Tansgendered Essays

Tansgendered Essays Tansgendered Essay Tansgendered Essay Transgender Name: Course: Institution: Instructor: Date: Transgender Part one Transgendered people are those with different gender behaviors from the ones related to their assigned sex. For example, a person born to be a male may develop feminine body parts. When people are transgendered, they do not have any specific sex orientation. This is because they have mixed characteristics of both sexes. This term was introduced in 1970’s. It was used to refer to people who wanted to change their sex orientation. Later, it was made a general term to include all people with different gender behaviors. They include heterosexual, homosexual, bisexual and other gender identification. Therefore, the explanation of this word is viewed to be flux but has to include two principal definitions. The first is it refers to people who feel their gender does not bring their true nature. The second is a person birth sex does not correspond with the common male or female functions. A transgender may have traits related to a certain gender or adapt those that are outside the ge nder continuum (Lombardi et al, 2001). Transgender identification consists of many categories, which some of them overlap. They are transvestite, androgynes, cross-dresser gender queer. In many cases, people who are cross- gendered are mainly transsexual. There is a group called transvestic fetishist is more considered more of a psychological issue than a transgender identity. It has been observed that it is complex to understand the types of transgender. This is because some of the characteristics of these categories are overlap. When talking about a transgender, it is polite to refer to them with a preferable name or pronouns no matter their legal sex identification (Clements Katz, 2006). There are several effects associated with being transgendered. The first effect is trauma after realizing one is transgendered. No one would want to have gender abnormalities. This is why most people become traumatized because they least expect it. This is followed by emotions like anger anxiety, sadness, and self-denial among others. Others will feel hopeless and shameful about themselves. This leads to withdrawal and detachment from the society. These emotional effects could become severe if not treated. In severe cases, some people will suffer depression, which could result to suicide. Forty one percent of transgendered people in the United States are reported to have attempted suicide. In Seattle, twenty percent or more attempted suicide were recorded. The analysis also concluded that there is likely to be an increased rate of these cases (Dean et al, 2010). In some community setting transgendered, people are discriminated. They are seen to be abnormal with unacceptable character . This manly affects the homosexual community. All these effects are negative and affected people should seek medical help immediately. The first stage of treatment should be mental. If one is in a position to carry out physical treatment, they should go ahead and do so (American Public health, 2006). People or are transgendered face many challenges regarding their conditions. Most of them have to deal with internal conflicts about their exact identity. These are led to psychological uneasiness because some have found it hard to accept themselves. Mental health experts advise such people to seek medical help. The most recommended treatment for this problem is attending therapy. These therapies include talking to a specialist or will counsel individuals and assist them to get help. The patients are allowed to talk openly about what they feel and think in reference to their situation. In severe situations, transgender people can be diagnosed for gender dysphoria. This is a condition characterized with distress, and a person is unable to relate with others or work normally. Normally, the victim suffers depression, and this is why he or she becomes withdrawn (Chochran et al, 2002). Advanced medical studies have found solutions for persons who are transgendered. It is possible to correct some transgender conditions through medical surgery. For example, hormones can be used to change the biological development of a person. It is possible for a woman to develop breasts if she never had. Men with feminine parts can have removed and replaced with the appropriate ones. Physical treatment is most preferable because it will assist in mental recovery of those in conflict. When a woman is operated and can have a normal biological and physical development, she will be at peace with herself (American public Health Association, 2001). Part 2 The rationale of doing this project is based on several things. This topic is controversial among many people. Most of them do not understand it well hence; they end up misunderstanding concepts of this topic. This is why this project has been done to shed light on some of the misconceived facts. These groups of people may not receive enough help from their environments. This could be due to discrimination or ignorance of the society. This project will help such people to know what to do regarding their conditions, for example, seeking medical assistance (Hughes Eliason, 2010). This project is also useful to those who are not transgendered. Through the activities, they will understand about this condition and change their perception towards affected people. This will apply to those who believe in discriminating transgendered people. The project will make the participants understand that transgender is mostly caused by factors beyond human control. For example, DNA is one factor that influences this condition. People are born transgendered and no one should be judged for it. Understanding this fact may help people to stop discriminating transgendered people. Part 3 Outline Topic The topic of transgender will discuss several areas. For example, its existence in the society, effects on the people, how to deal with it and other issues. Discussion of this topic will equip the learners with relevant knowledge about this topic. It will assist those who are affected by this condition. Learning about transgender will change people’s perception about this disorder (Nemoto et al, 2004). Title of the curriculum The curriculum consists of several programs that will be done in this project. They include activities, which will help in learning about the topic. The activities will be as follows: Discussion groups, lectures talks, a session for enquiries, and the audience will have a chance to talk. The discussion groups will help the audience to interact with each other as well as share their experiences. It will also be a way of assessing how well the topic has been understood. A schedule of these activities will be prepared. The schedule will be as follows: Lecture talks Discussion groups Enquiries sessions Opinions and commentaries from the audience The target audience for this project is mainly young people from the ages of eleven years to thirty years. People in this age bracket are in the developing stages. Transgender signs are well identified in the stages. As young people develop, they face many challenges. It is even more difficult for those who are transgender because they are considered abnormal. They will learn how to live with their prevailing states. For those who are not transgendered, they will be advised on how to live harmoniously with the transgendered. Therefore, this workshop will be extremely helpful to these people (Stryker, 1998). Educators of this topic will be experts from various careers. They include psychologists and sociologists. Psychologists are professionals in the study of human behavior and other mind diseases. They have been chosen to be educators in this project because they have the required information. Sociologists are experts in human development. They understand about transgender issues, and they will be good facilitators of this topic (Boehmer, 2002). Goals How transgendered and not transgendered people should relate. How to correct transgender conditions. Problems faced by transsexual people Effects of transgender How to identify transgender conditions. Objectives The participants should be allowed to give examples of good relations between transgendered and those who are not. In their discussion groups, they should discuss how to solve problems faced by transgendered people. After learning ways of correcting transgender conditions, participants may give additional solutions. No one chooses to be a transgender therefore; these groups of people should be accepted by the society and assisted in every possible way. More research and studies should be done about this topic. It will help people to understand it and find even better solutions for curbing it. The transgendered people should form association where they meet and learn more about their conditions. These associations will also help them to offer each other moral and emotional support. For them to overcome discrimination in the community, they are advised to be confident and optimistic about a better life. Transgendered people are as equal as the rest hence they should be treated equally (American public health Association, 2006). References: American public health Association. Enhancing transgender health care. American Journal of Public Health: June 2001, Vol. 91, No. 6, pp. 869-872. American public health Association. HIV prevalence, risk behaviors, health care use, and mental health status of transgender persons: implications for public health intervention. American Journal of Public Health. Vol 91 (6), 2006 Boehmer, U. Twenty Years of Public Health Research: Inclusion of Lesbian, Gay, Bisexual, and Transgender Populations. American Journal of Public Health: July 2002, Vol. 92, No. 7, pp. 1125-1130. Cochran, B. N., Stewart, A. J. Ginzler, J.A. and Cauce, A. M. Challenges Faced by Homeless Sexual Minorities: Comparison of Gay, Lesbian, Bisexual, and Transgender Homeless Adolescents With Their Heterosexual Counterparts. American Journal of Public Health: 2002, Vol. 92, No. 5, pp. 773-777. Clements-Nolle, K., Marx, R., Katz, M. Attempted Suicide Among Transgender Persons: The Influence of Gender-Based Discrimination and Victimization. Journal of Homosexuality, Vol 51(3), 2006, 53-69. Dean, L., Meyer, I. H., Robinson K., Randall L. S, Robert S, Silenzio, V. M. B. et al. Lesbian, Gay, Bisexual, and Transgender Health: Findings and Concerns. Journal of the gay and lesbian medical association. Vol (4), 2010 102-151. T. L. Eliason, M. Substance Use and Abuse in Lesbian, Gay, Bisexual and Transgender Populations. The journal of primary prevention: 2010 Vol (22) 263-298 Lombardi, E. L., Wilchins, A.R., Priesing, D. Malouf, D. Gender violence: Transgender experiences with violence and discrimination. Journal of Homosexuality. Vol 42(1), 2001, 89-101. Nemoto, T. Operario, D., Keatley, J.K., Han, L., and Soma, T. HIV Risk Behaviors Among Male-to-Female Transgender Persons of Color in San Francisco. American Journal of Public Health: July 2004, Vol. 94, No. 7, pp. 1193-1199. Stryker, S. The Transgender Issue: An Introduction GLQ: A Journal of Lesbian and Gay Studies (1998) 4(2): 145–158;

