Attributes Of A Global Brand Marketing Essay

Attri scarcelyes Of A Global Brand merchandise Essay there atomic repress 18 several attri barelyes that makes Formula One a worldwideised blade. Firstly, it is highest class of one-seater cable car racing in the world, driving the fastest cars on the planet. F1 holds the most inebriate car races, young boys aspires to be F1 racers, millions of people buy tickets to the races and subscribe to media that streams every(prenominal) year to watch. correspond to Levitt (1983), contrastive cultural preferences, national tastes and values, and business institutions atomic number 18 vestiges of the past slightly inheritances die slowly otherwises prosper and develop into chief(prenominal)stream ball-shaped preferences. F1 became a mainstream favourite sport of the world. The state-of-the-art railway locomotiveering apply in the race such(prenominal)(prenominal) as locomotiveering of the cars, time keeping, changing of tyres at the shortest time etcetera attracts people of the current generation. Almost everyone everywhere wants what they hire heard about, seen, or experienced via freshly technologies (Levitt, 1983).The unpredictability of F1 on the wholeows it to attract viewers constantly. It is a uncommon experience that stick outnot be duplicated easily e.g. crashing as contrary parts of the track, the seriousness of the crashes, assorted outcomes etc.Organising the race is very dear(p) thus running a squad is mostly and sometimes wholly sponsored by various big world(prenominal) brands that wish to increase scene from F1. And thus, consumers of the brands would be aw ar F1, for the logotype will be dis shrink fromed on wholly kinds of harvestings and media analogous advertisements, news and magazine interview articles etc., and promotions for F1 will include the brands logo as well hence creating maximum aw atomic number 18ness to F1 and the international brands foodstuff.F1 is a season consisting of series of races held aroun d the world on purpose-built circuits and prevalent roads. The annual calendar is global, taking 19 races in countries such as Australia, Asia (Malaysia, Singapore and Japan), the Middle East (Bahrain), Europe (the mainstay of F1), and North and atomic number 16 America (Canada and Brazil). It goes through and through major developed countries and with the gigantic scale of the event, F1 is cognize throughout the countries and their neighbours.Standardisation VS AdaptationAccording to Levitt (1983), most executives in transnational corporations atomic number 18 tactlessly accommodating they wrongly presume that selling intend giving the consumer what he says he wants rather than trying to comprehend incisively what hed like, thus persisting with high-cost, customized multinational products and practices instead of insistency hard and pressing properly for global standardization. They are afraid to standardise for fear that the dodging will fail. But Levitt (1983) says tha t poor execution is often the cause of bereavement, not the standardisation.According to Levitt (1983), the worlds chooses and desires pull in been irreversibly homogenized. This makes the multinational corporation over-the-hill and the global corporation absolute.Thus we have flourishing global brands like F1 which are mostly standardised than adaptive to the countries and cultures they are in, with accurate execution. F1 is cognize worldwide for its attributes as mentioned above, and thus it does not have a need to adapt when entering a new market in some other country as what is expected of them is their signature races. The products and methods of the industrialized world play a single tune for the entire world, and the entire world thirstily dances to it (Levitt, 1983). There are 19 races, half of which are held in other continents apart from its traditional base in Europe. Despite that, the besides adaption is believably the nature of the course track built for the race or the usual roads structure in the countries. For example, from the classic circuits, now countries such as Singapore, Monaco, Melbourne etc., have street circuits, using a combination of public roads and circuits for the race.F1 Grand Prix event spans over a weekend and throughout the practices sessions it has a specific set of rules and control. This set of regulations is by the F1 and is standardised.According to the case study, merchandizing is through specialist F1 outlets worldwide, selling replica model cars, baseb totally caps, jackets and other memorabilia, all custom-made and packaged with the F1 logo. These subsidiary products of the brand are also standardised, not adapted to whichever country the products are sold.Product Globalization Strategy competent from Jim Riley (2012), global strategy of F1 will involve appreciating that success demands a front line in every part of the world to compete effectively, which is what F1 had been doing expanding to host the r aces at other continents.F1 make its product similar for each market by using the same set of regulations and control for the races, same technology and security system and other parts in the operations despite being in different countries from Europe. Centralised control where the final say still belongs to F1 Management and F1 Administration. Ecclestone pieceed the F1 Constructors tie-up (FOCA) to fight for commercial control with Fdration Internationale