Top 10 global brands
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Intel TrademarkThe name "Moore Noyce" was already trademarked by a hotel chain, so the two founders decided upon the name "Intel" for their new company, a shortened version of "Integrated Electronics". However, the rights to the name had to bought from a company called Intelco first. Intel ProductsIn 1969, Intel released the world's first metal oxide semi-conductor (MOS) static ram, the 1101. Also in 1969, Intel's first money making product was the 3101 Schottky bipolar 64-bit static random access memory (SRAM) chip. A year later in 1970, Intel introduced the 1103, DRAM memory chip. In 1971, Intel introduced the now-famous world's first single chip microprocessor (computer on a chip), the Intel 4004, invented by Intel engineers Federico Faggin, Ted Hoff, and Stanley Mazor. In 1972, Intel introduced the first 8-bit microprocessor the 8008. In 1974, the Intel 8080 microprocessor was introduced with ten times the power of the 8008. In 1975, the 8080 microprocessor was used in one of the first consumer home computer - the Altair 8800 that was sold in kit form. In 1976, Intel introduced the first micro-controllers, the 8748 and 8048, a computer-on-a-chip optimized to control electronic devices. Though produced by the USA’s Intel Corporation, the 1993 Pentium was basically the outcome of a research conducted by an Indian engineer. Popularly known as the Father of the Pentium chip, the inventor of the computer chip is Vinod Dham.
This week the Santa Clara, Calif., processor giant launches, in collaboration with the Montreal-based magazine Vice, what it calls the Creator’s Project–a multi-year, international marketing program designed to showcase technology-influenced art, film and music. The two companies are together producing an interactive website, TheCreatorsProject.com, and a series of all-day performance events, featuring musical acts like Phoenix, Sleigh Bells and Diplo, in some of the world’s most influential markets: New York, London, Sao Paulo, Seoul and Beijing. Intel just posted the strongest quarterly results in its 42-year history, with revenue of $10.3 billion, up 44% from the same period in 2009. To continue that kind of growth, its executives want to win over consumers, particularly artsy 19- to 24-year-olds who tend to be trend setters in their communities. Those are the people who can make new technology products fly off shelves, says Intel’s newly appointed chief marketing officer, Deborah Conrad. I spoke with Conrad to ask her to explain her vision and inspiration for Intel’s current and future marketing plans. Forbes: What’s driving the evolution in Intel’s marketing, the move from business marketing to the consumer? Deborah Conrad: Last year, during the downturn, we saw a real switch in pushing growth from our business customers to the average consumer. Young adults, the people who are digital natives, don’t wait to buy a new computer. If it breaks, they buy a new one immediately. It’s an indispensable part of their lives. For that reason we need to be relevant to them. Generation Y, the 19-to-24 age bracket, needs to know who we are. They are the people who influence purchasing decisions. The more we get into social media, the more we see the power of this group. Why have you chosen to reach out to them through festival-like marketing? They don’t want to be marketed to. They don’t want anything that isn’t authentic. So we’re creating something that is. Last year Intel rolled out a new campaign to reposition itself with the tagline “Sponsors of Tomorrow.” What has the response to that campaign been, and how are you tweaking it as it continues? We just had our best financial quarter in history, so that’s an indicator that it’s gone very well. Consumers continue to buy, and not just seasonally. We pared back a lot of our branding last year. We had 14 different chips, all with their own brands, and it was really too complicated. We’re now focusing on the overall brand, making it simpler for consumers. We know that two years ago things were confusing. We haven’t tried to dumb down, but we have tried to make our offerings easier for people to understand. And now we think that has made a big difference. As far as changing the campaign, we’ve had a lot of success with it, but we also realize it works especially well in developed markets, the places where consumers already know Intel. In emerging markets, we have to address consumers differently, introducing ourselves to them. What dangers have you faced in repositioning Intel? What dangers still exist? We have to get people to care. If people don’t care about what’s inside their computers, then we’re in a tough spot. Nearly 20 years ago, we created “Intel Inside.” At the time, buying a computer was confusing. It still is, but we think we make it easier by showcasing our technology. Today we have to make it clear that the technology goes far beyond computers. It’s in slot machines, soda machines and cars. We have to be able to translate that into all markets and carry with it all the equity that we’ve created in it.
We’ve learned a lot from companies like Sun that offer transparency and listen to consumers. We want a mix of traditional and social, and it has to be a balance for our brand. We have to build a community and a conversation, and we’ve started doing that with our 80,000 employees, training them in social media, giving them guidelines for how to interact with consumers. Our employees are all our best brand ambassadors for going out and talking about the company and its communities. What companies are you looking to for inspiration for future marketing efforts? I’ve been learning a lot from the automotive industry, from companies like Toyota and BMW, and that’s because I see a lot of parallels between cars and computers. I see that a computer is becoming an emotional and style decision. It’s not just about performance anymore. Consumers want to express themselves with the leather seats and convertible tops of their desktops and laptops. It’s an emotional, visceral purchase, and not one that happens every day. Car companies also have to communicate the differences between complicated devices. Yet you don’t need to know everything that’s under the hood. I look also at consumer electronics, at companies such as Sony, Samsung and LG. Only a few years ago those companies were making products that weren’t all that exciting. The TV, until recently, was lackluster. But now it’s exotic, and it’s generating excitement. With both cars and TVs, companies struggle to keep the details simple and understandable yet exciting. The question is how you do that. You have to keep it thrilling, to pull people in and get them actively looking for information. We want to be a brand that does that, and that helps people make complicated decisions easily. PRIMARY REASON FOR BEING THE GLOBAL BRAND Intel has been ranked #15 on Interbrand’s 2014 Best Global Green Brands list. Intel was selected based on its environmental performance and the market’s perception of the company’s efforts. Examples of such efforts include manufacturing the world’s first conflict-free microprocessors, being the largest purchaser of green power in the U.S. and saving 46 billion gallons of water over the past decade. DISNEY HISTORY The Walt Disney Company started in 1923 in the rear of a small office occupied by Holly-Vermont Realty in Los Angeles. It was there that Walt Disney, and his brother Roy, produced a series of short live-action/animated films collectively called the ALICE COMEDIES. The rent was a mere $10 a month. Within four months, the ever-growing staff moved next door to larger facilities, where the sign on the window read "Disney Bros. Studio." A year later, in 1925, the Disneys made a deposit on a Hyperion Avenue lot in the Silver Lake district of Los Angeles. Construction began on the new studio shortly thereafter. During the next 14 years, many changes took place at the Disney studio: Mickey Mouse was "born" in 1928, followed by Pluto, Goofy, Donald Duck, and the rest of the Disney gang. In 1937, Disney's innovative first full length animated feature, SNOW WHITE AND THE SEVEN DWARFS, was released to critical acclaim and worldwide success. In order to expand and meet the expectations of his audience, Walt saw a need to increase the size of his studio. With profits from SNOW WHITE, he made a deposit on 51 acres of land in Burbank and began designing a modern studio specifically for the purpose of making animated films. Walt was personally involved with all aspects of designing the studio. From the layout of the buildings to design of the animators' chairs, nothing was left to chance. His main concern was to produce a self-sufficient, state-of-the-art production factory that provided all the essential facilities for the entire production process. The Animation Building, housing the Disney Artists and animators, was planned in the center of the lot. Across a small street were built the Inking and Painting and the Camera buildings, where the artwork was completed and photographed. Next to Camera, in the Cutting building, the post production process occurred. Sound facilities included dubbing, scoring, effects, and voice recording studios. Many of the buildings were linked together by an underground tunnel, so even in bad weather, the process of making animated films was not disrupted. To enhance the campus-like setting, all of the utilities were placed underground which was an innovation for 1940. During the 1940s and 1950s many prominent animated features were produced in Burbank, including FANTASIA, BAMBI, CINDERELLA, ALICE IN WONDERLAND, and PETER PAN.