Wildfire Red Flag Warning Extreme Burning Conditions

Wildfire Red Flag Warning Extreme Burning Conditions The United States National Weather Service is one major forecaster that determines a Red Flag Warning when weather conditions reach high potential for extreme wildfire starts leading to uncontrolled forest fires. It is a term used by fire-weather forecasters to call attention to critical weather conditions of particular importance that will potentially result in extreme burning conditions. It is must have continuously updated data for field foresters, wildland fire crews and equipment operators during periods of high fire hazard. A Red Flag Warning or RFW can be issued either by the state or the federal government to assist regional firefighting and land management agencies in making decisions on limiting the use of fire for a particular period of days or fighting fire when conditions suggest increased chances. Conditions that increase the chance of wildland fire starts and fire spread are monitored and a RFW is issued when a high degree of confidence that Red Flag conditions will occur within 24 hours of issuance. So, a RFW is usually issued from predictions based on drought conditions and when the relative humidity is very low. High winds and dry lightning strikes can become exacerbating factors and are included in some state and federal agencies that calculate their own warning data. These agencies will alter their staffing and equipment resources according to the data. To the public, a Red Flag Warning means high fire danger with increased probability of a quickly spreading vegetation fire in the area within 24 hours. Extreme care should be taken and the uses of outside fire suspended. Red Flag criteria also occur  whenever a region (usually a state) has been in a dry spell for a week or two, or for a shorter period under duress. It usually happens either before spring green-up or after fall color in the East or during the hot, windy summer in the West. The National Fire Danger Rating System (NFDRS) is usually high to extreme and the following forecast weather parameters are forecasted to be met: Sustained wind averages of 15 mph or greater.Relative humidity less than or equal to 25 percent.A temperature of greater than 75 degrees F.In some states, dry lightning and unstable air are criteria. A Fire Weather Watch may be issued prior to the Red Flag Warning. Here is an example of a RFW issued by the Colorado Forest Service during a Colorado fire crisis. Note that the alert is often shouted in all caps in the daily report. The first section of the report deals with a general weather summary by zone and the expected effective time period of concern. The second section numbers and defines the actual fire weather zones affected and address dangerous firefighting conditions to watch for. It also includes instructions on distribution of the alert to fire control personnel. .................... Event: Red Flag WarningAlert: ...RED FLAG WARNING IN EFFECT FROM 11 AM TO MIDNIGHT MDT TONIGHTFOR DRY THUNDERSTORMS AND GUSTY OUTFLOW WINDS FOR FIRE WEATHERZONES 201...203...207...290...291...292 AND 293... .ANOTHER ROUND OF ISOLATED TO SCATTERED THUNDERSTORMS IS EXPECTEDTODAY AS HOT TEMPERATURES CONTINUE. WHILE THE CONVECTIVE POTENTIALREMAINS...MOISTURE WILL BEGIN TO GRADUALLY DECREASE AS HIGHPRESSURE STARTS TO NUDGE INTO NEW MEXICO. THIS WILL RESULT IN THEMAJORITY OF STORMS PRODUCING MINIMAL RAINFALL AMOUNTS AT THESURFACE TODAY. ...RED FLAG WARNING REMAINS IN EFFECT FROM 11 AM THIS MORNING TOMIDNIGHT MDT TONIGHT FOR DRY THUNDERSTORMS AND GUSTY OUTFLOWWINDS FOR FIRE WEATHER ZONES 201...203...207...290...291...292 AND 293... * AFFECTED AREA...IN COLORADO...FIRE WEATHER ZONE 201 ROUTT FORECAST AREA...FIRE WEATHER ZONE 203 GRAND JUNCTION FORECAST AREA...FIRE WEATHER ZONE 207 DURANGO FORECAST AREA...FIRE WEATHER ZONE 290 PARADOX VALLEY FORECAST AREA...FIRE WEATHER ZONE 291 NORTHERN SAN JUAN FORECAST AREA...FIRE WEATHER ZONE 292 NORTH FORK FORECAST AREA...ANDFIRE WEATHER ZONE 293 GUNNISON BASIN FORECAST AREA. * THUNDERSTORMS...ISOLATED TO SCATTERED THUNDERSTORMS WILLDEVELOP FIRST OVER THE MOUNTAINS AND THEN MOVE TO THE EAST ANDNORTHEAST. THE MAJORITY OF STORMS WILL BE DRY...THOUGH SOMEWILL PRODUCE MARGINAL WETTING RAINFALL. * OUTFLOW WINDS...ALL THUNDERSTORMS WILL BE CAPABLE OF PRODUCINGERRATIC OUTFLOW WIND GUSTS UP TO 40 MPH. * IMPACTS...ANY FIRE IGNITION WILL BECOME DIFFICULT TO CONTROLWITH VERY HIGH RATES OF SPREAD POSSIBLE. Instructions: A RED FLAG WARNING MEANS THAT CRITICAL FIRE WEATHER CONDITIONS ARE EITHER OCCURRING NOW...OR WILL SHORTLY. A COMBINATION OF STRONG WINDS...LOW RELATIVE HUMIDITY...AND WARMTEMPERATURES WILL CREATE EXPLOSIVE FIRE GROWTH POTENTIAL. PLEASE ADVISE THE APPROPRIATE OFFICIALS AND AFFECTED FIELD PERSONNEL OF THIS RED FLAG WARNING. ....................

In Search of Excellence Essay Example | Topics and Well Written Essays - 2000 words

In Search of Excellence - Essay Example They claimed that excellent organizations had created methods that enabled them to strike a balance between the soft-s and hard-s factors achieved in a business. Maintaining and finding an applicable balance in these business factors was a vital issue in making an organization successful. According to Peters and Waterman (1982), then, the modest slippage of commercial America was to be observed as an imbalanced product in the American approaches to organization. They went on to argue that these imbalanced products had advanced in the organization approaches that had begun in America for the period of 1950s and 1960s. According to Peters and Waterman (1982), in the post second world war period, many managers in America were obsessed upon the hard-s business factors; structure, systems and strategy. In addition, the managers had not realized the significance of skill, style, superordinate goals, and staff which were the soft-s business factors needed in breathing life into systems, str uctures and strategies. Peters and Waterman (1982) recommend a more balanced management approach. The approaches considered balanced to business would hinge upon the energy, skills and imagination of managers. They are, therefore, charged with the duty of safeguarding the productive arrangements of the soft-s and hard-s business factors. ... They also stated that these companies would have a culture showing the eight aspects of excellence as shown in their research (Frost, Moore, Louis, Lundberg & Martin, 1985). Peters and Waterman listed the eight aspects of excellence. The first one was a bias for action. Exceptional companies engaged in planning activities that were traditional. However, the traditional activities did not bind the companies from other vital managerial approaches. They went on to argue that an excessive dependence on planning done traditionally and dependence upon the hard analysis of data, delayed decision making in many companies. It also discouraged risk taking. Exceptional companies avoided paralysis by analysis (Peters and Waterman, 1982). This was by evading using committees and refusing to agree that all decisions made have to be supported by hard analysis of data. Instead of using committees, these exceptional companies preserved a bias for action which explains the willingness in trying out in novative ideas and taking risks (Peters and Waterman, 1982). Peters and Waterman (1982) affirmed that the commitment in action was preserved by exceptional companies. This is because the exceptional companies form groups of people who like to experiment and innovate. This trend to action might be compared with approaches being adapted by other companies. These companies form committees that engage in briefs talks on experimentation (Peters and Waterman, 1982). The second aspect of excellence is a company’s in proximity to the customers. The exceptional companies have to improve their strategies, systems, structures and innovation in meeting and exceeding the customers’ expectation. Incase a product or a system did not satisfy the customer, exceptional

Final Assignment Example | Topics and Well Written Essays - 750 words

Final - Assignment Example As a successful executive, I will think outside-the-box to come up with creative solutions to organizational problems and foster an open work environment where employees contributions are part of the solution. By allowing a flexible approach to problem solving, I will foster a workplace where creativity and different approaches to addressing a problem,no matter how different the ideas defer from the accepted norm,will all be considered In order to lead effectively as a manager needs,I need to learn to master the four basic functions of management; planning,organizing,leading and controlling. An effective leader will always be very good at listening;it is an unappreciated management skill that leads to a better understanding of the problems at hand,be it personal or organizational. Of the tree basic management skills previously mentioned,the most important attribute a manager needs is to develop in order to succeed is effective leadership skills . The key to effective leadership, managing diverse individuals and complex situations effectively is to master four of the basic functions of management;planning,organizing,leading and controlling. As a manager,the first step is to analyze the situation or problem at hand and formulate a plan which best addresses the needs of the project. It is important to me as a business profession to become proficient at analyzing complex situations and coming up with innovative solutions to a problem. In order to hone my analytic and planning skills,applying the same level of care and analysis to certain everyday problems will help me become better at analyzing and planning solutions in my future professional career. In the organizing phase as a manager, I must be able to evaluate the employee skill-sets as well as identify the most suitable individuals for a specific tasks. Through taking the initiative to become a leader in any group environment

