Top 10 global brands
Marlboro Naming Scheme in Transition
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- Diversified product portfolio.
- Huge investments in RD.
- Strong brand image.
- Product recalls.
- Decreasing sales.
- STRATEGIES BEING EMPLOYED
Marlboro Naming Scheme in TransitionIn mid-August of 2006, a federal district court ruled that the names 'Light', 'Ultralight', 'Natural', or 'Mild' could not be used. The judge said that these names were misleading to smokers in the sense that they conveyed some positive health effect. The ruling further stipulated that names changes must occur at the beginning of 2007. Tentatively, Philip Morris has decided to use a color naming scheme for their products that previously used the banned words in the name of their product. Given that, they have decided that Marlboro Lights would be called Marlboro Goldsand that Marlboro Ultralights would be named Marlboro Silvers. STRENGTHS Strong finance: The Company has a base of strong financial situation. According to its corporate website, its operating income in 2008 was $10,284 million, and its net earnings were 6,890. There was an increase as the same for the year 2007 was $8,894 and 6,038 respectively. Well established Brands: The Company produces famous brands like Marlboro, L&M, Chesterfield, Philip Morris, Parliament and Virginia Slims. When the product establishes itself as a brand there is a less need of spending money on its promotion. trong manpower and employees: The Company boasts of more than 75,000 employees throughout the globe from different culture and ethnicity. With the variety in their workforce there is a variety of ideas and concepts, which can be beneficial for the survival in the global environment. Strong Management team: the company under the chairmanship of Mr. Louis C. Camillieri has a strong and efficient management team. David Bernick , a senior Vice president and General counsel is university of Chicago, law graduate, André Calantzopoulos , chief operating officer ,Kevin Click, chief information officer and Doug Dean, research and development make the strong management team of the company. Leading Markets: The Company boasts of leading 11 markets out of the top 30 international markets. That is equivalent to occupying 33% of total top market shares. This is one of the strength of the company. These are the basic strengths of the company, a strong financial condition with plummeting profits, well established brand names of the product, skilled, well trained and diverse work force, a strong leading management team and the huge share in top international markets. WEAKNESSES As far as a weakness of the company is concerned the litigations seem to be the only weakness. Government policy on the promotion and sale of tobacco related product stops the company from aggressive marketing and promotion of its products. It is the weakness of the company. STRATEGIES BEING EMPLOYED High homogeneity of products, differentiation only through branding and marketing High concentration with 5 major players: PMI, BAT, JTI, IT, RJ Reynolds. Many restrictions and regulations, public awareness. Target: global community of young adult smokers USP: high-quality American style cigarettes Focus: growth segments of each market and new opportunities for growth PRIMARY REASON FOR BEING THE GLOBAL BRAND High degree of standardization with carefully selected adaptations to local preferences Positioned worldwide as a high quality product in the premium segment 2008 launch of the new Marlboro Brand Architecture to broaden the target market. HONDA
Motorcycle builder Soichiro Honda incorporates the Honda Motor Company in Hamamatsu, Japan. In the 1960s, the company achieved worldwide fame for its motorcycles (in particular, its C100 Super Cub, which became the world’s best-selling vehicle); in the 1970s, it achieved worldwide fame for its affordable, fuel-efficient cars. Today, in large part because of its continued emphasis on affordability, efficiency and eco-friendliness (its internal motto is “Blue skies for our children”), the company is doing better than most. Before he founded the company that bore his name, Soichiro Honda was a drifter and a dreamer. He bounced from one mechanic’s job to another, and also worked as a babysitter, a race car driver and an amateur distiller. Even his wife said he was a “wizard at hardly working.” In 1946, he took over an old factory that lay mostly in ruins from wartime bombings, though he did not have much of a plan for what he would do there. First he tried building what he called a “rotary weaving machine”; next he tried to mass-produce frosted glass windows, then woven bamboo roof panels. Finally, after he came across a cache of surplus two-stroke motors, he had an idea: motorbikes. Honda adapted the motors to run on turpentine and affixed them to flimsy cycle frames built by workers at the Hamamatsu factory. The bikes sold like hotcakes to people desperate for a way to get around in postwar Japan, where there was virtually no gasoline and no real public transit. Soon enough, Honda had sold out of those old engines and was making his own. In 1947, the factory produced its first complete motorbike, the one-half horsepower A-Type (nicknamed “The Chimney” because it was so smoky and smelly). After the company’s incorporation, Honda produced a more sophisticated bike: the 1949 steel-framed, front- and rear-suspended D-Type that could go as fast as 50 miles per hour. At the end of the 1950s, it introduced the Cub, a Vespa clone that was especially popular with women and was the first Honda product to be sold in the United States. Starting in the 1960s, the company produced a few small cars and sporty racers, but it wasn’t until it introduced the Civic in 1973 that it really entered the auto market. The car’s CVCC engine burned less fuel and could pass American emissions tests without a catalytic converter; as a result, the car was a hit with American drivers frustrated by rising gasoline costs. The slightly larger, plusher 1976 Accord won even more fans, and in 1989 it became the most popular car in the United States. More recently, the customer base for Honda’s efficient, environmentally friendly cars has grown exponentially. Its tiny Fit car is selling well, and the company has plans to introduce a five-door hybrid model that will compete with Toyota’s Prius. Soichiro Honda was inducted into the Automotive Hall of Fame in 1989. He died two years later at the age of 84. STRENGTHS Diversified product portfolio. Honda unlike many other automotive companies does not focus only on selling vehicles. It is the largest producer of the engines and motorcycles as well. Therefore, the company is not as susceptible as its competitors are to market cycles or technology disruptions. Huge investments in R&D. Honda’s investments in R&D reach as much as 5% of revenue. The business relies on these investments to achieve competitive advantage through various technologies, such as improved vehicle painting process, new hydrogen and hybrid engines or new welding technologies. In 2012, the company owned 42,000 patents and had pending applications for 29,000 more patents. Strong brand image. Honda has a reputation for producing the best quality engines around the world. The company’s brand was the 21st most valuable brand in the world valued at $17 billion and was only behind Toyota, Mercedes-Benz and BMW, according to Interbrand. Motorcycle market share in Asia. In 2012, Honda sold 80.5% of its motorcycles in Asia, the market that has greatest growth potential. Having the largest motorcycle market share, Honda is well positioned to compete with other companies for the sales and profits. WEAKNESSES Product recalls. Over 2011 and 2012, Honda recalled more than 1,000,000 vehicles to fix various faulty parts and manufacturing defects. Car recalls severely damages firms brand reputation and future sales. Weak position in Europe automotive market. Honda holds a very weak position in the Europe’s automotive market and has maintained only 1.1% market share in 2012. Although, Europe’s market share is declining at the moment and many companies experience losses, the market is huge and firms can benefit from the economies of scale. Decreasing sales. In 2012, Honda’s revenue hit the lowest point in 4 years to ¥7.948 trillion. Honda sales were down by 11.2% in North America, which represents more than 40% of total Honda revenues. Revenue from Asia and Europe also declined by 21.3%, 15.5% respectively, signaling poor firm’s performance globally. STRATEGIES BEING EMPLOYED What then has made Honda excel so adeptly as a global multinational? The secret strategic sauce that distinguishes Honda from other manufacturers can be broken down into five ingredients: Download 0.5 Mb. Share with your friends:
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