Stage 1 is part of the original lot that was built in 1940. It was first used for filming the live-action scenes for FANTASIA. Stage 2 was built in 1949 in conjunction with Jack Webb, who used the stage for the filming of the television series DRAGNET. A popular television show filmed there was THE MICKEY MOUSE CLUB. Stage 2 is one of the largest sound stages in Los Angeles at approximately 31,000 square feet. In 1954, Sound Stage 3 was built specifically for 20,000 LEAGUES UNDER THE SEA, complete with watertank. Stage 4, completed in 1958, was first used for DARBY O'GILL AND THE LITTLE PEOPLE. In 1988, it was divided into two television stages, thus creating Stages 4 and 5. Well-known tenants on our stages have included Disney classics such as DAVY CROCKETT, MARY POPPINS, POLLYANA, THE LOVE BUG, BLACKBEARD'S GHOST, PETE'S DRAGON, and BEDKNOBS & BROOMSTICKS. Other well-known tenants have included ARMAGEDDON, HOME IMPROVEMENT, ELLEN, MTV, MADONNA, BROTHERS AND SISTERS, NATIONAL TREASURE 2, and PIRATES OF THE CARIBBEAN I, II & III. Riverside Lot Across the street from the Studio now stands the new Feature Animation Building and The ABC Building. This is where Walt was planning to build a place called Mickey Mouse Park. There were to be lifelike statues of Mickey and Donald, and guests could take pictures with their favorite characters and enjoy a train ride. However, as Walt's ideas continued to grow, he realized more space was needed to fulfill his dreams. Shortly thereafter he acquired more than 200 acres of orange groves in Anaheim, California. Those orange groves became the site of Disneyland. Shops The back-lot shops were built to provide the many crafts and services required by live action productions. The Machine Shop, which is no longer in use, housed machines and equipment that produced innovative camera and projection objects for the film industry. During the construction of Disneyland in the mid-fifties, this shop's engineers designed and hand-built many of the automobiles, train parts, boats, trams and carts that were required by the new park. Hollywood Records now occupies the building. Close by you'll find the Electric / Plumbing building containing machines and equipment for repairing and maintaining the many systems within the Studio complex. Nearby was the Staff Shop where they made molds, plaster casts, and fiberglass figures, many of which are in use at Disneyland and Walt Disney World. The Electric/Plumbing building has its own machines for installing and repairing all plumbing and mechanical equipment within the Studio, along with equipment for work in sheet metal, welding, and plastics. Next to Electric/Plumbing was the Special Effects shop, where our craftspeople created the myriad of unique effects that have come to be associated with Disney films. Flying cars, spaceships, miniature paddle wheelers, and medieval armor that comes to life are just some of the effects produced by this department. The Paint Shop, which is in another large metal building, does everything from spraying cars and furniture to be used on a movie set, to spraying the set itself. Other prominent shops throughout the back-lot include Sign Graphics, Crafts Service, and the Mill.