Macbeth Act 2 Scene 2 Essay Example for Free

Macbeth Act 2 Scene 2 Essay I shall now evaluate the significance of Act 2 Scene 2. Before this scene we know that Macbeth has already killed King Duncan. We have been introduced to Macbeth and Lady Macbeth. Furthermore, we have been introduced to the Murder, and guilt in the environment. This scene is essential to the plot because the scene produces and develops the character of Macbeth, and shows a different side of Macbeth after the murder of Duncan. It is essential also because it shows the reaction and effect the murder has put on Lady Macbeth. The two main characters in this scene are Macbeth and his wife, Lady Macbeth. This scene is one of the most significant scenes in this entire play. Owing to the fact that, in this scene Macbeth and Lady Macbeth reveal their equivocating and uncertain emotions and personalities. To be precise, in the beginning of this play Macbeth was a courageous, honourable and loyal soldier. However, he met three witches after a war. The witches sabotaged his mind into believing the fact that he would become the King of Scotland. These predictions the witches made roused Macbeth’s ambition and lead him into murdering King Duncan. In this scene, Macbeth has been mocked by his wife, into killing Duncan. Confused with his conscience and ambition Macbeth commits the sin. This scene shows the changes in Macbeth’s emotions and specifies that he is an enterprising character, who goes through the contrast between his courage and guilt. Act 2 scene 2 shows that Macbeth is in misery. This scene is about Macbeth being questioned by his conscience and about the betrayal that he has committed. An example of Macbeth questioning his conscience would be: â€Å"But wherefore could not I pronounce â€Å"Amen†?† In this quote you can tell that Macbeth is asking himself a question that is connected to him being uncomfortable. Another example of Macbeth’s guilt is: â€Å"Methought I heard a voice cry ‘Sleep no more!† This quote proves that Macbeth knows that he won’t be able to sleep at night, because his conscience has been questioned.  Act 2 scene 2 portrays Lady Macbeth as a cruel and evil character. The fact that she says â€Å"That which hath made them drunk hath made be bold† shows that she doesn’t feel any guilt and that she is still very cruel instead of being worrying about the consequences about the things that she has done. When  Lady Macbeth says â€Å"Why did you bring these daggers from the place? They must lie there: go carry then; and smear the sleepy grooms with blood† you can tell that she is only afraid about getting caught, but not guilty about what he has done, except she wants to make it seem even worse by smearing the grooms with blood. Shakespeare emphasizes the two character’s personalities by making them completely different from each other. He makes it a balance because he wants the audience to see the irony that he has created in the play because in the future the two characters will swap their personalities.  Shakespeare uses the effect of imagery in this play. In this particular scene he uses his strong visual words to create pictures in the audience’s minds. Even though, the death of Duncan isn’t described specifically in this play, the audience will still be able to imagine the terrible scene of murder. When Lady Macbeth says, â€Å"My hands are of your colour; but I shame to wear a heart so white† she implies the effect and image of blood, because when she says colour people will most probably think of blood. Macbeth responds by saying â€Å"This is a sorry sight† it also implies to the audience that it isn’t very good to be seen. Also, when Lady Macbeth says, â€Å"Smear the sleepy grooms with blood† the imagery is very effective because people can picture a room and people smeared with blood. Imagery is very significant because it is the only way that the audience will be able to see the story. If there are no strong visual words then the audience will not be able to see anything, this way it will be harder for the audience to enjoy the story. Hence, Shakespeare uses imagery. Murder and guilt are the two main themes addressed in this scene. In the whole play, Macbeth’s unintelligent behaviour and other flaws in his character caused Macbeth’s failure and ruination. Also, Lady Macbeth’s pressure on him was an important reason of his downfall. This is shown comprehensively in this scene. In this play Shakespeare is trying to show the audience that ambition and passion is good only when it is thought up to a limit, and if people think of right and wrong. However, it could be bad when it becomes so passionate that it shatters one’s honour and pride. In this scene Shakespeare tries to show the audience Macbeth’s wrong decision and the consequence to his spurious ambition. The theme of murder is shown in Lady Macbeth’s dialogues. When she says â€Å"I have drugged their possets† the audience can feel the murder theme, because Lady Macbeth is so keen and excited about Duncan’s death that she would do anything. Also, when she says â€Å"Had he not resembled my father as he slept, I had done’t† it also shows that she would have done anything to make Macbeth the king. The theme of guilt is only shown in Macbeth’s dialogues. When Macbeth says â€Å"Sleep no more, Macbeth shall sleep no more† the audience can easily tell that Macbeth is feeling guilty about what he has done. Also, when he says â€Å"This is a sorry sight† people can tell that Macbeth is afraid of what has happened. Also, the audience can tell that Macbeth hasn’t done everything with his own decision. This is very ironic because in this scene Macbeth is the one who is guilty and carries on with the theme of guilt. However, further in the play it’s Lady Macbeth that is guilty and Macbeth carries the theme of Murder instead of Lady Macbeth. The original audience would have responded to this scene with fear and anger towards Lady Macbeth because she plays a very cruel character that is very vicious and nasty and doesn’t care about what has happened. However, the audience would feel sorry for Macbeth and find Macbeth very dumb for doing what he has done. The overall dramatic impact of the scene is a very strong effect of evilness. The most intense aspect of this scene is when Shakespeare shows the difference between cruelty (Lady Macbeth) and guilt (Macbeth) because this is the point where the audience is thinking most about the reaction of characters of the death. This scene is a scene of a climax point where there are a lot of different characteristics added to each character. The scenes significance to the rest of the play is very strong because it is contrasting to the rest of the play where Lady Macbeth becomes guilty and Macbeth becomes vicious.

Cultural Activism :: essays papers

Cultural Activism In our society we have the convenience of technology--computers, television (the media, film, and video), and other means of communication with the general public. Our society has developed ways to convey ideas and beliefs through the use of technology. In other parts of the world, there are still some societies that are not aware of this technology that our society embraces. However, the growth of technology will soon reach and combine with "traditional" cultural societies. In Faye Ginsburg's article "From Little Things, Big Things Grow", she argues "that these latest products of indigenous expressive culture are part of self-conscious efforts to sustain and transform culture in aboriginal communities, an activity that is linked to indigenous efforts for rights to self-representation, governance, and cultural autonomy after centuries of colonial assimilationist policies by surrounding states". It is important for a culture to sustain its beliefs and not to completely be assimilated into Western culture. However, by the use of the media, we as a society are able to better understand those of different cultural backgrounds and are able to see what other cultures, besides our own, are like. Ginsburg also states, "I suggest that indigenous media work is significant not simply as a transformation of Western technologies, but also as a new form of collective self-production that is being used self-consciously by indigenous producers to mediate historical ruptures within their own cultures and to assert the presence and concerns of First Nations peoples in the broader societies that encompass them". By introducing media technology to other cultures, those cultures, in turn, are able to use the technology and fuse it in with their "traditional" beliefs. Also, these cultures are able to bring forth issues that occurring in their societies that need to be addressed and made known to others. Technology makes for better communication, and with this communication these cultures can reach other cultures besides their own. Through the use of technology (the media), we can better understand the histories of many cultures and the ways of life of in other societies. "†¦.The very creation of media work that both reflects and revisions their lives and histories is a kind of self-conscious and direct social action that establishes and reinforces the visible cultural presence of indigenous lives in a form that can circulate in and among many communities" (Ginsberg, 121).

Coke and Pepsi Learn to Compete in India

1. The political environment in India has proven to be critical to company performance for both PepsiCo and Coca-Cola India. What specific aspects of the political environment have played key role? Could these effects have been anticipated prior to market entry? If not, could developments in the political arena have been handled better by each company? Answer The political environment have played key role as follow: – Indian government viewed as unfriendly to foreign investors.Outside investment had been allowed only in high-tech sectors and was almost entirely prohibited in consumer goods sectors. The â€Å"Principle of indigenous available† If an item could be obtained anywhere else within the country, imports of similar items were forbidden. This made Indian consumers had a little choice of products or brands and no guarantees of quality or reliability. – Indian Laws, the government mandated that Pepsi’s products be promoted under the â€Å"Lehar Pepsi † name. For Coca-Cola, they attempted to enter into Indian market by joining with Parle and became â€Å"Coca-Cola India†Some of these effects may have been anticipated, especially foreseeing the corruption within Indian government. Taking that into account more proactively might have helped Coca-Cola avoid hardships in the past. As far as the contamination issues goes, that might not have been so easy to anticipate. Both companies held their own when trying to prove their products were within safe limits compared to other food products. They could developments in political arena; Coke could agreed to start new bottling plants instead of buying out Parle, and thus wouldn’t agreed to sell 49% of their equity.2. Timing of entry into the Indian market brought different results for PepsiCo and Coca-Cola India. What benefits or disadvantages accrued as a result of earlier or later market entry? AnswerPepsi early entry than Coca-Cola so it must be different in benefits and disadvantages between them in timing of entry into the Indian market: Pepsi: Advantage – It could enter into market before Coca-Cola so it could gain a foothold in the market while it was still developing. Disadvantages – It was forced to change its name to Lahar Pepsi.And government limited its soft drink sales to less than 25% of total sales. Coca-Cola:Advantages – It could buy 4 bottling plants from industry leader (Parle). It also bought Parle’s leading brands such as Thums Up, Limca, Citra, Gold Spot and Mazaa. And it could set up 2 new ventures with Parle to bottle and market product. Disadvantages – It denied to entry in Indian market until 1993 because Pepsi was already there, so it was not easy to establish the market share with Pepsi.3. The India market is enormous in terms of population and geography.How have the two companies responded to the sheer scale of operations in India in terms of product policies, promotional activities, p ricing policies, and distribution arrangements? Answer Product Policies Coca-Cola and Pepsi launched different product lines for attractive to the Indian consumer tastes. They started with product lines that were already available, such as cola, fruit drinks, and carbonated water. And they introduced new products such as Sprite and bottled water. Promotion Activities – Pepsi and Coca-Cola adapted themselves to the local market with promotions.Pepsi: They promoted heavily during the cultural festival of Navrarti by offering people fetch one kilo of Basmati rice with every refill of a case of Pepsi. This is an effective strategy to exchange between the old (rice) and the new (Pepsi). On the other side, Coca-Cola offers free passes, and giveaway as well as vacations to Goa, a famous resort in India for promoting its product. Pricing Policies – Pepsi launched with an aggressive pricing policy to attempt to get immediate market share from Indian rivals. For, Coca-Cola reduc ed prices nationwide by 15-25% to make them affordable and to access the market share easily.Distribution Arrangements – Production plants and bottling centers were strategically placed in large cities all around India. They were more added as demand grew, along with new product lines. In Coca-Cola’s case, the JV with Parle provided access to its bottling plants and its products. By forming partnerships, both Coca-Cola and Pepsi were able to get initial access into the market.4. â€Å"Global localization† (glocalization) is a policy that both companies have implemented successfully. Give example for each company from the case.Answer Pepsi – Pepsi forms joint venture when first entering India with two local partners, Voltas and Punjab Agro, forming â€Å"Pepsi Foods Ltd†. In 1990, Pepsi Foods Ltd. changed the name of their product to â€Å"Lehar Pepsi† to conform to foreign collaboration rules. In keeping with local tastes, Pepsi launched its Lehar 7UP in the clear lemon category. Moreover, Pepsi is most effective glocalization strategy has been sponsoring world famous Indian athletes. Coca-Cola – Firstly, joined forces with the local snack food producer Britannia Industry Indai Ltd. in the early 90’s.Then, Coca-Cola formed a joint venture with the market leader Parle in 1993. For the festival of Navrartri, Coca-Cola issued free passes to the celebration in each of its â€Å"Thums Up† bottles. It also ran special promotions where people could win free vacations to Goa, a resort state in western India. Furthermore, Coca-Cola also hired many famous Bollywood actors to guarantee its products.5. How can Pepsi and Coke confront the issues of water use in the manufacture of their products? How can they defuse further boycotts or demonstrations against their products?How effective are activist groups like the once that lunch the campaign in California? Should Coke Address the group directly or just let the furor subside? AnswerMany failures of both Pepsi and Coca-Cola experienced due to the unforeseen external environment, including the boycott placed on American and British Goods following the Second Gulf War in 2003. Firstly, Pepsi and Coca-Cola should have more focused on its products. The market still hasn’t taken off so they need to penetrate harder. In 2003, India’s annual consumption rate was still a poor seven per person.Specifically, Pepsi spent very small amounts on its 7UP marketing campaigns in India due to its relatively low market size (4. 5%). Advertising dollars should be pumped more freely and strategically if they want to see a return on investment. Next, they should be defined more specifically in their target markets. Coca-Cola separates its markets as â€Å"India A† and â€Å"India B†. This is too broad and lacks focus. We can differentiate demographics by gender, race, age, interests, job, and location. Then, Coca-Cola entered the mar ket at a wrong time because they had to agree to abide by all of the Foreign Investment Laws of that year.To avoid having to sell its 49% stake though, Coca-Cola should have agreed to set up Greenfield bottling units instead, as Pepsi did. Further, Coca-Cola lost valuable market share by entering the beverage market after Pepsi. By the time Coca-Cola was fully owned in 1993, Pepsi had already amassed a 26% market share. By continuing to apply for extensions and attempting to deny voting rights for the Indian stake, Coca-Cola was only tarnishing its public image and destroying its relationship with the government. When entering into a foreign market, maintaining a good relationship with the host country’s government is crucial.6. Which of the two companies do you think has better long-term prospects for success in India? AnswerIn my opinion, Pepsi will fare better than Coca-Cola in the long run because Pepsi has better in marketing and advertising. It’s also more widely accepted from consumers because it came in this market early so this could make Pepsi got more market share than Coca-Cola.7. What lessons can each company draw from its India experience as it contemplates into other Big Emerging Markets? AnswerFor Coca-Cola, firstly, it must consider more in dealing with government and also establish a good relationship with government. And it must pay attention for investment in quality products. For Pepsi, it must keep their products with local taste, and it should be focus on market trends in that area, celebrity appeal makes for exceptional advertising, and it must keep up with emerging trends in the market as well.8. Comment on the decision of both Pepsi and Coke to enter the bottled water market instead of –continuing to focus on their core products carbonated beverages and cola-based drinks in particular. AnswerPepsi and Coca-Cola did successful in continuing to research emerging trends and implementing them. Pepsi created smaller bo ttles to keep up with the trend of high frequency/ high volume consumption. Coca-Cola launched the â€Å"minis† in an effort for higher volume. So, they should keep a close watch on the advertising campaign effectiveness, and research on pleasant of the advertising for intention to buy.This measure ensured that advertising dollars were being strategically allocated and not wasted. Moreover, they must to consist of establishments primarily engaged in manufacturing non-alcoholic, carbonated beverages, mineral waters and concentrates and syrups for the manufacture of carbonated beverages. Establishments primarily engaged in manufacturing fruit juices and non-carbonated fruit drinks are classified in canned and Preserved Fruit and Vegetable Industry.