de lAutomobile (FIA). victorious advantage of guest needs and wants across international borders as F1 fans are spread across the globe, instead of only watching from screens, F1 made it equal by hosting at major countries where their target markets were. Locating value adding activities where F1 stooge achieve greatest competitive advantage, thus the expansion to the most developed countries in the world. Integrating and co-ordinating activities across borders, F1 does by having counselling and administration team to be t here at each different location. This part is square where Ecclestone established the F1 Promotions and Administration (FOPA). According to Levitt (1983), as long as the trade is good, consumers would be influenced to accept the product no matter what they claimed they want. This is where Ecclestone succeed in influencing people to crave to watch the race.ConclusionThe changing patterns and structures of communicating typically related to the demands of globalization require flexibility, responsiveness, speed, and efficient knowledge production, generation, and dissemination (Cynthia Stohl, 2004).A global pains is where households compete in all world markets in order to survive (Jim Riley, 2012). Thus be like F1 where they venture into all the potential markets.A successful global corporation does not repudiate customization or note for the requirements of markets that differ in product preferences, spending patterns, obtain preferences, and institutional or legal ar localis ements (Levitt, 1983).A global strategy is successful when there are very minor differences between countries and competition is global, it has advantages in terms of economies of scale, lower costs, co-ordination of activities and quicker product development (Jim Riley, 2012). Given what is everywhere the purpose of commerce, the global industry will shape the vectors of technology and globalization into its great strategic fecundity companies that do not adapt to the new global realities will become victims of those that do (Levitt, 1983).Environment QantasIdentify the Marketing Environmental FactorsThis paper will state how factors in the environment touch on each other in Qantas Moment. The global market environment consists of 4 main environments. link up addendum A.Organization environment stop be controlled by the firm.StructureComp both Image and brand equity are a vital parts in selling as they dish up raise finance, manakin joint ventures and alliances stressing marketing intermediaries, get buy or sales contract, launch new products etc. (Ebstudies, 2012). From the case we merchantman see it fetchs very long to build a good rapport, but just one hap to tarnish the reputation.StrategyThe technological capabilities descend companys ability to innovate and compete. The design and safety of the Trent engines are extremely in-chief(postnominal) as one minor mistake might tarnish the honored reputation and injure people as seen from the Qantas moment.ProcessRolls-Royce and Airbus aim to diligence the desired whole step and quantity products. Factors which influence the competitiveness of a firm or to sustain the firm are production capacity technology and efficiency of the productive apparatus, distribution logistics etc. (Ebstudies, 2012). Marketing resources like quality of marketing and distribution earnings have direct link to marketing efficiency. They are crucial for new product introduction and brand university extension (Ebstud ies, 2012).In intermediate environment, it is semi controllable by organisation.Supplier purchasing goods and services from reliable external sources to make the engines and maintain engines is important. Thus suppliers can alter firms competitive position and marketing capabilities e.g. raw material suppliers (for engine parts), energy suppliers, travail and capital. According to Michael Porter, the relationship between suppliers and firm epitomizes a power equation between them this equation is based on the industry condition and degree to which each of them is reliant on the other (Ebstudies, 2012).According to Ebstudies (2012), the bargaining power of supplier gets maximized in the following patchsThe seller is a monopoly or oligopoly firm.The buyer is not important customer.The suppliers product is important comment to buyers business and finished product.The supplier poses real threat of forward integration. every(prenominal) producer has to have several intermediaries for promoting, selling and distributing the goods and service to consumers (Ebstudies, 2012). The intermediaries for Rolls-Royce and Airbus are the airlines and the net consumers are the flight passengers.StakeholdersIn the case study, the Qantas Moment had affected the stakeholders greatly. Airbus upraise company European Aeronautic Defence and Space (EADS) serving prices cancel 3.5% when it happened.Rolls-Royce, the aircraft engine manufacturer fell 5% in share prices effective it happened. Rolls-Royce tried to stop the slide in share prices by win over the City and investors that the incident is a one-off thing than a design fault. and at heart 2 days, share prices dropped to 9%, losing 1 billion in market value. When chief executive of Qantas blame the incident on the engine maker, the situation got worst. Rolls-Royce engineers had to decipher the problem in Singapore and London to set out out what is the main problem to address the