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3.1 International Market Research at Mayo Clinic Question - Assume you are the new marketing vice president at the Mayo Clinic. The CEO and the board have decided to epand their international sales revenues by !"" percent over the net #ve years. $rite a memo to your sta% outlining the marketing research that will be needed to support such a strategy. &e speci#c about sources o' secondary data and the best places and media 'or gathering primary data. Also( be speci#c about the best methods to use. •
Outlining the market research which needs to be done in order to support the growth strategy
Step 1: Defnition o the problem Existing customers
!eter !etermin mine e curre current nt satis" satis"act action ion le#el le#el o" patie patients nts and "actor "actors s that that cause cause satis"action or dissatis"action dissatis"action $erception o" doctors% medical technology% nursing care% physical "acilities% management and ethics $erception o" Mayo Clinic
&ew potential markets
$erception o" health insurance% medical care 'public and pri#ate( in di)erent markets $erception o" doctors% medical technology% nursing care% physical "acilities% management and ethics *atis"action or dissatis"action o" medical care ser#ices +ocal competitors as well as local pricing o" medical care ser#ices
Step 2: Development o the approach to the problem ,uantitati#e and -ualitati#e research based on data about potential market. Each potential market should be e#aluated separately and in the end compared within group group so that the most protable protable markets markets could could be chosen. chosen. Moreo#er% Moreo#er% another another market research should be organi/ed "or local market which will be "ocused on increasing satis"action o" existing customer as well as denition o" new potential target groups. Step 3: Formulating a research design 0ath 0ather er the the relia eliant nt data data "rom "rom seco second ndar ary y or prim primar ary y sour source ces% s% or both both.. Mayo Mayos s International International Marketing !epartment should analy/e a#ailable secondary inormation as a useul frst step . In"ormation re-uired ranges "rom the general statistical data to understa understand nd target target markets markets pre"erence pre"erences s in the healthca healthcare re industry industry to specic specic
market in"ormation about media and other e2cient means o" deli#ering in"ormation to the target market "or decisions about promotion. o nd out which countries #alue the 4* health care highly and where Mayo Clinic ser#ices may ha#e a competiti#e ad#antage o#er local ones we should conduct a multicultural research. It in#ol#es countries with di)erent languages% economies% social structures% beha#ior% and attitude patterns towards taking care o" their health. here are many studies conducted and statistical documents a#ailable online "or the secondary dada research. hese data are more widely a#ailable because they are commonly reported by the 4nited &ations and other international agencies. Once approximations "or health trends and pre"erences are established% Mayo will ha#e more understanding o" what additional primary research is needed.
Step 4: Doing feldwor and collecting data In order to ensure the best -uality% two methods o" market research are recommended to be used -uantitati#e and -ualitati#e. $rimary research will be conducted by "ocusing on one country at a time and using nati#e speaking research agents. Outside #endors who know the culture and the language will be necessary due to cultural di)erences that may lead to unwillingness or inability to participate% collect% or interpret responses 5 i" sur#eys are conducted by 4* marketers. he main goal is to gather as much cultural and historical in"ormation about our target market. 6hile conducting a sur#ey the target market has to be a random sample in a specic sample "rame. his way e#ery population member will ha#e an e-ual chance to be sur#eyed. his is a key o" ha#ing a true random sample and a#oiding bias. It is also recommended to conduct research about the local health pro#iders and a#ailability o" resources to treat the common and rare diseases "ound in such countries. ,ualitati#e data will be collected to nd out pre"erences and criteria people look "or in a good health pro#ider in their home country and whether they are satised or not. he primary research will be gathered by means o" mail and email sur#eys% "ocus groups% personal phone and "ace7to7"ace inter#iews% as well as direct obser#ation o" people in clinics and insurance o2ces. he methods will #ary according to customs and cultural di)erences among countries. Step !: "reparing and analy#ing data 8"ter conducting and processing research% Mayo Clinic researchers should analy/ed gathered data. 8nalysis o" the -uantitati#e data should deli#er insight into obtain specic responses regarding aspects o" the respondents beha#ior% intentions% attitudes% moti#es and demographic characteristics. ,uantitati#e research pro#ides the marketer with responses that can be presented with precise estimations. ,ualitati#e research with open7ended or
in7depth% and unstructured responses re9ects peoples thoughts and "eelings on the sub:ect. he purpose o" the research is to "ormulate and dene problem or situation more clearly and to determine rele#ant -uestions to be examined in subse-uent research. It is also used to stimulate ad message ideas and where interest centers on gaining an understanding o" a market. Step $: "reparing and presenting the report ;ased on the results o" analy/ed data% the nal report documenting the market research should be prepared. he report should include description o" the research methodology% data gathering process o#er#iew as well as the results and conclusions. Once all the research is collected% processed% and conclusions are drawn< the Mayo Clinic marketing department can decide on the best strategy to build awareness and% potentially% increase its international sales re#enues.