Marketing Strategies of Nestle and Unilever

CHAPTER – ONEConceptual framework and basic issues 1. 1 INTRODUCTION India is one of the largest economies in the world in terms of purchasing power and is among the fastest-growing, with a population of around 1. 12 billion people, with huge natural resources, and with costs that are at the very low end of the global average. All major consumer companies of India have sophisticated marketing and product development plans. Moreover, the multinationals that are operating in India have business models that are tailor-made to local markets and customs. After the economic liberalization of 1991, many MNCs have entered India. Today, global companies having subsidiaries in India include Unilever, Nestle, BATA, Colgate Palmolive, Procter & Gamble, General Electric, General Motors, Ford, Pepsi and Coca-Cola. Historically, the main reason for the entry of MNCs into India was to jump the tariff wall. High import duties ruled out the option of exporting finished goods from the home country to India. On the other hand, once they entered the country and set up operations, the country’s high tariffs guaranteed adequate protection. In some cases, the need to customize products necessitated a strong local presence. The multinational companies in India represent a diversified portfolio of companies from different countries. There are a number of reasons why the multinational companies are coming down to India. India has got a huge market. It has also got one of the fastest growing economies in the world. Besides, the policy of the government towards FDI has also played a major role in attracting the multinational companies in India. While several MNC’s have entered India, However, even within a given industry, some MNCs seem to be doing better than the others. Consider the automobile industry. Here, Suzuki and Hyundai are way ahead of formidable rivals such as General Motors, Honda and Ford. Similarly in the FMCG sector, even after allowing for its relative late entry, Hindustan Unilever Limited and Nestle remains a big player in the Indian market. FMCG are products that have a quick shelf turnover, at relatively low cost and don't require a lot of thought, time and financial nvestment to purchase. Three of the largest and best known examples of Fast Moving Consumer Goods companies in India are Nestle, Hindustan Unilever limited and Procter ; Gamble. The Indian FMCG sector is an important contributor to the country's GDP. It is the fourth largest sector in the economy. It has a strong MNC presence and is characterized by a well established distribution network, intense competition between the organized an d unorganized segments and low operational cost. The Indian FMCG sector is the fourth largest sector in the economy. It has a strong MNC presence and is characterized by a well-established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. The FMCG sector consists of three product categories, each with its own hosts of products that have relatively quick turnover and low costs: * Household Care * Personal care * Food and Beverages Food and Beverages * Health beverages; soft drinks Staples/cereals * Beverages bakery products (biscuits, bread, cakes) * Snack food * Chocolates * Ice cream * Tea * Coffee * Soft drinks * Processed fruits, vegetables * Dairy products * Bottled water * Branded flour Household care * Fabric wash (laundry soaps and synthetic detergents) * Household cleaners(dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellents, metal polish and furniture polish) Personal Care * Oral care, hair care, skin care, personal wash (soaps) * Cosmetics and toiletries deodorants Perfumes * Feminine hygiene * Paper product 1 †¢ Food & Beverage My project topic is on the study of Hindustan Unilever limited and Nestle India, which are major MNC’s (FMCG) in India. Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged goods. Items in this category include all consumables (other than groceries/pulses) people buy at regular intervals. The most common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and household accessories. In India, companies like HUL, P& G and Nestle have been a dominant force in the FMCG sector . These companies were, therefore, able to charge a premium for their products. With the gradual opening up of the economy over the last decade, FMCG companies have been forced to fight for a market share. An average Indian spends around 40 per cent of the income on grocery and 8 per cent on personal care products. The large share of fast moving consumer goods (FMCG) in total individual spending along with the large population base is another factor that makes India one of the largest FMCG markets. Source: KSA Technopak Consumer Outlook 2004. Figure:1. 1 Even on an international scale, total consumer expenditure on food in India at US$ 120 billion is amongst the largest in the emerging markets, next only to China. Figure 1. 2 TOP 10 Fmcg companies in India 1. Hindustan Unilever Ltd. 2. ITC (Indian Tobacco Company) 3. Nestle India 4. AMUL 5. Dabur India 6. Britannia 7. Cadbury India 8. Pepsico 9. Procter & Gamble Hygiene and Health Care 10. Marico Industries The FMCG sector has traditionally grown at a very fast rate and has generally outperformed the rest of the industry. Given the large market and the requirement for continuous repurchase of these products, FMCG companies continue to do well . Moreover, most of the companies are concentrating on cost reduction and supply chain management and sustainable competitive advantage. FMCG must keep fine-tuning their strategy till they have a winning formula in place. It is FMCG’s which show both commitment and flexibility that are most likely to succeed in India 1. 2 Need of the study Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and chieve a sustainable competitive advantage. The need of the study of this project entitled ‘Comparative study on the marketing strategies of the HUL and Nestle in India’ is to understand whether the marketing strategies is suited to the Indian market because each markets in India follow different political and cultural environment, therefore different marketi ng practices are implemented to get the desired outcome, that is profit, so there is a need to study how these MNC’s adapt to Indian markets. 1. 3 Objective of the study To identify and compare the marketing strategies of Hindustan Unilever Limited and Nestle India * To identify the SWOT analysis. * To identify the marketing mix of both the companies * To analyse the various strategies adopted by both the companies to gain competitive advantage CHAPTER – TWO 2. 1 Profile of Unilever Unilever is a British-Dutch multinational corporation that owns many of the world's consumer product brands in foods, beverages, cleaning agents and personal care products and operates in around 100 countries. Unilever is a dual-listed company consisting of Unilever N. V. in Rotterdam, The Netherlands and Unilever PLC in London, United Kingdom. Both Unilever companies have the same directors and effectively operate as a single business. The current non-executive Chairman of Unilever N. V. and PLC is Michael Treschow while Paul Polman is Group Chief 2. 1. 1 History of Unilever Unilever was created in 1930 by the amalgamation of the operations of British soap maker Lever Brothers and Dutch margarine producer Margarine Unie, a merger as palm oil was a major raw material for both margarines and soaps and could be imported more efficiently in larger quantities. In the 1930s the Unilever business grew and new ventures were launched in Latin America. In 1972 Unilever purchased A;W Restaurants' Canadian division but sold its shares through a management buyout to former A&W Food Services of Canada CEO Jefferson J. Mooney in July 1996. By 1980 soap and edible fats contributed just 40% of profits, compared with an original 90%. In 1984 the company bought the brand Brooke Bond (maker of PG Tips tea). In 1987 Unilever strengthened its position in the world skin care market by acquiring Chesebrough-Ponds, the maker of Ragu, Pond's, Aqua-Net, Cutex Nail Polish, and Vaseline. In 1989 Unilever bought Calvin Klein Cosmetics, Faberge, and Elizabeth Arden, but the latter was later sold (in 2000) to FFI Fragrances In 1996 Unilever purchased Helene Curtis Industries, giving the company â€Å"a powerful new presence in the United States shampoo and deodorant market†. The purchase brought Unilever the Suave and Finesse hair-care product brands and Degree deodorant brand. In 2000 the company absorbed the American business Best Foods, strengthening its presence in North America and extending its portfolio of foods brands. In April 2000 it bought both Ben ; Jerry's and Slim Fast. The company is multinational with operating companies and factories on every continent (except Antarctica) and research laboratories at Colworth and Port Sunlight in England; Vlaardingen in the Netherlands; Trumbull, Connecticut, and Englewood Cliffs, New Jersey in the United States; Bangalore in India and Shanghai in China. The US division carried the Lever Brothers name until the 1990s, when it adopted that of the parent company. The American unit has headquarters in New Jersey, and no longer maintains a presence at Lever House, the iconic skyscraper on Park Avenue in New York City. The company is said to promote sustainability and started a sustainable agriculture programme in 1998. In May 2007 it became the first tea company to commit to sourcing all its tea in a sustainable manner, employing the Rainforest Alliance, an international environmental NGO, to certify its tea estates in East Africa, as well as third-party suppliers in Africa and other parts of the world. It declared its aim to have all Lipton Yellow Label and PG Tips tea bags sold in Western Europe certified by 2010, followed by all Lipton tea bags globally by 2015. In 2008 Unilever was honored at he 59th Annual Technology & Engineering Emmy Awards for â€Å"Outstanding Achievement in Advanced Media Technology for Creation and Distribution of Interactive Commercial Advertising Delivered through Digital Set Top Boxes† for its program Axe: Boost Your ESP On September 24, 2010, Unilever announced that it has entered into a definitive agreement to sell its consumer tomato products business in Br azil to Cargill and on September 27, 2010, Unilever purchased Alberto-Culver, the maker of personal care and household products such as VO5, Nexxus, TRESemme, and Mrs. Dash for $US3. 7 billion. On September 28, 2010, Unilever and EVGA announced that they have signed an agreement under which Unilever will acquire EVGA’s ice cream brands (amongst others, Scandal, Variete and Karabola) and distribution network in Greece, for an undisclosed amount. 2. 1. 2 Mission Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition; hygiene and personal care with brands that help people feel good, look good and get more out of life. 2. 1. Vision We work to create a better future every day, help people feel good, look good and get more out of life with brands and services that are good for them and good for others and will inspire people to take small, everyday actions that can add up to a big difference for the world, develop new ways of doing business with the aim of doubling the size of our company while reducing our environmental impact and fully recognize that we will need to develop a new model for business growth. We are embarking on a long-term programme of work with our employees,  suppliers, customers and other partners to realize this goal. With our portfolio of strong brands, presence in emerging markets and long-standing commitment to shared value creation, we believe we are well placed to deliver on this ambition. 2. 1. 