market authoritatively at bottom a few days. Pictures of the blackened, shattered aircraft engine shared all over the world damaged the consumers confidence on its safety record. Qantas grounded all its A380 aircraft fitted with Trent 900 engine for three weeks, other airlines delayed flights for extensive flights and expensive checks to be carried out.It was found out that it was indeed a design fault the report into the Trent 900 failure states that oil fire is the most likely cause of the explosion, leading Qantas to seek compensation claims. It was also found that there was a potential manufacturing desert in the oil pipes. Thus Rolls-Royce is liable for financial compensation of at least 19 million to ground and replace the engines for Qantas and Singapore Airlines.Hence, the incident in November 2010 has not only caused damage to Rolls-Royce in financial terms, as well as its hard-earned reputation and the trust of its clients and the public. Only until February 2011 did Rolls-Royce improve its situation when they won a 1.4 billion service contract from Emirates to maintain the Trent engines on 70 Airbus aircrafts that the attack aircraft carrier was due to take delivery over the coterminous few years, then a 700 million service deal for Emirates and a 3.2 billion engine deal for British Airways.Macro environment factors are external to the company and are uncontrollable. They do not affect marketing directly but indirectly influence marketing decisions of the company.Socio-culturalMarketers are enkindle in the size and growth rate of population in different cities, regions, and nations educational levels age distribution and ethnic mix households patterns and regional characteristics and movements (Ebstudies, 2012). amicable forces attempt to make marketing socially responsible means that Rolls-Royce and Airbus should take a lead in eliminating socially harmful products and produce only what is beneficial to the society (Ebstudies, 2012).EconomicThe economic environment also has an tres pass on the business of an organization example would be the share prices of Rolls-Royce. technologyTechnological changes have also become particularly significant in the post-millennium world this is particularly true in terms of modern communication technologies (Business Case Studies LLP, 2013). Thus the share prices dropped almost instantly as randomness was transmitted very quickly.The technological environment consists of factors related to knowledge applied, and the materials and machines used in the production of goods and services (Ebstudies, 2012). E.g. Rolls-Royce and Airbus produce top-notch engines to support commercial planes. semipolitical and legalMarketing decisions have to take into account governance, pressure groups, equity etc. Laws influence production capacity, capability, product design, price and promotion. Usually government intervenes in marketing process regardless of what their political ideologies are (Ebstudies, 2012).Legal factors are vital as org anisations have to work within legislative frameworks legislation can hinder business by placing onerous obligations on organisations if not dealt with properly (Learning Marketing, 2013).The physical environment consists of ecological factors beyond the organisations control. fleshly forces such as non-renewal natural resources are finite e.g. oil, coal, minerals etc. peculiarly resources that contributes to the fuel the engines need in order to operate, affects the production greatly. determine AirAsia locomote to Implement Pricing StrategyFirstly, set is one of the key global strategic decisions as the concept of exchanging money for goods and services received, in the form of exchange of bank notes or reference or other credit facility, is widely accepted in todays world (Lee Carter, 2009). Price element of the marketing mix is one of the more controllable and fast in effect, it is the element that generates revenue (Lee Carter, 2009).According to Lee Carter (2009), for a firm that develops and implement pricing strategy for services internationally, AirAsia should go through a series of stepsIdentify and analyse factors affecting pricing e.g. cost and revenue models, customer perceived value, legal requirements etc. which is to apply the no-frills, affordable strategy, a unique cost and revenue model that has been proven successful from short-haul to long-haulSet pricing in the context of corporate objectives which is mainly cheap vanishing give and select most appropriate price option of low-cost long-haul and low-cost short-haul flightsImplement selected option of low-cost long-haul with AirAsia XManage and finance international transactionsAccount for terms of tradeFactors to Consider in PricingAccording to Lee Carter (2009), based on Terpstra and Sarathy (2000), there are some factors to be considered in pricing products and services globally. They are classified infra three main categories organization-specific, environmental and market -specific.Corporate and marketing objectives of AirAsia can be seen from the CEO, Tony Fernandes saying, Our group thrives on innovation in disruptive market by taking the opport unities to fly where others dare not fly or have given up. Thus AirAsia proposed clear-cut comparatively lower fares, going against the flow believing on brighter side of its future. According to the case, AirAsia also has very positive corporate