Most of the buildings on the Western Street were constructed in 1958 for the ELFEGO BACA and TEXAS JOHN SLAUGHTER television shows. Other productions which modified the structures for filming were DARBY O'GILL AND THE LITTLE PEOPLE, THE LOVE BUG, THOSE CALLOWAYS, and THE APPLE DUMPLING GANG. The last major feature films to utilize the street extensively were HOT LEAD AND COLD FEET and THE APPLE DUMPLING GANG RIDES AGAIN. Sets representing a downtown area were constructed in 1965 for THE UGLY DACHSHUND and FOLLOW ME BOYS. They were changed extensively for various films, and then completely demolished in 1981 to make way for a new town set for SOMETHING WICKED THIS WAY COMES. There were four original buildings on the Residential Street originally constructed in 1960 for THE ABSENT-MINDED PROFESSOR, including the main house and garage used for the laboratory. Other houses were used for THE SWAMP FOX and the original THAT DARN CAT. A well-known set was constructed for the ZORRO television series in the 1950s. This was once the Pueblo de Los Angeles with a fort, a jail, a square, an inn, and a church. Later, one of the old Spanish squares was redesigned to become a French village. Hills, pools, berms, and caves were built nearby for other productions. With the increased use of "on location" shooting, the back lot sets were gradually replaced by the Property building, the Zorro parking structure, the Frank Wells office building, and Stages 6 & 7. The Golden Oak Ranch Walt Disney first leased the Golden Oak Ranch, which is situated in the nearby Santa Clarita area, in the mid-1950s for the SPIN AND MARTY segments of THE MICKEY MOUSE CLUB. Because of the variety of natural settings available there, the Studio purchased the 700-acre property in 1959. Disney films shot at the Ranch include: OLD YELLER, TOBY TYLER, THE PARENT TRAP, THE SHAGGY DOG, FOLLOW ME BOYS, and more recently THE SANTA CLAUSE, PEARL HARBOR, PRINCESS DIARIES II and the PIRATES OF THE CARIBBEAN II & III. A western street was created for the renowned television miniseries ROOTS II in the late 1970s, and remained an active filming location until it's removal in 2008. Other ranch sites include a rural bridge on a lake, an entertainment and event venue, "THE GOLDEN OAK HALL," farm houses, barns, fields, country roads, tree groves, a forest area, a creek bed, and a running waterfall. Currently being developed is a pine lake designed to give the feeling of a High Sierra setting. The Golden Oak Ranch is used by the entire industry and has been seen in LASSIE, BEVERLY HILLS 90210, CHARMED, RED DRAGON, MURDER SHE WROTE, DIAGNOSIS MURDER, BONANZA, INDEPENDENCE DAY, PROFILER, CSI, MY NAME IS EARL, ENTOURAGE, BOSTON LEGAL, BONES, SONS OF ANARCHY, GHOST WHISPERERS, AMERICAN IDOL and so many more.
In the 1950s, as live-action films increasingly played a major role in the success of the studio, so did the inclusion of visual effects. Such memorable films as 20,000 LEAGUES UNDER THE SEA and DARBY O'GILL AND THE LITTLE PEOPLE began a tradition of combining complex optical effects with miniatures and matte paintings to create rich fantasy worlds on the screen. Throughout the 1960s and 1970s, the Process Lab, renamed Photo Effects and then Visual Effects, was home to the distinguished artists and technicians responsible for the effects seen in MARY POPPINS, THE ABSENT MINDED PROFESSOR, BLACKBEARD'S GHOST, BEDKNOBS AND BROOMSTICKS, PETE'S DRAGON, and TRON. During the 1980s, the unit was named Buena Vista Visual Effects Group and expanded its facilities into the Camera building to include a motion-control stage. In 1990, the unit became Buena Vista Visual Effects (BVVE) and shifted rapidly to digital-imaging technologies. Rooms within the Camera building, which formerly housed multi-plane cameras used to shoot animation, were filled with computer equipment. BVVE transitioned to Buena Vista Imaging in 1996. Today, Buena Vista Imaging occupies the Camera building, providing a full range of photo-optical and digital-imaging services, which include a black and white lab, digital workstations, film recorders and scanners, optical printers, and title graphics. Post Production Sound The Main Theater is a state-of-the-art digital sound dubbing and screening facility that was first used to mix the sound for FANTASIA. Sound mixers blend dialogue, music, and sound effects tracks to the various levels appropriate for a movie theater. The acoustics are designed to simulate a theater that is three-quarters full. Although the theater is empty during the mixing session, extra padding in the seats and specially designed walls absorb and reflect the sound. This helps the sound mixers to know what the final product will sound like when it is released to the public. Stage A, situated next to the Main Theater, was originally used for scoring. For many years, the music for innumerable Disney movies and cartoons was recorded here. In 1985, the stage was converted to a dubbing stage and theater. Like the Main Theater, Stage A is an all-digital, state-of-the-art dubbing facility. Stages B & C were designed to provide sound elements for the animated films. Because of the Studio location near the Burbank Airport, special priority was given to soundproofing with "building within a building" design for noise reduction. Stage B is known as the dialogue stage, where character voices were recorded for many animated classics including ALICE IN WONDERLAND, LADY AND THE TRAMP, PETER PAN, and THE JUNGLE BOOK. The tradition continues today, as Stage B is still used for such recent films as ALADDIN, THE LION KING, BEAUTY AND THE BEAST, and THE HUNCHBACK OF NOTRE DAME. Today, that tradition continues not only on Disney films, but also with Pixar hits such as TOY STORY, BUGS LIFE, TOY STORY 2, and MONSTERS INC. Stage B accommodates Automatic Dialog Replacement (ADR), a process that allows the talent to re-record their dialogue. One such use is for scenes shot on location, where an talent's lines were destroyed by outside sound or noise, such as a plane flying over at the time of filming. Stage C was originally used for the recording of various sound effects for the animated features and short subjects. Many of the unique sound-effects props and gadgets for these processes were invented by Disney technicians. Today, Stage C serves as a dubbing stage for film and television. It was recently renovated in 2001 and like the other stages it features an all-digital, state-of-the-art film console. STRENGTHS Characters – There are a lot of things which help Disney become such a huge conglomerate in the financial world but the people who helped Disney reach this height were the characters. Mickey mouse, Goofy, Donald duck, Ariel, and many others are the assets of Walt Disney and are the most humongous revenue generators. Walt Disney could not have survived without these characters and hence they form the most important strength pillar in the SWOT of Walt Disney. Values – Disney stands for values and ethics. Be it Disneyland, ESPN, Their movies or any business venture which the company invests, the business venture does not step a toe out of the line where values are concerned. Disney movies will be for kids and young adults. It’s a plus point that even adults love it. However, Disney as a brand has maintained the values which can be learned by kids and these values are also the one which us adults look for in our kids. And because of Disney our kids are learning those values. Flourishing business – After the above intangible things, let us talk about business as well. Disney owns the highest revenue generating theme parks in the world – Disneyland. It has a vast presence in media with investments in movies, production houses and finally on television through ESPN. ESPN is a star in the BCG matrix and even though the channel has a high competition, the