4 Brands * Food brands Becel, flora, Bertolli, Blue band Rama, Heartbrand, Hellmann’s, Amora, Knorr, Lipton, Slim-Fast * Homecare Brands Cif, Comfort, Domestos, Omo, Radiant, Sunlight, Surf * Personal Care brands Axe, Dove, Lux, Lifebuoy, Ponds’, Rexona, Signal, Close-up, Sunsilk, Tigi, Vaseline 2. 1. 5 Purpose ; principles Our corporate purpose states that to succeed requires â€Å"the highest standards of corporate behaviour towards everyone we work with, the communities we touch, and the environment on which we have an impact. † * Always working with integrity Conducting our operations with integrity and with respect for the many people, organizations and environments our business touch has always been at the heart of our corporate responsibility. Positive impact We aim to make a positive impact in many ways: through our brands, our commercial operations and relationships, through voluntary contributions, and through the various other ways in which we engage with society. * Continuous commitment We're also committed to continuously improving the way we manage our environmental impacts and are working towards our longer-term goal of developing a sustainable business. * Setting out our aspirations Our corporate purpose sets out our aspirations in running our business. It's underpinned by our code of business Principles which describes the operational standards that everyone at Unilever follows, wherever they are in the world. The code also supports our approach to governance and corporate responsibility. * Working with others We want to work with suppliers who have values similar to our own and work to the same standards we do. Our Business partner code, aligned to our own Code of business principles, comprises ten principles covering business integrity and responsibilities relating to employees, consumers and the environment. . 1. 6 Management Our  operating  model  is designed to  deliver faster decisions. Learn more about our senior corporate officers and  the  Unilever Executive. The Executive directors are those members of the Unilever executive (UEX), including the group chief executive, who are also directors of Unilever. NAME | DESIGNATIONS| Paul Polman | Chief Executive Officer, Executive Director to the Boards of Unilever PLC and Unilever NV | Jean-Marc Huet | Chief Financial Officer. | The Unilever executive (UEx) is responsible for managing profit and loss, and delivering growth across our regions, categories and functions NAME| DESIGNATION| Professor Genevieve Berger | Chief Research and Development Officer| Jean-Marc Huet| Chief financial officer| Pier Luigi Sigismondi| Chief Supply Chain Officer| Keith Weed | Chief Marketing and Communication Officer | Douglas Anderson Baillie Chief HR Officer| Chief HR Officer| Non-executive directors The non-executive directors are the independent element in Unilever's governance. NAME| DESIGNATIONS| Michael Treschow | Chairman Unilever N. V. and PLC, Member of Unilever’s Nomination and Remuneration Committees. | The Rt Hon Sir Malcolm Rifkind, MP| Chairman of the Corporate Responsibility and Reputation Committee| Hixonia Nyasulu | Member of Unilever’s Corporate Responsibility and Reputation Committee| Paul walsh| Member of Unilever’s Nomination and Remuneration Committees. | 2. 1. 7 Financials Items | Amounts | Revenue| â‚ ¬44,262  billion (2010)| Operating Income| â‚ ¬6,339  billion (2010)| Net Income | â‚ ¬4,598  billion (2010)| Source:-www. unilever. com 2. 2 HINDUSTAN UNILEVER LIMITED Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company with a heritage of over 75 years in India and touches the lives of two out of three Indians. HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others. With over 58 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair ; Lovely, Pond’s, Vaseline, Lakme, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit. The Company has over 15,000 employees and has an annual turnover of Rs. 17,873. 44 crores (financial year 2009 – 2010). HUL is a subsidiary of Unilever, one of the world’s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about â‚ ¬44. billion in 2010. Unilever has about 52% shareholding in HUL. 2. 2. 1 History of Hindustan Unilever limited In the summer of 1888, visitors to the Kolkata harbor noticed crates full of Sunlight soap bars, embossed with the words â€Å"Made in England by Lever Brothers†. With it began an era of marketing branded Fast Moving Consumer Goods (FMCG). Soon after Lifebuoy was launched in 1895 a nd other famous brands like Pears, Lux and Vim. Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937. In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). These three companies merged to form HUL in November 1956; HUL offered 10% of its equity to the Indian public, being the first among the foreign subsidiaries to do so. Unilever now holds 52. 10% equity in the company. The rest of the shareholding is distributed among about 360,675 individual shareholders and financial institutions. The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the company had launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was formed. Brooke Bond joined the Unilever fold in 1984 through an international acquisition. The erstwhile Lipton's links with India were forged in 1898. Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited was incorporated. Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986. Since the very early years, HUL has vigorously responded to the stimulus of economic growth. The growth process has been accompanied by judicious diversification, always in line with Indian opinions and aspirations. The liberalization of the Indian economy, started in 1991, clearly marked an inflexion in HUL's and the Group's growth curve. Removal of the regulatory framework allowed the company to explore every single product and opportunity segment, without any constraints on production capacity. Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the most visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills Company (TOMCO) merged with HUL, effective from April 1, 1993. In 1996, HUL and yet another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Unilever Limited, to market Lakme's market-leading cosmetics and other appropriate products of both the companies. Subsequently in 1998, Lakme Limited sold its brands to HUL and divested its 50% stake in the joint venture to the company. HUL formed a 50:50 Joint venture with the US-based Kimberly Clark Corporation in 1994, which markets Huggies Diapers and Kotex Sanitary Pads. HUL has also set up a subsidiary in Nepal, Unilever Nepal Limited (UNL), and its factory represents the largest manufacturing investment in the Himalayan kingdom. The UNL factory manufactures HUL's products like Soaps, Detergents and Personal Products both for the domestic market and exports to India. The 1990’s also witnessed a string of crucial mergers, acquisitions and alliances on the Foods and Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with significant interests in Instant Coffee. In 1993, it acquired the Kissan business from the UB Group and the Dollops Ice cream business from Cadbury India. As a measure of backward integration, Tea Estates and Doom Dooma, two plantation companies of Unilever, were merged with Brooke Bond. Then in 1994, Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL), enabling greater focus and ensuring synergy in the traditional Beverages business. 1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. By the end of the year, the company entered into a strategic alliance with the Kwality Ice cream Group families and in 1995 the Milk food 100% Ice cream marketing and distribution rights too were acquired. Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998. The two companies had significant overlaps in Personal Products, specialty Chemicals and Exports businesses, besides a common distribution system since 1993 for Personal Products. The two also had a common management pool and a technology base. The amalgamation was done to ensure for the Group, benefits from scale economies both in domestic and export markets and enable it to fund investments required for aggressively building new categories. In January 2000, in a historic step, the government decided to award 74 per cent equity in Modern Foods to HUL, thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. HUL's entry into Bread is a strategic extension of the company's wheat business. In 2002, HUL acquired the government's remaining stake in Modern Foods. In 2003, HUL acquired the Cooked Shrimp and Pasteurized Crabmeat business of the Amalgam Group of Companies, a leader in value added Marine Products exports. HUL launched a slew of new business initiatives in the early part of 2000. Project Shakti was started in 2001. It is a rural initiative that targets small villages populated by less than 5000 individuals. It is a unique win-win initiative that catalyses rural affluence even as it benefits business. Currently, there are over 45,000 Shakti entrepreneurs covering over 100,000 villages across 15 states and reaching to over 3 million homes. In 2002, HUL made its foray into Ayurvedic health ; beauty centre category with the Ayush product range and Ayush Therapy Centres. Hindustan Unilever Network, Direct to home business was launched in 2003 and this was followed by the launch of ‘Pureit’ water purifier in 2004. In 2007, the Company name was formally changed to Hindustan Unilever Limited after receiving the approval of share holders during the 74th AGM on 18 May 2007. Brooke Bond and Surf Excel breached the Rs. 1,000 crore sales mark the same year followed by Wheel which crossed the Rs. 2,000 crore sales milestone in 2008 and on 17th October 2008, HUL completed 75 years of corporate existence in India. 2. 2. 2 Management The fundamental principle determining the organization structure is to infuse speed and flexibility in decision-making and implementation, with empowered managers across the company’s nationwide operations. Management Committee The day-to-day management of affairs of the Company is vested with the Management Committee which is subjected to the overall superintendence and control of the Board. The Management Committee is headed by Mr. Nitin . Paranjpe and has functional heads as its members representing various functions of the Company and Management committee includes the members in the Executive directors Executive directors The Executive directors are members of the HUL Management Committee as well as the Board of HUL. NAME| DESIGNATION| Nitin Paranjpe| CEO and Managing Director| R. Sridhar| Chief Financial Officer| Gopal Vittal| Executive Director, Home ; Personal Care| Pradeep Banerjee| Executive Director, Supply Chain| Shrijeet Mishra| Executive Director, Foods| Hemanth Bakshi| Executive Director| Ms. Leena Nair| Executive Director, HR| Dev Bajpai| Executive Director, Legal and company Secretary| Non-executive directors The non-executive directors are the independent directors in the HUL Board NAME| DESIGNATION| Mr. Harish Manwani| Chairman of the Company| Mr. D. S. Parekh| Indepedent  Director| Mr. A. Narayan| Independent  Director| S. Ramadorai| Independent  Director| Dr. R. A. Mashelkar| Independent  Director| 2. 2. 3Financials of HUL Items | Amounts | Revenue| 17,873. 44 crore (2009-2010)| Net income| 2,202. 03 crore (2009-2010)| Source:-www. hul. co. in 2. 3 Profile of Nestle 2. 3. 