Discussion on Chapters 13,14,16, and 17: Global Promotions, Diageo's African Strategy and L'Oréal's

Standardization and Customization in Promotional Strategy

Individual Assignment 3 Discussion on Chapters 13,14, 16, and 17 (50 pts):

Presentations on Module 05 and 06 Instructional Materials, articles “Can Sales Promotions Go Global?” and "How ‘social’ are social media? A cross-cultural comparison of online and offline purchase decision influences”, HBS case “Diageo: Innovating for Africa” and “L’Oréal Global Brand Local Knowledge”.

1. The concept of standardization and customization applies to all aspects of Promotion Strategy (10 pts). Using the materials and articles: 

a) Define all of the components of promotion strategy, i.e., advertising, sales promotion, public relations, personal selling, and direct marketing. Can all these components be standardized or do they need to be customized in devising a global promotions strategy? 

b) Are there promotion strategy components that are more easily standardized for consumer products (B2C) than for industrial products (B2B)? If so, identify and explain which one(s). If not, explain why you don’t believe that to be true. 

c) In the context of global markets, explain the significance of social media as a promotional tool.  Analyze its specific pros and cons as it pertains to global promotions.  How does it differ across cultures?

2.  The following questions are based on the HBS case Diageo: Innovating for Africa case (20 pts). 

a) What is Diageo’s global strategy?  What have they done well in Africa?  

b) Discuss the environment Diageo faces in Africa including competitors, culture, pricing, distribution, etc.

c)  How is Diageo structured for global innovation, i.e. developing new products?  Evaluate this structure, does it offer the flexibility Diageo needs? 

d) Was Diageo’s emphasis on Project Ramani warranted? 

e) Diageo positions itself as primarily a premium brand.  Evaluate the decision to develop less expensive beers for the African market rather than focus on its premium brands

f) Looking forward, there are a many of issues Blazquez faces.  What advice would you offer?

3. The following questions are based on the HBS L’Oréal Global Brand Local Knowledge (20 pts). 

a) What is L’Oréal’s strategy to balance delivering consistent high quality products and messaging while adapting to local needs in emerging markets? 

b)How are they executing their strategy?  
a. How are they adapting target markets? 
b. How are they adapting products? 
c. How are they adapting promotion?
d. How are they adapting pricing strategies? 
e. How are they adapting distribution strategies?  

c) What are the tradeoffs (benefits and risks) of pursuing this strategy? 

d) What can other global companies learn from L’Oréal? 

Reminder: When analyzing HBS cases, please do not conduct additional research or introduce additional information from external sources. Introducing additional external information will only contaminate the case. Base your answers on the information contained in the case. That is the information the case author(s) have provided you, as managers or consultants, to make your decisions and recommendations. Besides conducting external research on the HBS cases will circumvent your learning as well as diminish the development of your judgment and decision making skills (That is also plagiarism!).