presentation and content is such that ESPN wins over others in terms of its sports prowess. Disney also has the Disney store which is involved in merchandising of Disney’s own clothing line based on their characters. Brand image – Walt Disney is regularly listed as one of the best global brands of all time. Disney started building its brand image by involving children in the 1950’s which was followed by brand extension due to the creation of Disneyland. Disney went on leaps ahead and today it is a multi business conglomerate but the image projected is that of a young child with dreams of his own. Some people may not like Disney products, but they can never hate Disney. Diversification of business – Diversification of business is the key strength which will keep Disney going for a long time. They are present in entertainment, retail, media, Theme parks and all of these sectors are currently booming. With the standing that Disney products have in each of these sectors, it is likely that Disney will keep showing high cash inflow in the coming years. Cash reserves in surplus – What happens when your cash inflow is high and it rarely drops? Disney is a company known to have a cash surplus. It is regularly involved in Mergers and acquisitions and it is increasing its presence in the world so as to increase brand presence in developing markets. WEAKNESSES Company is missing out on the online market as all presence is offline – Today’s children prefer staying online than going out in the real world. Of course that’s harmful but that’s how it is, right?. The point here is that Warner brothers started pottermore, which is an online Harry potter world. Similarly there are many online games which present a world of its own. It would be excellent if Disney comes up with an Idea to start an online world where we can meet all the characters of Walt Disney and they play a part in our life. Disney sims is what I have in mind. Limited target audience – Children are the biggest influencers in an adults life. However, they are not the revenue drivers. Disney is limited by its abilities as it has only children as its target audience. With Universal studio also on the rise, Disney needs to diversify its target and get involved with adults as well. After all, adults are the one who pay the money. Character development is slow – Today, There are very few new characters which are generating revenues equal to mickey mouse or Donald duck. In India itself, Chota bheem and Ninja hattori have overtaken Ben 10 and other cartoons which are developed by Walt Disney. Thus, developing more localized characters is a need in the market. STRATEGIES BEING EMPLOYED The Walt Disney Company, started in California more than eight decades ago, occupies today the tenth position in the rank of the Best Global Brands. In order to achieve this position, it was necessary that the focus of Disney was not only in the market inside the United States, but in the Global Market. The company today has their worldwide known amusement parks in three different continents, stores in United States, United Kingdom, France, Italy, Spain and Portugal; and licensed shops in nearly every country in the world. The Strategies used by The Walt Disney Company for Reaching Global Markets are Foreign Outsourcing, Licensing, and Direct Investment. Due to the higher wages in the United States when compared to developing countries, Disney adopted the strategy of Foreign Outsourcing to reduce the cost of production. The main factories are located in Asian countries, especially in China, and then have their products distributed to all the stores. In order to have Walt Disney products available worldwide, Disney not only opened Disney Stores outside of the United States, but also authorized Licensees to resell their products. This approach is very beneficial for the company, in view of the low need of investment or no investment sometimes. As said before, Disney also opened Disney Stores around the world, as well as amusement parks and resorts. This type of Strategy is called Direct Investment. This represents a high cost investment for the company; however, their control over how their business operates is maximized. As of today, Walt Disney Company has Direct Investment Stores in five different countries and amusement parks and resorts in United States, France, Tokyo, Hong Kong and an upcoming one in Shanghai. According to Disney International website, for the past few years, their main focus has been “establishing the foundations for long-term growth in the emerging markets of Latin America, Russia, India and China.” (Walt Disney International, 2009). This focus has mainly been because of the economic growth of the country and consequently growth of the purchasing power of the population. Due to the change in the CEO of the company in 2005, Disney has also renewed their focus in Europe and in Japan, with the intention of serve their guests better and incorporate more local values while providing entertainment. Walt Disney’s strongest competitors are News Corporation, Viacom, NBCUniversal and Time Warner. All of them are in the international market largely by Licensing. They compete with Disney in all the branches, from television to amusement park, such as Universal Studios by NBCUniversal in Hollywood, Orlando and Japan. The Barriers to International Trade faced by Disney are all kinds. Being an American company and reflecting American values and ways of life, Disney had to adapt to the Sociocultural and Economic Differences in each of their host countries. Also, Political and Legal Differences, especially Laws and Regulations, were also an obstacle to International Trade.
Another barrier for Disney’s expansion were Laws and Regulations of their host countries. Each country has different laws and policies that differs, and sometimes contradicts, American laws. In order to be in Japan, France or China territory, The Walt Disney Company has to follow not only American rules, but also Japanese, French or Chinese rules, following their standards and paying their taxes. As I see, the Walt Disney Company also deals well with this barrier, printing, for example, the Disney’s Code of Conduct in Chinese, trying to balance the regulations of both countries. Barriers for International Trade will always be present, in different degrees of intensity. In order for a Company to succeed, Strategies for Reaching Global Market need to be set, taking into account the obstacles of each target. PRIMARY REASON FOR BEING THE GLOBAL BRAND The Walt Disney Co. together with its subsidiaries and affiliates is a diversified international family entertainment and media enterprise. It operates through five business segments: Media Networks, Parks & Resorts, Studio Entertainment, Consumer Products and Interactive Media. The Media Networks segment is comprised of a domestic broadcast television network, television production and distribution operations, domestic television stations, international and domestic cable networks, domestic broadcast radio networks and stations, and publishing and digital operations. This segment operates through consolidated subsidiaries, the ESPN, Disney Channels Worldwide, ABC Family, SOAPnet and UTV/Bindass networks. This segment also operates ABC Television Network and television stations, as well as the ESPN Radio Network, Radio Disney Network and owns and operates radio stations. Additionally, it operates ABC, ESPN, ABC Family and SOAPnet-branded internet businesses. The Parks & Resorts segment owns and operates the Walt Disney World Resort in Florida and the Disneyland Resort in California. Its Walt Disney World Resort includes four theme parks-the Magic Kingdom, Epcot, Disney's Hollywood Studios and Disney's Animal Kingdom; resort hotels, retail, dining, and entertainment complex, a sports complex, conference