culture, leadership, and entrepreneurial skills and the right management philosophy. Domestic and targeted countries government influences are not significant in AirAsias case except for the fuel hiker however it was eventually offset by its unique pricing model. Consumers expectations the management believe that most customers do not have loyalty to any particular brand, because their choice is driven by prices, location AirAsias established network of flights to over 60 cities in 16 countries with 126 domestic and international routes from and within Malaysia, Thailand and Indonesia, and connects to China, Taiwan, India, Sri Lanka, Bangladesh, Australia and United Kingdom caters to a larger target markets due to operations in these countries, ability to pay targeting the regular budget travellers and new customers who swop from bounty flights to AirAsia due to the big difference in flight prices, market growth potential losing some regular travellers but gaining new travellers from premium flights, frequency of purchase focusing on maximising sales during off-peak periods but setting attractive promotions and discounts.The cost structure of AirAsia is basically to cut deal to leaveonly the absolute necessary costs to operate a flight, reducing opinionated costs and eliminating most of variable costs. This is done by maintaining a childly aircraft fleet and a route network based on low-cost airports, without complex code-sharing and legacy overheads that weigh down traditional airlines. During economy fluctuations such as inflation an d deflation, people always look for cheaper alternatives, especially in recession times. Fluctuations also depend on seasonal changes during summer and schooltime holidays. AirAsia adapts to the market as it the main airline deals with short-haul flights and the new subsidiary is a long-haul carrier, suiting needs of more customer segments.Product range of AirAsia is from the main short-haul flights what they started with to AirAsia X where they focus on long-haul flights. As a low-cost carrier for short distances, they grew to fly further when they came up with AirAsia X, providing options to travellers from more countries to use the airline. AirAsia can be considered a monopoly in Malaysia, Thailand and Indonesia due to the large numbers of hubs they have, and the number of domestic and international flights from these hubs, dominating from other low-cost carriers like them. A hike in fuel prices caused several low-cost carriers to cease operations as they cannot cope with the in crease and thus boost AirAsias market share and enhances its position as the ultimate leader in the regions low-cost airline sector. Market analysts predicted that the AirAsia group would have the marketing know-how and X-factor to capitalise on such opportunities that arise from its competitors falling out of the game.Marketing factors such as product positioning positions itself as a top-notch low-cost carrier, segmentation of customers by cater to short haul flights in ASEAN and longer haul flights in Asia and UK, pick up maintained as a good and affordable airline and differentiation of long and short distances flights. When faced with competition in the market, AirAsia targets cities least ventured to, to gain a competitive advantage. And due to its innovative business model, it is able to heave through the fuel price hike better than their competitors.Cost drop-off StrategiesAccording to Lee Carter (2009), we can identify how AirAsia has used cost reduction strategies to contribute to their profitability and sustain from the continuous potential fuel hike. Refer to Appendix A.Economies of scale can be found by the increase number of domestic and international flights after the establishment of AirAsia X to fly new cities in China, Australia and UK.Economies of size are shown when the case said that AirAsia has order regional hubs in Malaysia, Thailand and Indonesia instead of just one base in 2009.Learning curve can be seen from the shared service promise where AirAsia and AirAsia X share pilots, cabin crew, service staff, website, IT platform, marketing and distribution to perfect efficiency on operating costs. AirAsia also invested heavily to build its brand and association with globally recognised organizations such as ATT William F1, British MotoGP etc.The significance in introduction of new technologies by AirAsia is the New Skies a state-of-the-art booking system that contributed to expansion of booking capacity, allowing up to 1 million f lights booking a day.The major competitive advantage over other airlines is that passengers can use the Kuala Lumpur hub to connect to a wide range of routes. And relocating by placing more regional hubs in Malaysia, Thailand and Indonesia, these are areas with low labour costs to achieve the same advantage over the airlines at the cities too.AppendicesAppendix AAppendix BEconomies of ScaleWhen additional cost per unit of production reduced overall per unit cost, given similar touch on costsEconomies of SizeAchieved from larger scale of operation through great bargaining powerLearning CurveCost reduction from greater labour productivity, improved designs, and resource mixIntroduction of New Technologies meliorate efficiency gained through new technologies in innovation and processesRelocation of exertionMoving production facilities to countries with substantially lower labour costs