3.= *wi)er% higher% stronger% dearer. Case &ackground
> Co#ers the de#elopment o" paid broadcasting rights "or tele#ised sports "rom 1?@A until today. > he implication that sports immediacy and popularity has on the ad#ertising world. > he interaction o" pro"essional athletics institutionsBassociations and global communications companies. > he complexity o" the relationship between broadcasters% content pro#iders and ad#ertisers including ;;C% &;C% E*$&% ox and others. > he positi#e and negati#e e)ects o" that the money in#ol#ed in the industry has on sports% broadcasting rights and ad#ertisements. > Recent change and initiati#es that may impact on the "uture o" tele#ised sport and ad#ertising > #arious countries are mentioned throughout the case% with a specic "ocus on 8merica% 4nited Dingdom and 8ustralia.
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)ey *tatistics > he top eight tele#ision programs in 8merica are all sporting e#ents
> *ome 3 billion people watched part o" the = Olympiad. > he money that tele#ision has brought into pro"essional sport has put some o" the top players among the worlds highest7 paid entertainers > In 8merica% estimates o" total spending on sports rights by tele#ision companies is about F= billion a year Dey *tatistics > ox purchased the rights to a year o" &ational ootball +eague games "or about F@ billion. > Dirch% a 0erman group spent F=.= billion "or the worlds biggest soccer7 broadcasting rights to show the nals o" the 6orld Cup in == and =G outside 8merica. > or a 37second slot during the *uper ;owl% by most estimates networks are now asking and getting around F3 million
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+ssues , Challenges 7 he -uality o" immediacy7 *port also has a special -uality that makes it unlike almost any other sort o" tele#ision program immediacy. 7 ele#ision changing sport and #ice #ersa7he combination o" popularity and immediacy has created a symbiotic relationship between sport and tele#ision in which each is changing the other. 7 *port channels taking o#er screen time7 he combination o" popularity and immediacy has created a symbiotic relationship between sport and tele#ision in which each is changing the other. 7 Inability "or broadcasters to attain #alue "or money7he problem is that the #alue o" sport to #iewers 'Hconsumer surplus% as economists would put it( is much larger than the #alue o" most other sorts o" programming. 7 Charging #iewers to watch sport7In the next "ew years% the main new outlet "or sports programs will be digital tele#ision. 7 +osing track o" whats important7he biggest beneciaries o" tele#ised sport ha#e not been the clubs and bodies that run sports but the players
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ecommendations 7 ;enets o" J"ree7to7air tele#ised sport
7 8dapting tele#ision to suit sport 7 8#oiding a potential Jmarketing myopia 7 !eterring illegal streaming andBor piracy 7 Restricting the in9uence o" go#ernmentBpolitics 7 Maximi/ing the #alue o" sport 7 *topping tele#ised sport becoming completely subscription based
3.3 Marketing on the bottom o" the pyramid
1. In e#aluating the potential o" a ;O$ market segment there are certain "actors that need to be analy/ed in order to de#elop a marketing strategy. he "ollowing will be used as a guideline to establish possibility and #iability o" marketing to the ;O$.