centers, campgrounds, water parks, and other recreational facilities. The segment's Disneyland Resort includes two theme parks-Disneyland and Disney California Adventure; resort hotels, and a retail, dining and entertainment complex. This segment's Walt Disney Imagineering unit designs and develops theme park concepts and attractions, as well as resort properties. The Studio Entertainment segment produces and acquires live-action and animated motion pictures for worldwide distribution to the theatrical, home entertainment, and television markets. This segment distributes these products through its own distribution and marketing companies in the United States and through independent companies and joint ventures in foreign markets primarily under the Walt Disney Pictures, Touchstone Pictures, Pixar, Marvel, and Disneynature banners. The Consumer Products segment licenses trade names, characters and visual and literary properties to various manufacturers, retailers, show promoters, and publishers throughout the world. This segment also engages in retail and online distribution of products through The Disney Store and DisneyStore.com. It also publishes entertainment and educational books and magazines and comic books for children and families and operates English language learning centers in China. The Interactive Media segment creates and delivers branded entertainment and lifestyle content across interactive media platforms. Its primary operating businesses are Games which produces and distributes console, online and mobile games; and Online, which develops branded online services in the United States and internationally. The Walt Disney was founded by Walter Elias Disney on October 16, 1923 and is headquartered in Burbank, CA N GLOBAL BRANDS HEWLETT PACKARD HISTORY 1905 In Palo Alto, California, a house and shed are built at 367 (then numbered 369) Addison Ave. First documented residents are Dr. John Spencer, a physician; his wife, Ione, and two adult daughters, Alice and Martha. In 1909, Dr. Spencer is named the first mayor of Palo Alto under the charter form of government. 1918 The house is divided into two apartments numbered 367 and 369. 1924 A 12 x 18 foot garage appears on Sanborn Insurance maps of Palo Alto. This roughly coincides with the paving of the city streets to accommodate the increasing number of automobiles. 1934 Bill Hewlett and Dave Packard graduate from Stanford University. 1935 Dave moves to Schenectady, New York to work for General Electric. Bill completes graduate work at Stanford. 1936 Bill completes graduate work at MIT and returns to Palo Alto, as a Stanford research assistant to develop medical equipment for a San Francisco doctor. (Arranged by Stanford professor Fred Terman.) 1937 Dave visits Bill in Palo Alto; they have their first official business meeting. 1938 During the summer, Fred Terman arranges a Stanford fellowship for Dave to work with Russ Varian on vacuum tube technology. Dave takes a leave of absence from GE to move back to Palo Alto and "make a run for it" with Bill. Bill searches for an apartment for Dave and specifically chooses 367 Addison Avenue because it has a garage that the two of them can work in. In September Dave and Lucile move into the three-room apartment on the first floor (#367), and Bill moves into a shed in the back. Mrs. Spencer, the now-widowed landlady, lives in the upstairs apartment (#369). Bill and Dave begin part-time work in the garage with $538 in working capital. The $538 consists of cash and a used Sears Craftsman drill press. They develop an audio oscillator, HP’s first product.
January 1, Bill and Dave formalize their partnership. They decide the company’s name with a coin toss. Bill moves out of the shed when he and Flora marry. The small building becomes the company’s business office with a desk and file case.
Having outgrown the garage, Hewlett-Packard moves to a rented building at 481 Page Mill Road. Dave and Lucile move to Barron Park in Palo Alto. 1944 Mrs. Spencer leaves Palo Alto. Subsequent owners continue to subdivide the house and rent out its apartments and the garage. 1984 HP decides to pursue historic landmark status in order to ensure that the garage will be preserved at its original location. 1985 Garage is named a city landmark by the Palo Alto Historic Resources Board. 1987, August 7 Garage is granted California State Landmark status as California Registered Landmark No. 976. The state also grants permission for a bronze plaque to be installed at the property. 989, May 19 Garage is dedicated as a state historic landmark and the “Birthplace of Silicon Valley.” A plaque is set in a sandstone rock in the front yard. 2000 2000 HP purchases the property. 2004 HP announces plans to renovate and rehabilitate the garage, house and shed at 367 Addison Ave. 2005, December 6 With preservation efforts complete, the HP garage is re-dedicated as a state historic landmark and the “Birthplace of Silicon Valley.” STENGTHS Strong presence in China. The economy of China has been growing at a steady more than 8% rate every year. The growing economy accelerates corporate spending and HP is well positioned to benefit from it. The company has increased its investments in the market and expanded product and service offerings, especially its enterprise business and services divisions. These divisions offer the most profitable HP’s products, including cloud computing services and enterprise solutions. Strategic expansion into Chinese market may result in a strong competitive advantage for the business in the near future. Brand reputation. HP is the world’s leading PC vendor with more than 15% market share. It is also one of the major providers of service network products. The company has a significant market reach all over the world in nearly all of the markets it operates. This has resulted in a strong brand reputation. According to Interbrand, HP’s brand was value at $26 billion in 2012 and was among top 15 most valuable brands in the world. Diversified product portfolio. Although slowly, HP has been diversifying its product portfolio and moving from its main Personal Systems business to more profitable and lucrative enterprise solutions and services business. The company now offers thousands of different products and services. In addition, its product portfolio is more diversified than competitors’ portfolios, which make HP less susceptible to changes in the different industries and markets. WEAKNESSES Poor competency in acquisitions. Over the last 10 years, HP has acquired at least 50 technology companies. Some of the acquisitions added new skills, products and increased business’ revenues but the rest acquisitions were either of no value or even detrimental to the company. Most notably, Autonomy Corporation, which was acquired for $11 billion and was a complete failure. HP bought a highly overvalued company and had to write down $8.8 billion value of its books. This acquisition has revealed how incompetent HP was when acquiring the company. No other HP competitor has experienced such an acquisition failure in the decade. 