1 History Nestle with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestle and is today the world's biggest food and beverage company and the world's leading Nutrition, Health and Wellness Company. Our mission  of â€Å"Good Food, Good Life†Ã‚  is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night. Today, the company operates in 86 countries around the world and employs nearly 280,000 people and has factories or operations in almost every country in the world. The Company's strategy is guided by several fundamental principles. Nestle's existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. Long-term potential is never sacrificed for short-term performance. The Company's priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives The company dates to 1867, when two separate Swiss enterprises were founded that would later form the core of Nestle. In the succeeding decades the two competing enterprises aggressively expanded their businesses throughout Europe and the United States. In August 1867 Charles A and George Page, two brothers from Lee County, Illinois, USA established the Anglo-Swiss Condensed Milk Company in Cham. Their first British operation was opened at Chippenham, Wiltshire in 1873 and In September 1867, in Vevey, Henri Nestle developed a milk-based baby food and soon began marketing it. The following year, 1868 saw Daniel Peter begin seven years of work perfecting his invention, the milk chocolate manufacturing process; M. Nestle's was the crucial cooperation M. Peter needed to solve the problem of removing all the water from the milk added to his chocolate and thus preventing the product from developing mildew. Henri Nestle retired in 1875, but the company, under new ownership, retained his name as Farine Lactee Henri Nestle. In 1877 Anglo-Swiss added milk-based baby foods to its products, and in the following year the Nestle Company added condensed milk, so that the firms became direct and fierce rivals. In 1905 the companies merged to become the Nestle and Anglo-Swiss Condensed Milk Company, retaining that name until 1947, when the name Nestle Alimentana SA was taken as a result of the acquisition of Fabrique de Produits Maggi SA (founded 1884) and its holding company, Alimentana SA of Kempttal, Switzerland. Maggi was a major manufacturer of soup mixes and related foodstuffs. The company’s current name was adopted in 1977. By the early 1900s, the company was operating factories in the United States, United Kingdom, Germany and Spain. World War I created new demand for dairy products in the form of government contracts; by the end of the war, Nestle's production had more than doubled. After the war, government contracts dried up and consumers switched back to fresh milk. However, Nestle's management responded quickly, streamlining operations and reducing debt. The 1920s saw Nestle's first expansion into new products, with chocolate the company's second most important activity. Nestle felt the effects of World War II immediately. Profits dropped from US$20 million in 1938 to US$6 million in 1939. Factories were established in developing countries, particularly Latin America. Ironically, the war helped with the introduction of the company's newest product, Nescafe (â€Å"Nestle's Coffee†), which was a staple drink of the US military. Nestle's production and sales rose in the wartime economy. The end of World War II was the beginning of a dynamic phase for Nestle. Growth accelerated and companies were acquired. In 1947 came the merger with Maggi seasonings and soups. Crosse & Blackwell followed in 1950, as did Findus (1963), Libby's (1971) and Stouffer's (1973). Diversification came with a shareholding in L’Oreal in 1974. In 1977, Nestle made its second venture outside the food industry by acquiring Alcon Laboratories Inc. In 1984, Nestle's improved bottom line allowed the company to launch a new round of acquisitions, notably American food giant Carnation and the British confectionery company Rowntree Mackintosh in 1988, which brought the Willy Wonka Brand to Nestle. The first half of the 1990s proved to be favorable for Nestle: trade barriers crumbled and world markets developed into more or less integrated trading areas. Since 1996 there has been acquisitions including San Pellegrino (1997), Spillers Pet foods (1998), and Ralston Purina (2002). There were two major acquisitions in North America, both in 2002: in June, Nestle merged its U. S. ice cream business into Dreyer's, and in August a US$2. 6 billion acquisition was announced of Chef America, the creator of Hot Pockets. In the same time frame, Nestle came close to purchasing the iconic American company Hershey's, one of its fiercest confectionery competitors, though the deal fell through. Another recent purchase included the Jenny Craig weight loss program for US$600 million. In December of 2005, Nestle bought the Greek company Delta Ice Cream for â‚ ¬240 million. In January of 2006, it took full ownership of Dreyer's, thus becoming the world's biggest ice cream maker with a 17. 5% market share. In November of 2006, Nestle purchased the Medical Nutrition division of Novartis Pharmaceutical for $2. B, also acquiring in 2007 the milk flavoring product known as Oval tine. In April of 2007, returning to its roots, Nestle bought baby-food manufacturer Gerber for $5. 5 billion. In December of 2007, Nestle entered in a strategic partnership with a Belgian chocolate maker Pierre Marcolini. Nestle agreed to sell its controlling stake in Alcon to Novartis on 4 January, 2010. The sale was to form part of a broader US $39. 3 billion offer, by Novartis, for full acquisition of the world’s largest eye-care company 2. . 2 Mission Nestle strives to be a leader in nutrition, health and wellness, with the belief that  good food is central to health and wellness. At the Nestle Research Center, nutrition research meets food innovation to bring consumers of all ages and stages of life, foods and beverages that contribute to health and wellness, while offering remarkable taste and convenience 2. 3. 3 Vision At Nestle, we believe that research can help us make better food so that people live a better life. Good Food is the primary source of Good Health throughout life. We strive to bring consumers foods that are safe, of high quality and provide optimal nutrition to meet physiological needs. In addition to Nutrition, Health and Wellness, Nestle products bring consumers the vital ingredients of taste and pleasure. As consumers continue to make choices regarding foods and beverages they consume, Nestle helps provide selections for all individual taste and lifestyle preferences. Research is a key part of our heritage at Nestle and an essential element of our future. We know there is still much to discover about health, wellness and the role of food in our lives, and we continue to search for answers to bring consumers Good Food for Good Life† 2. 3. 4 Business Principles The Nestle Corporate Business Principles are at the basis of our company’s culture, which has developed over the span of 140 years. Corporate Business Principles will continue to evolve and adapt to a changing world, our basic foundation is unchanged from the time of the origins of our Company, and reflects the basic ideas of fairness, honesty, and a general concern for people. Nestle is committed to the following Business Principles in all countries, taking into account local legislation, cultural and religious practices: 1. Nutrition, Health and Wellness :-Our core aim is to enhance the quality of consumers lives every day, everywhere by offering tastier and healthier food and beverage choices and encouraging a healthy lifestyle. We express this via our corporate proposition Good Food, Good Life. 2. Quality Assurance and product safety everywhere in the world, the Nestle name represents a promise to the consumer that the product is safe and of high standard. . Consumer Communication :-We are committed to responsible, reliable consumer communication that empowers consumers to exercise their right to informed choice and promotes healthier diets. We respect consumer privacy. 4. Human rights in our business activities :-We fully support the United Nations Global Compact’s (UNGC) guiding principles on human rights and labor and aim to provide an example of good human rights’ and labor practices throughout our business activities. 5. Leadership and personal responsibility:- Our success is based on our people. We treat each other with respect and dignity and expect everyone to promote a sense of personal responsibility. We recruit competent and motivated people who respect our values, provide equal opportunities for their development and advancement, protect their privacy and do not tolerate any form of harassment or discrimination. 6. Safety and health at work:- We are committed to preventing accidents, injuries and illness related to work, and to protect employees, contractors and others involved along the value chain. 7. Supplier and customer relations:- We require our suppliers, agents, subcontractors and their employees to demonstrate honesty, integrity and fairness, and to adhere to our non-negotiable standards. In the same way, we are committed towards our own customers. 8. Agriculture and rural development :-We contribute to improvements in agricultural production, the social and economic status of farmers, rural communities and in production systems to make them more environmentally sustainable. 9. Environmental sustainability :-We commit ourselves to environmentally sustainable business practices. At all stages of the product life cycle we strive to use natural resources efficiently, favor the use of sustainably-managed renewable resources, and target zero waste. 10. Water:-We are committed to the sustainable use of water and continuous improvement in water management. We recognize that the world faces a growing water challenge and that responsible management of the world’s resources by all water users is an absolute necessity. 2. 3. 5 Management Nestle has a Board of Directors, led by our Chairman Peter Brabeck-Letmathe, who was the former Nestle CEO. There are 14 members of the Board of Directors. The day to day management of the Nestle business is taken care by the Executive Board members. The 13 designated Board Members manage diverse parts of the global business. Nestle Group is managed by geographies (Zones Europe, Americas and Asia/Oceania/Africa) for most of the food and beverage  business, with the exceptions of Nestle Waters, Nestle Nutrition, Nestle Purina Pet care, Nespresso, Nestle Professional and Nestle Health Science which are managed on a global basis – these we call the Globally Managed Businesses. We also have joint ventures such as Cereal Partners Worldwide and Beverage Partners Worldwide. NAME| DESIGNATIONS| Paul Bulcke | Chief Executive Officer, Nestle S. A. Member of Nestle Board of Directors: Chairman's and Corporate Governance Committee | Werner J. Bauer | Executive Vice President Chief Technology Officer Head of Innovation, Technology, Research and Development | Frits van Dijk | Executive Vice President Zone Director for Asia, Oceania, Africa and Middle East | Jose Lopez| Executive Vice President operations| John J. Harris| Executive Vice President Chairman and CEO of Nestle Waters| James Singh | Executive Vice President Finance and Control, Legal, IP, Tax, Treasury, Global Nestle Business Services | Laurent Freixe | Executive Vice President Zone Director for Europe| Petraea Heynike | Executive Vice President Responsible for the Strategic Business Units, Marketing, Sales and Nespresso | Chris Johnson| Executive Vice President Zone Director for United States of America, Canada, Latin America, Caribbean | Marc Caira | Deputy Executive Vice President CEO of Nestle Professional | Jean-Marc Duvoisin | Deputy Executive Vice President Head of Human Resources and Centre Administration | Nandu Nandkishore | Deputy Executive Vice President Head of Nestle Nutrition | David P. Frick | Senior  Vice PresidentCorporate Governance, Compliance and Corporate Services | Committees : Committees : Committees : Committees : 2. 3. 4 Financials Items | Amounts| Revenue| CHF 109. 72 billion (2010)| Operating Income| CHF 16. 