetwear high-end designs will likely boost global sales by about 5% this year which is a dramatic need to Burberry. Also, Tisci has a large following base and many connections with celebrities such as the Kardashians who can help create an increasing want and need for the brand.

Burberry is following the footsteps that Gucci took when redesigning their brand. They hope that by following Gucci’s footsteps, they will be able to get a similar reaction that Gucci received and to do so, they will be launching new campaigns and collections to showcase their new moves. They plan to reach a wider consumer base network and redesign the store layout.

 

References:

https://www.businessoffashion.com/articles/news-analysis/riccardo-tisci-is-the-new-creative-director-of-burberry

https://www.retaildive.com/news/burberry-taps-designer-riccardo-tisci-to-replace-christopher-bailey/518270/

The main steam and well-loved Irish Whiskey brand is looking to rebuild and execute its new global marketing strategy. Its main goal is to create a better awareness for its personal profile and personality. Its new campaign is called ‘Taste, that’s why’ and it is worth millions of dollars that includes TV spots on primetime channels and hours showcasing real life testimonies and brand stories.

The first two advertising campaigns that debuted on TV and social media sources expressed were a bug hit with the public audience and whisky lovers. The first ad was light hearted and funny. It was called, “Scully was to Blame” and it expressed how Bill Scully mistakenly makes a mess during a production line assembly and wastes gallons after gallons of distillate. The second ad called, “Coopers” expresses how master Cooper Dempsey and his apprentice discover that their barrels of alcohol have been lent to local breweries. In result, it leads to the creation of Jameson’s Caskmates Stout Edition.

On a personal note, the documentary, “The Story behind the Story” that reflects personal testimonies and personal experiences offer insights to the real and candid experiences that go into making the brand what it is today and why the employees and consumers stay loyal to the brand.

Jameson’s marketing director stated that their new campaign presents a fresh, engaging and emotional creative that is set to enhance and captivate more of an iconic brand image. Jameson wants to see its whiskey be at the top of its market, not only in the US but also around the world. This campaign will enhance awareness with new consumers around the globe and trigger remembrance with existing consumers. This will boost sales due to proper marketing to enhance brand recognition. Jameson will target markets that liquor is of high volume and high sales.

Jameson reported that it grew 16.3% to surpass 3 million cases of whiskey in the U.S. in 2017. In order to keep up pace with exist demand from all of whiskey and alcohol competitors, Pernod Ricard invested and contributed $11 million to increase capacity. This expansion includes three new copper pot stills that should be in full affect by Summer 2018.  This will benefit Jameson by adapting to the new aged culture of today's society but also adhere and value the previous generations through great brand image and great marketing to plant seeds in the new consumers minds to try and maybe possibly convert to Jameson whiskey opposed to Jack Daniels Tennessee whiskey.  This all depends on the targeted market and the social culture of where this market is at. If Jameson is aggressive and mindful of their surroundings, then they will be successful with this new campaign to boost sales and recognition.

References:

https://www.thespiritsbusiness.com/2018/03/jameson-unveils-new-global-marketing-push/

http://www.shankennewsdaily.com/index.php/2018/03/01/20273/pernod-backs-jameson-new-multi-million-dollar-global-ad-campaign/

Trying to create a global marketing strategy is not something easy to accomplish especially in certain industries. Companies are moving outside of their home country and what they're accustomed to and their strategy for gaining market share must be changed completely. However, many companies have been able to do so successfully and have been able to achieve international expansion providing an opportunity for growth in sales and profits.

What is global marketing? Global marketing is the process of adjusting and altering the company’s marketing strategy to adapt to the conditions and consumer wants/needs of the other countries. Are there benefits to having a global marketing strategy? Yes! Global marketing is a must to launch a successful product or service in a foreign country. The effectiveness of the product or service being launched is improved and can be beneficial for future launches. Understanding the foreign market in which you are launching the product is essential. It can lead to having a competitive advantage. Consumer awareness of your product or service and even the brand is increased through global marketing.

Let’s take Dunkin Donuts for example. Dunkin Donuts has over 3,100 stores in over 30 countries outside the US. Not only do they have a strong presence and customer awareness, but they have adapted their products to satisfy the sweet tooth of its global customers in each country. For example, in Lebanon, Dunkin Donuts understands that the Lebanese loves chocolate and are a big fan of fruits like Mango. This being said, they created The Mango Chocolate Donut which is extremely appealing to consumers in Lebanon. Similar to this, in Russia, Dunkin Donuts added Dunclairs and in Korea, they added their Grapefruit Coolata. They tailored some of their products in each country to satisfy the consumers. They analyzed the foreign market and adapted to it.

However, a company, like Dunkin Donuts, doesn’t go straight to a foreign market. For a company to take its’ product or service globally, there are a few steps one must take.

1. The first step is that the company has to concentrate on their domestic side and their home country/market. There has to be an understanding of it’s current situation and how they’ve attracted their customer base.
2. The second step is still focusing on the home country/market, however, exports are introduced and are being focused on.
3. In the third step, the company is ready to take their product/service overseas to a foreign country and adaptation is introduced and realized.
4. The fourth and last step is when the company creates value and launches its’ product or service to the foreign market.

Questions to ask when creating a global marketing strategy:

• What exactly is the company trying to achieve by taking the product or service to an international market?
• How valuable is this foreign market I am trying to go into for the company?
• How valuable is the company’s product or service for this foreign country?
• What are the strengths and weaknesses of the company in the foreign market?
• How will the company deal with challenges that arise in the market?

References:

http://www.global-strategy.net/what-is-global-strategy/