29% of income comes from personal systems division. HP still heavily depends on sales from PC, especially laptops. The market for PC has matured and is expected to grow very slowly or even decline after a few years. Combining this with ever decreasing margins on computer hardware products, HP’s largest Personal Systems division becomes a weakness for the company. Poor presence in the tablet market. The tablet market has been growing and is expected to grow in double digits over the next few years. Most of other technology businesses have successfully introduced their products in the tablet market and have enjoyed huge income and profit growth. Although HP had its TouchPad tablet model and later introduced its Slate series tablets into the market, the company has failed to offer an attractive product for consumers. As a result, the business experiences losses and is unable to compete successfully in this lucrative market with companies like Samsung and Apple. STRATEGIES BEING EMPLOYED Hewlett-Packard is recognized throughout the world as one of the best computer providers. The company has put an enormous amount of work to be where they are now, and they continue to progress with their technology in order to meet their customer's needs. They have various strategies for reaching global markets that they have used over the years that has allowed for them to be one of the best suppliers of electronics and because of their hard work they continue to grow. HP holds annual securities analyst meetings where they come up with new strategies for reaching global markets and to allow the company to progress. They currently have a multi-year restructuring that is designed to realign their cost structure and create investment capacity to drive innovation against their strategic priorities and strengthen marker leadership. The company has said that they expect their revenues to grow in line with GDP, with operating profit growing faster revenues, industry-leading margins and disciplined capital allocation by 2016. HP has a very powerful set of assets, a culture of engineering innovation and a trusted brand and now they focus on bringing great assets together in order to deliver to their customers. Hewlett-Packard has a specific plan for the company to reach global market which include HP Enterprise Services, which means that they bring together their industry leading server, storage, networking, management software and technology service that offers to deliver converged infrastructure solutions for enterprise customers. With this strategy the expect to increase revenue and market share. They were the first large company to announce this service and by 2015 they will represent 15 percent of the global server market. Their second strategy is foreign outsourcing, this means that they contract with foreign suppliers to produce their products, usually at a fraction of the cost of domestic production. They depend on China and Taiwan to produce some of their products. Some geographical areas that Hewlett-Packard is focusing on to reach global markets in is the UK and Asia-Pacific. The reason behind these two places being a main focus for HP to reach global markets is the demand that the company receives from their products there. Aside from having their headquarters in Pal Alto, California for the United States, they have taken a step further to open Europe offices in Switzerland. They also have Latin America offices, as well as offices in Singapore for the Asia-Pacific. Since HP is a global company, they are dedicated to free trade and the reduction of barrios across borders. Free trade plays a significant role in their company in promoting democracy labor rights and human rights around the world. HP is truly committed to ensure the global markets are open to their good and services. Hewlett-Packard continues to demonstrate how they put their costumers ahead of anything else. By having the Enterprise Service they're reaching global markets and they will continue to progress in the market by putting their costumers first. PRIMARY REASON FOR BEING THE GLOBAL BRAND HP Global Brands, is a recognize Manufacture, Importer, Exporter of Quality Wines, Spirits and Beverages. Distribution Channels in Dominican Republic, Canada, South Africa, Caribbean and USA. We are building strategies to promote and market products effectively in diversified cultures and countries around the world. We believe in our brand and invest along side our partners in the development process of brands. Each Brand is carefully studied and strategies are built for its success in its new territories. Being a boutique Brand company helps us be more dynamic on our marketing campaign and focus on what’s working. MERCEDES BENZ HISTORY In 1885 the townspeople of Cannstatt, Germany, were startled to see Paul Daimler, son of Gottlieb Daimler, roll away from No.14 Taubenheimstrasse on a wooden-spoked two-wheeler powered by a fraction of a horsepower four-cycle internal combustion engine. That belt driven motorcycle (actually a four-wheeler as it had two eight-inch diameter outrigger wheels to keep it stable when at a standstill) was the forerunner of all automobiles. Gottlieb Daimler was the first man to harness with any true degree of success a combustion engine into a road vehicle. Granted there were horseless vehicle predecessors to Daimler's motorcycle but Daimler's was the first recognized internal combustion vehicle and the first to incorporate a practical transmission system. Shortly after Daimler applied for his combustion motor patent, Carl Benz of Mannheim, Germany was granted a German patent covering a three-wheel motor car he constructed in 1844. This single cylinder, 3/4 hp, benzene fueled motor car had a combination of belts, chains and gears to transmit power to the rubber tired rear wheels but no gear change was possible. Daimler's first four-wheeler, a Victoria-type motor driven carriage, was built in 1886. By 1890 demands for Daimler's engine made expansion necessary and a corporation was formed, the Daimler Motoren Gesellschaft. or Daimler Motor Company as it was known in English. Benz, with several associates formed another corporation, Benz & Company, at Mannheim. Daimler continued his automotive research and prior to his death in 1900 was credited with such inventions as the honeycomb type radiator; the float type carburetor; V-twin cylinder engine (such as used in present-day Harley-Davidson motorcycles); interrupted low-tension electric ignition; four-cylinder engine; foot accelerator; and motor and transmission in one integral section. The first recorded auto race, sponsored by the Petit-Journal of Paris in 1894 and conducted over a Paris to Rouen course, attracted forty-six entries and was looked forward to as a test of the steamer and electric versus the gas burners. The first three winning cars were powered by Daimler-built engines. From that time on the Daimler Mercedes and later (after 1926) the Mercedes-Benz were to gain continuing prestige through their high-speed performance. A wealthy banker-sportsman Emil Jellinek of Vienna was much impressed by the success of the Daimler motor in racing competition. He purchased controlling stock interest in Daimler in the early 1890's and put nearly unlimited funds at the disposal of Gottlieb and Daimler's two sons, Paul and Adolph. It was Jellinek who encouraged Daimler in his idea to create what was to be the most powerful car of its day, a 35 h.p. Monster. In 1900 the 4-cylinder Daimler was completed and the car was christened in honor of Emil Jellinek's beautiful daughter, Mercedes. The new car was an immediate sensation. From its flaring front fenders, rakish rearward sloping steering column to the T-head type cylinder construction and twin carburetors, the Mercedes was a beauty and did justice to its namesake. Jellinek, controller of the Daimler plant, and father of the young lady for whom the 1900 luxury four-wheeler was named, was so obsessed with his interest in high-speed automobiles that for nearly' five years he held exclusive rights to the bulk of the Mercedes production and carefully limited the sale of the cars to individuals of known influence. Jellinek's own international reputation as a sportsman and his careful selection of purchasers of the limited number of Mercedes available placed the cars with an upper-bracket clientele which, nearly as much as the car's own intrinsic superior engineering and design, gave the Mercedes it's reputation as a quality and high performance product. If one were to have made a post-war visit to the famous Mercedes-Benz factory at