19 billion (2010)| Profit | CHF 34. 23 billion (2010)| Source:-www. nestle. com 2. 4 Nestle India 2. 4. 1 History of Nestle India Nestle is one of the oldest food MNC operating in India, with a presence of over a century. For a long time, Nestle India’s operations were restricted to importing and trading of condensed milk and infant food. Over the years, the Company expanded its product range with new products in instant coffee, noodles, sauces, pickles, culinary aids, chocolates and confectionery, dairy products and mineral water. Nestle’s relationship with India dates back to 1912, when it began trading as The Nestle Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market. Nestle has been a partner in India's growth for over nine decades now and has built a very special relationship of trust and commitment with the people of India. The Company's activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers, suppliers of packaging materials, services and other goods. Nestle India Ltd, 51% subsidiary of Nestle SA of Switzerland, is among the leading branded food player in the country. It has a broad based presence in the foods sector with leading market shares in instant coffee, infant foods, milk products and noodles. It has also strengthened its presence in chocolates, confectioneries and other semi processed food products during the last few years. With seven factories and a large number of co-packers, Nestle India is a vibrant company that provides consumers in India with products of global standards and is committed to long-term sustainable growth and shareholder satisfaction. The Company insists on honesty, integrity and fairness in all aspects of its business and expects the same in its relationships. This has earned it the trust and respect of every strata of society that it comes in contact with and is acknowledged amongst India's ‘Most Respected Companies' and amongst the ‘Top Wealth Creators of India'. After nearly a century-old association with the country, today, Nestle India has presence across India with 7 manufacturing facilities and 4 branch offices spread across the region. Nestle India’s first production facility, set up in 1961 at Moga (Punjab), was followed soon after by its second plant, set up at Choladi (Tamil Nadu), in 1967. Consequently, Nestle India set up factories in Nanjangud (Karnataka), in 1989, and Samalkha (Haryana), in 1993. This was succeeded by the commissioning of two more factories – at Ponda and Bicholim, Goa, in 1995 and 1997 respectively. The seventh factory was set up at Pantnagar, Uttarakhand, in 2006. The 4 branch offices in the country help facilitate the sales and marketing of its products. They are in Delhi, Mumbai, Chennai and Kolkata. The Nestle India Head office is located in Gurgaon, Haryana. The Company continuously focuses its efforts to better understand the changing lifestyles of India and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness through its product offerings. The culture of innovation and renovation within the Company and access to the Nestle Group's proprietary technology/Brands expertise and the extensive centralized Research and Development facilities gives it a distinct advantage in these efforts. It helps the Company to create value that can be sustained over the long term by offering consumers a wide variety of high quality, safe food products at affordable prices. Nestle India has products of truly international quality under internationally famous brand names such as NESCAFE, MAGGI, MILKYBAR, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTLE Milk, NESTLE SLIM Milk, NESTLE Fresh ‘n' Natural Dahi and NESTLE Jeera Raita. Nestle India is a responsible organization and facilitates initiatives that help to improve the quality of life in the communities where it operates. 2. 4. 2 Management NAME| DESIGNATIONS| Antonio Helio Waszyk| Chairman and Managing DirectorMember of the the Shareholder / Investor Grievance Committee| Shobinder Duggal| Director   Ã¢â‚¬â€œ Finance & Control| Christian Schmid| Director – Technical| Michael W. O. Garrett| Non Executive DirectorMember of the Audit Committee| Dr. Rakesh Mohan| Non Executive Director| Ravinder Narain| Non Executive DirectorMember of the Audit CommitteeChairman of the Shareholder / Investor Grievance Committee| Dr. Swati A. Piramal| Non-Executive Director| Richard Sykes| Alternate Director to Mr. Michael W. O GarrettGeneral Counsel of Asia, Oceania ,Africa, Middle East Region| 2. 4. 3 Financials Items| Amounts | Revenue| 590102 lakhs (2009-2010)| Net income| 81866 lakhs(2009-2010)| Source:-www. nestle. in/financial statements CHAPTER – THREE 3. 1 THEORITICAL BACKGROUND International marketing (IM) refers to marketing carried out by companies overseas or across national borderlines. This strategy uses an extension of the techniques used in the home country of a firm. It refers to the firm-level marketing practices across the border including market identification and targeting, entry mode selection, marketing mix, and strategic decisions to compete in international markets. International marketing is more concerned with micro level of the market and uses the company as a unit of analysis. According to the American Marketing Association (AMA) â€Å"international marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. † Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objective. Marketing strategy involves careful scanning of the internal and external environments which are summarized in a SWOT analysis . Internal environmental factors include the marketing mix, plus performance analysis and strategic constraints External environmental factors include customer analysis, competitor analysis, target market analysis, as well as evaluation of any elements of the technological, economic, cultural or political/legal environment likely to impact success. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement. Combination of marketing elements used in the sale of a particular product. The marketing elements center around four distinct functions, sometimes called the Four Ps: Product, Price, Place (of distribution), and Promotion. All these functions are considered in planning a marketing strategy, and any one may be enhanced, deducted, or changed in some degree in order to create the strategy necessary to efficiently and effectively sell a product. The term marketing mix refers to the four major areas of decision making in the marketing process that are blended to obtain the results desired by the organization. The four elements of the marketing mix are sometimes referred to the four Ps of marketing. The marketing mix shapes the role of marketing within all types of organizations, both profit and nonprofit. Each element in the marketing mix, product, price, promotion, and place consists of numerous sub elements. Marketing managers make numerous decisions based on the various sub elements of the marketing mix, all in an attempt to satisfy the needs and wants of consumers. FIGURE 1. 3 3. 2 Product The first element in the marketing mix is the product. A product is any combination of goods and services offered to satisfy the needs and wants of consumers. Thus, a product is anything tangible or intangible that can be offered for purchase or use by consumers. A tangible product is one that consumers can actually touch, such as a computer. An intangible product is a service that cannot be touched, such as computer repair, income tax preparation, or an office call. Other examples of products also include places and ideas The strategies involved in the product mix includes:- 3. 2. 1 Product strategies in international market Although products in the international industrial market are more homogeneous than consumer products, there are more product variations internationally than domestically due to the greater number of international economic, cultural, and political/legal variables. 3. 3 Market segmentation Is a Process of defining and sub-dividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics. Its objective is to design a marketing mix that precisely matches the expectations of customers in the targeted segment. Few firms are big enough to supply the needs of an entire market. The four basic market segmentation-strategies are based on (a) behavioural (b) demographic, (c) psychographic, and (d) geographical differences. 3. 3. 1 Market Segmentation Strategies. * Behavioural Segmentation: Behavioural segmentation is based on the customer's needs and subsequent reaction to those needs or toward the purchase of intended products and/or services. This study is conducted on all variables that are closely related to the product itself, like loyalty to a particular brand, cost effectiveness in terms of benefits and usage, circumstances responsible for the purchase, whether the customer is a regular, a first timer or and has the potential to become a customer, and whether the readiness to buy is linked to status. * Demographic Segmentation: Demographic segmentation refers to a wide study of the potential customers. While marketing a product many variables like age, gender, education, income, size of the family, occupation, socioeconomic status, culture and religion, language and nationality are taken into account. There are many instances where such a segmentation has worked very profitably, toys and clothes for every age group, certain food products that do well in certain counties and don't in some, either due to cultural or religious reasons. Demographic segmentation plays a vital role in determining whether a product can be mass marketed * Psychographic Segmentation: Segmenting people according to their lifestyles and values, and how they translate into consumption or purchases of products of services is what psychographic segmentation is all about. How one's interest, opinions, values, attitude and the activities they perform, all affects how and why a group of people would lean towards one product more than others. A high status would translate into an expensive flying habit, while a thrift value will translate into an economy flight. * Geographical Segmentation: Geographical segmentation is done by dividing people (markets) into different geographical locations. The country, state, or neighbourhood, the king of gentry, climate, and size of a place segmented into size of its age wise population, etc. all play a role in devising market strategies. This helps the producer and the marketers to understand what will sell and what won't, For example, a market for winter wear would definitely not work in warm regions. 3. 3. 2 International market segmentation Segmentation, in marketing, is usually done at the customer level. However, in international marketing, it may sometimes be useful to see countries as segments. This allows the decision maker to focus on common aspects of countries and avoid information overload. 3. 4 Positioning In marketing, positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. Although there are different definitions of Positioning, probably the most common is: identifying a market niche for a brand, product or service utilizing traditional marketing placement strategies (i. e. price, promotion, distribution, packaging, and competition). Also positioning is defined as the way by which the marketers creates impression in the customers mind. 3. 5 Targeting Targeting is the next step in the sequential process and involves a business making choices about segment on which resources are to be focused. There are three major targeting strategies: undifferentiated, concentrated, and differentiated. During this process the business must balance its resources and capabilities against the attractiveness of different segments. Target Marketing involves breaking a market into segments and then concentrating the marketing efforts on one or a few key segments. Target marketing can be the key to a business’s success. 