Market opportunity ;eing the Hpoor sector o" the pyramid is there a marketing opportunityK 6ill people who struggle to sur#i#e buy con#ince goodsK In analy/ing the market opportunity o" the ;O$% as the case suggest with ma:or markets being more competiti#e and prots margins per supplier reducing% organi/ations are now unco#ering the potential o" tapping the ;O$. he ;O$ is a group that consists o" o#er @ billion people% that accounts "or L o" worlds population. 0i#en the si/e o" the market% protability is obtained by #olume o" sale rather than an indi#idual sale.
Consumer behavior a#ing an understanding o" the consumers in ;O$ can help organi/ation enter this market. 6ith earning less than F= a day the a#erage persons perception is a Hearn today% spend today attitude. Marketing to the ;O$ is not easy< its not making low -uality but a)ordable products% but catering to their specic needs which may re-uire ha#ing ad#ance technology to "acilitate the product a)ordability.
Marketing Mi 6ould there be a di)erence in the marketing mix when targeting ;O$K 6hat needs to be consideredK N $roduct In designing the product% one needs to understand that more emphasis is to be paid on the "unctionality rather than the "orm o" the product. 8s sighted in the case study in marking mobile phones to the ;O$% "unctionalities such as long battery li"e% a)ordability and extra #olume "or noisy en#ironment is #alued more than the "ancy way it looks. 8ttracting the ;O$ markets re-uire the products to be in smaller units which will "acilitate a)ordability. or example e#en in *ri +anka products such as *unsilk shampoo% &esca"e mix% Rinso washing power% Dist tomato sauce is sold in sachets which makes it a)ordable.
8pproaching the market in this way brings the product into the consideration set o" the poor "or the rst time 7 e#en i" they only buy the sachet once a month% collecti#ely these purchases can result in a substantial #olume o" product sale. he in"rastructure at the bottom o" the pyramid is o"ten poor and products may need to be adapted to withstand shortcomings such as 9uctuating #oltage% impure and intermittent water and mo#ement o#er unsealed roads or tracks.
N $ricing he techni-ue in price at the ;O$ segment is to ha#e low margins and high #olumes. *pecial consideration needs to be made to the purchasing power o" the segment. here are #arious ways o" o#ercoming the pricing issue in a ;O$ market as the case suggest% Installment payments 5 *ingar had adopted this method% where instead o" selling a sewing machine at the price o" F1 it was sold at an installment plan "or F p.m. 8nother example is at oy payments to purchase rBm to expand homes were sold at F11. p.w. at the end o" the year gi#en the #olume o" participants they made a prot o" F1. million. 8nother example is where industan +e#er% among the rst M&CPs to reali/e the potential o" IndiaPs rural market% has launched a #ariant o" its largest selling soap brand% +i"ebuoy at Rs.= "or gm. Coca7Cola has addressed the a)ordability issue by introducing the returnable =7ml glass bottle priced at Rs.. he initiati#e has led to AQ o" new drinkers "or coke coming "rom the rural markets. Earn and purchase as you work 5 engaging the customers to work and ha#ing the products sold at a discount. N !istribution 0i#en the poor state o" roads% it is an e#en greater challenge to regularly reach products to the #illage. Reaching the ;O$ is not always easy a company needs to nd low distribution methods to get the products across to this segment. or example IndiaPs largest M&C% industan +e#er% has built a strong distribution system which helps its brands reach the interiors o" the rural market. o ser#ice remote #illage bullock7carts and e#en boats are used. Coca7Cola% which considers rural India as a "uture growth dri#er% has e#ol#ed a hub and spoke distribution model to reach the #illages. +0 Electronics denes all cities and towns other than the se#en metro cities as rural and semi7urban market. 8s the case suggest employing women "rom the ;O$ can be employed to act as a distributor which is more e)ecti#e low cost means o" getting the products to those who need.