Unterturkheim, Germany in October, 1945, one would have good reason to conclude that no new cars would emerge from this site for at least another five years. The word "site" is used reservedly, for between 70 and 80 percent of the factory buildings had been destroyed by aerial bombardment and this same fate had overtaken most of the other plants at Sindelfingen and elsewhere. Additionally, a large quantity of the light machine tools had been dispersed during the war in what became the French occupied zone of Germany. Raw materials were practically non-existent and the technical staff disrupted by the de-Nazifying enactments which were then being enforced with the utmost severity. But in fact, it only took Dr. lng, W. Haspel and O. Hoppe, and their co-directors a matter of only three years to rebuild and re-equip the factories and to introduce the first post-war models. In 1948, the new four-door saloon, which was made in its entirety at Sindelfingen, followed closely on the lines of the 2.3 liter car of 1939. STRENGTHS As a leading automobile company, Mercedes-Benz is in the prime position to lead other manufacturers around the world. It is well established, provides high quality vehicles, and enjoys very good branding, earning itself plenty of respect and prestige. It is a well known provider of luxury, offering solid design and expertly tuned ride comfort, making them one the most comfortable cars to ride. The company is also market savvy, with good access to global distribution with an array of agreements and alliances. WEAKNESSES The quality of the vehicles means that they are fairly or very expensive, with much of the cost due do fashion and prestige. The strong branding which promotes this has positives and negatives - consumers like a good brand, but high prices can also be an issue. Promotion is one clear source of weakness. The company's promotional campaigns are rare, and the cars take a long time to make, which can lead to impatient customers. Recently, UAW contracts have cast the company under a negative light. Mercedes Benz should not lose sight of the ever changing market base. And keep a keen eye on the needs of the consumer, and the competitors. STRATEGIES BEING EMPLOYED Automobiles present a special challenge to marketers because they are a consumer good, but with unique characteristics. Any vehicle can move goods and people from one place to another. Some vehicles fill specific needs, such as pickup trucks or station wagons which offer additional carrying capacity, but within these broad categories are a number of perceptual differences that actually define the market. When consumers purchase a vehicle, they are buying a set of perceptions as much as the vehicle itself. Because the vehicles represent generally the second largest investment that most individuals make (after a house), there is concern with the ability of the car to retain its value. Since automobiles also require regular maintenance and repair, there is also the concern of how much these repairs are going to cost. Aside from the financial considerations, consumers are also concerned with the quality that they receive for their money. A car which breaks down on a regular basis not only costs money to repair, but can cause severe inconvenience to its owner. In the United States, cars also make statements regarding the owners' status. Some individuals are interested in owning cars that cost a lot of money because they expect that others will perceive them as better than if they drove a less expensive car. Others consider the utility of a particular vehicle and prefer the perception that they shop for value rather than conspicuous consumption. The motivations behind why people purchase the cars they do are complex. Cars differ from other consumer products also in that they do not have packaging that can be modified to change a product's image or use. Like other hard goods, cars are displayed in the most attractive manner possible, but the product itself can be opened and inspected by potential buyers before purchase. In fact, test drives are a regular part of the purchase process, which is longer than the process associated. PRIMARY REASON FOR BEING THE GLOBAL BRAND Mercedes-Benz is continuing to extend its position as the world’s most valuable premium automobile brand according to the current rankings for “Best Global Brands 2014″ compiled by renowned US brand consultancy Interbrand, the Mercedes brand has advanced to 10th place and as such is the only European company to make it into the top 10 of the 100 most valuable brands. Compared with the previous year, the brand’s value has risen by eight percent to 34.34 billion dollars and has thus achieved continued growth since 2009. In the last two years Mercedes-Benz was placed 11th in the rankings. “We are proud and delighted that we have been able to further raise the value of our brand through our focused marketing measures”, commented Dr Jens Thiemer, Head of Marketing Communication, Mercedes-Benz Cars. “This shows that with our product offensive and new sales strategy, both of which are geared towards the needs and wishes of our customers, we have been able to achieve new highs all round – both in terms of sales and also our reputation.” The authors of the “Best Global Brands” study based the renewed growth in value on the ability of Mercedes-Benz to open up the brand to new, younger target groups based on new models and a new design. They also said that the success of the new E-Class, CLA or GLA has demonstrated that the new design idiom has been very well received as it allows customers to stand out from the crowd in visual terms. At the same time, the expansion of sales channels and the strengthening of brand communications in China have contributed to an impressive increase in sales, according to the study. Mercedes-Benz posted the strongest sales month in the company’s history to date in September and the first month with customer deliveries of more than 160,000 vehicles (162,746 units, +13.8%). Moreover, with sales from July to September, the company has had the strongest quarter in its history to date (412,018 units, +11.9%). Mercedes-Benz has posted double-digit growth since the start of the year (+12.5%) and thus a new record with sales of 1,195,156 cars. Since the beginning of the year, Mercedes-Benz has achieved particularly strong growth rates in the Asia-Pacific region: In China, the company continued on its course of success of recent months and grew unit sales to a new record high of 203,485 vehicles (+30.5%). The “Best Global Brands” are identified by Interbrand annually. The study is considered by leading CEOs worldwide to represent the competitive benchmark for the value of international brands. The study is designed to identify the world’s 100 most valuable brands. GILLETTE
