Rhenier John C.

Manalo Marketing Management

BSBA MM 3-1D Activity 1 – Chapter 1 and 2

Chapter 1 - Defining Marketing for the New Realities (Pages 52-55)

Marketing Excellence: Nike

1. What are the pros, cons, and risks associated with Nike’s core marketing
strategy?

Pros

• Nike aims to focus on creating and meeting the target customers’ demand
by not being limited to any fields in the industry like sponsoring to more
sports like soccer, football, tennis, etc., and also into fashion.
• Nike is being smart on choosing the right events and people (endorsers) for
their brand such us the winning team of World Cup, and other local, national,
and international athletes through sports events.
• Nike's athlete endorsements help to motivate and reach customers, and the
company's most recent technological breakthroughs have resulted in more
devoted and emotionally attached customers.
• Through various marketing strategies, Nike consistently following the trends
and adapt to the changes of consumer preferences such as new product
development and styles – eventually enhanced their brand and image.

Cons

• We all know that Nike brand is now an expensive brand compare to other
products that delivers internationally.
 • Replica – due to its expensive value but enhanced product brand and
image, some businessman, especially here in the Philippines and in China,
always tend to create exact replicas of Nike products and sell it to a cheaper
price that affects the company’s profit.
• Choosing the people to endorse the brand may be a bit foul if an athlete or
a celebrity is involved in social criticisms.

Risks

• By launching every creations and ideas like new product development and
styles, there are always competitors who are wide awake and will always focus
on your steps as being the number one in the world.

2. If you were Adidas, how would you compete with Nike?

A huge consideration on this is that we have to accept the fact that Nike is
the leading brand worldwide. But it is also the biggest advantage fo Adidas or other
well-known brands as their competitors – because everyone knows their strategy
and the opposing brands will focus on what would they miss in the market.

If I were Adidas these strategies should be implemented:

• Adidas should give attention to Generation Z consumers. If the brand is

successful in acquiring younger market shares, there is a good chance that
they will turn out to be loyal customers who will stick with the brand in the long
run, and they may still carry the thought of Adidas as their comfort brand that
could pass on to the next generation.
• There are still some places around the world that Nike did not focus on, like
some regions here in Asia. It is an opportunity for Adidas to gather this area
by sponsoring events and athletes to lead the market here.
 • Contributing to climate change prevention and ecosystem preservation. Some
customers, and maybe the government, are very conscious about how the
products are made especially if it is for the environment. Adidas should focus
on creating products that is valuable to the people and ecosystem.

Marketing Excellence: Google

1. With a portfolio as diverse as Google’s, what are the company’s core brand
values?

Google’s Core Brand Values:

Good Work Environment – I have always seen some vlogs online from the people
who works at Google and it’s always a positive feedback from the employees to
their beloved corporation that handles them with value and respect. I could from
their experience that they are treated well and give them lots of incentives and
benefits as long as they also do the best for the company.

Doing the right things – as positive as their corporate culture is, the inside work of
Google is very ethical. Honesty and integrity at work are their foundation everyday
as it reflects to their gross profit – by doing good things.

Offering Prime Online Services – effectively and efficiently Google never

disappoints its market. By demand of adding tools for workers-in-need like for their
statistical data, there are so many features that Google provides.

Technology and Innovation – as the leading search in engine in the world that
covers so many features, tools and other important software, Google always
innovates and come up with new creations and ideas.
 Marketing Asset Management – with Web marketing program, Google helps so
many marketer and advertiser on their expertise by monitoring and optimizing
feature they provide.

2. What’s next for Google? Is the company right to put so much focus on
Mobile?

Google's corporate mission is "to organize the world's information and make
it universally accessible and useful," so the company's primary focus is on
developing the perfect search engine. Google search works because it analyzes
millions of links on other websites to determine which sites provide the most
valuable content. Through its strategic business focus and constant product
innovation, the company has become the global market leader for search engines.
Google develops and distributes its products for free, which has attracted a large
number of customers a slew of online advertisers looking for specific advertising
space Because online advertising accounts for approximately 96 percent of its
revenue, creating new advertising space is critical to the company's growth.