N $romotion *ince large parts o" ;O$ markets are not accessible to con#entional ad#ertising media% building awareness is another challenge. or example industan +e#er relies hea#ily on its own company7organi/ed media. 0odre: Consumer $roducts% which is trying to push its soap brands into the interior areas% uses Radio to reach the local people in their language. Coca7Cola uses a combination o" % Cinema and Radio to reach rural households. +0 Electronics uses #ans and road shows to reach rural customers. $hilips India uses wall writing and Radio ad#ertising to dri#e its growth in rural areas. 'lercher% =(
+mplications 'or international marketers he ;O$ segment will re-uire a deep understanding o" the local en#ironment and in#ol#e a Jbottom7up approach resulting "rom identi"ying and shoring up the existing social in"rastructure. *trategies need to be culturally sensiti#e and relationship based. *uch as N Creation o" a uni-ue approach tailored to the local market that is both culturally sensiti#e and economically "easible. N Identi"y the real needs o" the consumer and product adaptation to meet these needs in a way that creates opportunity "or local participation< N !e#elopment o" ways to o#ercome the in"rastructure problems "aced by ;O$ consumers. N !etailed research into the ;O$ market as to their specic needs and characteristics. N ry to utili/e ;O$ segment in the distribution and promotion.
. In the past the role o" a marketer was to anticipate and identi"y customer needs. owe#er gi#en the complexities and the increase global competition in todays context% marketers now also nd themsel#es creating a need in the market. Marketing to the ;O$ is an example "or the latter.
he ;O$ consists o" the poorest population with low le#els o" disposable income. One would expect it to be spent on necessities. owe#er companies now are creating a need amongst the bottom o" the pyramid "or con#enience and shopping goods. or instance due to the high price o" a lap top or e#en a bottle o" shampoo% the lower end will not e#en consider this product as a need. ;y making it a)ordable through installment payments the products are now attracti#e and e#en considered due to the a)ordability "actor. Companies also use smaller units to o#ercome a)ordability "actor. hese tactics creates a demand within ;O$ segment "or those products not e#en considered be"ore. Is it exploitation "or company to make prots "rom the population at the bottom o" the lineK 8s a business entity prots is one o" the main concerns howe#er marketing to the bottom o" the pyramid also has a social responsibility attached to it. 8lthough they ha#e little disposable income considering their purchasing power% alterations are done to make the product a)ordable as explained abo#e. $rotability there"ore is not made by selling to an indi#idual in the ;O$ segment< the company can actually make losses considering a single transaction. owe#er prot is earned "rom the #olume o" the purchase and the si/e o" the ;O$ collecti#ely. Rather than exploiting the poor its merely raising their standard o" li#ing through and through the #olume the company in turn earns a prot creating a win win situation. hrough marketing to the ;O$ N Making products such as toiletries impro#e hygiene and wellbeing. N ;y selling computers. *ewing machines% it gi#es a chance to impro#e their skills and ability which will they can benet N ;y ha#ing loans and employment catered to the ;O$ can stimulate economic growth Sust because there are called bottom o" the pyramid they should not be expected to stagnate as the same le#el% in a global attempt to irradiate po#erty marketing to the ;O$ is the start.