3. 6 Product standardization Product standardization means that a product originally designed for a local market is exported to other countries with virtually no change, except perhaps for translation of words and other changes. It is an efficient method to reduce costs and increase quality. By minimizing the differences in your products, you are able to rapidly increase production, streamline distribution, decrease raw material costs and reinforce product branding. The best product standardization strategies allow you to balance the need for targeted adaptation with the cost savings of standardization. 3. 6. 1Benefits of product standardization in international marketing * Projecting a global product image. * Catering to customers globally . * Cost savings in terms of economies of scale in production. * Designing and monitoring various components of marketing mix economically 3. 7 Packaging strategy An important part of the product decision making process surrounds the packaging of the product. An effective packaging strategy can contribute to the firm’s competitive advantage. Some points to consider when developing a packaging strategy include 1. Make sure the packaging is unique. 2. Make sure it performs the function required. 3. Make sure packaging promotes your product and brand. 4. Make sure packaging is identifiable and reinforces the brand. Although not a separate part of the marketing mix, having a good packaging strategy is an essential part of the marketing strategy of a firm. A good strategy will comprise of the packaging being unique, functional, promotes the brand, reinforces the brand and is easily identifiable by the consumer. 3. 8 Product adaptation Marketing strategy whereby new products are based on modification or some improvement on existing or competing products, and not on pioneering innovations. It is the strategy of a follower. The need to develop an adaptation strategy can lead to changes in pricing, delivery and packaging 3. 8. 1 Benefits of product adaptation in international markets * Enable a firm to tap markets which are not accessible due to mandatory requirements * Helps in gaining a market share * Increase sales leading to economies of scale 3. 9 PRICE The second element in marketing mix is price. Price is simply the amount of money that consumers are willing to pay for a product or service. In earlier times, the price was determined through a barter process between sellers and purchasers. In modern time Pricing new products and pricing existing products require the use of different strategies. For example, when pricing a new product, businesses can use either market-penetration pricing or a price-skimming strategy. A market-penetration pricing strategy involves establishing a low product price to attract a large number of customers. By contrast, a price-skimming strategy is used when a high price is established in order to recover the Cost of a new product development as quickly as possible. 3. 9. 1 Pricing strategy in international marketing Although pricing practices appear to be no different internationally than nationally, in some respects there is wide divergence. These differences occur in the areas of transfer pricing, dumping, and governmental influence over price. 3. 9. 2Transfer Pricing Transfer prices are the prices placed on products as they are transferred between units belonging to the same company. Transfer prices can be used to mitigate the effects of government regulation. 3. 9. 3 Dumping. Dumping is disposing of goods in a foreign country at less than their full cost. Goods will sometimes be exported at prices that only cover direct costs to dispose of excess inventories. Companies sell their excess inventories overseas to avoid disturbing their own national markets (e. g. , reducing prices or causing price wars at home. ) There are five price-adjustment strategies: * Discount pricing and allowances include cash discounts, functional discounts, seasonal discounts, trade-in allowances, and promotional allowances. * Discriminatory pricing occurs when companies sell products or services at two or more prices. These price differences may be based on variables such as age of the customer, location of sale, organization membership, time of day, or season. * Geographical pricing is based on the location of the customers. Products may be priced differently in distinct regions of a target area because of demand differences. * Promotional pricing happens when a company temporarily prices products below the list price or below cost. Products priced below cost are sometimes called loss leaders. The goal of promotional pricing is to increase short-term sales. * Psychological pricing considers prices by looking at the psychological aspects of price. For example, consumers frequently perceive a relationship between product price and product quality. 3. 10 PROMOTION Promotion is the third element in the marketing mix. Promotion is a communication Process that takes place between a business and its various public. Public are those individuals and organizations that have an interest in what the business produces and offers for sale. Thus, in order to be effective, businesses need to plan promotional activities with the communication process in mind. There are four basic promotion tools: Advertising, sales promotion, public relations, and personal selling. Each promotion tool has its own unique characteristics and function. 3. 10. 1Promotional strategy in international marketing In the international industrial market, the primary element of the promotional mix is personal selling, for only through personal selling can the coordination so essential to the industrial buyer-seller interface be effectively achieved. Sales promotion in the form of trade fairs is playing an increasingly important role in international marketing because so many prospects can be contacted in one place and because they enable quick comparisons of products. Direct mail is also becoming popular, although mailing lists are usually difficult to obtain. The use of publicity, although growing in popularity, is limited due to language difficulties and media coverage. Advertising is given little attention in the international industrial market, perhaps because of the difficulties in determining media coverage and numerous, widely varying, governmental regulations. 3. 10. 2 Advertising It is described as paid, non personal communication by an organization by using various media to reach its various publics. The purpose of advertising is to inform or persuade a targeted audience to purchase a product or service, visit a location, or adopt an idea. Advantages of advertising include the ability to reach a large group or audience at a relatively low cost per individual contacted. Further, advertising allows organizations to control the message, which means the message can be adapted to either a mass or a specific target audience. Disadvantages of advertising include difficulty in measuring results and the inability to close sales because there is no personal contact between the organization and consumers. 3. 10. 2. 1 Advertising media There is a huge variety of media available through which a business can conduct an advertising campaign. * Advertising media includes * Newspapers * Magazines * Internet * Television * Radio * Cinema * Posters * Billboards 3. 10. 2. 2 Advertising appeals There are various appeals in advertising which aims aim to influence the way consumers view themselves and how buying certain products can prove to be beneficial for them. The most important types of advertising appeals include emotional and rational appeals. Emotional appeals are often effective for the youth while rational appeals work well for products directed towards the older generation. * Emotional Appeal An emotional appeal is related to an individual’s psychological and social needs for purchasing certain products and services. Many consumers are emotionally motivated or driven to make certain purchases. Advertisers aim to cash in on the emotional appeal and this works particularly well where there is not much difference between multiple product brands and its offerings. Emotional appeal includes personal and social aspects. * Fear Appeal Fear is also an important factor that can have incredible influence on individuals. Fear is often used to good effect in advertising and marketing campaigns of beauty and health products including insurance. Advertising experts indicate that using moderate levels of fear in advertising can prove to be effective. * Rational appeal Rational appeals as the name suggests aims to focus on the individual’s functional, utilitarian or practical needs for particular products and services. Such appeals emphasize the characteristics and features of the product and the service and how it would be beneficial to own or use the particular brand. Print media is particularly well suited for rational appeals and is often used with good success. It is also suited for business to business advertisers and for products that are complex and that need high degree of attention and involvement. * Endorsement appeal Celebrities and well known personalities often endorse certain products and their pitching can help drive the sales. 3. 10. 3Sales promotion The second promotional tool is sales promotion. Sales promotions are short-term incentives used to encourage consumers to purchase a product or service. There are three basic categories of sales promotion: consumer, trade, and business. Consumer promotion tools include such items as free samples, coupons, rebates, price packs, premiums, patronage rewards, point-of-purchase coupons, contests, sweepstakes, and games. Trade-promotion tools include discounts and allowances directed at wholesalers and retailers. Business-promotion tools include conventions and trade shows. Sales promotion has several advantages over other promotional tools in that it can produce a more immediate consumer response, attract more attention and create product awareness, measure the results, and increase short-term sales. 3. 10. 3. 1 Sales promotion in international marketing Sales promotion refers to any consumer or trade program of limited duration that adds tangible value to a product or brand. Sales promotion techniques in the international market consist of the following: promotional pricing tactics, contests, sweepstakes and games, premium and specialties, dealer loaders, merchandising materials, tie-ins and cross promotions, packaging, trade shows 3. 10. 4 Public relation Public relation is the third promotional tool. An organization builds positive public relation with various groups by obtaining favourable publicity, establishing a good corporate image, and handling or heading off unfavourable rumours, stories, and events. Organizations have at their disposal a variety of tools, such as press releases, product Publicity, Official communications, lobbying, and counselling to develop image. Public relations tools are effective in developing a positive attitude toward the organization and enhance the credibility of a product. Public relations activities have the drawback that May not provide an accurate measure of their influence on sales. 3. 0. 4. 1 Public relation in international marketing A company’s public relations (PR) effort should-foster goodwill and understanding among constituents both inside and outside the company. The basic tools of PR include news releases, newsletters, press conferences, tours of plants and ether company faciliti es, articles in trade or professional journals, company publications and brochures, TV a Similar essay: Reed Supermarkets: a New Wave of Competitors