“As Google expanded into mobile technology, it quickly became the leader
in mobile advertising with 75 percent market share for search ads and
approximately 50 percent market share for all mobile ads.” Each product's goal
was to help users find the information they needed and to get things done better,
faster, and easier than before. As Google looks to the future, the company wants
to provide the ultimate mobile solution—Google mobile devices as well as mobile
services—so that users can use everything Google at all times. Google's ultimate
goal is to reach as many people as possible through the Web, whether through
PCs or mobile devices. The more people who use the Internet, the more
advertising Google can sell.
Chapter 2 - Developing Marketing Strategies and Plans (Pages 80-82)

Marketing Excellence: Electrolux

1. Evaluate Electrolux’s strategy in light of its vision and the global trends in
the household appliance industry.

• Electrolux aspires to be the best appliance company in the world, as judged by its
customers, employees, and shareholders.
• Its strategy is built on four pillars: innovative products, operational excellence,
profitable growth, and committed employees.
• Production efficiency has increased as a result of the firm's restructuring.
• Electrolux is indulged in horizontal integration for integrative growth.
• As global trends shift toward more sustainable products, their line of ultra-silent
products aids in the prevention of noise pollution.
• They used "same product architecture, differentiated design" to create local
variations for different markets.
Electrolux has a competitive advantage due to the following factors: global
presence, consumer insight, professional legacy, sustainability, and a diverse
product range.

2. What benefits will Electrolux receive from the acquisition of GE Appliances?

How does it fit in with the strategic direction of the group? What other
strategic options can Electrolux pursue for future growth to achieve greater
global dominance?

“Benefits gained through acquisition of General Electric appliance gave Electrolux

control over the Kitchen and Laundry products. Ninety percent of the sales will be
with Electrolux and running its own Logistics and Distribution Network in North
America while 48.4% shareholding in Mexican Appliance Company. Through this
 acquisition Electrolux will have more financial strength and more global business
around the world.”

It fit in with the strategic direction of the group by continuing to grow through
acquisitions, as we have done in the past. The product list and product diversity
have expanded. The company is unfamiliar with the start-up of newer markets.
Under the company's banner, expand global reach and operational efficiency.
Creating a path to the Vision or Goal that the company wishes to achieve as well
as the technological advancements at the company.

To achieve greater global dominance, it must be price conscious in relation

to the country or region you are selling in. Aim to understand the customers' needs
and begin working toward them through a strong market research program that
includes pricing and offering some incentives to attract more customers. As part of
the market channeling improvement, raise brand awareness by emphasizing the
product's unique features.

Marketing Excellence: Emirates

1. How has Emirates been able to build a strong brand in the competitive airline
industry worldwide?

Emirates is the seventh largest airline in the world in terms of revenue and
it is AED83 billion. It has invested in the program called "Tailored Arrivals" which
allows the air traffic control to uplink to air craft new route by determining the speed
and flight profile from the air onto runway. Emirates' success can be attributed to
a marketing mix that emphasizes excellent customer service, product, and
equipment. Furthermore, Emirates is known for its commitment to the highest
quality standards in all aspects of their business, providing premium service
whether in first, business, or economy class. Emirates also creates a global
 competitive advantage by hiring 52,000 people from 162 different countries,
allowing them to be perceived as a global company operating in Dubai. Instead of
focusing on routes in the Middle East, this move allows them to demonstrate that
they are a company with multinational values that operates globally. Furthermore,
Emirates employs a multi-national crew to meet the expansion of new destinations
and the demands of its passengers, who travel to over 142 destinations in 80
countries.

2. What are some of the apparent weaknesses with the company’s strategic
direction? How can the airline address them?

Emirates has built a strong brand in the airline industry and strategically
positions itself, but they fall short of taking their competitors into account when
determining their future directions. Some of the company’s deficient directions
such as: over-confident about their position in the industry and ignore the
competition; they only target the elite class people as their customer which is also
a threat for them in future; if people get same service at a low price, they will go
for that instead of competing with other airlines.

Although Emirates has a strong brand position, if they want to maintain it in

the long run, they must make some changes in their strategic direction, as
mentioned above. Solutions might be the improvement in-flight service while
keeping completion offerings in mind and by repositioning and aggressively
evolving novel strategies in response to target market response.

3. With the decline of fuel prices globally, airline companies continue to reap
the benefits. What impact will this have on Emirates’ business strategy in
the future?
 The global drop in fuel prices will have a wide-ranging impact on Emirates'
business strategy. To reduce price-fluctuation risk on projected operating costs,
many airlines hedge a proportion of their future fuel needs six to 24 months in
advance by buying jet fuel or crude oil contracts from banks or on an oil futures
market. When the oil price is falling, options would be in favor of emirates as it is
cheaper to hedge forwards and get protection if prices go up. Slower growth is
expected in the coming years as heavy investments in new planes and premium-
class services begin to erode profit margins.