3.@ Continued 0rowth "or Tara and Inditex !. $hat are the ways that +ndite ensures that /'ast 'ashion0 is truly 'ast1 Inditex ensures that its "ashion is "ast through its supply chain e)orts. hey ha#e created new methods to enable store managers to order and display merchandise "aster and added cargo routes "or shipping goods. he company ships clothing straight "rom the "actory to stores and makes two7thirds o" its goods in *pain and nearby countries% compared to most competitors who manu"acture most o" their clothing in 8sia. Inditex has their sales managers monitoring computers% which are
reporting sales at e#ery store around the world. 6hen a garment does well or "ails% they are able to -uickly tell designers i" they need to come up with new ideas. hey also ha#e generated in house store "ronts where they de#elop new marketing promotions e#ery two weeks. . $hat are the important attributes o' a /'ast 'ashion0 retailer to customers1 To store managers1 Retailer to costumer 0i#e new product "ast to shops< *tocked stores with new designs twice a week< *hip clothes straight "rom the "actory to stores to impro#e product a#ailability< he important H"ast "ashion attributes to the customer is that the retailer is pro#iding the latest "ashion to them as soon as it comes out. hey want to make sure that they are getting the latest trends rst and that they are not buying out dated clothing. It is also important to the customer that the retailer has what they are looking "or when they come. hey do not want the retailer to be out o" stock e#ery time they come in. I" they are out o" stock% the attribute o" ha#ing their suppliers close to the retailers means that they would be able to re7stock their merchandise "airly -uick. Retailer to store managers a#e in"ormation about rate o" sale o" new collection as "ast as possible< &ew collection has labels in time o" arri#al 'to make "ast identication and hang on store( < *tore managers use hand7held computers that show how garments rank by sale% so clerks can re7order bestsellers in less than an hour.
2. $hy would a retailer introduce their online store country-by country1 $hy +ndite slow to embrace online sales when it was is so tech-savvy in other ways1 here is a number o" reasons why a company might chose to stay away "rom a certain type o" marketing. *ome o" the primary reason could include the companys business model% its core competencies% or e#en the exclusi#ity "actor. he company might ha#e attempted to stay away "rom internet sales as its main selling population was within larger cities% and ma:ority o" its marketing structure was based on in store sales. 8s prominent as in"ormation technology is today% not all merchandise is best ad#ertised online. It seems that in this particular case% the companys core marketing was based around its in7store merchandise that was always updated. he companys late entry into the online market could ha#e been "or the simple reason o" it "ocusing on its core competencies. +aunching its online store on country7by7country basis could be a wise idea "rom the stand point o" market analysis. 8 number o" -uestions come to mind when operating an online retail. *ome o" this include where will the merchandise be shipped "rom% what will be the primary online strategy in terms o" "ashion% what would be the cheapest way to produce merchandise sold online% and may other
logistical problems. +aunching its online business country7by7country would allow the company to get some bearing on the new business #enture that is outside o" the companys core business model. I dont necessarily belie#e that the companys decision to wait on its online business was necessarily related to their inability to deal with the technology associated with online stores. he companys business is based on some degree o" exclusi#ity% and ha#ing online stores could possibly damage that image.
3. 4escribe #ve opportunities 'or continued growth during the net #ve years 'or 5ara6s parent( +ndite( *A.
+aunch stores in the 8mericas along with establishing new distribution centers. he same as with China and Russia. ocus on online expansion. Expand aggressi#ely into international markets. Continue to nd creati#e ways to keep the stores looks "resh. he "th and nal opportunity would be to continue exploring alternati#e markets
7. 8ick one o' the #ve opportunities and outline the advantages and disadvantages o' pursuing it1 he opportunity I would like to discuss is continuing growth in the 8merican market. he primary ad#antages to in#esting in the 8merican market segment are the nancial and o#erall structural wealth o" the country. he 4nited *tates is a huge market "or many "ashion rms% and with todays technological ad#ance% the 8merican market is expanding #ery -uickly. 8lthough the company already has a number o" stores in ma:or cities% the company should pursue opening up stores in smaller communities. ;y no means anything rural% but cities such as Cle#eland% although not the "ashion such as &ew Uork% could still "acilitate good business. he primary negati#es to entering 8merican market are naturally the competition and logistics. he 8merican market is well de#eloped and rather saturated with already established retail chains such as 08$. Market entry and promotion could be expensi#e. 8nother "actor to take into consideration when entering 8merican market is logistics. he primary manu"acturing hub "or the company is located in 6estern Europe% thus shipping could take a big toll on the prot margin. 8lthough the company does currently o)set this costs by raising the prices on its products% this ultimately will hinder the rms ability to compete with local retailer who are not burdened by the logistical expenses.