The quest for a better way to remove facial hair or to shave has taken many twists and turns over the centuries. The years between 1800 and 1900 have been coined the “Golden Era” of the straight edge razor. Men went to barbers to have their mustaches and beards carefully trimmed. Interchangeable blade-razor sets and “seven-day” sets were popular in the 1800s. But it wasn’t until 1901 that King C. Gillette fundamentally transformed shaving with the invention of the first safety razor, which was granted a patent on November 15th, 1904. With the advent of the safety razor, a man did not need to send his straight edge razor to the barber for sharpening. The idea of clamping a smaller version of a straight edge onto a handle was genius – the blade was easier to control, which resulted in fewer nicks and cuts, and was replaceable when it became dull. In the past century, Gillette has been amongst the leaders in shaving innovations, delivering cutting edge science and technology to consumers. When King C. Gillette introduced his revolutionary safety razor, he founded a company on the time-honored credo, “There is a better way to shave and we will find it.” Gillette remains true to this spirit even more than a century later and continues to deliver on that promise with ground-breaking razors featuring innovative blade technologies from the Gillette Trac II to Sensor, MACH3 and, of course, Fusion and Fusion ProGlide. Today, Gillette has two dedicated R&D centers – in Boston, USA and Reading, UK – where most of its product R&D takes place. The two R&D centers are amongst 14 such P&G facilities where Gillette products are developed. Its South Boston Manufacturing Center, known also as the Gillette World Shaving Headquarters, has been the technical center for developing and manufacturing the newest wet shaving technology platforms, using state of the art proprietary technology since 1903. The Reading Innovation Center in the UK has been a world class innovation powerhouse that creates ground-breaking experiences that have delighted consumers since 1959. Unique and diverse professionals drive with passion and creativity, a culture of learning and technical excellence at Reading and Boston to lead scientific breakthroughs. STRENGTHS Reduced labor costs Skilled workforce High growth rate Barriers of market entry Experienced business units WEAKNESSES High loan rates are possible Competitive market STRATEGIES BEING EMPLOYED King Camp Gillette is credited with inventing the “razor and blade” business model that many refer to as the “Gillette strategy.” There are many stories and myths around how this strategy was invented. In all of them, Gillette created a safety razor that used disposable blades. Initially, the razor was expensive, and after some years when the patent on the razor expired, Gillette realized that the more Gillette razors that were in the hands of potential buyers, the more blades he would sell. Therefore, Gillette started selling the razors at a lower price to increase the demand for blades, which carried a much higher gross profit margin than the razors. His product model became (1) give away the razor (or sell it at a low price) to get it into the hands of as many people as possible and (2) make the “big money” from selling high-margin replacement blades. Many companies have adapted this strategy to their businesses with great success. Low-end inkjet and laser printer manufacturers sell their printers for a price that is at (or near) their cost, and make money from selling ink and toner cartridges. Amazon sells the Kindle Fire at or below cost with the objective of facilitating sales of products from Amazon’s online store. Arthur Andersen (which morphed into Accenture) used it similar strategy when it won the bid for the air traffic control system at Chicago’s O’Hare airport. It bid $0 for doing the job, but proposed charging the airport a penny for every takeoff and landing in perpetuity. PRIMARY REASON FOR BEING THE GLOBAL BRAND Thanks to years of product innovation and heavy investment in marketing and advertising, Gillette occupies perhaps the most dominant position of any of the major global consumer goods brands with an estimated 70% share of the global razor blade category. Common sense might suggest that if you found yourself in this envious position you would sit back and count the billions of dollars in annual revenues that this market share delivers. But Gillette is owned by P&G, and while even the best marketing company in the world can’t improve much beyond that level of market share – there are plenty of other levers to pull to generate shareholder value. And those levers provide brand managers with a vital, best practice lesson in growing a brand’s contribution even when market share remains constant. First, drive profitability. Market share might have reached its zenith, but that does not mean your margins can’t be squeezed. And squeezed tight. One industry insider in the UK recently revealed that despite a retail price of £9.72 for a pack of four Fusion razor blades, the actual manufacturing and packaging costs for this product is less than 30p. That’s a whopping mark-up of almost 3000%. How about that for a margin? Second, practice positive cannibalization. Gillette launched its five bladed Fusion line in 2006 with a 40% price premium over Mach3, its previous three bladed offering. Despite the fact that both lines generate significant profits, with such a huge share of the shaving market it makes more sense for Gillette to focus its marketing resources on switching its own customers from Mach 3 to the more profitable Fusion line than trying to win any more share from competitors. That’s why Gillette is now spending millions to compete against itself with ads and online comparisons that attempt to convince its Mach 3 consumers that their current razor is simply not good enough and to trade up to Fusion. A year ago Fusion started a TV campaign called “Nudging Disciples” in which ads argued that “five is better than three,” referring to the different blade counts of Fusion and Mach3. The spot shows Tiger Woods, Derek Jeter and Roger Federer literally knocking Mach3 razors out of men’s hands with a golf ball, baseball and tennis ball, respectively. “Sometimes you need a little push to let go of your Mach3 razor,” the narrator says. While it may seem crazy to spend millions to compete against yourself, the margin differences mean that this will deliver a better ROI than targeting the small number of remaining non-Gillette consumers over to the brand. Targeting existing customers is usually easier and the conversion rates are better. Third, drive usage. Don’t fall in love with steps one and two that I listed above. They are good tactics, but don’t make the classic marketers error of overlooking the easiest and most powerful driver of profitability. It might sound less sexy than increasing share or price point – but believe me – increasing consumer usage of a brand has always been the number one way to fuel profitability. Get consumers to stay with a brand for longer. Persuade them to use it just a little more. Find an additional application. All simple but powerful ways to drive increased sales from the same stable market base. In Gillette’s case the company is investing heavily in an online campaign to encourage consumers to use their Gillette razor downstairs on the lower body area as well as upstairs on the face. Interactive videos with powerful messages like, “You might say when there’s no underbrush the tree looks taller” are increasing the frequency of blade use on those thicker, more stubborn lower body regions. One of the joys of having a 70% global share is that you can run general campaigns to grow total category usage like this campaign, safe in the knowledge that most of the upturn in sales will benefit your brands. Fourth, don’t just sit there. Extend the brand! You have a billion dollar brand equity – use it to enter and take control of other related categories. For Gillette that has meant a successful foray into the “software” side of shaving with up to a 50% share in the shaving cream category in many countries and a growing slice of deodorants and shampoos too. Finally, stay frosty. Today’s market dominator could end up being tomorrow’s has-been brand. The vast majority of spend on consumer goods marketing is spent defensively to maintain share, not grow it. No surprise therefore that Gillette is one of the brands linked to the hottest TV series of 2009 – the second series of True Blood from HBO. Their fictional tie-in campaign shows a vampire endorsing Fusion as the best shave for the undead. It will deliver a huge amount of defensive awareness while keeping the brand contemporary and hip in the never ending battle to stay fresh. CISCO HISTORY Download 0.5 Mb. Share with your friends:
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